COMPASS RFPs: Sovereign Wealth Funds Went Back to Active Equity Searches in 2020
Posted on 02/23/2021
SWFI Global Asset Owner Terminal (SWFI.com) has a widely-used service called Compass which tracks RFPs, informal searches, and business leads from asset owners such as sovereign wealth funds, pensions, endowments, and other institutional investors. For the main category of “Active Equities”, for 2020, the dollar amount of opportunities totaled US$ 156,420,129,700 versus US$ 63,912,018,350 in 2019 and US$ 127,541,519,166 in 2018. Some large sovereign wealth funds rejigged their internal investment teams before COVID infected the world economy. Compass opportunities and RFPs that were tagged value equities and growth equities were about the same in 2020. Active U.S. Equities were in higher demand versus Active Global Equities by about US$ 56 billion in 2020. SWFI can postulate that sovereign wealth funds and large pensions anticipated economic recovery in 2020 and highly accommodative fiscal and monetary policy, combined with receding policy uncertainty.
While the quarterly SWFI Global Asset Owner Survey is forward-looking, tracking transactions and Compass entries in SWFI.com can show where sovereign wealth funds and pensions could be heading.