Investment Trends in 2025
In 2025, sovereign wealth funds and public pension funds invested a staggering $132 billion—approximately half of their investments from the previous year—in the United States. Meanwhile, emerging markets attracted nearly a third less investment compared to 2024, according to an annual report released on Thursday.
Record-Breaking Asset Management
These major investors, along with central banks, reached a record-breaking $60 trillion in assets under management last year, as shown by the Global SWF report. Sovereign wealth funds accounted for two-thirds of the money invested in the United States during that year.
Shifting Investment Focus
According to Diego López, CEO of Global SWF, “There has been a paradigm shift regarding the recipient countries.” The world’s largest economy benefited from spending focused on digital infrastructure, data centers, and artificial intelligence companies.
Sovereign Wealth Fund Assets Reach New Heights
The assets of sovereign wealth funds reached a new record of $15 trillion, according to the report, which combines public data and official reports to monitor the assets and spending of state investors worldwide, including wealth and pension funds and central banks.
Overall Investment Growth
Investments from sovereign wealth funds grew by 35%, reaching $179.3 billion.
Impact on Emerging Markets
However, the investment channeling towards the United States came at the expense of emerging markets, despite their impressive performance in 2025.
Emerging Markets Suffer Investment Decline
“The big losers were emerging markets, especially China, India, Indonesia, and Saudi Arabia, which received disappointing investment levels in 2025: a 28% drop from 2024, and only 15% of the total,” wrote López.
Private Credit Investors Shift Focus
On the other hand, private credit investors have started to direct their attention towards emerging markets in search of higher returns and more favorable project structures, as shown by the report.
EU’s Investment Dominance
López pointed out that the investment flow figures do not include the estimated $2.2 trillion in Magnificent 7 (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla) stocks already owned by sovereign wealth funds of wealth and pensions.
EU’s Enduring Attractiveness
The shift towards the United States highlights its allure, even as investors seek diversification amidst President Donald Trump’s economic restructuring.
Key Questions and Answers
- What was the total investment amount in the US in 2025? Sovereign wealth funds and public pension funds invested $132 billion in the US.
- What was the total assets under management by state investors in 2024? State investors, including sovereign wealth funds and central banks, managed a record-breaking $60 trillion in assets.
- Which countries experienced a significant drop in investment in 2025? Emerging markets, particularly China, India, Indonesia, and Saudi Arabia, saw a 28% decrease in investment from 2024.
- What factors contributed to the growth in sovereign wealth fund investments? The US benefited from spending on digital infrastructure, data centers, and artificial intelligence companies.
- What is the estimated value of Magnificent 7 stocks held by sovereign wealth funds? Approximately $2.2 trillion in Magnificent 7 stocks are already owned by sovereign wealth funds of wealth and pensions.
