08/11/2013
Asian SWFs continue to invest in Europe
The financial crisis has not put Asian sovereign wealth funds off the European territory. These sovereign funds are continuing to invest directly in Europe, although they generally use intermediaries and local partners to invest in the United States, according to the SWF Institute.The two Singapore SWFs in particular, GIC Private Limited and Temasek Holdings, have increased their presence in Europe. In the past few months, GIC Private has become the second-largest private shareholder in the Royal Mail. The two Singapore funds have also invested in Rothesay Life, while GIC invested in the Broadgate office and shopping centre.Direct investments by Asian SWFs in the United Kingdom totalled USD18.9bn between third quarter 2011 and second quarter 2012. This is followed by Germany, with USD7.73bn in direct investment, France (USD2.74bn), Switzerland (USD2.63bn), Russia (USD1.91bn), and Spain (USD1.38bn). In the same period, investments in the United States, which are indirect, perhaps except for institutional real estate, totalled USD5.48bn.It is also notable that the Korean sovereign Wealth fund KIC and the Korean pension fund NPS have both opened offices in London. The two major Asian public actors, like their counterparts, would like to increase their European exposure to real estate, bonds, equities and infrastructure.
