IMF: SWFs Still Important

Ashby Monk

Karen Remo-Listana of Emirates Business 24 reports that the IMF sees a global role for regional SWFs despite significant losses:

“Deteriorating domestic financial conditions have warranted more prominent roles for SWFs in their home countries…At the same time, SWFs in the region continue to pursue profitable investment opportunities abroad in real estate, retail and finance.”

Nonetheless, the article illustrates the inherent tension between a long term, international focus and a SWFs’ domestic stabilization role:

“The crisis has shown that, notwithstanding their long-term focus, SWFs have a domestic stabilisation role with implications for their investment objectives and strategies, IMF said. In times of financial stress in the domestic economy, SWFs’ domestic investments may temporarily deviate from pure profit maximisation to support broader macroeconomic and financial stabilisation objectives, it added.”

This is a subject of considerable interest for me. In fact, it is the subject of a paper Gordon and I just finished writing. Have a look.

0 Responses to “IMF: SWFs Still Important”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




About

This website is a project of Professor Gordon L. Clark and Dr. Ashby Monk of the School of Geography and the Environment at the University of Oxford. Their research on sovereign wealth funds is funded by the Leverhulme Trust and The Rotman International Centre for Pension Management.

RSS Feed

 RSS

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 370 other followers

Latest SWF News

Visitors Since August 2010


%d bloggers like this: