Wed, Oct 15, 2025
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Sovereign wealth funds will continue to grow in prominence - UBS

Wednesday, July 04, 2012

amb
Massimiliano Castelli
Bailey McCann, Opalesque New York:

As the global financial landscape becomes more heavily regulated and previous sources of capital either stay away from the market or are prohibited by regulators, sovereign wealth funds are likely to gain in prominence, according to Massimiliano Castelli, Head of Global Strategy for Sovereign Wealth Funds(SWFs) at UBS Global Asset Management. In a recent interview on Opalesque Radio, Castelli, explained that the global economy is entering into a,"war for capital," which will make traditional sources of capital more scarce, but may also provide increased opportunity for SWFs which have more flexibility when it comes to investing.

Currently, SWFs manage approximately $5tn in assets, a larger sum than the amount of assets managed by hedge funds or private equity but still less than that managed by the largest institutional investors or insurance companies. This number is rapidly increasing, however, and Castelli forecasts that it will reach between $8-10tn by 2016.

SWFs have a unique role relative to other investors managing trillions of dollars in assets. Unlike pension funds or insurance companies, SWFs typically have no outstanding liabilities and work with little to no leverage. They are also able to invest on a longer time horizon, as they are often searching for long-term value to add to the fund rather than more immediate gains. As such, &q......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Global fintech investment slumps to seven-year low of $95.6bn[more]

    Laxman Pai, Opalesque Asia: Global fintech investment plummeted to $95.6 billion across 4,639 deals in 2024, marking its lowest level since 2017, as investors grappled with persistent macroeconomic challenges and geopolitical tensions, revealed a study. According to the Pulse of Fintech H2'

  2. Opalesque Exclusive: Private capital deal value climbed 19% in 2024[more]

    Bailey McCann, Opalesque New York: Private capital deal value climbed 19% in 2024, according to the latest data from the Global Private Capital Association. Growth was driven by big-ticket investments across Southeast Asia, Latin America and Central & Eastern Europe (CEE). Investor confidence

  3. Opalesque Roundup: Citco: 77% of hedge funds achieved positive returns in January 2025: hedge fund news[more]

    In the week ending February 21st, 2025, a report revealed that hedge funds enjoyed one of their best opening months this decade in January, as Equity and Multi-Strategy funds posted strong returns. Funds administered by the Citco group of companies (Citco) delivered a weighted average return of 4%,

  4. Opalesque exclusive: Permuto's new equity unbundling product to change investment model[more]

    Opalesque Geneva for New Managers: Here is a different way of owning stocks coming to you soon: the option of holding just the dividend portion of a stock, independent of its price movements. Or capturing the stock&

  5. Opalesque Exclusive: Hedge funds outperform mutual funds in managing extreme risk contagion - key insights for investors[more]

    Matthias Knab, Opalesque for New Managers: Hedge funds and mutual funds are among the most prominent vehicles for investors seeking growth and diversification. However, a critical question persists: which fund ty