...

SOFAZ investments in shares up

Oil&Gas Materials 1 March 2017 18:19 (UTC +04:00)

Baku, Azerbaijan, March 1

By Maksim Tsurkov – Trend:

In 2016, 12.2 percent of investments of the State Oil Fund of Azerbaijan (SOFAZ) were placed in shares, as compared to 7.7 percent in 2015, according to a SOFAZ report.

As of January 1, 2017, the total volume of SOFAZ investments was $33.03 billion or 99.6 percent of the total volume of assets, according to SOFAZ.

As much as 35.2 percent of SOFAZ investments was placed in financial instruments for a one-year period, 21.3 percent was placed for 1-3 years, 13.4 percent – for 3-5 years, and 10.1 percent – for more than five years.

Twenty percent of investments were placed in real estate, assets and gold, the report said.

Eighty percent of the investments were placed in bonds and money market instruments. Of these, 20.4 percent accounted for 'AAA' rated securities, 27.9 percent accounted for 'AA' rated securities, 34.8 percent – for 'A' rated securities, 16.8 percent – for 'BBB' rated securities and 0.1 percent accounted for ‘BB’ rated securities.

Currently, 12.2 percent of SOFAZ investments are placed in shares, 4.4 percent – in real estate and 3.4 percent – in gold.

SOFAZ assets were placed as follows: 43.1 percent in Europe, 26.3 percent in Asia-Pacific, 23.5 percent in North America, 3.8 percent in Australia, 0.1 percent in the Middle East, 0.1 percent in South America, and 3.1 percent in international financial organizations.

As of Jan. 1, 2017, SOFAZ assets amounted to $33.147 billion, which is 1.27 percent less than in early 2016.

SOFAZ was established in 1999 with assets of $271 million.

Based on SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

The main goals of the State Oil Fund include: accumulation of resources and the placement of the fund's assets abroad in order to minimize the negative effect on the economy, the prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.

Tags:
Latest

Latest