Equity money managers and some in alternative investments are among the most likely to benefit as sovereign wealth funds globally seek to diversify from government bonds — particularly U.S. Treasuries, according to a new survey cosponsored by Pensions & Investments.
About 56% of 146 money management executives who routinely work with the funds said the equity allocation is likely to rise over the next five years, according to “Analyzing SWFs Through Proxy: The Oxford Survey of SWF Asset Managers,” a survey conducted by the Oxford University Center for Employment, Work and Finance.
Real estate will also become a larger portion of SWF portfolios during the same period, according to 53% of the respondents.
The outlook for private equity is less optimistic, with 42% believing fund executives will likely increase allocation to the asset class and 27% saying officials will reduce their allocation to private equity in the next five years.
Details about the survey will be published in P&I's July 13 edition.
