Description

SOVEREIGN WEALTH FUNDBY:ROMIT OSTWALRomit.ost@gmail.co m
WHAT IS S.W.F.
A sovereign wealth fund (SWF) is a state-owned investment fund composed of financial assets such as stocks, bonds, property, precious metals or other financial instruments.
HISTORY OF S.W.F.
The term Sovereign wealth fund was first used in 2005 by Andrew Rozanov in an article entitled, 'Who holds the wealth of nations?' in Central Banking journal. The previous edition of the journal described the shift from traditional reserve management to sovereign wealth management; subsequently the term gained widespread use as the spending power of global officialdom has rocketed upwards.

PURPOSE OF S.W.F.
To settle the budgetary surplus of government
Use as a war chest For example, the Kuwait Investment Authority during the Gulf war managed excess reserves above the level needed for currency reserves
To develop countries
image as a international
finance centre


WHY S.W.F. IS GETTING ATTENTION
Has potential impact on various asset markets.
Some countries worry that foreign investment by SWFs raises national security concerns because the purpose of the investment might be to secure control of strategically-important industries for political rather than financial gain.
Their inadequate transparency is a concern for investors and regulators

LATEST DEVELOPMENTS IN THE WORLD OF S.W.F.
On 5 March 2008, a joint sub-committee of the U.S. House Financial Services Committee held a hearing to discuss the role of ‘Foreign Government Investment in the U.S. Economy and Financial Sector’. The hearing was attended by representatives of the U.S. Department of Treasury, the U.S. Securities and Exchange Commission, the Federal Reserve Board, Norway’s Ministry of Finance, Temasek Holdings and the Canada Pension Plan Investment Board.

SUPER TEN FUNDS
LINABURG-MADUELL TRANSPERENCY INDEX

The Linaburg-Maduell Transparency Index was developed at the Sovereign Wealth Fund Institute by Carl Linaburg and Michael Maduell. The Linaburg-Maduell transparency index is a method of rating transparency in respect to sovereign wealth funds. Pertaining to government-owned investment vehicles, where there have been concerns of unethical agendas, calls have been made to the larger “opaque” or non-transparent funds to show their intentions. As of March 2008, the Government Pension Fund-Global of Norway ranks second among the largest sovereign wealth funds with approximately US$ 380 billion, this fund also ranks among the highest in transparency. 
Point Principles of the Linaburg-Maduell Transparency
+1Fund provides history including reason for creation, origins of wealth, and government ownership structure
+1Fund provides up-to-date independently audited annual reports
+1Fund provides ownership percentage of company holdings, and geographic locations of holdings
+1Fund provides total portfolio market value, returns, and management compensation
+1Fund provides guidelines in reference to ethical standards, investment policies, and enforcer of guidelines
+1Fund provides clear strategies and objectives
+1If applicable, the fund clearly identifies subsidiaries and contact information
+1If applicable, the fund identifies external managers
+1Fund manages its own web site
+1Fund provides main office location address and contact information such as telephone and fax
S.W.F. RANKING

SWF SIZE AND CONCENTRATION BY COUNTRY
DIFFERENCE BETWEEN SWF, SOE, PUBLIC FUND
GLOBAL SWF ACQUISITIONS IN BILLIONS
THAT WAS ALL ABOUT SOVEREIGN WEALTH FUND

THANK YOU !
PREPARED BY
MBA PART 1