WSJ – The financial crisis taught most of the investing world a lesson about managing risk. Asia’s sovereign-wealth funds appear to be taking some lessons from bad investments to heart.
After the initial embarrassment of heavy losses on investments in Wall Street, state-owned investors in China and Singapore are reshaping their strategies by diversifying their investment scope and focusing on markets where they have better knowledge. They are also attracting talent more willing to consider jobs at these funds, although all efforts in this direction haven’t been successes. These two countries’ funds are Asia’s largest, and Singapore’s funds are viewed as models by other countries, making them essential to understanding how other Asian sovereign funds from South Korea and Malaysia will reshape themselves.
