NEW YORK, Nov. 12, 2023 (GLOBE NEWSWIRE) — Global Policy Advisors has unveiled a report titled “Sovereign Wealth Fund Asset Allocation and Geopolitical Risk.” This report provides an in-depth analysis of the changing strategies of sovereign wealth funds (SWFs) in response to geopolitical instability. It highlights a significant shift towards more conservative investment approaches, with a focus on capital preservation and risk management.
A key finding of the report is the growing dependence of SWFs on external asset managers, particularly hedge funds, to adeptly navigate the complexities of global geopolitical environments. This reliance poses potential challenges through creating a conflict between the financial objectives of SWFs and the geopolitical interests of their home countries.
Salar Ghahramani, founder of Global Policy Advisors, writes on this delicate balance: “As SWFs increasingly engage external hedge funds for their expertise in volatile markets, they may encounter situations where the external funds’ financial strategies are in conflict with their nation’s geopolitical interests.”
Ghahramani further observes, “While there is no direct evidence of SWFs being used to destabilize geopolitical adversaries through market manipulation, especially through sovereign debt, currencies, and commodities, this is a scenario that could garner attention from policymakers and regulators, especially during heightened geopolitical tensions.”
The full report from Global Policy Advisors is exclusively available to Global Policy Advisors® SWF 2050™ clients.
About Global Policy Advisors
Global Policy Advisors® is a consultancy to corporations, boards of directors, and asset managers – serving hedge funds, public pension funds, and sovereign wealth funds (SWFs). GPA provides advisory services in the intersection of law and finance, with a focus on governance, international and regulatory affairs, and public policy insights.
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