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SOFAZ has increased its share of highly-rated bonds lately

13.03.2020,17:37


March 13, Fineko/abc.az. Along with the accumulation function of the State Oil Fund of Azerbaijan (SOFAZ) for future generations, the country's economy plays an important insurance role against external threats.

ABC.AZ reports with reference to SOFAZ that when forming SOFAZ’s investment strategy, these important tasks are taken into account in a balanced manner.

However, it is worth stressing that, despite the fact that economic uncertainty directly affects financial markets, these effects are manifested in different ways in various investment actions. Thus, stable negative expectations about the future of the global economy immediately have negative impact on the shares listed on the stock exchange.

At the same time, it should be noted that during the period of economic uncertainty the demand for certain types of assets, including bonds, especially government bonds, increases significantly that positively affects their prices.

Currently, in the SOFAZ investment portfolio the shares that show high yield over the long-term period and are characterized by high price volatility account for about 10%. And the share of bonds in the Fund's finances is about 70%. SOFAZ has also increased much the share of government-rated and high-rated bonds within the asset class of bonds as part of preventive measures.

By Elmir Murad