Sovereign wealth funds invest about $1 trillion in international equities which is less than half the $2.2 trillion (end 2008) managed by the 10 largest SWFs, according to a report by RiskMetrics commissioned by the Investor Responsibility Research Center Institute (IRRC).

The report said: “The current total size of the SWFs and the percentage invested in international equities is less than the figures generally reported in the media. Consequently estimates of their potential impact on the international capital markets are exaggerated.”

The study found that the total capital available to SWFs has decreased as the global financial crisis has dampened demand for some of the exports these countries rely on to bolster their funds. As a result, their global equity exposures have decreased, while their bond allocations have increased.