Nigeria moves to 2nd position on sovereign wealth ratings

Nigeria has moved to the second position on the rating of sovereign wealth funds in the world.

This follows the improved rating of the Nigeria Sovereign Investment Authority (NSIA) as a sovereign wealth fund by the Linaburg-Maduell transparency index administered by the Sovereign Wealth Institute.

In the official statement announcing the second quarter 2014 ratings, the Institute singled out the NSIA for special mention stating that the Nigerian Sovereign Investment Authority (NSIA) has been upgraded to nine points out of a possible 10 from a score of 4 in the previous rankings.

This rating translates into a

leap from a position of joint 33rd to joint 2nd; the only African sovereign wealth fund so ranked.  With the latest rankings, NSIA is in credible company alongside sovereign wealth funds from the USA, France, South Korea, Brazil and Malaysia.

More significantly, the improved transparency ranking validates NSIA’s commitment and adherence to the highest prescriptions of the Santiago Principles with respect to corporate governance, investment strategy, disclosures and SWF best practices.

The NSIA believes that the capacity to deliver on its statutory mandate, for the benefits of all Nigerians, depends on these values hence the unwavering commitment to best practice standards in all policies, procedures and systems.

The Linaburg-Maduell Transparency Index was developed at the Sovereign Wealth Fund Institute by Carl Linaburg and Michael Maduell and is a method of rating transparency in respect to sovereign wealth funds.

In arriving at the rankings, the index amongst others considers the following principles -  Fund provides history including reason for creation, origins of wealth, and government ownership structure, Fund provides up-to-date independently audited annual reports, Fund provides ownership percentage of company holdings, Fund provides total portfolio market value, returns, and management compensation, Fund provides guidelines in reference to ethical standards, investment policies, and enforcer of guidelines, Fund provides clear strategies and objectives if applicable, the Fund clearly identifies subsidiaries.

Vanguard