London (Archyde.com)
A yearly summary, released on Saturday, indicated that assets held by sovereign wealth funds and public pension schemes reached a record high of $31.9 trillion in 2021. This surge was fueled by gains in US equities and oil prices, resulting in investment activity reaching its peak in years.
The study on government-owned investment vehicles, compiled by the global sovereign wealth fund platform, revealed a six percent annual increase in sovereign wealth fund assets to $10.5 trillion and a nine percent rise in government pension fund assets to $21.4 trillion.
The report also highlighted a six-year high in investment activity by government institutional investors. Expenditure totaled approximately $215.6 billion, with sovereign wealth funds accounting for roughly half.
Singapore’s sovereign wealth fund stood out, exhibiting a 75 percent increase in deal volume to $31.1 billion across 109 transactions. Real estate, particularly logistics, received a significant portion of this investment, representing approximately one third.
According to Diego Lopez’s findings within the report, emerging markets significantly underperformed, receiving only 23 percent of capital – one of the lowest rates in six years.
The report noted continued investor scrutiny of China, particularly regarding regulatory actions against Chinese technology firms.
The study concluded that, despite global political instability and regulatory worries, a majority of state-owned investment institutions maintain a positive outlook on Chinese stocks. Furthermore, the establishment of four new sovereign wealth funds this year contributed to the overall increase in assets.
The platform’s annual report draws upon data from 161 sovereign wealth funds and 275 government pension funds.
