Sovereign wealth assets level off; alt-investments increase

graph_up_downThe value of assets managed by sovereign wealth funds (SWFs) has “levelled” in the past two years, with growth of just 3% and 1% in 2015 and 2016, respectively. Preqin, a research firm, found that total assets under management (AUM) among these investors rose from $6.51 trillion (€6.14 trillion) in March 2016, to $6.59 trillion a year later. This pace of growth is in sharp contrast to previous years, Preqin said in its ‘2017 Preqin Sovereign Wealth Fund Review’. Growth of 17% was recorded between December 2011 and December 2012, and by a further 16% the following year. The proportions of SWFs investing in public equities and fixed income are falling: 79% of funds now commit to public equities, and 78% to fixed income products. However, 26% solely invest in these asset classes. Conversely, SWFs are increasingly investing in alternative assets. Currently, 61% have allocations to private equity, and 63% to real estate, with an equal proportion investing in infrastructure. Preqin currently tracks 76 active sovereign wealth funds, which collectively manage $6.59 trillion in assets. ©2017 funds europe

Sponsored Profiles

SPONSORED FEATURE: Alternative thinking

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

SPONSORED FEATURE: Interest rate risk hedging: Swapping to other options

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

SPONSORED FEATURE: Why blockchain could be the fund industry’s next Ford Model T

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

SPONSORED FEATURE: Open architecture: In need of protection

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.


ROUNDTABLE: The issue is perception

Mar 21, 2017

Our panel discuss tax transparency, the elegance of private placement and why Jersey could do more to promote itself. Chaired by Tom Cowsill in Saint Helier.


Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.