Publication Type

Book Chapter

Version

acceptedVersion

Publication Date

6-2011

Abstract

The buzz around sovereign wealth funds has been turned down a notch, but they remain a hot topic. The accusations of sovereign wealth funds having hidden agendas remain, but with the very public losses suffered by some during the recent financial turmoil, such talk has even less credibility. And given that most of those losses were from investments in US, UK, and European financial institutions, hope that sovereign wealth funds would be the saviors of Wall Street has also faded. At its base, four trends continue to keep sovereign wealth funds in focus. First, there is the phenomenal rise of foreign reserves, chiefly among oil-exporting countries as well as some of the current account surplus countries in Asia. Second, there is the relatively recent establishment of large sovereign wealth funds in geopolitically important countries like China and Russia. Third, there are some high-profile investments by foreign government entities in companies in the United States and Europe that are viewed to be of strategic or even national security importance. Lastly, there are the multi-billion dollar investments in some of the world’s leading financial institutions followed by subsequent losses and partial divestment.

Keywords

Sovereign wealth funds, government entities, investments

Discipline

Finance | Finance and Financial Management

Research Areas

Finance

Publication

Sovereign wealth: The role of state capital in the new financial order

Editor

Renée Fry, Warwick J. McKibbin, & Justin O'Brien

First Page

71

Last Page

91

ISBN

9781848164314

Identifier

10.1142/9781848164321_0005

Publisher

Imperial College Press

City or Country

London

Embargo Period

6-10-2020

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1142/9781848164321_0005

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