SWFs Take Passive Approach In Cross-Border Investment

With Sovereign Wealth Funds (SWFs) regaining their appetites for foreign investments, concerns among national governments have begun heightening once again over the political agenda and limited transparency levels of these state-backed investment vehicles. Back in May 2008, these concerns manifested themselves, with the support of the IMF, in the formation of the International Group of Sovereign Wealth Funds (IWG), to address the principles and practices of SWFs. But this time around, the SWFs themselves are moving to counter such fears head-on, by turning their backs on active management and embracing increasingly passive investment strategies.

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