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‘Politicised’ SWFs earn lower returns

Shares in companies rose less following a purchase by a sovereign fund with strict government oversight

Study finds that Norway's SWF is not associated with political interference
Study finds that Norway's SWF is not associated with political interference Photo: iStock

Sovereign wealth funds that are “highly politicised” earn lower returns on their stock-market investments than more independent peers, according to new academic research.

An analysis of more than 1,000 sovereign wealth fund investments in publicly traded companies found that shares in those companies rose less following a purchase by a sovereign wealth fund compared with almost 6,000 comparable stock purchases by private investors.

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