Merrill Lynch Economists Expect Sovereign Wealth Fund Assets to Quadruple by 2011.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- A new report by Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. (MER mer Among the Cheremi and Udmurt peoples of Russia, a sacred grove where people of several villages gathered periodically to hold religious festivals and sacrifice animals to nature gods. ) Global Research says that assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. in Sovereign Wealth Funds (SWFs) could grow more than four-fold by 2011, surging from US$1.9 trillion to US$7.9 trillion. The research report, titled "The overflowing bathtub, the running tap and SWFs," states that a massive build up of reserves at central banks This is a list of central banks. Contents A B C D E F G H I J K L M N O P Q R S T U V W Y Z is fueling this rapid growth, led by China, Russia and the Middle East. Merrill Lynch economists expect this wave of extra liquidity to benefit world financial markets. Sovereign Wealth Funds (vehicles mandated by governments to manage reserves) are likely to direct far greater allocations towards riskier assets such as equities and corporate bonds with cumulative net flows of US$3.1 trillion to US$6 trillion into these asset classes. SWFs are also likely to mandate external fund managers to invest the bulk of their assets - providing a major structural boost for the global asset management industry. "Investors should rejoice in the more balanced global economy and the impetus that SWFs will provide to continued growth and development of global asset markets," said Alex Patelis, head of international economics at Merrill Lynch. "The impetus from these flows underpins continued growth of global asset markets, and the use of external managers should lessen what we see as overblown o·ver·blown v. Past participle of overblow. adj. 1. a. Done to excess; overdone: overblown decorations. b. fears of protectionism." SWF's share of "riskier" global assets to triple SWFs should grow annually by US$1.2 trillion in assets over the next five years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time research report says. Merrill Lynch economists expect SWFs to double or triple their share of riskier global assets (equities and non-sovereign bonds) by 2011. In 2006, government authorities controlled 5% of global assets in riskier assets. Merrill Lynch forecasts SWFs will control 16% of this segment by 2011. In the near term, the Middle East should dominate inflows into riskier assets, with Russia and Asia following. Billions of dollars in further global asset management fees High costs and difficulties associated with setting up internal portfolio management teams, together with the risk of a protectionist backlash, point towards extensive use of external asset managers. Merrill Lynch economists forecast a shift of US$1.5 trillion to US$3 trillion, which could generate fees of US$4 billion to US$8 billion. The research report highlights how in the case of one early adopter, Norway, internal managers are responsible for only 39% of overall risk in its US$360 billion of assets. Merrill Lynch's growth projections assume that central bank reserves Bank reserves are banks' holdings of deposits in accounts with their central bank (for instance the European Central Bank or the Federal Reserve, in the later case called federal funds), plus currency that is physically held in bank vaults (vault cash). , currently growing at a rate of US$1 trillion per year, will increase by $2.7 trillion by 2011. Even if central bank reserves remain flat, SWF See Flash. (filename extension) swf - /S W F/ The filename extension for Adobe Shockwave Flash animated vector graphics files, common on the World-Wide Web. A rarely used alternative expansion is "Small Web Format". assets would reach US$5 trillion. NOTES TO EDITORS Merrill Lynch Global Research has consistently achieved high rankings for its equity and fixed income research in numerous regional and global investor surveys, such as Institutional Investor Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. , The Wall Street Journal, LatinFinance, Asiamoney, Euromoney, Bloomberg, Extel and Reuters. Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 38 countries and territories and total client assets of approximately $1.7 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns approximately half of BlackRock, one of the world's largest publicly traded investment management companies with more than $1 trillion in assets under management. For more information on Merrill Lynch, please visit www.ml.com. |
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