PIF announces voluntary compliance with GIPS ® from CFA Institute

Logo of Public Investment Fund (PIF)

The Public Investment Fund (PIF) has announced its voluntary compliance with the Global Investment Performance Standards (GIPS®) from CFA Institute, demonstrating its ongoing commitment to global best practice.

Compliance with the GIPS standards forms part of PIF’s world-class governance and transparency standards that encompass all its activities, the PIF said in an emailed statement to Argaam.

Introduced in 1999, the GIPS standards are global voluntary standards based on the fundamental principles of full disclosure and fair representation of investment performance. The GIPS standards are administered globally by CFA Institute and have been adopted by more than 1,700 firms and asset owners in 48 markets around the world. Although not required, PIF was verified by an independent party.

PIF is one of very few sovereign wealth funds globally to adhere to the GIPS standards, underscoring its ongoing commitment to the highest levels of transparency and good governance. This follows the publication of PIF’s recent annual reports and bond prospectus, as well as its standalone credit rating, as measured by Moody’s, which is the second highest among sovereign wealth funds globally.

Yasir A. AlSalman, Chief Financial Officer, at PIF, said: “The GIPS standards allow sovereign wealth funds to demonstrate their investment performance reporting meets globally accepted best practices. 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, transparency and maintain the highest standards in our reporting. Compliance with the GIPS standards is an important part of our ongoing commitment to a robust investment process and PIF’s leading role in transforming Saudi Arabia's economy in line with Saudi Vision 2030.”

Karyn Vincent, CFA, CIPM, Senior Head of Global Industry Standards for CFA Institute, said: “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.

“We applaud PIF for attaining compliance with the GIPS standards, and we encourage more sovereign wealth funds to follow their lead to promote fairness, transparency, and ethics in investment performance,” Vincent added.