Azernews.Az

By Nazrin Gadimova

The Supervisory Board of Azerbaijan's State Oil Fund (SOFAZ) has submitted the fund's 2014draft budget for approval to the President of Azerbaijan, SOFAZ reported.

The Board's meeting, held on November 29, was chaired by Azerbaijan's Prime Minister and Chairman of the Supervisory Board Artur Rasizade.

Besides the fund's draft budget, the supervisory board also submitted projects for using funds of SOFAZ, including the major directions of its investment policy for approval to the president, as well as estimates of primary expenditure.

The Fund's income was determined that the volume of 11.6 manat, expenditure - 11.3 and expenditure on managing the fund - 58.1 manat are reflected in SOFAZ's draft budget.

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 purpose of the fund is 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.