International Forum of Sovereign Wealth Funds Publishes a Report on Members’ Investment and Operational Practices07.07.2011
The International Forum of Sovereign Wealth Funds (IFSWF) has today published a report on "IFSWF Members’ Experiences in the Application of the Santiago Principles".
The report is based on the responses of 21 IFSWF Members to a survey created and conducted by Sub-committee 1 of the IFSWF. At the recent IFSWF meeting in Beijing, the members agreed to publish the survey results. IFSWF Chair, Mr Jin Liqun, Chairman of Board of Supervisors, China Investment Corporation, said: “the primary reason for publishing the report was to provide a deeper insight into the benefit of the Santiago Principles framework as well as members’ operational and investment practices and, importantly, how those practices differ across the Membership.
"The survey results clearly highlight the differences across the members and also indicate that it is neither possible nor reasonable to expect a uniform pattern of its members' implementation of the Santiago Principles and their disclosure of information." Mr. Jin said.
Key findings of the report include:
- Members’ investment activities are based only on commercially-related considerations and they should be perceived and treated accordingly;
- The overwhelming majority of Members’ practices are fully or partially consistent with the Santiago Principles, while Members also acknowledge that some further progress can and will continue to be made; and
- Members see the value of transparency and have a strong level of commitment to it, via the Santiago Principles.
IFSWF Deputy Chair, Mr Bader Al Sa’ad, Managing Director, Kuwait Investment Authority noted: "We also believe that the report clarifies that the intent of the Santiago Principles is to increase understanding of SWFs and how they operate. Because of the individual differences in objectives of each of our Members, the approach to the application of the Principles differs across the membership. Additionally, not all of the Principles require public disclosure."
IFSWF Honorary Chair, David Murray, Chairman of Australia’s Future Fund Board of Guardians, said that "in consolidating direct responses from 21 Members, the report highlights the true value of the development of the Santiago Principles and the significant value it provides to members – particularly to newly established funds, as well as gives confidence to external parties about the commercial objectives and transparency of SWFs in conducting their investment activities."
"The report will be a key part of our focus on promoting and participating in an open, active, and factually based dialogue on IFSWF's activities and on those of our Members more generally," Messrs Jin, Al Sa’ad, and Murray concluded.
Note to editors
The International Forum of Sovereign Wealth Funds (IFSWF) was established in Kuwait City in April 2009 (see "Kuwait Declaration")and continues the work of the International Working Group of Sovereign Wealth Funds (IWG), the author of the Santiago Principles. IFSWF is a voluntary group of Sovereign Wealth Funds, which meets, exchanges views on issues of common interest, and facilitates an understanding of the Santiago Principles and SWFs’ activities. The staff of the International Monetary Fund (IMF) continues to facilitate the work of the IFSWF as its Secretariat. For more information and media related queries, please contact the IFSWF Secretariat at info@IFSWF.org or media@IFSWF.org.