Sovereign Wealth Fund
a.k.a. SWF
A state-owned investment fund that invests a country's surplus money, often from oil or exports, around the world.
A sovereign wealth fund (SWF) is a country's investment account. Nations with big surpluses, often from oil and gas, park the money in a fund that buys stocks, bonds, property and private companies all over the world. Norway's fund, run by Norges Bank, is one of the largest; Gulf states, Singapore and China run giants too.
They save wealth for future generations and smooth out the boom-and-bust of commodity revenues. When they shift money between countries, they can move currencies.
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