Sovereign Wealth Fund Management And Investment Research

With ever-growing fund sizes and active investing activities, Sovereign WealthFunds (SWFs) are playing a crucial role in global financial system, thus has drawngreater worldwide attention. Most of the SWFs are trying to maintain and add value totheir national assets through investments in global markets as a marketisedinstitutional investor. To achieve this goal, sovereign funds have to first be acceptedby the investees, and then invest in an appropriate way in accordance with their goalsand strategies. However, due to probable underlying political intentions, some SWFscan hardly be approved by host countries, especially western developed economies,and have poor investing performance.As a new SWF founded in2007, China Investment Corporation (CIC) has facedthe two above-mentioned issues. CIC is the first SWF of our country and has hugeamounts of state assests under management. Deficient operations management andpoor investment performance will lead to great loss in state assets and exert badinfluence on possible future incorporation of new SWFs. Therefore, it’s quite urgentand necessary to improve CIC’s international acceptance and investment performance.In this paper, the author chooses three influential and well-performing overseasSWFs as samples, and analyzes their operations management and investment incontrast with those of CIC. Finally, summarize CIC’s deficiency in both aspects andpresent advice for CIC according to the analysis results on overseas experience.