Sovereign Wealth Funds: Aspects of Governance Structures and Investment Management
IMF Working Papers, November 11, 2013
Source details
- Canonical URL
- Sovereign Wealth Funds: Aspects of Governance Structures and Investment Management
Other formats
Bibliographic details
- Authors: Abdullah Alhassan, Michael G. Papaioannou, Martin Skancke, Cheng Chih Sung
- Published: November 11, 2013
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475518610.001
Overview
- Presents a systematic (normative) treatment of salient features of a SWF‘s governance structure in relation to its objectives and investment management.
- Aims to identify governance and investment-management arrangements that ensure efficient operation and enhance financial performance.
- Emphasizes links between governance, investment policy, risk tolerance, accountability, and macroeconomic coordination.
Governance structures and institutional roles
- Distinguishes among various governing bodies involved in SWF oversight and management.
- Highlights the need for clear assignment of roles and responsibilities to ensure consistent decision-making and accountability.
- Stresses that governance arrangements should be aligned with the SWF‘s objectives and the mandates of owners, managers, and overseers.
Investment policy and risk tolerance
- Analyzes key aspects of investment policy design, including asset allocation and asset class considerations.
- Discusses setting the risk tolerance level to ensure consistent risk-bearing capacity across the SWF.
- Argues that a well-defined risk tolerance enhances accountability and supports improved financial performance.
- Notes operational risk and risk management as central elements of investment-management arrangements.
Macroeconomic role and coordination
- Discusses the important role of SWFs in macroeconomic management.
- Emphasizes the need for close coordination between SWF policies and other macroeconomic and financial policies.
- Highlights the role of SWFs in contributing to global financial stability when their policies are consistent with macroeconomic objectives.
Key themes and subject areas covered
- Asset allocation; Asset and liability management; Asset management.
- Financial institutions; Financial regulation and supervision.
- Legal support in revenue administration; Mutual funds.
- Operational risk; Revenue administration.
- Keywords explicitly used: Asset allocation, asset class, Asset management, assets of the SWF, Global, governance structure, investment management, Legal support in revenue administration, macroeconomic coordination, Mutual funds, Operational risk, risk management, sovereign wealth funds, stabilization SWF, SWF asset, SWF assets, SWF funding, SWF manager, SWF objective, SWF owner, SWF risk, SWFS perception, WP.
Publication and document identifiers (as provided)
- Authors: Abdullah Alhassan, Michael G. Papaioannou, Martin Skancke, Cheng Chih Sung
- Publication date: November 11, 2013
- Series: Working Paper No. 2013/231
- Issue: 231
- Volume: 2013
- Pages: 34
- DOI: https://doi.org/10.5089/9781475518610.001
- ISBN: 9781475518610
- ISSN: 1018-5941
Sovereign Wealth Funds: Aspects of Governance Structures and Investment Management, IMF Working Paper No. 2013/231 (November 11, 2013).
Content in this bundle
- PDP-Working Paper