LONDON (Reuters) – The world’s biggest sovereign wealth funds may see their bumper profits of 2012 diminish this year as recent diversification into high-growth emerging markets starts to produce disappointing returns.
Their long-term horizon may allow many sovereign funds, which globally control $5 trillion of oil and other windfall assets, to weather losses. But the sheer size of these funds may increasingly limit the window of opportunities even when emerging markets recover.
LONDON, Aug 16 (Reuters) – Investors may have squeezed the
richest juice out of 2013′s top investment themes, with a
recovery in developed markets, the ‘Great Rotation’ out of bonds
and flight from emerging markets all seeming largely played out.
As these strategies start to look overcrowded and tired,
asset managers may see few incentives to chase them further,
especially into the traditionally bumpy month of September.
From academic paper:”Active management is a loser’s game bc for every winner there’s a loser and post-fees there are only losers on average”
LONDON, Aug 13 (Reuters) – Investors have boosted their
allocation to euro zone stocks to its highest in 5-1/2 years at
the expense of emerging markets as confidence about the region’s
growth improves, a closely-watched survey showed on Tuesday.
The monthly fund managers poll from Bank of America Merrill
Lynch showed a net 17 percent of investors are overweight the
euro zone, the highest level since January 2008.