State investment funds fight suspicion at Davos

0 Comments | AFP, January, 2008

DAVOS, Switzerland (AFP) — Sovereign wealth funds are a visible force in Davos this year, reflecting their new-found power, but even at a meeting celebrating globalisation they face suspicion in some quarters.

The state-run investment funds, founded in oil-exporting countries and Asian exporters to invest their reserves, are feared by some as Trojan horses that could be used by governments for political rather than commercial ends.

Some of the leading practitioners took part in a debate here Thursday, explaining that the industry was misunderstood but rejecting pressure for more transparency to counter worries about their intentions.

"There is a lot of worry about the sovereign funds but all these worries are not real cases. They are either assumptions or...