SOFAZ conducts its activities in compliance with all obligations under Azerbaijani laws, as well as the applicable laws of jurisdictions of investment destinations. The Fund’s comprehensive compliance program comprises internal policies, procedures, controls, monitoring, and risk reporting. We ensure that our internal policies, procedures, and systems are appropriately designed and implemented, consistent with applicable laws to advance the Fund’s objectives while managing legal and compliance risks appropriately. Amid everevolving regulatory environment we closely track monitor regulatory developments to ensure that our internal policies, procedures, and systems reflect and address these changes. As part of its compliance program, the Fund monitors for compliance with Investment Guidelines and Investment Policy in managing entrusted assets. These documents serve as the basis for all investments and risk management at SOFAZ and ensure transparency in its investment decisions. Among the others, these documents stipulate eligible assets, asset and currency allocations, benchmarks, risk limits, as well as other aspects of portfolio management. The execution of a robust compliance program is further strengthened by an embedded culture of ethics and risk awareness, which encourages responsible staff conduct, effective risk management, and adherence to compliance requirements. Central to this framework is “SOFAZ’s Rules of Ethical Conduct”, which every employee is obligated to follow. According to the Rules of Ethical Conduct all staff must act in accordance with relevant legislation, while maintaining the highest levels of ethical standards and professionalism. The Rules of Ethical Conduct outline expectations such as maintaining honesty, fairness, and impartiality. These Rules of Ethical Conduct among others includes rules addressing conflicts of interest, the prevention of corruption and regulation of gifts, and reporting any ethical violations. New employees are introduced to the Rules of Ethical Conduct as part of their onboarding process. Regular compliance training for employees covers essential subjects such as anticorruption processes, conflicts of interest, updates on regulatory changes. Ongoing training and knowledge-sharing initiatives play a key role in deepening organizational awareness of risk and compliance reinforcing compliance culture. SOFAZ remains dedicated to conducting its activities in a manner which reflects ethical responsibility, professional excellence, and compliance with the law.