This book talks about the past realities, evolving roles and future directions of sovereign wealth fund (SWF) managers in these areas: Investment behavior of SWF managers up to this point due to their massive size: How sovereign wealth funds may behave differently from commercial investment houses managing comparable amounts of assets The evolving role of these SWF managers as "investors of last resort" during the Financial Crisis, and whether there are better ways to understand their investing behavior given that they can destabilize entire market segments Future market scenarios given the likely roles SWF managers going forward, when they may be the only type of entities available with sufficient balance sheets to offer a credible solution to the underlying cause of the Financial Crisis, which is global imbalance. Analyses in this book were developed by working with real-life portfolios of comparable size, making them realistic and useful for investors, allocators as well as policymakers to understand sovereign wealth investments as well as their investment and policy implications.
Overview: What drives Persistent Global Imbalances?; Implications to Global Imbalances; Should there be Structural Solutions prior to Launching Rescue Attempts?; Can Asian Sovereign Wealth Funds Save the Global Economy?; Conclusions; Past Realities: Brief History of Sovereign Wealth Funds; Macro Factors; Investment Purposes; Performance Attribution; Risk Attribution; Investment Policies; Non-Investment Issues under an Evolving Landscape; Evolving Roles: Introduction; Model of Global Economy; Potential Outcomes of Policy Interventions; Implications to SWF Investing; Conclusions; Future Directors: Scenarios; Third-party Bystanders; Policy Implications; Future Research; Conclusions.