Sovereign Wealth Funds: The Political Risk of Financial Opportunity

The rapidly growing pool of assets held in sovereign wealth funds (SWF) now totals $3 trillion, exceeding the sum invested in hedge funds globally. These vast resources, managed by the governments of petrol-rich countries and those with significant foreign reserves, can have enormous influence on the world’s financial markets. However, bundled along with financial optimism are political and security risks associated with the often undemocratic and opaque governments who manage these funds. While Japan’s vast foreign reserves, held primarily in U.S. Treasury bills, could be invested more aggressively, MOF has publicly stated that the Japanese government should not create a SWF and risk public funds in the international financial markets. Others point to Japan’s aging society and the need for Japan to adopt more efficient and aggressive investment strategies with its reserves and pension funds. Our speakers engage in a multifaceted discussion of SWF and the growing influence this phenomenon is having on international financial markets.

Speakers:
John Green, Director of Research and Asia Practice Head, Eurasia Group
Kotaro Tamura, Member of the House of Councilors; Vice Chairman, LDP Committee on Fiscal and Financial Policy; former Parliamentary Secretary, Cabinet Office of Economic and Fiscal Policy
Edwin Truman, Senior Fellow, Peterson Institute for International Economics
Ann Wyman, Managing Director, Economic and Political Strategies, Citigroup Inc.

Moderator:
Bob Davis, International Economics Correspondent, The Wall Street Journal

Agenda
9:30 -10 am
Registration & breakfast buffet

10 – 12 pm
Panel presentations and Q&A

Admission: Corporate members are entitled to a designated number of free admissions to this event, based on their company’s current membership level. These reservations must be made at least 48 hours prior to the event. Additional corporate registrants and Japan Society individual members at the Patron level and above pay the discounted corporate member rate of $10. Nonmember admission: $15. The academic and government admission rate is $10. When payment is required, prepayment must be made, or registration secured, with a credit card. All registrations and cancellations must be made at least 48 hours prior to the event. Substitutions are welcome.

This event is co-organized by