New Saudi Sovereign Wealth Fund

A new Saudi sovereign wealth fund (SWF), Sanabil Al Saudia, commenced operations last week. Gulf SWFs have recently initiated significant changes in their investment strategy. They have shifted away from investing in Western markets, particularly the financial sector, and started to invest in local businesses and banks. Furthermore, they have decreased the dollar ratio in their investment portfolio and started to improve their transparency as a response to the global anxiety over their investment goals. How will this affect my portfolio in the medium term?

Soveriegn Wealth Funds...what if a full scale backlash? Where are they?

What would a full-scale backlash against SWFs mean for my investments, both here and overseas?

List of funds:

# Algeria - Revenue Regulation Fund
# Angola - SWF Presumed
# Australian Future Fund
# Azerbaijan - State Oil Fund
# Bahrain - Mumtalakat Holding Company
# Botswana - Pula Fund
# Brazil - SWF presumed
# Brunei Investment Agency
# Canada - Alberta's Heritage Fund
# Chile - Pension Reserve and Social and Economic Stabilization Fund
# China-Africa Development Fund
# China Investment Corporation
# China - National Social Security Fund
# China - SAFE Investment Company
# Hong Kong Monetary Authority Investment Portfolio
# India - SWF presumed
# Iran - Oil Stabilisation Fund
# Ireland - National Pensions Reserve Fund
# Japan - SWF presumed
# Kazakhstan National Fund
# Kiribati - Revenue Equalization Reserve Fund
# Korea Investment Corporation
# Kuwait Investment Authority
# Libyan Investment Authority
# Malaysia - Khazanah Nasional
# Mauritania - National Fund for Hydrocarbon Reserves
# New Zealand Superannuation Fund
# Nigeria - Excess Crude Account
# Norway - Government Pension Fund – Global
# Oman - State General Reserve Fund
# Qatar Investment Authority
# Russia - National Welfare Fund
# Saudi Arabia - Public Investment Fund
# Saudi Arabia - SAMA Foreign Holdings
# Singapore - Government of Singapore Investment Corporation
# Singapore - Temasek Holdings
# Thailand - SWF presumed
# Timor-Leste Petroleum Fund
# Trinidad and Tobago - Heritage and Stabilization Fund
# UAE - Abu Dhabi Investment Authority
# UAE - Emirates Investment Authority
# UAE - Investment Corporation of Dubai
# UAE - Mubadala Development Company
# UAE - RAK Investment Authority
# USA - Alaska Permanent Fund
# USA - Alabama Trust Fund
# USA - New Mexico State Investment Office Trust
# USA - Permanent Wyoming Mineral Trust Fund
# Venezuela - FIEM
# Vietnam - State Capital Investment Corporation

Several banks have gone hat in hand to sovereign wealth funds

in Abu Dhabi, China and Singapore, seeking to raise capital to offset their recent massive losses. These deals, mostly convertible bonds or convertible preferred stock, have the potential to massively dilute existing shareholders’ stakes when they do convert. Should I sell my positions in the banks that have issued them, or is the earnings-per-share dilution already factored into their current stock prices?

Sovereign Wealth Funds....

Sovereign wealth funds are facing a growing backlash in countries from Germany to the United States, where their acquisitions in strategic industries such as defense or transportation have raised hackles. But the economic downside of having a U.S. company owned by an arm of the Singaporean, Dubai or even Russian government isn’t immediately apparent. What would a full-scale backlash against SWFs mean for my investments, both here and overseas?