Reuters – The fallout from the global credit crisis is changing, or perhaps correcting, the perception that sovereign wealth funds (SWFs) or state-owned investors will always patiently ride out paper losses on their investment.
Sovereign funds lost an estimated USD600 bn over the past two years as the credit crisis sent global stock markets into tailspin and large stakes in Western banks imploded.
Now the USD3 trillion sector is taking longer than many had expected to emerge from the refuge of safe, low-yielding securities, dashing hopes that they would help sustain market recovery into next year by buying and holding well valued equity, commodities, property or other alternative assets.
