...This chapter presents the keynote address of Andrés Velasco during the October 2010 conference “Sovereign Wealth Funds and Other Long-Term Investors: A New Form of Capitalism?” held at Columbia University. In it, explores the macro view of sovereign wealth funds (SWFs) based on the experience...

.... objectives sovereign wealth funds SWF benchmarks long-term investment Good governance requires an evaluation of performance. The establishment of benchmarks and performance standards is crucial for a well-functioning SWF. Sovereign governments, as opposed to private actors in the marketplace, normally...

... and accumulated resources. The expected value of the stabilization funds in the long term should be zero. The funds do not have to be placed on a shelf like a trophy, but used when the rainy days come. He also discusses the importance of legitimizing the process of saving. sovereign wealth funds SWF...

...This chapter argues that sovereign wealth funds (SWFs) should be tilting their benchmarks away from market-cap weights, and tilting towards assets that will benefit when global greenhouse gas emissions are priced. They should be tilting portfolios away from assets and equities that will be hurt...

... that the organizations represented at this meeting could use their political force to stop that asymmetry that is damaging the political process to our universal disadvantage. In response, panelist Bob Litterman said that sovereign wealth funds (SWFs) could influence corporations to not lobby against pricing emissions...

... SRI long-term investment sovereign wealth funds SWF SRI often is thought of in terms of negative screening: do not invest in arms, tobacco, and other wicked items. A better approach might be to think of it as a conduit to improving the functioning of the international financial system...

... are costly and that they are a form of public good provided to all other shareholders. Norwegian Fund Norges Bank Investment Management NBIM sovereign wealth funds SWF socially responsible investment SRI SRI is a big topic with many aspects and dimensions to it. As of October 4, 2010, the correct...

...This chapter closes the panel discussion on socially responsible investment (SRI) by promoting microcredit in developing countries as a natural match for SRI investments by sovereign wealth funds (SWFs). The microfinance market includes three to four billion people worldwide who have no access...

... that they apply. SWFs can play a role as activists, to directly challenge companies that do not fulfill the criteria they want to see. sovereign wealth funds SWF socially responsible investment SRI developing countries Improving the functioning of the international financial system is a concern for all. From...

..., or to facilitate a share issue. long-term investment L-shares sovereign wealth funds SWF loyalty warrants L-shares are a method of incentivizing long-term investors. They are born of the simple observation that, whether you invest for six months or six years, you will receive exactly the same thing from...

... for long-term investors, who need to be able to anticipate these fundamental changes to be able to profit from them in the long run. sovereign wealth funds SWF Organization for Economic Co-operation and Development OECD global governance cognitive maps long-term investors The financial and economic...

... of shareholders, either in the form of loyalty shares or in the form of greater control rights for long-term-oriented shareholders, might be an effective remedy against this form of short-termism in markets. US financial industry financial sector executive compensation sovereign wealth funds SWF risk-taking...

... with sovereign wealth funds (SWFs) to ensure a rational response to climate change through information. Carbon Disclosure Project non-profit organizations sovereign wealth funds SWF Climate Disclosure Standards Board Climate change is serious. National governments, which exist in a globally interconnected...

...This chapter introduces the panel entitled “Managing Risk During Macroeconomic Uncertainty” by making two distinctions between the challenges facing sovereign wealth funds (SWFs) and those facing ordinary investors and ordinary asset managers. The first is that they are long-term investors...

...This chapter addresses macroeconomic uncertainty and risk management for sovereign wealth funds (SWFs) based on policy experience and more recently from the perspective of a long-term investor. The chapter raises six simple questions. First, does SWF governance hinder performance during times...

... of volatility. In many countries, poor and rich, historically a good part of volatility has been caused by policies that were volatile or in some cases procyclical. Sovereign wealth funds (SWFs) can mitigate that homegrown volatility by helping pursue better fiscal policies. Countries in which SWFs have been...

... whether the consumer was missing from this discussion, which focused on producers. John Sfakianakis remarked that this was a problem for oil-exporting countries, which sought security of demand for their product. hedging self-insurance sovereign wealth funds SWF Colombia A participant commented...

...This chapter briefly introduces the panel entitled “Sovereign Wealth Funds and World Governance”. It argues that although sovereign and private institutional investors have different ownership structures and may even pursue divergent investment objectives, common to both are such themes...

...This chapter cautions against the temptation to see the role of sovereign wealth funds (SWFs) in global economic governance mostly in terms of what we wish they were doing rather than for what they truly are. It considers whether the political systems that harbor SWFs are able to create a space...

...This chapter focuses on the governance implications of sovereign wealth fund (SWF) investments for recipient firms. Most countries control or restrict cross-border foreign investment, whether it is private or public. To the extent that it is public or an SWF, it is probably subject to a higher...