Kimmitt: Sovereign funds a positive force to date

LONDON (Reuters) - Sovereign wealth funds, the increasingly powerful investment arms of governments around the world, exert a positive impact on the global economy and so far have not invested for political purposes, a senior Treasury official said on Tuesday.

"Sovereign wealth funds have been around since the 1950s and thus far their track record is very strong and positive. They are patient long-term investors and we have no evidence that any of their decisions have been made for political and not commercial reasons," Robert Kimmitt, Deputy Treasury Secretary, told BBC Television.

Boosted by the ballooning trade surpluses their countries run, the size, number and influence of these funds are expected to grow.

Kimmitt said their assets could grow to $12.5 trillion in five years from around $2.5 trillion currently.

"These funds are growing in size and number ... that's why vigilance is required," he said.

"Transparency, risk management procedures and good governance -- these are ways for the funds to demonstrate they're going to continue to be responsible players in the global economy," Kimmitt said.

(Reporting by Jamie McGeever, editing by Mike Peacock)