The Sovereign Investment Lab – which, you have to admit, has a cool name – at Università Commerciale Luigi Bocconi has just released its annual review of sovereign wealth fund direct investment activity. Here’s a few of the interesting take aways:

  • SWFs' direct investments were up significantly in 2011 – there were 15% more transactions worth 42% more than in 2010.
  • The most popular industry for direct investments was financial services, representing 59 of the 237 direct investments last year. (Most of this, however, was due to the needs of domestic banks rather than strategic investments overseas.)
  • Sovereign funds also showed ongoing enthusiasm for hydrocarbons (25 investments) and infrastructure (29 investments).
  • In terms of real estate, the report indicates that New York and London still hold sway for sovereign investors.
  • SWFs are also investing in developed world companies to get exposure to emerging markets (which, a propos, is something I just wrote about in this PPI Newsletter).
Anyway, the report is worth reading in its entirety, as there are a few short articles at the end that you may also find interesting. Get it here.

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