Sovereign Wealth Funds (SWFs) are investment funds owned and managed by national governments. Originally created in the 1950s by oil and resource-producing countries to help stabilize their economies against fluctuating commodity prices, and to provide a source of wealth for future generations, they have proliferated considerably in recent years. Although their lack of transparency makes estimating SWF investment levels difficult, it is estimated that they currently manage between $ and $ trillion. 1 Estimates of their growth over the next several years vary, with the consensus hovering around Morgan Stanley’s projection of $12 trillion by 2015. SWFs can be funded through a variety of means, including.
