LONDON Aug 13 Stakes in British and continental
European publicly-listed companies held by state-owned
investment funds have fallen slightly since the start of 2010
after sharp rises in 2009, according to Thomson Reuters data.
The combined total of listed equity assets held by
government-owned funds in Europe outside Britain fell to $206.5
billion at the start of August from $217.1 billion in the first
quarter of 2010.
UK equity stakes held by sovereign funds dipped to $80.5
billion earlier this month, having nearly doubled to $89.8
billion in the first quarter of 2010 from $48.7 billion in the
same period last year.
The data may reflect a growing trend of sovereign wealth
funds making deals outside public equity markets, after they
came under pressure for poor performance during the crisis from
their investment in Western stock markets.
Over the past year they have been increasingly expanding
their portfolio in emerging and frontier markets, where some of
them have invested in long-term infrastructure or resource
projects, which are not captured by listed equities data.
The data was compiled from holdings in listed equities worth
$608.5 billion by state-owned investment vehicles in countries
including China, Korea, Hong Kong, Taiwan, Singapore, Brunei,
Malaysia, Vietnam, Kuwait, the United Arab Emirates, Oman, Saudi
Arabia, Qatar, France, Norway and Canada.
Listed equity holdings by these funds covered by this data
make up roughly 20 percent of total assets managed by sovereign
wealth funds, which manage an estimated $3 trillion of windfall
revenues for future generations.
The data largely consists of stakes owned by sovereign
wealth funds but also includes other types of state-owned fund.
Continental Europe's share in their stakes ticked up to 34
percent from 33.2 percent in late 2008, while North America's
share rose to 18.5 percent from 14.2 percent.
For a graphic on regional breakdown, click on:
Holdings in North American stocks remained largely steady at
$112.7 billion in August, after jumping to $113.3 billion at the
start of 2010 from $57.6 billion in the fourth quarter of 2008.
The sharp rise then partly reflected the purchases of stakes
in the struggling U.S. financial sector, such as Citi (C.N) and
Morgan Stanley (MS.N) during the financial crisis.
According to think tank Monitor, sovereign wealth funds made
16.7 percent of their investment in North America last year,
compared with 42.4 percent in Europe.
The Middle East and North Africa made up of 23.3 percent of
their deals last year, while Asia-Pacific represented 13.4
For related stories on sovereign funds, see [ID:nLDE66710K]
(Editing by Andrew Heavens)