Sovereign Wealth Funds’ (SWFs) Assets under Management (AuM) have seen a substantial increase over the past decade, rising from $6.7 trillion globally in 2014 to $12.7 trillion in 2023. These funds have evolved into a significant international investor class.
Our latest report, 'Sovereign Wealth Funds: Global trends and the UK’s role in the evolving landscape for Sovereign Investment Vehicles' indicates that SWFs’ AuM grew at an average annual rate of 7% from 2014 to 2023.
Although SWFs have existed for over a century, their considerable asset size and high liquidity has seen their profile increase in recent decades, with the report emphasising the prominence of SWFs outside advanced economies, noting that seven of the ten largest SWFs originate from emerging markets and middle-income economies.
In 2023, China held the largest share of SWFs’ AuM, accounting for around a fifth of the global total (21%), followed by the UAE (16.9%) and Norway (12.6%).
The report also highlights that SWFs are key contributors to the transition to renewable energy and sustainability. In 2023, Sovereign Investment Vehicles (SIVs), which include SWFs, invested $21.6bn in ‘green’ assets such as renewable energy or electric vehicles, more than double the amount invested in ‘black’ assets like carbon-based fossil fuels and mining.
Between 2018 and 2023, green investments grew at an annual average rate of 49%, compared to just 4% for black investments, according to TheCityUK's calculations.
