What is a SWF?

A Sovereign Wealth Fund (SWF) is a state-owned investment fund or entity that is commonly established from balance of payments surpluses, official foreign currency operations, the proceeds of privatizations, governmental transfer payments, fiscal surpluses, and/or receipts resulting from resource exports. The definition of sovereign wealth fund exclude, among other things, foreign currency reserve assets held by monetary authorities for the traditional balance of payments or monetary policy purposes, state-owned enterprises (SOEs) in the traditional sense, governmentemployee pension funds (funded by employee/employer contributions), or assets managed for the benefit of individuals. Interesting Facts About Sovereign Wealth Funds Some funds also invest indirectly in domestic industries. In addition, they tend to prefer returns over liquidity, thus they have a higher risk tolerance than traditional foreign exchange reserves. Sovereign Wealth Funds may have their origin in: Commodities Created through commodity exports, either taxed or owned by the government. Non-Commodities Usually created through transfers of assets from official foreign exchange reserves.

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SWFs: Nature & Purpose Each fund has its own unique reason for its creation; furthermore, all funds have their own objectives. Common Sovereign Wealth Fund Objectives: 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

Country
UAE Abu Dhabi Norway China Saudi Arabia China Kuwait

Fund Name Abu Dhabi Investment Authority Government Pension Fund Global SAFE Investment Company SAMA Foreign Holdings China Investment Corporation Kuwait Investment Authority Hong Kong Monetary Authority Investment Portfolio Government of Singapore Investment Corporation Temasek Holdings National Welfare Fund National Social Security Fund Qatar Investment Authority Australian Future Fund Investment Corporation of Dubai Libyan Investment Authority Kazakhstan National Fund International Petroleum Investment Company

Assets $Billion
$627 $611 $567.9** $532.8 $439.6 $296

Inception Origin
1976 1990 1997 n/a 2007 1953 Oil Oil

Non-Commod Oil

Non-Commod Oil

China Hong Kong

$293.3

1993

Non-Commod

Singapore Singapore Russia China Qatar Australia UAE Dubai Libya Kazakhstan

$247.5 $157.2 $149.7* $134.5 $100 $80 $70 $65 $58.2

1981 1974 2008 2000 2005 2006 2006 2006 2000

Non-Commod

Non-Commod Oil

Non-Commod Oil

Non-Commod Oil Oil Oil

UAE Abu Dhabi

$58

1984

Oil

Algeria UAE Abu Dhabi South Korea US Alaska Malaysia Azerbaijan Ireland Brunei France US Texas Iran New Zealand Canada Chile US New Mexico Brazil East Timor Bahrain Oman Botswana

Revenue Regulation Fund Mubadala Development Company Korea Investment Corporation Alaska Permanent Fund Khazanah Nasional State Oil Fund National Pensions Reserve Fund Brunei Investment Agency Strategic Investment Fund Texas Permanent School Fund Oil Stabilisation Fund New Zealand Superannuation Fund Albertas Heritage Fund Social and Economic Stabilization Fund New Mexico State Investment Council Sovereign Fund of Brazil Timor-Leste Petroleum Fund Mumtalakat Holding Company State General Reserve Fund Pula Fund Oil Revenues Stabilization Fund of Mexico

$56.7 $48.2 $43 $40.3 $36.8 $30.2 $30 $30 $28 $24.4 $23 $15.9 $15.1 $15 $14.3 $11.3 $9.9 $9.1 $8.2 $6.9

2000 2002 2005 1976 1993 1999 2001 1983 2008 1854 1999 2003 1976 2007 1958 2008 2005 2006 1980 1994

Oil Oil

Non-Commod Oil

Non-Commod Oil

Non-Commod Oil

Non-Commod Oil & Other Oil

Non-Commod Oil Copper

Non-Commod

Non-Commod Oil & Gas

Non-Commod Oil & Gas

Diamonds & M

Mexico

$6.0

2000

Oil

Saudi Arabia China US Wyoming Chile Trinidad & Tobago US Alabama Italy UAE Ras Al Khaimah Nigeria Palestine Venezuela Vietnam Kiribati Gabon Indonesia Mauritania US North Dakota Equatorial Guinea UAE Federal Oman UAE Abu Dhabi

Public Investment Fund China-Africa Development Fund Permanent Wyoming Mineral Trust Fund Pension Reserve Fund Heritage and Stabilization Fund Alabama Trust Fund Italian Strategic Fund RAK Investment Authority Nigerian Sovereign Investment Authority Palestine Investment Fund FEM State Capital Investment Corporation Revenue Equalization Reserve Fund Gabon Sovereign Wealth Fund Government Investment Unit National Fund for Hydrocarbon Reserves North Dakota Legacy Fund Fund for Future Generations Emirates Investment Authority Oman Investment Fund Abu Dhabi Investment Council

$5.3 $5.0 $4.7 $4.4 $2.9 $2.5 $1.4 $1.2 $1 $0.8 $0.8 $0.5 $0.4 $0.4 $0.3 $0.3 $0.1 $0.08 n/a n/a n/a

2008 2007 1974 2006 2000 1985 2011 2005 2011 2003 1998 2006 1956 1998 2006 2006 2011 2002 2007 2006 2007

Oil

Non-Commod Minerals Copper Oil Oil & Gas

Non-Commod Oil Oil

Non-Commod Oil

Non-Commod Phosphates Oil

Non-Commod Oil & Gas Oil & Gas Oil Oil Oil Oil

Papua New Guinea Mongolia

Papua New Guinea Sovereign Wealth Fund Fiscal Stability Fund

Total Oil & Gas Related Total Other

n/a n/a $2,874.3 $2,147.8

2011 2011

Gas Mining

$5,022.1 TOTAL