{"product_id":"the-new-economics-of-sovereign-wealth-funds-isbn-9781119971924","title":"The New Economics of Sovereign Wealth Funds","description":"\u003cb\u003eA complete guide to sovereign wealth funds written by and for industry practitioners\u003c\/b\u003e\u003cbr\u003e \u003cbr\u003e   \u003cp\u003eSovereign wealth funds (SWFs) aren't new, but they are often misunderstood. As they've attracted more attention over the last decade and grown greatly in size, the need for a new and thorough resource on SWFs has never been greater. These funds will only grow more important over the coming years. In this book, expert authors who work in the industry present a comprehensive look at SWFs from the perspective of western investors.\u003c\/p\u003e \u003cp\u003eForeword xi\u003c\/p\u003e \u003cp\u003eList of Tables and Figures xiii\u003c\/p\u003e \u003cp\u003eList of Abbreviations xv\u003c\/p\u003e \u003cp\u003eAcknowledgements xvii\u003c\/p\u003e \u003cp\u003eIntroduction 1\u003c\/p\u003e \u003cp\u003eA few stylized facts 2\u003c\/p\u003e \u003cp\u003eSWFs under the spotlight 4\u003c\/p\u003e \u003cp\u003eDefining SWFs 9\u003c\/p\u003e \u003cp\u003eMisplaced fears 10\u003c\/p\u003e \u003cp\u003eThe plan of the book 13\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 The Macroeconomic Dynamics Behind SWFs 17\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 Persistent current account surpluses translate into accumulation of foreign assets 18\u003c\/p\u003e \u003cp\u003e1.2 Absorption constraints: the rationale for establishing SWFs and FWFs 21\u003c\/p\u003e \u003cp\u003e1.3 The management of natural resources windfall 24\u003c\/p\u003e \u003cp\u003e1.4 Commodities demand and the super‐cycle theory 29\u003c\/p\u003e \u003cp\u003e1.5 SWFs as alternative to an income tax system: what if Norway becomes like Saudi Arabia? 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Size and Growth of SWFs Assets 37\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Size and clusters of SWFs 38\u003c\/p\u003e \u003cp\u003e2.2 Drivers of SWFs asset growth 43\u003c\/p\u003e \u003cp\u003e2.3 The optimal level of foreign exchange reserves 45\u003c\/p\u003e \u003cp\u003e2.4 Future growth in FX reserves: commodity- versus noncommodity-exporting countries 47\u003c\/p\u003e \u003cp\u003e2.5 Size of SWFs by 2016 49\u003c\/p\u003e \u003cp\u003eAppendix: How big could SWFs be by 2016? 54\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 SWFs as Investors in Global Markets 71\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Clustering SWFs by objectives and investment profiles 74\u003c\/p\u003e \u003cp\u003e3.2 SWFs as strategic investors in domestic and global markets 83\u003c\/p\u003e \u003cp\u003e3.3 Geographical and sector distribution of SWF strategic investments: the 2007–2008 surge of investments in Western financials 86\u003c\/p\u003e \u003cp\u003e3.4 Investment performance of SWFs and the impact of the financial crisis 94\u003c\/p\u003e \u003cp\u003e3.5 Explicit and implicit liabilities of SWFs 97\u003c\/p\u003e \u003cp\u003e3.6 Long-term investments: SWFs as the ultimate risk bearers 99\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Risk Management for SWFs 105\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 The crisis in retrospect 108\u003c\/p\u003e \u003cp\u003e4.2 The complex qualitative nature of risk: uncertainty, chaos, black swans and fat tails 111\u003c\/p\u003e \u003cp\u003e4.3 Banking regulation, herd behaviour and contagion 113\u003c\/p\u003e \u003cp\u003e4.4 The evolution of the regulatory framework 118\u003c\/p\u003e \u003cp\u003e4.5 Sketches of risk management for SWFs 121\u003c\/p\u003e \u003cp\u003e4.6 An unconventional dimension of risk management: shareholders vs stakeholders 129\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 SWFs in the Geopolitics of the Twenty-first Century 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 The shift to the East of the global economy: the New Silk Route 137\u003c\/p\u003e \u003cp\u003e5.2 The law of unintended consequences? China’s influence through financial muscle 141\u003c\/p\u003e \u003cp\u003e5.3 SWFs investing in the less developed economies: Africa as the last investment frontier 145\u003c\/p\u003e \u003cp\u003e5.4 The new financial geography: the emerging multipolar financial architecture 147\u003c\/p\u003e \u003cp\u003e5.5 The dominance of the US$ in global financial markets: SWFs as US$ diversifiers 149\u003c\/p\u003e \u003cp\u003e5.6 SWFs and the new regulatory environment for financial institutions: the upcoming ‘war for capital’ 152\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 The Politics of SWFs Engagement 155\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 National responses to the growing role of SWFs 156\u003c\/p\u003e \u003cp\u003e6.2 International response to the growing role of SWFs 159\u003c\/p\u003e \u003cp\u003e6.3 SWFs’ response to international pressure 161\u003c\/p\u003e \u003cp\u003e6.4 Santiago Principles: rationale, implementation and reality 163\u003c\/p\u003e \u003cp\u003e6.5 A digression on public versus private role in the economy 168\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Wrapping Up 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Towards a multipolar world 175\u003c\/p\u003e \u003cp\u003e7.2 Governments’ activism in economic and financial affairs 176\u003c\/p\u003e \u003cp\u003e7.3 Barbarian at the gates or welcome partners? 