Sovereign Wealth Funds : Defining Liabilities

Defining a liability profile is arguably the most important step in designing and running any fund. However, sovereign wealth funds (SWFs) often differ from other institutional investors in the evolution of their liabilities. This paper explores the nature of different SWF liability profiles and attempts to provide an analytical framework for thinking about the impact of such liabilities on the asset side of the SWF balance sheer : risk-return profiles, investment horizons, asset allocation preferences and other aspects of the funds' investment behavior. JEL Classification : F30, G29Rozanov Andrew. Sovereign Wealth Funds : Defining Liabilities . In: Revue d'économie financière (English ed.). Hors-série, 2009. Sovereign wealth funds : Special Issue 2009. pp. 283-290