Monday, Oct 29, 2007
Role and risks of sovereign wealth funds http://www.thehindubusinessline.com/2007/10/29/stories/2007102950330900.htm
S. Venkitaramanan
The latest issue of Finance & Development, an official publication of the International Monetary Fund, has an authoritative article on the rise of sovereign wealth funds - funds owned by State Governments of countries. It is significant that the IMF has chosen to recognise the issues regarding the role of sovereign wealth funds, modelled on Singapore Government Investment Corporation's experience - mostly formed out of current account surpluses and invested in debt and equity stocks of other countries, mostly richer economies.
The article, authored by Mr Simon Johnson, Counsellor and Director of the IMF's Research Department is a cogent summary of the issues posed by sovereign wealth funds on the global financial scenario. http://www.thehindubusinessline.com/2007/10/29/stories/2007102950330900.htm