GeoCoded Special Report: The State of Global Sovereign Wealth Funds (August 2025)
Executive Summary
Top Global Insights
1. Scale and Growth. Globally there are more than 100 sovereign wealth funds (SWFs) across at least sixty countries. Collectively they manage about US$13–14 trillion in assets as of mid-2025, up from about US$11.6 trillion in 2022. Assets grew roughly 14% year-on-year during 2023–24 and continue to expand as high oil prices, equity market gains and new fund launches (Sarawak, Maharlika, Chinggis, Danantara, Mutapa etc.) lift the universe. Forecasts suggest SWF assets could reach US$18 trillion by 2030 if current savings and commodity price trends persist.
2. Regional Concentration. The Middle East and Asian funds dominate the landscape. Saudi Arabia's Public Investment Fund (PIF) (~US$1.15 tn), the Abu Dhabi Investment Authority (ADIA) (~US$1.11 tn) and Kuwait's KIA (~US$1.0 tn) are among the largest. Asia's big state investors include China's CIC (US$1.33 tn), Singapore's GIC (~US$936 bn) and Temasek (US$320 bn). Norway's Government Pension Fund Global (GPFG) remains the world's largest sovereign fund (~US$1.86 tn).
3. Mandate Mix. Roughly one-third of funds pursue stabilisation objectives (smoothing commodity revenue and budget cycles), another third are savings or inter-generational funds, and around a quarter are strategic/development funds focused on domestic diversification and industrial policy. A growing number of hybrid funds combine pension or strategic functions. Mandate distribution varies regionally: Latin America and Africa lean toward stabilisation and development; Europe and Oceania have high-governance savings funds; the Middle East mixes savings and aggressive industrial policy; North American state funds emphasise savings for public services.
4. Governance Quality Diverges. Global SWF governance, sustainability and resilience (GSR) scores range from the high-performing regions of Oceania (85%) and Europe (74%) to Latin America (42%). Europe's funds (e.g., Ireland's ISIF, Germany's KENFO) and the GPFG set disclosure standards. By contrast, many new African and Latin American funds remain opaque and subject to political interference. Adoption of the Santiago Principles, which call for transparency and accountability, is uneven; large GCC funds have increasingly adopted them, while some Asian and African funds are not full signatories.
5. Shift Toward Illiquid Assets and Co-investment. According to Invesco's 2024 survey, SWFs allocate roughly 32% of assets to public equities, 28% to fixed income and 22% to illiquid alternatives (private equity, real estate and infrastructure). Private credit, infrastructure and energy transition investments are popular. Funds increasingly co-invest alongside other SWFs and private general partners to access proprietary deal flow and share risk. Over half of surveyed funds invest in private credit and plan to increase allocations.
6. Geopolitical Headwinds. Heightened geopolitical and sanction risks rank among sovereign investors' top concerns. Funds from Russia and Iran face restrictions; CFIUS and other FDI screening regimes in the U.S., EU and India are scrutinising Chinese and Gulf investments; U.S.–China decoupling and technology export controls complicate cross-border deals. Some funds have reduced exposure to sensitive technologies to avoid regulatory push-back.
7. Domestic-Development Focus. Newer funds are being designed to drive structural transformation at home. Examples include Indonesia's Danantara, which will manage state-owned enterprises and invest in renewable energy and infrastructure; Saudi Arabia's PIF funding giga-projects like NEOM; and African funds such as Nigeria's NSIA and Senegal's FONSIS partnering with development banks on healthcare and renewable energy projects. Latin American funds (Chile's ESSF, Trinidad & Tobago's HSF) remain largely stabilisation vehicles but have started modest domestic investment programmes.
8. Performance and Liquidity Management. Where disclosed, recent returns have been solid. Norway's GPFG earned a 13.1% return in 2024; Ireland's ISIF achieved 6.5% in 2024 and has generated €2.9 bn in accumulated gains since inception. China's CIC reported a 10-year annualised net return of 6.57%, while Singapore's GIC delivered 3.8% above global inflation over 20 years. To meet domestic budget drawdowns and crisis needs, stabilisation funds maintain large liquid asset buffers; Russia's National Wealth Fund had 3.3 trillion roubles (≈US$39 bn) of liquid assets available for budget support in May 2025.
9. Thematic Priorities. Key investment themes include energy transition and critical minerals, infrastructure and logistics, digital economy (AI and semiconductors) and healthcare/biotech. Gulf funds have accelerated investments in renewables, battery metals and hydrogen. Chinese and Singaporean funds have stepped up AI and semiconductor exposures. African funds focus on transport, energy and agriculture; Latin American funds emphasise infrastructure resilience and fiscal buffers.
10. Outlook. Over the next 12–24 months, SWF capital deployment will be influenced by oil prices, interest-rate trajectories and geopolitical developments. Elevated oil prices could sustain inflows into MENA funds, while persistent high interest rates may entice funds back into fixed income. Macro uncertainties suggest cautious deployment with more emphasis on domestic projects and co-investment. Sectors poised for outsized SWF activity include renewable energy, logistics corridors (ports, rail and airports), digital infrastructure, biotech and semiconductors.
Key Risks
Commodity price volatility: sharp declines in oil or copper prices would reduce inflows into commodity-backed funds, forcing budget drawdowns and asset sales.
Geopolitical and sanctions risk: escalating U.S.–China tensions, CFIUS/FDI screening and sanctions on Russia/Iran could block investments and freeze assets.
Domestic political capture: weak governance exposes funds to corruption, unsustainable withdrawals and politicised investments (common in some Latin American and African funds).
Liquidity mismatches: heavier allocations to illiquid assets may hamper funds' ability to meet sudden budget needs or comply with withdrawal caps.
