An annual report released Saturday revealed that assets held by sovereign wealth funds and government pensions rose to the level record $ 31.9 trillion in 2021 thanks to soaring US equities and oil prices, while investments hit their highest level in several years, despite continuing pandemic fears.
The report on state-owned investment instruments, prepared by the global sovereign wealth funds platform, showed that SWFs’ managed assets increased 6% over the year to $ 10.5 trillion, while government pension funds increased by 9% to $ 21.4 trillion.
The report also found that government institutional investors used more money, both in number and size of deals, at six-year highs. About $ 215.6 billion was spent, of which about half was by sovereign wealth funds.
Singapore’s sovereign wealth fund was in foreground, as its deal rate increased 75% to $ 31.1 billion, spread across 109 deals. One third of the capital was invested in the real estate sector, mainly in logistics.
In the report, Diego Lopez wrote that emerging markets lagged far behind, attracting only 23% of the capital. questyear, one of the lowest ratios recorded in the past six years.
Investors continued to monitor China closely, the report said Especially the campaign that targeted Chinese tech companies.
“Despite geopolitical tensions and regulatory concerns, most state-owned investment institutions are optimistic about Chinese equities,” the report concluded.
In total, the activities were supported by the launch of four new sovereign wealth funds quest’year. The platform’s annual report analyzes data from 161 sovereign wealth funds and 275 government pension funds.
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