China's CIC becomes largest state-owned investor - report
China Investment Corporation (CIC) surpassed Japan’s Government Pension Investment Fund (GPIF) and Norway’s Norges Bank Investment Management (NBIM) to become the world’s largest state-owned investor in 2022, according to Global SWF Tracker.
The Chinese sovereign wealth fund ended 2022 with USD 1.35trn in assets – up from USD 1.22trn in 2021 – compared to USD 1.32trn for GPIF and USD 1.14trn for NBIM, which occupied the top two positions last year. GPIF’s holdings saw a significant decline from USD 1.74bn in 2021.
Other Asian entries in the top 25, based on public disclosures and estimates by Global SWF Tracker, include China’s State Administration of Foreign Exchange (USD 980bn), Singapore’s GIC (USD 689bn), Hong Kong Monetary Authority (USD 500bn), Korea’s National Pension Service (USD 608bn), Singapore’s Central Provident Fund (USD 377bn), and Singapore’s Temasek Holdings (USD 298bn).
Asia remains the largest collection of sovereign wealth fund (SWF) assets, with 34 funds responsible for USD 4.93trn, ahead of the Middle East & North Africa (MENA) with 27 funds and USD 4.14trn in assets. Asia ranks second to North America in terms of public pension funds (PPF). It is home to 48 funds with USD 3.97trn compared to North America’s USD 12.2trn across 111 funds.
Globally, 2022 was the first year that SWFs shrank in value, falling from USD 11.4trn to USD 10.6trn, as bull markets faded. The PPF total dropped from USD 21trn to USD 20.8trn.
State-owned investors deployed more capital in fewer deals than in 2021, a development Global SWF Tracker connects to a reduction in venture capital activity and an increase in mega deals. GIC was again the most active investor, deploying USD 40.3bn in fresh capital, with Abu Dhabi Investment Authority (ADIA) second on USD 25.9bn. Temasek was fourth on USD 13.5bn.
CIC is considered the largest investor in private equity globally, although USD 122bn of its overall USD 171.5bn exposure to the asset class comprises strategic interests in unlisted domestic banks. Canada Pension Plan Investment Board (CPPIB) is second with USD 138.2bn followed by GIC on USD 104.9bn.
Temasek, Hong Kong Monetary Authority, and Australia’s Future Fund also feature in the top 25 with USD 50.9bn, USD 39.1bn, and USD 27.5bn, respectively.
Saudi Arabia’s Public Investment Fund (PIF) is the biggest venture capital investor, its USD 51.4bn in holdings including a USD 45bn commitment to SoftBank Vision Fund 1. Mubadala Investments is second on USD 20.6bn, followed by Temasek and GIC on USD 17.2bn and USD 7.3bn. Temasek’s interests are largely direct, apart from the USD 1.9bn in assets held by Vertex Venture Holdings.
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