№ 8/2015

Fìnansi Ukr. 2015 (8): 56–73

MARKET OF FINANCIAL SERVICES

DYBA Mykhailo ¹, KRASNOVA Iryna ²

¹Kyiv National Economic University named after Vadym Hetman
OrcID ID : https://orcid.org/0000-0003-2007-9572
²SHEE "Kyiv National Ecomomic Universiry named after Vadym Hetman"

Sovereign wealth funds on the capital market

Study of the role of sovereign wealth funds in the financial market and in the global economy, understanding their mission, strategies and behavior represent scientific and practical interest. In the article the basic aspects of the new sovereign wealth funds as institutional investors in the capital market are revealed, which number, size and importance are increasing exponentially in the global financial community. Based on the analysis of statistical material trends of funds’ activity in the post-crisis period are defined, that is confirmed by increasing activity, desire for diversification of investment portfolios by including real estate funds as an asset class and expanding geography of investments. It is emphasized that investment activity of funds, which are public institutions, causes much debate related to the opacity of their objectives and structure, probability of politically motivated investments and possible interference in private companies’ activity whose shares is bought. However, the article examines the role and place of public funds in ensuring macro-economic development and stability of the financial system, as well as in balancing global imbalances. The range of sovereign funds is very wide, each type of investment strategy inherent in its own asset management, which is due to target a fund. It is underlined that leveling the influence of market fluctuations sovereign wealth funds included the whole range of their portfolio asset classes and investment styles seeking to diversify and implement countercyclical investments. The variety of sovereign wealth funds could be seen as a positive thing for Ukraine as recipient country in search of investments. Besides this, studying world experience shows that the creation of such funds is appropriate in countries with inflexible economies where the range of sources is very diverse. Thus, Ukraine should accumulate this experience to implement it in future.

Keywords: sovereign wealth funds, financial stability, investment strategy, institutional investors, financial assets.

JEL: G20, G23, G28.

DYBA M. . Sovereign wealth funds on the capital market / M. . DYBA, I. . KRASNOVA // Фінанси України. - 2015. - № 8. - C. 56-73.

Article original in Ukrainian (pp. 56 - 73)

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