LONDON—Heavy falls in stock and bond markets over the last year have cut the combined value of the world’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 state-owned 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 SWF’s Diego López said the main driver had been the “simultaneous and significant” 10 percent-plus corrections suffered by major bond and stock markets, a combination that had not happened in 50 years….