IDEAS home Printed from https://ideas.repec.org/p/bdi/opques/qef_156_13.html
   My bibliography  Save this paper

The portfolio allocation strategies of sovereign wealth funds and the financial crisis

Author

Listed:
  • Alessio Ciarlone

    (Bank of Italy)

  • Valeria Miceli

    (Catholic University, Milan)

Abstract

This paper analyzes the investment choices of sovereign wealth funds (SWFs) by country and industry in the last twenty years. Assets under management increased from $500 billion in 1995 to $4.7 trillion at end-2011. Based on a specially constructed data set, comprising 2,740 equity deals concluded by twenty-nine SWFs during the period 1990-2010 ($565 billion worth of acquisitions and $191 billion worth of divestments), we analyze sovereign fund investments by sector and geographical allocation and the impact of the global crisis. The study shows that notwithstanding the crisis the advanced economies are and continue to be the main destination for SWF investments. The sector of choice is the financial one, although since the crisis interest has surged in other sectors such as energy and commodities. Overall, the financial crisis did have an impact on SWF investment activity, although less than that on other important categories of investor.

Suggested Citation

  • Alessio Ciarlone & Valeria Miceli, 2013. "The portfolio allocation strategies of sovereign wealth funds and the financial crisis," Questioni di Economia e Finanza (Occasional Papers) 156, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_156_13
    as

    Download full text from publisher

    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2013-0156/QEF_156.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    sovereign wealth funds; capital flows; institutional investors;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    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:bdi:opques:qef_156_13. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bdigvit.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.