Dear Sir,
I welcome the comments made this weekend by British Business
Secretary Lord Mandelson in support of sovereign wealth funds.
As my year in office as Lord Mayor of the City of London draws
to a close, it is clear that such investments are here to stay,
indeed I have argued during the past twelve months that they should
be courted as a way of injecting much-needed capital into the
global financial system. SWFs have caused alarm in some political
circles, but this alarm is misplaced. SWFs are a direct consequence
of the explosion in world trade, and the wealth some countries
derive from their natural resources. Indeed, with their long-term
investment horizons they can play an important role in stabilising
markets.
As long as SWFs are invested in a transparent and efficient way,
continue to make their investments in a non-political way and are
appropriately supervised in accordance with local laws, they will
be an asset to the global economy, not a danger.
London, as part of the global market place, which hosts a truly
international skills base, should position itself as the centre of
choice from which such funds can access the international markets -
we should positively encourage their investment.
Yours sincerely,
Alderman David Lewis
Lord Mayor of the City of London