...

Azerbaijan’s State Oil Fund reveals investments in gold

Oil&Gas Materials 27 February 2020 18:40 (UTC +04:00)
Azerbaijan’s State Oil Fund reveals investments in gold

BAKU, Azerbaijan, Feb. 27

By Nargiz Ismayilova – Trend:

The total investment of Azerbaijan’s State Oil Fund (SOFAZ) in gold amounted to $4.9 billion percent or 101.2 tons, SOFAZ Deputy CEO Israfil Mammadov told Trend.

Mammadov said that Azergold CJSC (mining company) produced 1.77 tons of gold, which amounted to $81 million. The fund purchased gold in accordance with market prices.

Taking into account the volume of the investment portfolio and price factors, the target share provided for in the investment portfolio of the gold mining fund can be increased accordingly up to 10 percent of the total value of the investment portfolio with a maximum interval of 3 percent.

The inclusion of gold in the investment portfolio is primarily strategic in terms of portfolio diversification and hedging policies against inflation. Recently, the importance of such strategic investments has been growing amid the backdrop of growing geopolitical tensions on a global and regional scale, as well as uncertainty in financial markets.

The Azerbaijan’s State Oil Fund was established in 1999 with assets of $271 million.

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

---

Follow the author on Twitter:@IsmailovaNargis

Tags:
Latest

Latest