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SWFs pull $16.2 billion in H1
(MENAFN) Sovereign wealth funds (SWF), including the state-owned investment funds in the GCC region, pulled $16.2 billion from third-party asset managers in the second quarter, up from a revised $10.1 billion in the first quarter, according to the latest data from research firm eVestment.
The outflows, according to the data, were the second largest in five years, exceeded only by the $22 billion withdrawn by sovereign wealth funds in the third quarter of 2015, when oil prices tumbled around 25 per cent.
Peter Laurelli, global head of research at eVestment, which collates data from 4,400 firms managing money on behalf of institutional investors, said SWF flows to external money managers appeared "highly correlated" to global commodity prices, particularly oil prices.
"Continued redemptions could be a sign SWFs expect continued pressure on commodity prices in coming quarters," he said.
The second-quarter data also disclosed the highest proportion of external managers reporting SWF net outflows, at 72 per cent, compared with just 28 per cent reporting net inflows.
The outflows, according to the data, were the second largest in five years, exceeded only by the $22 billion withdrawn by sovereign wealth funds in the third quarter of 2015, when oil prices tumbled around 25 per cent.
Peter Laurelli, global head of research at eVestment, which collates data from 4,400 firms managing money on behalf of institutional investors, said SWF flows to external money managers appeared "highly correlated" to global commodity prices, particularly oil prices.
"Continued redemptions could be a sign SWFs expect continued pressure on commodity prices in coming quarters," he said.
The second-quarter data also disclosed the highest proportion of external managers reporting SWF net outflows, at 72 per cent, compared with just 28 per cent reporting net inflows.
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