LONDON (Reuters) – The assets of sovereign wealth funds in the world increased by $ 200 billion over the year to March 2016 to reach 6.510 billion dollars (5.760 billion euros) despite the recent market volatility and low oil prices, shows a study published Tuesday by the research firm Preqin.
This represents an annual growth of about 3%, against 16% to 17% in recent years. The assets of sovereign wealth funds not less more than doubled since 2009, when they peaked at 3.220 billion.
The growth over the past year has been fueled mainly by funds not related to basic resources (290 billion dollars), while those dependent on revenue from oil and gas melted 10 billion, Preqin notes.
The crude prices moving around $ 40 a barrel, sovereign wealth funds and central banks of oil-exporting countries established such as Norway, Russia and Saudi Arabia have had to dip into their reserves and liquidate assets to contribute to reduce their budget deficits.
“Given that many SWFs are those of oil producing countries, it is perhaps not surprising that the asset growth rate has slowed,” wrote Preqin.
Sovereign wealth funds based in the Middle East and Asia account for 76% of all of the class but Preqin said that 14 new funds were launched last six years and recalled that Bolivia and the Philippines are said to consider launching new funds.