Nice little table in this article from the Evening Standard (assuming their estimates are valid).


But to pick a nit, Sovereign Wealth Funds (SWFs) control circa $3 trillion (Citi research) of a global market capitalization worth circa $50 trillion. This probably does not qualify their role as:

"crucial to the future of the global financial system and perhaps even the basis of a new order"

as the Standard suggests. However, it is a sum that is significant and growing: some (Citi again) project SWFs to grow to $7.5 - $10 trillion by 2012.

Yet today SWFs are not worth much more than half of what the top 3 traditional asset managers control. Still, and fortunately for financials, SWFs have been overwhelmingly focused on their sector as the Standard points out (although this enthusiasm has been understandably tempered recently).

What the paper does not say is that those $60bn odd in 2007 and year to date 2008 equalled over 70% of SWF activity. Or, more accurately, the original investments were worth $60bn. And you could bury more than half of that in not much more than a couple of seriously diminished Benelux outfits nowadays.

Thus I'd suggest with the both the scale of the losses and politics of the sensitive banking sector one should be prepared to lose if one thinks SWFs are going to be the serious participants in some 'new order' when it comes to rebuilding a financial system in countries other than their own.


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