Funding dries up for sovereign investors

Sovereign-wealth-fundsSovereign wealth funds, many of which have been affected by low oil prices, are becoming accustomed to a dearth of new funding.

Some funds, especially in Middle Eastern oil-producing companies, have taken back their money, with the average sovereign fund withdrawing or cancelling 7% of their assets, according to the survey commissioned by Invesco.

However, Alex Millar, head of Middle East and Africa institutional sales, says there is a mixed picture with many Middle East sovereigns adapting to the difficult environment.

“Some have ceded assets to governments without cancelling long-term investments, while others have not been called upon at all for withdrawals over the last 12 months,” he said.

The survey, carried out by NMG Consulting, was based on 77 interviews with individuals working at sovereign wealth funds, state pension funds, central banks and government ministries.

©2016 funds global mena

Related Articles