Biggest Sovereign Wealth Funds

A sovereign wealth fund can be defined as a state owned investment fund comprised of money generated by the government. Sovereign wealth fund provides innumerable benefits for a country’s economy and its citizens. Some of the biggest sovereign wealth funds include Norway Government Pension Fund Global, China Investment Corporation, SAFE Investment Company, Abu Dhabi Investment Authority and Kuwait Investment Authority.

Norway Government Pension Fund Global

70% is the 2022 allocation of Norway’s sovereign wealth fund in equities and Norway Government Pension Fund Global is the largest in the world. The initial objective of Norway Government Pension Fund Global was creating a fund to hold surplus revenues from the country’s oil trade.

China Investment Corporation

China Investment Corporation is a $1.35 trillion Sovereign Wealth Fund and this fund is used for managing a portion of China’s foreign currency reserves. This sovereign wealth fund was established by the Chinese finance ministry in 2007 by issuing special funds. China Investment Corporation sovereign wealth fund invests on a long term basis in global public as well as private assets. The China Investment Corporation operates three subsidiaries with two international offices and it is the largest sovereign wealth fund in the world followed by Norway Government Pension Fund Global, the Abu Dhabi Investment Authority, the Kuwait Investment Authority, and Singapore’s GIC Private Limited.

SAFE Investment Company

The SAFE(Safe Administration of Foreign Exchange) is the Hong Kong branch of the Chinese sovereign wealth fund. SAFE Investment Company is a private company now and the Chinese State Administration of Foreign Exchange officials serve on its director board. It functions as a foreign currency reserve and the ultimate objectives of SAFE Investment Company are to gain investment returns, increase diversification of holdings, and to reduce the country’s exposure to fluctuations in the value of the US dollar. This sovereign wealth fund is currently overseen by the people’s Bank of China. SAFE Investment company was opened in 1997 and it focuses on maintaining foreign currency reserves.

Abu Dhabi Investment Authority

Abu Dhabi Investment Authority is an investor invests on behalf of the Government of Abu Dhabi to generate long term value. It has been ranked as the third largest in the world in 2022 making it one of the world’s biggest institutional investors. The Abu Dhabi Investment Authority has over $708 billion in assets. Little is known about the investment methodology or portfolio of Abu Dhabi Investment Authority since the organization prefers not to disclose its specific holdings. The vast amount of wealth managed by Abu Dhabi Investment Authority is sourced from Abu Dhabi’s large oil reserves.

Kuwait Investment Authority

Kuwait Investment Authority is a sovereign wealth fund located in Kuwait City, Kuwait, Middle East. It was established in 1953 and Kuwait Investment Authority is one of the oldest sovereign funds in the world. Kuwait Investment Authority was established with the unique mission of managing the assets of Kuwait. The Kuwait Investment Authority manages two main funds: the General Reserve Fund and the Future Generations Fund. Kuwait Investment Authority is an asset manager and it does not own any of the assets it manages. The Kuwait Investment Authority is ambitious about becoming a world class investment management organization.