The assets of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) are managed in accordance with the Rules on management of foreign currency assets of the State Oil Fund of the Republic of Azerbaijan"approved by Presidential Decree No. 511 dated June 19, 2001 and amended by Presidential Decree No. 607 dated December 21, 2001, No. 202 dated March 1, 2005, No. 216 dated February 10, 2010, No. 519 dated October 27, 2011, No. 1376 dated May 12, 2017 and No. 450 dated December 28, 2018 and "Investment Policy of the State Oil Fund of the Republic of Azerbaijan" approved by Presidential decrees on an annual basis.
According to these Rules, the purpose of management of the SOFAZ’s foreign currency assets is to hold foreign currency assets of the Fund securely and to generate revenues by effective management.
Investment policy defines the objectives, forecasted size, currency composition, strategic asset allocation, benchmarks and risk limits for the SOFAZ’s investment portfolio.
In line with the long-term objectives, asset class composition of SOFAZ’s investment portfolio is reviewed and approved annually.