BAKU, Azerbaijan, July 19
By Nargiz Ismayilova - Trend:
The State Oil Fund of Azerbaijan (SOFAZ) plans to increase the share of high-quality bonds in 2020 in the portfolio of securities with fixed income, which are characterized by a lower risk of price volatility, Executive Director of SOFAZ Israfil Mammadov told Trend.
Mammadov was answering the question about increasing the share of the state bonds in SOFAZ’s investment portfolio.
"For this purpose, the corporate bonds are being replaced with state bonds and bonds of state agencies with high credit ratings on the most favorable terms of purchase and sale," executive director said.
The State Oil Fund of Azerbaijan was established in 1999 with assets of $271 million.
According to the SOFAZ regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as for addressing important national problems.
The main goals of the State Oil Fund include accumulation of resources and placement of assets abroad in order to minimize the negative effect to the economy, prevention of 'Dutch disease' to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.
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