Market Snapshot: September 2015
Deutsche Bank recently provided a graphical snapshot that covers the returns of a wide span of assets both YTD and since the mid-August meltdown. In addition, they added some market commentary on the situation investors find themselves in as they get back in gear for the autumn.
First, let’s recap the spring and summer. Chinese markets started the year with gusto, but lost all of the gains during the summer as the bubble burst. Equity markets in the U.S. soon followed, with the Dow shedding almost 2,000 points in August before beginning a small bounce back. Commodities have all been crushed thoroughly YTD and especially in the last two weeks of August.
Despite all of this, there is one stock market that has bucked these trends with outperformance.
That market belongs to Russia, where equities are up 26% on the year and have remained relatively flat since all other markets melted down in mid-August. Russian stocks are not rising because the country’s economy is healthy – they are up because it is less worse than investors thought.
The quick story on Russia: the country is in its worst recession since the Financial Crisis, and had its GDP shrink -4.6% up to Q2 of this year. The ruble has depreciated against the U.S. dollar by 16% YTD, and it also lost plenty of purchasing power last year as oil prices got hammered.
Many spectators had expected the re-emergence of a currency crisis similar to 1998. Adding in possible geopolitical tail risks, publications started to recommend ways to play the Russian crash. Instead, it seems so far that Russia has been able to stabilize better than expected, and as a result stocks have rewarded investors that weren’t so pessimistic.
The World’s Biggest Startups: Top Unicorns of 2021
Here are the world’s biggest startups with a valuation above $10 billion.
The World’s Biggest Startups: Top Unicorns of 2021
Many entrepreneurs start businesses around the world, but only the most successful new companies become “unicorns”—the biggest startups with a valuation above $1 billion.
Some unicorns are little-known companies making quiet but impactful strides in software, healthcare, automotive, and other fields. Others have already become well-known industry leaders, like aerospace manufacturer SpaceX and game developer and publisher Epic Games.
In total, there are more than 800 unicorn startups globally. That said, this visualization specifically hones in on the world’s decacorns (unicorns with valuations above $10 billion) as of December 2021 according to CB Insights.
Private Startups Valued at Over $10 Billion
The world’s most prominent unicorns constantly see their valuations change as they enter different rounds of funding or maturity.
In December 2021, there were 35 startups with a valuation above $10 billion, spread out across different countries and industries.
|Canva||$40B||Australia||Internet software & services|
|Instacart||$39B||U.S.||Supply chain, logistics, & delivery|
|Databricks||$38B||U.S.||Data management & analytics|
|FTX||$25B||China (Hong Kong)||Fintech|
|Xiaohongshu||$20B||China||E-commerce & direct-to-consumer|
|J&T Express||$20B||Indonesia||Supply chain, logistics, & delivery|
|Fanatics||$18B||U.S.||E-commerce & direct-to-consumer|
|SHEIN||$15B||China||E-commerce & direct-to-consumer|
|goPuff||$15B||U.S.||E-commerce & direct-to-consumer|
|Grammarly||$13B||U.S.||Internet software & services|
|JUUL Labs||$12B||U.S.||Consumer & retail|
|GoodLeap||$12B||U.S.||Internet software & services|
|ZongMu Technology||$11.4B||China||Auto & transportation|
|Celonis||$11B||Germany||Data management & analytics|
|Weilong||$10.9B||China||Consumer & retail|
Many of the most valuable startups are already giants in their fields. For example, social media company Bytedance is the developer behind video network platform Douyin and its international version, TikTok, and has amassed a valuation of $140 billion.
Financial services and payment software company Stripe jumped from a valuation of $36 billion to $95 billion over the course of the COVID-19 pandemic.
Even less universally prominent names like Swedish fintech Klarna ($45.6 billion) and Australian graphic design platform Canva ($40.0 billion) are well known within their respective fields.
But private valuations don’t last forever. Many eventually go public, like electric vehicle maker and Tesla competitor Rivian, which had a valuation of $27.6 billion before listing on the NASDAQ.
The Biggest Startups by Industries and Countries
Breaking down the world’s biggest startups by industry highlights that tech is still king in most investing circles.
More than 77% of unicorns valued above $10 billion are categorized directly in tech-related fields, primarily in financial and commerce software.
|Startups Valued Above $10B By Industry||Number|
|E-commerce & direct-to-consumer||4|
|Internet software & services||3|
|Consumer & retail||2|
|Data management & analytics||2|
|Supply chain, logistics, & delivery||2|
|Auto & transportation||1|
And many of the unicorns categorized in non-tech fields are still technology companies at their core. In fact, Indonesia’s logistics and package delivery company J&T Express is one of the few unicorns not directly in tech, though it still uses automated sorting in its warehouses.
It was one of the few startups to come from somewhere other than the U.S. or China, which together accounted for over 70% of the 35 biggest startups. The UK (3) was the next most-frequently listed headquarters, while Australia, Brazil, Germany, India and Sweden each had one of these unicorns on the list.
With constantly fluctuating valuations and technological breakthroughs always around the corner, the next $10 billion unicorn could come from almost anywhere.
Visualizing The World’s Largest Sovereign Wealth Funds
To date, only two countries have sovereign wealth funds worth over $1 trillion. Learn more about them in this infographic.
Visualized: The World’s Largest Sovereign Wealth Funds
Did you know that some of the world’s largest investment funds are owned by national governments?
Known as sovereign wealth funds (SWF), these vehicles are often established with seed money that is generated by government-owned industries. If managed responsibly and given a long enough timeframe, an SWF can accumulate an enormous amount of assets.
