sovereign wealth funds

Australian sovereign wealth investment fund, the Future Fund, saw its allocation to insurance-linked securities (ILS) fall again at the mid-point of this year, with the investments it has with specialist ILS fund managers declining to the equivalent of US $1.49 billion.

The Abu Dhabi Investment Authority (ADIA), a sovereign wealth investment fund owned by the Emirate of Abu Dhabi and tasked with investing funds on behalf of the Government of the Emirate, has been confirmed as investing in a significant chunk of pension risk transfer specialists Pension Insurance Corporation (PIC).

Reports this morning state that the Abu Dhabi sovereign wealth fund, the Abu Dhabi Investment Council, will take 50% of Bermudian reinsurance company Ariel Re in a deal alongside Grupo BTG Pactual, Brazil’s only public investment bank.

The risk appetite of sovereign wealth fund investors is rising, according to a recent survey, with the expected result being a continued increase in allocations to alternative asset classes including insurance and reinsurance linked investments.