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Pension reform has led to the creation of funds that are flush with cash and need assets to match their long-term, local-currency liabilities.
In some countries, the strategies have also spawned the creation of funds to support research, such as the US National Center for Responsible Gaming (NCRG), which has distributed $27 million to researchers since it was created in 1996.
This control is being extended largely through the creation of enormous privately managed funds for indefinite purposes, hereinafter designated "foundations," by the endowment of colleges and universities, by the creation of funds for the pensioning of teachers, by contributions to private charities, as well as through controlling or influencing the public press.
Ms. Rhodes, like other executives of charities that offered donor-advised funds, said there had been an increase in creation of funds and additions to existing funds as the stock market has recovered from its lows in the two previous years.
This would pave the way for competition between ETF providers, potentially leading to the creation of funds which may sacrifice some return for the promise of not participating in lending.
Also, the group pledged to encourage the creation of funds to help survivors of sexual violence in danger spots, and to encourage Sahel countries to take steps to end trafficking.
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But existing regulations frustrate the creation of new funds -- something that seems just fine to pension funds that have become a powerful political and economic force.
FINANCIAL TIMES In South Korea, Hedge Funds Struggle to Grow | South Korea's government allowed the creation of hedge funds late last year, but 17 upstarts have so far had trouble attracting investors because of nervousness about domestic funds, The Financial Times reports.
It also proposes the creation of national funds worth at least 1% of bank deposits that could help to deal with failing banks.
While the theoretical logic underlying the creation of oil funds is compelling, their actual track record in achieving macroeconomic stability and fair intergenerational income distribution is more mixed.
Bold: I stand behind my original thoughts: The creation of these funds lays squarely on the marketing department, not on the investment strategy department.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com