AZE.US
The State Oil Fund of Azerbaijan, known as SOFAZ, has generated $10.9 billion in cumulative income from investments in developed-market equities, while the portfolio’s value reached $18 billion at the end of June 2026.
The portfolio was valued at $16.5 billion at the end of 2025. It therefore gained $1.5 billion, or 9.1%, during the first six months of this year, according to information provided by SOFAZ in response to an APA inquiry.
As of June 30, SOFAZ had invested a total of $7.1 billion in this segment. Cumulative investment income rose from $9.4 billion at the end of 2025 to $10.9 billion, an increase of approximately 16%.
The fund also reported a cumulative return of 370%, compared with 330% at the end of last year. That figure reflects SOFAZ’s long-term performance measurement and should not be interpreted as a 370% return during the first half of 2026.
Portfolio Tracks Global Markets
SOFAZ primarily follows a passive investment strategy for its developed-market equity holdings, using the MSCI World Index as its benchmark.
The index includes shares in 1,283 companies across 11 sectors and 23 developed countries, giving the fund broad exposure to global stock markets.
The increase strengthens Azerbaijan’s financial reserves and diversifies part of the country’s oil wealth into international assets.
However, the portfolio’s performance remains exposed to global equity-market movements and currency fluctuations.
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