Sovereign Investing and Corporate Governance: Evidence and Policy

ETFsPopular reaction to SWFs has ranged from fears that SWFs are politically-motivated to a belief, noted earlier, that SWFs are ideal investors: patient, passive and deep-pocketed.Academics and thinktanks have produced a number of studies in recent years to test these varied notions.As a general matter, SWFs are, in theory, the quintessential longterm investor.They can and do invest through a wide array of investment vehicles, including hedge funds, private equity funds, direct equity investments, fixed income products, real estate, and infrastructure.19 SWFs tend to invest like other large institutional investors, although some studies have detected political influences on SWF investing, such as home bias; many public pension funds face the same challenge of politicization.Scholars have produced a number of studies in recent years analyzing SWF investment behavior, as well as market responses to investment behavior and the effect of sovereign investment on firm 18.Id. at 1 fig.2.19.For example, Ohio State University recently leased its parking operations to QIC, a "leading provider of dynamic investment solutions for sovereign wealth funds, superannuation funds and other institutional investors."Who Is QIC?, QIC DYNAMIC INV.SOLUTIONS, http://www.qic.com.au/who-is-qic/(last updated Mar.