DAVOS-HIGHLIGHTS-Sovereign wealth funds forum

DAVOS, Switzerland, Jan 24 (Reuters) - Following are highlights of comments at a forum on sovereign wealth funds made by participants at the World Economic Forum on Thursday.

ALEXEI KUDRIN, DEPUTY PRIME MINISTER AND FINANCE MINISTER OF RUSSIA:

"There is cause for potential concern in the future -- so let's sort that out.

"What kinds of investment in the US economy or a large American company create a threat to national security, then we are talking about something very different.

"Let's look at what constitutes a threat to national security.

"When there was a period when traditional economies had strong funds and through several funds moved into markets and bought industries, we did not speak of restricting capital.

"Now (it is the other way around) we are having discussions about the aim of investment.

"It's an interesting discussion - there is no cause for concern, but we are discussing a code of practice. Perhaps we are ahead of ourselves.

"So far, we have not identified any negatives but we are already talking about a code to protect us. Let's first define what could give rise to concern."

ROBERT KIMMITT, U.S. DEPUTY SECRETARY OF THE TREASURY:

"At this point, the history with sovereign wealth funds is they are generating higher investment returns without generating political controversy.

"Importantly, both fund management and investment decisions we have seen have been made on commercial not political grounds. We welcome that kind of investment in the United States. We don't fear such investment.

"However, the growth in the size and the number of these funds is such that vigilance is required.

"Since Dubai Ports World, we have had over 200 cases that have come through the Committee on Foreign Investments in the United States -- none of those has been blocked.