World Bank official says sovereign funds likely to shift away from US dollar assets
The Associated Press
Friday, March 28, 2008
SYDNEY, Australia: State-backed sovereign wealth funds are likely to diversify their investments and move away from U.S. dollar-denominated assets, a World Bank official said Friday.
Central banks are likely to follow suit, shifting away from the U.S. dollar over the next "three to five years," World Bank Principal Investment Officer Arjan Berkelaar told a business conference in Sydney.
Sovereign funds, which are either government-owned or controlled, will increasingly switch from high grade fixed income assets such as government treasuries to equities and broader based assets including infrastructure and commodities, he said.
Alternatives include investments denominated in the euro and pound, with some possible interest in the higher yielding Australian and New Zealand currencies, he said.
Norton's comments: consider international investments where the economic growth and currency exchange compare favorably with the US dollar and econ. growth.
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