“Results of the referendum in the UK have created uncertainty and led to fluctuations on global financial markets,” SOFAZ said. “First of all, all this was observed on the global foreign exchange and the stock market. All the major indexes of shares cheapened by over five percent, with the euro and the pound rates falling by ten and three percent, respectively.”
According to the message, the investments made in the shares hit around 10 percent of a total amount of assets, so cheapening of stock indices did not affect SOFAZ.
"The remaining 90 percent have been put in securities with stable income, real estate and gold,” the message said. “The value of these assets remained stable, while the price of gold greatly increased.”
“As for the variation as a result of the currency fluctuations, these fluctuations did not lead to a loss or profit following the diversification of the currency portfolio," the message said.
Some 71.47 percent of the investment portfolio of the State Oil Fund of Azerbaijan (SOFAZ) was invested in financial tools for up to five years in Jan.-March 2016, SOFAZ’s report on the results of the first quarter of 2016 said.
As of April 1, 2016, the total volume of SOFAZ investment portfolio is $33.94 billion or 99.1 percent of the total volume of assets, the report said.
The official exchange rate is 1.5332 AZN/USD June 24.
Around 35.64 percent of SOFAZ investment portfolio is placed in securities for a one-year period, 21.56 percent for one to three years, 14.27 percent for three to five years and 9.13 percent for more than five years. Some 19.4 percent is kept in real estate, assets and gold, the report said.
SOFAZ assets are partially placed in securities, tools of the monetary market such as deposits and bank accounts.
Some 80.6 percent of the investment portfolio is placed in bonds. Around 14.04 percent accounted for the securities with `AAA` ratings, 26.76 percent in `AA`, 36.76 percent in `A`, and 22.36 percent in `BBB`, 0.08 percent in ‘BB’. SOFAZ assets cannot be placed in securities with a lesser investment rating.
Around 3.1 percent of the investment portfolio is placed in gold, real estate- 4.6 percent, assets – 7.7 percent, investments in the projects – 2.5 percent.
SOFAZ was established in 1999 with assets of $271 million.
Based on SOFAZ`s regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main goals of the State Oil Fund include: accumulation of resources and the placement of the fund`s assets abroad in order to minimize the negative affect on the economy, the prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.
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