(Yicai Global) May 23 -- Global public sector investors saw their biggest assets gain in half a decade last year thanks to a robust stock market and rising gold prices.
Total assets held by public sector investors from around the world jumped USD2.5 trillion to USD36.2 trillion, according to a report issued today by the Official Monetary and Financial Institutions Forum. The biggest percentage gains came in Europe, where holdings rose by 12 percent, or USD7.6 trillion.
The world’s central banks also added 371 tons of gold as prices rose last year, taking total holdings to nearly 31,800 tons, the highest level since the 1990s.
“The global stock market rally, which led to gains of over 20 percent in 2017, also leant support, with equities making up around 36-40 percent of sovereign wealth fund and pension fund portfolios,” Reuters reported.
Asia, home to the world’s three largest public investors: the People’s Bank of China, Japan’s Government Pension Investment Fund and the Bank of Japan, gained USD950 billion, ranking second.
The OMFIF began tracking 750 institutional investors, including central banks, sovereign wealth funds and public sector pension funds, in its Global Public Investor report five years ago.
Editor: James Boynton