According to data presented by Financepr.com, the Norwegian Central Bank is the world’s largest sovereign wealth fund and handles assets worth $$1.33 trillion. It comes right ahead of China Investment Corporation, whose assets under management total $1.222 trillion. As of January 2022, the world’s top 10 largest sovereign wealth funds (SWFs) manage assets worth $7.4 trillion.
Other SWFs that made it to the list of the largest funds include the Abu Dhabi Investment Authority, State Administration of Foreign (China), and Government of Singapore Investment Corporation. The three funds hold assets worth $829B, $817B, and $744B, respectively.
Commenting on the findings, Edith Reads from Financepr had this to say, “The last few years have seen an increase in the assets managed by sovereign funds. More SWfs keep coming up by the day, and we can expect the global total managed assets to also increase. What’s interesting, however, is the recent trend of these SWfs putting their money in alternative investments, such as real estate, infrastructure, private equity and hedge funds.”
More SWFs turn to alternative investments
Some SWFs seem keener to include these alternative investments in their portfolios. Saudi Arabia’s National Development fund allocates its asset funds to alternative assets. The fund ranks 18th on the list of the largest SWFs, with $93 billion assets under management. Another fund, The Public Investment Fund (PIF), manages assets worth $480B and allocates 56% of this to alternative investments.
The United Arab Emirates also seems open to the option of alternative investments. Four of the country’s SWFs appear on the top 20 largest funds list; Abu Dhabi Investment Authority (ADIA), The Investment Corporation of Dubai, Mubadala Investment Company, and ADQ. The funds allocate 25%, 65%, 48%, and 58%, respectively to alternative investments.
However, the NBIM fund seems rooted in its ways. Of the $1.33B worth of assets under management, the fund only allocates 3% of this to alternative investments.