Sovereign Wealth Funds in East Asia
The massive size, rapid growth, and high-profile investments of Sovereign Wealth Funds (SWFs) in the U.S. and elsewhere in 2007 has attracted the attention of the media, politicians, regulators, and academics over the past year. Some of the SWF inv...
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| Format: | Foreign Trade, FDI, and Capital Flows Study |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/06/16528255/sovereign-wealth-funds-swfs-east-asia http://hdl.handle.net/10986/12639 |
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okr-10986-12639 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ACCOUNTING STANDARD ACCOUNTING STANDARDS ALTERNATIVE INVESTMENT ALTERNATIVE INVESTMENTS ASSET CLASS ASSET CLASSES ASSET HOLDING ASSET MANAGEMENT AUDIT COMMITTEE BALANCE SHEET BASIS POINTS BOND BOND INDEX BOND INVESTMENTS BROAD MONEY BUDGET DEFICIT BUDGET DEFICITS BUDGET SURPLUSES CAPITAL INVESTMENT CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CHECKS COMMERCIAL BANKS COMMERCIAL INVESTMENT COMMODITY PRICES CONFLICT OF INTEREST CONFLICTS OF INTEREST CORPORATE GOVERNANCE CURRENCY CURRENCY BOARD CURRENCY BOARD ARRANGEMENTS CURRENCY COMPOSITION CURRENCY CRISIS CURRENCY EARNINGS CURRENCY RISK DEBT DEBT ISSUANCE DEBT OBLIGATIONS DEBT SERVICE DEBT SERVICE PAYMENTS DEVELOPING COUNTRIES DEVELOPMENT FINANCE DIRECT INVESTMENTS DISTRESSED DEBT DIVERSIFIED PORTFOLIO DIVERSIFIED PORTFOLIOS DOMESTIC CURRENCIES DOMESTIC CURRENCY DOMESTIC DEBT DOMESTIC DEBTS ECONOMIC DEVELOPMENT ECONOMIC POLICIES EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET EQUITIES EMERGING MARKETS ENFORCEABILITY EQUITIES EQUITY FUND EQUITY FUNDS EQUITY HOLDINGS EQUITY INDEX EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY MARKETS EQUITY STAKE EXCHANGE FUND EXPORTERS EXTERNAL DEBTS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FIDUCIARY RESPONSIBILITIES FIDUCIARY RESPONSIBILITY FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RISK FINANCIAL STATEMENTS FISCAL POLICIES FISCAL POLICY FIXED INCOME FIXED INTEREST FOREIGN CURRENCIES FOREIGN CURRENCY FOREIGN CURRENCY EXPOSURE FOREIGN EQUITIES FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FUND MANAGEMENT FUND MANAGER FUND MANAGERS GLOBAL DEVELOPMENT FINANCE GLOBAL FINANCIAL STABILITY GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT INVESTMENT GOVERNMENT INVESTMENTS HOLDING HOLDINGS HOME MARKET HOME MARKETS HOST COUNTRY HUMAN RESOURCE HUMAN RESOURCES INCOME STREAMS INFLATION INFLATION INDEXES INFLATION RATE INSTITUTIONAL CAPACITIES INSTITUTIONAL CAPACITY INTEREST PAYMENTS INTERNAL AUDIT INTERNATIONAL DEBT INTERNATIONAL DEBT SECURITIES INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL STANDARDS INVESTING INVESTMENT ACTIVITIES INVESTMENT ASSETS INVESTMENT CORPORATION INVESTMENT CORPORATIONS INVESTMENT DECISIONS INVESTMENT FUND INVESTMENT FUNDS INVESTMENT GUIDELINES INVESTMENT HORIZON INVESTMENT INCOME INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PORTFOLIO INVESTMENT PORTFOLIOS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTMENT VEHICLE INVESTMENT VEHICLES INVESTMENTS IN EQUITIES LABOR STANDARDS LACK OF TRANSPARENCY LEGAL FRAMEWORK LIABILITY LIQUIDITY LOCAL BANKS LOCAL CURRENCY LOCAL MARKET LONG-TERM INVESTMENT MACROECONOMIC MANAGEMENT