Wealth money is warm for active management – and China

Written by Libyan George and Mark Jones

LONDON (Reuters) -The world’s sovereign wealth funds turn into the management of active funds and investments in China, while central banks diversify reserves to overcome a volatile global environment, and showed the INVESCO survey of sovereign funds and central banks that manage $ 27 trillion in assets.

However, the dollar prevails over the upper, as the largest part of the central banks says that it will take two decades to evacuate – if any – as a higher backup currency despite the increasing concerns.

“Institutions exceeding $ 100 billion – and therefore the very large institutions – these are the most interested in moving more to active management,” said Rod Rangero, head of the official institutions of Ingsku.

He added that the money liked the negative management in the predictive market conditions, but it is no longer the case. “

On average, wealth funds have made 9.4 % returns last year, which is the second best performance in the poll history.

However, market fluctuations and the implementation of the skin-related fears-and over 10 years increased, large concerns focus about climate change and high sovereign debt levels.

More than 70 % of 58 central banks included in the survey, for example, are now believed that the height of US debt negatively affects long -term expectations for the dollar.

However, 78 % believes it will take more than two decades to start a reliable start to appear Greenback. This is a leap of 58 % last year, while only 11 % of the central banks now view the euro as it is gaining ground compared to 20 % last year.

China Fomo

The survey was conducted between January and March – in front of the “Tahrir Day” tariff advertisements for US President Donald Trump and at the height of the excitement about the emergence of Debsik Amnesty International in China.

Wealth funds are witnessing a great return in caring for Chinese assets with approximately 60 %, intending to increase the allocations there in the next five years, specifically the technology sector.

This number jumps to 73 % in North America despite the increasing United States tensions, while in Europe it is only 13 %.

The survey said that wealth boxes are now approaching the China sectors that are driven by innovation with “the strategic urgency they have ever headed towards the Silicon Valley.”

“There is a little fomo,” Rangero explained, the point of view that “I need to be in China now” because it is formed to be a global leader in semiconductor, cloud computing, artificial intelligence, electric cars and renewable energy.