SOFAZ has no plans to increase proportion of shares in investment portfolio in 2020
BAKU, Azerbaijan, Sept.16
By Leman Zeynalova – Trend:
Azerbaijan’s State Oil Fund (SOFAZ) has no plans to increase the proportion of shares in its investment portfolio in 2020, the Fund told Trend.
“As of late June 2020, the proportion of shares in SOFAZ’s investment portfolio stood at 13.7 percent. All the tactical steps taken by SOFAZ as part of the strategic distribution of assets, as well as the decision on changing the volume of investments in shares, are based on the detailed macroeconomic analysis and market fundamentals. Although the limit for proportion of shares in SOFAZ’s investment policy is 25 percent, we do not plan to increase the proportion of shares in our investment portfolio this year. Nevertheless, we continuously follow the market tendencies and depending on the market conditions, we will be ready to review the proportion of shares in SOFAZ’s investment portfolio,” said the Fund.
The State Oil Fund of Azerbaijan was established in 1999, and at that time its assets stood at $271 million.
The mission of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) is to transform depletable hydrocarbon reserves into financial assets generating perpetual income for current and future generations.
The main goal of the establishment of SOFAZ is to accumulate and efficiently manage oil revenues.
SOFAZ's activity is directed to the achievement of the following objectives:
Preserving macroeconomic stability, ensuring fiscal-tax discipline, decreasing dependence on oil revenues and stimulating development of the non-oil sector;
Ensuring inter-generational equality with regard to the country's oil wealth and accumulate and preserve oil revenues for future generations;
Financing major national scale projects to support socio-economic progress.
Follow the author on Twitter: @Lyaman_Zeyn