Open AccessSovereign wealth funds: Investment objectives and asset allocation strategies
Author(s) -
Daniil Wagner
Publication year - 2014
Publication title -
journal of governance and regulation
Language(s) - English
Resource type - Journals
eISSN - 2306-6784
pISSN - 2220-9352
DOI - 10.22495/jgr_v3_i2_p4
Subject(s) - sovereign wealth fund , bailout , investment (military) , business , financial system , endowment , financial crisis , finance , asset allocation , institutional investor , asset (computer security) , economics , foreign direct investment , politics , corporate governance , macroeconomics , portfolio , philosophy , computer security , epistemology , political science , computer science , law
Sovereign Wealth Funds (SWFs) have steadily increased their importance in the global financial system in the last decade and especially during the financial crisis period. Although the objectives and investment strategies of SWFs are quite diverse, I propose to sort them into three main groups, depending on their sponsor countries’ endowment with resources and investment objectives. I present case studies and empirical analyses that reflect SWF investment activities and try to elaborate on the special role of each SWF group. Special emphasis is given to the recent financial crisis, where SWFs also acted as bailout investors by injecting substantial capital into global financial institutions, filling a financing gap that other institutional investors could not close.