State Oil Fund of Azerbaijan talks currency distribution of investment portfolio
BAKU, Azerbaijan, Feb. 28
By Nargiz Ismayilova - Trend:
Last year, currency distribution of investment portfolio of the State Oil Fund of Azerbaijan (SOFAZ) in 2019 was as follows: 56.6 percent - US dollar, 31.4 percent - Euro, 5.1 percent - British pound, and the remaining part - Australian dollar, Turkish lira, Russian ruble, Korean won, Chinese yuan, Japanese yen and other currencies, SOFAZ Executive Director Israfil Mammadov told Trend.
Mammadov said that in the portfolio of assets, 68.7 percent accounted for bonds and money market instruments, 14.1 percent - shares, 5.8 percent - real estate, 11.4 percent - investments in gold.
The executive director added that 63 percent of the portfolio, divided by the level of development of countries, account for developed countries, 32 percent - for developing countries and 5 percent for international financial organizations.
In the distribution by credit rating, 42.8 percent of assets were invested in AAA rating instruments, and the rest - in AA, A, BBB credit rating instruments, Mammadov said, adding that only 1.4 percent of the portfolio has been invested in non-investment level instruments.
“Some 33.8 percent of funds of the investment portfolio were invested in Europe, 33.7 percent in the Asia-Pacific region, 24.9 percent in North America, 2.04 percent in Australia/New Zealand, 0.7 percent in the Middle East, 0.05 percent to Latin America and 4.7 percent to international organizations,” noted Mammadov.
The total portfolio return was 5.3 percent, said the executive director.
The share of the sub-portfolio in profitability amounted to 2.7 percent, bonds - 2.2 percent, real estate - 0.4 percent, added Mammadov.
When considering the individual income of six portfolios of the investment portfolio, the individual return on shares was 21.5 percent, on bonds and money market instruments - 3 percent, on real estate - 7.4 percent, the executive director noted.