Santiago Principles Self-Assessment

State General Reserve Fund

Fund Details Fund Website Search Assessments PDF version
  • 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.

SGRF was founded through a Sultani Decree in 1980. The Sultani Decree is a publicly accessible law and has
been maintained and updated through subsequent Decrees.

The Sultani Decree recognizes SGRF as an independent legal entity able to contract in its own name.

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.

SGRF has a written and approved Corporate Governance manual. We also have Delegation of Authority Manual which sets out the responsibility and accountability of Board of Directors, Audit Committee and Management of SGRF.

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.

SGRF has Investment Guidelines that govern SGRF investment activities which include risk tolerance. We also have a Risk Policy and risk appetite statement. In place. This is included in SGRF Investment guidelines and investment processes. SGRF’s investment policy includes the breakdown of internal versus external allocations in public markets. There is an explicit cap for external allocations and Board approval is required for any changes. External allocations follow a defined selection and monitoring process. All allocations need to be in line with asset allocation strategy and overall portfolio guidelines. A brief high-level investment statement is included on SGRF website.