Over 55 percent of Azerbaijan State Oil Fund’s assets invested in Europe

Azerbaijan, Baku, July 18/ Trend, E. Ismayilov/

The State Oil Fund of Azerbaijan continued its policy of investment in short-term projects in the first half of 2013, the State Oil Fund of Azerbaijan reported.

According to the report, the share of funds invested over the past five years is estimated at 90.1 percent of the fund. The total volume of State Oil Fund's investment portfolio is $34.52 billion, or 99.5 percent of the total volume.

54 percent of the fund's investment portfolio is put into securities for one-year periods, 33.3 percent is deposited for 1 to 3 years, 2.8 percent is deposited for 3 to 5 years period, 1.8 percent is put in banks for more than 5 years. In addition, 8.1 percent is kept in real estate, assets and gold, the report said.

According to June 30, 2013 data, 32.9 percent of the Fund's investment portfolio is placed in securities with "AAA" ratings, 17.4 percent - in "AA" ranked securities, 28 percent- in "A", 20.3 percent- in "BBB", 1.37 percent- in other securities. The assets of the Fund cannot be placed in securities with a lesser investment rating.

Assets of the Azerbaijani State Oil Fund were placed partially in securities, tools of the monetary market (deposits, bank accounts). Currently, 24.4 percent of the fund's investment portfolio is put into agency bonds and international organizations, sovereign debt securities- 10.6 percent, financial bonds-9.8 percent, corporate bonds- 26.1 percent, short-term commercial securities- 23.9 percent, insured bonds- 5.2 percent, municipal bonds- 0.1 percent. Over 15 percent of the Azerbaijani State Oil Fund's investment portfolio is replaced in monetary market tools - 7.1 percent, gold- 2.6 percent, real estate- 1.8 percent and assets- 3.7 percent.

The geographical replacement of investment fund's assets is as follows: 56.2 percent-in European countries, 14.4 percent in Northern America, 15.2 percent in developing countries, 6.4 percent in Asia, 0.7 percent in the Middle East and 7.2 percent in International financial organizations.

As of July 1, the assets of the State Oil Fund increased by 1.6 percent compared to early 2013 ( $34,129.4 million) and were estimated at $34,678.4 million.