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How do Sovereign Wealth Funds Invest?

  • ,  Senior Investment Writer |
  • 22 Nov 2023


The latest insights into SWFs…

Sovereign Wealth Funds (SWFs) manage a total of $11.3 trillion in AUM globally. According to the latest data, this allocation is spread mostly among equities, fixed income, and alternatives (both liquid and illiquid). There is a small position in cash as well. The following selection of papers enables investors to engage with some of the latest insights pertinent to SWFs' asset allocation interests, and with practical analysis of the sector itself.


Prime Time For Bonds (PIMCO)

In the current environment, bonds appear poised to perform well, while equities could see lower (though still positive) risk-adjusted returns.

Stocks Or Bonds? (UBS AM)

The pullback in global equities over the past three months is tied to the selloff in the bond market. Should this change SWFs' approach towards these asset classes?

On Cash Allocation: Time To Retire The CD Player (MFS)

For compliance reasons, this paper is only accessible in certain geographies

The peak of central bank rates has historically been a major turning point with respect to the underperformance of cash relative to fixed income.

The Latest Gold Demand Trends (World Gold Council)

For compliance reasons, this paper is only accessible in certain geographies

This brief report offers allocators all they need to know about the supply-demand forces underpinning the global gold market.

Hedge Fund Industry Deep Dive (Aurum)

SWFs look towards alternatives to diversify their holdings. Here is an in-depth report at how hedge funds have performed over the long-term.

Comparing Real Estate and Infrastructure in a Portfolio Context (CAIS)

Both real estate and private infrastructure have historically had relatively low correlations to global public equities.

Forget the S&P 500. Pay Attention to the S&P 493 (The Economist)

The alternative benchmark offers a better view of America’s stock market. The S&P 500 is too skewed by the giant tech stocks, so argue the authors of the paper.


Examining Investment Strategies for Sovereign Wealth Funds (Morgan Lewis)

A growing number of sovereign wealth funds are re-evaluating today's market conditions to determine the most effective investment strategies.

Do Sovereign Wealth Funds Reduce Fiscal Policy Pro-cyclicality? (IMF)

Over the past few decades, the number of SWFs established has increased significantly, particularly by commodity-exporting countries

Podcast: Super Allocators | The French Sovereign Wealth Fund (Money Maze)

What role does the French Sovereign Wealth Fund play in the national economy in the current macroeconomic and geopolitical environment?

An Inside View of How China Finances Its Global Ambition (Top Traders Unplugged)

Sovereign wealth funds are state-owned investment funds that tap into a nation’s cash reserves to boost its economy. Find out how China's SWF invests.