State-owned institutional investors reached a combined US$60 trillion in assets and foreign reserves in December 2025, according to a new report by Global SWF.
The total includes assets managed by sovereign wealth funds, public pension funds and central banks, all of which expanded their balance sheets during the year. Sovereign wealth funds surpassed $15 trillion in assets for the first time, the report said.
The report said equity market gains were a more significant driver of asset growth than oil prices in 2025. Global equities rose 21.5 per cent, as measured by the S&P Global 1200, while global bonds gained 7.5 per cent. Infrastructure returned 18.1 per cent, while real estate and private equity lagged, returning 0.5 per cent and negative 0.8 per cent, respectively.
Regionally, Asia accounted for more than a third of total assets, with holdings balanced across sovereign wealth funds, public pension funds and central banks. North America represented 26 per cent, driven primarily by public pension funds, followed by Europe at 19 per cent and the Middle East and North Africa at 15 per cent, which was largely composed of sovereign wealth fund assets.
Investment activity accelerated in 2025, with state-owned investors favouring fewer but larger transactions. Sovereign wealth fund investments rose 35 per cent to $180.3 billion across 324 deals, while public pension fund investments increased 26 per cent to $97.8 billion across 238 deals. Average deal size rose to $490 million.
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Canadian public pension funds were among the most active investors globally. The report said the eight largest Canadian funds increased their investments by 67 per cent in 2025 to $61 billion, representing roughly one-quarter of all capital deployed by state-owned investors during the year.