Connect with us

SWFI Global Asset Owner Survey Discovers Investors View US Tax Reform as Driver for Equities



According to the SWFI Global Asset Owner Survey taken in August 2017, institutional investors are looking to overweight in international and global equities, while pulling back in listed infrastructure and U.S. passive fixed income. The quarterly survey targets sovereign funds, pensions, endowments, superannuation funds, foundations, government funds, family offices and other asset owners. Totaled estimated survey sample size was US$ 1.012 trillion of assets under management. The clear majority of respondents have a long-term orientation.

Only available for participants and subscribers.

Here are some key findings:

    U.S. tax reform is to be the largest driver of equity prices in the next 6 months. The price of oil was second.

    A majority of respondents plan to increase allocation to Europe, ex-UK in the next 12 months.

    30.77% of the respondents plan to decrease allocation to credit strategies in the next 12 months.

    A majority of respondents see geopolitical risk as the greatest factor against financial market stability.

    Long High-Quality Equities appears to be the most crowded trade for now.

    About 27% of the respondents plan to increase allocation to emerging market debt in the next 12 months.

“Pensions and sovereign funds see U.S. tax reform as a major boon for equity prices,” says Michael Maduell, President of SWFI.

He adds, “Geopolitical risks in the Middle East and parts of Asia, including North Korea, remain in the psyche of global asset owners. According to the survey results and SWFI data, sovereign funds and long-term asset owners are cherry picking investment opportunities in Europe, ex-UK.”

More About the Global Asset Owner Survey

This is SWFI’s inaugural quarterly survey for asset owners. To participate in the next quarterly survey, CONTACT

SWFI intentionally excludes 3rd party asset and fund managers in this survey. As an independent authority on asset owners, SWFI feels that it is uniquely qualified and strategy agnostic to show a true “lay of the land”.

China and Russia Buy Up More Physical Gold



The worst fears of the Federal Reserve may be coming true. The barbarous relic is once again offering some resistance to Fed policy as it maintains its uptrend from mid-November, and is being snapped up from central banks worldwide. Former Fed chairman Paul Volcker shared the central bank view that “Gold was the enemy.” If so, the enemy is gaining ground. China’s gold reserves quietly grew from December 2018 to February 2019. The People’s Bank of China disclosed in February 2019 that it increased its gold reserves by 10 tonnes that month, following purchases of 11.8 tonnes in January 2019, and 9.95 tonnes in December 2018. Goldman Sachs has listed central bank purchasing as the reason for the uptrend. Goldman Sachs expects to see gold at US$ 1,400 over the next six months, which would lift it well above its long-held resistance at US$ 1,350. China’s gold holdings are now US$ 79.5 billion. China, which is emphasizing diversification from the U.S. dollar, has been a fan of precious metals for years, and it has been encouraging its citizens to purchase gold and silver for a decade, when previous controls on precious metals were done away with. Now anyone in China can trade gold internationally with the swipe of a card.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

AP1 Selects Approved Managers for Emerging Market Equities Mandate



Sweden’s AP1 chose 14 external fund managers for its 45.3 billion SEK allocation to emerging market equities. These are approved managers for AP1, but not all of them will manage money for this mandate.

The managers selected are:
Aberdeen Standard Investments
First State Investments
Fisher Asset Management (Fisher Investments)
GQG Partners
JP Morgan Asset Management
KBI Global Investors
Legal & General Investment Management
RBC Global Asset Management (part of Royal Bank of Canada)
UBS Asset Management
Wellington Management

Continue Reading

SWFI First Read, March 20, 2019



Bentall Kennedy Buys Stockton Logistics Center

Bentall Kennedy, through a U.S. fund it manages, acquired a NorCal Logistics Center in California for US$ 105 million. The property is located at: 4611 Newcastle Rd, Stockton, CA 95215.

Point Raises $122 Million

Point is a company that provides shared home equity financing. Point raised US$ 122 million in funding in an investment round led by Prudential Financial and DAG Ventures. Other investors in the round include Andreessen Horowitz, Ribbit Capital, Bloomberg Beta, Financial Venture Studio, and Enterprise Community Partners.

FBI Probes Boeing over 737 MAX

The Seattle Times reports the U.S. Federal Bureau of Investigation (FBI) is conducting a criminal probe into the Boeing 737 Max. Part of the probe includes whether Boeing staff had unduly influence and possible kickbacks to government officials at the Federal Aviation Administration (FAA).

Continue Reading


© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.