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Sovereign Wealth Funds and Long-Term Investing$
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Joseph Stiglitz, Patrick Bolton, and Frederic Samama

Print publication date: 2011

Print ISBN-13: 9780231158633

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231158633.001.0001

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PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 19 October 2019

Building Long-Term Strategies for Investment of Sovereign Wealth

Building Long-Term Strategies for Investment of Sovereign Wealth

(p.135) Building Long-Term Strategies for Investment of Sovereign Wealth
Sovereign Wealth Funds and Long-Term Investing

Martin Skancke

Columbia University Press

This chapter discusses the importance of integrating sovereign wealth funds (SWFs) with macroeconomic policies, based on the experience of Norway. Underlying Norway's SWF investment strategy is a belief in a high level of financial market efficiency, from which it logically follows that the pursuit of adequate risk-adjusted short-run returns is consistent with long-run wealth preservation. The main question then for Norway's fund is which systematic risks it is willing to be exposed to and to what extent. Still, as a large equity-holder in many corporations with otherwise dispersed ownership, Norway is in a different position from other shareholders and may find it worthwhile to make a long-term investment in the form of monitoring of management and shareholder activism.

Keywords:   sovereign wealth funds, SWF, macroeconomic policy, Norway, risk management, investment strategy, long-term investment

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