SWF market size in Latin America 2016-2021, by country
In 2021, the largest sovereign wealth fund in Latin America was in Chile with almost 10 billion U.S. dollars in assets under management. Sovereign wealth funds are state-owned investment funds, commonly (but not always) funded by budget surplus generated from the country’s natural resources or foreign currency reserves. The AUM across the region reached a peak in 2017 before decreasing by 56 percent in subsequent years. For instance, the Brazilian government drained Fundo Soberano do Brasil in 2018 and the same happened with the Peruvian SWF - Fondo de Estabilizacion Fiscal - in 2020. The largest sovereign wealth funds worldwide are located in Europe and the Asia-Pacific region.
