Sovereign wealth funds are now so large that they have passed the annual economic output of the United Kingdom, Germany or France. According to Global Insight, the value of the funds could pass US economic output by 2015. The total value of these funds was $3.5 trillion in 2007, growing at a pace of 24% a year.
The report says "Projecting out this annual growth rate, Sovereign Wealth Funds will surpass the entire current economic output of the United States by 2015, and European Union by 2016".
The study also indicates that the largest Sovereign Wealth generator remains China, with approximately US$1.2 trillion, followed by Russia and Kuwait. The fastest growing generators of SW over the last five years were: Nigeria 291%: Oman 256%; Kazakhstan 162%; Angola 84%; Russia 74%; and Brazil 65%
The vast majority (93%) of SWF equity investment has so far targeted the western financial sector.
Douglas A. McIntyre