US rating downgrade did not influence the SOFAZ investment policy

US rating downgrade did not influence the investment policy of State Oil Fund of Azerbaijan Republic, SOFAZ said.

Fund says instead of expectation, hard results of this news were reflected not in securities market, but in share markets. So that, the indexes in stock markets decreased after announcement of this news. This was observed in US, European and Asian markets.

Downgrade of credit ratings of the bonds are traditionally observed with sharply decrease of bond prices. But, these processes caused increase of bond prices: “In the condition of disbelief to current financial markets, the investors try to keep their investment portfolio in minimum level and US treasury bonds are the most profitable alternative to achieve these goals. Abovementioned factors prove that, investors approach to US government bonds as an instrument with a fewest risk”, said the Fund.

At present, most of Fund’s means are invested in fixed-income securities. Recent lag in US economy, debt crisis in several European countries have created inconstant environment in world financial markets: “However, being of SOFAZ investments in short-term fixed-income securities, and diversification of those investments on currencies, credit rating, as well regions prevent the impact of possible shocks in financial markets on portfolio”.


/APA/