SWFs Need to Revisit Objectives During Coronacrisis

SWFs Need to Revisit Objectives During Coronacrisis

I hold the view that nations that have already set up a Sovereign Wealth Fund (SWF) now ought to revisit every aspect – the mandate, mission statement: the very objectives of the Fund, the institutional and legal framework, the way it should manage and monitor the investment process going forward, investment guidelines that may no longer serve well, risk management/ benchmarks, the governance framework, the optimal mix between internal and external managers as well as myriad of issues including evaluation and performance assessment. Recent huge losses suffered may itself generate a public debate on topics of investment of “excess” reserves, the level of future risk and more important spill-over implication for macro-economic policies.

I believe that the more transparent and the more professional they are, the more open will be capital markets and their own citizens to their activities. We present a visual by way of catalyzing conversation.

revisit objectives during coronacrisis

Author: Sameer_Jain

Partner. Sameer Jain is founder of FinTech ActiveAllocator.com, the world’s first portal that seamlessly integrates traditional, illiquid and alternative investments within portfolios. Prior to this he was Chief Economist & Managing Director at AR Capital. Before that he headed Investment Content & Strategy at UBS Alternative Investments. At UBS, he served as a non-voting member of the Wealth Management Research investment committee, and as a capital allocator was responsible for all illiquid investing including fund manager selection and due diligence across the platform. Prior to UBS he headed product development & investment research at Citigroup Alternative Investments that managed over $75 billion of alternative investments across hedge funds, managed futures, private equity, credit structures, infrastructure and real estate. Here he led a team that developed proprietary models for portfolio strategy and asset allocation with alternative investments, provided investment support and research to pension plans, sovereign wealth funds, endowments as well as internal clients including Citi Private Bank. Before this he was with Cambridge Alternative Investments and SunGard (System Access) where he travelled to over 80 countries for work across Europe, Asia, Middle-East and Africa. He has written over 30 academic and practitioner articles on alternative investments with thousands of downloads at SSRN, presented at over a hundred industry conferences and has coauthored a book, Active Equity Management. Mr. Jain has multiple degrees in engineering, management, public administration and policy and is a graduate of Massachusetts Institute of Technology and Harvard University. He is a recipient of the Alfred Sloan Fellowship and subsequently was a Fellow of Public Policy and Management at the Harvard Kennedy School of Government for a year. He holds Series 7 and 66 securities licenses.

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