Assets of the State Oil Fund of Azerbaijan (SOFAR) exceeded $55.5 billion

Baku/13.10.23/Turan: In January-September 2023, the assets of the State Oil Fund of Azerbaijan (SOFAR) increased by 13%  to $55 billion 524 million (data by September 30)," a press release of SOFAR. "The increase in assets in January-September 2023 was due to the fact that SOFAR budget revenues exceeded expenses, including income received from the management of the fund's funds," the information says.

In January-September 2023, SOFAR's revenues amounted to 14 billion 878.3 million manats, of which 11.422 billion manats — from the sale of profitable oil and gas, 800 million manats each — from transit revenues and bonus payments of consortia. Revenues from the management of SOFAR funds over nine months amounted to 2 billion 651.1 million manats.

In January-September 2023, the expenditures of SOFAR amounted to 3 billion 587 million manats, of which 3 billion 550 million manats was a transfer to the state budget.

Administrative expenses for the management of the fund amounted to 20.1 million manats. SOFAR's off-budget expenditures from exchange rate fluctuations amounted to 257.8 million manats.

The press release noted that SOFAR still prefers to place the bulk of its assets in US dollars, and the share of assets in US currency in the investment portfolio ($55.52 billion) increased to 70.3%. By the end of 2022, the share in the US currency was 68.6%.

By October 2023, assets in euros accounted for 19.2%, in pounds — 4.9%, and 0.6% - Australian dollars, in Turkish lira — 0.2% (halved), 0.2% - Russian rubles (was 0.3%), 1% - Chinese yuan (1.1%), 1.4% - Japanese yen (1.3%), 2.2% - other currencies (2.1%).

According to the Fund, 61% of the fund's investment portfolio is placed in bonds and money market instruments (at the end of 2022 - 62.1%), 22.2% - stocks (at the end of 2022 – 19.6%), 5.8% - real estate (at the end of 2022 - 6.2%). The share of gold is 11% (at the end of 2022 - 12.1%), which is equivalent to 101.8 tons (at the end of 2022 - 101.8 tons). The Fund reported that 95.9% of the funds are placed in highly rated assets A, AA and AAA.

According to the fund, 36.9% of SOFAR's investment portfolio is located in North America, 28.5% - in Europe, 14.6% - in the Asia-Pacific region, 0.1% - in South America, 0.1% - in Africa, 0.3% - in the Middle East, 0.6% - in Australia and New Zealand, 7.9% - in international organizations, in gold – 11%.--0--