Santiago Principles Self-Assessment

Russian Direct Investment Fund

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  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

Joint Stock Company “Management Company of Russian Direct Investment Fund” (“RDIF”) is a company established under the Russian law and regulated, in particular, by the Federal Law on Russian Direct Investment Fund. The sole (100%) shareholder of RDIF is the Russian Federation represented by the Federal Agency for State Property Management (Rosimushchestvo).

RDIF is the sole managing company for Closed-End Unit Investment Fund of Long-Term Direct Investments Russian Direct Investment Fund (the Fund).

The Fund is not a legal entity and its legal nature is comparable to mutual funds in common law jurisdictions (with RDIF acting as a general partner). The Fund is regulated under the Federal Law on Investment Funds and the Federal Law on Russian Direct Investment Fund.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

The investment policy of RDIF for managing the Fund is set out in the asset management rules which are binding upon RDIF.

Investment projects originated by investment directors are all subject to the approval of the RDIF Investment Committee and Executive Board or Supervisory Board.

RDIF is accountable to Rosimushchestvo as its sole shareholder.

RDIF as a Fund manager effects transactions with the Fund's assets through a special depository, as required by applicable law.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

RDIF is operating under strict guidelines as defined by its investment policies and governing bodies. The investments are made on market terms.

The Fund has not used leverage at the Fund level. It is using leverage at the portfolio companies’ level where appropriate in a conservative manner.

The Fund has not invested in other funds exclusively focusing on direct investing. It has been conducting its own full scope due diligence using the combination of in-house resources and third party advisers.

The information on the RDIF investment process can be found on the website in sections (Invest with us and Portfolio).