>2010: The return of the Sovereign Wealth Fund (ING VYSYA)
■ Having dominated the headlines in 2007 and 2008, Sovereign Wealth Funds (SWF) have been more introspective in 2009, looking to help beleaguered domestic economies.
■ Yet the resurgence of global trade volumes and the prospect of continued heavy FX intervention from Asian authorities suggest FX reserves and SWF assets under management (AUM) will rise.
■ The lack of transparency means that sizing the SWFs remains difficult. We believe AUM are closer to the lower end of the US$3-5tr range. We look for these to grow to US$6-8tr by 2015.
■ Yet transparency should improve in 2010 as SWFs implement newly agreed principles.
■ High-profile funds, such as China’s CIC, will probably take on more risk. CIC investment since July 2009 has centred exclusively on the energy sector.
To read the full report: SOVEREIGN WEALTH FUND
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