Commodity-based sovereign wealth funds are in turmoil. But they are still investing, albeit more thoughtfully. That job is likely to get even more difficult, as access to the choicest deals globally turns into a slugfest with the Chinese insurers. We suspect that Abu Dhabi Investment Authority, among many others, will emerge from the fight ring stunned and bruised. The Chinese insurers have staggering amounts of cash, with equities and other high-risk assets replacing bonds and term deposits. The drive for more return and greater yield is as intense as ever. Of course the sovereign wealth funds may win the boxing match. Smaller, incisive investments are often better than larger, lumbering ones. ■
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