Case Study: Sovereign Wealth Fund

Free CFA Level III: Portfolio Management lesson in Portfolio Construction. 32 min read, ~4,820 words.

SWFs pursue multiple competing objectives: stabilization, savings, development, and reserve management. Stabilization funds need short duration, high liquidity, and low risk; they are crisis insurance. Savings funds (perpetual horizon) hold the highest risk tolerance of any institutional investor, with low liquidity needs and a natural home for equities and alternatives...

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What this lesson covers

Content
Example 1
Example 2
Common Mistakes
Check Your Understanding
Exam Shortcuts

Learning objectives

swf case study

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