Sovereign wealth fund assets increased an estimated 9% to an aggregate $3.51 trillion in 2009, partly the result of the global economic recovery, according to a Preqin report.
Norway’s Government Pension Fund-Global, Oslo, was among the funds with the largest gains — up 25% to well over $400 billion as of Dec. 31, according to Preqin.
Some of the biggest declines were in Russia’s Reserve Fund, Moscow, down 54% to about $60 billion, and Chile’s Economic and Social Stabilization Fund, Santiago, falling 45% to about $11 billion, Preqin spokesman Sam Meakin said in a telephone interview.
Preqin said that among the 60 funds it studied, many are looking closely at portfolio diversification and greater exposure to alternative investments.
Mr. Meakin, in an e-mail response to questions, noted the following changes:
• Norway’s global fund announced plans in November to establish a new environmental investment portfolio to include natural resources, clean technology, environmental services and renewable energy.
• Korea Investment Corp., Seoul, awarded in the third quarter $100 million in secondary markets to Partners Group.
• China Investment Corp., Beijing, announced in September a $1 billion investment with hedge fund firm Oaktree Capital Management and $200 million with fixed-income manager Capula Investment Management.
• Ireland’s National Pensions Reserve Fund, Dublin, is searching for a consultant to assist with a proposed absolute-return program.
• Bahrain Mumtalakat Holding Co., Manama, announced in the second quarter 2009 that it planned to expand investments in real estate with a focus on properties in the U.S., U.K. and Japan. “These investments would be a part of its long-term target of investing 50% of its total assets in international markets across different asset classes,” Mr. Meakin wrote in the e-mail.
• Future Fund, Melbourne, Australia, said in the second quarter of 2009 that it was planning to increase exposure to infrastructure, part of a strategy to commit 30% of the overall fund to tangible assets.