Objective of the Investment Account: The objective of the Investment Account is to provide a vehicle for the investment of a part of the Fund's assets so as to generate income that may be used to help meet the expenses of conducting the business of the Fund.

Sources of Investment Account Assets: The IA will be funded initially through the transfer of currencies from the GRA in an amount equivalent to the total amount of the Fund's general and special reserves at the time of the decision authorizing the transfer. In addition, and subject to paragraph 3 below, the IA may retain or invest the income from its investments, and may also reinvest the proceeds of assets that mature or that it sells.

Uses of Investment Account Income: The IA's income from investment may be invested, retained in the IA, or used to meet the expenses of conducting the business of the Fund. The Fund will decide on the use of the IA's income for each financial year, including whether any portion of such income should be transferred to the GRA for use in meeting the expenses of conducting the business of the Fund.

Termination or Reduction of the Investment Account: The IA shall be terminated in the event of liquidation of the Fund and may be terminated, or the amount of the currency transferred to the IA may be reduced, prior to liquidation of the Fund by a 70 percent majority of the total voting power. The procedures specified in Article XII, Sections 6(f) (vii), (viii) and (ix) will apply in the event of the termination of the IA or a reduction in its assets.

Important Guidelines for Investing Investment Account Assets:
Investment Objective
The investment objective of the IA is to achieve investment returns that exceed the SDR interest rate over time while minimizing the frequency and extent of negative returns and underperformance over a 12-month investment horizon. Achieving this objective would help diversify the sources and increase the level of the Fund's income, thereby strengthening its finances over time.

Eligible Investments
The assets of the IA may be invested only as specified in Article XII, Section 6(f)(iii) of the Fund's Articles of Agreement. Accordingly:

A member's currency held in the IA may be invested only in marketable obligations of that member or in marketable obligations of international financial organizations, provided that the IA may invest only in obligations denominated in special drawing rights (SDRs) or in the currency used for investment. Marketable obligations of a member shall include the obligations of its central bank and official agencies. Marketable obligations of international financial organizations shall include without limitation SDR-denominated deposits with the Bank for International Settlements.

The IA's investment in the instruments specified above may only be made directly in the cash markets. Derivative securities-including forwards, futures, options and swaps-may not be used to establish or hedge positions in eligible investments.

Only long positions may be established in eligible investments. Short selling or any form of leverage is not permitted.