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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

    • Comparing GIC’s performance against Temasek’s is not just comparing apples to oranges; it is comparing a shield to a sword, say the writers.
    • Comparing GIC’s performance against Temasek’s is not just comparing apples to oranges; it is comparing a shield to a sword, say the writers. PHOTO: BT FILE
    Published Wed, Feb 4, 2026 · 07:00 AM

    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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