Riyadh, November 06, 2023, The Public Investment Fund (PIF) has taken a significant step in demonstrating its unwavering commitment to global best practices by voluntarily adhering to the Global Investment Performance Standards (GIPS®) set by the CFA Institute. This voluntary compliance underscores PIF's dedication to world-class governance and transparency across its diverse range of activities.
Introduced in 1999, the GIPS standards are recognized as global voluntary benchmarks founded on the core principles of comprehensive disclosure and equitable representation of investment performance. Administered worldwide by the CFA Institute, these standards have been embraced by over 1,700 firms and asset owners operating in 48 different markets globally. Although not mandatory, PIF's adherence to the GIPS standards was independently verified.
Notably, PIF stands out as one of the few sovereign wealth funds worldwide committed to upholding the GIPS standards. This steadfast commitment serves to highlight the fund's unwavering dedication to the highest levels of transparency and sound governance. This move aligns with PIF's recent practices, including the release of its annual reports, bond prospectus, and a standalone credit rating, which, as assessed by Moody's, stands as the second-highest among sovereign wealth funds globally.
Yasir A. AlSalman, PIF's Chief Financial Officer, emphasized the significance of GIPS standards in allowing sovereign wealth funds to showcase their adherence to globally accepted best practices in investment performance reporting. He stated that PIF's commitment to complying with GIPS standards not only underscores its willingness to collaborate with investment management firms that adhere to these standards but also ensures that PIF maintains the utmost integrity, transparency, and reporting standards. This compliance is an essential part of PIF's ongoing commitment to a robust investment process, aligning with its pivotal role in driving Saudi Arabia's economic transformation in line with Saudi Vision 2030.
Karyn Vincent, CFA, CIPM, Senior Head of Global Industry Standards for CFA Institute, commended PIF's proactive approach in raising the bar for investment professionals. Vincent applauded PIF for achieving GIPS standards compliance and encouraged other sovereign wealth funds to follow suit in promoting fairness, transparency, and ethical standards in investment performance reporting.
