OREANDA-NEWS. February 26, 2009. The State Oil Fund of Azerbaijan (SOFAZ) has again reported of complete liquidity of its investments.

At today’s news conference in Baku SOFAZ executive director Shakhmar Movsumov said SOFAZ investments are totally reliable and liquid.

“Within a day we are able to return and convert USD 10 billion of assets to money. Our investments bring almost the highest revenue among similar world structures – only last year the revenues from placement made USD 300 million,” Movsumov noted.

On average period of Fund’s investments in one type of securities makes 1.15 year. At the same time USD 6.7 bn (60.66%) of SOFAZ portfolio is directed for investments for period of one up to three years, USD 3.7 bn (33.41%) period of up to one year, USD 613.19 million (5.51%) for period of 3-5 years.

The rest investments do not exceed 0.5% of portfolio – USD 28.62 million (0.26%) was invested for period of 5-7 years and USD 15.96 million (0.14%) for period above 7 years.

Short-term character of investments is cause of the fact that in period of the 2008 crisis profitability from placement of Fund’s assets (3.79%) proved to be less than profitability of placement of Azerbaijan’s assets in period of crisis of 1998-99 (6%), when the National Bank of Azerbaijan (then Movsumov was one of its chief specialists) received about 6% per annum. Then the Bank won due to long-term period of its investments.

“The crisis started in 2008 is the gravest for entire period after World War II. Nevertheless, the Fund managed to overcome financial crisis period without losses and with profit, and in period of crisis escalation into global economic turmoil we also expect to prevent losses. Under no conditions SOFAZ assets will hardly reduce,” Movsumov said.

In 2006-8 the Fund managed to ensure average annual profitability from placement of its assets at the level of 4.17%. By the end of 2008 SOFAZ investment portfolio totaled USD 11.119 bn with overall assets of USD 11.219 bn.