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.
Last month $2.56 billion in QFII quota was handed out, with almost half going to sovereign funds from Abu Dhabi and Kuwait. More RQFII quota was also awarded.
Global research head Suzanne Duncan says sovereign wealth funds and others are resorting to herd behaviour when confronted with the complexities of illiquid alternatives.
There is fear about a mooted 10% tax being applied retrospectively to gains made by QFII investors trading A-shares. Regulators are tipped to unveil answers in the next six months.
They are urged to court sovereign wealth funds in frontier markets as established players increase in-house expertise. All the same, SWF volumes have tripled in five years.
Four sovereign wealth funds held direct talks in Moscow over their participation in a government-backed Russia investment fund, AsianInvestor has learned.
Last week GIC celebrated its 30th anniversary and enlisted a roster of speakers, including from other sovereign wealth funds, to provide it with ideas.
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.