Azerbaijan, Baku, Oct. 23 / Trend E. Ismayilov /
The State Oil Fund of the Azerbaijani Republic (SOFAZ) will start importing previously purchased physical gold in the near future, SOFAZ told Trend today.
According to the Azerbaijani Cabinet of Ministers' decision, gold imports for SOFAZ's needs are exempt from VAT and customs duties.
Regarding gold storage in the country, SOFAZ said it will be stored at the Central Bank of the country.
"The purchased gold will be brought to Azerbaijan in the near future and it will be stored in the Central Bank," SOFAZ said.
According to SOFAZ's new investment policy, as well as to diversify the investment portfolio and increase the profitability of its placing, it is envisaged to include new financial instruments, including stocks, gold and real estate in the portfolio, SOFAZ said.
As of October 1, 2012, the volume of gold in SOFAZ investment portfolio is 10 tons 851 kilograms or 350,146 ounces. SOFAZ buys physical gold on the London precious metal exchange and temporarily stores it on the London stock of JP Morgan.
In total, SOFAZ plans to buy in stages about 30 tons of gold within two years in connection with a risk of price changes, SOFAZ head said.
According to SOFAZ investment strategy, approved by Azerbaijani President Ilham Aliyev as of December 29, 2011, up to 5 percent of SOFAZ total investment portfolio may be invested in gold in 2012.
SOFAZ was established in 1999. Its assets hit $ 271 million.
SOFAZ assets, as of Oct. 1, 2012, increased by 11.4 percent up to $33.192.4 billion compared to early 2012 ($29.8 billion).
It is predicted that by late 2012, SOFAZ assets reach the level of $34 billion.