The U.S. Treasury Department said Thursday it had reached a series of agreements with two big sovereign wealth funds based in Abu Dhabi and Singapore on investments in U.S. markets. The agreements covering investment principles were finalized following a meeting in Washington between Treasury Secretary Henry Paulson and Abu Dhabi and Singapore government officials. “We had a good discussion today on the issues surrounding sovereign wealth funds. Singapore and UAE (the United Arab Emirates) have long-established, well-respected funds and are showing real leadership by joining with us today,” Paulson said. The agreements encourage sovereign wealth funds to be more transparent and to base their investment decisions on financial opportunities rather than political goals. “The U.S. welcomes sovereign wealth fund investment and looks forward to continuing to work with these two countries and others to support the initiatives underway at the IMF (International Monetary Fund) and OECD (Organization for Economic Cooperation and Development) to develop best practices for sovereign wealth funds and recipient countries,” Paulson said. The agreements governing sovereign wealth funds were released by the Treasury after Paulson met Singapore Finance Minister Tharman Shanmugarantnam, Abu Dhabi Executive Council member Hamad Al Hurr Al Suwaidi, and other officials at the Treasury Department. The IMF and OECD are seeking standards for sovereign wealth funds, whose value could grow to $10 trillion over the next five years.
