Gulf SWFs Overhaul Their Strategies For A ‘Lower For Longer’ World

Gulf governments were forced to raid their wealth funds to counter the oil price drop in late-2014. Several have since changed tack and rebuilt reserves – overall GCC SWF holdings are up 16% over the past three years. But, as they adapt to the new low oil price era, strategies are evolving with their focus turning inwards.

The collapse in the oil price from mid-2014 led sovereign wealth funds (SWFs) in the Gulf to withdraw money from asset managers at the fastest rate on record as they rushed to shore up their economies.

Around $19bn was withdrawn by state institutions during just the third quarter alone of 2015, according to data provider eVestment.

Asset managers Aberdeen Asset Management, Northern Trust, Franklin Resources and Old Mutual all reported they were hit by redemptions from Gulf funds in 2015. Gulf SWFs also pulled money from the asset management arms of US banks State Street, JPMorgan, BNY Mellon and Goldman Sachs as well as US investment manager Invesco. (CONTINUED - 1992 WORDS)

DATA INSIDE THIS ARTICLE

table GCC SWF Assets ($Bn): Up 16% Over Last 3 Years Despite Oil Price Crash