Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
NewsMarch 30 2010

SWFs move towards greater transparency

Abu Dhabi: home of the world's largest SWFAbu Dhabi Investment Authority (ADIA), the world's largest sovereign wealth fund (SWF), has published its first annual review detailing its investment aims and portfolio. The report groups the fund's asset allocation by asset class and geographical distribution. ADIA declined to reveal its total assets, which are estimated at between $350bn and $450bn.
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
SWFs move towards greater transparency

ADIA's move towards transparency follows previous criticism from some Western officials and politicians who expressed concern over potentially politically sensitive investments into strategically important sectors. These concerns led to intervention by the International Monetary Fund (IMF) over public disclosure of information and investment motives and intentions.

The IMF has been influential in developing guidelines to help SWFs to improve transparency and governance. The Santiago Principles were drawn up in consultation with several leading SWFs as a guide to best practice and were ratified by the International Forum of Sovereign Wealth Funds in April last year. An important factor for funds in signing up to the guidelines is the expectation that SWFs would not be subject to more compliance and regulatory requirements than other investors.

Singapore's SWFs, Government Investment Corporation and Temasek, have also published annual reviews and there have been some suggestions that Qatar Holding is planning to publish a similar report.

SWFs based in Asia are more likely to have higher compliance standards than Middle Eastern SWFs, according to the Sovereign Wealth Funds 2010 report published by International Financial Services London. The report also suggests that the SWF market is set to increase, with several countries including Angola, India and Japan planning on establishing funds.

Was this article helpful?

Thank you for your feedback!