Gulf News: The “Glamour” Investments Party is Over – SWFs to Reconsider Core and Non-core Assets and Restructure Portfolios, at Least for Now

Mirtchev, A. (21, November 2008). The “Glamour” Investments Party is Over – SWFs to Reconsider Core and Non-core Assets and Restructure Portfolios, at Least for Now. Gulf News

The Gulf NewsDr. Alexander Mirtchev, President of Krull Corp and a sovereign wealth fund independent director, believes that most of the sovereign wealth funds that gained prominence in the last 5 years will probably need to retool in order to face the challenges that arise out of the global economic and financial crisis. He expects them to shift their focus to productive assets that are related to their base economies, such as natural resources or technologies, and promptly restructure, including dealing with, and where necessary, disposing of non-core assets they have acquired during the boom times. He asserts that this change of focus could have wider implications beyond the sovereign wealth funds themselves. The paths to recovery undertaken by both developed and emerging economies, although diverging in their minutiae, are unlikely to result in stable economic balances. In that regard, it is notable that increasing confidence in SWFs as legitimate partners will have an impact on the regional and global economic security equilibrium.