The 2026 IFSWF Annual Review introduces the first concentration index for sovereign wealth fund investments— a new way of measuring how sovereign capital responds to an increasingly complex global environment.
Using proprietary data from the IFSWF Database, the report reveals that sovereign wealth fund investment is becoming increasingly concentrated in a smaller number of trusted markets. As geopolitical fragmentation raises uncertainty, long-term investors are prioritising resilience while continuing to diversify across sectors. Together with a new analysis of artificial intelligence's growing influence on investment, the report provides a fresh perspective on how sovereign wealth funds are adapting to structural change.
A new way to measure sovereign investment
For the first time, IFSWF applies a concentration index to sovereign wealth fund direct investment, providing a clear measure of how investment patterns have evolved over time.
The analysis shows that the defining trend is geographic concentration, not sector concentration. Sovereign wealth funds continue to invest across a broad range of industries, but they are increasingly directing capital towards a smaller group of deep, liquid and institutionally trusted markets.
This new analytical framework provides an important benchmark for understanding how sovereign investors are balancing resilience, diversification and long-term opportunity in an era of geopolitical uncertainty.
Beyond the headlines
The Annual Review also explores how artificial intelligence is reshaping sovereign investment. While AI is often viewed as a digital revolution, the report demonstrates that its rapid growth depends on significant investment in physical infrastructure - including data centres, semiconductors, power generation and energy networks.
Together, the concentration index and the AI analysis reveal how sovereign wealth funds are adapting their investment strategies to a world where geopolitical change and technological transformation are increasingly interconnected.
Inside the report
- The launch of IFSWF's first concentration index for sovereign wealth fund investment.
- Original analysis of sovereign wealth fund direct investment trends between 2018 and 2025.
- New insights into the relationship between geopolitics, artificial intelligence and long-term capital allocation.
- Regional case studies and expert perspectives from Africa, Europe and Latin America.
- Research that supports IFSWF's flagship initiatives on resilience and artificial intelligence.
Looking ahead
The concentration index introduced in this report establishes a new framework for understanding sovereign wealth fund investment at a time of profound global change. Its findings will help inform IFSWF's Resilience Playbook and AI Flagship Initiative, supporting members as they navigate the opportunities and challenges of an evolving investment landscape.