Certified Professional in Sovereign Wealth Management

Introduction

Sovereign wealth funds (SWFs) are playing an increasingly important role in the management of government windfalls and income surpluses from a variety of sources.

The rise of SWFs is reflected not only in the increase in the size of assets under their management – now estimated at over $5 trillion globally – but also in the proliferation of new funds established over the past decade and the anticipated establishment of new funds in countries with recent resource discoveries.

This report digs deeper into the roles, practices and governance structures of SWFs. The primary aim of the report is to identify the leading practices among existing funds and establish an analytical framework for assessing the critical policy and institutional aspects that legislators, policymakers and practitioners need to consider in establishing a new SWF or reforming an existing one.

Course Objective:

• Clarify and align operational rules—namely deposit, withdrawal and investment rules—with the fund’s objectives.
• Ensure independent oversight.
• Prohibit Risky investments.
• Design of fund rules with respect to stress-testing under various asset and commodity price scenarios
• Engaging external partners in the sector & Legal understanding & support
• Developing public communication strategy

Who should attend?

• Top Level Executives
• Mid-Level Executives
• Financial Researches
• Financial Consultants

Training Methodology

Training course will utilise a variety of proven learning techniques to ensure maximum understanding, comprehension and retention of the information presented.

This training course is an interactive mixture of lecture, discussion, activities and practice on several management skills. It provides definitions, examples, discussion and activities designed to promote skill building with interaction and discussion among participants.

Course Outline

Introduction: Managing sovereign wealth

Sovereign wealth fund functions, policies and governance

• Sovereign wealth funds and the broader sovereign investor universe
• The functions of sovereign wealth funds
• What determines sovereign wealth fund functions?
• Key considerations for policy decisions and implementation

Section I: Accumulating, stabilising and spending the sovereign wealth

Banking the boom: accumulating wealth through resource revenue windfalls

• Accumulation rules for resource-rich countries: a conceptual overview
• Counterfactuals based on simple accumulation rules
• Policy implications for resource-rich countries

Accumulating wealth through excess foreign reserves

• Comparing reserves- and resource-based sovereign wealth
• The accumulation of foreign reserves: from adequacy to excess

Integrating stabilisation, spending and savings decisions in resource-rich countries

• Structural features: strengths and weaknesses
• A simple model for integrated policy choices
• Applications and insights from contrasting country cases
• Generalised lessons from country-specific cases

Governing sovereign wealth

Rule-based policies and governance in resource-revenue funds

• Sources of funding: savings rules
• The use of sovereign wealth fund assets and income: spending rules
• Governance of savings and spending rules

Public sector placement of sovereign funds: mandating central banks or independent authorities?

• Existing approaches to institutional placement 90
• Choosing where to place your sovereign investment vehicle 92

Internal governance: board composition, appointment process and investment policy 101

• The clarity in internal governance 101
• Foundations for good governance 103
• Board composition 105
• Appointment processes 110
• Investment objectives, policy and strategy 111

Section III: Conclusions and recommendations

Findings and recommendations

• Technical appendix: An integrated model of savings, stabilisation and spending