Azernews.Az

By Aynur Jafarova

The state oil fund SOFAZ, an entity that accumulates and manages Azerbaijan's oil and gas revenues, purchased 24,887 kilograms (800,146 ounces) of gold as of August 26, SOFAZ told Trend news agency.

Some 12,007 kilograms (386,018 ounces) were delivered to Azerbaijan.

According to the plans, SOFAZ buys gold in batches, and this process will take place over two years.

The fund began buying gold in the first quarter of 2012, and as of July 1 the amount of the purchased gold amounted to 22,399 kilograms (720,146 ounces).

The first batch of gold (32,150 troy ounces) was delivered to the country on January 11, while the second batch was brought on February 1 and the third batch on March 1.

Earlier SOFAZ head Shahmar Movsumov said the fund plans to bring its gold reserves to 30 tons by late 2013.

SOFAZ buys gold on the London Metal Exchange.

SOFAZ was established in 1999 with assets of $271 million. The main purposes of the fund are the accumulation of funds and placement of assets abroad to minimise the negative impact on the economy, preventing the 'Dutch disease', to ensure savings for future generations, and to maintain the current social and economic standards in the country.

According to SOFAZ's investment strategy, up to five percent of the fund's total investment portfolio may be invested in stock, up to five percent - in real estate, and another five percent in gold.

As of July 1, the oil fund's assets increased by 1.6 percent compared to the beginning of 2013 (over $34.129 billion), and amounted to over $34.678 billion.