Assets of State-Owned Investors (SOI) in the world reached a staggering $49.7 trillion in 2023, representing a 2.9% increase from the $48.3 trillion recorded in 2022.
State-owned investors (SOIs) are entities that are wholly or partially owned by a government or a state. These investors manage and control financial assets on behalf of the government.
State-owned investors can take various forms, including Sovereign Wealth Funds (SWFs), Public Pension Funds (PPFs), and Central Banks.
According to the Global SWF 2024 Annual Report, the Assets Under Management (AUM) of State-Owned Investors in 2023 fell $1.1 trillion short of the $50.8 trillion recorded in 2021.
In 2023, the AUM of Central Banks declined marginally by $0.1 trillion to $15.4 trillion from $15.5 trillion in 2022.
The AUM of PPFs appreciated by 3.6% to $23.1 trillion, from $22.3 trillion in 2022. While for SWFs, there was a 6.7% appreciation in AUM to $11.2 trillion, from $10.5 trillion in 2022.
Breakdown of the Report
- Asia takes the lead with the biggest chunk, as Asian state-owned investors manage a whopping $16.724 trillion in assets. Among them, 34 central banks hold assets valued at $7.825 trillion, 52 public pension funds manage assets worth $4.871 trillion, and 33 sovereign wealth funds handle assets worth $4.028 trillion.
- They are followed by North America, as North American SOIs manage $13.165 trillion in assets. Two central banks hold assets valued at $355 billion, 111 public pension funds hold assets valued at $12.471 trillion, and 27 sovereign wealth funds hold assets valued at $339 billion.
- European State-Owned Investors manage $10.145 trillion in assets. Among them, 43 central banks hold assets valued at $4.667 trillion, 69 PPFs hold assets valued at $3.657 trillion, and 25 SWFs hold assets valued at $1.821 trillion.
- Middle East and North African (MENA) SOIs manage $6.684 trillion in assets. These include 21 central banks which hold assets valued at $1.452 trillion, 13 PPFs that manage assets valued at $772 billion, and 28 SWFs which manage assets valued at $4.46 trillion.
- Oceanic (Australian and Oceania countries) SOIs manage $1.426 trillion in assets. Among them, 8 central banks hold assets valued at $75 billion, 17 PPFs valued at $938 billion, and 14 SWFs valued at $416 billion.
- Latin American SOIs manage assets worth $1.104 trillion in assets. Among them, 31 central banks hold assets valued at $883 billion, 26 PPFs hold assets at $184 billion, and 16 SWFs hold assets at $37 billion.
- Sub-Saharan African SOIs manage assets worth $441 billion. Among them 37 central banks which hold assets worth $165 billion, 14 PPFs which hold assets worth $214 billion, and 32 SWFs which hold assets worth $62 billion.
The top five countries in terms of SOIs were the USA with $11.335 trillion, China with $6.766 trillion, Japan with $3.1 trillion, UAE with $2.21 trillion, and Canada with $1.83 trillion.
10 Largest State-Owned Investors in 2023
- People’s Bank of China with AUM of $3.308 trillion
- Japan’s Government Pension Investment Fund with AUM of $1.469 trillion
- Norway’s Norges Bank Investment Management with AUM of $1.379 trillion
- China Investment Corporation with AUM of $1.240 billion
- Bank of Japan with AUM of $1.238 trillion
- European Central Bank with an AUM of $1.182 trillion
- SAFE Investment Company, Hong Kong (China) with an AUM of $1.082 trillion
- Abu Dhabi Investment Authority (UAE) with AUM of $984 billion
- Swiss National Bank with an AUM of $811 billion
- Kuwait Investment Authority with an AUM of $801 billion.