Climate transition risk: funds with high fossil-fuel exposure face stranded-asset risks and may miss opportunities if they lag in renewable investments.
Key Opportunities
Energy-transition financing: SWFs can anchor investments in renewables, critical minerals and hydrogen projects, benefitting from long-duration capital and government alignment.
Infrastructure and logistics: demand for ports, airports, railways and digital infrastructure offers SWFs stable, inflation-protected returns.
Co-investment partnerships: collaborating with other SWFs or private GPs can unlock large deal pipelines and reduce fees. Funds like NIIF (India) and FONSIS (Senegal) demonstrate successful partnership models.
AI and digital economy: investing in semiconductors, data centres and AI companies provides exposure to structural growth trends. GIC, Temasek and PIF are already active in this space.
Impact and climate funds: adopting rigorous ESG frameworks and financing adaptation/mitigation projects can enhance reputational capital and meet Paris alignment goals while generating returns.
Global Overview
SWF Universe and Size
Sovereign wealth funds are state-owned investment vehicles funded by commodity revenues, foreign-exchange reserves, fiscal surpluses or privatisation receipts. As of mid-2025 the universe encompasses 100+ funds with total assets around US$13–14 trillion, up from US$11.6 trillion in 2022. Growth has been driven by high oil prices, strong equity markets and new fund launches (e.g., Sarawak, Maharlika, Danantara, Chinggis, Mutapa). Figure 1 shows the distribution of governance quality by region using the Global SWF GSR scoreboard.
Governance/Transparency by Region
To compare governance quality across regions, the Global SWF GSR scoreboard assigns scores for governance, sustainability and resilience. Higher scores reflect transparent reporting, independence of boards, adherence to the Santiago Principles and robust risk management. Figure 1 summarises the average GSR scores by region in 2025.
The chart illustrates the clear regional divergence: Oceania and Europe lead with strong governance, while Latin America scores lowest, reflecting opacity and political risk. Asia (51%) and MENA (48%) occupy the middle ground; the average masks high performers like Singapore's Temasek and Oman Investment Authority and low scorers such as the Libyan Investment Authority.
Funding Sources and Flows
Funding sources differ by mandate and region:
Sovereign Wealth Fund Funding Sources and Regional Distribution
| Funding Source | Typical Regions/Funds | Characteristics |
|---|---|---|
|
Commodity Revenue
Oil, Gas, Minerals
|
Middle East: PIF, ADIA, KIA North America: Alaska Permanent Fund, Wyoming Latin America: Chile ESSF, Trinidad & Tobago HSF Africa: Nigeria NSIA, Botswana Pula Fund |
Highly cyclical; inflows depend on commodity prices; used for stabilisation and savings. |
|
FX Reserves
Foreign-Exchange Reserves
|
Asia: CIC, HKMA Exchange Fund, SAFE Investment Co. North Africa: Libya Middle East: UAE Central Bank Europe: Switzerland's SNB |
Often managed via separate investment vehicles; funds focus on preserving capital and diversifying away from low-yielding reserves. |
|
Fiscal Surplus
Fiscal Surpluses/Privatisation Receipts
|
Europe: Norway GPFG, KENFO North America: Canadian Pension Funds Africa: Ghana MIIF, Senegal FONSIS Asia: GIC, Temasek |
Provide more stable funding; allow for long-term investment horizons. |
|
State Assets
Budget Transfers and SOE Dividends
|
Asia: Danantara, NIIF, ADQ Africa: Mutapa Fund Europe: ISIF |
Tied to domestic policy goals; funds may take over state assets and invest directly in strategic sectors. |
Gulf Fund Growth: Gulf SWFs collectively manage ~US$4 trillion, with assets potentially doubling to US$8 trillion by 2030.
Asian Resilience: Major Asian funds (CIC, GIC, Temasek) continued generating large net inflows from current-account surpluses and strong investment returns.
Capital flows have shifted markedly in the past two years. The Skadden analysis notes that by the first half of 2024 more than 54% of all SWF deployment globally came from Middle Eastern funds. Gulf SWFs collectively manage roughly US$4 trillion and their assets could double to US$8 trillion by 2030. Higher oil revenues enabled PIF, ADIA and Qatar Investment Authority (QIA) to increase allocations to infrastructure, tech and green energy. Asia's major funds (CIC, GIC, Temasek) continued to generate large net inflows from current-account surpluses and strong investment returns. European funds remained broadly stable, while North American state funds saw modest inflows but also significant budget drawdowns (e.g., Alaska's Permanent Fund transfers dividends to residents). Latin American and African funds generally experienced net withdrawals during the pandemic but began rebuilding buffers in 2024–25.
Allocation Patterns and Risk Posture
Invesco's 2024 global survey shows SWFs allocate on average 32% of assets to public equities, 28% to fixed income and 22% to illiquid alternatives (private equity, real estate, infrastructure, private credit). Remaining assets are split between liquid alternatives (4%) and direct strategic stakes (10%). Within alternatives, the survey found that infrastructure (7.7%) overtook real estate (7.6%) and private equity (7.0%), while hedge funds (2.9%) and commodities (0.8%) remained niche.
Risk appetite differs by mandate. Stabilisation funds prioritise liquidity and capital preservation; they hold high shares of sovereign bonds and cash and use strict rules for withdrawals. Savings funds, like Norway's GPFG and GIC, have long investment horizons and allocate heavily to global equities and alternatives. Strategic/development funds accept higher illiquidity and concentration risks because they invest domestically in priority sectors. Pension-linked funds often target actuarial return requirements and adopt diversified portfolios similar to large public pension plans.
