Centre for Applied Macroeconomic Analysis

Office Location:
Mailing Address:
Enquiries:
Director:

Office 2076, Level 3, Crisp Building (26), ANU
Arndt Building (24), ANU, Canberra ACT 0200
cama.admin@anu.edu.au
Director

The Centre for Applied Macroeconomic Analysis, together with the Lowy Institute for International Policy, hosted a major international conference in Sydney on 25 and 26 September 2008. The conference theme was:

"Sovereign Wealth Funds in an Evolving Global Financial System"

Overview
Program and Presentations
Sponsors
Participants
Media Coverage

Overview

There has been a significant growth in Sovereign Wealth Funds (SWF) which are currently estimated to hold close to $3 trillion in assets. These funds have been around for many years, initially holding reserves generated by resource rich economies (particularly oil exporters) but in recent years they have been established by countries running large current surpluses and cumulating foreign exchange reserves to be invested. Recently Australia established the Future Fund to manage the assets generated from fiscal surpluses.

This two day conference run by the Centre for Applied Macroeconomic Analysis in collaboration with the Lowy Institute for International Policy will bring together leading researchers from academia, the private sector, international organisations, central banks and policy makers to address a number of key issues surrounding Sovereign Wealth Funds. What is the current and expected scale of these funds?; do they matter from an economic and or political perspective?; how are they and how should the funds held in these institutions be managed?; does the source of the funds have any implication for the investment strategies?; should these funds be self regulated or is there a need for an international agreement dealing specifically with the code of practice of Sovereign Wealth Funds?

[top of page]

Program and Presentations

The conference program is available for download here.

Thursday, 25 September
Welcome by Warwick McKibbin (ANU, CAMA, LIIP) (Introduction slides)

The Impact of SWFs on the Global and National Economics
Chair: Warwick McKibbin (ANU, CAMA, LIIP)

What We Know About Sovereign Wealth Funds (slides)
Krishna Srinivasan – International Monetary Fund
Discussant: Michael Reddell – New Zealand Treasury (discussant comments)

Sovereign Wealth Funds: Stylized Facts about their Determinants and Governance (slides) (paper)
Reuven Glick – Federal Reserve Bank of San Francisco Center for Pacific Basin Studies
Discussant: Prasanna Gai – ANU, CAMA and the Bank of England (discussant slides)

Macroeconomic and Financial Impacts
Chair: Renée Fry – CBE, CAMA

Sovereign Wealth Fund Portfolio Allocation and Macroeconomic Impacts (slides)
Julie Kozack – International Monetary Fund
Discussant: Mark Thirlwell – LIIP

Economic Impact of Sovereign Wealth Funds and Implications for Financial Markets (slides) (paper)
David G. Fernandez – J.P.Morgan
Discussant: Susan Thorp – UTS, CAMA (discussant slides)

Chair: Viv Hall – Victoria University of Wellington, CAMA

Keynote Address
Sovereign Wealth Funds – Reality
David Murray AO – Future Fund

Management of SWF Portfolios
Best Practice Asset Allocation and Risk Management (slides) (paper)
Patricia Pascuzzo - Mercer
Discussant: Alex Heath – Reserve Bank of Australia

Friday, September 26

Public Policy Issues
Chair: Mark Thirlwell – LIIP

Open Capital Markets and Sovereign Wealth Funds (paper)
Adrian Blundell-Wignall – OECD
Discussant: Stephen Grenville – LIIP, ANU, Crawford School of Economics & Government (discussant paper)

Barriers to Entry, Foreign Direct Investment and the Regulation of SWFs
Justin O’Brien – ANU and Greg Golding – Mallesons Stephen Jaques (O'Brien slides ) (O'Brien paper) (Golding slides) (Golding paper)

Forum open to conference participants and the general public
SWFs: Implications for the Global Financial System
Chair: Warwick Mckibbin

