RIYADH: Saudi Arabia’s sovereign wealth fund has announced its voluntary compliance with the Chartered Financial Analyst Institute’s Global Investment Performance Standards, an important metric that ensures transparency of investment activities.
In a press statement, the Public Investment Fund said this demonstrates its commitment to global best practices, making it one of the few sovereign wealth entities globally to adhere to the GIPS standards.
Launched in 1999, GIPS are global voluntary rules that advocate full disclosure and fair representation of investment performance.
These standards are administered globally by the CFA Institute and have been adopted by more than 1,700 firms and asset owners in 48 markets worldwide.
“The GIPS standards allow sovereign wealth funds to demonstrate their investment performance reporting meets globally accepted best practices,” said Yasir Al-Salman, chief financial officer at PIF, in a statement.
Al-Salman further noted that compliance with GIPS is an integral part of PIF’s future journey, as the fund spearheads Saudi Arabia’s economic diversification journey, aligned with the goals outlined in Vision 2030.
He added: “Adopting the GIPS standards demonstrates PIF’s commitment to not only working with compliant investment management firms but ensures we continue to operate with integrity and transparency and maintain the highest standards in our reporting.”
The announcement of PIF’s compliance with GIPS follows the publication of its recent annual reports and bond prospectus.
According to the annual report, the fund currently holds assets under management worth SR2.23 trillion ($595 billion). The fund has already established 70 companies, and 25 of them, including Saudi Coffee Co. and Halal Products Development Co., were founded in 2022.
Karyn Vincent, senior head of global industry standards for CFA Institute, lauded the fund for meeting the GIPS standards and urged other sovereign wealth funds to follow Saudi Arabia’s path in ensuring transparency and fairness in investments.
Vincent added: “While many asset managers around the world have adopted the GIPS standards as a way to strengthen reporting and boost transparency, PIF is an example of a leader that is truly advancing the investment profession by employing a higher standard.”
