Sovereign Funds Agree on Conduct

Investment funds bankrolled by the governments of Abu Dhabi and Singapore agreed today with US Treasury Secretary Henry Paulson on guidelines aimed at allaying fears of political interference by the sovereign wealth funds, the Wall Street Journal reports. Decisions should be “based solely on commercial grounds," a statement reads, "rather than to advance … the geopolitical goals of the controlling government."

The statement also said recipients of funds' investments shouldn’t discriminate against the funds. Other international bodies are also working on developing best practices for the funds, which have drawn attention as they accumulate wealth and invest in US companies. The two biggest players, one from Singapore and the other from Abu Dhabi, recently ranked at the bottom of a best-practices “scorecard.” (More Henry Paulson stories.)