Sovereign Wealth Funds

Pandemic, No Panic: Evidence from Institutional Investor Flows

To understand how long-term institutional investors reacted to the financial and economic crisis, we teamed up with the International Forum of Sovereign Wealth Funds (IFSWF).

June 2020

Capital markets expect that states owning sovereign wealth funds may use their resources for fiscal stimulus and to minimize damage to their domestic economies.

To explore this media perception, we analyzed our own dataset of unique indicators that capture aggregated and anonymized capital flows, portfolio positions and institutional investor behavior of institutional investors. To provide better context for analysis, IFSWF surveyed a diverse sample of 10 members. Combining this data and insight, we found that sovereign wealth funds and institutional investors were resilient to the current market conditions and maintained strategic discipline even during severe market volatility.