BAKU, Azerbaijan, Could 8. Since investing in
inventory indices, the State Oil Fund of Azerbaijan (SOFAZ) has earned
greater than $5 billion, the Azerbaijani State Oil Fund (SOFAZ) advised
Development.
Since 2012, SOFAZ, so as to diversify its funding
portfolio, has began investing in shares by means of inventory indices.
Because the interval of implementation of this technique, as of March
31, 2024, the revenue has amounted to $5.3 billion, or 226 %.
It must be emphasised that SOFAZ locations nice significance on
diversifying the funding portfolio throughout all varieties of belongings,
together with equities.
The fund famous that almost all institutional traders, together with
SOFAZ, corresponding to sovereign wealth funds and pension funds, make the most of a
passive administration technique in making their investments in listed
equities.
Moreover, it must be famous that SOFAZ inventory index technique
implies not energetic collection of shares of sure corporations however
passive funding in all shares included within the international index,
which consists of greater than 1,400 corporations, in proportion to their
market capitalization.
“Whereas investing in shares on the inventory trade, the fund
replicates the MSCI World Index [Morgan Stanley Capital
International World Index], which consists of the biggest corporations
of the developed world, taking into consideration the burden of the
corporations included on this index. The MSCI World index, which is
the predominant a part of the SOFAZ share portfolio, consists of
shares of 1,465 corporations (the whole market capitalization of which
is about $70 trillion), overlaying 11 sectors of the financial system in 23
developed international locations of the world,” the fund famous.
MSCI World Index monitoring indicators (as of March 31,
2024)
In addition to, it’s price noting that along with monitoring the
MSCI World index, a part of the SOFAZ fairness portfolio price $1.6
billion is invested within the euro-denominated MSCI Europe ex UK
index.
“In reference to the latest information within the media, we wish
to state that after the inclusion of Tesla and Intel shares within the
SOFAZ portfolio (Intel shares since 2012, for the reason that creation of the
inventory portfolio, and Tesla shares since 2013, for the reason that inclusion
within the MSCI World index), the burden of those shares within the SOFAZ
portfolio corresponded to the burden of the identical shares within the MSCI
index. Usually, a inventory index is an combination of shares of
publicly traded corporations from totally different areas, international locations,
financial sectors, and different elements. Examples of such indices are
S&P 500 (500 largest corporations of the US inventory market), STOXX
Europe 600 (600 small, medium, and enormous corporations of developed
European international locations), and NASDAQ 100 Know-how Sector (100 largest
expertise corporations),” the Fund famous.
MSCI World index distribution by nation and trade
(as of March 31, 2024)
“It must be famous that monitoring an index beneath passive
administration includes constructing a portfolio by investing in shares
included within the index in accordance with their weighting within the index.
Moreover, we wish to state that SOFAZ doesn’t spend money on
Trade-traded funds (ETFs) or Mutual Funds however immediately buys
shares of corporations included within the index,” SOFAZ said.
Key indicators and return on SOFAZ’s investments in
listed equities in developed international locations (as of March 31,
2024)
Invested funds
$7,1 billion
Revenue
$5,3 billion
Present worth
$12,4 billion
Yield from the second of portfolio creation
226 %
“We wish to level out as soon as once more that SOFAZ implements a
passive administration technique somewhat than a speculative and dangerous
technique primarily based on the collection of sure shares. Whereas offering
the next degree of diversification, this technique, like many
institutional traders, is extra conservative,” the fund
concluded.
