Asia-Pacific is a major player in the universe of sovereign wealth funds (SWF). The region accounts for nearly 45 percent of the $6.31 trillion in total global sovereign wealth fund assets (current total alternative assets globally is $6.2 trillion), according to 2015 Preqin Sovereign Wealth Fund Review.*
On average, Asia-Pacific SWFs are significantly younger than their North American counterparts. Spurred by the region’s rapid economic development in the past 20 years, many countries established new funds of hundreds of billions, even trillions, of dollars, which have become some of the largest institutional investors in the world.
The Chinese government is unequivocally the most ambitious investor of all. The country’s SWFs alone account for nearly half of the region’s total. In terms of investment projects, an increasing number of these SWFs are exploring into the private sector, defying their traditional stereotype as a macro-economy stimulator. The China Investment Corporation, for example, has made multiple high-profile investments in native startups in recent years, including a $4.5 billion venture round in ANT Financial in April and an equity round in taxi-hailing startup Didi Chuxing (along with Singapore’s Temasek Holdings).
However, despite their enormous asset size, SWFs are not impervious to adverse market conditions. Japan’s Government Pension Investment Fund, the world’s largest pension fund managing a pool of $1.6 trillion, just lost a woeful $43 billion in the second quarter of 2016. Singapore’s Temasek Holdings also reported a 9 percent decline in total portfolio value due to market volatility in the 2015.
Here are the 20 largest sovereign wealth funds in Asia-Pacific: (All numbers were as of fiscal year 2015.)
1. Japan Government Pension Investment Fund
Country: Japan
AUM: $1.641 trillion
Year Founded: 2006
Type: Pension Reserve Fund
2. China Investment Corporation
Country: China
AUM: $746.7 billion
Year Founded: 2007
Type: Reserve Investment Corporation
3. China State Administration of Foreign Exchange (SAFE) Investment Company
Country: China
AUM: $547 billion
Year Founded: 1955
Type: Reserve Investment Corporation
4. Hong Kong Exchange Fund
Country: Hong Kong (China)
AUM: $442 billion
Year Founded: 1993
Type: Reserve Investment Corporation
5. GIC Private Limited (former Government of Singapore Investment Corporation)
Country: Singapore
AUM: $344 billion
Year Founded: 1981
Type: Reserve Investment Corporation
6. Temasek Holdings
Country: Singapore
AUM: $266 billion
Year Founded: 1974
Type: Savings Fund
(Read more: Singapore’s $180B SWF Bolsters Private Holdings After Poor Annual Returns)
7. China National Social Security Fund
Country: China
AUM: $248 billion
Year Founded: 2000
Type: Pension Reserve Fund
8. Australian Government Future Fund
Country: Australia
AUM: $109 billion
Year Founded: 2006
Type: Reserve Investment Corporation
9. Korea Investment Corporation
Country: Korea
AUM: $92 billion
Year Founded: 2005
Type: Reserve Investment Corporation
10. Brunei Investment Agency
Country: Brunei
AUM: $40 billion
Year Founded: 1983
Type: Savings Fund
11. Khazanah Nasional Berhad
Country: Malaysia
AUM: $34.9 billion
Year Founded: 1993
Type: Development Fund
12. New Zealand Super Fund
Country: New Zealand
AUM: $29.8 billion
Year Founded: 2001
Type: Reserve Investment Corporation
13. Hong Kong Future Fund
Country: Hong Kong (China)
AUM: $28.4 billion
Year Founded: 2016
Type: Reserve Investment Corporation
14. Thailand Government Pension Fund
Country: Thailand
AUM: $21.4 billion
Year Founded: 1997
Type: Pension Reserve Fund
15. Taiwan National Stabilization Fund
Country: Taiwan
AUM: $17.2 billion
Year Founded: 2000
Type: Stabilization Fund
16. Timor-Leste Petroleum Fund
Country: Timor-Leste
AUM: $17 billion
Year Founded: 2005
Type: Savings Fund
17. China-Africa Development Fund
Country: China
AUM: $5 billion
Year Founded: 2007
Type: Development Fund
18. Vietnam State Capital Investment Corporation
Country: Vietnam
AUM: $3.1 billion
Year Founded: 2005
Type: Development Fund
19. Revenue Equalization Reserve Fund
Country: Republic of Kiribati
AUM: $600 million
Year Founded: 1956
Type: Reserve Investment Corporation
20. Indonesia Government Investment Unit
Country: Indonesia
AUM: $340 million
Year Founded: 2006
Type: Reserve Investment Corporation
*Preqin’s report doesn’t include Japan Government Pension Investment Fund