IDEAS home Printed from https://ideas.repec.org/a/eut/journl/v21y2017i4p725.html
   My bibliography  Save this article

Patterns and Trends in Sovereign Wealth Fund Investments: A Post-Crisis Descriptive Analysis

Author

Listed:
  • Amin Mohseni Cheraghlou

    (Faculty of Economics, University of Tehran, Tehran, Iran.)

Abstract

Analyzing more than 9,400 investment transactions performed by 32 sovereign wealth funds (SWFs), from 23 countries, and targeted towards 77 countries, between 2010 and 2013, this study highlights some of the most important visible patterns and nuances in SWF investments. First, lion’s share of SWF investments are cross-border transactions that originated from and targeted towards high-income economies, while SWFs from emerging economies (mainly China) are also becoming important players in the global capital markets. Second, the most popular sectors are the financial and the real estate sectors mainly because of their more liquid nature and the energy sector for its strategic importance. Finally, domestic investments are relatively more popular among non-commodity based SWFs in comparison to commodity based SWFs. The results also show that while infrastructure investments are in line with the time horizon of SWF investments and their objectives, only five percent of SWF investments were targeted toward the infrastructure sector.

Suggested Citation

  • Amin Mohseni Cheraghlou, 2017. "Patterns and Trends in Sovereign Wealth Fund Investments: A Post-Crisis Descriptive Analysis," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(4), pages 725-763, Autumn.
    • Handle: RePEc:eut:journl:v:21:y:2017:i:4:p:725
    as

