Representatives of sovereign wealth funds and the International Monetary Fund formed a working group to establish a set of voluntary best-practices investment principles, said Angela Gaviria, IMF spokeswoman. The working group, which includes representatives of 24 IMF member countries, will be co-chaired by Hamad al Suwaidi, senior representative to the Abu Dhabi Investment Authority, and Jamie Caruana, director of the IMFs monetary and capital markets department.
The working group hopes to agree on a common set of voluntary principles for sovereign wealth funds by October, drawing on the existing body of principles and practices, to help maintain the free flow of cross-border investment and open and stable financial systems, according to an IMF news release.
Countries represented on the working group are the United States, Australia, Azerbaijan, Bahrain, Botswana, Canada, Chile, China, Equatorial Guinea, Iran, Ireland, South Korea, Kuwait, Libya, Mexico, New Zealand, Norway, Qatar, Russia, Singapore, Timor-Leste, Trinidad and Tobago, United Arab Emirates and Vietnam.
The formation of the working group came out of a meeting Wednesday and Thursday of the IMF with representatives of the 24 sovereign wealth funds.