Sovereign wealth funds (SWFs), many of which have seen their portfolios decline sharply in recent months, are cutting back equity investments until the market bottoms out in the second half of the year, according to a study.
The report comes as many state-owned investment funds in the GCC region, such as the Abu Dhabi Investment Authority and Kuwait Investment Authority, have taken a battering on their stock-market investments. Analysts suggest they may have incurred losses of between 25 per cent and 30 per cent.
Two of three senior SWF executives said they were not investing in equity markets at present, according to a survey by Financial Dynamics International (FD), a financial and corporate consultancy. Only 10 per cent of the surveyed executives said they were still investing. Managers surveyed account for more than half of the US$5 trillion (Dh18.36tn) in funds globally held by SWFs.
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