Index

9/11 109 Amendment to the Capital Accord to Incorporate Market Risks 122 Aabar 92 American Funds EuroPacific Growth 12 absorption capacity 21–4 American Mutual Funds 12 Abu Dhabi 7, 92, 93 American Securities and Exchange ‘The Abu Dhabi Economic Vision 2030’ Commission 11 102 Amsterdam Treaty 184 Abu Dhabi Finance Department 161 Angola 42, 52, 146 Abu Dhabi Investment Authority (ADIA) Angola mode 146 3 and note, 10, 38–9, 71, 80, 82, 85, Antti, I. 55n 89, 91, 95, 140, 162 Apax Partners LLP 11 Abu Dhabi Investment Corporation Arab Spring (2011) 67, 88 (ADIC) 71, 88, 149 Arabian Gulf 3 ADIA see Abu Dhabi Investment Aramco 9 Authority Areva 93 ADIC see Abu Dhabi Investment Argentina 47, 107 Corporation Asean Free Trade Pact 131 AES Corporation 92 Asia 4, 14, 21, 31, 41, 48, 61, 75, 82, Afghanistan 140 86, 88, 90, 93, 101, 126, 133, 137, Africa 42, 52, 101, 141, 145–7 140–1 Africa, Latin America and Caribbean Asian crisis (1990s) 18, 47, 107n Fund 89 Asian Development Bank 169 African Development Bank 169 Asian Tigers 175 Agricultural BankCOPYRIGHTED of China 140 asset managers MATERIAL 81, 107, 121–4 Al Jasser, Muhammad S. 162 asset price/valuation 116, 121 Al Maktoum, Sheikh Mohammed bin (AUM) 2, 4, Rashid 8 12, 29, 38, 42, 67, 68–9, 75, 81, Al Nehayan, Sheikh Ahmed Bin Zayed 10 85n, 165 Al-Sa’ad, Bader Mohammad 161, 168 AUM see assets under management Alaska Permanent Fund 57, 95 Australia 3, 4, 21, 41, 43, 56, 57, 101, Alberta’s Heritage Fund 57 144, 157, 175 Algeria 92 Australian Future Fund 41–2, 57, 80, 97, alternative asset management 10, 11, 90 98, 167 200 Index

Austria 170 BTG Pactual 88 Austvik, O.G. 85 Avendaño, R. 11, 167n CADF see China-Africa Development Fund Bachelier, Luis 112n Caisse De Depôts et Consignations Baltic states 101, 107 (CDC) 158, 170 Banco Santander Brazil 88 California Public Employees Retirement Bank of America 110 System (CalPERS) 2n, 6, 12, 19, Bank of Japan 47 37, 42n banking sector see financial sector CalPERS see California Public Barings Bank 120 Employees Retirement System Barnett, S. 28 Canada 3, 8, 21, 56, 57, 93, 143–4, 163 Barroso, Manuel 160 Carlyle 12 Barwa 9 Caruana, Jamie 161 Basel 2 Cassa Depositi e Prestiti 170 micro vs macro level 114 Castelli, M. 102n, 139 reliance on market prices 115 CDC see Caisse De Depôts et reliance on quantitative models 114 Consignations reliance on ratings agencies 115–17 Central Bank of the Russian Federation summary of 117–18 98 Basel 3 180 Central Huijin Investments 41 Basle Committee on Banking CFIUS see Committee on Foreign Supervision 122 Investment in the United States Bear Sterns 106, 109 (CFIUS) Beck, R. 12 Chaos Theory 113 Behrendt, S. 102 Chesapeake Energy 144 Beijing Summit (2006) 146 Chevron 5 benchmarking 94 Chile 3, 4, 46n, 98, 149 Bergsten, C.F. 185n Chilean Social and Economic Berkelaar, A.B. 73 Stabilization Fund (ESSF) 75, 94, Bernanke, Ben 20–1 98 BHP 157 China 88 The Big Picture blog 8 access to energy sources 143–5 bird-in-hand hypothesis 28, 29 build-up of foreign assets 21 Bjerkholt, O. 28 cross-border trade 150–1 Black Friday (1987) 113 current account surplus 48, 52, 56, 149 Black Swans 113 development strategy 177 BlackRock 11, 12 direct financial deals 149 Blackstone 11, 90, 157, 159 economic growth 4, 6, 24, 109, 127, Bloomberg 83n 132–3 Bodie, Z. 99 effect of globalization on 17 Botswana 3, 163 energy/commodity resources 93, Brazil 17, 43, 52, 56, 57, 88, 92, 127, 102–3 131, 137, 149, 175 financial markets 92, 184 and note Bremmer, I. 156 foreign currency reserves 151–2, 182 Bretton Woods system 20, 182 FX reserves 42 and note, 46, 61, 72 Briere, M. 99 and note British Petroleum 3 GDP calculation 137 Index 201

