SOFAZ's over 84 percent of assets placed with "AAA" rating: head of fund
Azerbaijan, Baku Jul.25 / Trend E. Ismayilov /
As for six months, 84.27 percent of assets of the State Oil Fund of Azerbaijan (SOFAZ) placed in securities with "AAA" rating, head of the SOFAZ Shahmar Movsumov said. Generally, the company's assets are placed n bonds with high rating condemned by international rating agencies such as Moody and Standard & Poor.
Some 6.96 percent of assets are placed in securities with "AA" rating, 8.51 percent with "А", 0.18 percent with "ВВВ" and 0.08 percent in the rest. The fund's assets cannot be placed in the Central Bank lower investment rating.
So far, terms of assets placement is one of the important indexes. At present, the developed countries (U.S, Japan, and England), is experiencing a new tendency that short-term investments bring more benefit than long-term ones. In this regard, since 2005 the SOFAZ has placed funds in short-term basing on the situation on the world market. In addition their share increased more than it was in 2007.
At present, 47.05 percent of the assets have been placed in securities to one year term, 46.21 percent from one to three years, 6.2 percent from three to 5 years and 0.11 percent, as well as 0.03 percent of security incomes to five years.
The SOFAZ assets are partially placed in securities, money market instruments (deposits, bank accounts). Only 0.03 percent of the company assets were placed in stocks. At present, 43.29 percent of assets were placed in bonds of agencies and international organization, 35.73 percents in sovereign debt papers, 3.88 percent in deposits and money market instruments and 0.32 percent in bank accounts.
Geographical placement of the SOFAZ assets includes 55.06 percent placed in European countries, 28.11 percent in the Northern America, 13.79 percent in international financial organizations and 2.32 percent in Asia and others.
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