| 1. |
|
GIC's view on the issue of transparency among the Sovereign
Wealth Funds (SWFs) include the following: |
| |
|
|
| |
• |
There is a case for further disclosure on the part of SWFs,
in the interest of transparency. Such disclosure can include
clarity on the relationship between SWFs and their
respective governments, their investment objectives and
general strategies, and their internal governance and risk
management practices. |
| |
|
|
| |
• |
Recipient countries should not adopt policies that inhibit
cross-border investments. Reciprocity in keeping markets
open for foreign investments would be desirable.
"Financial protectionism" should be avoided. |
| |
|
|
| |
• |
All players in the global financial markets should be
treated equally. SWFs should not be discriminated against.
SWFs could be seen as contributing to financial stability
because of their focus on well-diversified portfolios, longterms
returns, and virtually no leverage. On the other hand,
for example, global hedge funds, operating with substantial
leverage, control larger assets than SWFs and tend to trade
actively. |
| |
|
|
| |
. |
Any guidelines for SWFs should encourage SWFs to
operate according to commercial principles with a longterm
orientation, free from political motivations. |
| |
|
|
| 2. |
|
Singapore will participate actively in efforts to formulate a set
of principles and best practices for SWFs. GIC believes that it can
contribute in a positive way to the framework for greater disclosure. |
| |
|
|
