Baku, Azerbaijan, Dec. 30
By Maksim Tsurkov - Trend:
The State Oil Fund of Azerbaijan (SOFAZ) has chosen the software by SimCorp Dimension company for portfolio and accounting management in the SOFAZ new administrative building, the company said Dec. 29.
SOFAZ has chosen SimCorp Dimension to support its ordinary shares, fixed income and alternative investment management, the statement says.
The company's business functions include: portfolio and order management, standard compliance management, settlement and clearing operations, settlement, risk management, assessment of activity and factor analysis, accounting and reporting.
The area of SOFAZ's new residence - A class SOFAZ Tower is 35,834 square meters. There are 24 floors and two underground levels in the residence. The building height is 117 meters (140 meters with a spire).
SOFAZ was established in 1999.
Based on SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
As of October 1, 2014, SOFAZ assets increased by 4.24 percent compared to early 2014 ($35.877 billion) and were estimated at $37.305 billion.
As of October 1, the total volume of SOFAZ investment portfolio is $37.266 billion, or 99.9 percent of the total volume of assets, the report says.
SOFAZ assets are partially placed in securities, tools of the monetary market such as deposits and bank accounts.
As of September 30, 2014, around 82.2 percent of the investment portfolio is placed in bonds. Around 21 percent accounted for the securities with 'AAA' ratings, 19.2 percent in 'AA', 32.2 percent in 'A', 26.9 percent in 'BBB' and 0.7 percent in other securities. SOFAZ assets cannot be placed in securities with a lesser investment rating.
Currently, 17.2 percent of SOFAZ investment portfolio is placed in bonds of agencies and international organizations, 6.5 percent - sovereign debt securities, 18.2 percent - financial bonds, 43.3 percent - corporate bonds, 9.7 percent - short term commercial securities, 5.1 percent - guaranteed bonds.
Around 7.4 percent of the investment portfolio is placed in deposits and monetary market tools, gold-3.2 percent, real estate- 2.8 percent, assets-3.5 percent, investments in the projects - 0.9 percent.
The assets of the investment fund were placed as follows: 54.11 percent in European countries, 22.32 percent in North America, 12.59 percent in the Asia-Pacific Ocean region, 1.19 percent in the Middle East, 3.69 percent in South America and 6.1 percent in international financial organizations, Africa - 0.01 percent.
The main goals of the State Oil Fund include: accumulation of resources and the placement of the fund's assets abroad in order to minimize the negative affect on the economy, the prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.
The official exchange rate is 0.7844 AZN/USD Dec. 30.
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Edited by CN
