INTERNATIONAL MONETARY FUND
Establishment of the Investment Account
Prepared by the Finance Department
In consultation with the Legal Department and other departments
Approved by Michael G. Kuhn
April 14, 2006
Contents
Page
I.
Introduction....................................................................................................................2
II.
Steps to Establish the Investment Account....................................................................3
III.
Rules and Regulations of the Investment Account ........................................................3
A. Investment Authority and Eligible Investments .................................................3
B. Investment Objective and Benchmark ................................................................5
C. Risk Controls.......................................................................................................6
D. Administrative Arrangements .............................................................................7
E. Reporting Procedures ..........................................................................................8
Annexes
I.
Rules and Regulations of the Investment Account ......................................................11
II.
Consideration of Alternative Investment Strategies ....................................................14
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I. INTRODUCTION
1. This paper summarizes the relevant considerations and presents decisions for the
establishment of an Investment Account (IA). Executive Directors considered an analysis of
the establishment and operations of an IA in September 2005. During the discussion in
March 2006 of the medium-term outlook for the Fund’s income, Directors requested staff to
return to the Board with a paper proposing decisions on the establishment of an IA.
2. The Fund’s Articles of Agreement authorize the establishment of an IA whose
income may be used to meet th