SOFAZ has no plans to up its gold reserves

fund’s investment portfolio.

As much as 4.6 percent of SOFAZ portfolio falls to a share of real estate while investments in projects account for 2.5 percent. The largest portion of the investment portfolio which amounts to some 80.6 percent is placed in bonds and instruments of the currency market.

Earlier it was reported that the Fund has no plan to replace gold reserves with other assets.

Along with its significance for the diversification of investment portfolio, investing in gold has a special importance as a means of insurance against economic downturn, exchange rate risks and inflation.

The assets of the Fund increased by 2 percent and amounted to $34.25 billion in April 2016 as compared to the rate of 33.57 billion at the beginning of the year.

Previously, the fund’s chief investment advisor Ziya Kangarli said that SOFAZ plans to increase the profitability of asset management in the years to come.

SOFAZ was established in 1999 with assets of $271 million. The funds of the entity may be used for the construction and reconstruction of strategically important infrastructural objects as well as for tackling national problems. The Fund started purchase of gold from February 2012.