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SOFAZ to select stock portfolio manager in early 2017

Oil&Gas Materials 27 December 2016 20:45 (UTC +04:00)

Baku, Azerbaijan, Dec. 27

By Maksim Tsurkov – Trend:

The State Oil Fund of Azerbaijan (SOFAZ) plans to select a new manager of the stock portfolio, SOFAZ head Shahmar Movsumov said in an exclusive interview with Trend.

In the long term investment period, SOFAZ seeks to create a highly balanced global portfolio by increasing the share of riskier assets, according to Movsumov.

“For this purpose, the Fund plans to increase the proportion of financial instruments that promise high profit in the long term, for example, stocks. At the moment, additional investment into stocks is planned as part of the existing investment policy. For example, SOFAZ has recently announced a tender to bring a new manager for stock portfolio management, and we expect to make a choice in early 2017,” he said.

SOFAZ head underlined that one of the Fund’s main goals in bringing the external managers is to use their experience in investing in certain types of financial instruments for the development of necessary skills and knowledge.

“The managers should be brought in such a way that as a result of the cooperation the level of professional training of the Fund’s staff as well as the technical infrastructure improves. Along with bringing in the external managers, the Fund also pays great attention to the development of its own human resources and operational capabilities for asset management,” said Movsumov.

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

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

The main goals of the State Oil Fund are accumulation of resources and placement of the Fund’s assets abroad in order to minimize the negative effect on the economy, prevention of "Dutch disease", promotion of resource accumulation for future generations, and supporting current social and economic processes in Azerbaijan.

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Follow the author on Twitter: @MaksimTsurkov

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