177\u003c\/p\u003e \u003cp\u003e7.4 The end of the savings gluts and the coming era of capital scarcity 179\u003c\/p\u003e \u003cp\u003e7.5 Towards a multicurrency regime 180\u003c\/p\u003e \u003cp\u003e7.6 A proposal to allay fears over transparency 185\u003c\/p\u003e \u003cp\u003e7.7 The new responsibilities on the global scene 186\u003c\/p\u003e \u003cp\u003eBibliography 189\u003c\/p\u003e \u003cp\u003eIndex 199\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eMASSIMILIANO CASTELLI,\u003c\/b\u003e PhD, is Head of Global Strategy in the department advising central banks and Sovereign Wealth Funds at UBS Global Asset Management. In this role, he analyzes the market trends affecting the investment behaviour of sovereign institutions and works closely with investment specialists in providing investment advice and developing tailored investment solutions for this client segment. Since the political debate surrounding SWFs has appeared on the international policy agenda, he established himself as a global thought leader on the macroeconomic, financial and political trends in sovereign wealth management. He has often been called in by leading institutions and think tanks as an expert on global economic and financial matters, he regularly writes articles and essays on these topics and is often invited as a speaker at international conferences. \u003c\/p\u003e\u003cp\u003eIn his fifteen year long international professional career, he has been Head of Public Policy for UBS in Europe, Middle East and Africa, Senior Economist for the Middle East region at UBS and an economic consultant advising governments and corporates in emerging markets on behalf of international institutions. He holds a PhD in Economics from the University of Rome where he lectured and an MSc in Economics from the University of London. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eFABIO SCACCIAVILLANI,\u003c\/b\u003e a PhD in Economics from the University of Chicago, is the Chief Economist and member of the Investment Committee of the Oman Investment Fund, which manages the Omani government’s oil revenues for the benefit of future generations. In this role, he develops economic forecasts, conducts analyses on global trends, evaluates asset class returns, and contributes to strategic decision-making. He is one of the world’s leading experts on the activity of Sovereign Wealth Funds, their influence on financial markets, and their investment strategies. He has written extensively on the political sensitivities that SWFs stirred in Western countries and the emergence of a multipolar world. \u003c\/p\u003e\u003cp\u003eIn his distinguished career he served as Director of Macroeconomics and Statistics at the Dubai International Financial Centre, Executive Director at Goldman Sachs, Senior Economist and Adviser at the European Central Bank and worked in several departments of the International Monetary Fund. He has an extensive scholarly publication record and is frequently interviewed and quoted on international media.    “Ever since coining the term ‘sovereign wealth funds,’ I have watched with mixed feelings the debate unfolding around them. On the one hand, the growth in size and influence of these funds has been nothing short of spectacular, with tremendously beneficial stabilising effects for the global economy and financial markets. On the other hand, heightened public scrutiny and suspicion in many recipient countries, often inspired by nothing more than deep-seated prejudice and economic nationalism, have not been helpful. There have been precious few books written on the subject and none by financial industry practitioners – until now. Castelli and Scacciavillani have taken on the challenge and made an important contribution with this book.”—\u003cb\u003eAndrew Rozanov, Head of Sovereign Advisory, Permal Group \u0026amp; originator of the term ‘Sovereign Wealth Funds’\u003c\/b\u003e  \u003c\/p\u003e\u003cp\u003e“A seminal work filled with interesting analyses and pinpoint arguments. I believe this book will exhilarate fund managers and academics who want to get an insight into the Sovereign Wealth Funds dynamics. We are encountering the finest Sovereign Wealth Funds book of the decade.”—\u003cb\u003eYoung-Kwon Cho, PhD, Publisher, The Financial News\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e“Sovereign Wealth Funds have evolved into a major influence in global financial markets and their sophistication and professionalism has grown rapidly. This publication sets out very clearly how sovereign wealth funds work and explains their important role not just in traditional fixed income and equity markets but also in alternative asset classes such as infrastructure projects , real estate and private equity.”