MACROECONOMIC POLICIES MACROECONOMIC POLICY MARKET CONDITIONS MARKET INDICES MARKET PRACTITIONER MARKET RISK MARKET VALUE MATURITY MONETARY AUTHORITY MONETARY FUND MONETARY POLICIES MONEY MARKETS MORTGAGE NATIONAL SECURITY NON-PERFORMING LOANS OIL PRICE OPERATIONAL INDEPENDENCE PENSION PENSION ASSETS PENSION FUND PENSION FUNDS PORTFOLIO PORTFOLIO INVESTMENT PORTFOLIO MANAGEMENT PRIVATE EQUITY PRODUCTIVE INVESTMENT PUBLIC FINANCES PUBLIC FUNDS PUBLIC MARKETS PUBLIC REGISTRY PURCHASING POWER RATE OF RETURN RATE OF RETURNS REAL ESTATE INVESTMENT REAL ESTATE INVESTMENTS RESERVE RESERVE FUND RESERVE FUNDS RETURN RETURNS RISK MANAGEMENT RISK PROFILE SAVINGS RATE SETTLEMENT SHAREHOLDER SHAREHOLDER VALUE SHAREHOLDERS SHORT-TERM DEBT SHORT-TERM EXTERNAL DEBT STRATEGIC INVESTOR STRATEGIC INVESTORS SUBORDINATED DEBT SUPERVISORY BOARD TAX TAX POLICY TELECOMMUNICATIONS TRANCHE TRANCHES TRANSPARENCY TREASURY TREASURY BONDS TREASURY NOTES TRUST FUND VALUE OF ASSETS WITHDRAWAL WORLD EQUITY |
| spellingShingle |
ACCOUNTING ACCOUNTING STANDARD ACCOUNTING STANDARDS ALTERNATIVE INVESTMENT ALTERNATIVE INVESTMENTS ASSET CLASS ASSET CLASSES ASSET HOLDING ASSET MANAGEMENT AUDIT COMMITTEE BALANCE SHEET BASIS POINTS BOND BOND INDEX BOND INVESTMENTS BROAD MONEY BUDGET DEFICIT BUDGET DEFICITS BUDGET SURPLUSES CAPITAL INVESTMENT CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CHECKS COMMERCIAL BANKS COMMERCIAL INVESTMENT COMMODITY PRICES CONFLICT OF INTEREST CONFLICTS OF INTEREST CORPORATE GOVERNANCE CURRENCY CURRENCY BOARD CURRENCY BOARD ARRANGEMENTS CURRENCY COMPOSITION CURRENCY CRISIS CURRENCY EARNINGS CURRENCY RISK DEBT DEBT ISSUANCE DEBT OBLIGATIONS DEBT SERVICE DEBT SERVICE PAYMENTS DEVELOPING COUNTRIES DEVELOPMENT FINANCE DIRECT INVESTMENTS DISTRESSED DEBT DIVERSIFIED PORTFOLIO DIVERSIFIED PORTFOLIOS DOMESTIC CURRENCIES DOMESTIC CURRENCY DOMESTIC DEBT DOMESTIC DEBTS ECONOMIC DEVELOPMENT ECONOMIC POLICIES EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET EQUITIES EMERGING MARKETS ENFORCEABILITY EQUITIES EQUITY FUND EQUITY FUNDS EQUITY HOLDINGS EQUITY INDEX EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY MARKETS EQUITY STAKE EXCHANGE FUND EXPORTERS EXTERNAL DEBTS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FIDUCIARY RESPONSIBILITIES FIDUCIARY RESPONSIBILITY FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RISK FINANCIAL STATEMENTS FISCAL POLICIES FISCAL POLICY FIXED INCOME FIXED INTEREST FOREIGN CURRENCIES FOREIGN CURRENCY FOREIGN CURRENCY EXPOSURE FOREIGN EQUITIES FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FUND MANAGEMENT FUND MANAGER FUND MANAGERS GLOBAL DEVELOPMENT FINANCE GLOBAL FINANCIAL STABILITY GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT INVESTMENT GOVERNMENT INVESTMENTS HOLDING HOLDINGS HOME MARKET HOME MARKETS HOST COUNTRY HUMAN RESOURCE HUMAN RESOURCES INCOME STREAMS INFLATION INFLATION INDEXES INFLATION RATE INSTITUTIONAL CAPACITIES INSTITUTIONAL CAPACITY INTEREST PAYMENTS INTERNAL AUDIT INTERNATIONAL DEBT INTERNATIONAL DEBT SECURITIES INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL STANDARDS INVESTING INVESTMENT ACTIVITIES INVESTMENT ASSETS INVESTMENT CORPORATION INVESTMENT CORPORATIONS INVESTMENT DECISIONS INVESTMENT FUND INVESTMENT FUNDS INVESTMENT GUIDELINES INVESTMENT HORIZON INVESTMENT