Sovereign wealth fund tracking firm, the Sovereign Wealth Fund Institute (SWFI), has upgraded Nigeria‘s sovereign wealth fund, the Nigeria Sovereign Investment Authority (NSIA), to 9 points on the SWFI’s 10-point Linaburg-Maduell Transparency Index.
In an official statement announcing 2014’s second quarter ratings, the SWFI singled out the NSIA for special mention, stating that the NSIA had been upgraded from 4 points to 9 points, out of a maximum of 10 points. The NSIA is now ranked joint 2nd on the list of sovereign wealth fund ratings. The NSIA shares its #2 spot with other funds from the USA, Canada, France, Brazil, South Korea, Abu Dhabi, and Bahrain. Furthermore, the NSIA is now the highest-ranked sovereign wealth fund from an African nation.
According to SWFI, “This index of rating transparency was developed in 2008 and has been since used worldwide, by sovereign wealth funds in their official annual reports and statements, as the global standard benchmark.”
This index is based off ten essential principles that each add one point of transparency to the index rating. The principles are as follows:
- Fund provides history including reason for creation, origins of wealth, and government ownership structure
- Fund provides up-to-date independently audited annual reports
- Fund provides ownership percentage of company holdings, and geographic locations of holdings
- Fund provides total portfolio market value, returns, and management compensation
- Fund provides guidelines in reference to ethical standards, investment policies, and enforcer of guidelines
- Fund provides clear strategies and objectives
- If applicable, the fund clearly identifies subsidiaries and contact information
- If applicable, the fund identifies external managers
- Fund manages its own web site
- Fund provides main office location address and contact information such as telephone and fax