According to him, the Fund made changes in its investment portfolio at the end of 2015 as a part of process to build a diversified investment portfolio for the long-term period: “According to these changes, the ratio between risk and profitability has changed in favor of more risky and profitable investment instruments. So, share of investments in real property in the investment portfolio doubled to 10%. At the same time, equity investments in the investment portfolio increased to 15% from 10%. As a result of these changes, investments in real property increased. Purchase of Palazzo Turati office complex in Milan ended in 2016. At the same time, investments in real estate funds significantly increased, investments were made in private share funds. Along with this, equity investments in the investment portfolio increased”.
He said that the oil price in the Fund’s 2016 budget makes up $25 a barrel: “As the oil price was higher than forecast in 2016, Fund’s revenues made up $5.9 billion or AZN 9.4 billion. At the same time, budget expenditures stood at $5.4 billion or AZN 9 billion. So, as at the end of this year, the budget surplus amounted to $500,000. Due to depreciation of currencies, which are included in the investment portfolio, against the USD, SOFAZ had extra-budgetary expenditure in the amount of $900,000,000, which caused $0.4 billion decline in SOFAZ assets compared to early 2016”.
Full text of the interview will be posted on the website later.