About 40 percent of SOFAZ's assets placed in securities rated "AAA"

Oil&Gas Materials 26 July 2011 17:37 (UTC +04:00)

Azerbaijan, Baku, July 26 / Trend E.Ismayilov /

The State Oil Fund of Azerbaijan Republic (SOFAZ) continued in the first half continued the policy of placing its investment portfolio in short-term instruments. The proportion of funds invested for up to five years hit 96.74 percent of its assets, the Fund reported.
The total amount of the investment portfolio is 3$0.348 million, or 99.97 percent of SOFAZ's assets.

Some 38.68 percent of the fund's investment portfolio was placed in securities for up to one year, 32.24 percent - from one to three years, 25.73 percent - from three to five years and 3.26 percent for over five years and 0.08- stocks.

As of June 30, 39.77 percent of the fund's assets were placed in securities with a rating of AAA, 20.9 percent - AA, 32.51 percent - A, 6.81 percent - BBB, 0.01 percent - other. The fund's assets may not be placed in securities below these investment grades
SOFAZ assets are placed partly in securities and money market instruments (deposits, bank accounts). Currently, 26.39 percent of the fund's assets are invested in the bonds of agencies and international organizations, sovereign debt securities - 17.38 percent, financial bonds - 17.26 percent, corporate bonds - 20 percent, short-term commercial paper - 11.45 percent, guaranteed bonds - 4.89 percent, municipal bonds - 0.09 percent and deposits and money market instruments - 2.46 percent.

The geographic distribution of the fund's assets is - 67.11 percent in European countries, 13.99 percent - North America, 6.11 percent - international financial institutions, 4.46 percent - Asia, 7.6 percent - developing countries and 0.73 percent - the Middle East.