Sovereign wealth fund a state-owned investment fund composed of financial assets such as stocks, bonds, property,precious metals, or other financial instruments.investment fundfinancialassetsstocksbondspropertyprecious metalsfinancial instruments invests globally funded by foreign exchange assets.

managing between USD 2 and 3 trillion (compared with around USD 6 trillion in traditional foreign exchange reserves) manage the foreign assets of national states a signifi cant class of global investors

important market players a lack of transparency in the majority of SWFs the seven least transparent SWFs are estimated to account for almost half of all SWFs’ holdings.

countries with relatively lower levels of institutional development public investment agencies which manage part of the (foreign) assets of national states

Singapore Government Investment Company (GIC) Korea Investment Corporation (KIC) the investment portfolio of the Exchange Fund managed by the Hong Kong Monetary Authority China Investment Corporation (CIC),

CONCERNS lack of transparency risks to global financial stability Distortion in asset prices through non- commercially motivated purchases or sales of securities

Sovereign Wealth Funds and Official Foreign Exchange Reserves (USD billions) Source: European Central Bank

The World’s Largest Sovereign Wealth Funds

SWF’s major cross-border equity investsments

Sovereign Wealth Funds in Comparison