Assets managed by sovereign wealth funds fell nearly 8
Assets of public pension funds dropped almost 6

LONDON, Jan 1 Reuters Heavy falls in stock and bond markets over the last year have cut the combined value of the world39;s sovereign wealth and public pension funds for the first time ever and to the tune of 2.2 trillion, an annual study of the sector has estimated.

The report on stateowned investment vehicles by industry specialist Global SWF found that the value of assets managed by sovereign wealth funds fell to 10.6 trillion from 11.5 trillion, while those of public pension funds dropped to 20.8 trillion from 22.1 trillion.

Global SWF39;s Diego López said the main driver had been the simultaneous and significant 10plus corrections suffered by major bond and stock markets, a combination that had not happened in 50 years.

It came as Russias invasion of Ukraine boosted commodity prices and drove alreadyrising inflation rates to 40year highs. In response, the U.S. Federal reserve and other major central banks jacked up their interest rates causing a global market selloff.

These are paper losses and some of the funds will not see them realized in their role as longterm investors, López said. But it is quite telling of the moment we are living.

The report, which analysed 455 stateowned investors with a combined 32 trillion in assets, found that Denmarks ATP had had the toughest year anywhere with an estimated 45 plunge that lost 34 billion for Danish…