A VOLUNTARY framework for Sovereign Wealth Funds (SWFs) has been released by the International Working Group of Sovereign Wealth Funds (IWG).

Called the Generally Accepted Principles and Practices for Sovereign Wealth Funds (GAPP), it provides guidance on appropriate governance and accountability arrangements; and on the conduct of appropriate investment practices of SWFs on a purely financial and economic basis.

The GAPP is a result of extensive consultations among IWG member countries, as well as some investment recipient countries.

Singapore is represented in the IWG by the Ministry of Finance, GIC and Temasek Holdings.

The GAPP was presented at an IWG Ministerial Meeting on Oct 11 in Washington DC, where Singapore's Minister for Finance Tharman Shanmugaratnam was present.

Mr Shanmugaratnam said: 'Singapore supports the GAPP principles in full.

'The IWG has reached an important milestone... In standing by the GAPP principles, the SWFs will reinforce understanding of the constructive role that they play in international finance and help ensure that markets stay open and non-discriminatory.'

He added that the 'Government of Singapore Investment Corporation (GIC) and Temasek Holdings adhere to these principles and practices, and will continue to do so in the future.'