SWF and public pension fund assets hit record $ 31.9 trillion – report

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The logo for Singapore’s sovereign wealth fund GIC Pte Ltd can be seen on a building in Singapore on July 6, 2017. REUTERS / Darren Whiteside

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LONDON, Jan 1 (Reuters) – Assets held by the world’s sovereign wealth and public pension funds surged to a record $ 31.9 trillion in 2021, thanks to soaring US stocks and oil prices, and investments soared to their highest Stand for several years, so an annual report published on Saturday showed.

Industry specialist Global SWF’s report on government investment vehicles found that sovereign wealth fund assets rose 6% to $ 10.5 trillion over the year, while public pension fund assets rose 9% to $ 21.4 trillion is.

The report also found that government investors had put in more money, both by number of transactions and by volume, than in any of the previous six years. Approximately $ 215.6 billion was spent, almost half of it from sovereign wealth funds.

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Singapore’s sovereign wealth fund GIC led the league, increasing its deal-making by 75% to $ 31.1 billion across 109 deals. Over a third of this capital was invested in real estate, especially logistics.

Overall, emerging markets fell behind, pulling in just 23% of capital this year, one of the lowest levels in six years, Global SWF’s Diego Lopez wrote in the report.

Venture capital investments total only a small fraction of the funds deployed by government vehicles, but increased more than 80% this year to $ 18.2 billion, with more than a quarter from Singapore’s Temasek .

“The pandemic has triggered a seismic shift in strategy, with a shift towards sectors that will skyrocket in the face of changes in lifestyle, consumer behavior and public needs,” Lopez said, referring to the healthcare, retail, consumer and technology sectors .

According to the report, investors would continue to watch China closely, particularly crackdown on Chinese tech companies.

“Despite geopolitical tensions and regulatory concerns, most (state-owned investors) are optimistic about Chinese stocks,” it said.

Total assets were increased this year through the launch of four new sovereign wealth funds.

Azerbaijan Investment Holdings (AIH) was the most significant in terms of wealth, having received stakes in leading companies such as the national oil company SOCAR.

Bangladesh, Cape Verde and Rio de Janeiro have also launched funds, and Israel, Namibia, Bahamas and Mozambique are expected to launch sovereign wealth funds in 2022.

Global SWF’s annual report analyzed data from 161 sovereign wealth funds and 275 public pension funds.

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Reporting by Karin Strohecker; Adaptation by Kevin Liffey

Our Standards: The Thomson Reuters Trust Principles.

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