Big, But Not Very Bad

Sovereign wealth funds aren't so scary. That's the finding of a new study of SWFs, the booming investment arms of petro states like Saudi Arabia and emerging giants like China. The recent SWF investments into groups like Citibank and Merrill Lynch raised concerns that these state funds are now rich enough to buy into strategic Western assets. But the Monitor Group study of 785 public SWF investments since 2000 found that only 14 involved sensitive industries (like technology or financial services) in developed countries. Eleven of those were made by Singaporean SWF Temasek, widely considered to be a mature and professionally run fund. Overall, two thirds of the deals done since 2000 were in emerging markets, meaning SWFs are targeting their own countries, not the West.

Big, But Not Very Bad | World