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Sovereign assets surpass $5t, Asian groups see fastest growth

  • Andrew Woodman
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Asia-based sovereign wealth funds have seen their assets under management (AUM) increase 19% since 2012, faster than any other region. Sovereign funds globally had an estimated collective AUM of $5.38 trillion as of October this year, up from $4.62 trillion in 2012.

According to the 2014 Preqin Sovereign Wealth Fund Review, Asia-based sovereign wealth funds now account for 47% of the global aggregate assets despite only representing just 22% of sovereign wealth funds globally by number. 

The report also indentifies a decrease in number of sovereign funds investing in private equity from 57% in 2012 to 45% this year. However, some of this decline can be put down a number of  funds being established - totaling 15 since 2008 - which will typically not allocate to alternative investments in the early years as they build up their investment teams and accumulate assets.

Of those investing in private equity, 72% have a preference for venture capital investments, compared to 59% the previous year.

Appetite for real estate and infrastructure on the other hand has remained steady, with 54% of sovereign wealth funds investing in real estate in both 2012 and 2013, and the proportion investing in infrastructure rising from 56% in 2012 to 57% in 2013.

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