Key risk exposures include:
Duration and interest-rate risk: rising global rates in 2023–24 reduced bond values but improved future yields; many funds reduced fixed-income duration and increased allocations to floating-rate securities.
Illiquidity risk: growing allocations to private equity, infrastructure and direct stakes may impair funds' ability to meet rapid withdrawals; some funds manage this by keeping higher cash or by segregating stabilisation and savings portfolios.
Currency risk: commodity funds accumulate large USD holdings but may gradually diversify into other currencies (Chinese yuan, euro). Russia's National Wealth Fund, for example, holds yuan, gold and ruble-denominated assets.
Concentration risk: large bets on domestic mega-projects (e.g., Saudi giga-projects) or single sectors (technology) can amplify volatility.
Regulatory/sanctions risk: U.S. and European FDI screening can delay or block deals; sanctions on Russian assets have frozen parts of the Libyan Investment Authority and the National Wealth Fund.
Thematic and Policy Trends
Energy transition and critical minerals. High oil prices are boosting inflows, yet SWFs increasingly invest in renewable energy, hydrogen, grid storage and electric-vehicle supply chains. Funds such as Mubadala and ADQ acquired stakes in renewable developers; GIC and Temasek invested in battery technology; FONSIS (Senegal) co-financed solar plants.
Infrastructure and logistics. Ports, airports, data centres and rail corridors remain attractive due to steady cash flows and inflation protection. The India National Investment and Infrastructure Fund (NIIF) has co-invested with DP World in container terminals and logistics hubs, while QIA and PSP Investments bought stakes in Heathrow Airport. African funds prioritise transport corridors and energy transmission.
Digital economy and semiconductors. SWFs have become active venture investors in artificial intelligence, semiconductors and digital platforms. PIF, Mubadala and GIC have invested in U.S. and Asian semiconductor fabs, chip designers and AI start-ups. Funds often partner with private equity firms (e.g., Mubadala invested in SoftBank's Vision Fund, and ADIA invests with TPG and Silver Lake). Western FDI scrutiny, however, limits Chinese and Gulf participation in sensitive technologies.
Healthcare and biotech. The COVID-19 pandemic underscored the need for resilient healthcare systems. Norway's GPFG and Singapore's GIC increased allocations to health-care and biotech equities; Mubadala invested in Global Foundries and medical technology; NSIA established a healthcare development fund in Nigeria.
ESG integration. While ESG adoption among SWFs declined from 79% to 69% in 2023–24, most major funds still incorporate ESG considerations in manager selection and due diligence. European funds lead in climate reporting. Newer funds are adopting impact investing mandates—FONSIS and MIIF integrate local development goals, and GIC's new climate portfolio invests in decarbonisation technologies.
Sanctions and FDI screening. The U.S., EU, UK and Japan have strengthened FDI review regimes. CFIUS reviews in the U.S. have delayed or blocked Chinese and Gulf transactions, and the EU's screening regulation has enabled coordinated reviews. Canada and Australia are also tightening investment rules. Funds must navigate these hurdles by early engagement with regulators and by shifting focus to friendly jurisdictions.
Operating Models and Technology
SWFs vary widely in their operating models. Large funds such as GPFG, GIC and ADIA manage a significant portion in-house with highly paid teams; others outsource heavily to external managers to compensate for limited expertise. Many funds (e.g., NSIA, NIIF) use a fund-of-funds model, investing alongside private equity and infrastructure funds to build diversification quickly. Compensation models depend on public pay scales; some funds, particularly in the U.S. states and Canada, offer market-based incentives to attract talent.
Data and technology adoption is rising. The Invesco survey notes that nearly all sovereign investors see artificial intelligence as essential for future investment processes. Funds are investing in portfolio analytics, risk management systems and ESG data platforms. GIC and Temasek operate dedicated technology teams, and PIF has established innovation hubs.
12–24 Month Outlook
The macro outlook is mixed. High interest rates will keep government bond yields attractive, prompting some funds to rebuild fixed-income exposure. Oil prices are expected to remain elevated amid geopolitical tensions, supporting MENA inflows. However, global growth is slowing, and geopolitical risks persist. SWFs are likely to prioritise domestic development projects and energy transition investments, maintain high cash levels for potential budget drawdowns and cautiously increase private credit and infrastructure allocations. The pipeline of co-investment deals will remain robust, especially among Gulf, Asian and European funds targeting energy, infrastructure and technology.
Regional Deep Dives
Europe
Europe hosts more than 40 funds ranging from large savings vehicles to strategic development banks. Collective assets total roughly US$2.2 trillion, dominated by Norway's GPFG. The region leads on governance, with an average GSR score of 74% and broad adherence to the Santiago Principles.
Market Map and Mandates
Norway – Government Pension Fund Global (GPFG). With assets of 19,586 bn NOK (~US$1.86 trillion) at mid-2025, GPFG remains the world's largest SWF. It is a savings fund financed by oil revenues and invests globally: 70.6% in equities, 27.1% in fixed income, 1.9% in real estate and 0.4% in renewable-energy infrastructure. It is renowned for transparency and ESG policies; its Council on Ethics recommends exclusions of companies breaching human-rights or environmental norms.
State Oil Fund of Azerbaijan (SOFAZ). SOFAZ manages US$66.5 bn from oil and gas revenues. It is a hybrid stabilisation and savings fund. Investments are diversified across bonds, equities, real estate (London, Moscow, Tokyo) and domestic projects such as the Southern Gas Corridor. SOFAZ adheres to the Santiago Principles and publishes quarterly reports but remains subject to political influence.
