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Alternative Market Briefing

Sovereign Wealth Funds keep evolving and are increasingly sophisticated

Monday, April 01, 2019

Laxman Pai, Opalesque Asia:

Sovereign Wealth Funds keep evolving and are increasingly becoming more sophisticated. Although there is no such thing as a standard asset allocation, a strong correlation exists between a fund's maturity and size, and its portfolio structure, according to a report compiled by Diego López, Managing Director of Global SWF, an advisory boutique specialized in Sovereign Wealth Funds and other Institutional Investors.

Those SWFs that have been around longer are countering the traditional mix of fixed income and public stocks with more real assets and private equities, said a report report made available to Opalesque by Global SWF.

The report looks at a sample of 42 SWFs (Savings, Stabilization and Development Funds) and 13 Pension Funds, and their investment profile over time. Asset allocation continues to be determined by source of wealth, macroeconomic purpose, liabilities, governance, accountability, risk tolerance, target markets and return objectives, it said.

Saudi Arabian PIF set yo become the "world's biggest SWF" by 2030

The Public Investment Fund (PIF), from Saudi Arabia set to become the "world's biggest SWF" as part of the Kingdom's succession into Salman al Saud and his son Mohammad (as crown prince) together developed Saudi Vision 2030.

According to a the report, PIF actually is 47 years old and was established at the beginning of the 70's as a development fund to channel oil wealth into domestic, strat......................

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