—\u003cb\u003eRobert Parker, Senior Adviser , Credit Suisse\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e“Castelli and Scacciavillani have razed the conventional and parochial understanding of Sovereign Wealth Funds (SWFs) dominant in the twentieth century. In its place, they offer a compelling argument that SWFs are an epiphenomenon of a secular economic re-balancing and a shift toward a multipolar global economy.”—\u003cb\u003eAngelo Calvello, PhD, CEO, Impact Investment Partners and author of Environmental Alpha: Climate Change and Institutional Investors\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e“The Great Financial Crisis has highlighted the growing importance of SWFs as a stabilizing force in capital markets and as international institutional investors. They are moving away from being purely passive portfolio investors to becoming active, direct investors. They are moving away from traditional investments – no longer ‘safe’ and ‘risk free’ – in advanced economies towards emerging markets, supporting the latter’s increasing economic dominance. In the Middle East, which hosts some of the largest SWFs, their investment focus is turning towards domestic economic development objectives. The New Economics of Sovereign Wealth Fundsby Massimiliano Castelli \u0026amp; Fabio Scacciavillani is well-informed, comprehensive, well written by seasoned economists, who provide an excellent overview of the issues and dispel a variety of myths about SWFs. If you are interested in the changing global economic \u0026amp; financial geography and understanding how investment decisions by SWFs will change global capital flows, this book should be your guide.”—\u003cb\u003eDr Nasser Saidi, Chief Economist – DIFC, Dubai International Financial Centre\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\"This well researched book pours light over usually non-transparent and sometimes mysterious Sovereign Wealth Funds, their investment activities, and their function in an evolving global system.\"—\u003cb\u003eGeorge Magnus, Senior Economic Adviser, UBS\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003e\u003ci\u003eThe New Economics of Sovereign Wealth Funds\u003c\/i\u003e is a one-stop guide to the macroeconomic environment within which Sovereign Wealth Funds operate. The book provides a thorough guide to Sovereign Wealth Funds, covering the drivers of the industry, how it operates and grows, the interest from and in Western markets and the pivotal role that Sovereign Wealth Funds play in the world economy. \u003c\/p\u003e\u003cp\u003eThe activity of Sovereign Wealth Funds has often ignited a political reaction and a protectionist backlash. By going beyond discussions based on misconceptions to analyse state capitalism, this book evaluates the role played by Sovereign Wealth Funds within the dynamics that are reshaping the economic and financial geography in the 21st century. \u003c\/p\u003e\u003cp\u003eThe book argues that the emergence of Sovereign Wealth Funds represents a major element of the secular shift of power from mature Western economies to vibrant emerging markets. It offers an all-encompassing perspective, from a rigorous analysis of the economic and financial drivers of their growth to an accurate description of how these institutions invest for the long-term in global capital markets in the global economy. \u003c\/p\u003e\u003cp\u003eIdentifying the drivers of the growth of Sovereign Wealth Funds, the book discusses commodity prices, macroeconomic imbalances and current account surpluses. The book goes on to analyse Sovereign Wealth Funds in the wider global macroeconomic context and examines their capital allocation across regions, asset classes and currencies. The final chapters identify the challenges of Sovereign Wealth Funds in the new regulatory framework and explore how they are increasingly investing in emerging markets. Finally the book provides an overview on how the Western world is reacting to the growing role of state-controlled investment vehicles and the initiatives by international institutions to find a common ground. \u003c\/p\u003e\u003cp\u003eWritten by two celebrated practitioners working in the industry, \u003ci\u003eThe New Economics of Sovereign Wealth Funds\u003c\/i\u003e presents insights from officials in charge of investing a large pool of assets in global capital markets and includes a preface from John A. Fraser, Chairman \u0026amp; CEO of UBS Global Asset Management and Chairman of the Victorian Funds Management Corporation.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990295920869,"sku":"NP9781119971924","price":115.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119971924.jpg?v=1761787246","url":"https:\/\/k12savings.com\/es\/products\/the-new-economics-of-sovereign-wealth-funds-isbn-9781119971924","provider":"K12savings","version":"1.0","type":"link"}