In this article, we will take a look at the 15 largest sovereign wealth funds in the world. If you want to skip our analysis, you can go directly to the 5 Largest Sovereign Wealth Funds in the World.
Sovereign Wealth Funds
A sovereign wealth fund (SWF), or a sovereign investment fund is a state-owned investment fund made up of wealth generated by the government. In simple terms, a sovereign wealth fund is a state-owned savings portfolio from which a state invests in various financial and non-financial segments to grow capital and increase wealth. A well-managed sovereign wealth fund plays a vital role in a country's economy and adds to its surplus accounts. Popular sovereign wealth funds have investments in real and financial assets such as real estate, stocks, bonds, precious metals, and various other industries.
Since the COVID-19 pandemic, the global economy has suffered a massive shock as it continues its way back to recovery. Following the pandemic, things got difficult for State-Owned Investors (SOIs). 2022 was one of the most difficult years for SOIs, especially impacted by Russia's invasion of Ukraine which led to an increase in oil prices and drove inflation rates to new levels in almost four decades. Today, the global economy faces more threats due to geopolitical turmoil including rising tensions in the Middle East. Iran and its proxies are up against Israel and its allies, amidst the ongoing Russia-Ukraine war situation. On February 2, BBC reported that the US has approved plans for strikes on Iranian targets in Iraq and Syria.
According to Global SWF, the sovereign wealth funds shrank for the first year in 2022. However, the scale of the drop in sovereign wealth funds’ wealth in 2022 is debatable as most SWFs report with significant delays. Still, the SWFs lost around $1 trillion in 2022, as per Global SWF.
Compared to 2022, 2023 was much better for sovereign wealth funds as they increased their spending. On January 1, Reuters reported Saudi Arabia's Public Investment Fund (PIF) accumulated approximately a quarter of the $124 billion spent by SWFs worldwide in 2023. Saudi Arabia's SWF is one of the largest sovereign wealth funds in the world. Saudi Arabia generates most of its wealth from the oil economy and has designated a share of its oil wealth to the Public Investment Fund (PIF). The PIF spent a whopping $31.5 billion in 2023 compared to $123.8 billion spent for all sovereign wealth funds. Saudi Arabia is one of the richest Arab countries and the government is working on the diversification of its economy through various investments. PIF is playing a vital role in diversifying the country's economy. The PIF owns four of the biggest football clubs from the Saudi Pro League including Al-Ittihad, Al-Ahli, Al-Nassr, and Al-Hilal. Football clubs from the Saudi Pro League have been able to attract global football stars and icons including Cristiano Ronaldo, Karim Benzema, and World Cup winner N’Golo Kante.
In 2023, one of the major growth drivers for sovereign wealth funds worldwide was a strong rally in global stocks, which helped the SWFs gain a record $11.2 trillion. According to research by the Thinking Ahead Institute, the SWFs account for a record share of 38.9% of total assets among the largest 100 global asset owners.
The Sovereign Wealth Fund that Earned $213 Billion in 2023
Norway’s giant sovereign wealth fund has made massive gains in 2023. On January 30, Norges Bank Investment Management reported that Norway Government Pension Fund Global recorded a profit of 2.22 trillion Norwegian kroner, or $213 billion, in 2023. The remarkable gains for Norway Government Pension Fund Global were mainly driven by strong returns on its investments in technology stocks. The CEO of Norges Bank Investment Management, Nicolai Tangen, said:
“Despite high inflation and geopolitical turmoil, the equity market in 2023 was very strong, compared to a weak year in 2022. Technology stocks in particular performed very well.”
By the end of 2023, Norway’s SWF had almost 71% investments in equities, 27.1% in fixed income, and 1.9% in unlisted real estate, among others. Norway Government Pension Fund Global has a small stake in about 9,000 companies worldwide including Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Nestlé S.A. (OTC:NSRGY), and Samsung Electronics Co Ltd (KRX:005930), among others. The success of these tech companies is a major reason why Norway Government Pension Fund Global gained massive profits in 2023.
Over the past 12 months, Apple Inc. (NASDAQ:AAPL) has given returns of almost 24%, while Microsoft Corporation (NASDAQ:MSFT) has returned 56%, as of February 2. Apple Inc. (NASDAQ:AAPL) has made new advancements in its product line, including the latest launch of its mixed-reality headset, the Apple Vision Pro, on February 2. Apple Inc. (NASDAQ:AAPL) is also one of Wall Street analysts' favorite stocks and has received 19 buy ratings from analysts over the past 3 months.
