An annual report on Saturday revealed that assets held by the world’s sovereign wealth and pension funds hit $31.9 trillion in 2021; an all-time record. This came as U.S. stock and oil prices continued to rise, while the value of investments rose to their highest levels in the last few years.
The report, compiled by industry specialist Global SWF, determined that investment vehicles owned by sovereign wealth funds rose 6% to $10.5 trillion, while public pension fund assets gained 9%; resulting in a value of $21.4 trillion.
In contrast, the report revealed that emerging markets struggled this year, only attracting 23% of the capital this year, one of the lower figures over the last six years.
The vast majority of the money was deployed by state-owned investors, with public sovereign funds spending almost half of the $215.6 billion that was invested. While venture capital investments made up a small portion of deployed funds, they grew by over 80% $18.2 billion.
Diego Lopez at Global SWF had the following reflection on the past year’s figures: “The pandemic provoked a seismic change in strategy, with a shift towards sectors that are set to soar amid the change in lifestyles, consumer behavior, and public needs.”
