Executive director: No great impact on return of SOFAZ investments due to pandemic

Oil&Gas Materials 19 July 2020 15:09 (UTC +04:00)
Executive director: No great impact on return of SOFAZ investments due to pandemic

BAKU, Azerbaijan, July 19

By Nargiz Ismayilova - Trend:

The changes that have occurred in the global economy under the influence of the COVID-19 pandemic, as opposed to many other institutional investors, did not greatly affect the profitability and sustainability of the investment portfolio of the State Oil Fund of Azerbaijan (SOFAZ), Executive Director of SOFAZ Israfil Mammadov told Trend.

"Of course, the current situation is always strictly analyzed," Mammadov added. "If the foundation is laid for the revision of the current strategy, then appropriate changes will take place. In this regard, the public will be timely informed."

"SOFAZ’s asset management strategy is calculated for the medium and long term, taking into account its obligations to the present and future generations," executive director added.

"Of course, while strictly monitoring the world economy, the global financial markets, future prospects, the appropriate changes are made to this strategy at certain periods, which is reflected in SOFAZ’s investment policy," Mammadov said.

"Taking into account these details, SOFAZ has chosen a rather conservative strategy in terms of the risk-return profile," executive director said.

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

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

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


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