SWF group forms permanent secretariat

Hosted by the China Investment Corporation (CIC), the IFSWF advanced on the commitments made in Sydney in 2010, discussed risk management issues relating to the emerging environment for global asset allocation, reviewed progress on the application of the Santiago Principles, and discussed the funding of the Forum's future work, including a permanent secretariat.

According to the a press statement, the SWFs say that in order to pursue their interests further, the group have agreed to move toward a permanent secretariat funded by the Forum members. It will be based at the International Monetary Fund for a transitory period. This funded arrangement will allow the SWFs to participate more actively in work on issues relevant to their business and to engage in a more active dialogue with recipient countries, relevant international institutions, policy makers, academia and private sector investments.

Besides the discussion, IFSWF also announced the appointment of Jin Liqun, Chairman of the Board of Supervisors, China Investment Corporation (CIC), as the new Chairman. He will replace Australia's Future Fund Chair David Murray, who has finished his two-year term. Murray will continue as an honorary chair in a consultative role, supporting Jin and Bader Al Sa'ad, Managing Director, Kuwait Investment Authority, who is now Deputy Chair of the Forum.

During the forum, Murray, who has been running Australia's Future Fund since 2005, said that SWFs are different from state-owned enterprises and a purpose of investment is to maximize a profit to a country. IFSWF further stated that the organization acknowledged the diversity amongst their members and stressed the need for a sharper differentiation between SWFs as largely long-term unleveraged investors and other types of investors including traditional state owned enterprises. Their plan is to correct some assumptions that investment activities of SWFs are done for political purposes.

IFSWF was established by the International Working Group of Sovereign Wealth Funds set in Kuwait City in April 2009. It currently has members from 23 countries, including the U.S., the United Arab Emirates, Australia and China.

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