BAKU, Azerbaijan, Feb.24
By Leman Zeynalova – Trend:
The assets of Azerbaijan’s state oil fund (SOFAZ) rose by nearly $1.5 billion, reaching $45 billion in 2021, the highest level for the entire period of activity, the Fund told Trend.
“Overall, 2021 may be considered a favorable year for the Fund amid higher oil prices with the average price for profitable oil hitting $65.40 versus forecasts for $40 in the budget. The Fund’s budget expenditures neared 11.4 billion manats, while revenues amounted to 15.9 billion manats, including 3.3 billion manats of revenues from the management of the Fund’s assets,” said the Fund.
SOFAZ noted that in order to reach the long-term goals, it conducts investment activity in line with the Strategic Asset Allocation, which is based on the widespread methodology of optimization of combinations of asset types based on the expected profitability and volatility of each asset class and their correlation with each other.
“The main goal of this optimization and simulation of the portfolio structure is to maximize the return on the portfolio, taking into account risk tolerance, which is also formulated in the Investment policy as the maximization of profitability under conditions of low risk of loss of fixed capital," the Fund said.
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