Sovereigns Series: Worlds in Motion maps the post-pandemic environment for sovereigns globally. Developed in partnership with the International Forum of Sovereign Wealth Funds (IFSWF), this series will feature articles, podcasts and webinars focused on issues important to members of the sovereign universe and their private sector counterparts such as asset managers, banks and other financial institutions. The series will cover nine topics: foreign direct investment, tax, disputes, environment, compliance, governance, anti-corruption, digitalization, alternative investment, institution building and sovereign borrowing.
In these introductory videos, Baker McKenzie Global Financial Institutions Chair Jonathan Peddie and IFSWF CEO Duncan Bonfield highlight the need to put the spotlight on sovereigns:
Promoting Good Internal Governance: Tips for Sovereign Actors
What constitutes good internal governance for sovereign actors? We explore this in our new report, with a focus on sovereign wealth funds and national development banks. We also look at the key areas of risk, particularly given the urgency of some investments and lending arising out of the pandemic, and best practices for having proper internal governance in place as an integral part of managing risk.
In an accompanying podcast episode, Pete Chapman and Lucy Shawdon from our compliance and investigations team in London take a look at compliance in a changing landscape, specifically in the context of sovereign wealth funds. The episode goes through current developments, emerging trends, risks and other important items that sovereign wealth funds need to consider as we move to the post-pandemic economy. It also covers topics around due diligence and risk management, focusing on geographic, sectoral, litigation, reputational and regulatory risks.
Navigating Tax Transparency in Europe
In the aftermath of COVID-19 and the resulting low-yielding environment, sovereign actors are looking more than ever to real estate, infrastructure, private equity, private debt and other alternative assets for strategic investment opportunities. Although typically tax-exempt in their home countries, the investment activity of sovereign actors has global reach and their investment structuring sophisticated and increasingly varied in form. As such, sovereign investors, like most other market participants, are exposed to all manner of profound changes taking place in the wider tax landscape.
In the second of two episodes focusing on Tax considerations, our expert attorneys take a look at the approach of sovereigns to tax governance and structuring, as well as some of the European tax issues that are currently affecting sovereigns investment activity, particularly the increasing volume of tax transparency requirements.
COP26 Key Takeaways for Sovereign Wealth Funds
As discussions on climate-related issues evolve from commitments to execution in the recent COP26 UN Climate Change Conference, we unpack some of the key takeaways relevant for sovereign wealth funds. Andrew Hedges and Kay She from Baker McKenzie's EMI group in London discuss their experience and observations while on the ground in Glasgow. They cover business imperatives and challenges affecting the global economy, and how sovereign wealth funds are well-positioned to influence and make an impact on broader sustainability goals and action plans.
Investment Profile and Tax Considerations for Sovereign Wealth Funds
In the aftermath of COVID-19 and the resulting low-yielding environment, sovereign actors are looking more than ever to real estate, infrastructure, private equity, private debt and other alternative assets for strategic investment opportunities.
Although typically tax-exempt in their home countries, the investment activity of sovereign actors has global reach and their investment structuring sophisticated and increasingly varied in form. As such, sovereign investors, like most other market participants, are exposed to all manner of profound changes taking place in the wider tax landscape.
The State of State Immunity
Actors within the sovereigns universe are playing an even greater role in the global economy. However, have state immunity laws — many of which were developed over the past century — kept pace with these developments? In this second article in our Sovereigns Series, we examine this question, the approaches to state immunity in a variety of key financial centers and explore what the future holds for the doctrine of state immunity.
Strategies for Navigating the Global Foreign Investment Landscape
Over a year on from the start of the COVID-19 pandemic, advanced economies continue to introduce and consolidate foreign investment review (FIR) regimes. It has become even more imperative for sovereign wealth funds to consider carefully foreign investment review risks at this highly sensitive and volatile time in respect of deals that are underway and transactions being contemplated.
Taking the time to understand the rules and identify a regulatory strategy early in the deal process can minimize the risk of delays, last-minute changes to the deal structure, or even failed transactions. The first report in the series and the accompanying webinar provide an overview of criteria for reviewable investments, factors to consider when assessing risks and steps to get investments through the regulatory process.