Getting the basics right
Financial institutions weigh up the opportunities
Fight on for Aussie’s future prizes
Temasek: A fund apart?
SOVEREIGN WEALTH FUNDS are reshaping the financial markets. Although the estimated $2 trillion of assets that they manage is small beer compared with the $53 trillion that mature-market institutional investors oversee, the speed at which the state-owned funds are accumulating assets is astonishing. Powered by high commodity prices and surging foreign exchange reserves, they will grow by $1.2 trillion a year to reach $7.9 trillion by 2011, reckons Merrill Lynch.
Analysts might dispute the precision of these figures but few dispute that sovereign wealth funds are becoming a force in the financial markets. On an individual basis, the six biggest funds are quickly catching up in size with the leading global portfolio managers, such as Barclays Global Investors, State Street Global Advisors and Fidelity. Already the unleveraged portfolio sizes of these sovereign funds are about as large as the leveraged portfolios of the three biggest private equity firms or hedge funds, according to Citi, assuming a typical leverage ratio of between four and seven times.
You do not currently have access to this content. To gain access visit the subscription page or call our hotline on +44 (0)207 779 8999.
Are you already registered? If so, please enter your username and password here to continue.
Know your email address?
Click here for your password.
Questions about your subscription status?
Email us or call: +44 (0) 20 7779 8888
Subscribers to Euromoney benefit from:
- Exclusive access to euromoney.com - Read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 2000.
- 12 monthly issues of Euromoney magazine
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
Click here to subscribe