Comments on: Sovereign Wealth Fund Records: In for the Long Haul http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/ Sat, 21 Nov 2009 16:40:10 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Steve Selengut http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-133095 Steve Selengut Thu, 09 Jul 2009 21:44:13 +0000 http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-133095 Attend a Workshop on Managing the Equity Portfolio on July 14th or August 18th. Workshop Agenda: a) The equity investment universe; b) The QDI selection rules; c) Using the IGVS "watch list" program; d) Price guidelines for buying stocks; e) Profit taking targets; f) Keeping your eye on the ball--- realized capital gains. Google Kiawah Golf Investment Seminars Attend a Workshop on Managing the Equity Portfolio on July 14th or August 18th.

Workshop Agenda: a) The equity investment universe; b) The QDI selection rules; c) Using the IGVS “watch list” program; d) Price guidelines for buying stocks; e) Profit taking targets; f) Keeping your eye on the ball— realized capital gains.

Google Kiawah Golf Investment Seminars

]]> By: Q&A with Rachel Ziemba, lead analyst for oil exporting economies and China at RGE Monitor. « Oxford International Review http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-112933 Q&A with Rachel Ziemba, lead analyst for oil exporting economies and China at RGE Monitor. « Oxford International Review Thu, 18 Sep 2008 10:47:53 +0000 http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-112933 [...] purchases provided a stream of capital to the U.S. Several reasons might explain their absence-Losses on equity and alternative assets, sufficient exposure to the global financial system and worries that this [...] [...] purchases provided a stream of capital to the U.S. Several reasons might explain their absence-Losses on equity and alternative assets, sufficient exposure to the global financial system and worries that this [...]

]]> By: Brad Setser: Follow the Money » Blog Archive » Growing Sovereign Wealth? http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-111930 Brad Setser: Follow the Money » Blog Archive » Growing Sovereign Wealth? Wed, 27 Aug 2008 06:11:31 +0000 http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-111930 [...] from these two model funds, which represent two ends of the sovereign wealth spectrum give us some clues as to how other, less transparent sovereign investors might be faring in the current market. In [...] [...] from these two model funds, which represent two ends of the sovereign wealth spectrum give us some clues as to how other, less transparent sovereign investors might be faring in the current market. In [...]

]]> By: A. Madhavan http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107999 A. Madhavan Sun, 01 Jun 2008 03:01:00 +0000 http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107999 The oil crisis entails massive transfers of wealth from importing countries to exporters. But this is not a zero sum game, because countries like the US create notional money through credit instruments. SWFs are swollen reservoirs of money which will seep away unless productively invested. They are partly fed by inflows of notional money. The onrush of global liquidity inevitably becomes inflationary, especially for commodities in constant or rising demand and finite supply. We come to an avatar of the long forsaken Quantity Theory of Money. Rayudu The oil crisis entails massive transfers of wealth from importing countries to exporters. But this is not a zero sum game, because countries like the US create notional money through credit instruments. SWFs are swollen reservoirs of money which will seep away unless productively invested. They are partly fed by inflows of notional money. The onrush of global liquidity inevitably becomes inflationary, especially for commodities in constant or rising demand and finite supply. We come to an avatar of the long forsaken Quantity Theory of Money.
Rayudu

]]> By: bsetser http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107936 bsetser Thu, 29 May 2008 20:36:33 +0000 http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107936 tkarol -- I can hardly speak for Rachel, but I do think sov. funds should have a portion (indeed a large portion) of their portfolio tied to benchmarks. It is hard to see how an extremely large fund can consistently beat the market over time. and if funds mimic benchmarks, their impact on capital allocation across firms would be limited -- though obviously their equity/ bond split still has market implications. tkarol — I can hardly speak for Rachel, but I do think sov. funds should have a portion (indeed a large portion) of their portfolio tied to benchmarks. It is hard to see how an extremely large fund can consistently beat the market over time. and if funds mimic benchmarks, their impact on capital allocation across firms would be limited — though obviously their equity/ bond split still has market implications.

