The Santiago Principles were established by the International Working Group of Sovereign Wealth Funds in 2008 as a framework of generally accepted principles and practices that reflect best practice governance, accountability and conduct of investment practice by Sovereign Wealth Funds (SWF).
Moore Stephens is a leading adviser to institutional investment funds and we have developed a reporting tool to independently verify the implementation of the Santiago Principles for Sovereign Wealth Fund clients. We report in accordance with the International Standard on Assurance Engagements 3000.
The 24 principles include:
- the governance framework and objectives, as well as the manner in which the SWF’s management is operationally independent from the owner, should be publically disclosed;
- the SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy;
- the SWF’s investment decisions should aim to maximise risk-adjusted financial returns in a manner consistent with its investment policy;
- the SWF should have a framework that identifies, assesses and manages the risks of its operations;
the assets and investment performance (absolute and relative to benchmarks, if any) of the SWF should be measured and reported to the owner according to clearly defined principles or standards
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