Welcome: Keith Houghton – ANU
Keynote Address
Issues Associated with Transparency and Accountability (slides)
Edwin M Truman – Peterson Institute

Keynote Address
A Sovereign Wealth Fund Perspective on the Geopolitical Debate (slides)
Tim Mitchell – New Zealand Superannuation Fund

Panel Presentations and Discussion
Chair: David Vines – Oxford, CAMA (slides)

The Panel
Krishna Srinivasan – IMF
Adrian Blundell-Wignall – OECD
Reuven Glick – Federal Reserve Bank of San Francisco Center for Pacific Basin Studies
Edwin M. Truman – Peterson Institute

[top of page]

Sponsors

The Centre for Applied Macroeconomic Analysis and the Lowy Institute for International Policy gratefully acknowledge the support and contributions from the following organisations for funding speakers although they bear no responsibility for any views expressed by participants.

Platinum sponsor
Mercer

Gold sponsors

Marsh The Treasury

Silver Sponsors

Govnet CAPPE

Sponsors
Australian National University College of Business and Economics
Australian Research Council Grant Number DP0664024
Federal Reserve Bank of San Francisco Center for Pacific Basin Studies
J.P.Morgan
Organisation of Economic Co-operation and Development

[top of page]

List of Participants

Name	Organisation
Ms Charmaine Aynsley	The Treasury
Mr Michael Backwell	Bank of America
Mr Faycal Benabdellaziz	Mercer
Ms Helga Birgden	Mercer
Mr Paul Bloxham	Reserve Bank of Australia
Dr Adrian Blundell-Wignall	OECD
Mr Jurgen Braunstein	The Australian National University
Mr Anthony Bubalo	Lowy Institute for International Policy
Ms Lyn Cobley	Commonwealth Bank of Australia
Ms Lynne Cockerell	Reserve Bank of Australia
Prof William Coleman	The Australian National University
Dr Malcolm Cook	Lowy Institute for International Policy
Prof Jenny Corbett	The Australian National University
Dr David Fernandez	J.P.Morgan
Dr Renée Fry	The Australian National University
Prof Prasanna Gai	The Australian National University
Prof Reuven Glick	Federal Reserve Bank of San Francisco
Dr Greg Golding	Mallesons Stephens Jacques
Mr Malcolm Gray	Rio Tinto
Dr Stephen Grenville	Lowy Institute for International Policy
Prof Viv Hall	Victoria University of Wellington
Dr Alex Heath	Reserve Bank of Australia
Dr Timo Henckel	The Australian National University
Lyall Howard	Rio Tinto
Mr Carlton Hughes	Lowy Institute for International Policy
Sam Hurley	The Treasury
Prof Roselyne Joyeux	Macquarie University
Ms Julie Kozack	International Monetary Fund
Alex Lee	Commonwealth Bank of Australia
Mr Steven Macmillan	Rio Tinto
Mr Huw McKay	Westpac Banking Corporation
Prof Warwick McKibbin	The Australian National University
Prof George Milunovich	Macquarie University
Mr Tim Mitchell	New Zealand Superannuation Fund
Mr John Moore	J.P.Morgan
Mr Peter Munckton	Commonwealth Bank of Australia
Mr David Murray	Future Fund
Prof Justin O’Brien	The Australian National University
Mr Mark O’Neill	Rio Tinto
Mr Luke Palmerlee	J.P.Morgan
Ms Patricia Pascuzzo	Mercer
Ms Sarah Pearson	Credit Suisse
Mr Michael Reddell	The Treasury, New Zealand
Prof Jeffrey Sheen	Macquarie University
Prof Krishna Srinivasan	International Monetary Fund
Ms Jodie Tapscott	Mercer
Mr Mark Thirlwell	Lowy Institute for International Policy
Dr Susan Thorp	University of Technology, Sydney
Ms Jessica Tilton	Bank of America
Prof Edwin Truman	Peterson Institute
Mr Pete Walther	Marsh
Prof David Vines	Oxford University