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| Strategic Investment Funds
basis—although in practice unanimity is sought in most investment decisions.4 Since the beginning of 2018, the Direct Investment Committee has also been entrusted to play the role of risk committee. This setup was deemed by the board as operationally more efficient than having separate investment and risk committees. If the project passes the screening of the Direct Investment Committee, it moves up to board level, where the ultimate investment decision is made— again on a majority basis but with an effort to reach broad consensus; the chair of the Direct Investment Committee presents projects for board approval, after a positive deliberation by the Direct Investment Committee. Conflict of interest procedures are in place to ensure that board members have no interest in matters considered by the board. Members must disclose the nature of their interest in advance of board consideration, cannot seek to influence a decision relating to that matter, and have to leave the meeting during the discussion of that matter. In addition, no board member or other NSIA executive can be involved in a personal capacity, directly or indirectly, in the purchase of assets of or by NSIA. The Compensation Committee of the NSIA board annually reviews and approves the compensation structure of NSIA’s staff and senior management. This committee also comprises three nonexecutive board members, ideally serving a term of at least three years and deciding on a majority basis. It reviews and approves staff and senior management compensation in light of market dynamics and NSIA’s long-term objectives. See the subsection on staffing and recruitment for more detail on staff compensation and incentives. The Audit Committee’s role is to assist the board in fulfilling its oversight responsibilities relating to NSIA’s accounting and financial reporting policies and practices, compliance programs, internal controls, and general compliance with applicable laws and regulations. Among other functions, the Audit Committee reviews the financial reports, internal control and audit systems, and compliance with applicable laws; selects, reviews, and recommends the appointment of external auditors; and ensures disclosure of related-party transactions and conflicts of interest. The committee consists of three nonexecutive board members, who decide on a simple majority basis.
STAFFING AND RECRUITMENT Despite offering lower remuneration than equivalent private sector funds, NIF has managed to hire a qualified team of investment professionals with international academic and professional backgrounds, including a secondee from the IFC. The NIF investment team has 12 members, including a director (IFC secondee), 2 senior vice-presidents, a vice-president, and 6 associates. This team is part of a broader NSIA team of 30 investment professionals. At the time of writing, NSIA is still hiring and sometimes competes with private equity funds for candidates. NIF staff members come primarily from investment banks, infrastructure-focused private equity funds, industry sectors (for example, construction and power), consulting firms with infrastructure and project finance implementation expertise, and public policy. NIF’s skill set combines technical and financial expertise. Years of experience are a minimum of 2 for junior hires to more than 20 for senior hires. Compensation is largely fixed, with a 10 percent element that is performance based. The Compensation Committee can commission surveys to assess market