INCOME INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PORTFOLIO INVESTMENT PORTFOLIOS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTMENT VEHICLE INVESTMENT VEHICLES INVESTMENTS IN EQUITIES LABOR STANDARDS LACK OF TRANSPARENCY LEGAL FRAMEWORK LIABILITY LIQUIDITY LOCAL BANKS LOCAL CURRENCY LOCAL MARKET LONG-TERM INVESTMENT MACROECONOMIC MANAGEMENT MACROECONOMIC POLICIES MACROECONOMIC POLICY MARKET CONDITIONS MARKET INDICES MARKET PRACTITIONER MARKET RISK MARKET VALUE MATURITY MONETARY AUTHORITY MONETARY FUND MONETARY POLICIES MONEY MARKETS MORTGAGE NATIONAL SECURITY NON-PERFORMING LOANS OIL PRICE OPERATIONAL INDEPENDENCE PENSION PENSION ASSETS PENSION FUND PENSION FUNDS PORTFOLIO PORTFOLIO INVESTMENT PORTFOLIO MANAGEMENT PRIVATE EQUITY PRODUCTIVE INVESTMENT PUBLIC FINANCES PUBLIC FUNDS PUBLIC MARKETS PUBLIC REGISTRY PURCHASING POWER RATE OF RETURN RATE OF RETURNS REAL ESTATE INVESTMENT REAL ESTATE INVESTMENTS RESERVE RESERVE FUND RESERVE FUNDS RETURN RETURNS RISK MANAGEMENT RISK PROFILE SAVINGS RATE SETTLEMENT SHAREHOLDER SHAREHOLDER VALUE SHAREHOLDERS SHORT-TERM DEBT SHORT-TERM EXTERNAL DEBT STRATEGIC INVESTOR STRATEGIC INVESTORS SUBORDINATED DEBT SUPERVISORY BOARD TAX TAX POLICY TELECOMMUNICATIONS TRANCHE TRANCHES TRANSPARENCY TREASURY TREASURY BONDS TREASURY NOTES TRUST FUND VALUE OF ASSETS WITHDRAWAL WORLD EQUITY World Bank Sovereign Wealth Funds in East Asia |
| geographic_facet |
East Asia and Pacific |
| description |
The massive size, rapid growth, and
high-profile investments of Sovereign Wealth Funds (SWFs) in
the U.S. and elsewhere in 2007 has attracted the attention
of the media, politicians, regulators, and academics over
the past year. Some of the SWF investments have been viewed
as market stabilizing, for instance the substantial equity
investments in large U.S. financial institutions that were
recently in financial trouble after the sub-prime mortgage
crisis. However, there is great suspicion from many
political and academic quarters that SWFs are politically
motivated with many SWFs in Asia now at the center of the
storm. Although SWFs have been in existence for many decades
worldwide, most SWFs in the East Asia and Pacific Region
(EAP) are relatively new. The emergence of the SWFs in Asia
is largely a by-product of the strong economic development
at East Asian countries and the attendant accumulation of
foreign exchange reserves, however, there are other types of
SWFs in the region. The Governments have taken a concerted
strategy to enhance the returns on these excess reserves.
The EAP region is an ideal region to take a look at the
issues surrounding SWFs since Asia has the full range of
funds from long-established funds to brand new funds; from
passive portfolio investors to more aggressive strategic
investors; from resource-backed funds to foreign
reserve-backed funds; and, based in the largest, most highly
developed economies to the smallest, poorest economies in
Asia. Therefore, the objective of this report is to document
the status of Sovereign Wealth Funds in the East Asia Region
and to understand the implications of their rapid growth.
Many developing countries have recently shifted a higher
proportion of their foreign currency earnings from official
foreign currency reserves to sovereign wealth funds.
