We recommend:

• Management

There must be an Act of Parliament establishing oversight of the legislature in enforcing accountability in the Fund. MIF, like SWFs in Norway and New Zealand, promote extensive public disclosure regarding their investment strategies, asset holdings, and risk management approach. This locates the role of legislators (parliament) to exercise oversight by gaining access to information on the MIF activities to monitor the funds appropriately.

• Appropriate Checks and Balances

To strengthen the accountability and oversight framework, disclosure with critical stakeholders, including citizens, parliament, civil society, and financial markets, is essential to maintain domestic and global legitimacy and credibility.

• Enact an Act of Parliament

Establishing oversight function of the legislature in enforcing accountability in the Fund.

• Investment

MIF should consider operating as a community fund (a fund set up to benefit domestic citizens and promote their common welfare collectively). Citizens must feel that their investment activities respect their collective values. This does not mean citizens have to invest fund assets directly; however, citizens should influence the ethical parameters of the MIF’s investment decisions

• Distribution

The government should undertake a discretionary transfer of a portion of the MIF investment returns to the general budget for reinvestment in public programs. Some SWFs allow investment returns to accrue back to the fund principal. Such a passive approach to the distribution of SWF earnings means that present-day citizens do not necessarily experience any direct benefit from their sovereign funds, arguably limiting the extent to which these funds can be considered community funds by current generations.