The removal of tax exemption for sovereign fund investments would have massive implications for foreign fund flows. That hasn't stopped some countries from trying to change the rules.
Indonesia's latest co-investment aims to capitalise on global hyperscalers hoping to tap into a booming local consumer market. There is also scope to cater to excess demand from Singapore.
The departures have caught the attention of industry observers, although with an increasing number of sovereign investors using Singapore as a regional hub, competition for seasoned investment professionals looks set to intensify.
Ethiopian Investment Holdings, the country’s sovereign wealth fund, will pursue its asset allocation strategy with proceeds from sales of state companies and assets.
With no commodity-based or government surpluses to invest, some are questioning why the Philippines needs a sovereign wealth fund. Its proponents say it will ensure state funds are invested for the best return.
A tough year in public markets has taken its toll on the performance of Korea’s sovereign wealth fund, but an increasing allocation to alternatives has counterbalanced some of the losses.
Will the result be what happened in Indonesia? One thing is certain: the desire to create state investment platforms is growing regionally and globally.
The Indonesia Investment Authority was established in 2021 to attract foreign capital to aid the country’s development. When the fund launched, its proposed system of governance raised concerns among financial experts.
Expect sovereign funds and pension funds to set up offices in Asia and regional institutions to further boost their presence overseas as they hunt for investment opportunities.