30 World’s Largest Sovereign Fund



Sovereign Fund

Sovereign Wealth Fund (SWF) is a state-owned investment fund composed of financial assets such as stocks, bonds, real estate, precious metals, or other financial instruments.

The funds assets are coming from balance of payments surpluses, official foreign currency operations, the proceeds of privatizations, fiscal surpluses, and from commodity exports.

Foreign currency reserve assets held by monetary authorities, state-owned enterprises, government-employee pension funds, and assets managed for the benefit of individuals are not categorized as a sovereign wealth fund.

The objective of sovereign wealth fund are to

  1. Protect & stabilize the budget and economy from excess volatility in revenues/exports
  2. Diversify from non-renewable commodity exports
  3. Earn greater returns than on foreign exchange reserves
  4. Assist monetary authorities dissipate unwanted liquidity
  5. Increase savings for future generations
  6. Fund social and economical development
  7. Sustainable long term capital growth for target countries
  8. Political strategy

Table below shows 30 largest sovereign fund in the world. Malaysia sovereign fund, Khazanah Nasional, is at position 22.

No
Country
Fund Name
Assets $Billion
Inception
Origin
1
UAE
Abu Dhabi Investment Authority
$627
1976
Oil
2
Norway
Government Pension Fund – Global
$445
1990
Oil
3
Saudi Arabia
SAMA Foreign Holdings
$431
n/a
Oil
4
China
SAFE Investment Company
$347.10
Non-Commodity
5
China
China Investment Corporation
$288.80
2007
Non-Commodity
6
Singapore
Government of Singapore Investment Corporation
$247.50
1981
Non-Commodity
7
Kuwait
Kuwait Investment Authority
$202.80
1953
Oil
8
Russia
National Welfare Fund
$168.00
2008
Oil
9
China
National Social Security Fund
$146.50
2000
Non-commodity
10
Hong Kong
Hong Kong Monetary Authority Investment Portfolio
$139.70
1993
Non-Commodity
11
Singapore
Temasek Holdings
$122
1974
Non-Commodity
12
Libya
Libyan Investment Authority
$70
2006
Oil
13
Qatar
Qatar Investment Authority
$65
2005
Oil
14
Australia
Australian Future Fund
$49.30
2004
Non-Commodity
15
Algeria
Revenue Regulation Fund
$47
2000
Oil
16
Kazakhstan
Kazakhstan National Fund
$38
2000
Oil
17
Ireland
National Pensions Reserve Fund
$30.60
2001
Non-Commodity
18
Brunei
Brunei Investment Agency
$30
1983
Oil
19
France
Strategic Investment Fund
$28
2008
Non-Commodity
20
South Korea
Korea Investment Corporation
$27
2005
Non-Commodity
21
US
Alaska Permanent Fund
$26.70
1976
Oil
22
Malaysia
Khazanah Nasional
$25
1993
Non-Commodity
23
Chile
Social and Economic Stabilization Fund
$21.80
1985
Copper
24
UAE
Investment Corporation of Dubai
$19.60
2006
Oil
25
UAE
Mubadala Development Company
$14.70
2002
Oil
26
Bahrain
Mumtalakat Holding Company
$14
2006
Oil
27
UAE
International Petroleum Investment Company
$14
1984
Oil
28
Canada
Alberta’s Heritage Fund
$13.80
1976
Oil
29
Azerbaijan
State Oil Fund
$13.40
1999
Oil
30
Iran
Oil Stabilisation Fund
$13.00
1999
Oil

The data are as in December 2009


Leave a Comment