One in two sovereign funds invest in alternatives-report

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LONDON, March 10 (BestGrowthStock) – Around one in two sovereign
wealth funds invest in private equity, real estate and
infrastructure assets to seek a diversified source of returns, a
report showed on Wednesday.

The report from Preqin, alternative assets research firm,
also showed that assets managed by the world’s sovereign wealth
funds rose 9 percent to $3.51 trillion and more than a quarter
of total SWF assets are held by funds in Abu Dhabi, Norway and
China.

Preqin said 55 percent of the funds are known to invest in
private equity, 51 percent in real estate and 47 percent in
infrastructure. More than a third of them invest in hedge funds.

Sovereign wealth funds have been increasingly investing in
alternative assets as some of them suffered huge losses after
pouring money into Western banks at the height of the crisis.

“The increase in the aggregate assets under management of
sovereign wealth funds, which has been assisted by the start of
the global recovery, demonstrates that their collective
influence in the world of institutional investors has not
diminished,” said Sam Meakin, managing editor of the report.

“Many SWFs that had put portfolio diversification plans on
hold are now considering resuming these plans, and their
appetite for alternative investments continues to increase.”

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(Reporting by Natsuko Waki; editing by Stephen Nisbet)

One in two sovereign funds invest in alternatives-report