Fall of Exchange Indices in World Markets Positively Affects SOFAR
Azerbaijan, Baku, 25 January / Trend corr I. Khalilova / The situation observed in the world markets since the beginning of 2008 positively affected the activities of the State Oil Fund of Azerbaijan Republic (SOFAR), as its assets are invested not in stocks, but liability securities, the Executive Director of SOFAR Shahmar Movsumov said 25 January at a press conference dedicated to the results of SOFAR's activities in 2007.
A rapid decrease occurred in all securities markets, which is caused by over 6%-fall of Dow Johns index and 10-12-fall of other countries' indices.
"As during dropping of the prices for stocks the prices of liability securities were rising, SOFAR's dollar portfolio increased by $15mln," Movsumov said. "We are not to make changes in our funds placement policy. Only the currency structure of the portfolio will be a bit corrected."
As a result of 2007, 0.1% ($2.54mln) assets of SOFAR were placed in stocks. A total of 11.16% ($271.82mln) was put in sovereign liabilities, 26.52% ($646.32mln) in the bonds of agencies and international organizations, 38.35% ($934.53mln) in banks and financial organizations' bonds, 9.9% ($241.2mln) in corporative bonds, 0.2% ($4.89mln) in mortgage bonds.