On the other hand, Microsoft Corporation (NASDAQ:MSFT) continues to advance in AI. On January 15, Microsoft Corporation (NASDAQ:MSFT) announced that it has made a 10-year strategic collaboration with Vodafone Group Public Limited Company (NASDAQ:VOD). Through this partnership, the companies will collaborate to enhance Vodafone’s customer experience using Microsoft Corporation’s (NASDAQ:MSFT) generative AI technology.
Samsung Electronics Co Ltd (KRX:005930) also continues to advance its technology using AI on its Android phones and other electronic devices. On January 31, Samsung Electronics Co Ltd (KRX:005930) reported full-year 2023 results. The South Korean company posted KRW 258.94 trillion in annual revenue and KRW 6.57 trillion in operating profit. As of February 2, the stock has returned over 20% to investors over the past 12 months.
Let’s now take a look at the largest sovereign wealth funds in the world.
15 Largest Sovereign Wealth Funds: One Earned $213 Billion in 2023
Our Methodology
To compile our list of the largest sovereign wealth funds in the world, we took the data from Sovereign Wealth Fund Institute (SWFI), an American company that analyzes public asset owners. We have ranked the largest sovereign wealth funds in the world based on their total assets in ascending order.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15 Largest Sovereign Wealth Funds: One Earned $213 Billion in 2023
15. Korea Investment Corporation (KIC)
Total Assets: $181.40 Billion
Korea Investment Corporation (KIC) was established in 2005 and is based out of Seoul, South Korea. Korea Investment Corporation (KIC) has $181.40 billion in total assets and ranks 15th among the largest sovereign wealth funds in the world.
14. Abu Dhabi Developmental Holding Company PJSC (ADQ)
Total Assets: $190 Billion
Abu Dhabi Developmental Holding Company PJSC (ADQ) is a sovereign wealth fund based out of Abu Dhabi, United Arab Emirates. Founded in 2018, Abu Dhabi Developmental Holding Company PJSC (ADQ) has $190 billion in total assets. ADQ ranks among the largest sovereign wealth funds in the world.
13. Türkiye Varlık Fonu Yönetimi A.Ş. (Turkey Wealth Fund)
Total Assets: $279.26 Billion
Established in 2016, Türkiye Varlık Fonu Yönetimi A.Ş., or Turkey Wealth Fund is located in Istanbul, Türkiye. Turkey Wealth Fund has $279.26 billion in total assets and is one of the largest sovereign wealth funds in the world.
12. Investment Corporation of Dubai (ICD)
Total Assets: $341.06 Billion
Investment Corporation of Dubai (ICD) is another Emirati sovereign wealth fund based out of Dubai. Investment Corporation of Dubai (ICD) has $341.06 billion in total assets and ranks 12th among the largest sovereign wealth funds in the world.
11. National Council for Social Security Fund of the People’s Republic of China (NSSF)
Total Assets: $414 Billion
Founded in 2000, the National Council for Social Security Fund of the People’s Republic of China (NSSF) is one of the largest sovereign wealth funds in the world. The National Council for Social Security Fund has $414 billion in total assets.
10. Temasek Holdings Limited (Temasek)
Total Assets: $492.21 Billion
Temasek Holdings Limited (Temasek) is a sovereign wealth fund based out of Singapore. Temasek Holdings Limited has $492.21 billion in total assets and ranks 10th among the largest sovereign wealth funds in the world.
9. Qatar Investment Authority (QIA)
Total Assets: $501 Billion
Qatar Investment Authority (QIA) is based out of Doha and was founded in 2005. Qatar Investment Authority (QIA) is one of the largest sovereign wealth funds in the world having a total assets of $501 billion.
8. Hong Kong Monetary Authority Investment Portfolio (KKMA IP)
Total Assets: $514.22 Billion
Hong Kong Monetary Authority Investment Portfolio (KKMA IP) is Hong Kong’s sovereign wealth fund with $514.22 billion in total assets. Hong Kong Monetary Authority Investment Portfolio (KKMA IP) ranks eighth among the largest sovereign wealth funds in the world.
7. GIC Private Limited (GIC)
Total Assets: $770 Billion
GIC Private Limited (GIC) is based out of Singapore and has $770 billion in total assets. Founded in 1981, GIC Private Limited (GIC) ranks among the largest sovereign wealth funds in the world.
6. Public Investment Fund (PIF)
Total Assets: $776.66 Billion
The famous Public Investment Fund (PIF) of Saudi Arabia gained global attention with a hefty investment in its football league, bringing in some of the biggest footballing stars including Cristiano Ronaldo, Neymar, and Benzema, among others. Public Investment Fund (PIF) has $776.66 billion in total assets.
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Disclosure: None.15 Largest Sovereign Wealth Funds: One Earned $213 Billion in 2023is originally published on Insider Monkey.