as holder of US paper 150, 151 contagion effect 109–10, 127 increased trade agreements 140–1 core and satellite investment approach 85 influence through financial muscle corporate governance 129–30 141–5 and notes counterparty risk 109–10 investment in Africa 145–7 current account surplus 18–21, 37, 43, joins WTO 131, 176 48, 52, 54, 56, 61, 67, 136, 148–9, as manufacturing powerhouse 131 173–5 as net exporter 20 state capitalism in 156 Daimler 3, 92 SWF activity 3, 40, 41, 42 and note, Danielsson, J. 118n 67, 165, 167 Das, U.S. 1 urbanization of 31 Datamonitor 83n China Investment Corporation (CIC) 3, Datastream 83n 8, 11, 39, 41, 72, 74, 82, 83, 85, 86, Davis, J.M. 23 88, 89, 92–3, 95, 100, 102, 143–4, Dealogic 12 149, 151–2, 163, 168, 186 demographics 4, 31, 35, 80, 100, 101, China National Offshore Oil Corp 121, 124, 133, 134–5, 175–6, 180 (CNOOC Ltd) 5 and note, 9, 144 Deng Xiaoping 137 China-Africa Development Fund Deutsche Bank 147 (CADF) 146 Dexia 110 Chinalco 140 direct investments 82–3 and note, 85–6, Chinese ‘National Medium and Long- 88, 95, 97, 181n Term Plan for the development of diversified investments 92, 95 Science and Technology’ 103 Doha 92 Chinese Reminbi (RMB) 150–2, 181 drivers of growth 43–5 CIC see China Investment Corporation Dubai 8, 35, 88, 89 CITIC 186 Dubai International Capital 8 Citigroup 85n, 90, 91, 110 Dubai International Financial Center 157 Clinton, Hillary 6 Dubai Port World 5 and note, 5, 9, 140, Club of Rome 32 157, 159, 161 CNOOC Ltd see China National Duncan, Dwight 8–9 Offshore Oil Corp dysfunctional governance 22–3 cobweb model (or theorem) 32–3 Colombia 149 East Europe 131, 169 Committee on Foreign Investment in the East Timor 4, 57 United States (CFIUS) 5, 157, 158, ECB see European Central Bank 161 The Economist 7, 75, 90, 133, 142 and commodity market 39–40, 43, 52, 65, note 174 Eichengreen, B. 137 bubble in 30-1 El Erian, M. 17, 110n commodities demand 29–33 Electricité De France 170 commodity- vs non-commodity- emerging economies 17–18, 27, 43, 47, exporting countries 47–9 86–7 exporting countries 71–3 Africa as last investment frontier financialization of 30 145–7 speculation 30, 31 current account surplus in 173–4 super-cycle in 31-2, 34 developing multipolar financial ConocoPhillips Co. 144 architecture 148–9 202 Index emerging economies (continued) nature of risk 111–13 shift in international finance towards in retrospect 108–11 132–7 risk management and 121–7, 129–30 energy sector 92, 93, 140 financial sector Chinese investment in 143–5 aggregate national savings 19 gas industry 32, 34, 42, 52 banking sector 90–1, 97, 99, 106, 107 mining industry 92–3 and note, 113–18, 152, 155, 169–70 oil industry 2–3, 4, 9, 21, 22, 25, 27, capital flows 17, 45, 46, 108, 152, 164, 32, 34-5, 39–40, 52, 56, 71, 86, 93, 175 133, 140, 146, 174 capital scarcity 179–80 public vs private 170 central banks 19–20, 74, 96, 98, 99, ENI 9, 86 163, 174, 179 Enrich, D. 7 China’s influence on 141–5 Enron 119 debt burden 137, 182 