    Download full text from publisher

    File URL: ftp://80.66.179.253/eut/journl/20174-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shai Bernstein & Josh Lerner & Antoinette Schoar, 2013. "The Investment Strategies of Sovereign Wealth Funds," Journal of Economic Perspectives, American Economic Association, vol. 27(2), pages 219-238, Spring.
    2. April Klein & Emanuel Zur, 2009. "Entrepreneurial Shareholder Activism: Hedge Funds and Other Private Investors," Journal of Finance, American Finance Association, vol. 64(1), pages 187-229, February.
    3. Miguel A. Ferreira & Massimo Massa & Pedro Matos, 2010. "Shareholders at the Gate? Institutional Investors and Cross-Border Mergers and Acquisitions," The Review of Financial Studies, Society for Financial Studies, vol. 23(2), pages 601-644, February.
    4. Alon Brav & Wei Jiang & Frank Partnoy & Randall Thomas, 2008. "Hedge Fund Activism, Corporate Governance, and Firm Performance," Journal of Finance, American Finance Association, vol. 63(4), pages 1729-1775, August.
    5. Rossi, Stefano & Volpin, Paolo F., 2004. "Cross-country determinants of mergers and acquisitions," Journal of Financial Economics, Elsevier, vol. 74(2), pages 277-304, November.
    6. Ferreira, Miguel A. & Matos, Pedro, 2008. "The colors of investors' money: The role of institutional investors around the world," Journal of Financial Economics, Elsevier, vol. 88(3), pages 499-533, June.
    7. Nicholas Borst, 2015. "The rise of Asian sovereign wealth funds," Asia Focus, Federal Reserve Bank of San Francisco, issue March.
    8. Iva Petrova & Jukka Pihlman & Mr. Peter J Kunzel & Miss Yinqiu Lu, 2011. "Investment Objectives of Sovereign Wealth Funds: A Shifting Paradigm," IMF Working Papers 2011/019, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liliana Rivera & Norma Ortiz & Gabriel Moreno & Iliana Páez-Gabriunas, 2023. "The Effect of Company Ownership on the Environmental Practices in the Supply Chain: An Empirical Approach," Sustainability, MDPI, vol. 15(16), pages 1-24, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aggarwal, Reena & Erel, Isil & Ferreira, Miguel & Matos, Pedro, 2011. "Does governance travel around the world? Evidence from institutional investors," Journal of Financial Economics, Elsevier, vol. 100(1), pages 154-181, April.
    2. Murtinu, Samuele & Scalera, Vittoria G., 2016. "Sovereign Wealth Funds' Internationalization Strategies: The Use of Investment Vehicles," Journal of International Management, Elsevier, vol. 22(3), pages 249-264.
    3. Kim, Woochan & Sung, Taeyoon & Wei, Shang-Jin, 2017. "The diffusion of corporate governance to emerging markets: Evaluating two dimensions of investor heterogeneity," Journal of International Money and Finance, Elsevier, vol. 70(C), pages 406-432.
    4. Bajo, Emanuele & Barbi, Massimiliano & Bigelli, Marco & Hillier, David, 2013. "The role of institutional investors in public-to-private transactions," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4327-4336.
    5. Boubaker, Sabri & Boubakri, Narjess & Grira, Jocelyn & Guizani, Asma, 2018. "Sovereign wealth funds and equity pricing: Evidence from implied cost of equity of publicly traded targets," Journal of Corporate Finance, Elsevier, vol. 53(C), pages 202-224.
    6. Kotter, Jason & Lel, Ugur, 2011. "Friends or foes? Target selection decisions of sovereign wealth funds and their consequences," Journal of Financial Economics, Elsevier, vol. 101(2), pages 360-381, August.
    7. Paul Brockman & Wolfgang Drobetz & Sadok El Ghoul & Omrane Guedhami & Ying Zheng, 2024. "Do foreign institutional shareholders affect international debt contracting? Evidence from Yankee bond covenants," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(5), pages 551-576, July.
    8. Dasgupta, Amil & Fos, Vyacheslav & Sautner, Zacharias, 2021. "Institutional investors and corporate governance," LSE Research Online Documents on Economics 112114, London School of Economics and Political Science, LSE Library.
    9. Gangi, Francesco & Meles, Antonio & Mustilli, Mario & Graziano, Domenico & Varrone, Nicola, 2019. "Do investment determinants and effects vary across sovereign wealth fund categories? A firm-level analysis," Emerging Markets Review, Elsevier, vol. 38(C), pages 438-457.
    10. Alfonso Del Giudice & Nicoletta Marinelli & Stefania Vitali, 2014. "Sovereign Wealth Funds and Target Firms: Does 'Networking' Matter?," Journal of Financial Management, Markets and Institutions, Società editrice il Mulino, issue 2, pages 185-206, December.
    11. Ciarlone, Alessio & Miceli, Valeria, 2016. "Escaping financial crises? Macro evidence from sovereign wealth funds' investment behaviour," Emerging Markets Review, Elsevier, vol. 27(C), pages 169-196.
    12. Alessio Ciarlone & Valeria Miceli, 2014. "Are Sovereign Wealth Funds contrarian investors?," Temi di discussione (Economic working papers) 972, Bank of Italy, Economic Research and International Relations Area.
    13. Maffett, Mark & Nakhmurina, Anya & Skinner, Douglas J., 2022. "Importing activists: Determinants and consequences of increased cross-border shareholder activism," Journal of Accounting and Economics, Elsevier, vol. 74(2).
    14. Kim, Hugh & Liao, Rose C. & Wang, Yan, 2015. "Active block investors and corporate governance around the world," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 39(C), pages 181-194.
    15. Jing Huang & Steven R. Matsunaga & Z. Jay Wang, 2020. "The Role of Pension Business Benefits in Institutional Block Ownership and Corporate Governance," Contemporary Accounting Research, John Wiley & Sons, vol. 37(4), pages 1959-1989, December.
    16. Elena Karnoukhova & Anastasia Stepanova & Maria Kokoreva, 2018. "The Influence Of The Ownership Structure On The Performance Of Innovative Companies In The Us," HSE Working papers WP BRP 70/FE/2018, National Research University Higher School of Economics.
    17. Tao Li, 2018. "Outsourcing Corporate Governance: Conflicts of Interest Within the Proxy Advisory Industry," Management Science, INFORMS, vol. 64(6), pages 2951-2971, June.
    18. Carlos Pombo & Cristian Pinto-Gutierrez & Mauricio Jara-Betín, 2022. "Multiple large shareholder coalitions, institutional ownership and investment decisions: Evidence from cross-border deals in Latin America," Documentos CEDE 20333, Universidad de los Andes, Facultad de Economía, CEDE.
    19. Elvira Sojli & Wing Wah Tham, 2017. "Foreign political connections," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(2), pages 244-266, February.
    20. Chai, D.H., 2010. "Foreign Corporate Ownership and Dividends," Working Papers wp401, Centre for Business Research, University of Cambridge.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eut:journl:v:21:y:2017:i:4:p:725. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: [z.rahimalipour] (email available below). General contact details of provider: https://edirc.repec.org/data/fecutir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.