Market misery deals sovereign wealth funds historic setback in 2022

30

Heavy falls in stock and bond markets over the last year have cut the combined value of the world s sovereign wealth and public pension funds for the first time ever – and to the tune of $2.2 trillion, an annual study of the sector has estimated.

The report on state-owned investment vehicles by industry specialist Global SWF found that the value of assets managed by sovereign wealth funds fell to $10.6 trillion from $11.5 trillion, while those of public pension funds dropped to $20.8 trillion from $22.1 trillion.

“These are paper losses and some of the funds will not see them realized in their role as long-term investors,” López said. “But it is quite telling of the moment we are living.”—AP