and note equity derivatives 86 dominance of US$ 149–52 Esteves, Andre 149 emerging multipolar architecture Euronext 21 147–9, 174 Europe 48, 75, 101, 110, 136 end of savings gluts 179–80 European Bank for Reconstruction and government activism in 168–71, 176–7 Development 169 hub and spike system 148 European Central Bank (ECB) 8, 47, insurance funds 42 109, 184 leverage 117 European Commission 160, 169 long-term investments 99–103 European Council 107n long-term yearly return 94 European Financial Stability Fund mutual funds 42 (EFSF) 107n new regulatory environment 152–3 European Investment Bank 169 pension funds 42 European Union 160–1, 169 Post Services 170 Exchange Fund 94 reciprocity principle 8-9 explicit liabilities 97–8 regulation 113–18 ring-fencing revenues 23 factor-based allocation strategy 125 shadow banking 106–7, 110 Fannie Mae 6, 110 shift towards emerging economies Far East 131 132–7 fat tails 113 speculative funds 106 FDI see Foreign Direct Investment Stock Exchanges 8, 21, 141, 148, 157, FDIC 8 180 FIAT 3 structured products 86 Fidora, M. 12 towards multicurrency regime 180–5 financial crisis (2008–2009) 4–5, 6, 12, 96 17, 20n, 21, 35, 86, 88, 90–1, 95, war for capital 152–3 96, 148, 152, 155, 184 web system 148–9 banking regulation 113–18 Western dominance 136 development of 105–8 windfall revenues 23 evolution of regulatory framework financial services industry 89–92 118–21 Financial Stability Oversight Council impact of 94–7 120 magnitude and spread 111 Financial Times 155, 169, 181 Index 203

Fisher, I. 114n GCC see Gulf Cooperation Council Fondazione Enrico Mattei 89 GDF Suez 92, 144 Food for Oil Programme 28 General Agreement on Tariffs and Trade foreign asset accumulation 18–21 (GATT) 131 rationale 21–4 General Growth Properties (USA) 89 Foreign Direct Investment (FDI) 61, 133, Generally Accepted Principles and 136, 140, 141–2 Practices (GAPP) 161, 163–5 foreign exchange (FX) 41 Germany 20, 109, 157–8, 169–70 foreign exchange reserves 54 GIC see Government of Singapore allocated to government securities 44 Investment Company Chinese 141, 144–5, 151–2 Gilbert Islands 2n concentration of 42n Glencore 148 currency diversification 137 Global Development Horizons report diversification of 44–5, 180–1 (2011) 132–3 forecast levels 54–6, 57, 61, 65 globalization 14, 175–6 future growth in 47–9 Africa as last investment frontier held by emerging economies 136 145–7 investment in global markets 71 asset managers’ clusters 74–81 optimal level 45–7 and notes beneficiaries of 17–18 preparedness in reacting to shocks 174 China’s influence through financial rising 42, 43–4 muscle 141–5 sources 71–3 debt burden 137 Foreign Investment and National developing/emerging economies Security Act (US, 2007) 157 132–6 Fortescue 144 dominance of US$ in financial markets Fortis 110 149–52 Foster, V. 145 financial aspects 136–7 France 158, 161 financial crisis and 107 France Strategic Investment Fund 57 legal aspects 131 Freddie Mac 6, 110 locational shifts 131 Free Trade Agreements 131, 140–1, new regulatory environment 152–3 158–9 process of 17, 131, 155 Freedom of Investments, National re-shaping of financial geography Security and Strategic Industries 147–9 159 and note, 160 regional trade agreements 131 frontier markets 88–9 shift to the East 137–41 Fundamentals of a Code of Conduct