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Benedicte Gravrand, Opalesque Geneva:
Sovereign wealth funds (SWFs) are, for hedge funds, institutional investors with big potential.
According to an article in Preqin’s latest newsletter, which looks at their investment preferences, SWFs currently manage an aggregate $4.62tn (up from $3.05tln in 2008). 38% of SWFs invest in hedge funds (compared to 36% in 2011 and 37% in 2010) and a further 2% are considering allocating for the first time. The average total assets of SWFs that have investments in hedge funds stands at approximately $136bn.
TheCityUK’s Sovereign Wealth Funds 2012 report, which came out in February, notes that the assets held by SWFs climbed 9% to $4.8tln in 2011. The financial advisor expects SWFs’ assets to grow to $5.2tln by the end of 2012, as inflows from trade surpluses and commodities’ exports continue. And the SWF Institute recently reported that the combined AuM in SWFs had gone from $4.55tln in March 2011 to $4.96tln in March 2012, thanks to surge in global oil prices and a relative stabilization in the prices of other asset classes, Emirates247 said.
According to Preqin, a global research house...................... To view our full article Click here
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