Sovereign Wealth Funds

SWF’s do not have clearly defined liabilities on which to base liability driven investment frameworks.

Budget stabilization funds mostly invest in fixed income for stability and liquidity.

Endowments and Foundations

In the US, both endowments and foundations are tax exempt but foundations must distribute a minimum of 5% of their asset value annually otherwise they are taxed on undistributed income.

Most endowments determine annual payout based on a percentage of market value. Some use tuition inflation or a weighted average of the two.

Foundation boards are typically less sophisticated investors than endowment boards.

Foundations rely on their investment income for almost all of their operating budget so they tend to have more conservative and liquid portfolios than endowments.

Insurance

P&C insurers usually have a shorter duration liability stream and investment horizon than life insurers.

Banks

The ability to issue equity can be important in liquidity crises. This has led publicly traded companies to be preferred over mutual and co-op structures which can only expand equity by increasing membership.