Germany – KENFO (Nuclear Waste Management Fund). KENFO manages €24 bn to finance Germany's nuclear waste management costs. It invests across global equities, bonds and alternatives under a conservative, ESG-oriented policy. Its mandate is savings/long-term liability management, and it ranks high on governance.
France – Pensions Reserve Fund (FRR). The FRR held about €36 bn in assets at the end of 2024. Created to pre-fund the pension system, it invests globally through external managers with an emphasis on ESG and climate alignment. Withdrawals have been used to finance social-security deficits.
Ireland – Ireland Strategic Investment Fund (ISIF). ISIF is a sovereign development fund with €9.5 bn in assets. It targets a "double bottom line," generating commercial returns while supporting Irish economic development. Investments span climate (offshore wind, battery storage), housing, indigenous businesses and food. The fund has committed €8.8 bn across 248 investments and has attracted €12.6 bn of co-investment.
Spain – COFIDES (Compañía Española de Financiación del Desarrollo). COFIDES manages €6 bn and acts as Spain's international development and pandemic-recovery fund. It invests via the REACT-EU Solvency Support Fund and FASE to support Spanish companies' foreign expansion, attract foreign investment and strengthen firms affected by COVID-19. COFIDES co-invests with the European Union and other public institutions and is considered a strategic/development fund.
United Kingdom – National Wealth Fund. Transformed from the UK Infrastructure Bank, the fund had £27.8 bn (≈US$34 bn) in assets as of Oct 2024. It invests domestically in infrastructure and climate-aligned projects to support the government's net-zero goals.
Russia – National Wealth Fund (NWF). The NWF held 11.79 trillion rubles (~US$144.6 bn) as of May 1 2025. Liquid assets were 3.3 trillion rubles (US$39 bn). The fund is financed by energy windfalls and invests in foreign currencies (yuan, euro) and gold, as well as domestic infrastructure. Sanctions limit international diversification and impair transparency; Russia is not a Santiago signatory.
Capital Flows and Allocation
Europe's aggregate net flows have been moderate: Norway continues to reinvest oil revenues but also transfers funds to the national budget; SOFAZ and Russia's NWF have faced drawdowns to support fiscal deficits; smaller funds like ISIF and COFIDES are receiving capital injections from government recovery programmes. Allocation tilts vary: GPFG holds a high equity share, KENFO and FRR balance equities and bonds, while stabilisation funds keep large fixed-income reserves. European funds collectively favour renewables, digital infrastructure and semiconductors, reflecting EU strategic autonomy goals and climate commitments.
Regulatory/Policy Context
The EU Foreign Direct Investment (FDI) Screening Regulation requires Member States to review foreign investments that may affect security or public order. Several EU members have established formal screening mechanisms. The UK's National Security and Investment Act grants the government power to scrutinise deals in sensitive sectors (defence, energy, data). These regimes affect inbound SWF investments, particularly from China and the Gulf. On the policy front, the EU's Green Deal and REPowerEU strategy are creating opportunities in renewables, hydrogen and energy efficiency—areas where European SWFs can co-invest.
Near-term Outlook
European SWFs are likely to maintain their conservative risk posture while increasing allocations to climate infrastructure and digital autonomy. GPFG may continue reducing exposure to carbon-intensive sectors and allocate more to renewable-energy infrastructure; ISIF will focus on climate, housing and indigenous business; COFIDES will channel EU recovery funds into strategic industries. The macro environment—stagnant growth, high interest rates and geopolitical fragmentation—will encourage diversified, high-quality portfolios.
North America
North America hosts a diverse mix of state and provincial funds that operate similarly to SWFs. Combined assets exceed US$250 bn, but the region's funds are small relative to population and economic size. Governance standards are high, reflecting public accountability and independent boards.
Market Map and Mandates
Alaska Permanent Fund (APFC). With assets of US$84.6 bn (June 2025), the APFC is funded by oil royalties and invests to provide dividends to Alaskan residents. It is a hybrid savings and citizen-benefit fund. Its asset allocation as of Aug 11 2025 was: equities US$27.38 bn, bonds US$17.06 bn, private equity US$14.66 bn, real estate US$8.70 bn, private income/infrastructure US$7.55 bn, absolute return US$5.99 bn, tactical opportunities US$0.87 bn and cash US$2.49 bn.
Wyoming Permanent Mineral Trust Fund. The state treasurer invests US$31.5 bn (May 2025) derived from severance taxes on minerals. Earnings fund more than 30% of the state's annual budget, making it primarily a savings/stabilisation fund. Investments are diversified across equities, fixed income, real estate and alternatives.
North Dakota Legacy Fund. The Legacy Fund held US$12.55 bn as of May 31 2025. It receives 30% of oil and gas tax revenues and transfers earnings to the general fund at the end of each biennium. The fund invests in a mix of global equities, fixed income and real assets; governance is overseen by the Retirement and Investment Office.
Texas Permanent School Fund (PSF). The PSF had over US$57 bn in assets as of 2024 and funds public education in Texas. Revenues come from land royalties and investment returns. It operates as a savings/endowment fund, investing in equities, bonds and real estate.
New Mexico State Investment Council (SIC). The SIC manages roughly US$60 bn of permanent funds for state beneficiaries (land grant and severance tax permanent funds). Although we cannot directly cite a source due to access restrictions, the figure is widely reported by the SIC.
Canada Pension Plan Investment Board (CPPIB), Public Sector Pension Investment Board (PSP) and Caisse de dépôt et placement du Québec (CDPQ). These large public pension funds manage C$576 bn, C$264 bn and C$434 bn respectively. While they are pension funds rather than SWFs, they function as state-owned investors and follow sophisticated investment strategies. CPPIB invests across equities, real estate, infrastructure and private equity; PSP and CDPQ have similar diversification and strong ESG policies.
