Sovereign Wealth Funds

Sovereign Wealth Funds (SWFs) are pools of assets owned and managed directly or indirectly by governments to achieve national objectives. They may be funded from.
  1. Foreign exchange reserves
  2. Sale of scarce resources such as oil
  3. General tax and other revenues
There are a number of potential objectives of SWFs, which are not always easily attributable to a fund. Some funds may have more than one objectives. The following are some of the objectives.
  1. To diversify assets
  2. To get a better return on reserves
  3. To provide for pensions in the future
  4. To provide for future generations when natural resources are run out
  5. To achieve price stabilization
  6. To promode industrialisation; and
  7. To promote strategic and political objectives
The SWFs invest in both real and financial assets such as stocks, bonds, real estate, precious metals and in alternative investments such as private equity and hedge funds. Generally, they diversify their investment across multiple asset classes and across various countries. The following are some of the large SWFs and their AUM size mid of 2020.

Sovereign Wealth Fund Asset Size (as of June 2020)

Sl No Name Assets (in USD billions) Country Inception
1 Norway Government Pension Fund 1,186.67 Norway 1990
2 China Investment Corporation 940.6 China 2007
3 Abu Dhabi Investment Authority 579.62 UAE 1976
4 Kuwait Investment Authority 533.65 Kuwait 1953
5 Hong Kong Monetary Authority Investment Portfolio 528.05 Hong Kong, China 1993
6 Government of Singapore (GIC) Private Limited 453.20 Singapore 1981
7 SAFE Investment Company 417.84 China 1997
8 Temasek Holdings 375.38 Singapore 1974
9 Public Investment Fund 360 Saudi Arabia 2008
10 National Council for Social Security Fund 325 China 2000
11 Investment Corporation of Dubai 320 UAE 2006
12 Mubadala Investment Company 226 UAE 2002
13 Korea Investment Corporation 134 South Korea 2005
14 Australia Future Fund 110 Australia 2006
15 National Development Fund of Iran 91 Iran 2011
16 National Welfare Fund 78 Russia 2008
17 Libyan Investment Authority 66 Libya 2006
18 Alaksa Permanent Fund 66 USA 1976


Updation History
First updated on 8th September 2020.