Azerbaijan State Oil Fund starts investing in gold
BAKU. Feb 16 (Interfax) - The State Oil Fund of Azerbaijan (SOFAZ) has started investing some of its assets in gold, the fund said in a press release.
"In order to diversify its investment portfolio and increase yield, the State Oil Fund has started investing in gold. SOFAZ began buying gold bullion from London Bullion Market Association market maker banks on February 1 2012 in accordance with the requirements of this organization," the release says.
Earlier, SOFAZ Chief Investment Officer Israfil Mamedov was cited as saying that the fund's investment policy for 2012 included investment in shares, real estate and gold. The fund is working in all three directions, analyzing markets and negotiating with potential partners.
The president of Azerbaijan on December 29 2011 approved the program of State Oil Fund investment in 2012. The program puts the weighted average investment portfolio of the fund at 23 billion manat.
A minimum of 85% of fund assets should be invested in debt and money market instruments throughout the year and a maximum of 5% for portfolio shares; real estate and gold.
The State Oil Fund of Azerbaijan was established in December 1999. The fund accumulates revenue from the sale of oil contracts, especially the sale of oil and gas, transit tariffs for transportation of oil and gas through the country, lease of state property and others.