Analysis On The Influencing Factors Of Investment Income Of Sovereign Wealth Funds

Sovereign wealth funds for most people,always with a layer of mysterious veil.According to the sovereign wealth funds research institutions statistics,the past few years the global sovereign wealth funds has a huge increase in the total size.Sovereign wealth funds play an important role both in the real economy and in the virtual economy.Its changes in assets and investment in the field of expansion,not only affects a country's economic trends,and even the balance of the world economic situation have an impact.Sovereign wealth Relative to private wealth,its unique source of funds is the state financial arrangements,state-owned capital or foreign exchange reserves.How to manage and manage the national wealth,so that its value-added,is the sovereign wealth fund managers to pursue the goal.China's sovereign wealth fund although the start time later,but ranked in the world before the top.In contrast to other mature sovereign wealth funds,there are still a number of problems,such as inadequate management of the Fund's management model and lack of investment experience.To this end,the author through the study of sovereign wealth fund investment income factors,to seek for China's sovereign wealth fund portfolio strategy to improve China's sovereign wealth fund investment income.This paper first combs the literature,analyzes the current development situation of the sovereign wealth funds,and puts forward the factors that affect the investment income of the sovereign wealth fund.Then,13 sovereign wealth funds are used as the research object,and the empirical analysis of panel regression is carried out.Concluded as follow.First,the sovereign wealth funds investment income by the global stock market macroeconomic situation.Second,the sovereign wealth funds investment income and equity investment accounted for a positive correlation.Third,the impact of investment in emerging markets on the sovereign wealth funds is positive.Fourth,the longer the duration of sovereign wealth funds,the higher the rate of return on investment.Fifth,the size of the sovereign wealth funds assets and investment income was negatively correlated.Based on the above analysis,this paper puts forward some suggestions on the investment management of sovereign wealth fund in China.China's sovereign wealth fund should adhere to the portfolio investment strategy,improve the relevant laws and regulations,improve risk management capabilities.In the global asset portfolio configuration,China's sovereign wealth fund over-concentrated in developed countries.With the rapid development of emerging market economies,I believe that by increasing the share of emerging market investment in order to achieve the effectiveness of asset portfolio diversification of investment risk.