Sovereign wealth funds have an estimated $600 billion in
assets under management in developing countries, dominated
by China ($200 billion held by the Chinese Investment
Corporation and $68 billion held by the Central Huijin
Investment Company) and Russia ($130 billion held in the
Reserve Fund and $33 billion held by the Fund of Future
Generations). It should be noted that this amount is small
relative to the total level of reserves held by developing
countries (estimated at $3.7 trillion at end 2007). |
| format |
Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Sovereign Wealth Funds in East Asia |
| title_short |
Sovereign Wealth Funds in East Asia |
| title_full |
Sovereign Wealth Funds in East Asia |
| title_fullStr |
Sovereign Wealth Funds in East Asia |
| title_full_unstemmed |
Sovereign Wealth Funds in East Asia |
| title_sort |
sovereign wealth funds in east asia |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2008/06/16528255/sovereign-wealth-funds-swfs-east-asia http://hdl.handle.net/10986/12639 |
| _version_ |
1764421909577990144 |
| spelling |
okr-10986-126392021-04-23T14:03:05Z Sovereign Wealth Funds in East Asia World Bank ACCOUNTING ACCOUNTING STANDARD ACCOUNTING STANDARDS ALTERNATIVE INVESTMENT ALTERNATIVE INVESTMENTS ASSET CLASS ASSET CLASSES ASSET HOLDING ASSET MANAGEMENT AUDIT COMMITTEE BALANCE SHEET BASIS POINTS BOND BOND INDEX BOND INVESTMENTS BROAD MONEY BUDGET DEFICIT BUDGET DEFICITS BUDGET SURPLUSES CAPITAL INVESTMENT CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CHECKS COMMERCIAL BANKS COMMERCIAL INVESTMENT COMMODITY PRICES CONFLICT OF INTEREST CONFLICTS OF INTEREST CORPORATE GOVERNANCE CURRENCY CURRENCY BOARD CURRENCY BOARD ARRANGEMENTS CURRENCY COMPOSITION CURRENCY CRISIS CURRENCY EARNINGS CURRENCY RISK DEBT DEBT ISSUANCE DEBT OBLIGATIONS DEBT SERVICE DEBT SERVICE PAYMENTS DEVELOPING COUNTRIES DEVELOPMENT FINANCE DIRECT INVESTMENTS DISTRESSED DEBT DIVERSIFIED PORTFOLIO DIVERSIFIED PORTFOLIOS DOMESTIC CURRENCIES DOMESTIC CURRENCY DOMESTIC DEBT DOMESTIC DEBTS ECONOMIC DEVELOPMENT ECONOMIC POLICIES EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET EQUITIES EMERGING MARKETS ENFORCEABILITY EQUITIES EQUITY FUND EQUITY FUNDS EQUITY HOLDINGS EQUITY INDEX EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY MARKETS EQUITY STAKE EXCHANGE FUND EXPORTERS EXTERNAL DEBTS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FIDUCIARY RESPONSIBILITIES FIDUCIARY RESPONSIBILITY FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RISK FINANCIAL STATEMENTS FISCAL POLICIES FISCAL POLICY FIXED INCOME FIXED INTEREST FOREIGN CURRENCIES FOREIGN CURRENCY FOREIGN CURRENCY EXPOSURE FOREIGN EQUITIES FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FUND MANAGEMENT FUND MANAGER FUND MANAGERS GLOBAL DEVELOPMENT FINANCE GLOBAL FINANCIAL STABILITY GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT INVESTMENT GOVERNMENT INVESTMENTS HOLDING HOLDINGS HOME MARKET HOME MARKETS HOST COUNTRY HUMAN RESOURCE HUMAN RESOURCES INCOME STREAMS INFLATION INFLATION INDEXES INFLATION RATE INSTITUTIONAL CAPACITIES INSTITUTIONAL CAPACITY INTEREST PAYMENTS INTERNAL AUDIT INTERNATIONAL DEBT INTERNATIONAL DEBT SECURITIES INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL STANDARDS INVESTING INVESTMENT ACTIVITIES INVESTMENT ASSETS INVESTMENT CORPORATION INVESTMENT CORPORATIONS INVESTMENT DECISIONS INVESTMENT FUND INVESTMENT FUNDS INVESTMENT GUIDELINES INVESTMENT HORIZON INVESTMENT INCOME INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PORTFOLIO INVESTMENT PORTFOLIOS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTMENT VEHICLE INVESTMENT VEHICLES INVESTMENTS IN EQUITIES LABOR STANDARDS LACK OF TRANSPARENCY LEGAL FRAMEWORK LIABILITY