TOKYO - Bloomberg

Japan should adopt measures aimed at attracting more of the almost $3 trillion managed by sovereign wealth funds, a trade ministry report said.
The nation must welcome state funds that �have no political purposes and invest for the long term,� said a document to be released tomorrow by a trade ministry advisory panel, a copy of which was obtained by Bloomberg News. Any measures should conform to guidelines being drawn up by the International Monetary Fund, the report said.
Japan is seeking to rebound from the first drop in stock ownership by foreigners in five years, as investors including the California Public Employees' Retirement System question corporate governance in Asia's largest economy. Sony and Cosmo Oil are among Japanese companies that received investments from sovereign funds in the past year.
�An increase in funds that will provide risk money bears significance,� said Naka Matsuzawa, chief strategist at Nomura Holdings in Tokyo.
Japan will demand state-run funds increase transparency in line with frameworks being developed by the IMF and the Organization for Economic Cooperation and Development, the report said. The nation won't seek to develop its own set of codes, according to the report. Sovereign wealth funds may oversee more than $10 trillion seven years from now, up from $2.9 trillion now, according to the report.