The global economic environment in 2010, although uncertain, was better than that of 2009 as SWFs have turned their eyes toward emerging markets. Asia in particular—not just China, but also India, Singapore, Indonesia and Malaysia—has seen a large influx of SWF investment. Yet Asia is not the whole story. Latin America, a region which previously received little direct SWF investment, has become popular with funds chasing alpha returns.
“Since the global financial crisis, SWFs have built more in-house capacity. This means we can track more of their investments and create a more nuanced picture of SWFs’ investment behavior. It is likely that we will continue to see SWFs taking a larger number of smaller stakes,” said Victoria Barbary, senior analyst at Monitor Group and co-editor. (Press Release)