Mr. Matthew McGann:

On the broader question it depends on the nature of the fund. A lot of the sovereign wealth funds have very long-term objectives. The New Zealand one is a pension fund they set up, and the Japanese one. The investment strategies depend upon the objectives of the fund. If it is long-term, they can afford to invest in less liquid assets and look for higher returns and smooth it out over the years so they can afford to take more risk. Whereas something that is a short-term fund, a counter-cyclical fund, or a reserve fund needs to maintain relatively liquid assets in order that they can draw down the fund quickly if they need to. I think that is the principal motivation for, not the current National Reserve Fund, holding largely Exchequer notes because they are essentially close to cash and they can cash it out if needed to be able to get access to it.