University of Oxford: Post-crisis Political Realities Changing SWF Dynamics – Synergetic Investments by SWFs Expand Under the Banner of Corporate Governance and Transparency

The “Oxford Sovereign Wealth Funds Project,” Oxford University, analyzed SWF post-crisis investment strategies and discussed views concerning the new political reality that positions SWFs in a new role in the global economy, exemplified, among others, by the growing trend of cooperation between them. According to comments by Dr. Alexander Mirtchev, the increased strategic cooperation between SWFs in emerging markets reflects the potential advantages that SWFs and their sovereigns achieve, by realizing opportunities for a new geopolitical and geo-economic positioning. Just like multinationals, in certain industry sectors SWFs are able to achieve more, as they may not be bound by anti-trust and other restrictive regulatory policies. In addition, joint project development allows better structuring of the investment activities of SWFs, making them a more desired and systemically important investor, in particular in the context of post-crisis global economic security. Mirtchev considers that SWF cooperation will help diminish concerns regarding the political motives of individual SWFs and, at the same time, contribute to market legitimacy and transparency of both the funds’ operations and the regional economies they work in, thus better equipping them for market expansion in regions to which they have not had exposure before, which would likely benefit regional and even global economic security.