Publication

This paper examines Singapore's two sovereign wealth funds (SWF) and the political risk to which they are exposed in their overseas investments. The author argues that political risk is an inevitable challenge for SWFs in general and that political risks have increased since demand for greater transparency and accountability has arisen. The paper sheds light on this issue by undertaking case studies on two of the world's leading SWFs. The author finds that one of the two funds has exposed itself to higher political risk but in turn received a higher rate of return on its investments.