GCC Investors Prefer Direct Investments

Ashby Monk

It’s generally quite hard to come by information on the investment behavior of SWFs in the Gulf. So, the 2011 Middle East Asset Management Study by Invesco — which seeks to understand the “preferences” of these investors — is worth a quick read. In particular, I was surprised to see the extent to which GCC investors prefer direct investments compared to their expatriate counterparts. According to the study,

“GCC investors allocate 62% of their investible assets to direct investments…Put simply, GCC investors access their investments directly rather than using more diversified ‘fund’ structures.”

Put another way, the Invesco study finds that GCC investors are generally uninterested in the sorts of funds that asset managers, such as Invesco, provide. Now that’s not something you’d expect to see in an asset manager’s research report. Interesting. Anyway, for some details on how Invesco conceptualizes the SWF landscape, see this chart:

1 Response to “GCC Investors Prefer Direct Investments”

  1. 1 SWFs Work Well Together « Oxford SWF Project Trackback on June 6, 2011 at 10:54 am

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This website is a project of Professor Gordon L. Clark and Dr. Ashby Monk of the School of Geography and the Environment at the University of Oxford. Their research on sovereign wealth funds is funded by the Leverhulme Trust and The Rotman International Centre for Pension Management.

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