IFR Sovereign Wealth Funds Volume 1

Table of Contents

 

Series Introduction
Chapter 01    Introduction
Chapter 02    Editor’s comment – Could over-regulation stifle the systemic gains?
Chapter 03    Power and responsibility – exclusive interviews
Chapter 04    The funds – size and scope
Chapter 05    Fund flows: official reserves, SWF growth and new SWFs
Chapter 06    Sovereign strategies – objective pyramids and investment strategies
Chapter 07    International and corporate impact
Chapter 08    Intermediaries and investors – roles and opportunities
Chapter 09    Sovereign Wealth Funds as corporate governors – issues with imposing obligations
Appendix 01    Santiago Principles
Appendix 02    Select sovereign wealth funds
LIST OF TABLES AND FIGURES

 

Series introduction

 

Chapter 01    Introduction

  • Overview
  • Latest developments
    • Santiago Principles
    • Impact of lower commodity prices
    • Impact of currency and banking crises

 

Chapter 02    Editor’s comment – Could over-regulation stifle the systemic gains?

  • How do SWFs change the global picture?
  • The systemic impact of SWFs
  • Will regulation enhance systemic gains, or stifle them?

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Chapter 03    Power and responsibility – exclusive interviews

  • National Fund of Kazakhstan

 

Chapter 04    The funds – size and scope

  • Defining SWFs
  • The Funds
  • Are they really that different?

 

Chapter 05    Fund flows: official reserves, SWF growth and new SWFs

  • Expansion of official reserves
    • Fungibility of SWFs and official reserves
    • Development of official reserves
  • SWFs and official reserves versus GDP
  • Growth forecasts
  • Potential new sovereign wealth funds
    • Analytical rationale
  • Demand side
    • Current account imbalances
    • Credit squeeze – SWFs to the rescue

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Chapter 06    Sovereign strategies – objective pyramids and investment strategies

  • Common factors
  • Multiple objectives
    • Macroeconomic stabilisation
    • Pension reserve funds and intergenerational savings
    • Developmental goals and wealth maximisation
  • Investment strategies
    • Stable returns
    • Active investors
    • Singaporean examples
    • Middle East SWFs
    • Restructuring plans
    • Conclusion

 

Chapter 07    International and corporate impact

  • Impact on capital markets
    • Relative importance
    • Stabilising role
    • Diversifying market participants
    • Long-termist, low leverage
    • Potential equity investment
  • Impact on currency markets
    • Exchange rate effects
  • Impact on countries of origin
    • Macroeconomic stabilisation
    • Interaction with day-to-day SWF management
    • Developmental effects
    • Sustainability
  • Impact on host countries
    • Classical benefits to host countries
    • Risks to host countries
  • SWFs’ impact on companies, or vice versa?

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Chapter 08    Intermediaries and investors – roles and opportunities

  • (Most) older SWFs aim to insource
  • Young and new SWFs create outsourcing opportunities

 

Chapter 09    Sovereign Wealth Funds as corporate governors – issues with imposing obligations

  • Understanding the problem and issues of authority
  • Question of SWF incentives: real versus perceived
  • Practicalities and effectiveness of control
  • Frameworks and systems of control: do we know what they are and can they work?
  • External issues that will impact on SWF corporate involvement
  • Conclusion

 

Chapter 10    SWF Review Issue One conclusions

  • The current status of SWFs
  • The future relevance of SWFs

 

Appendix 01    Santiago Principles

 

Appendix 02    Select sovereign wealth funds

  • United Arab Emirates: Abu Dhabi Investment Authority – ADIA
  • Future Fund, Australia
  • National Council for Social Security Fund, China
  • China Investment Corporation
  • National Fund, Kazakhstan
  • Kuwait Future Generations Fund
  • Libyan Investment Authority, Libya
  • Norway: Government Pension Fund-Global
  • Qatar Investment Authority
  • Russia: Reserve Fund and National Wealth Fund
  • Government of Singapore Investment Corporation
  • Temasek Holdings, Singapore
  • United States

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LIST OF TABLES AND FIGURES


Table 4.1:    Sovereign wealth funds as of June 2008
Table 4.2:    Investor comparisons

