Sovereign Wealth Funds: Aspects of Governance Structures and Investment Management

35 Pages Posted: 10 Dec 2013

See all articles by Abdullah Al-Hassan

Abdullah Al-Hassan

International Monetary Fund (IMF)

Michael G. Papaioannou

International Monetary Fund (IMF)

Martin Skancke

affiliation not provided to SSRN

Cheng Chih Sung

affiliation not provided to SSRN

Date Written: November 2013

Abstract

This paper presents in a systematic (normative) manner the salient features of a SWF‘s governance structure, in relation to its objectives and investment management that can ensure its efficient operation and enhance its financial performance. In this context, it distinguishes among the various governing bodies and analyzes key aspects of the investment policy and setting of the risk tolerance level in order to ensure consistent risk-bearing capacity and greater accountability. Further, it discusses the important role of SWFs in macroeconomic management and the need for close coordination with other macroeconomic and financial policies as well as their role in global financial stability.

Keywords: Sovereign wealth funds, Asset management, Investment policy, Corporate governance, Transparency, Risk management, governance structure, investment management, macroeconomic coordination, investment strategy, investment strategies, legal framework, credit risk, investment decisions, investment risks, pension funds, risk management process, fiduciary responsibility, market risk, risk aversion, investment fund, risk measure, investment functions, contingent liabilities, accounting standards, investment environment, risk of fraud, commercial banks, investment climate, risk management policies, risk taking, supervisory system

JEL Classification: G11, G15, G23, G32, G34

Suggested Citation

Al-Hassan, Abdullah and Papaioannou, Michael G. and Skancke, Martin and Sung, Cheng, Sovereign Wealth Funds: Aspects of Governance Structures and Investment Management (November 2013). IMF Working Paper No. 13/231, Available at SSRN: https://ssrn.com/abstract=2365868

Abdullah Al-Hassan (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Michael G. Papaioannou

International Monetary Fund (IMF) ( email )

700 19th Street NW
10-115
Washington, DC 20431
United States
001-202-623-7799 (Phone)
001-202-623-7018 (Fax)

Martin Skancke

affiliation not provided to SSRN

No Address Available

Cheng Sung

affiliation not provided to SSRN

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