SOFAZ to up investments in equities in 2012

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) is planning to invest in equities to increase the diversification and profitability of the investment portfolio, SOFAZ said on Wednesday.

The report says that according to the 2012 Investment Policy of SOFAZ approved by the decree of the Azerbaijani President dated Dec.29, 2011, up to 5 percent of the Investment portfolio of SOFAZ can be invested in equities in 2012.

Management of equity portfolio will initially be handled by external managers. Request for Service (RFS) process will be employed to select external managers.

The total amount of SOFAZ's investment portfolio in 2011 amounted to about $29.63 billion, which comprises 99.43 percent of total assets. Some 0.09 percent of these funds are placed in equities.

SOFAZ assets amounted to $29.8 billion, as of Jan.1, 2012.


/Trend/