The State Oil Fund of Azerbaijan (SOFAZ) has clarified the issue of selling part of its gold assets in the first quarter of 2026.
Azərbaycan Dövlət Neft Fondu (ARDNF) 2026-cı ilin ilk rübündə qızıl aktivlərinin bir hissəsinin satışı məsələsinə aydınlıq gətirib.
In response to APA-Economics’ inquiry, SOFAZ said that amid the increase in gold prices observed during the first quarter of 2026, the share of the gold sub-portfolio exceeded the target level defined in the Fund’s Investment Policy (taking into account the permitted deviation range). In this regard, given the market conditions, relevant operations were carried out to gradually return the share of gold to the target level in order to rebalance the portfolio.
Note that in international practice, large institutional investors diversify their investment portfolios across various asset classes and determine optimal levels for them in order to maintain the targeted balance of risk and return. In this context, each asset is managed within those levels, including the permitted deviation range, and differences arising from market changes are brought back within the relevant limits through a rebalancing mechanism.
Recall that SOFAZ sold 21.9 tons of gold in the first quarter of this year, reducing its gold reserves to 178.1 tons.
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