More attention needs to be paid by the investment community to the impact sovereign wealth funds have on global equity values, currencies, inflation and capital markets in general, according to a State Street Corp. report issued today.
“While political issues relating to sovereign wealth funds have dominated the discussion, less attention has been paid to the actual nature of SWFs — their liabilities, their differing investment objectives and their likely impact on capital markets,” Jay Hooley, president and COO, said in a news release.
SWFs, with nearly $3 trillion in worldwide assets, are increasingly important to worldwide investors, and issues of accountability, transparency and the appropriateness of government control over investment decision-making are important concerns that need to be addressed, according to the report.
SSgA, through its official institutions group, manages more than $270 billion in assets for more than 70 sovereign wealth and supranational funds. SSgA is State Street Corp.’s investment management business.
The report is written by George R. Hoguet, SSgA managing director, senior portfolio manager and global investment strategist specializing in emerging markets; John Nugee, managing director, SSgA, and head of SSgA’s official institutions group; and Andrew Rozanov, head of sovereign advisory and managing director of State Street Global Markets.
The report is part of State Street Corp.’s Vision Series, which is intended to advance understanding of key themes and trends within the financial services industry.
