Which country has the biggest sovereign wealth fund?
The world's largest sovereign wealth fund (SWF) as of December 2022 was China Investment Corporation (CIC), managing assets reaching around 1.35 trillion U.S. dollars. The CIC is used to manage a portion of China's foreign currency reserves and established in 2007.
Norway's sovereign wealth fund, the world's largest, was established in the 1990s to invest the surplus revenues of the country's oil and gas sector. To date, the fund has put money in more than 8,500 companies in 70 countries around the world.
Some countries may have more than one SWF. Also, while the United States does not have a federal sovereign wealth fund, several of its states have their own SWFs. The list does not include pension funds that do not meet the SWF criteria.
Sovereign wealth funds represent a large and growing portion of the global economy. These funds can be found in the U.S., China, Norway, Saudi Arabia, the United Arab Emirates, Russia, and many other countries.
A sovereign wealth fund is a state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves. SWFs provide a benefit for a country's economy and its citizens. The funding for a SWF can come from a variety of sources.
2023 rank | Fund Manager | Headquarters |
---|---|---|
1 | Blackstone | New York |
2 | KKR | New York |
3 | EQT | Stockholm |
4 | Thoma Bravo | Chicago |
Stabilization SWFs are created to reduce the volatility of government revenues, to counter the boom-bust cycles' adverse effect on government spending and the national economy. Savings SWFs build up savings for future generations.
Background. Norway has experienced economic surpluses since the development of its hydrocarbon resources in the 70s. This reality, coupled with the desire to mitigate volatility stemming from fluctuating oil prices, motivated the creation of Norway's Oil Fund, now the Government Pension Fund-Global (GPF-G).
The USA is quite unique in the world. And in a very real way, it is not a Sovereign Entity, except in matters of Treaty and Defense. So, that's why. The Federal government hold no wealth beyond the Federal Reserve.
The Sovereign Wealth Fund that Earned $213 Billion in 2023
By the end of 2023, Norway's SWF had almost 71% investments in equities, 27.1% in fixed income, and 1.9% in unlisted real estate, among others. Norway Government Pension Fund Global has a small stake in about 9,000 companies worldwide including Apple Inc.
What are the disadvantages of sovereign wealth funds?
Disadvantages of SWFs
Despite the advantages, SWFs are not without their drawbacks. One concern is the potential for mismanagement and corruption. Poor governance and lack of transparency can lead to funds being misappropriated or invested in risky ventures, resulting in significant financial losses.
Headquartered in Beijing, China Investment Corporation (CIC) was founded on 29 September 2007 as China's sovereign wealth fund incorporated in accordance with China's Company Law, with a registered capital of $200 billion.

Section 892 generally exempts foreign governments (and their sovereign wealth funds and other affiliates) from United States federal income tax on certain types of income, including certain income from stocks, bonds, and other securities.
A sovereign wealth fund (SWF), also known as a social wealth fund, is the surplus money that a country accrues over time. The government-backed pool of funds is mostly funded from a country's foreign exchange reserves. Other sources of funds for an SWF account include: Bank reserves.
Canada has several existing provincial and territorial sovereign wealth funds that invest resource wealth on behalf of citizens: the Quebec Generations Fund, the Alberta Heritage Savings Fund, the Newfoundland & Labrador Future Fund, and the Northwest Territories Heritage Fund.
All SWFs exhibit redemption risks lower than the market average, but that redemption risk is not zero. Because of their dual mission to generate financial as well as social returns, their redemption risk is most probably higher than that of other long-term investors, such as endowment funds.
Who Owns BlackRock? BlackRock is publicly owned, with its shares held by various shareholders, including institutional investors like Vanguard Group and State Street Corporation and individual shareholders.
The oldest mutual fund still in existence is MFS' Massachusetts Investors Trust (MITTX), also established in 1924.
BlackRock, Inc. is an American multinational investment company. It is the world's largest asset manager, with $10 trillion in assets as of December 31, 2023. Headquartered in New York City, Blackrock has 70 offices in 30 countries, and clients in 100 countries.
Each state in the U.S. is sovereign in the sense that they have their own constitution and generally create their own laws. However, they still have to adhere to federal laws, and the Supreme Court (a federal court) is the highest court in the land that can overrule states' judicial decisions.
How could sovereign wealth funds lead to corruption?
Sovereign wealth funds can be used by authoritarian and corrupt governments to perpetuate their power. With intermediate constraints on politicians, a sovereign wealth fund could be designed optimally to counter corruption.
Political scientists often refer to this as absolute sovereignty. The United States possesses absolute sovereignty within its own borders, but below the federal government there are other political units such as states, counties, cities, and towns.
Norway had a government debt before oil was discovered in the North Sea. Some of that debt is still live because government issue some bonds with very long maturity periods. The Kingdom of Norway still had debts left over from fighting the Second World War when oil revenues started to flow in the 1970s.
Discovery of oil and gas off the coast in the 1960s gave the country an economic boost and today Norway is one of the world's leading petroleum exporters. Norway's roughly 5 million people live in a constitutional monarchy.
The United States provides no development assistance to Norway. The United States and Norway have a dynamic economic partnership that is creating jobs, driving the development of safe and secure energy sources, and fostering innovation.