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Sovereign wealth funds pumping more money into real estate, alternative assets

Fiona Lam

Published Tue, Jun 15, 2021 · 05:50 AM

Singapore

SOVEREIGN wealth funds (SWFs) are injecting more capital into higherreturning alternative assets such as property, although some heavyweights fall short of their targets. Investments into real estate, private equity and infrastructure by such state-owned investment funds grew substantially over the past decade.

SWFs' cumulative actual allocations to the three asset classes more than tripled to US$717 billion last year, from US$206 billion in 2011, a report by alternative assets data provider Preqin in partnership with law firm Baker McKenzie showed.

There were also "particularly large increases" in their combined target allocations to real estate, private equity…