The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Investment opportunities, not drawdowns, are the biggest challenge for sovereign funds

If a sovereign wealth fund is a coat for a rainy day, then why is hardly anyone putting one on when it’s been pouring down since March?

umbrella money 780

One of the curiosities of the Covid-19 pandemic, and the economic carnage it has wrought, is that it has not prompted countries to draw down on the funds they have built to provide resilience at moments exactly like these.

The International Forum of Sovereign Wealth Funds (IFSWF) and State Street recently released research showing that sovereign wealth funds had not undertaken large-scale liquidations to provide liquidity for governments, despite widespread expectation that they would. Only two of 10 funds they spoke to had been drawn down. 

On June 9, as the IFSWF launched its annual review for 2019, its executives confirmed this was still the case. Norway’s sovereign wealth fund is undertaking its biggest ever withdrawal, Oman’s fund has been repurposed, and Ireland’s Strategic Investment Fund has set up a new €2 billion Pandemic Stabilization and Recovery Fund – but otherwise, it’s business as usual.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree