Oil Fund's investment results made public
By Aynur Jafarova
About 48 percent of the total investment volume of the State Oil Fund (SOFAZ) in the first nine months of 2013 was in the U.S. dollars, the Fund reported on November 4.
The mentioned figure is over $17.05 billion.
The SOFAZ's foreign currency assets by September 30, 2013 amounted to $35.809 billion, compared to $34.129 billion at the beginning of the year.
Around 40.1 percent of the investment portfolio is concentrated in euros (over 10.553 billion euros), 5.2 percent in British pounds sterling (over 1.146 billion pounds sterling), 1.2 percent in Turkish Lira, 0.5 percent in Australian dollars, and 1.8 percent in Russian rubles.
The rest of the portfolio, 3.2 percent, is concentrated in gold with amount of 850.146 troy ounces (26.44 tons).
Furthermore, 85.4 percent of SOFAZ's portfolio is concentrated in fixed income, 3.2 percent in gold, 1.8 percent in real estate, 3.6 percent in equities, and 6 percent in deposits and money market instruments.
Some 29.7 percent of the bonds in SOFAZ's investment portfolio are classified in AAA, 17.8 percent in AA, 31.1 percent in A, 20.2 percent in BBB, and 1.2 percent in other credit ratings.
Some 58.89 percent of SOFAZ's investment portfolio is concentrated in Europe, 16.88 percent in North America, 5.02 percent in South America, 9.95 percent in Asia/Pacific, 1.45 percent in the Middle East, 0.01 percent in Africa, and 7.8 percent in international financial organizations.
Furthermore, 76.5 percent of SOFAZ's investment is invested in developed countries, 15.7 percent in the emerging countries, and 7.8 percent in international financial organizations.
SOFAZ, an entity that accumulates and manages Azerbaijan's oil and gas revenues, was established in 1999 with of $271 million in assets. The main purposes of the Fund are the accumulation of funds and assets placement abroad in order to minimize any negative impact on the economy, preventing the "Dutch disease", ensuring savings for future generations, and maintaining the current social and economic standards in the country.
According to SOFAZ's investment strategy, up to five percent of the fund's total investment portfolio may be invested in stock, up to five percent in real estate, and another five percent in gold.