Capital Flows and Allocation
North American funds generally experience steady inflows from resource royalties and investment returns. Alaska, however, pays annual dividends to residents, leading to periodic outflows. Asset allocation emphasises diversified global portfolios with a growing share of private markets. APFC's allocation breakdown shows heavy equity and private equity exposure. The funds maintain high liquidity to buffer budget volatility but increasingly invest in infrastructure and private credit to enhance returns. Co-investment is less common than in Asia or MENA, although some state funds partner with private equity firms on real estate and energy projects.
Regulatory/Policy Context
The United States operates a stringent Committee on Foreign Investment in the United States (CFIUS) review process that assesses national security risks associated with foreign investments. While CFIUS does not apply to state funds' outbound investments, it influences inbound transactions by foreign SWFs. Canada similarly screens foreign investments under the Investment Canada Act. At the federal level, an executive order signed in 2025 signalled an intent to explore the creation of a U.S. federal sovereign wealth fund, though details remain vague.
Near-term Outlook
North American funds are expected to gradually increase allocations to infrastructure, private credit and technology while maintaining high liquidity for budget support. Commodity price volatility will drive contributions to Alaska, Wyoming and North Dakota funds. Interest-rate uncertainty may push funds to lock in higher bond yields. ESG integration will stay prominent given public scrutiny.
Latin America
Latin America hosts approximately 12 sovereign funds with combined assets around US$30 bn, making it one of the smallest regions. Funds are mostly stabilisation vehicles funded by oil, gas or mineral revenues and have modest savings mandates. Regional governance scores average 42%, the lowest globally, reflecting limited transparency and political influence.
Market Map and Mandates
Chile – Economic and Social Stabilisation Fund (ESSF). As of June 2025 the ESSF held US$3.845 bn. It is funded by copper revenues and invests primarily in sovereign bonds and money-market instruments to stabilise the budget. The fund saw heavy withdrawals during the COVID-19 crisis and has been rebuilding its balance.
Chile – Pension Reserve Fund (FRP). The FRP holds about US$8.6 bn and serves as a long-term savings vehicle to support future pension liabilities. Investments are mainly in fixed income and equities; governance is relatively strong among regional peers.
Trinidad & Tobago – Heritage and Stabilisation Fund (HSF). The HSF reported a net asset value of US$6.0879 bn at September 2024. It invests energy revenues in two portfolios: a stabilisation portfolio (short-term, high liquidity) and a heritage portfolio (long-term growth in equities and bonds).
Guyana – Natural Resource Fund (NRF). Thanks to booming offshore oil production, the NRF accumulated over US$3.1 bn by end-2024. The fund invests in U.S. Treasuries and other high-quality instruments to preserve capital and gradually build savings for future generations. Withdrawals finance government budgets and infrastructure projects.
Mexico – Funds for Stabilisation of Budget Revenues (FEIP and FEIEF). Mexico operates multiple stabilisation funds funded by oil hedging profits and fiscal surpluses. Assets have diminished after repeated drawdowns; latest publicly available figures suggest balances below US$1 bn. Governance is opaque, and the funds are managed by the Ministry of Finance.
Peru – Fiscal Stabilisation Fund and Colombia – Savings and Stabilisation Fund. These funds are small (<US$1 bn) and primarily hold foreign-currency deposits for budget stabilisation.
Capital Flows and Allocation
Latin American funds experienced significant withdrawals during the pandemic; Chile's ESSF and Colombia's stabilisation fund transferred billions to finance emergency spending. Guyana's NRF stands out with rapid inflows from oil exports. Asset allocation favours safe, liquid instruments—sovereign bonds and deposits—to preserve capital. Development or strategic investing is limited, although Guyana plans to fund infrastructure and diversification and Chile's FRP has minor equity exposure.
Regulatory/Policy Context
Many Latin American funds are enshrined in fiscal rules that cap withdrawals when commodity revenues fall below trend. However, political pressures often override rules, leading to premature drawdowns. Institutional weaknesses and limited investment expertise constrain diversification. Regional cooperation through development banks (CAF, IDB) offers technical assistance for improving governance.
Near-term Outlook
The outlook hinges on commodity prices, particularly oil and copper. If prices remain high, funds could rebuild buffers and establish new investment programmes in infrastructure and climate adaptation. Guyana's NRF will continue to grow rapidly and may shift gradually toward a savings/heritage mandate. Governance reforms, possibly inspired by Santiago Principles, could improve transparency.
Asia and Middle East
Asia and the Middle East collectively dominate the SWF landscape. The region hosts around 45 funds with combined assets exceeding US$9 trillion. Mandates vary from savings and reserve management to strategic industrial policy. Governance scores average 51% in Asia and 48% in MENA, masking extremes from high-scoring Singapore funds to opaque Gulf and Chinese funds.
Market Map and Mandates
China – China Investment Corporation (CIC). CIC manages US$1.33 tn of total assets. It is a savings and diversification fund tasked with investing part of China's foreign-exchange reserves. Allocation (2023): 33.13% public equity, 16.46% fixed income, 48.31% alternative assets and 2.10% cash. The 10-year annualised net return was 6.57%. Governance is relatively opaque; CIC is not a full Santiago signatory but publishes annual reports.
Singapore – GIC. GIC manages an estimated US$936 bn. It is a savings fund investing globally to preserve and enhance Singapore's purchasing power. GIC discloses only broad allocation ranges; equities account for about 51%, fixed income 26% and the remainder is in alternatives and cash. The 20-year annualised real return is 3.8% above global inflation. Governance is strong despite limited disclosure; the fund follows prudent risk management and ESG integration.
