The annual OMFIF Global Public Investor report features in-depth global analysis and assessment of public sector investment and its impact on the world economy.
Global Public Investors, including central banks, sovereign wealth funds and public sector pension funds, form the bedrock of the world economy. The 2015 edition of the OMFIF Global Public Investor report explores the investment behaviour of 500 institutions with assets equivalent to 40% of world output. With yields under pressure from low or negative interest rates, official investors are increasingly focusing on 'real investments' in area like real estate and infrastructure – as well as in a range of equity markets.
The GPI 2015 – supported by DZ BANK, Quantum Global and State Street Global Advisors – provides detail on key investment themes by providing data on global public investors’ asset allocation and performance, broken down by type and region, as well as where they will move their portfolio in the future.
The report includes The Top 500 Ranking Table, which encompasses a full range of GPIs across the globe and is based on the assets under management of central banks, sovereign wealth funds and pension funds.
Compared with the 2014 inaugural edition of Global Public Investor, the 2015 publication has made some extensive advances.
The ranking table has been extended to 500 institutions with assets under management of $29.7tn, from 181 countries, equivalent to 40% of world GDP. Of these, 63 are from Africa, 103 from Asia Pacific, 164 from Europe, 42 from Latin America and the Caribbean, 33 from the Middle East, and 95 from North America. The GPI list includes 164 central banks, 89 sovereign funds and 247 public pension funds.
Central banks’ share of assets has fallen to $13.0tn, or 43.9% of the total, partly reflecting the effect of the dollar’s rise on non-dollar-denominated reserves. The shares of sovereign funds and public pension funds have risen to $6.7tn (22.5% of the total) and $10.0tn (33.6%) respectively.
Although the Top 10 investors show little change on last year, there have been rapid rises and falls in other sections of the table, with institutions from Pakistan, Argentina, Indonesia and Vietnam moving up in the rankings and representatives of Nigeria, Ukraine, Russia and Ireland falling.
We highlight a number of other features that already played a role in last year’s publication, including the rise of the renminbi, central banks’ move into public equities and corporate bonds, and the ever-growing potential for co-investment and partnerships.
Central banks’ renewed interest in gold, with the large holders in industrialised countries no longer selling and important emerging market economies starting to buy bullion, is a notable feature of GPI 2015, including an analysis of Chinese gold policy. Official interest in the renminbi is highlighted by contributions from authoritative figures from central banks and monetary agencies around the world. There is also a particular concentration on Africa.
The main factor generating change in investors’ behaviour – the fall in interest rates in developed markets, induced by low inflation and only sluggish growth – was already apparent last year, but has now become still more marked, with rates at negative levels in many parts of Europe. This has prompted a further quest for ‘real economy’ assets.
The GPI 2015 publication can be purchased from the OMFIF membership team, please contact firstname.lastname@example.org +44 (0)207 965 4494 or submit the order form directly.
The report, focusing on investments by 157 central banks, 156 public pension funds and 87 sovereign funds, underlines growing similarities among different categories of public entities owning assets equivalent to 40% of world output.