Ranking of sovereign funds in the world 2022
There are dozens or hundreds of sovereign funds today around the world. However, there are funds that were and still are at the top of the list. In this article, we will review the ranking of sovereign funds in the world during 2022.
What are sovereign wealth funds?
Sovereign wealth funds (SWFs) are pools of income generally derived from commodities that a country uses to invest in areas of potential growth. The majority of countries that operate sovereign wealth funds are those that rely on a limited number of commodities, usually one or two, for the predominant source of state income. Middle Eastern countries are perfect examples because they depend heavily on oil as their primary source of income.[1]
Ranking of sovereign funds in the world 2022
Here are the 10 largest sovereign funds in the world, according to data from the Sovereign Wealth Funds Institute around the world (SWFI):
1. The Norwegian Pension Fund
The Norwegian Pension Fund, also referred to as the Oil Fund, has more than $1 trillion in assets and is the world's leading sovereign fund. This fund was established in 1990 to direct revenue from Norway's vast oil sector into diversified assets. The fund gets a lot of its revenue
Definition of a sovereign fund
A sovereign wealth fund (SWF) is a fund owned by a state (or political division of a federal state) consisting of financial assets such as stocks, bonds, property, or other financial instruments. Sovereign wealth funds are entities that manage national savings for investment purposes. The origin of the accumulated funds may be, and may be, foreign currency deposits, gold or International Monetary Fund (IMF) reserve position held by central banks and monetary authorities along with other national assets such as investment pensions, oil funds or other industrial and financial holdings . These are the assets of sovereign nations which are usually held in different local reserve currencies such as the dollar, the euro and the yen. Names attributed to administrative entities may include central banks, official investment firms, government pension funds, sovereign oil funds, and others. Some countries may have more than one SWF. Also, while the United States does not have a federal SWF, many of its constituent states have their own SWFs and one state, Texas, has two.
Sovereign wealth funds are very important for countries that generate the majority of their income from a limited number of commodities. Funds enable these countries to invest, diversify and develop their resources.[2]
World sovereign fund ranking table 2022
rank
Sovereign Fund
Asset size
(Billion dollar)
Norway 01
government pension fund
Government Pension Fund -global
1289.46
China 02
China Investment Corporation
China Investment Corporation
1045.72
Emirates 03
Abu Dhabi Investment Authority
Abu Dhabi Investment Authority
649.18
China 04
The investment portfolio of the Hong Kong Monetary Agency
Hong Kong Monetary Authority Investment Portfolio
580.54
Kuwait 05
General Authority for Investment
Kuwait Investment authority
533.65
Singapore 06
GIC Fund
GIC Private Limited
453.20
Saudi Arabia 07
Public Investment Fund
Public Investment Fund
430.00
Singapore 08
Temasek Holdings
Temasek Holdings
417.35
China 09
National Council of the Social Security Fund
National Council for Social Security Fund
372.07
Emirates 10
Investment Corporation of Dubai Government Fund
Investment Corporation of Dubai
From taxes collected from oil companies that pay for obtaining oil exploration licenses.
2. China Investment Corporation
The China Investment Corporation is a sovereign fund that manages and invests portions of the foreign exchange reserves of the People's Republic of China. While the exact number of assets subject to this institution is not currently established, the estimated value puts the total somewhere near $1 trillion. Recently, the fund acquired a 45% stake in a $2 billion property in New York City on the Americas Street. The fund is also working on a potential deal to buy European warehouse company Logicor from The Blackstone Group. Under the supervision of the Board of Directors and Supervisors in addition to the Executive Committee, this sovereign wealth fund also uses an external advisory board made up of professionals from a number of different countries including Canada, the United States, South Africa, Brazil and Norway as well as France and Australia.
3. Abu Dhabi Investment Authority
The Abu Dhabi Investment Authority (ADIA), owned by the Emirate of Abu Dhabi within the United Arab Emirates, is a sovereign wealth fund established to carry out investments on behalf of the Government of the Emirate of Abu Dhabi. Due to the highly saturated revenue and income streams generated by the oil industry and oil reserves, the country's staggering revenues of nearly $900 billion are pooled in the Abu Dhabi Investment Authority and used to make diversified investments across the world. The fund's portfolio has a compound annual growth rate of around 10% making it among the most successful sovereign wealth funds. The fund does not disclose the size of its total assets. Yet the Sovereign Wealth Fund Institute, a global organization tasked with monitoring and analyzing sovereign wealth funds, indicates that the portfolio's assets lie somewhere near $790 billion.
4. Hong Kong Monetary Agency Fund
With assets of $580.5 billion, it constitutes 6.9 percent of the total assets of sovereign funds in the world. The Hong Kong Foreign Exchange Fund is a Chinese sovereign wealth fund, whose full name is the “Hong Kong Monetary Agency Investment Portfolio”, and it is managed by the monetary authority in the country, the Hong Kong Monetary Authority. It is used to support the Hong Kong dollar.
5. Kuwait Investment Authority
The Kuwait Sovereign Fund is considered the oldest sovereign fund in the world, and its history dates back to before the founding of the modern state of Kuwait, according to the agency. It was designed to help the country of Kuwait accumulate its wealth, invest it and develop it after the discovery of oil reserves. With diverse assets in excess of $600 billion, the fund has been at the top of the SWF leaderboard for years. The General Investment Authority is managed by a board of directors headed by the Minister of Finance. There are also seats on the board of directors for the Governor of the Central Bank of Kuwait, the Minister of Energy, financial experts and oil experts.
6. Singapore Government Investment Corporation
With assets of $453.2 billion, it constitutes 5.4 percent of the total assets of sovereign funds in the world.
7. Saudi Public Investment Fund,
The Public Investment Fund advanced to the seventh place among the largest sovereign wealth funds in the world.
8. Tamasek Holdings Fund “Singapore”
With a value of $417.4 billion, equivalent to 5 percent of the total assets of global sovereign funds.
9. China Social Security Fund
With a value of $372.1 billion, it constitutes 4.4 percent of the total assets of global sovereign funds.
10. Investments Corporation of Dubai
With a value of $301.5 billion, representing 3.6 percent of the total assets of global sovereign funds.
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