Singapore – Temasek. Temasek's net portfolio value was S$434 bn (~US$320 bn) at 31 March 2025. If unlisted assets are marked to market, the value is S$469 bn. Temasek is a commercial investment company owning stakes in banks (DBS), telecoms (Singtel) and industrial firms; 52% of its portfolio is in Singapore businesses. It invests globally in technology, financial services and life sciences. Governance is high but outside the Santiago Principles.
Hong Kong – Exchange Fund. Managed by the Hong Kong Monetary Authority, the fund's total assets were HK$4,297.1 bn at end-June 2025 (~US$550 bn). The Exchange Fund backstops Hong Kong's currency board and invests in bonds, equities and private markets. A separate Future Fund invests for long-term growth.
Middle East – Abu Dhabi Investment Authority (ADIA). ADIA manages around US$1.11 tn (Global SWF ranking). It is a savings fund that invests globally across public and private markets. ADIA is increasingly co-investing in infrastructure and technology. Disclosures are limited, though ADIA is a Santiago signatory.
Middle East – Public Investment Fund (PIF). PIF's assets surpassed US$1.15 tn and are expected to grow further. It has a strategic/development mandate to diversify Saudi Arabia's economy and fund giga-projects (NEOM, Qiddiya). PIF invests in global technology (Uber, Lucid), sports (Newcastle United) and domestic infrastructure. It draws funding from oil surpluses, debt issuance and asset transfers. The fund has become one of the world's most aggressive investors and accounts for the bulk of Middle East deployment.
Middle East – Kuwait Investment Authority (KIA). KIA manages about US$1 tn through the Future Generations Fund and the General Reserve Fund. It is a savings and stabilisation fund; asset allocation is undisclosed but known to include equities, fixed income, real estate and private equity. KIA was one of the first SWFs and is a founding member of the IFSWF.
Middle East – Qatar Investment Authority (QIA). QIA manages around US$445 bn. It invests in global blue-chip companies (Credit Suisse, Volkswagen), real estate (London's Canary Wharf), infrastructure and private equity. QIA has become more transparent and is expanding into energy transition projects.
Middle East – Mubadala Investment Company. Mubadala manages roughly US$303 bn. It is a development and commercial fund, holding stakes in GlobalFoundries, Masdar (renewables), aerospace and healthcare. The fund co-invests with global partners (e.g., SoftBank Vision Fund). It is merging certain portfolios with Abu Dhabi Developmental Holding Company (ADQ).
Middle East – ADQ. ADQ controls around US$200 bn of assets and bundles Abu Dhabi state-owned companies in sectors such as utilities, aviation, ports and agriculture. It invests domestically and internationally to support economic diversification.
Middle East – Oman Investment Authority (OIA). OIA manages about US$41 bn. It combines a savings/stabilisation fund with a strategic development fund, investing in logistics, tourism and petrochemicals.
Others: Sarawak Sovereign Wealth Future Fund (Malaysia, launched 2024), Maharlika Investment Fund (Philippines, launched 2023), Danantara (Indonesia, launched 2025 with US$61 bn in initial capital but expected to reach US$900 bn), NIIF (India, US$4.9 bn across funds), Chinggis Fund (Mongolia, launched 2025), Mutapa Investment Fund (Zimbabwe, US$
Others: Sarawak Sovereign Wealth Future Fund (Malaysia, launched 2024), Maharlika Investment Fund (Philippines, launched 2023), Danantara (Indonesia, launched 2025 with US$61 bn in initial capital but expected to reach US$900 bn), NIIF (India, US$4.9 bn across funds), Chinggis Fund (Mongolia, launched 2025), Mutapa Investment Fund (Zimbabwe, US$16 bn). These newer funds blend development and savings mandates and often assume control of state enterprises.
Capital Flows and Allocation
Middle Eastern funds have been the largest source of global SWF deployment, accounting for more than 54% of investments in the first half of 2024. High oil prices allowed ADIA, PIF and QIA to increase outbound investments and fund domestic mega-projects. Asian funds remained sizable net investors thanks to current-account surpluses and high investment returns. Allocation tilts include large exposures to alternatives—CIC allocates 48.3% to alternatives, and Temasek invests heavily in private equity and unlisted companies. Strategic funds like PIF allocate huge sums domestically, raising concentration risk. Co-investment networks are extensive: PIF and Mubadala co-invest with SoftBank and Blackstone; GIC partners with PSP and ADIA; NIIF co-invests with DP World.
Regulatory/Policy Context
Geopolitical tensions and FDI screening constitute key headwinds. The U.S. restricts Chinese investment in sensitive technologies and has pressured Gulf funds to align with Western sanctions. China's Anti-Foreign Sanctions Law and the U.S. Outbound Investment Screening proposals may further complicate cross-border flows. Gulf funds enjoy privileged access to U.S. and European assets due to energy interdependence but face scrutiny when investing in strategic sectors (chips, defence). Asia's new funds (Danantara, Maharlika, Chinggis) are establishing governance frameworks; success will depend on insulating them from political interference.
Near-term Outlook
Expect continued strong deployment from MENA funds, particularly in infrastructure, energy transition and technology. Asian funds will balance domestic strategic mandates with global diversification and may deepen partnerships with Indian and Southeast Asian companies. The creation of Indonesia's Danantara and Mongolia's Chinggis fund signals a trend toward state-enterprise consolidation within SWFs. However, high valuations and geopolitical risks will encourage disciplined selection and due diligence.
