Are Sovereign Wealth Fund Investments Politically Biased? Comparing Mutual and Sovereign Funds
5 Pages Posted: 30 Jan 2010
Date Written: January 1, 2010
Are sovereign wealth funds substantially different in their investment choices from other types of institutional investor? Comparing the holdings of two groups of sovereign and mutual funds, we find few differences. Our study also introduces a new dimension: the political regime in sending and recipient countries. Again, evidence suggests that both sovereign and mutual funds’ investments do not differ when looking at the political profile of targeted countries.
Keywords: sovereign wealth fund, mutual fund, asset allocation, political bias
JEL Classification: F21, G11, G18, O57
Suggested Citation: Suggested Citation