The International Forum of Sovereign Wealth Funds (IFSWF) has recently released Continuity in the Face of Upheaval: IFSWF Annual Review 2020, depicting sovereign wealth funds’ investments in 2020 from three perspectives:

lThe Covid-19 Response: Sovereign wealth funds have been a key force spearheading global economic recovery since the outbreak of Covid-19. Some sovereign wealth funds provided capital to their governments to fund domestic pandemic response, mitigating short-term fiscal pressure; others took initiative to support local companies with more investments to help them survive the pandemic and seize new development opportunities.

lClimate Opportunities: “2020 was the year that sovereign wealth funds’ engagement with the climate agenda started to come of age.” The review indicates that in 2020, sovereign wealth funds made 23 investments valued at over $2 billion in sectors like agritech, forestry and renewable energy. Sovereign wealth funds’ participation will be a major engine for the global response to climate change and the transition to low carbon economy.

lCommitting to long-term trends: Despite unprecedented challenges caused by major market upheavals, sovereign wealth funds remained long-term investors and continued to follow their established investment strategies in a disciplined manner. Statistics show that sovereign wealth funds’ direct investments doubled year-on-year in 2020. E-commerce, logistics and renewable energy are key areas of focus for sovereign wealth funds.

International Forum of Sovereign Wealth Funds (IFSWF)

The IFSWF is a global organization of main sovereign wealth funds worldwide. As a founding member and board member of the International Forum of Sovereign Wealth Funds (IFSWF), CIC has diligently implemented the Santiago Principles for the governance of sovereign wealth funds and has contributed to the development of the forum and broader adoption of the Principles globally.