for socio-economic investment institutions Credit Rating Agencies 119 82–3 Future Wealth Funds (FWFs) 9–10, 24, strategic investors in 83–6 71–3, 95, 118, 121, 149, 174, 179 synchronization of economic cycles FWF see Future Wealth Funds 127 FX see foreign exchange technological innovations 131 Glos, Michael 158 GAPP see Generally Accepted Principles Goldman Sachs 110 and Practices Goodhart, C. 115 GATT see General Agreement on Tariffs Government of Singapore Investment and Trade Company (GIC) 40, 82, 83, 85, 88, Gazprom 9 89, 90, 93, 95, 123, 124n, 149, 162 204 Index

GPFG see Norwegian Government Indonesia Government Investment Unit Global 57 Great Depression 25, 182n Infosys Technologies 140 Great Recession (2008) 14, 18, 24, 47, initial public offering (IPO) 88, 148 48, 88, 90, 92, 126, 141, 155–6 Institute of International Finance 21 Greece 171, 175 Inter-American Development Bank 169 Greenspan, Alan 46n International Bank for Reconstruction Growth Fund of America 12 and Development (IBRD) 169 Gruenig, B. 162 International Finance Corporation (IFC) Guidotti, Pablo 46n 89, 169 Guidotti-Greenspan rule 46 International Forum of Sovereign Wealth Gulf Bank 99 Funds (IFSWF) 99–100, 123, 167–8 Gulf Cooperation Council (GCC) 22, International Monetary and Financial 140–1 Committee (IMFC) 163 International Monetary Fund (IMF) 7, 14, 18, 23, 38, 48, 52, 56, 65, 94, Haberly, D. 144 106n, 109, 137, 159, 161, 162, 179, Hamad al Sawaidi 161 185 Handelsblatt 10 International Organization of Securities hedge funds 42, 86, 95, 106, 186 Commissions (IOSCO) 119 herd behaviour 117 and note International Petroleum Investment high growth economies 131–2 Company 92 HKMA see Hong Kong Monetary International Working Group (IWG) 38, Authority 94, 161, 162 HKMA Exchange Fund 75 Investment Corporation of Dubai 39 Hong Kong 40, 52, 67, 74, 101, 148, 186 Investment Holding Companies 82–3, Hong Kong Exchange Fund 41, 74n 83, 95, 96, 98, 100 Hong Kong Monetary Authority investment performance 94–7 (HKMA) 41, 94 IOSCO see International Organization of Hotelling, H. 25 Securities Commissions Hotelling’s Rule 25–7 IPO see initial public offering Hua Mei (China-US) 42 Iran 3, 6, 27, 57, 88, 140 Hua Ou (China-Europe) 42 Iraq 27-8, 52, 88, 126 Hypo Real Estate 110 Ireland 4, 43 Irish National Pension Reserve Fund Iceland 107, 110, 158 (NPRF) 80, 97, 98 IFC see International Finance Irwin, S.H. 30 Corporation Israel 42, 52 IFSWF see International Forum of Istithmar 146 Sovereign Wealth Funds Italian Strategic Fund 57 IMF World Economic Outlook 22 Italy 155, 158, 170 IMFC see International Monetary and Ivory Coast 126 Financial Committee IWG see International Working Group implicit liabilities 98–9 income tax 34–6 Jadresic, E. 46n India 17, 31, 41, 88, 102, 103, 127, 137, Japan 21, 35, 41, 48, 88, 100, 101, 109, 140, 146, 175 111, 136, 140, 144, 148, 149, 155, Indonesia 57, 88, 101 184 Index 205

