Nearly 60 per cent of Azerbaijan State Oil Fund’s assets placed in Europe

Oil&Gas Materials 6 November 2013 16:21 (UTC +04:00)

Baku, Azerbaijan, Nov. 6

By Emil Ismayilov - Trend: The State Oil Fund of Azerbaijan (SOFAZ) continued its policy of placing its investment portfolio in short term projects in January-September 2013, SOFAZ reported on Tuesday.

According to the report, the share of funds invested over the past five years is estimated at 91.4 per cent of SOFAZ investment portfolio. The total volume of the investment portfolio is over $35.54 billion, or 99.3 per cent of the total volume of assets.

Around 51.8 per cent of SOFAZ investment portfolio is placed in securities for a one-year period, 36 per cent for one to three years, 1.9 per cent for three to five years and 1.7 per cent for more than five years. Moreover, 8.6 per cent is kept in real estate, assets and gold, the report said.

As of June 30, 2013, around 29.7 per cent of the investment portfolio is placed in securities with 'AAA' ratings, 17.8 per cent in 'AA', 31.1 per cent in 'A', 20.2 per cent in 'BBB' and 1.2 per cent in other securities. SOFAZ assets cannot be placed in securities with a lesser investment rating.

SOFAZ assets are partially placed in securities, tools of the monetary market such as deposits and bank accounts. Currently, 23.4 per cent of the investment portfolio is placed in the bonds of agencies and international organizations, sovereign debt securities- 10.5 per cent, financial bonds-11 per cent, corporate bonds- 31.6 per cent, short term commercial securities- 17.6 per cent, guaranteed bonds- 5.8 per cent and municipal bonds- 0.1 per cent.
Around six per cent of the investment portfolio is placed in deposits and monetary market tools, gold-3.2 per cent, real estate- 1.8 per cent and assets-3.6 per cent.

The assets of the investment fund were placed as follows: 58.89 per cent in European countries, 16.88 per cent in North America, 15.7 per cent in developing countries, 9.95 per cent in the Asia-Pacific Ocean region, 1.45 per cent in the Middle East, 5.02 in South America and 7.8 per cent in international financial organisations.

As of Oct. 1, SOFAZ assets increased by 4.9 per cent compared to early 2013 (34.129.4 billion) and were estimated at $35.809.2 billion.