Azerbaijani State Oil Fund's investment portfolio expected to be $58 bln in 2025 - president

BAKU. Jan 9 (Interfax) - The size of the State Oil Fund of Azerbaijan's (SOFAZ) investment portfolio in 2025 has been set at an average of $58.1 billion, Azerbaijani President Ilham Aliyev said.

The average size of the 2024 portfolio was $52.6 billion.

According to the program for using SOFAZ funds in 2025, the primary goal of the fund's investment policy will be achieving maximum profitability amid low risks of capital losses.

The U.S. dollar is the SOFAZ investment portfolio's base currency. According to the program, 85% of the 2025 investment program will come from the fund's assets in U.S. dollars, euros and pounds sterling. In 2024, 65% of the investment portfolio was formed from the fund's assets in U.S. dollars, 20% in euros, 5% in pounds and 10% in other currencies.

A total of 40% of the portfolio (with a deviation of no more than 10%) should be placed in debt obligations and money market instruments during 2025. Up to 25% (with a maximum deviation of 3%) should be in shares, up to 10% (3% maximum deviation) in property and 25% in gold (4% maximum deviation). The figure for gold was 15% in 2024.

To ensure liquidity and the timely execution of stipulated spending, SOFAZ should constantly maintain a sum equivalent to no less than $100 million in highly liquid short-term monetary instruments.

According to the program, the amount of SOFAZ funds managed by foreign companies cannot exceed 60% of its investment portfolio. In addition, no more than 5% of the investment portfolio can be allocated to one company.

As of September 30, 2024, the assets of SOFAZ were estimated at $61.698 billion, up 10%.

SOFAZ, created in December 1999, accumulates proceeds from the sale of oil contracts, in particular from sales of the state's profitable oil and gas, transit tariffs for transporting oil and gas on Azerbaijani territory, from renting state property and other sources.