State Street Global Advisors expects to boost its $400 billion in sovereign assets under management, with Asia a key driver – despite a slowdown in the region's reserve growth.
Asian central banks have been less active than those in other emerging markets, and European central bank activity remains flat. But other investors are showing strong demand.
Sovereign institutions are accumulating assets at a blistering pace and need to find a home for this surplus capital; hence even central banks are mulling higher-yielding asset classes.
Sovereign wealth funds shifted towards more passive strategies and increased equity exposures last year, according to a recent survey. But there is potentially a lot more for them to invest.
The country consumes relatively little gold per capita compared to other nations, yet it could exhaust its domestic supply within six years, says the World Gold Council.
Foo takes on responsibility for Asian sovereign wealth funds and central banks at BNP Paribas, but will continue as CEO of Fortis BankÆs Singapore branch until Fortis is fully integrated with the French bank.