Tensions rise between central banks and SWFs

Central banks in Asia – as elsewhere – are increasingly looking at new types of investment* with a view to diversifying their exposure and boosting returns. This is raising various issues, one of which is the effect it is having on their relationships with their sovereign wealth funds. In some cases these are already tense, given the competition between the two entities; moves into new asset classes by central banks may be causing further strains. “When a sovereign wealth fund i…