Table 5.1:    Dynamics of official reserves
Table 5.2:    Trade and debt-related reserve adequacy measures, 2005
Table 3.3:    Comparison of SWFs and official FX reserves as a share of GDP
Table 5.4:    Seven SWFs’ own growth predictions
Table 5.5:    Average Brent oil price in calendar years 2001–08 (US$)
Table 5.6:    Size of potential new SWFs (US$bn), reference oil price case
Table 5.7:    Size of potential new SWFs (US$bn), high oil price case

Table 7.1:    Size in relation to GDP
Table 7.2:    Top 20 oil producers’ proven oil reserves, in years of production
Table 7.3:    FX Reserve levels vs. imports and short-term debt
Table 7.4:    Estimated losses on financial sector investments by SWFs

Table 8.1:    ‘Mature’ SWFs’ degree of outsourcing estimated for end-2007
Table 8.2:    ‘Younger’ SWFs’ degree of outsourcing estimated for end-2007
Table 8.3:    Potential for future outsourcing by SWFs by 2013

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Table A2.1:    ADIA key data
Table A2.2:    Future Fund key data
Table A2.3:    NSSF/NCSSF key data
Table A2.4:    Significant CIC investments
Table A2.5:    CIC key data
Table A2.6:    Kazakhstan National Fund key data
Table A2.7:    Significant KIA investments
Table A2.8:    KIA key data
Table A2.9:    LIA key data
Table A2.10:    Norway GPF-Global key data
Table A2.11:    Significant QIA overseas investments
Table A2.12:    QIA key data
Table A2.13:    Russia Reserve Fund and National Wealth Fund key data
Table A2.14:    GIC – recent significant investments
Table A2.15:    GIC key data
Table A2.16:    Significant Temasek overseas investments
Table A2.17:    Temasek key data
Table A2.18:    US state permanent trust funds key data


Figure 5.1:    Growth of Norway’s SWF vs. its official reserves, 1999–Q3 2007 (NKr bn)
Figure 5.2:    Seven SWFs’ own growth predictions
Figure 5.3:    Current account balance in the US and ROW (current US$bn)

Figure 6.1:    A pyramid of objectives pursued by SWFs

Figure A2.1:    UAE oil production and revenue projections
Figure A2.2:    ADIA portfolio composition – currencies, 2008 (%)    
Figure A2.3:    ADIA portfolio composition – assets, 2008 (%)
Figure A2.4:    Future Fund portfolio composition, 30 June 2007 (%)
Figure A2.5:    Future Fund portfolio composition, 30 April 2008 (%)
Figure A2.6:    NSSF portfolio composition, end-2006 (%)
Figure A2.7:    NSSF assets and liabilities, 2000–06 (Rmb bn)
Figure A2.8:    China’s FX reserves (US$bn)
Figure A2.9:    Distribution of initial US$200bn portfolio (US$bn)
Figure A2.10:    Funding of the CIC
Figure A2.11:    Kazakhstan oil production and revenue projections
Figure A2.12:    National Fund structure, April 2008 (%)
Figure A2.13:    National Fund portfolio by currency, April 2008 (%)
Figure A2.14:    Kuwait oil production and revenue projections
Figure A2.15:    Libya oil production and revenue projections
Figure A2.16:    Norway oil production and revenue projections
Figure A2.17:    Norway GPF-Global growth, 2001–15F (US$bn)
Figure A2.18:    Benchmark portfolio composition
Figure A2.19:    Qatar oil production and revenue projections
Figure A2.20:    Russia oil production and revenue projections
Figure A2.21:    Russian Federation, FX reserves (minus gold), 1996–2006 (US$m)
Figure A2.22:    GIC portfolio composition – assets (%)
Figure A2.23:    GIC portfolio composition – currencies (%)
Figure A2.24:    Temasek portfolio composition by sector (%)
Figure A2.25:    Temasek portfolio geographical distribution (%)
Figure A2.26:    Temasek return on investment by market value (%)
Figure A2.27:    Alaska PFC portfolio by market value (%)

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