Investment Objectives of Sovereign Wealth Funds - A Shifting Paradigm

17 Pages Posted: 7 Feb 2011

See all articles by Peter Kunzel

Peter Kunzel

International Monetary Fund (IMF)

Yinqiu Lu

International Monetary Fund

Iva K. Petrova

International Monetary Fund (IMF)

Jukka Pihlman

International Monetary Fund (IMF)

Date Written: Janurary 2011

Abstract

While SWF investment objectives to some extent reflect inherent characteristics, notable differences in strategic asset allocation (SAA) exist even amongst SWFs of similar types. Even so, this paper shows that the global crisis may have changed SWF’s asset allocations in ways that may not be ideal or justified in all cases and that a review of investment objectives may be warranted. It also argues for regular macro-risk assessments for the sovereign, the continued importance of SWFs as a stabilizer in international capital markets, as well as the active role they could play in international regulatory reform.

Keywords: Asset management, Investment policy, Resource allocation, Sovereign wealth funds

Suggested Citation

Kunzel, Peter and Lu, Yinqiu and Petrova, Iva K. and Pihlman, Jukka, Investment Objectives of Sovereign Wealth Funds - A Shifting Paradigm (Janurary 2011). IMF Working Paper No. 11/19, Available at SSRN: https://ssrn.com/abstract=1755436

Peter Kunzel

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Yinqiu Lu

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Iva K. Petrova

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Jukka Pihlman

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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