State Oil Fund of Azerbaijan
|Azerbaijan||US$ 32.7 Billion|
Transparency Rating: 10
View Sovereign Fund Transaction Data
View Asset Allocation
Firm Investment Style: Mostly Portfolio
Entity Structure: Fund
Population Est.: 9.4 million – 2013
Wealth Per Capita Est.: $3,495
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) is a sovereign wealth fund located in Azerbaijan.
Strategy & Objectives
SOFAZ 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. The fund also invests directly in gold bars that conform to the requirements of the London Bullion Market Association.
SOFAZ can also invest in stocks that are included in major international equity indices and institutional real estate.
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.