There is no one-size-fits-all approach to sovereign finance
In a volatile world, the strength of a sovereign wealth fund lies in its ability to fulfil its specific, sovereign purpose
AS WE navigate the opening weeks of 2026, the global financial landscape finds itself at a curious crossroads.
While traditional markets grapple with the long tail of the “polycrisis” – the intersection of geopolitical fragmentation, climate volatility and the radical recalibration of labour markets by generative artificial intelligence – one sector stands as a monolith of comparative stability: sovereign wealth funds (SWFs).
By mid-2025, assets under management (AUM) held by these state-owned investment vehicles surged to an estimated US$14 trillion. To put that in perspective, this pool of capital is now larger than the combined gross domestic product of several Group of Seven nations.
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