Most Popular Overseas Office for Sovereign Funds
Despite the current gloom of equity markets and a “never-ending” low-yield environment, sovereign investors are continually seeking new markets to tap into. As sovereign wealth funds and large pensions grow in assets under management and expand geographic portfolio diversification, the need to open up an overseas office to source investments becomes real. Sovereign funds have been the most aggressive institutional investor class of opening up offices overseas compared to public pensions. This is to also say that Canadian public pension investors clearly buck the trend of pensions and have opened up offices in places like Singapore, London and Hong Kong. Which cities have the most outposts for sovereign funds and pensions? Which cities tend to be the first overseas office for wealth funds? These questions are not only important for the host countries but for asset managers and investment banks for planning purposes.
SWFI conducted a research study on which cities attract the most large public investors to open an overseas office, splitting groups into wealth funds and all funds (sovereign funds, pensions, etc.) The results were fascinating and quite telling. For sovereign wealth funds, the most popular city was London, followed by New York and then Beijing at number three. Keep in mind, in the study, SWFI did not count the headquarters of the wealth fund or companies that it controlled that were not strongly tied to the parent entity. Hong Kong, Singapore and Mumbai quickly take the next spot for both all funds and wealth funds. San Francisco is also thrown into that cohort. The fascinating part to take from this is that public institutional owners have clearly favored London, but have also chosen Asia as a prime destination for future investments. Furthermore, the reason of wealth funds and pensions barely selecting Beijing over Shanghai and Hong Kong could illustrate the Chinese government’s influence in major industry decisions.
Overseas Office Ranking
[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
Contact the writer or creator of this article or page.
Questions or comments: support(at)swfinstitute(dot)org
Follow on Twitter at @swfinstitute and @sovereignfunds
Learn, Attend and Network: Institutional Investor Events and Summits
Go Back: HOME: Sovereign Wealth Fund Institute