Many sovereign wealth funds (SWFs) and other institutional investors have kept a high exposure to risky assets during the current coronavirus pandemic, according to the International Forum of Sovereign Wealth Funds (IFSWF), a global network of sovereign wealth funds from nearly 40 countries, and State Street Corporation.The duo has conducted a research study that shows that these investors have maintained this position even when they were already either overweight cash or underweight equities before March 2020 when the economic impact of the pandemic became more apparent.Consequently, SWF portfolios have proved more resilient to the market rout in March and April 2020 than widely supposed, it concluded.In fact, the IFSWF and State Street research suggested that institutional investors, including SWFs, did not display widespread risk aversion in a falling market. Instead, the research showed they selectively took on risk – for example, selling fixed income securities to buy equities – to rebalance their portfolio and retain their asset-class allocations. Duncan Bonfield, chief executive officer of IFSWF, said, “Our research suggests that SWFs have not undertaken large-scale liquidations to provide liquidity for governments as widely speculated. In fact, only two of the 10 IFSWF members surveyed for this research said that they had experienced a call on their assets since the beginning of March.”He added that iinvestors had been able to use their cash position to satisfy private equity managers’ capital calls and “invest in the long-term interests of their owners at a time of great uncertainty”.Neill Clark, head of State Street Associates EMEA at State Street, said the research findings represented the capital flows and behaviour across a broad set of global institutional investors and suggested that long-term investors maintained “institutional discipline” during the market volatility seen in March and April 2020.”We did not observe such widespread risk aversion during this period relative to previous crises and signs suggest there has been a stabilisation in aggregate capital flows observed across asset classes during April,” he added.The full research report, Pandemic, No Panic: Evidence from Institutional Investor Flows, is available on the IFSWF websiteLooking for IPE’s latest magazine? Read the digital edition here.
UK North Sea oil firm EnQuest has informed that its director Phillip Nolan will be stepping down from his role to take up a new position in Associated British Ports Holdings Limited.EnQuest said on Thursday that Nolan would step down with effect from July 4.At that time, he will assume new responsibilities as a non-executive chairman of Associated British Ports Holdings Limited, the direct holding company of Associated British Ports.Nolan spent 15 years with BP working in the UK, the USA, Australia, and Southeast Asia. Later, he was responsible for acquisition and disposals for BP Exploration worldwide and was managing director of Interconnector Limited which built and operates the gas pipeline between Bacton and Zeebrugge.He joined BG Group where he was chief executive officer of Transco which runs the UK gas pipeline network and was also an executive member of the BG Group board. On demerger from BG Group, Nolan was the chief executive officer of the Lattice GroupJock Lennox, chairman of EnQuest, said: “Since 2012, Phil has played a significant role in the development of EnQuest, including most recently the milestone of first oil at the Kraken project. I would like to thank him on behalf of the Board for his unstinting and valuable contribution to the Company and wish him well for the future.”EnQuest added that, in conjunction with an independent search firm, the process of building on the company’s rotation plans continues.
Jose Mourinho’s men maintained their unbeaten start to the current campaign by brushing aside Tottenham at Stamford Bridge on Wednesday night. Ahead of Chelsea’s visit to St James’s Park on Saturday, Pardew hailed the quality of Mourinho’s men but said they were bound to slip up sooner or later. Press Association Newcastle boss Alan Pardew believes it will be “impossible” for Chelsea to remain unbeaten in all four major competitions this season. Pardew said: “I think it’s difficult – obviously Arsenal have done it and Chelsea have come pretty close before. “But not in all competitions – that is impossible and I think Jose has admitted that. But they’re making a very good job of it at the moment. “It’s the best Chelsea team that I’ve ever seen and I’ve watched them since I was about 12 so I know them pretty well. I think Jose is pretty pleased with what he’s got.” Pardew is hopeful captain Fabricio Coloccini will be able to make a return on Saturday after missing the best part of a month with a calf problem. Coloccini has been training with his team-mates this week but Pardew must decide whether he is ready for what is likely to prove one of the toughest possible tests. Pardew added: “Coloccini has been on the training ground but whether he’s got enough fitness levels to play a game of this level I don’t know. “I can’t really give a clear message. I’m not trying to hide behind anything but we have had recovery time and I can’t really give a clear indication of how the players are.”