Sovereign Wealth Fund (SWF) is a state-owned investment fund composed of financial assets such as stocks, bonds, real estate, precious metals, or other financial instruments.
The funds assets are coming from balance of payments surpluses, official foreign currency operations, the proceeds of privatizations, fiscal surpluses, and from commodity exports.
Foreign currency reserve assets held by monetary authorities, state-owned enterprises, government-employee pension funds, and assets managed for the benefit of individuals are not categorized as a sovereign wealth fund.
The objective of sovereign wealth fund are to
- Protect & stabilize the budget and economy from excess volatility in revenues/exports
- Diversify from non-renewable commodity exports
- Earn greater returns than on foreign exchange reserves
- Assist monetary authorities dissipate unwanted liquidity
- Increase savings for future generations
- Fund social and economical development
- Sustainable long term capital growth for target countries
- Political strategy
Table below shows 30 largest sovereign fund in the world. Malaysia sovereign fund, Khazanah Nasional, is at position 22.
|
No
|
Country
|
Fund Name
|
Assets $Billion
|
Inception
|
Origin
|
|---|---|---|---|---|---|
|
1
|
UAE
|
Abu Dhabi Investment Authority
|
$627
|
1976
|
Oil
|
|
2
|
Norway
|
Government Pension Fund – Global
|
$445
|
1990
|
Oil
|
|
3
|
Saudi Arabia
|
SAMA Foreign Holdings
|
$431
|
n/a
|
Oil
|
|
4
|
China
|
SAFE Investment Company
|
$347.10
|
Non-Commodity
|
|
|
5
|
China
|
China Investment Corporation
|
$288.80
|
2007
|
Non-Commodity
|
|
6
|
Singapore
|
Government of Singapore Investment Corporation
|
$247.50
|
1981
|
Non-Commodity
|
|
7
|
Kuwait
|
Kuwait Investment Authority
|
$202.80
|
1953
|
Oil
|
|
8
|
Russia
|
National Welfare Fund
|
$168.00
|
2008
|
Oil
|
|
9
|
China
|
National Social Security Fund
|
$146.50
|
2000
|
Non-commodity
|
|
10
|
Hong Kong
|
Hong Kong Monetary Authority Investment Portfolio
|
$139.70
|
1993
|
Non-Commodity
|
|
11
|
Singapore
|
Temasek Holdings
|
$122
|
1974
|
Non-Commodity
|
|
12
|
Libya
|
Libyan Investment Authority
|
$70
|
2006
|
Oil
|
|
13
|
Qatar
|
Qatar Investment Authority
|
$65
|
2005
|
Oil
|
|
14
|
Australia
|
Australian Future Fund
|
$49.30
|
2004
|
Non-Commodity
|
|
15
|
Algeria
|
Revenue Regulation Fund
|
$47
|
2000
|
Oil
|
|
16
|
Kazakhstan
|
Kazakhstan National Fund
|
$38
|
2000
|
Oil
|
|
17
|
Ireland
|
National Pensions Reserve Fund
|
$30.60
|
2001
|
Non-Commodity
|
|
18
|
Brunei
|
Brunei Investment Agency
|
$30
|
1983
|
Oil
|
|
19
|
France
|
Strategic Investment Fund
|
$28
|
2008
|
Non-Commodity
|
|
20
|
South Korea
|
Korea Investment Corporation
|
$27
|
2005
|
Non-Commodity
|
|
21
|
US
|
Alaska Permanent Fund
|
$26.70
|
1976
|
Oil
|
|
22
|
Malaysia
|
Khazanah Nasional
|
$25
|
1993
|
Non-Commodity
|
|
23
|
Chile
|
Social and Economic Stabilization Fund
|
$21.80
|
1985
|
Copper
|
|
24
|
UAE
|
Investment Corporation of Dubai
|
$19.60
|
2006
|
Oil
|
|
25
|
UAE
|
Mubadala Development Company
|
$14.70
|
2002
|
Oil
|
|
26
|
Bahrain
|
Mumtalakat Holding Company
|
$14
|
2006
|
Oil
|
|
27
|
UAE
|
International Petroleum Investment Company
|
$14
|
1984
|
Oil
|
|
28
|
Canada
|
Alberta’s Heritage Fund
|
$13.80
|
1976
|
Oil
|
|
29
|
Azerbaijan
|
State Oil Fund
|
$13.40
|
1999
|
Oil
|
|
30
|
Iran
|
Oil Stabilisation Fund
|
$13.00
|
1999
|
Oil
|
The data are as in December 2009