Japanese Post Bank 170 Liqun, Jin 167–8 J.C. Flowers 11, 90 LNG 93 Jeanne, O. 46 Long Term Capital Management (LTCM) Johnson, Simon 106n 107 Jonathan, Goodluck 23 Lowery, Clay 159, 161, 162 JSM Indochina Property Fund 140 LTCM see Long Term Capital Management Kaldor, N. 32 Lyan, H. 145 Kazakhstan 43, 99, 141 Kern, S. 158 Macao 41 Keynes, J.M. 169 Machlup, Fritz 47 KfW 170 McKinsey Global Institute 42, 103, 120, Khazakhstan National Oil Fund 75 137, 141, 147, 152, 180 Khazanah Nasional 72, 74, 82, 95 Magnus, G. 114n, 139 KIA see Kuwai Investment Authority Malaysia 67, 72, 82, 88, 101 KIC see Korea Investment Corporation Malaysian Sarawak Corridor project 140 Kindleberger, C. 114n, 182n Mandelbrot, Benoit 112 Kiribati (formerly Gilbert Islands) 2n, 57 Marrakech Agreement (1995) 131 Knight, Frank 112 Masdar City 93, 102 and note Knight, M. 20n Mateos y Lagos, I. 185n Kondratiev, N.D. 31, 32 Mauritania 4, 43 Kondratiev waves 31 Mauritania National Fund for Korea Investment Corporation (KIC) Hydrocarbon Reserves 57 67, 72 Mauritius 146 Krynska, U. 174 MENASA see Middle East, North Africa Kudrin, Aleksey 162 and South Asia Kuwait 2n–3n, 22, 39, 52, 65, 67, 71n, Mercosur 131 163 Merrill Lynch 90, 91, 110 Kuwait Investment Authority (KIA) 3, 3 Mexican crisis (1994) 18, 107 and note, 61, 80, 82, 85, 89, 90, 93, Mexico 43, 46n, 56, 57, 149 98–9, 99, 140, 141, 161, 168 Miao, Y. 145 Miceli, V. 1 Lactalis 158 Middle East 4, 14, 25, 42, 90, 95, 102, LAFICO see Libyan Arab Foreign 140, 161 Investment Company Middle East Development Bank 169 Latin America 88, 101, 131, 149, 184 Middle East, North Africa and South Lehman Brothers 105, 106, 110, 111, Asia (MENASA) region 88, 135–6 169, 178 Ministry of Finance Chile 94 LIA see Libyan Investment Authority Minsky, H. 114n Libya 3, 6 Mitterand, François 3 Libya-Africa Portfolio 146 Mongolia 41 Libyan Arab African Investment Monitor Group 4, 5, 83n, 89, 92, 97, 146 Company 146 Monitor-FEEM database 83 and note Libyan Arab Foreign Investment Monk, A. 125 Company (LAFICO) 3 Morgan Stanley 11, 37, 91, 110 Libyan Investment Authority (LIA) 85, motor vehicle industry 92 86, 89, 146 Mozambique 42, 146 Limited Partners (LP) 186 Mrs Machlup rule 47 206 Index

Mubadala Development Company 39, Norwegian 95, 74, 82, 83, 86, 93, 95, 102, 140 162 multipolar world 147–9, 174, 175–6 NSSF see National Social Security Fund Mundell–Fleming model 20 Munich Re 75 Obama, Barack 6 Murray, David 167 Obstfed, M. 20 OECD see Organization for Economic NAFTA see North American Free Trade Cooperation and Development Agreement Oil Revenue Stabilisation Fund (Mexico) Namibia 42 57 NASDAQ 21 Oil Stabilisation Fund (Iran) 57 National Social Security Fund (NSSF) 41 Oman Investment Fund 71, 80 natural resources Oman Oil 9 absorptive capacity and 23 Oman State General Reserve Fund 71 African 146 OPEC 20, 26 Chinese activity in 141, 145 Organization for Economic Cooperation demand for 2, 18 and Development (OECD) 14, 25, exploitation of 27–8, 33–4 27, 30, 75, 82, 88, 96, 97, 146, 155, Government revenues from 13, 20, 159 and note, 160–1, 179 176 Ortiz, G. 46n increase in use of 29 Ossowski, R. 23, 28 long-term growth forecasts and 100 management 24–9 P&O 5, 157, 161 price forecasts 25n, 26 Pakistan 140 repayment schemes linked to 145–6 Papua New Guinea 3, 41 role of SWFs in 10, 13, 28, 92, 143, Park, D. 1 175 Parmalat 119, 158 Stabilization Funds and 75 Paulson, Henry ‘Hank’ 7, 110, 157, 163 NBIM 95, 102 PEMEX 9 New Capital Accord see Basel 2 PEPI see Private Equity Performance New Mexico State Investment Council 57 Index new power brokers 37 Permanent Income Hypothesis (PIH) 27 New York Times 6 and note, 28, 29 New Zealand 43, 57 Permanent Wyoming Mineral Trust Fund New Zealand Superannuation Fund 57, 80 57 Nigeria 