State-owned sovereign wealth funds: The new rulers of finance
An in-depth look at the state-owned sovereign wealth funds that are now dominating the attention of the world's financial markets. As investors digest news of of Adia's $7.5 billion investment in Citigroup, read Euromoney's unrivalled guide to the different strategies and investment styles of these hugely important funds – and learn how investment banks are trying to maximise their business with them.
Euromoney is the leading source for information about these funds. In April 2006 we were the first magazine to gain access to ADIA, and the facts and figures revealed in that story are used by many other information providers to this day. Get up to speed on Adia and the wealth funds today on euromoney.com.
By Sudip Roy
State-owned, cash-rich and increasingly influential, sovereign wealth funds have emerged as the most controversial players in the financial markets. All the constituents – banks, private equity, corporates, hedge funds – want a slice of their action. Just how powerful will the funds become?
It is one thing to want a sovereign wealth fund but to actually set one up is a long and challenging process.
The proliferation of sovereign wealth funds is an opportunity and challenge for investment banks and asset managers. The opportunity is clear: potential business.
The Future Fund, created last year to cover long-term pension liabilities for the Australian federal public sector, is very much in its infancy but is finally managing money.
In a world of increasingly powerful and mistrusted sovereign wealth funds, Temasek, the investment arm of the Singapore state, stands apart in terms of governance, openness and performance, claims Simon Israel, its executive director.
The US bank recovered from a similar crisis in the early 1990s.