Non-Commodity Funds Now Account For 40% of Assets Managed By Sovereign Wealth Funds, Say PwC Economists
The report highlights that Sovereign Wealth Funds also help to increase the transparency of a country's financial policy and reduce the potential for corruption, as measured by the Transparency International Corruption Perceptions Index.
Yael Selfin concluded: "Overall, our findings support the view that starting a new Sovereign Wealth Fund is beneficial to the country which sets it up. Global imbalances and high commodity prices mean Sovereign Wealth Funds are getting bigger, and more countries are joining the clamour to start their own fund. It could be prudent for governments to put money aside for a rainy day which can be used to pay for pension obligations, provide capital injections in times of crisis or to ensure future generations benefit from the extraction of finite resources. There is, however, a cost to this saving in terms of higher taxes and lower short term government spending."
Notes to editor:
Copies of "The impact of Sovereign Wealth Funds on economic success" can be obtained from: Katherine Howbrook, PwC media relations, Tel: 020 7212 2711, Mob: 07515 119 096, Email: firstname.lastname@example.org
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Katherine HowbrookPR ManagerUnited Kingdomkatherine.email@example.com+44 0 20 7212 2711