Sovereign Wealth Funds

Analysis of Pacific National Funds Investment Strategies and Results: Regional Comparative Study

Pacific Island nations are on the frontlines of climate change. On behalf of regional Finance and Economy ministers, Ekaterina Gratcheva and I analyzed the returns and management of their national funds, many of which are larger than 100% of GDP. These funds play an outsized role in providing for the future wellbeing of citizens in Pacific Island nations. The analysis aimed to fill the vacuum of comparable information about fund performance, fees, and management. Greater transparency empowers policymakers to make prudent decisions in the best interest of their citizens. I helped formulate the strategy for benchmarking investment returns and risk in the context of limited data, and compatibility challenges. We built off of the work of New Zealand's sovereign wealth fund in benchmarking the performance of active managers against reference portfolios comprised of easily implementable, low-cost, internationally diversified passive portfolios. I performed the quantitative investment analysis using R.