Sovereign funds pull US$38b from global markets in 2016

London

SOVEREIGN wealth funds (SWFs) pulled US$37.8 billion from global stock and bond markets in 2016, data from research firm eVestment showed on Monday, although fourth-quarter flows showed a slowdown in the rate of redemptions.

Oil-backed SWFs have been under pressure since oil prices tumbled from their mid-2014 highs of US$115 a barrel, and 2016 marks their third year of net selling. However, sovereign investors' redemptions from third-party fund managers have slowed year on year, down from US$45.7 billion in 2015.