Azerbaijani oil fund determines investment portfolio structure for 2013
Some 85 per cent of the total value of the investment portfolio of Azerbaijani state oil fund SOFAZ for 2013 will be formed by monetary market instruments and the debt market. This is stipulated by the investment policy for 2013, approved by President Ilham Aliyev, according to Trend news agency.
Up to five per cent of the investment portfolio may be invested in stocks, up to five per cent in real estate and five per cent in gold, the document says.
The projected total cost (average amount) of SOFAZ's investment portfolio for 2013 was set at 25.2 billion manat, while as of late 2012 it was projected at 23 billion manat.
The currency structure of SOFAZ's investment portfolio is determined as follows: 50 per cent of the assets can be placed in U.S. dollars, 40 per cent in euros and five per cent in pounds sterling. The remaining five per cent is reserved for the currencies of Russia, Turkey and G7 countries.
SOFAZ assets were predicted to reach $34 billion by the end of 2012.
SOFAZ was established in 1999 when its assets amounted to $271 million.
The main purposes of the fund are the accumulation of funds and placement of the fund's assets abroad to minimise the negative impact on the economy, preventing 'Dutch syndrome', to ensure savings for future generations and to maintain the current social and economic standards in the country.