|
|
Nation`s sovereign wealth funds, now at 2,500bln, expected to grow by $500bln/year, any shift will reverberate around markets
From the FT: Highly solvent SWF seeks mutually rewarding relationship. That might sound like an advert in a singles column but it is in fact shorthand for what is rapidly becoming a huge force in global markets and economies. A vast arsenal of money to invest in markets is fast being built up by the swelling ranks of so-called sovereign wealth funds (SWFs), schemes set to invest the growing foreign exchange reserves and savings of countries from Norway to China.
Driven by trade surpluses unequalled as a percentage of the global economy since the beginning of the 20th century, official reserves held by some governments are now astronomically high and there is pressure to earn a better return by putting the moneywith specialised investment agencies.
Morgan Stanley estimated in March that the total funds at the disposal of SWFs may be as high as $2,500bn (£1,157bn, €1,710bn), already around half the gross official reserves of all countries. By comparison, the global hedge fund industry is thought to manage about $1,500bn to $2,000bn of assets, some of which may include existing SWF money. The SWFs are growing fast as countries reap the benefits of high oil prices or large trade surpluses. "If we are right that these funds will grow by roughly $500bn a year...Full article: ...................... To view our full article Click here
|
|
RSS