In this infographic, we’ve detailed the world’s 10 largest SWFs, along with the largest mutual fund and ETF for context.
The Big Picture
Data collected from SWFI in October 2021 ranks Norway’s Government Pension Fund Global (also known as the Norwegian Oil Fund) as the world’s largest SWF.
The world’s 10 largest sovereign wealth funds (with fund size benchmarks) are listed below:
|Country||Fund Name||Fund Type||Assets Under Management (AUM)|
|🇳🇴 Norway||Government Pension Fund Global||SWF||$1.3 trillion|
|🇺🇸 U.S.||Vanguard Total Stock Market Index Fund||Mutual fund||$1.3 trillion|
|🇨🇳 China||China Investment Corporation||SWF||$1.2 trillion|
|🇰🇼 Kuwait||Kuwait Investment Authority||SWF||$693 billion|
|🇦🇪 United Arab Emirates||Abu Dhabi Investment Authority||SWF||$649 billion|
|🇭🇰 Hong Kong SAR||Hong Kong Monetary Authority Investment Portfolio||SWF||$581 billion|
|🇸🇬 Singapore||Government of Singapore Investment Corporation||SWF||$545 billion|
|🇸🇬 Singapore||Temasek||SWF||$484 billion|
|🇨🇳 China||National Council for Social Security Fund||SWF||$447 billion|
|🇸🇦 Saudi Arabia||Public Investment Fund of Saudi Arabia||SWF||$430 billion|
|🇺🇸 U.S.||State Street SPDR S&P 500 ETF Trust||ETF||$391 billion|
|🇦🇪 United Arab Emirates||Investment Corporation of Dubai||SWF||$302 billion|
SWF AUM gathered on 10/08/2021. VTSAX and SPY AUM as of 09/30/2021.
So far, just two SWFs have surpassed the $1 trillion milestone. To put this in perspective, consider that the world’s largest mutual fund, the Vanguard Total Stock Market Index Fund (VTSAX), is a similar size, investing in U.S. large-, mid-, and small-cap equities.
The Trillion Dollar Club
The world’s two largest sovereign wealth funds have a combined $2.5 trillion in assets. Here’s a closer look at their underlying portfolios.
1. Government Pension Fund Global – $1.3 Trillion (Norway)
Norway’s SWF was established after the country discovered oil in the North Sea. The fund invests the revenue coming from this sector to safeguard the future of the national economy. Here’s a breakdown of its investments.
|Asset Class||% of Total Assets||Country Diversification||Number of Securities|
|Public Equities||72.8%||69 countries||9,123 companies|
|Fixed income||24.7%||45 countries||1,245 bonds|
|Real estate||2.5%||14 countries||867 properties|
As of 12/31/2020
Real estate may be a small part of the portfolio, but it’s an important component for diversification (real estate is less correlated to the stock market) and generating income. Here are some U.S. office towers that the fund has an ownership stake in.
|601 Lexington Avenue, New York, NY||45.0%|
|475 Fifth Avenue, New York, NY||49.9%|
|33 Arch Street, Boston, MA||49.9%|
|100 First Street, San Francisco, CA||44.0%|
As of 12/31/2020
Overall, the fund has investments in 462 properties in the U.S. for a total value of $14.9 billion.
2. China Investment Corporation (CIC) – $1.2 Trillion (China)
The CIC is the largest of several Chinese SWFs, and was established to diversify the country’s foreign exchange holdings.
Compared to the Norwegian fund, the CIC invests in a greater variety of alternatives. This includes real estate, of course, but also private equity, private credit, and hedge funds.
|Asset Class||% of Total Assets|
As of 12/31/2020
A primary focus of the CIC has been to increase its exposure to American infrastructure and manufacturing. By the end of 2020, 57% of the fund was invested in the United States.
“According to our estimate, the United States needs at least $8 trillion in infrastructure investments. There’s not sufficient capital from the U.S. government or private sector. It has to rely on foreign investments.”
– Ding Xuedong, Chairman, China Investment Corporation
This has drawn suspicion from U.S. regulators given the geopolitical tensions between the two countries. For further reading on the topic, consider this 2017 paper by the United States-China Economic and Security Review Commission.
Preparing for a Future Without Oil
Many of the countries associated with these SWFs are known for their robust fossil fuel industries. This includes Middle Eastern nations like Kuwait, Saudi Arabia, and the United Arab Emirates.
Oil has been an incredible source of wealth for these countries, but it’s unlikely to last forever. Some analysts believe that we could even see peak oil demand before 2030—though this doesn’t mean that oil will stop being an important resource.
Regardless, oil-producing countries are looking to hedge their reliance on fossil fuels. Their SWFs play an important role by taking oil revenue and investing it to generate returns and/or bolster other sectors of the economy.
An example of this is Saudi Arabia’s Public Investment Fund (PIF), which supports the country’s Vision 2030 framework by investing in clean energy and other promising sectors.
Misc3 weeks ago
A Deep Dive Into the World’s Oceans, Lakes, and Drill Holes
Misc4 weeks ago
Visualizing The Most Widespread Blood Types in Every Country
Misc4 weeks ago
The Problem With Our Maps
Misc2 weeks ago
24 Cognitive Biases That Are Warping Your Perception of Reality
Technology4 weeks ago
From Amazon to Zoom: What Happens in an Internet Minute In 2021?
Misc3 weeks ago
Ranked: The 35 Vehicles With the Longest Production Runs
Demographics2 weeks ago
The Richest Women in America in One Graphic
Personal Finance3 weeks ago
Ranked: The Best and Worst Pension Plans, by Country