Sovereign Wealth Funds: Policies and Practices
Sovereign asset managers are giants in the world of institutional investment. The top 125 sovereign investors manage assets comparable to that of the top 300 pension funds. Below we have curated a list of the top SWF papers from the last few years, all published on the Savvy investor platform.
Invesco's sixth annual study of Sovereign Asset Management reveals that exposure to equities now exceeds that to bonds, while allocations to private markets continue to grow.
Invesco Global Sovereign Global Asset Management Study 2018
(For compliance reasons, this paper is only accessible in certain geographies)
This is Invesco's sixth annual study of sovereign investors. It gathers unique perspectives from senior investment professionals managing the assets and reserves of sovereign wealth funds, state pension funds and central banks globally.
How Do SWFs Invest? Shift into Private Markets Continues (State Street, 2018)
Sovereign Wealth Funds (SWFs) play a key role in global capital markets. As a result, the International Monetary Fund continues to track their asset allocation preferences. This report is an update to the Fund's 2015 study.
Sovereign Asset-Liability Management: Guidance For Resource-Rich Economies (IMF)
This paper by the International Monetary Fund provides policymakers with a practical framework to for considering the various opportunities and challenges that arise in the context of managing natural resource wealth.
Institutions and policies for managing sovereign wealth (Harvard Kennedy, 2015)
This research features the insights of sovereign investor experts from a number of the world’s leading universities, former policymakers, and investment professionals.
How Do Central Banks Invest? (State Street, 2017)
This paper by State Street illustrates and forecasts some gradual shifts in investment strategies of reserve managers coping with the low yield environment.
Central banks and liquidity risk (Invesco, 2017)
(For compliance reasons, this paper is only accessible in certain European countries)
Broadly speaking, central bank reserves managers have three investment objectives: capital preservation, return and liquidity. This paper focuses on managing liquidity risk. It examines the issue within a fast-changing market environment.
Japan's GPIF: New Performance-Based Fee Structure (GPIF Working Paper, 2018)
About 20% of all GPIF assets are actively managed by managers but only a small number achieved the target excess return rate from FY '14 to FY '16. This report details the reasons behind GPIF's revised fixed fee structure.
Nothing Lasts Forever - Imagining the Life Cycle of a Sovereign Wealth Fund (State Street, 2016)
This paper helps Sovereign Wealth Funds (SWFs) reframe their goals by focusing and rearticulating their core mission. It explores important questions around ultimate fund purpose, how to measure success, appropriate time frames, and more.
SWFs: Asset Allocation for the Short- and Long-Term (IFSWF, Dec 2016)
This white paper explores challenges that International Forum of Sovereign Wealth Funds (IFSWF) members face as they balance short- and long-term investment objectives and proposes specific frameworks that may be useful in this endeavour.
Co-investments of sovereign wealth funds in private equity (2016)
Direct investments are the preferred vehicle for large institutional investors to have control over their portfolio investments. This paper examines the deal structure of direct investments by sovereign wealth funds in private equity transactions.
Sovereign Wealth Funds Investment in Sustainable Development Sectors (UN, 2017)
Globally, SWFs are a major source of long-term investor capital. There are however, a number of issues that are inhibiting the flow of capital into Sustainable Development Sectors. These issues (and more!) are explored in this report.
Evaluating Investments in Unlisted Equity for the Norwegian Government Pension Fund Global (Døskeland and Strömberg, 2018)
This detailed report has been authored by two academics of the Stockholm School of Economics. It aims to provide helpful examination and recommendations on whether the mandate of Norway's Government Pension Fund Global (GPFG) should be changed slightly to permit investments in unlisted (private) equity investments.