New sovereign funds to emerge as crisis eases

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Published at: uk.reuters.com

There is less than meets the eye in this hoopla about SWFs!

August 18, 2009

Analysis by: GLG Expert Contributor

Doubling of money managed by SWF in ten years is just 7 per cent more pa on average and that is both from return on investment and additional funds. So how rapid is it really and how good a return is it? In both cases, not very. Are SWFs really going to invest in risky assets on those assumptions of returns? Not really, especially given their losses in stock markets and alternative investments since 07.

Sovereign Funds: myth or reality?...

August 18, 2009

Analysis by: GLG Expert Contributor

On one side you have countries with effective account surpluses due to the luck of their geography (fe: Norway, Abu Dhabi, Alberta,....) or their hard work transforming them as "location of excellence for their service industries" (fe: S'pore, HK, Switzerland). These countries can develop effective SWF to manage their account surpluses.On the other side you have SWF created which are only "public accounting gimmicks" of countries with "no public account surpluses" (fe: France, Japan....)

Calming Markets May Motivate Sovereign Funds to Seek Aggressive Returns.

August 13, 2009

Analysis by: GLG Expert Contributor

The impact of pooled investment money, including hedge funds, is attributing to an increase in capital within the financial markets.

Growth of sovereign wealth funds limited by the financial crisis

August 10, 2009

Analysis by: GLG Expert Contributor

SummaryYes there will be more funds allocated to long term investments for returns but as countries incur high fiscal deficits and look to fund them through public debt - both domestic and potentially foreign, there may be some sovereign funds less able to make such allocations.