| As financial equity markets further roiled during the precipitous fall of Lehman Brothers, institutional investors realized they would be facing a new landscape for the next decade. Central banks quickly pumped money into the global financial system, hoping to stave off a calamity. A number of sovereign funds took advantage and tactically allocated resources into specific markets of listed equities and distressed assets.
Some funds like the Abu Dhabi Investment Authority got stung backing U.S. financial institutions like Citigroup or the Korea Investment Corporation's lackluster investment in Merrill Lynch. By analyzing sovereign wealth fund transactions, allocation percentages and general trends over the past five to seven years, a clear majority of sovereign wealth funds pushed capital toward countries that participated in significant quantitative easing...............................................Full Article: Source
|