SOFAR Discloses Contract Value of Asset Management and Organization of Accounting System

The State Oil Fund of Azerbaijan Republic promulgated information by the database of the State Procurement Agency on the contract with the Danish company SimCorp Ltd on portfolio management and organization of the accounting system.

The contract between the parties was signed on 26 December 2014, but officially it was reported only on April 22. Its cost was 8,048,351 USD. The term of the contract is not reported.

SOFAZ has selected SimCorp Dimension to support its equities, fixed income and alternative investment management activities, front-to-back. The business functions that will be supported by SimCorp Dimension include: portfolio management, order management, compliance management, post-trade processing, settlement processing, risk management, performance measurement and attribution, accounting and reporting.

SimCorp Ltd was founded in 1971. The company's headquarters is located in Copenhagen. It has more than 1,100 employees and 165 customers worldwide.

As of 31 December 2014, SOFAZ assets were estimated at $ 37 148 300 000. They are available in a variety of assets, including bonds - 80.6%, shares - 5.4%, real estate - 2.9 %, deposits and money market instruments - 6.9%, gold - 5.3%, etc. The yield from asset management amounted to 1.47%.

Part of the funds has been transferred under the control of four managers: the World Bank, Deutsche Bank Advisors, UBS Global Asset Management and State Street Global Advisors (SSgA).

According to the main areas of SOFAZ for 2015 (the decree of Azerbaijani President Ilham Aliyev on 19 January 2015), the investment portfolio was projected in the amount of 28.2 billion manat (before the devaluation of the national currency). ---08B