BAKU, Azerbaijan, Sept.16
By Leman Zeynalova – Trend:
Azerbaijan’s State Oil Fund (SOFAZ) will continue making necessary tactical adjustments to its investment activity the Fund told Trend.
“SOFAZ’s investment policy is aimed at creating a diversified and long-term investment portfolio with the limits envisaged in the documents regulating our activity. Although starting from 2012, SOFAZ began investing in more risky assets such as real estate and gold, the major part of the investment portfolio, i.e. 67 percent accounts for fixed income instruments. Based on this and taking into account the increasing market volatility and uncertainty, we took measures for further increasing the share of government bonds in order to reduce investment risks, including credit risks. Depending on how the macroeconomic situation on world markets changes, SOFAZ will continue to make the necessary tactical adjustment to its investment activity,” the Fund said.
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