Wed, Feb 10, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Preqin research shows Sovereign Wealth fund assets surpass $5tln

Thursday, October 10, 2013
Opalesque Industry Update - New research in the 2014 Preqin Sovereign Wealth Fund Review reveals that sovereign funds globally have added over $750bn to their total assets under management over the last year, from $4.62tn in 2012 to $5.38tn in 2013. This growth, which is the largest annual increase in total sovereign wealth fund assets since Preqin began tracking this information, can be accounted for by both the number of new sovereign wealth funds formed over the last few years, as well as capital injected into existing sovereign wealth funds.

Interestingly, Asia-based sovereign wealth funds have shown some of the largest growth in assets under management, with the assets of these sovereign wealth funds growing, on average, by 19% since 2012. This is in comparison to the average 6% growth in assets under management exhibited by Middle Eastern sovereign wealth funds. In fact, Asia-based sovereign wealth funds account for a significant 47% of global aggregate sovereign wealth fund assets, despite only representing 22% of sovereign wealth funds globally by number.

Other Key Facts:

  • 15 new sovereign wealth funds have been formed since 2008, with eight of these being formed in the past two years alone.
  • 63% of sovereign wealth funds have seen an increase in their assets under management since 2012.
  • The largest sovereign wealth fund globally is Government Pension Fund – Global, based in Norway, with $775.2bn in assets under management; this is an increase of $185bn since 2012.
  • The proportion of sovereign wealth funds investing in private equity and hedge funds has decreased over the past year, from 57% and 38% investing in private equity and hedge funds respectively in 2012 to 45% and 31% respectively in 2013. Some of this decline can be accounted for by the growth in the number of new sovereign wealth funds being established, as these newer sovereign wealth funds typically will not allocate to alternative investments for a few years as they build up their investment teams and accumulate assets.
  • However, appetite for real estate and infrastructure has remained steady, with 54% of sovereign wealth funds investing in real estate in both 2012 and 2013, and the proportion investing in infrastructure rising slightly from 56% in 2012 to 57% in 2013.
  • 72% of sovereign wealth funds investing in private equity have a preference for venture capital investments, a significant increase on the 59% which cited the same preference in 2012.
  • MENA, North America, and Asia-based sovereign wealth funds show the greatest appetite for private real estate investments; 81%, 80% and 75% of sovereign wealth funds respectively in each region invest in the asset class.

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. How Einhorn survived a nightmare year[more]

    From Bloomberg.com: Even when a hedge fund has an awful year, which was the case for David Einhorn's Greenlight Capital, there are lessons to be learned. Many funds would have had a tough time surviving a year like Einhorn experienced in 2015, when all the stars seemed to align against him and Green

  2. Legal - Hedge fund founder wins early release in U.S. insider trading case, Gramercy seeking $1.3 billion from Peru over land-bond dispute[more]

    Hedge fund founder wins early release in U.S. insider trading case From Reuters/Streetinsider.com: Former hedge fund manager Doug Whitman on Tuesday won a reprieve from serving the remainder of his two-year sentence for insider trading after several judges expressed skepticism that his 2

  3. Investing - David Einhorn finds a winner in Michael Kors[more]

    From Thestreetinsider.com: Greenlight Capital hedge fund manger David Einhorn took his lumps in 2015. The fund lost over 20 percent on the year amid bets gone bad being long a plunging SunEdison and short a couple high-flying FANG stocks. However, today Einhorn is again showing his stock picking pro

  4. Investing - Avenue Capital's Marc Lasry: We like European bank loans, Comment: A bunch of hedge fund managers are chasing the 'dream of crushing a major structural problem'[more]

    Avenue Capital's Marc Lasry: We like European bank loans From CNBC.com: European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage. Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital

  5. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time