SOFAZ ups share of investment portfolio transferred to foreign managers

Oil&Gas Materials 12 June 2017 20:39 (UTC +04:00)

Baku, Azerbaijan, June 12

By Azad Hasanli – Trend:

In 2016, the State Oil Fund of Azerbaijan (SOFAZ) increased the share of its investment portfolio transferred to foreign managers, reads a SOFAZ report audited by PwC Azerbaijan.

The share of the investment portfolio transferred to foreign managers reached 8.5 percent in December 2016, according to the report.

A part of the fixed-income securities is managed by the World Bank ($226 million, 0.7 percent of SOFAZ assets) and Deutsche Bank ($102 million, 0.3 percent). Assets are managed by UBS Asset Management ($1.274 billion, 3.9 percent of the Fund’s assets) and State Street Global Advisors ($1.215 billion, 3.7 percent).

“Using the services of foreign managers is important for SOFAZ in terms of studying their experience and knowledge in the respective fields, as well as applying global practice in the management of its own investment portfolio,” said the report.

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

As of April 1, 2017, SOFAZ assets increased by 0.18 percent compared to early 2017 and amounted to $33.207 billion.

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.