08.06.2015 - Lower oil price erodes sovereign wealth funds
Sovereign wealth funds had their best ever year in 2014 in terms of asset increases, but the falling oil price is expected to slow the future growth of these funds substantially. The assets held by sovereign wealth funds, created to safeguard money for state expenses, increased by a record $1tn in 2014, taking total assets to a high of $7.1tn. But with the growth of sovereign wealth funds tied closely to the price of oil — 60 per cent of their assets originate from commodity exports — asset growth is predicted to slow in 2015, according to figures from TheCityUK, the financial lobbying group. Assets of sovereign wealth funds grew by 12 per cent on average in the previous five years, but the lobby group predicted asset growth would decelerate to just 4 per cent in 2015...............................................Full Article: Source
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