Open Capital Markets and Sovereign Wealth Funds, Pension Funds, and State-Owned Enterprises

2011 ◽  
pp. 105-146 ◽  
Author(s):  
Adrian Blundell-Wignall ◽  
Gert Wehinger
Keyword(s):  
Capital Markets ◽  
Pension Funds ◽  
Sovereign Wealth Funds

Pension Funds, Capital Markets, and the Power of Diversification

2017 ◽  
Author(s):  
Fiona Stewart ◽  
Romain Despalins ◽  
Inna Remizova
Keyword(s):  
Capital Markets ◽  
Pension Funds

The Rise of State-Owned Investors: Sovereign Wealth Funds and Public Pension Funds

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
William L. Megginson ◽  
Diego Lopez ◽  
Asif I. Malik
Keyword(s):  
Hedge Funds ◽  
Private Equity ◽  
Academic Research ◽  
Pension Funds ◽  
State Ownership ◽  
Public Pension ◽  
Annual Review ◽  
Publication Date ◽  
New Governance ◽  
Sovereign Wealth Funds

State-owned investors (SOIs), including sovereign wealth funds and public pension funds, have $27 trillion in assets under management in 2020, making these funds the third largest group of asset owners globally. SOIs have become the largest and are among the most important private equity investors, and they are key investors in other alternative asset investments such as real estate, infrastructure, and hedge funds. SOIs are also leaders in promoting environmental, social, and governance policies and corporate social responsibility policies in investee companies. We document the rise of SOIs, assess their current investment policies, and describe how their state ownership both constrains and enhances their investment opportunity sets. We survey the most impactful recent academic research on sovereign wealth funds, public pension funds, and their closest financial analogs, private pension funds. We also introduce a new Governance-Sustainability-Resilience Scoreboard for SOIs and survey research examining their role in promoting good corporate governance. Expected final online publication date for the Annual Review of Financial Economics, Volume 13 is November 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

The Use of Debt by Sovereign Wealth Funds

2017 ◽  
Author(s):  
Stefano Lugo ◽  
Fabio Bertoni
Keyword(s):  
Capital Markets ◽  
Yield Curve ◽  
Bond Market ◽  
Bond Markets ◽  
Sovereign Wealth Funds ◽  
Strategic Investment ◽  
Investment Style ◽  
Debt Capital ◽  
Portfolio Size

This chapter documents the use of debt capital by sovereign wealth funds (SWFs)—a growing and under-researched phenomenon. Three reasons are given for this. First: debt can help SWFs reach their target portfolio size. (Some do not receive regular inflows from their governments to increase their assets under management (AUM). Second: the development of capital markets is a key objective for most of the countries that have created an SWF, and debt may be especially useful for the development of the bond market. SWF bonds are quasi-governmental securities that can be used as collateral and create a reference yield curve. Third: the use of debt capital is particularly appropriate for portfolio SWFs investing in concentrated portfolios of selected companies for strategic and financial reasons. SWFs are more likely to use debt when they are non-commodity-based, come from countries with relatively less developed bond markets, and have a strategic investment style.

scholarly journals Regulating the Sovereign Wealth Funds

2008 ◽  
Vol 9 (2) ◽  
pp. 63-86
Author(s):  
Bliss Burdett Pak
Keyword(s):  
Capital Markets ◽  
Free Market ◽  
State Level ◽  
Investment Fund ◽  
Sovereign Wealth Funds ◽  
Global Capital ◽  
Private Sector Investment ◽  
State Models ◽  
Regulatory Analysis

This paper examines the new policy issues surrounding the rise of the “sovereign wealth funds” in global capital markets. A profound and newly significant incidence of globalization, the role of foreign governments as capital providers in nominally capitalistic, free-market economies is disrupting basic principals and assumptions regarding the role of private and public markets and their regulators. This paper examines the potential for appropriate regulatory schemes co channel these wealth pools in economically productive and apolitically-motivated directions, with the goal of permitting them to perform the functions for which they were established: the preservation and prudential investment of the vase wealth of nations. This regulatory analysis proceeds along three lines: (i) first, a model for corporate governance of a "typical" sovereign fund is proposed, based on the established models of private sector investment fund schemes; (ii) second, a review of host state models and current proposals for foreign investment regulation is undertaken, focusing on the special scrutiny given or proposed co be made available for investments by state-owned funds; and (iii) finally, an assessment is offered regarding international organizations' potential role as venues for cooperation and coordination of the newest and largest players in global capital markets. Though the sovereign wealth funds have made significant gains in establishing their credibility as welcome and responsible providers of global capital through their voluntary and independent actions, this paper concludes chat both state-level regulatory accommodation and international cooperation through established economic organizations such as the OECD and IMF offer significant potential benefits to both the funds and the national markets (and target companies therein) if appropriately designed. At a minimum, national and international treatment of the special nature of the sovereign wealth funds may enable capital markets to remain relatively open by specifically addressing the sources of market participants’ (and politicians’) fears of abuse, thereby strengthening the structures chat support the global free movement of capital and channel it co its highest and best use.

scholarly journals Albania among Bank Based System’s Countries

2013 ◽  
Vol 3 (2) ◽  
pp. 121
Author(s):  
MSc. Rovena Troplini
Keyword(s):  
Transition Economies ◽  
Financial Market ◽  
Capital Markets ◽  
Banking System ◽  
Financial System ◽  
Pension Funds ◽  
Asset Markets ◽  
Investment Funds ◽  
Dynamic Development ◽  
New Phase

The Albanian financial system has entered a new phase of its development. Financial system in Albania is bank oriented, as financial market is not active. Because of the important and deep changes that have altered the image of the banking system, the conditions for more dynamic development of non-banking intermediaries and capital markets have been created. The analysis is based on the standard indicators of size and activity of banking intermediaries. The results of the analysis show that the size and activity of Albanian banking system is growing faster but limiting the crediting process only on banks. However, the achieved level of development of banking intermediaries is still below of other advanced transition economies. Albanian financial system needs to develop quickly the activities of pension funds, investment funds and bond/asset markets in order to create great opportunities to the Albanian economy.

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