As sovereign wealth funds seek to do more co- and direct investment, real estate is experiencing the most abrupt move away from the traditional limited partner model.
The sovereign wealth fund is ramping up its in-house capabilities, becoming more targeted in its investments and building up exposure in new areas, with China and India a key focus.
AustralianSuper CIO warns of low returns; China brings forward lifting of foreign ownership limits; GPIF reports profit; Korea Post, APG invest in property debt; EPF eyes UK property; GIC, Mid East SWFs focus on Asia; global SWFs up bond exposure; and more.
UBS Asset Management believes sovereign wealth funds need to analyse their own portfolios adding exposure to high growth markets and alternatives, and better react to mega-trends.
Sovereign wealth funds may have hit ‘peak allocation’ to illiquid assets, for now at least, but are increasingly making non-core private investments, finds new research.
Sovereign wealth funds in recent years have sought to bring more listed-asset investing in-house, but that trend may be about to turn, says Elliot Hentov of State Street Global Advisors.
Tokyo-based Taro Ogai takes over as Asia-Pacific head of investment consulting, while Jayne Bok assumes a broader role, as Willis Towers Watson continues its business revamp.
Foreign fund managers must improve local operations in China and Southeast Asia to benefit from rising institutional asset outsourcing over the next decade, said Spence Johnson.
Sovereign wealth funds were the best performing category for AsianInvestor's 2016 listing of asset owners and the only one whose top 10 members posted positive AUM growth.
The AI300 survey, revealed in full in AsianInvestor's July issue, saw marked changes among the lowest 100 organisations, with new Korean entrants and Australian super funds on the decline.
State institutions are set to pour up to $300 billion into private equity assets in the next few years, increasingly through direct and co-investments, creating a new market dynamic.
Most official institutions are also planning to raise their alternative allocations, put more resources into risk analytics and financial technology, and increase their level of disclosure.