sovereign wealth fund institute
sovereign wealth fund banner
Sign up to the SWF Newsletter
Email:


Who reads the Sovereign Wealth Quarterly?

  • Sovereign Wealth Funds
  • Hedge Funds
  • Private Equity
  • Corporations
  • Banks & Other Financial Institutions
  • Ministries of Finance
  • Governments
  • Investment Managers
  • NGO’s
  • Legal Firms & Political Organizations
  • Academics & Libraries
  • Capital-seekers
  • Media


State Oil Fund of the Republic of Azerbaijan

SOFAZ


Country: Azerbaijan

Established: 1999

US$ Billion: 14.9

Origin: Oil

Transparency Rating: 10

Summary:
The State Oil Fund of the Republic of Azerbaijan, located in the port city of Baku, was established in December 29, 1999 in accordance with the Decree of Heydar Aliyev, the former President of the Republic of Azerbaijan. The main responsibility of the Fund is to manage foreign currency and assets generated from oil and gas exploration and development. Statutory regulations were approved for the fund by President Heydar Aliyev exactly one year after establishment.

Corporate Governance:
Members of the Supervisory Board are appointed by the President of the Republic of Azerbaijan. Board members represent as state bodies and civil society. There are seven members on the supervisory board, including two members of the Milli Majilis (parliament), who are nominated by the Speaker of Parliament. The Executive Director, Shahmar Movsumov, was appointed by the President of Azerbaijan on May 15, 2006. The management of the State Oil Fund of the Republic of Azerbaijan is vested with the Executive Director. Movsumov is an active legal representative of the Fund, and has the responsibilities of appointing employees, management of Fund assets in compliance with the regulations approved by the President of Azerbaijan, and preparation of the annual budget for the Fund.

Strategies and Objectives:
This Fund may be categorized as a savings fund for future generations, which diversify portfolio assets from a nonrenewable resource and manage the effects of Dutch disease. The Fund primarily invests foreign currency and assets generated from oil and gas exploration and development in investment-grade securities such as government agency bonds, corporate bonds, and mortgage-backed securities.

According to its Investment Policy, up to 60% of the Fund's investment portfolio can be managed by external managers. The assets given to an external manager cannot exceed 15% of total amount of the investment portfolio.

News and Updates

4/28/09
State Oil Fund of Azerbaijan posts assets at $10.864 billion
The assets of SOFAZ as at April 1, 2009 stood at 8 721.4 mln. manats (USD 10 863.9 mln.).
read more: SOFAZ

2/29/08
Fitch Ratings says Azerbaijan Outlooks for the long-term IDRs stable
On 29 Feb, Fitch Ratings affirmed the Republic of Azerbaijan's Long-term foreign and local currency Issuer Default ratings (IDR) at 'BB+', Short-term foreign currency IDR at 'B' and Country Ceiling at 'BB+', the Agency's statement says. The Outlooks for the Long-term IDRs are Stable. " Azerbaijan's rating is supported by strong and sustainable economic growth, low government and external debt ratios and a large current account surplus, underpinned by rapidly rising oil and gas production," says Eral Yilmaz, Associate Director in Fitch's Emerging Europe sovereigns group.
read more: Trend Capital


Website

SOFAZ site

1. All figures quoted are from official sources, or, where the institutions concerned do not issue statistics of their holdings, from other publicly available sources.


Fund Information Feedback: please email update@swfinstitute.org
Please read Fund Feedback Policy, only reply if you are representative of this Fund.