Africa
Africa has seen a proliferation of sovereign funds, with around 15–20 funds created in the past decade. Collective assets are roughly US$160 bn—tiny relative to the region's needs. Public pension funds in Africa manage a further US$244 bn. Funds often serve multiple roles: stabilisation, savings and development. Governance scores average around 48%; however, capacity varies widely.
Market Map and Mandates
Nigeria – Nigeria Sovereign Investment Authority (NSIA). NSIA's net assets nearly doubled to ₦4.35 trillion (≈US$2.9 bn) in 2024. It manages three funds: the Stabilisation Fund, Future Generations Fund and Nigeria Infrastructure Fund. NSIA invests in healthcare (Cancer Centres), toll roads, agriculture and power. It partners with the African Development Bank (AfDB) and private investors.
Botswana – Pula Fund. The Pula Fund, managed by the Bank of Botswana, had US$3.5 bn in assets as of December 2024. It is a savings fund invested in global equities and bonds. Strong governance and adherence to the Santiago Principles make it one of Africa's best-run funds.
Zimbabwe – Mutapa Investment Fund. Created in 2023 by consolidating state-owned enterprises, the Mutapa Fund manages US$16 bn in gross assets (June 2024). It aims to foster economic diversification and is the largest African fund after Angola's FSDEA. Its governance and transparency are evolving.
Angola – Fundo Soberano de Angola (FSDEA). FSDEA manages around US$2.5 bn. It invests in domestic infrastructure, hotels and agriculture, with an increasing focus on renewable energy. Governance remains a challenge amid political transitions.
Ghana – Minerals Income Investment Fund (MIIF). MIIF grew its assets from GH¢1.7 bn to GH¢3.2 bn (~US$0.3–0.4 bn) in 2022. It invests in gold, lithium and other minerals and aims to support downstream processing and value addition.
Senegal – FONSIS. FONSIS (Fonds Souverain d'Investissements Stratégiques) is estimated at around US$1 bn and acts as a strategic/development fund. It partners with the AfDB and private investors to finance infrastructure and renewable energy projects.
Egypt – The Sovereign Fund of Egypt (TSFE). TSFE manages about US$15 bn. It invests in renewable energy, logistics and tourism, often through partnerships with Gulf funds.
Other funds: Rwanda's Agaciro Development Fund (~US$200 m), Mauritius Sovereign Wealth Fund, Equatorial Guinea's Fund for Future Generations and the newly established Djibouti Sovereign Fund. Many are nascent and still building institutional capacity.
Capital Flows and Allocation
African funds are capital-constrained. They rely on commodity revenues (oil, gas, diamonds, minerals) and international borrowing. Net inflows increased in 2022–24 due to higher commodity prices, but funds often fund domestic infrastructure and budget deficits, limiting accumulation. Asset allocation skews towards liquid instruments; however, some funds (NSIA, FONSIS) invest directly in infrastructure and private equity to achieve development impact. Co-investment with multilateral development banks and private investors is common. For example, FONSIS co-financed solar power plants with the AfDB.
Regulatory/Policy Context
Legal frameworks vary widely; some funds are established by statute with clear withdrawal rules (Botswana, Nigeria), while others lack comprehensive legislation (Angola, Zimbabwe). Capacity constraints and political interference remain significant risks. Initiatives by the African Union and the IMF encourage adoption of best practices and support for building governance capacity. The African Sovereign Investors Forum (ASIF) promotes collaboration and co-investment among African SWFs.
Near-term Outlook
African funds will likely continue to grow gradually, helped by high commodity prices. Development mandates will drive investment in transport, energy transmission, mining and agriculture. At the same time, fiscal pressures and weak governance could lead to premature withdrawals. New funds (Mutapa, Djibouti) need to strengthen transparency to attract co-investors. Partnerships with Gulf and Asian funds could provide additional capital and expertise.
Data Annex
Master Table of Global SWFs (Selected Funds)
| Fund | Country | Region | AUM (US$ bn)* | Mandate Type | Funding Source | Governance Score† | Santiago Principles |
|---|---|---|---|---|---|---|---|
|
Government Pension Fund Global
(GPFG)
|
Norway | Europe | 1,860 | Savings | Oil revenues | High (74%) | Yes |
|
State Oil Fund of Azerbaijan
(SOFAZ)
|
Azerbaijan | Europe/Asia | 66.5 | StabilisationSavings | Oil & gas | Moderate | Yes |
|
KENFO
(Nuclear Waste Management Fund)
|
Germany | Europe | 26 | SavingsLiability Mgmt | Nuclear decommissioning fees | High | Yes |
|
FRR
(Pensions Reserve Fund)
|
France | Europe | 38 | Pension Reserve | Fiscal surpluses | High | Yes |
|
ISIF
(Ireland Strategic Investment Fund)
|
Ireland | Europe | 10 | StrategicDevelopment | Pension reserve transfer | High | Partial |
|
Alaska Permanent Fund
(APFC)
|
United States | North America | 84.6 | SavingsCitizen Benefit | Oil royalties | High | Yes |
|
Wyoming Permanent Mineral Trust
(WPMT)
|
United States | North America | 31.5 | SavingsStabilisation | Severance taxes | High | Yes |
|
Texas Permanent School Fund
