(MENAFN- AzerNews) By Kamila Aliyeva
The State Oil Fund of Azerbaijan (SOFAZ) is ready to make changes related to Turkish and Russian assets in its investment portfolio.
'As of the end of the second quarter this year, about 0.9 percent in the SOFAZ investment portfolio accounts for investments in Turkish government bonds and about 0.9 percent accounts for investments in Russian assets (shares of VTB Bank, as well as the office and shopping center in Moscow), which coincides with the current market situation, the current investment strategy of SOFAZ and the corresponding medium- and long-term realistic income expectations, SOFAZ said in a message on August 14.
Considering the geopolitical risks that have recently been observed in these countries, the current state of the investment portfolio, market conditions and expectations are being seriously analyzed, so that, if necessary, quick tactical steps can be taken to change the investment portfolio, according to SOFAZ.
The assets of SOFAZ as of July 1, 2018 have increased by 6.22 percent compared to the beginning of 2018 ($35,806.5 million) and stood at $38,036.1 million, which was the highest attained level during its activity since its inception. The increase was mainly due to SOFAZ budget revenues and asset management activity.
SOFAZ was established in 1999 with assets of $271 million. Based on SOFAZ's regulations, its funds may be used for construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main purpose of the establishment of the Fund was to preserve and multiply the income derived from oil, create an excellent economic base, taking into account social needs, the requirements of economic progress and development of the country. Besides, the challenge ahead is to protect the country's economy from possible negative influences caused by the growth of foreign exchange earnings and avoidance of damage to financial discipline.
---
Follow us on Twitter @AzerNewsAz
#SOFAZ MENAFN1408201801950000ID1097294843
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.