Saudi Arabian Monetary Authority (SAMA) has announced its compliance with the Global Investment Performance Standards (GIPS®) from CFA Institute, in an effort to strengthen the methods of measuring the performance of SAMA investment portfolios, and apply the global best practices in the field.
Introduced in 1999, the GIPS standards are universal, voluntary standards based on the fundamental principles of full disclosure and fair representation of investment performance. The GIPS standards are administered globally by CFA Institute. SAMA has joined a list that includes 11 prominent asset owners and other investment firms operating in more than 40 markets around the world, including all or a portion of 24 of the top 25 asset managers globally as end of 2018, according to data from Cerulli Associates
Mr. Ayman Al-Sayari, CFA, Deputy Governor for Investment, said "SAMA's adoption of the GIPS standards reflects its determination and commitment to adopt the best practices used globally and to support achieving the Saudi national plans and the objectives of 2030 Vision.
Mr. Al-Sayari, added: "This achievement is the result of SAMA's continued efforts in adopting advanced investment risk and performance measurement systems. These investments contribute to strengthening the integrity of investment performance reports presented to SAMA's stakeholders because they are based on globally recognized standards."
"Asset owners that comply with the GIPS standards demonstrate a commitment to follow best practices for fairly representing and fully disclosing investment performance. Unlike asset managers that may obtain a competitive advantage from complying with the GIPS standards, asset owners like the Saudi Arabian Monetary Authority choose to comply for purely ethical reasons – because compliance is simply good governance," said Paul Smith, CFA, President and CEO, CFA Institute. "Having an asset owner as prominent as SAMA publicly announce compliance with the GIPS standards elevates the importance of the GIPS standards globally, and we encourage all asset owners to follow SAMA's lead.".