Mubasher: The Sovereign wealth funds (SWFs) withdrew money in a slower ratio from the international stock and bonds markets’, reaching $3.7 billion in the third quarter of 2017, compared to $7.7 billion in Q2-17, Reuters reported on Thursday, citing eVestment's data.
The net cash outflows for the SWFs dropped for the 13th consecutive quarter, but it is with decreasing ratio since 2014.
“Oil-backed sovereign funds have been under pressure since oil prices tumbled from their mid-2014 highs of $115 a barrel to below $30 a barrel in January 2016, forcing governments to dig into their coffers to fill budget gaps,” Reuters added.
“My sense is that whatever the driving factor which has caused so many SWF assets to be removed from external asset managers, has for the most part stabilized,” global head of research at eVestment, Peter Laurelli stated.
