The dramatic increase in global equity investing by Chinese and South Korean sovereign wealth funds (SWFs) over the past two years has been mainly driven by hired external investment advisers, according to a research study just completed by LS Global Advisory Group, a leading global market intelligence and shareholder identification service provider. In-house managed equity portfolios have not increased significantly during the period, the study revealed.
The SWFs, seeking to capture gains in developed and developing equity markets, are hiring specific types of investment advisers depending on the particular country they are investing in. For example, for investments in Japan, they are engaging long-established and fundamental asset managers including Nomura Asset Management, Goldman Sachs Asset Management and The Vanguard Group. Other major asset managers being used by Chinese and Korean SWFs include Morgan Stanley Investment Management, J.P. Morgan Asset Management, State Street Global Advisors and BlackRock Fund Advisors. (Press Release)