23, 42, 52, 146 Persaud, A. 115 Nigerian Sovereign Investment Authority Peterson Institute for International 42 Economics 178 Nomura 147 Petrobras 9, 88 non-commodity market 40–1, 43, 44, Petrochina 144 52–3, 65, 71–3, 156 Philippines 41, 101 North American Free Trade Agreement PIH see Permanent Income Hypothesis (NAFTA) 131 Poland 131 Norway 24–5, 28, 34–5, 39, 52, 65, 67, Portugal 170 101, 158, 160, 174, 175 PPIP see Public–Private Investment Norwegian Government Pension Fund Program Global (GPFG) 12, 39, 61, 80–1, PPRF see Public Pension Reserve Funds 85, 96, 97, 102 Prada 148 Index 207

Prasad, E.S. 54 complex qualitative nature of 111–13 Prequin 4, 96 crisis in retrospect 108–11 private equity funds 42, 86, 90, 95, 96, evolution of regulatory framework 100, 124n, 157 118–21 Private Equity Performance Index (PEPI) financial crisis and 105–8 96 holistic 187–8 property market see real estate self-regulation 119 Public Pension Reserve Funds (PPRFs) sketches of 121–7 97 unconventional dimension of 129–30 public sector 20 Ritholtz, Barry 8 public vs private role 168–71, 176–7 RMB see Chinese Reminbi Public–Private Investment Program Rogoff, K. 20 (PPIP) 8 Rubenstein, David 12 Purchasing Power Parity (PPP) 137 Russia 3, 6, 9, 22, 23, 39, 44, 65, 67, 71, 92, 93, 111, 127, 131, 140, 158, 175 Qatar 9, 22 and note, 35, 52, 65, 67, 163, Russian Federal Law on Foreign 177 Investment (2008) 158 Qatar Diar 9, 146 Russian National Pension System 40 Qatar Holding 88 Russian National Wealth Fund 40, 74, Qatar Investment Authority (QIA) 9, 82, 80, 98–9 85, 88, 89, 92, 95, 99, 140 Russian Reserve Fund 74, 98 Qatar Telecom International (Qtel) 9 Russian Stabilization Fund 40, 71, 74, 75 QIA see Qatar Investment Authority Rybinski, K. 173 Quadrio Curzio, A. 1 Qualified Foreign Investment Institution SAA see Strategic Asset Allocation (QFII) 141 Sabic 9 SAFE see State Administration of Raffles Medical 140 Foreign Exchange Ranciere, R. 46 SAFE Investment Company 41, 42 ratings agencies 116–17, 119 Sagia 9 real estate 9, 12, 35, 75, 83, 88, 89, 93, Saidi, N. 45 95, 96, 100, 118, 124n, 125, 146 Samruk-Kazyna 99 sub-prime crisis 85n, 86, 89, 90, 107n, Sanabil al-Saudia 39n 110 Sanders, D.R. 30 Reserve Investment Corporations 74, 75, Santiago Principles 7, 15, 161, 163–8, 81, 94, 95 179 Reuters 9, 99 Santiso, J. 11, 88, 167n Revenue Equalization Fund (Kiribati) 57 Sarkozy, Nicolas 6, 158 Rio Tinto 157 Saudi Arabia 9, 28–9, 34–5, 39, 44, 52, risk 65, 67, 71 and note, 74, 140, 156 Black Swan 113 Saudi Arabia Monetary Authority chaos theory 113 (SAMA) 39 and note, 71 deception 122–3 saving funds 75, 80, 81, 82, 83, 95, 98, fat tail 113 100 forms of 111–12 SBI Holdings 88 uncertainty 112–13 Scacciavillani, F. 20n, 45 risk management 14, 89 SDC Platinum 83n banking regulation and 113–18 SDR see Special Drawing Rights 208 Index

