An annual report published on Saturday revealed that the assets held by sovereign wealth funds and government pensions increased to a record level of 31.9 trillion dollars in 2021 thanks to the rise in US stocks and oil prices, while investments reached the highest level in several years, despite the continuing pandemic fears.
The state-owned investment tools report, prepared by the global sovereign wealth fund platform, showed that assets managed by sovereign wealth funds increased 6% during the year to $10.5 trillion, while government pension funds jumped 9% to $21.4 trillion.
The report also found that government institutional investors used more money, both in the number and size of deals, at a six-year high. About $215.6 billion was spent, about half of it by sovereign wealth funds.
Singapore’s sovereign wealth fund came at the fore, as its percentage of deals increased 75% to $31.1 billion, distributed over 109 deals. A third of the capital was invested in real estate, mainly logistics.
In the report, Diego Lopez wrote that emerging markets have lagged far behind, attracting only 23% of capital this year, one of the lowest ratios recorded in the past six years.
Investors continued to closely monitor China, the report said Especially the campaign that targeted Chinese technology companies.
“Despite geopolitical tensions and regulatory concerns, most (state-owned investment institutions) are optimistic about Chinese stocks,” the report concluded.
In total, the assets were supported by the launch of four new sovereign wealth funds this year. The platform’s annual report analyzes data from 161 sovereign wealth funds and 275 government pension funds.