Title: SOVEREIGN WEALTH FUNDS A statistical overview
1SOVEREIGN WEALTH FUNDS A statistical overview
Marko Maslakovic Senior Economist International
Financial Services, London www.ifsl.org.uk
2Sovereign investment vehicles
trillion
- Government controlled and owned pools of funds
funded by official reserves, but managed and
invested separately. - Typically held in foreign assets and invested
for the long-term. - Some over 50 years old / more than a half at
least 10 years old - Vary in size, mgt. structure, sources of funds,
use of funds (stabilisation, savings)
3Growth of SWFs assets
trillion
64
Commodity
87
13
36
Non-commodity
To reach 5 trillion by 2010 and 10 trillion by
2015
4Global funds under management
trillion, end-2007
SWFs are, however, increasing at a greater pace
and their influence on global markets will grow
in the coming years
5Where is the money coming from?Global current
account imbalances
trillion
Euro Area
Asia
Oil Exporters
United States
Shift in structure of global finance - rise in
importance of Emerging Markets
6Sources of SWFs assets
- Commodity sources (around 2/3 of total)
- Export of Oil
- Gas
- Copper, etc...
- Non commodity sources (around 1/3 of total)
- Official foreign exchange reserves
- Pension funds
- Fiscal surpluses
- Privatisation receipts
by 2010 (60 commodity / 40 non-commodity)by
2015 (48 commodity / 52 non-commodity)
7SWFs market share by continent
share, end-2007
- United Arab Emirates Singapore Norway
China Saudi Arabia 75 - Highly concentrated in total around 50 SWFs
8Commodity sources
Oil exporting countries foreign investments
assets share, end-2007
Total 4.1 trillion
Growth at a compound annual rate of around 20
since 2000.
9Non-commodity sources
Official foreign exchange reserves share,
end-2007
Total 6.5 trillion
10Asian official FX reserves
bn
63 of world total
Other Asia
44 of world total
China
Growth at a compound annual rate of around 20
since 2000.
11The UKs position on SWFs
- The UK Government is commited to ensuring the UK
remains an open and competitive market for
international investment - The UK has a regulatory, competition and national
security framework that ensures that all foreign
investment (whether from a SWF or not) meets the
appropriate criteria