LIQUIDITY LOCAL BANKS LOCAL CURRENCY LOCAL MARKET LONG-TERM INVESTMENT MACROECONOMIC MANAGEMENT MACROECONOMIC POLICIES MACROECONOMIC POLICY MARKET CONDITIONS MARKET INDICES MARKET PRACTITIONER MARKET RISK MARKET VALUE MATURITY MONETARY AUTHORITY MONETARY FUND MONETARY POLICIES MONEY MARKETS MORTGAGE NATIONAL SECURITY NON-PERFORMING LOANS OIL PRICE OPERATIONAL INDEPENDENCE PENSION PENSION ASSETS PENSION FUND PENSION FUNDS PORTFOLIO PORTFOLIO INVESTMENT PORTFOLIO MANAGEMENT PRIVATE EQUITY PRODUCTIVE INVESTMENT PUBLIC FINANCES PUBLIC FUNDS PUBLIC MARKETS PUBLIC REGISTRY PURCHASING POWER RATE OF RETURN RATE OF RETURNS REAL ESTATE INVESTMENT REAL ESTATE INVESTMENTS RESERVE RESERVE FUND RESERVE FUNDS RETURN RETURNS RISK MANAGEMENT RISK PROFILE SAVINGS RATE SETTLEMENT SHAREHOLDER SHAREHOLDER VALUE SHAREHOLDERS SHORT-TERM DEBT SHORT-TERM EXTERNAL DEBT STRATEGIC INVESTOR STRATEGIC INVESTORS SUBORDINATED DEBT SUPERVISORY BOARD TAX TAX POLICY TELECOMMUNICATIONS TRANCHE TRANCHES TRANSPARENCY TREASURY TREASURY BONDS TREASURY NOTES TRUST FUND VALUE OF ASSETS WITHDRAWAL WORLD EQUITY The massive size, rapid growth, and high-profile investments of Sovereign Wealth Funds (SWFs) in the U.S. and elsewhere in 2007 has attracted the attention of the media, politicians, regulators, and academics over the past year. Some of the SWF investments have been viewed as market stabilizing, for instance the substantial equity investments in large U.S. financial institutions that were recently in financial trouble after the sub-prime mortgage crisis. However, there is great suspicion from many political and academic quarters that SWFs are politically motivated with many SWFs in Asia now at the center of the storm. Although SWFs have been in existence for many decades worldwide, most SWFs in the East Asia and Pacific Region (EAP) are relatively new. The emergence of the SWFs in Asia is largely a by-product of the strong economic development at East Asian countries and the attendant accumulation of foreign exchange reserves, however, there are other types of SWFs in the region. The Governments have taken a concerted strategy to enhance the returns on these excess reserves. The EAP region is an ideal region to take a look at the issues surrounding SWFs since Asia has the full range of funds from long-established funds to brand new funds; from passive portfolio investors to more aggressive strategic investors; from resource-backed funds to foreign reserve-backed funds; and, based in the largest, most highly developed economies to the smallest, poorest economies in Asia. Therefore, the objective of this report is to document the status of Sovereign Wealth Funds in the East Asia Region and to understand the implications of their rapid growth. Many developing countries have recently shifted a higher proportion of their foreign currency earnings from official foreign currency reserves to sovereign wealth funds. Sovereign wealth funds have an estimated $600 billion in assets under management in developing countries, dominated by China ($200 billion held by the Chinese Investment Corporation and $68 billion held by the Central Huijin Investment Company) and Russia ($130 billion held in the Reserve Fund and $33 billion held by the Fund of Future Generations). It should be noted that this amount is small relative to the total level of reserves held by developing countries (estimated at $3.7 trillion at end 2007). 2013-03-11T20:54:30Z 2013-03-11T20:54:30Z 2008-06-30 http://documents.worldbank.org/curated/en/2008/06/16528255/sovereign-wealth-funds-swfs-east-asia http://hdl.handle.net/10986/12639 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study Economic & Sector Work East Asia and Pacific |