Samruk Kazyna ranks among world’s most transparent sovereign wealth funds

ASTANA – Samruk Kazyna Sovereign Wealth Fund is one of the world’s 20 most transparent sovereign wealth funds, according to the U.S.-based Sovereign Wealth Fund Institute, a global organisation that studies sovereign wealth funds, central banks and other long-term public investors.

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Photo credit: sk.kz

With $67.4 billion in assets under management, state-owned Samruk Kazyna received the maximum ten points based on the institute’s Linaburg-Maduell Transparency Index, which serves as a global standard to assess fund transparency. The methodology is based on ten indicators including managing a website, providing information about the fund’s portfolio and returns, corporate and governance structure and independent annual audited reports.

“We have introduced a high level of transparency and this is clear from the position of Samruk Kazyna in the Linaburg-Maduell Transparency Index. We are also focused on value creation in our portfolio companies and capturing these values through the strategy implementation of our companies. Most importantly, we are party to the Santiago Principles of Corporate Governance, which underscores the importance of governance and a code of conduct at the fund,” said Samruk Kazyna Managing Director for Strategy and Portfolio Investments Baljeet Kaur Grewal.

She added the fund was close to its global counterparts in another indicator – returns on equity (ROE) – that increased from 3.3 percent in 2015 to 5.5 percent in 2016.

The Santiago Principles, to which Samruk Kazyna committed itself when joining the International Forum of Sovereign Wealth Funds (IFSWF) in 2014, are a set of global standards and guidelines that its 32 members endorse to maintain global financial stability, free flow of capital and a stable investment climate.

“What about the Santiago Principles? Twenty-four principles are categorised in small sections. First, these are legislative issues that establish the legal framework, objectives and jurisdiction of the sovereign fund. The second set of issues deals with institutional framework, corporate governance, risk management, transparency, accountability and financial reporting. The third section is about the structure of investment and risk management of the sovereign fund,” said Samruk Kazyna Managing Director for Legal, Governance, Risk and Compliance Gani Bitenov.

“We will keep striving to further improve our financial performance,” added Grewal.

The capital is scheduled to host the IFSWF annual meeting Sept. 5-7 with the main theme “Exploring New Frontiers.”

Bringing members of the forum together promotes dialogue and cooperation to address the most acute issues that the funds face and search for common solutions, said IFSWF Director for Strategy and Communications Victoria Barbary.

“It includes closed meetings of the organisation’s members and open panel sessions with the participation of guests and media. It is a unique chance for Kazakh journalists to address heads of the world’s sovereign wealth funds,” she added.