We assess our performance against the IFSWF's 'Santiago Principles', which provide generally-accepted best practice standards for the management of sovereign wealth funds, annually.
International Forum of Sovereign Wealth Funds
New Zealand is a member country of the International Forum of Sovereign Wealth Funds (IFSWF), a voluntary group of sovereign wealth funds established under the auspices of the International Monetary Fund. Guardians CEO Adrian Orr is the Deputy Chair of the IFSWF.
The IFSWF's goals are for sovereign wealth funds to:
- help maintain a stable global financial system and free flow of capital and investment;
- comply with all applicable regulatory and disclosure requirements in the countries in which they invest;
- invest on the basis of economic and financial risk and return-related considerations; and
- have in place a transparent and sound governance structure that provides for adequate operational controls, risk management and accountability.
The Santiago Principles are a set of 24 voluntary IFSWF guidelines that assign best practices for the operations of sovereign wealth funds. The Principles recognise that it is important for sovereign wealth funds to demonstrate to their home countries, to the countries in which they are invested and to the international financial markets in general that they are properly established and that their investments are made on a purely economic basis.
The Santiago Principles monitor three important areas of operational practice for sovereign wealth funds - legal framework, institutional framework and governance framework, along with investment policies and risk management.
Geoeconomica Santiago Compliance Index
Geoeconomica produces an index measuring compliance with the Santiago Principles by Sovereign Wealth Funds.The NZ Super Fund was ranked fully compliant with the Principles in the 2014 Geoeconomica Index.