Global SWF reveals that sovereign wealth fund assets have increased by 9% since the start of the year, to $9.9 trillion. This development was encouraged by the good performance of the stock markets.

State investment funds are continuing their momentum thanks to strong stock markets. The global assets of sovereign wealth funds grew by 9% this year to $9.9 trillion, according to data from “Global SWF.” State-owned investment funds have benefited in particular from the good performance of the global stock markets. Some have taken the opportunity to sell securities and recover liquidity, which is requested from them by their State to revive the growth hard hit by the pandemic. Some funds (Russia, Malaysia, Kuwait, Qatar, Nigeria...) have also invested in their own countries to support their business or certain sectors such as airlines. The Egyptian sovereign fund will inject funds into seawater desalination plants for its population. His counterpart in Nigeria is going to build hospitals in his capital.

The Norwegian fund, the largest in the world with 1.170 billion euros, gained nearly 9.4% in the first half thanks to its stock market portfolio (+13.7%) and while its bond investments lost 2%. In 2020, nearly three-quarters of sovereign wealth funds' direct investments were made in equities, taking advantage of falling prices, according to data from the International Sovereign Wealth Fund Forum (IFSWF). In previous years, between 50% and 60% of their investments were made on the stock markets and the others on real estate and the unlisted.