1. SOVEREIGN WEALTH FUNDS A statistical overview
Marko Maslakovic
Senior Economist
International Financial Services, London

2. Sovereign 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)

3. To reach: $5 trillion by 2010 and $10 trillion by 2015
Growth of SWFs’ assets
$ trillion
64%
Commodity
87%
13%
36%
Non-commodity
To reach: $5 trillion by 2010 and $10 trillion by 2015

4. Global 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

5. Where 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

6. Sources 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)

7. SWFs market share by continent
% share, end-2007
United Arab Emirates + Singapore + Norway + China + Saudi Arabia = 75%
Highly concentrated – in total around 50 SWFs

8. Commodity sources Total: $4.1 trillion
Oil exporting countries’ foreign investments assets
% share, end-2007
Total: $4.1 trillion
Growth at a compound annual rate of around 20% since 2000.

9. Non-commodity sources
Official foreign exchange reserves
% share, end-2007
Total: $6.5 trillion

10. Asian 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.

11. The UK’s 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