Azernews.Az

Azerbaijan's state oil fund SOFAZ plans to increase its rouble portfolio to $300 million by late 2012, SOFAZ reported on Wednesday.

"Increase of the rouble portfolio to $300 million is possible by the end of the year. The final decision on this issue will be made based on the results of the analysis," the fund noted.

The fund reported that according to a new investment strategy, SOFAZ began investing in assets denominated in Russian roubles on October 19. At present, the investment portfolio of SOFAZ includes only one short term deposit in the Russian Gazprombank to the sum of three billion roubles ($100 million).

The fund stressed that the list of the banks where deposits will be placed will be expanded in order to diversify the portfolio of the rouble.

The currency structure of SOFAZ's investment portfolio is set 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 pound sterling. The remaining five per cent of the total value of the fund's investment portfolio may be placed in the currencies of the Group of Seven, countries with long term ratings of at least A (Standard and Poor's, Fitch Ratings) and A2 (Moody `s), Russia and Turkey.

SOFAZ was established in 1999. SOFAZ assets, as of Oct. 1, 2012, increased by 11.4 percent this year to $33.192 billion.

It is predicted that by the end of 2012, SOFAZ assets will reach $34 billion.