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: Investing for income

May 17, 2017

Portfolio Manager Thomas Kruse examines the findings from Pioneer Investments’ survey on income investing and outlines ways of achieving a target income.

SPONSORED ARTICLE: A radical solution to KYC concerns

May 17, 2017

The 1MDB affair shows that lax know-your-customer and due-diligence procedures are a major risk, says Paolo Brignardello, head of product management and marketing, Fundsquare. New solutions are...

SPONSORED FEATURE: AIFMD - What does Brexit mean?

Apr 18, 2017

An open discussion between funds industry experts and initiated by SGG Luxembourg took place in London to examine  the implications of Brexit for UK fund managers marketing to the EU.

SPONSORED FEATURE: Luxembourg fund reporting – CRS vs FATCA

Apr 18, 2017

Luxembourg funds need clear procedures for CRS compliance, writes Andrew Knight, Partner at M Partners, a member of the Maitland network of law firms.

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.

Roundtables

MARKETING & BRANDING ROUNDTABLE: It’s about aspiration

May 17, 2017

With such an intangible product, it can be hard for asset managers to communicate what they do. Having personality and connecting with customer aspirations may be the key, our branding roundtable hears.

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.