Select Language:
The nation’s sovereign wealth fund has announced stronger-than-anticipated annualized returns on international investments over the past decade. The fund’s net investment return on foreign assets averaged 6.92% from 2014 through 2024, surpassing its target for that span. This figure marked an improvement from 6.57% over the previous decade ending in 2023.
Established in 2007, the fund focuses on overseas investments and manages stakes in domestic financial institutions. It conducts its international ventures primarily through its subsidiaries.
By the end of last year, nearly half (48.5%) of the foreign investment portfolio was dedicated to alternative assets, such as hedge funds, multi-sector private equity, private credit, real estate, infrastructure, and commodities. This was a slight increase from 48.3% the year before.
Publicly traded stocks made up 34.7% of the international holdings, up from 33.2%. Conversely, allocations in cash and fixed-income securities decreased to 1.3% and 15.5%, respectively, down from 2.1% and 16.5%.
The fund’s holdings in publicly traded stocks concentrated mainly in five sectors: information technology, financials, consumer goods, healthcare, and industrials. The proportion invested in IT stocks grew to 25.9% from 21.9% a year earlier, with increases also seen in finance and communication services. In contrast, investments in consumer products, healthcare, and industrial sectors experienced declines.
Last year, the fund reported a net profit of USD 140.6 billion, a rise of over 30% compared to the previous year. Revenue increased by 30% to USD 150.9 billion, fueled by a 41% jump in investment returns, which totaled over USD 130.2 billion and represented more than 86% of total revenue.
As of December 31, the fund’s total assets reached USD 1.57 trillion, with net assets at USD 1.37 trillion.
ChatGPT
Perplexity
Gemini AI
Grok AI