(PSF)
|
United States | North America | 57 | SavingsEndowment | Land royalties | High | Yes |
|
Economic & Social Stabilisation Fund
(ESSF - Chile)
|
Chile | Latin America | 3.8 | Stabilisation | Copper revenues | Moderate | Yes |
|
Heritage & Stabilisation Fund
(HSF - Trinidad & Tobago)
|
Trinidad & Tobago | Latin America | 6.1 | StabilisationSavings | Oil & gas | Moderate | Yes |
|
Natural Resource Fund
(NRF - Guyana)
|
Guyana | Latin America | 3.1 | SavingsStabilisation | Oil revenues | Low | No |
|
China Investment Corporation
(CIC)
|
China | Asia | 1,330 | SavingsDiversification | FX reserves | Moderate | Partial |
|
GIC
(Government of Singapore Investment Corp)
|
Singapore | Asia | 936 | Savings | Fiscal surpluses/FX reserves | High | Yes |
|
Temasek
(Temasek Holdings)
|
Singapore | Asia | 320 | StrategicCommercial | Government dividends | High | No |
|
Public Investment Fund
(PIF - Saudi Arabia)
|
Saudi Arabia | MENA | 1,150 | StrategicDevelopment | Oil surplus, debt & asset transfers | Moderate | Partial |
|
Abu Dhabi Investment Authority
(ADIA)
|
UAE | MENA | 1,110 | Savings | Oil revenues | Moderate | Yes |
|
Kuwait Investment Authority
(KIA)
|
Kuwait | MENA | 1,000 | SavingsStabilisation | Oil revenues | Moderate | Yes |
|
Qatar Investment Authority
(QIA)
|
Qatar | MENA | 445 | SavingsStrategic | Natural gas revenues | Moderate | Partial |
|
Nigeria Sovereign Investment Authority
(NSIA)
|
Nigeria | Africa | 2.9 | StabilisationSavingsDevelopment | Oil revenues | High | Yes |
|
Pula Fund
(Botswana)
|
Botswana | Africa | 3.5 | Savings | Diamonds & foreign reserves | High | Yes |
|
Mutapa Investment Fund
(Zimbabwe)
|
Zimbabwe | Africa | 16 | StrategicDevelopment | State-owned enterprises | Low | No |
† Governance score based on the Global SWF Governance, Sustainability and Resilience (GSR) scoreboard.
Regional Summary
Regional Summary - Sovereign Wealth Funds
| Region | Approx. # of Funds | Aggregate AUM (US$ bn) | Mandate Mix (%) | Avg. Governance Score | Five Largest Funds | Net Flow Trend (12m) | Top Three Sectors |
|---|---|---|---|---|---|---|---|
|
Europe
|
40+
|
~2,200
US$ bn
|
Stabilisation
20%
Savings
60%
Strategic & Dev
15%
Pension
5%
|
74%
High
|
|
Neutral to Slight Outflow
Stabilisation draws in Russia; modest inflows elsewhere
|
|
|
North America
|
10+
|
~250
US$ bn
|
Stabilisation
20%
Savings
50%
Strategic & Dev
20%
Pension
10%
|
85%
Oceania Benchmark
|
|
Slight Inflow
Steady royalties; some withdrawals for dividends and budgets
|
|
|
Latin America
|
~12
|
~30
US$ bn
|
Stabilisation
70%
Savings
15%
Strategic & Dev
10%
Pension
5%
|
42%
Lowest Globally
|
|
Net Outflows
During pandemic; recovering thanks to oil price rebound
|
|
|
Asia & MENA
|
45+
|
~9,000
US$ bn
|
Stabilisation
25%
Savings
45%
Strategic & Dev
25%
Pension
5%
|
51% / 48%
Asia / MENA
|
|
Strong Inflow
Driven by oil revenues and surplus reserves
|
|
|
Africa
|
15–20
|
~160
US$ bn
|
Stabilisation
25%
Savings
30%
Strategic & Dev
40%
Pension
5%
|
48%
Moderate
|
|
Mild Inflow
Reliant on commodity prices; domestic spending pressures
|
|
Allocation and Performance (Selected Funds)
Allocation and Performance (Selected Funds)
| Fund | Public Equities (%) | Fixed Income (%) | Real Assets (%) | Infrastructure/ Private Income (%) | Private Equity (%) | Cash/ Reserves (%) | 1Y / 3Y / 5Y Return* | Benchmark / Notes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
GPFG
(Norway)
|
N/A
included in equities
|
6.5%
(2024)
5.8% / 7.3%
|
MSCI ACWI, Bloomberg Barclays Global Aggregate
High equity allocation in line with long-term mandate
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
APFC
(Alaska)
|
9.5%
7.4% / 8.2%
(est.)
|
Custom policy benchmarks
Balanced portfolio supporting dividends
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
SOFAZ
(Azerbaijan)
|
3.5%
2.8% / 3.2%
|
Barclays Bond indices
Conservative allocation for stabilisation purposes
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
ISIF
(Ireland)
|
6.5%
(2024)
8.0% / 7.5%
|
CPI +4%
High private equity exposure for development impact
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CIC
(China)
|
9.4%
7.3% / 6.6%
(10-yr 6.57%)
|
Multi-asset benchmark
Large alternatives allocation
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
GIC
(Singapore)
|
7.0%
5.6% / 5.4%
(real return 3.8% above inflation)
|
Proprietary reference portfolio
High equity allocation with diversified alternatives
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Temasek
(Singapore)
|
5.8%
(1-yr)
8.5% / 7.0%
(3-yr / 5-yr approx.)
|
Risk-adjusted cost of capital
Must invest in Singapore companies and strategic plays
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
PIF
(Saudi Arabia)
|
*Where return data is not publicly available, estimates are based on fund reports or secondary sources. Many funds report net asset growth rather than annualised returns. Co-investment Network (Edge List)Co-investment Network (Edge List)
Global SWF Co-investment Partnerships: This network demonstrates the complex web of strategic partnerships between sovereign wealth funds and private investment firms, highlighting deal flow, risk sharing, and collaborative investment strategies across sectors and geographies.
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