Sovereign Wealth Funds (SWFs) from the Gulf swooped in to buy stakes in troubled financial institutions during the financial crisis – now there is speculation they are sizing up stakes in BP as the oil giant seeks to raise capital following the Deepwater Horizon disaster. Investors from the Middle East were running a ruler over
The $300 billion China Investment Corporation (CIC) aims to sidestep official barriers to investing in the US by offloading its stakes in home-country banks. The proposal would see the sovereign wealth fund (SWF) relinquish responsibility for the Chinese government’s majority stakes in the country’s largest banks, such as Bank of China, the Financial Times reported.
With less institutional flows forecast in the next few years, asset managers will need to implement a convincing “fiduciary overlay” to win business from large investors.
There are only two asset classes really worth investing in for the “seven lean years” ahead, according to Jeremy Grantham (pictured), co-founder and strategist at famously bearish funds manager GMO.
As pension funds look at new ways to assess their asset allocation, including the adoption of a risk-premia approach, Simon Mumme delves into the latest thinking on whether markets reward investors for the big swings and roundabouts.
The shock of asset class correlations going to one during the global crisis has prompted new ways to look at asset allocation among institutional investors and managers, which have started to drill down into the risk factors driving markets.
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