]]> By: tkarol http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107935 tkarol Thu, 29 May 2008 19:53:08 +0000 http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107935 Rziemba and Brad: You mentioned Norway under performing the benchmarks - is that true for the other funds as well? Don't - or shouldn't - the sovereign funds have at least part of the portfolio tied directly to benchmarks ? For bot portfolio and political purposes. Rziemba and Brad:
You mentioned Norway under performing the benchmarks – is that true for the other funds as well? Don’t – or shouldn’t – the sovereign funds have at least part of the portfolio tied directly to benchmarks ? For bot portfolio and political purposes.

]]> By: rziemba http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107929 rziemba Thu, 29 May 2008 16:13:32 +0000 http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107929 Brad - thanks for catching the chart error. and yes, given the exposure of the big funds to equity they probably incurred some losses in the last few quarters - perhaps more than Norway, even. Brad – thanks for catching the chart error.
and yes, given the exposure of the big funds to equity they probably incurred some losses in the last few quarters – perhaps more than Norway, even.

]]> By: rziemba http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107928 rziemba Thu, 29 May 2008 15:55:57 +0000 http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107928 Scott- you raise a good point, though one I think that is even more relevant for other countries without as diversified an economy as Norway. Norway is saving funds to avoid too much inflation which stems from a big windfall. Also its conscious that its oil will run out in the not-so-distant future and that it will have large pension liabilities. But Norway is investing in real assets. Alaska does not redistribute all of its oil revenues, just most of them. It too wants to inflation-proof the economy. Giving it to the population is a choice - and one that the Norwegian people could of course opt for. Scott- you raise a good point, though one I think that is even more relevant for other countries without as diversified an economy as Norway. Norway is saving funds to avoid too much inflation which stems from a big windfall.
Also its conscious that its oil will run out in the not-so-distant future and that it will have large pension liabilities. But Norway is investing in real assets.

Alaska does not redistribute all of its oil revenues, just most of them. It too wants to inflation-proof the economy.

Giving it to the population is a choice – and one that the Norwegian people could of course opt for.

]]> By: bsetser http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107925 bsetser Thu, 29 May 2008 13:42:19 +0000 http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107925 Rachel -- I doubt ADIA and KIA avoided tracking the global equity market in q1. Many hedge funds -- especially equity hedge funds -- seem to be rather correlated with the broad market. Investing in equities means accepting some volatility. Consequently, i would expect that big gulf funds performed in a way broadly consistent with Norway's fund. one other thing -- in the NBIM chart, i suspect either bonds or fixed income should be equities .... Rachel — I doubt ADIA and KIA avoided tracking the global equity market in q1. Many hedge funds — especially equity hedge funds — seem to be rather correlated with the broad market. Investing in equities means accepting some volatility. Consequently, i would expect that big gulf funds performed in a way broadly consistent with Norway’s fund.

one other thing — in the NBIM chart, i suspect either bonds or fixed income should be equities ….

]]> By: bsetser http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107924 bsetser Thu, 29 May 2008 11:52:13 +0000 http://blogs.cfr.org/setser/2008/05/28/sovereign-wealth-fund-records-in-for-the-long-haul/#comment-107924 a small administrative note: I gather there has been some difficulty posting comments recently. if you have encountered trouble, please email me at bsetser at cfr dot org and let me know the nature of the problem. thanks. a set of comments clearly got caught up in a pool that was "awaiting moderation" that I wasn't aware of; most have been released and hopefully should appear. I'll also try to respond to the specific issues raised. It isn't at all clear to me why some comments ended up here -- comments from the same person often would otherwise go through. I am looking into it; your help would be appreciated -- and my apologies for any lost comments. a small administrative note: I gather there has been some difficulty posting comments recently. if you have encountered trouble, please email me at bsetser at cfr dot org and let me know the nature of the problem. thanks. a set of comments clearly got caught up in a pool that was “awaiting moderation” that I wasn’t aware of; most have been released and hopefully should appear. I’ll also try to respond to the specific issues raised. It isn’t at all clear to me why some comments ended up here — comments from the same person often would otherwise go through. I am looking into it; your help would be appreciated — and my apologies for any lost comments.

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