Sekine, E. 83 new responsibilities 186–8 Shanghai Cooperation Organization 140 openness and transparency 177–8, Shapoorji 140 185–6 shareholders vs stakeholders 129–30 optimal investment strategy 174 Shinawatra, Thaksin 7 political aspects 5–9, 37, 155–71 Siemens 86 profound changes in 3–4 Silk Routes 14, 137–41 rankings 58–61 Singapore 3, 4, 40, 52, 61, 67, 72, 88, response to international pressure 101, 140, 163, 177 161–3 Sinopec 144 sector distribution 174–5 SOE see State Owned Enterprises shift in economic centre of gravity SOFAZ see State Oil Fund of the 1–2, 174 Republic of Azerbaijan size/clusters of 38–42 South Africa 93, 107 size/growth of 37–67 South Korea 3, 4, 21, 67, 100–1, 131, summary of 15, 173–88 137, 140, 163, 177 transparency/disclosure of information Sovereign Pension Reserve Funds 80–1, concerning 37 81, 98 views on 1 Sovereign Wealth Fund Institute (SWFI) Spain 170 39 Special Drawing Rights (SDR) 185 Sovereign Wealth Funds (SWFs) Stability and Growth pact 184 acceleration of investment activity 4–5 Stabilization Funds 75, 81, 82, 94, 98 analysis of 1 Standard & Poor’s 96 arguments concerning 178–9 Standard Chartered 31 AUM growth over 2011-2016 67 Stanislaw, J. 156 classification of 13–14, 39 State Administration of Foreign clustering 74–5, 80–3 Exchange (SAFE) (China) 41, 72, current size 57 74n, 75 definitions of 9-10, 37, 38–9 State Oil Fund of the Republic of development of 2–3, 13, 18 Azerbaijan (SOFAZ) 75, 85, 88 early example of 2n State Owned Enterprises (SOEs) 9 estimates 37–8 sterilization operations 72 and note flows into (2011–2016) 65–7 Stewardship Code 129 forecast assumptions for 2016 49–53, Stiglitz, J. 185n 54–7, 61–7 Strategic Asset Allocation (SAA) 74, 75, globalization and 14, 71–103, 131–53 83, 94, 96 influence of 37 strategic investments 82–3, 86 international response to growing role in domestic/global markets 83–6 of 159–61 geographical/sector distribution investment profiles 74–83 86–93 key features 38 Strauss-Kahn, D. 185n long-term investing 14 sub-prime crisis see real estate macroeconomic dynamics of 2, 17–35 Subacchi, P. 1, 9 main international initiatives 14–15 Summers, Larry 6 media coverage 3, 4–9 super-cycle theory 29–33 misplaced fears 10–13 Sweden 101 national responses to growing role of SWF see Sovereign Wealth Funds 156–9 SWF Institute 4 Index 209

SWFI see Sovereign Wealth Fund United States 3, 6, 21, 26, 42, 48, 75, Institute 101, 108–11, 136, 137, 144, 150–1, Switzerland 35-6, 158 157, 182 Syncrude Group 144 Unocal Corp 5 urbanization 30–1 Taiwan 4, 101, 131 Uruguay Round 131 Taleb, N. 113n US Federal Reserve 8, 20, 47, 108, 110 Tanzania 42, 146 Tanzi, Callisto 158 Value at Risk (VaR) 14, 122–3, 126, 187 technology 125, 126–7, 131, 136 Vanguard Total Stock Market 12 Teck Resources 11 VaR see Value at Risk Temasek 7, 40, 72, 82, 83, 85, 86, 90, 93, Venables, A.J. 28n 95, 163 Venezuela 6 Tennessee Valley Authority 169 Venture Economics 96 Texas Permanent School Fund 57 Vietnam 43, 88, 131, 177 Thailand 7, 41, 140, 170 Vietnamese State Capital Investment Thatcher, Margaret 3 Corporation 57, 86 Thomson Financial 96 Volkswagen 92 Timor-Leste Petroleum Fund 57, 75, 94 Total 9 Wachovia 110 toxic assets 90, 107, 109, 110 Washington Mutual 110 Triffin, Robin 181 Webb, Jim 157 Trinidad and Tobago 3, 93 WEO see World Economic Outlook triple A rating 105 and note, 115, 116–17, Wikileaks 86, 170 137, 169 World Bank 44, 101, 132, 146, 149–50, Truman, E.M. 1, 165, 166, 178 159, 161, 169 Turkey 101, 131 World Economic Forum 101 World Economic Outlook (WEO) 38, 48, UAE see United Arab Emirates 54, 137 UBS 90, 147, 149 World Trade Organization (WTO) 17, Uganda 42 131, 158, 182 Ukraine 107 Worldcom 119 United Arab Emirates (UAE) 6, 22, 38, 39, 52, 65, 67, 82, 86, 157, 163, Xia Bin 144 174, 175 United Nations 28, 31 Yergin, D. 156