SOFAR continued its policy of placing Fund's investment portfolio in short-term instruments in 2009

Oil&Gas Materials 27 January 2010 18:40 (UTC +04:00)

Azerbaijan, Baku, January 27 / Trend , E.Ismaylov/

In 2009, the State Oil Fund of Azerbaijan (SOFAR) continued its policy of placing Fund's investment portfolio in the short-term instruments, and the share of funds invested for up to five years account for 99 percent of assets.

SOFAR Executive Director Shahmar Movsumov said to press conference that 37.32 percent of the Fund's investment portfolio was placed in securities for up to one year, 41.75 percent - from one to three years, 19.93 percent - from three to five years and one percent, including 0.04 percent of income in shares - from five to seven years.

According to Movsumov, as of December 31, 61.11 percent of the Fund's assets was placed in the Central Bank with rating "AAA", 17 percent - "AA", 19.63 percent - "A", 2.16 percent - 'BBB', 0.1 percent - other. Fund's assets may not be placed in the CB below investment rating.

SOFAR's assets were partly placed in securities, monetary market instruments (deposits, bank accounts). 0.04 percent of Fund's assets was placed in shares. Currently 37.9 percent of Fund's assets has been invested in bonds of agencies and international organizations, sovereign debt securities - 28.15 percent, 2.73 percent - deposits and monetary market instruments and 0.34 percent - bank accounts.

According to him, the geography of Fund's assets placement seems to be as: 67.01 percent - in European countries, 18.24 percent - North America, 10.89 percent - international financial institutions, 3.26 percent - Asia.