Gold is one wealth fund’s escape from geopolitics, credit risk

For Azerbaijan’s sovereign wealth fund, nothing beats the safety of gold in a world gripped by trade disputes and geopolitical risk.

Known as Sofaz, the fund is looking to almost double its holdings of the precious metal in 2019 to 100 t after resuming purchases in 2018 following a five-year break. By contrast, it’s steering clear of larger bets on bonds and especially equities, an approach that executive director Shahmar Movsumov says allowed the fund to avoid losses last year.