Saudi-Arabien tritt entschlossen und finanzstark in den geopolitischen Wettbewerb um mineralische Rohstoffe ein. Im Rahmen der Vision 2030 sollen die lokale Weiterverarbeitung und die industrielle Wertschöpfung gestärkt werden. Derzeit verschafft sich Saudi-Arabien mineralische Rohstoffe durch...

This report describes the ESG integration practices at GPF as a practical example of how a pension fund can integrate ESG considerations into its investment practices and processes. The report focuses on the incorporation of ESG issues into our investment analysis and decision-making process....

Many countries that have large surplus financial resources but contend with limited land and water resources use large-scale land acquisitions (LSLAs) in foreign countries to ensure national food security and earn long-term returns on their investments. LSLAs can provide positive direct and...

While market mechanisms and private initiatives can deliver much for development, public action is also necessary to: maximize the economic benefits of the extractive industries; manage potentially large capital and revenues flows; minimize adverse environmental and social impacts; and steer the...

Saudi-Arabien tritt entschlossen und finanzstark in den geopolitischen Wettbewerb um mineralische Rohstoffe ein. Im Rahmen der Vision 2030 sollen die lokale Weiterverarbeitung und die industrielle Wertschöpfung gestärkt werden. Derzeit verschafft sich Saudi-Arabien mineralische Rohstoffe durch...

This paper examines the performance of 538 sovereign wealth fund (SWF) investments into venture capital, private equity, and real asset funds ("alternative asset funds") from 52 countries around the world over the years 1995-2020. The data indicate SWFs are significantly slower to fully...

This paper investigates the dependence of the investment behaviour of Sovereign Wealth Funds (SWFs) on the Environmental, Social, and Governance (ESG) performance of their underlying investments in public equity holdings. We deploy a control variable, which monitors the Corporate Social...

The heightened volatility of commodity prices in recent years, reflecting the effects of the pandemic and the war in Ukraine, begs the longstanding question of the optimal fiscal policy response to commodity price shocks. Fiscal performance in most commodity-exporting countries is typically...

The Selected Issues paper focuses on climate change in Kiribati. This note summarizes the main ways in which climate change may negatively affect the economy of Kiribati. It then shows how Kiribati may cope with these negative effects by implementing adaptation projects, as well as by...

The heightened volatility of commodity prices in recent years, reflecting the effects of the pandemic and the war in Ukraine, begs the longstanding question of the optimal fiscal policy response to commodity price shocks. Fiscal performance in most commodity-exporting countries is typically...

The past two decades have seen a rapid rise in large-scale, state-led transnational investment from countries as different as China, Norway and Russia. By bundling economic resources, these countries have entered global markets through massive state-led investments. This transformation of states...

This paper empirically investigates the economic correlates of the size of Sovereign Wealth Funds (SWF). We exploit a panel of 28 SWFs for the period 2008-2018. Findings highlight that: (i) GDP is positively associated with the size of the SWF so confirming that richer countries have larger...

We examine how sovereign wealth fund (SWF) investments affect target firms’ cost of debt. Using a large sample across 39 countries from 2004 to 2019, and applying a difference-in-differences (DiD) approach, we find that the loan spread of target firms decreases after equity investment by SWFs....

This paper presents a framework for portfolio optimization that makes three departures from the traditional mean-variance approach. First, we optimize the portfolio over multiple horizons, reflecting the belief that long-term investors care about intertemporal gains and losses, as well as...

This paper studies the regulatory issues related to the “Sovereign Wealth Funds” (SWFs), described as “special purpose” government investment vehicles.Concerns have been expressed due to SWFs limited disclosure and transparency and their multiple investment objectives.While the risk of a...

We propose a normative strategic asset allocation model for long horizon sovereign wealth funds (SWFs) subject to a sustainable spending constraint and background risks. SWFs should have lower stock market exposure as they mature and should use the SWF to smooth business cycle shocks, rather...

This paper examines the performance of 538 sovereign wealth fund (SWF) investments into venture capital, private equity, and real asset funds (“alternative asset funds”) from 52 countries around the world over the years 1995-2020. The data indicate SWFs are significantly slower to fully...

In recent years, foreign exchange reserves of some of the central banks are increasingly being switched into investments in riskier assets that have been perpetually meant for liquid and safe instruments. Those reserve funds are mainly derived from excess liquidity in the public sector stemming...

In an era of ascendant globalization, sovereign wealth funds were used by governments around the world—and in particular by governments with massive natural resource wealth or balance-of-trade surpluses—to invest widely in foreign markets. Sovereign wealth funds were products of the...

We review and bridge the literature on the internationalization of state-owned firms and sovereign wealth funds to provide a novel understanding of how governments’ nonbusiness objectives affect foreign investments. We explain how governments as foreign investors behave differently from...

Natural resource funds are created to advance their home state interests. However, because they are more active as sovereign wealth funds invested within host states, overwhelming attention has been on their regulation to safeguard transnational interests. Meanwhile, they are only effective when...

We simulate the future performance of the Norwegian Government Pension Fund Global as a leading example of sovereign wealth funds intended both to preserve wealth and provide regular budget contributions. Withdrawals are limited to the fund’s expected real returns; however, deviations are...

We use a difference-in-differences approach, and find that, on average, SWF investments are negatively related to target firms’ corporate governance. This impact holds for small SWF cross-border equity investments only, and is stronger for firms that are weakly governed and for those located...

In this review, we evaluate the active management by Norges Bank Investment Management (NBIM) of the Norwegian Government Pension Fund Global (NGPF) for Norway's Ministry of Finance. The review begins with an executive summary