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Investment Strategies Of Dynamic Rebalancing Of Sovereign Wealth Funds After The Subprime Crisis

Posted on:2014-10-27Degree:MasterType:Thesis
Country:ChinaCandidate:H QianFull Text:PDF
GTID:2269330401972408Subject:National Economics
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In recent years, Sovereign Wealth Funds (denoted as SWFs) rapid growth, become important investors in the international market. The SWFs Institute statistics show that as of February2013, SWFs scale of investment funds around the world is estimated to have reached$5.32trillion. The huge scale caused widespread concern of world governments, institutions and scholars. U.S. real estate bubble burst and the subprime mortgage crisis that swept the world economy as a whole, the global economic situation straight transfer radical, so many investors do more financial industry affected by a large degree. Global sovereign wealth funds are also not spared, and the view from the world the SWFs of investment income in2008, the financial crisis has engulfed SWFs10%or more of the capital in more than half, and in2008about half of SWFs investment income showed a negative. Since the subprime mortgage crisis, China’s sovereign wealth fund investment performance is poor. According to the China Investment Corporation announced the2008-2011Annual Report, known the2008-2011investment yield of-2.1%, respectively,11.7%,11.7%and-4.3%, respectively. Seen its portfolio yields lower, while the volatile.The spread of the subprime mortgage crisis, global economic imbalances has become increasingly prominent, the global economy put on the agenda by the imbalance in the development strategy of the direction of "rebalancing". In order to change the world economy growing economic imbalances, the Western developed countries led by the U.S., proposed a "re-industrialization","deleveraging" development strategy, and the implementation of the designed to increase savings, expand exports, suppress imports in order to achieve "economic rebalancing" strategy, the pattern of the world economy is changing. So as to cope with the changing global economic environment, investment environment, timely adjustment of foreign investment strategy of China’s sovereign wealth fund, or to find a more suitable investment strategy. To solve China’s SWF investment income is low, and higher risk, the paper gives China’s SWF dynamic rebalancing investment strategy, and rebalancing investment strategy implemented based on the improvement of the investment system recommendations. This article first expounded change the background of the global economic turmoil, rebalancing investment strategy background and positive role to lead our SWF rebalancing the importance and necessity of the investment strategy; After the trends in the global economy "rebalancing" to determine the investment strategy of rebalancing the initial target configuration should reduce the proportion of the configuration of the virtual economy industry, steering the investment entity industry based are reasonable, rational allocation pattern; To fit the changes in the global economic environment, the benefits and risks of the investment, adding the economic cycle and our the SWF investment preferences factors, given the different economic cycle stage of SWF dynamically adjust the rebalancing of the initial target configuration recommendations. Finally, to make some policy recommendations for the improvement of China’s SWF actual investment strategy and investment system, to enhance China’s SWF investment income, reduce investment risk. In this study, to better preserve and increase the value of the nation’s wealth, and the guidance of China’s sovereign wealth fund investment strategy of the industry adjustment has important practical significance.
Keywords/Search Tags:Subprime mortgage crisis, global economy "rebalancing", sovereignwealth funds, dynamic rebalancing
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