📝2022 First Year Ever Sovereign Wealth Funds Shrink In Value: Global SWF

Global SWF estimates the impact to Sovereign Wealth Funds (SWFs) totaled US$ 1 trillion. Similarly, Public Pension Funds (PPFs) have reduced their assets by US$ 1.3 trillion, with the subsequent worsening of funding ratios. These are paper losses and some of the funds will not see them realized in their role as long-term investors, but it is quite telling of the moment we are living.

Both SWFs and PPFs increased their allocation, and we estimate they hold US$ 0.5 trillion in hedge funds, i.e., a 25% of the total industry size. We study the case of ADIA, the world’s largest allocator to hedge funds.

We offer a revised set of projections for State-Owned Investors 2030, considering the bump in the road encountered by the industry this year. It is never easy to predict eight years down the road for an ever-changing industry like this, but we expect global AuM to reach US$ 37.2 trillion by 2025, and US$ 50.5 trillion by the end of the decade. PIF of Saudi Arabia may lead the ranking in 2030, with US$ 2 trillion of AuM. - Global SWF