The South China Morning Post has reported on the results of an annual study (the Invesco Global Sovereign Asset Management Study 2014) conducted by Invesco which found that global sovereign wealth fund investors made more investments in emerging markets last year and may continue to do so this year despite an underlying preference for developed markets.
China, Africa, Latin America, India and emerging Asia attracted more funds from sovereign wealth investors last year, with the trend expected to continue this year, but the study also found that developed markets remained fundamentally more attractive thanks to their “depth, stability and diversification benefits.”
In addition, 52% of sovereign wealth investors boosted exposure to real estate last year while 29% did so to private equity. Investment in global infrastructure also increased markedly with a particularly clear trend in Asia where 71% of sovereigns raised allocations to the segment, a big jump from just about 50% in 2012.
To read the whole article, Sovereign funds target emerging markets, go to the website of the South China Morning Post.
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