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KIC chairman Heenam Choi explains why the sovereign wealth fund is looking to invest in alternative asset classes.
The move comes less than a month after the government said the fund would stop investing in upstream oil and gas.
Peter Costello said partnerships with local investors, but also greater transparency on the part of sovereign funds is the way forward.
Intense competition, high valuations and regulatory uncertainty have led SWFs to shift from infrastructure to public equities – at least in developed markets, a new report finds.
The $941bn Chinese SWF will increase its allocation to infrastructure, in which it has invested $10bn over the past three years.
The sovereign wealth fund’s investment comes ahead of a planned IPO by the company, which has increasingly been diversifying towards renewable energy globally.
The managing director of the Kuwaiti infrastructure manager brushed off renationalisation threats in the UK, saying it is ‘a country where rule of law exists’.
The shift towards real assets is ‘here to stay’, according to survey, as infrastructure proves more popular than real estate with public pension funds and SWFs.
In its annual report, Abu Dhabi’s sovereign wealth fund says the outlook for infrastructure asset valuations will be less certain in 2018, given political factors and policy considerations.
A government white paper cited transparency issues and management fees as reasons why the $1trn fund should not invest in unlisted equities.
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