Premium
Sovereign Wealth Funds: The Norwegian Experience
Author(s) -
Caner Mehmet,
Grennes Thomas
Publication year - 2010
Publication title -
world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/j.1467-9701.2009.01235.x
Subject(s) - sovereign wealth fund , transparency (behavior) , global assets under management , norwegian , closed end fund , fund of funds , open end fund , institutional investor , business , financial system , economics , finance , income fund , christian ministry , manager of managers fund , corporate governance , market liquidity , foreign direct investment , macroeconomics , political science , linguistics , philosophy , law
Sovereign wealth funds have rapidly become significant international institutions. The performance of funds varies substantially across countries, but comprehensive and systematic analyses of funds have been hampered by the lack of transparency of most funds. The relative transparency of the Norway Fund allows us to do an econometric analysis of the Fund’s performance. The record resembles that of a mutual fund that has taken on greater risk over time. There is no evidence that the Fund has disrupted foreign financial markets more than mutual funds do. There remains a question as to whether the Fund and its Finance Ministry have been effective agents for the Norwegian citizens whose assets they are managing.