Sovereign Wealth Funds
Sovereign Wealth Funds (SWFs) are state-owned investment funds that manage a country's surplus wealth. These funds invest in various assets, including stocks, bonds, real estate, and infrastructure projects, with the goal of generating returns for the nation. SWFs are often funded by revenues from natural resources, such as oil and gas, or from trade surpluses.
Countries use SWFs to stabilize their economies, save for future generations, or fund social programs. Notable examples of SWFs include the Norwegian Government Pension Fund Global and the Abu Dhabi Investment Authority. These funds play a significant role in global financial markets.