Fund directors balk at proposed guidelines
Published: March 27, 2008 at 9:21 AM
KUWAIT CITY, March 27 (UPI) -- U.S. efforts to push political disclaimers onto sovereign wealth funds have met with resistance from fund directors, who claim their sole motivation is profit.
Last week, the sovereign funds of Singapore and Abu Dhabi's -- worth a combined $350 billion to $1.3 trillion -- signed agreements with the United States to follow a set of investment guidelines including a disclaimer that their investments were political in nature.
Backed by the U.S. Treasury, the International Monetary Fund is drafting similar guidelines this week, The Washington Post reported.
But fund directors from Kuwait, Norway, Saudi Arabia and Bahrain said they are concerned that the initiative singles out sovereign funds and could push transparency too far.
"There may be very real and valid business reasons why you wouldn't want to be totally transparent about everything," said director general of asset management in Norway's Finance Ministry Martin Skancke.
"All they are talking about is a fear of something that did not happen and will not happen," Bader al-Saad, managing director of the Kuwait Investment Authority, a $213 billion fund, told the Post.
Sovereign funds have made high-profile investments in recent years, including a $3 billion stake in Citigroup and a $2 billion stake in Merrill Lynch.
Last week, the sovereign funds of Singapore and Abu Dhabi's -- worth a combined $350 billion to $1.3 trillion -- signed agreements with the United States to follow a set of investment guidelines including a disclaimer that their investments were political in nature.
Backed by the U.S. Treasury, the International Monetary Fund is drafting similar guidelines this week, The Washington Post reported.
But fund directors from Kuwait, Norway, Saudi Arabia and Bahrain said they are concerned that the initiative singles out sovereign funds and could push transparency too far.
"There may be very real and valid business reasons why you wouldn't want to be totally transparent about everything," said director general of asset management in Norway's Finance Ministry Martin Skancke.
"All they are talking about is a fear of something that did not happen and will not happen," Bader al-Saad, managing director of the Kuwait Investment Authority, a $213 billion fund, told the Post.
Sovereign funds have made high-profile investments in recent years, including a $3 billion stake in Citigroup and a $2 billion stake in Merrill Lynch.
© 2008 United Press International. All Rights Reserved.
This material may not be reproduced, redistributed, or manipulated in any form.
This material may not be reproduced, redistributed, or manipulated in any form.
» Next in Business:
Report: New Century accountants liable
Latest Headlines
- Stroke outcome helped by clot-busting drug
- Study casts doubt on high-salt diet risk
- Huckabee jokes about Obama gunman
- Flights at N.Y.-area airports to be capped
- Strike closes five Norwegian airports
- Senator: McCain's military roots limit him
- Study: Fish underwent 'reverse evolution'
- Most don't understand healthcare coverage
Most Popular