What to be afraid of 3 trillion dollars
2022.12.06 12:54
What to be afraid of 3 trillion dollars
Budrigannews.com – According to a survey released on Tuesday, global public pension schemes and sovereign wealth funds with assets of more than $3 trillion are concerned about a combination of economic slowdown and higher inflation in the next 12 to 24 months.
According to OMFIF, a think tank that conducted a survey of 19 funds in Europe, North America, the Middle East, Asia Pacific, and Latin America, investors face significant difficulties switching their portfolios to cope.
Nearly half of those surveyed cited persistently high inflation as their top long-term concern.
Over 40% of the funds plan to put more money into real estate and infrastructure in order to get more yield. They also want to hedge their positions by putting more money into inflation-linked government bonds.
Due to concerns about geopolitics, market transparency, regulation, and capital controls, the investors are also looking to reallocate away from the renminbi (yuan) of China.
Over 80% of respondents said they planned to invest more in renewable industries, indicating that climate change is another concern.
However, the increase in assets of public pension funds in the past year provides them with some protection from market volatility.
According to OMFIF, the top 100 public pension funds’ assets under management increased by 17% in 2021 to $17.4 trillion. Resources of the best 50 sovereign abundance subsidizes rose 23% to $9.8 trillion.
The survey was conducted by OMFIF between August and October 2022.
