Friday 26 June 2020

RPT-Rainy day hastens sovereign wealth funds' refocus to home - Reuters

RPT-Rainy day hastens sovereign wealth funds' refocus to home - Reuters:

Famed for snapping up glitzy real estate and stakes in troubled international banks during the global financial crisis, sovereign wealth funds are investing more at home, a trend set to accelerate in the wake of the economic carnage wrought by COVID-19.

Some of these state-owned entities, such as Singapore’s Temasek Holdings, already acted more as development funds aimed at supporting their countries’ economies, but many of them are considered “rainy day” funds - meaning they will have a big role in helping governments to manage the fallout from the pandemic.

There has been a flurry of recent domestic deals, such as Turkey’s fund injecting 21 billion lira ($3.1 billion) into three state banks and Temasek supporting a $1.5 billion rights issue by Sembcorp Marine.

That’s in addition to withdrawals from the Nigerian and Norwegian funds to help their governments deal with the economic impact of the virus.

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