18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.
18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.
18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.
18.3. A description of the investment policy of the SWF should be publicly disclosed.
OIA has Investment Guidelines that govern OIA investment activities which include risk tolerance. We also have an approved Risk Policy and risk appetite statement.
Post the issue of Royal Decree 61/2020, we are currently reviewing all these documents to align with the objectives and mandate of the OIA.
OIA’s investment policy includes the breakdown of internal versus external allocations in public markets. There is an explicit cap for external allocations and Board approval is required for any changes. External allocations follow a defined selection and monitoring process. All allocations need to be in line with the asset allocation strategy and overall portfolio guidelines.
A brief high-level investment statement is included on the OIA website.