A study on sovereign wealth funds：Whether Taiwan needs to establish a SWF

• Main Author: 沈鈴華
• Other Authors: 朱美麗博士
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/67547921746561938297

碩士 === 國立政治大學 === 行政管理碩士學程 === 98 === The prices of natural resources have increased, while global trade has became unbanced; as a result, the developing countries have accumulated lots of reserves assets, which are invested in diversified financial products. The above situation has caused Sovereign Wealth Funds (SWFs) to attract a lot of attention. This study investigates whether Taiwan, should establish its own Sovereign Wealth Fund. Supporters of the SWF believe that it will reduce the opportunity costs of holding foreign exchange reserves while increasing revenues, supporting domestic industries, and enhancing international competitiveness. In contrast, opponents of the SWF argue that it is too risky, easy prey to government and business collusion as well as corruption. Various studies indicate that SWFs may become financial giants, but after the latest financial crisis, investment performance is limited by conservative hedging. The new development of SWFs are worthy of further observations and research. This paper aims to review the literature on SWFs. It goes through the world’s major SWFs, asset scales and objectives. The study concludes that due to Taiwan’s specific financial and economic status, it is not appropriate for Taiwan to set up a Sovereign Wealth Fund at this moment. Key words：Sovereign Wealth Funds、foreign exchange reserves