SINGAPORE (AFP) - Representatives of the world's sovereign wealth funds began a closed-door meeting in Singapore on Wednesday as part of efforts to prepare voluntary guidelines for the funds, an official said.

Sovereign wealth funds (SWFs) are a government-created investment vehicle which have emerged as a potent force on global markets, leading to concerns over a lack of transparency and national security in recipient countries.

In a bid to develop generally accepted principles and practices for the funds, the International Monetary Fund (IMF) gathered 25 of its member states with SWFs on May 1 to form the International Working Group.

"This is the first meeting of this group," a working group official, who asked not to be named, told AFP. He said the Singapore gathering was one of a series to be held around the world.

The group, co-chaired by the IMF and the Abu Dhabi Investment Authority (ADIA), aims to finish its work by October.

Almost all 25 members would be present at the Singapore meeting, the official said.

ADIA, of the United Arab Emirates, is the world's largest sovereign wealth fund.

Asia Pacific members of the working group are Australia, China, New Zealand, South Korea, East Timor, Singapore and Vietnam.

Sovereign wealth funds today manage between two and three trillion dollars in investments, according to the IMF, an amount that is projected to grow to up to 10 trillion dollars in the next five years.

Singapore's state-linked investment firm Temasek Holdings, and the Government of Singapore Investment Corporation (GIC), are among the largest sovereign wealth funds in the world.

They recently made multi-billion-dollar investments in global financial houses battered by a US housing slump.

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