Cheap oil forces SWFs to retreat as glory days fade

London

THE glory days of some oil-based sovereign wealth funds (SWFs) could be behind them now that cash-strapped governments are raiding the coffers to plug yawning budget gaps, with investment returns too weak to make up the shortfall.

This is forcing some funds to sell assets to find ready cash, raising concerns that if this process accelerates, it could drive down the price of equities and other assets - creating a vicious circle.