Investment Objectives of Sovereign Wealth Funds: A Shifting Paradigm

Iva Petrova, Jukka Pihlman, Peter Kunzel and Yinqiu Lu

No 2011/019, IMF Working Papers from International Monetary Fund

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: WP; sovereign wealth fund; SWF; investment; asset; investment horizon; Sovereign Wealth Funds; Portfolio Choice; Investment and Risk Management; Government Policy and Regulation; savings SWF; SWF resource; SWF's ability; SWF objective; SWF website; cross-border operation; reserve investment corporation; savings-type SWF; stabilization SWF; SWF performance; asset-liability management consideration; Asset allocation; Reserve assets; Pension spending; Stocks; Business enterprises; Global (search for similar items in EconPapers)
Pages: 16
Date: 2011-01-01
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Citations: View citations in EconPapers (22)

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