Sovereign Wealth Fund Investment Trends – January 2016
by Eliot Kalter
1. SWF Overview
- Overall size, growth, funding sources and relevance
- What factors have driven their growth?
- Mandates for the funds and asset allocation
2. Drivers of SWF Growth
- Global balance of payments imbalances
- Central Bank decision to transfers resources
3. Drivers of SWF Asset Allocation Decisions
- SWF investment mandate reflects contingent liabilities and liquidity premium
- SWF size, age and capacity are also important factors affecting asset allocation
- Inward vs. outward investment mandate
4. SWF Appetite for Real Estate Investments
- Which SWFs have the biggest current holdings and future appetite?
- Strategy and regional preferences
5. Impact of the Current Economic Conditions
- Low oil prices; lower China growth, currency devaluation and stock market volatility