Key Points
SummaryCompaniesNo funds surveyed positive on China outlook - OMFIFIndia top pick amongst emerging marketsInvestors concerned about higher-for-longer rates..
LONDON, Nov 30 (Reuters) - Public pension and sovereign wealth funds managing $4.3 trillion in assets are pessimistic about investing in China, but keen to cut net emissions of their portfolios, according to a survey by the Official Monetary and Financial Institutions Forum (OMFIF)...
The survey of 22 funds by OMFIF, a think tank for central banking, economic policy and public investment, also showed that 62% of the 50 largest pension funds and nearly half of the largest sovereign wealth funds suffered losses last year amid high inflation and historically rapid global rate hikes...
"(Investors) are now focused on how to deal with a macroeconomic environment that is stuck in a higher-for-longer interest rate cycle," the report said.. While 73% of the funds said they have a pledge to achieve net zero emissions in their portfolio by 2050, and more than a third planning to increase their allocation to green bonds and green real assets in the next 12-24 months, any investments still need to make money for the funds...
Aggregate assets under management of the top 50 sovereign funds edged 2.3% higher to $11.6 trillion from $11.3 trillion a year before, helped by outsized gains in Middle East funds as they benefit from the surge in commodity prices...
