Posted on 03/30/2008 10:11:18 PM PDT by TigerLikesRooster
Sovereign wealth funds grow to $3,300bn
By John Willman in London
Published: March 30 2008 22:30 | Last updated: March 30 2008 22:30
Sovereign wealth funds grew 18 per cent last year as commodity prices surged and the foreign exchange reserves of some Asian countries continued to rise, according to research from a City of London think-tank.
The funds now manage assets worth $3,300bn and will oversee more than $10,000bn of assets by 2015, estimates International Financial Services London, which promotes UK financial services round the world.
The figures are published on Monday as bankers, regulators and sovereign wealth fund representatives gather in London to discuss policies to build the confidence and trust needed to encourage investment by the funds outside their countries of origin.
The City, which already has representative offices of several of the biggest sovereign wealth funds, wants to persuade others to choose the UK for their main base outside their home country.
“Sovereign wealth funds have aroused unnecessary controversy in other parts of the world based on unfounded fear and suspicion – and, in some cases, outright ignorance or political expediency,” said Michael Snyder, chairman of the City’s policy and resources committee.
“The UK’s experience is that, with the right safeguards, openness and cross-border trade in goods benefits not only the countries directly involved but the overall efficiency of the global economy. It’s not who owns the funds that counts – but how they behave.”
Most of the largest funds are controlled by oil-rich states such as Norway and Gulf states, and by Asian countries such as Singapore and China, whose trade surpluses have built up big foreign exchange reserves.
However, IFSL says other sovereign investment vehicles such as pension reserve funds, development funds and state-owned corporations control another $6,100bn of assets.
There is also $5,300bn of official foreign exchange reserves held in more liquid investments, five times the amount deployed in sovereign wealth funds.
Since the start of the US subprime lending crisis last summer, sovereign wealth funds have invested more than $60bn in return for large stakes in predominantly US and Swiss banks, according to IFSL. They have also taken large stakes in the London Stock Exchange and Sweden’s OMX exchange as well as Budapest airport and Carlyle, the US private equity group.
Ping!
Idiots in this Country are chasing away large chunks of investment money due to paranoia.
Sharia enforced by company policy in the future. Dubai, Abu Dhabi and the rest of the muslim states are not like Japan was in the 80’s. This is another way to force sharia down our throats. or through our necks or whatever.
Say hello to your new foreign masters. You like job with a ChiCom company on American soil?
You must see dead people.
WallMart gets most of their stuff from China. I guess all their employees must be signed up for Sharia.
I’m pointing to the soveriegn funds from the Gulf Arab states (Dubai and the UAE). Much more dangerous than the ChiComs. Hint: who supported the Taliban? the UAE or China? Who implements Sharia? UAE or China?
Notice how the article conveniently left off Arab and Muslim from the Gulf States - we are not talking about Alabama and Mississippi here.
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