Importance The current unstable economic situation in Russia necessitates efficient management and disposal of assets accumulated by sovereign wealth funds to deal with the challenges faced by the Russian society and economy. Objectives The objectives are to review the foreign practice of sovereign wealth fund management, analyze the Russian practice, work out recommendations on enhancing the efficiency of management to create conditions for structural transformation and development of Russian economy. Methods The paper employs methods of logical, statistical, and factor analysis. Results Active investment strategy of sovereign wealth funds involves a higher level of risk and profitability, and under a competent investment policy, it may be successful. Until recently, the management of the Russian Reserve Fund and National Welfare Fund has been conservative. If such an approach is justified by virtue of stabilization purpose of the former, the management of the latter should be based on more active investment policy aimed at higher profitability of assets and risk mitigation. Conclusions and Relevance The investment strategy of the National Welfare Fund should consider successful examples of asset investment by foreign sovereign funds, the current geopolitical environment and the need to support the Russian economy and its branches. Investment decisions should be carefully elaborated and informed.
Keywords: sovereign fund, investment policy, investment strategy, Reserve Fund, National Welfare Fund
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