Baku, Azerbaijan, Feb. 15
By Anvar Mammadov - Trend:
The State Oil Fund of Azerbaijan (SOFAZ) has revealed its asset management revenues, which have amounted to $4.5 billion since 2007 till January 1, 2017, the SOFAZ told Trend.
During this period, the highest yield rate of the SOFAZ assets was recorded in 2007 - at the level of 4.49 percent. The SOFAZ assets had 1.92 percent yield in 2016.
As of January 1, 2017, the total volume of SOFAZ investment portfolio was $33.03 billion or 99.6 percent of the total volume of assets, according to the SOFAZ report.
As much as 35.2 percent of SOFAZ investment portfolio was placed in securities for a one-year period, 21.3 percent for one to three years, 13.4 percent for three to five years and 10.1 percent for more than five years. Some 20 percent was kept in real estate, assets and gold, the report said.
SOFAZ assets are partially placed in securities, tools of the monetary market such as deposits and bank accounts.
As much as 80 percent of the investment portfolio was placed in bonds and tools of the monetary market. Of these funds, 20.4 percent accounted for the securities with 'AAA' ratings, 27.9 percent with 'AA', 34.8 percent with 'A', 16.8 percent with 'BBB' and 0.1 percent – with ‘BB’. SOFAZ assets cannot be placed in securities with a lesser investment rating.
Currently, 12.2 percent of SOFAZ investment portfolio is placed in shares, 4.4 percent – in real estate, 3.4 percent – in gold.
The assets of the investment fund were placed as follows: 43.1 percent in European countries, 26.3 percent in the Asia-Pacific Ocean region, 23.5 percent in North America, 3.8 percent in Australia, 0.1 percent in the Middle East and South America, 3.1 percent in international financial organizations.
As of January 1, 2017, SOFAZ assets reduced by 1.3 percent compared to early 2016 ($33.57 billion) and amounted to $33.15 billion.
SOFAZ was established in 1999 with assets of $271 million.
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.
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 effect 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.