Linaburg-Maduell Transparency Index for SWFs

SWFs according to these methodologies, and propelling reform through healthy competition. most transparency assessments and rankings have been developed for the wider universe of SWFs, but they have clear applicability to SIFs. chief among these methodologies is the Truman SWF Scoreboard, first launched in 2008, with four successive iterations, the latest of which is the 2015 scoreboard examining 60 funds in 42 countries (Truman 2017).12 The Truman scoreboard categorizes 33 elements of SWFs within four broad groups: structure, governance, transparency and accountability, and behavior (see box 7.4 on elements associated specifically with transparency and accountability).13 Another SWF

BOX 7.4

Truman Scoreboard for SWFs (Transparency and Accountability) and Linaburg-Maduell Transparency Index for SWFs Partial listing of Truman Scoreboard elements for transparency and accountabilitya The Linaburg-Maduell Transparency Indexb

Basic information

Investment strategy implementation

16. Are the categories of investments disclosed? 17. Does the strategy use benchmarks? 18. Does the strategy use credit ratings? 19. Are the holders of investment mandates identified? 1. manages its own website 2. Provides main office location address and contact information such as telephone and fax

Funding, structure, mandate

Investment activities

20. Is the size of the fund disclosed? 21. Are the returns of the fund disclosed? 22. Is the geographic location of the investments disclosed? 23. Is information about the specific investments disclosed? 24. Is the currency composition of the investments disclosed?

Reports

25. Does the fund provide an annual report on its activities and results? 26. Does the fund provide quarterly reports?

Audits

27. Is the fund subject to a regular annual audit of its operations and accounts? 28. Is this annual audit promptly published? 29. Are the audits independent? 3. Provides history including reason for creation, origins of wealth, and government ownership structure 4. Provides clear strategies and objectives

Governance and conflicts of interest

5. Provides guidelines in reference to ethical standards, investment policies, and enforcement of guidelines 6. clearly identifies subsidiaries and contact information 7. Identifies external managers

Financial information and performance

8. Provides up-to-date independently audited annual reports 9. Provides ownership percentage of company holdings and geographic locations of holdings 10. Provides total portfolio market value, returns, and management compensation

Sources: Truman Scoreboard developed in Truman (2008) and subsequently refined; SWF web page on the Linaburg-Maduell Transparency Index (https://www.swfinstitute.org/research/linaburg-maduell-transparency-index). Note: SWF = sovereign wealth fund. a. Only the grouping of questions under “Transparency & Accountability” have been provided here. Other questions in the 33-element scoreboard also have relevance to the structure, governance, and behavior of strategic investment funds. b. This index provides one point for each of the items. The categorization shown here is based on the World Bank team’s assessment, and is not expressly part of the methodology of the index.