Amid fluctuating interest rates in global financial markets and rising geoeconomic risks, sovereign wealth funds are taking more aggressive and strategic diversification steps to preserve the profitability of their portfolios. Israfil Mammadov, Executive Director of the State Oil Fund of the Republic of Azerbaijan (SOFAZ), visited Toronto in September as part of the “Canada Investment Summit 2026.” The visit signals a new stage in the management of the Fund’s more than $72 billion in assets, with a particular focus on joint investments with global companies in real assets, alternative energy and digital infrastructure.

The most notable aspect of the visit was the meeting with the management of “Brookfield Asset Management,” which has more than $1 trillion in assets under management. Partnering with such institutional players, which have more than 100 years of experience in global private markets, provides SOFAZ with an opportunity for proper risk allocation. Looking at existing statistics, more than 55% of SOFAZ’s investment portfolio consists of fixed-income securities, more than 20% of equities, around 10% of real estate, and 10%-12% of gold assets. However,........

© AzerNews