Baku: The State Oil Fund of Azerbaijan (SOFAZ) has clarified the issue of selling part of its gold assets in the first quarter of 2026.

According to Azeri-Press News Agency, SOFAZ stated 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 response to this, and considering the market conditions, SOFAZ conducted relevant operations to gradually return the share of gold to the target level to rebalance the portfolio.

In international practice, large institutional investors diversify their investment portfolios across various asset classes and determine optimal levels for them to maintain the targeted balance of risk and return. Within this framework, 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.

It is noteworthy that SOFAZ sold 21.9 tons of gold in the first quarter of this year, thereby reducing its gold reserves to 178.1 tons.