FIXED INCOME

SECURITIES
ASSIGNMENT

20BFS01 ADITYA SHANKAR

20BFS32 PRIYANSHI VERMA
INTRODUCTION
 Sovereign wealth fund

What are SWF ? Background of Operating

SWF Principle of
SWF
• State owned • Singapore’s • The operating
investment Government principles for
fund composed Investment SWFs were
of financial Corporation framed in 2008
assets such as (GIC) is to ensure that
stocks, bonds, known to be funds would
property, the first SWF act for
precious metals • It was economic
or other established in growth.
financial the year 1981
instruments.

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Types of Sovereign Wealth Fund
• Financed by exporting
Commodity commodities.
• E.g. : KIA
SWF

Non- • Financed by an excess of

foreign currency reserves from
Commodity current account surpluses.
SWF • E.g. : GIC
Largest sovereign wealth funds worldwide

Source : Statista.com
One-year actual return of sovereign wealth
funds worldwide from 2016 to 2020

Source : Statista.com
INDIA’s SOVEREIGN WEALTH FUND: NIIF

National Infrastructure and (NIIF) is India’s first-ever

Investment Fund (NIIF) sovereign wealth fund (SWF)

In Union Budget 2015-16

Primary objective is to optimize
announcing the formulation of the
the economic impact
NIIF

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INDIA’s SOVEREIGN WEALTH FUND: NIIF

Objectives of Types of NIIF

NIIF Investors
NIIF Funds
• The NIIF invests • Master Fund • International
with a long-term • Fund of Funds investor- Abu
horizon. • Strategic Fund Dhabi Investment
• Commercial Authority (ADIA)
• Collaborative in October 2017.
• Sustainable • Domestic
investors- ICICI
Bank, HDFC
Bank, Axis Bank,
Kotak Mahindra
Life.

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Current Scenario
● UK Government in association with the NIIF started the Green Growth
Equity Fund (GGEF).
● India quietly replaced China for global SWF investment in the private
sector.
● NIIF manages funds of over USD 3.4 billion.

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Thanks!
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