WASHINGTON (Reuters) - Sovereign wealth funds withdrew $ 18.4 billion from global equity and bond markets in the first quarter of 2017 despite strong stock gains in the period, data from EF Capital Research showed on Friday.
Oil-backed sovereign wealth funds have been under pressure since crude prices peaked from mid-2014 peaks of $ 115 to around $ 52 a barrel as governments pulled out of funds to fill budget deficits.
Global sovereign wealth fund assets stabilized at $ 6.59 trillion in the 12 months to March 2017 due to a combination of weak market performance, low oil prices and government policy shifts, according to data released by Research Research in April.
According to the latest figures from eVision, which collects data from about 4,400 companies managing funds for institutional investors, sovereign fund sales rebounded in the first quarter after net purchases of $ 382.3 million in the fourth quarter of 2016.
Funds drew about $ 16.9 billion from equity funds amid heavy selling of US shares that lost $ 9.5 billion, while global equity funds lost $ 490.6 million and attracted inactive global equity funds $ 1.7 billion.
The funds withdrew $ 1.6 billion from fixed-income funds, with sales in US bonds at $ 2.5 billion.
Global bond funds attracted nearly $ 1 billion in net inflows and emerging-market debt funds after $ 123 million in three-quarters of a row.
SOURCE
Oil-backed sovereign wealth funds have been under pressure since crude prices peaked from mid-2014 peaks of $ 115 to around $ 52 a barrel as governments pulled out of funds to fill budget deficits.
Global sovereign wealth fund assets stabilized at $ 6.59 trillion in the 12 months to March 2017 due to a combination of weak market performance, low oil prices and government policy shifts, according to data released by Research Research in April.
According to the latest figures from eVision, which collects data from about 4,400 companies managing funds for institutional investors, sovereign fund sales rebounded in the first quarter after net purchases of $ 382.3 million in the fourth quarter of 2016.
Funds drew about $ 16.9 billion from equity funds amid heavy selling of US shares that lost $ 9.5 billion, while global equity funds lost $ 490.6 million and attracted inactive global equity funds $ 1.7 billion.
The funds withdrew $ 1.6 billion from fixed-income funds, with sales in US bonds at $ 2.5 billion.
Global bond funds attracted nearly $ 1 billion in net inflows and emerging-market debt funds after $ 123 million in three-quarters of a row.
SOURCE