An Analytical Study of Sovereign Wealth Funds Strategies and Policies A Case Study of China SWF and Implications for India

Abstract

newline Sovereign Wealth Funds are not new kids on the block: they have been around for almost a century, but have recently got global attention. Their sheer size, managing $8011.00 billions, in absolute terms looks (sounds) ominous but in relative terms, compared to other institutional investors like Pension Funds, Mutual Funds, etc., they are mere dwarfs. But the ripples they have (lately again) creating in the See of international investment arena are high and wide. newlineThe study examines the general environment of a unique creed of SWFs and builds and analyses the links to various theories that explain and reason out the genesis, growth and development of SWFs. A systematic literature review points out an underlying relationship among SWFs and various theories like theories of trade, economics, management, etc. The theories are harnessed to explain the role, operations and performance-present and potential, of SWFs. The thesis analytically documents the strategies and policies of SWFs towards various domestic and international issues in general and those of China SWF (China Investment Corporation) in particular. The study documents the investment patterns and performance of CIC, and the factors that affect its performance. After a case study of the CIC and the Government Pension Fund Global (GPFG) of Norway, a case is built to develop (a protype of framework) for a possible structure or model for an Indian SWF. newlineThe thesis makes a significant contribution by identifying the strings of various theories and how they link with the concept and connotations of SWFs.. Moreover, the study identifies different factors and professional demands that determine the success of an SWFs. The study also proposes a model for a possible SWF of India with the due details about its proposed structure, objectives, sources of funds, transparency, etc. newline