After shock of redemptions, sovereign funds rethink strategies | Reuters:
"Having gone from bumper cash inflows to redemptions in just two years, many sovereign wealth funds have been forced to shake up their investment strategies to embrace both super-liquid safe assets with more esoteric illiquid plays to bolster returns.
If the price of retaining easy-to-sell assets to meet sudden government cash calls is near-zero yields in cash deposits or Western government debt, then the $6.5 trillion sovereign fund sector will have to claw back returns by simultaneously moving deeper into riskier, less-liquid territory.
Changes run from radical rethinks about the purpose of such funds such as Saudi Arabia's $3.5 billion investment in ride service Uber to more nuanced shifts such as Qatar's decision to use more external managers to run its money."
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