Mirtchev, A. (2099, August 27). Prioritizing Investment Portfolios Beyond the Global Downturn – Multinationals and SWFs Surpass the “Withdraw And Regroup” Phase and Consider the Post-crisis Geo-economic Horizon. ABC News.
Dr. Alexander Mirtchev, President of Krull Corp and former Chairman of a sovereign wealth fund, discussed the rationale and potential consequences for the global economy from the increasing investment activity by sovereign wealth funds. He emphasized the fact that the economic crisis has driven SWFs to prioritize their portfolios and to move beyond the “withdraw and regroup” stage. Investments focused on production capacities and productive industrial sectors, in turn, could boost the pace of recovery in the respective markets where they are made. Inevitably, states see the opportunity for enhancing their geo-economic presence and geopolitical power via the mechanisms SWFs provide. In this process, SWFs are seeking to offset limitations or inefficiencies they may have with investments in specific projects or specific markets, and are focusing on synergies and trying to stay ahead of the curve by making targeted growth investments in strategic sectors. The added positive effects of SWF cooperation could bring about improved sovereign investment efficiency and intensified activity could ultimately lead to stabilization of economic growth and boost market confidence in various emerging and rapidly developing economies, as well as some developed ones. This, in turn, could strengthen the pillars of the global economic architecture.