| The crisis at 1Malaysia Development Berhad may weigh on sovereign investors. The fund has spawned one of the industry’s worst scandals. Allegations of graft involving Prime Minister Najib Razak – which he strenuously denies – have led to a political crisis, a plunging currency, and investigations from Switzerland to Hong Kong.
Emirati backer International Petroleum Investment Company could now be on the hook for $7 billion. Though neither is a typical sovereign wealth fund, more traditional peers could suffer in the fallout. IPIC, chaired by Abu Dhabi royal and Manchester City owner Sheikh Mansour bin Zayed Al Nahyan, aided 1MDB’s debt-fuelled expansion...............................................Full Article: Source
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