Sovereign Wealth Funds as International Institutional Investors 1
Meng Chen
Abstract
Meng Chen
Abstract
This chapter provides a clear definition of Sovereign Wealth Funds (SWFs) that differentiates them from similar institutions. It refines the analysis of SWF behaviour by applying the lens of multinational enterprise theory. A comprehensive survey of the international investment behaviour of SWFs is undertaken, revealing the funds to be largely conservative in their investment policies and non-strategic in investment approaches. Policies towards SWFs are recommended that take account of their particular characteristics but remain neutral with regard to their international investment behaviour.
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This chapter provides a clear definition of Sovereign Wealth Funds (SWFs) that differentiates them from similar institutions. It refines the analysis of SWF behaviour by applying the lens of multinational enterprise theory. A comprehensive survey of the international investment behaviour of SWFs is undertaken, revealing the funds to be largely conservative in their investment policies and non-strategic in investment approaches. Policies towards SWFs are recommended that take account of their particular characteristics but remain neutral with regard to their international investment behaviour.
Key concepts: Sovereign wealth fund, Multinational corporation, Investment (military), Business, Institutional investor, Sovereignty, International investment, Investment strategy