Abstract

This case discusses the growth in the number and size of Sovereign Wealth Funds (SWFs) and their increasing influence in the global financial markets in the 2000s. It begins with a brief introduction to the origins of SWFs and their objectives, and then highlights the arguments of their supporters and detractors. The case also discusses the views of policymakers and analysts on regulating SWFs.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the origin and evolution of SWFs
• Assess the positive and the negative impacts of these funds on the global financial market
• Discuss the pros and cons of regulating/restricting their activities.

Keywords

Sovereign Wealth Funds, Global financial markets, Regulation, International lender of last resort, Stabilization funds, Pension reserve funds, Transparency, Investment strategy