Anorak | Sovereign Wealth Funds

Sovereign Wealth Funds

by | 24th, December 2007

SOVEREIGN Wealth Funds “An issue rumbling away in the business sections for the past few months, and likely to rumble on in the New Year, are the activities of what are called “sovereign wealth funds,” enormous funds, usually accumulated from government oil revenues and run by countries such as Norway.”

Big money. Foreign money.

“They are now major buyers of assets such as chunks of shares of banks like Citi, the US bank that has taken massive write-downs connected to the US sub-prime mortgage crisis.

“The question that comes up, especially when these funds are run by Middle Eastern governments or the Chinese, is whether their control of large parts of western firms poses some sort of ‘problem’.

“At this stage, I do not see it being a problem. As Sylvia Pfeiffer points out, these funds ultimately want what any intelligent investor wants: maximumum possible returns. I suppose that conspiracy theorists might wonder whether the Chinese, say, will deliberately run their acquisitions into the ground as part of some grand dastardly Blofeld-like plan to take over the world, but this strikes me as a bit unlikely. Perhaps more significant

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Posted: 24th, December 2007 | In: News Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink