SWF


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SWF

Sovereign wealth fund (SWF).

A sovereign wealth fund (SWF) is a government-owned enterprise that invests a portion of its country's foreign-exchange reserves in global financial markets.

These reserves consist of a balance of payments surplus, also called a current account surplus, that are created because the payments received in overseas currencies for the country's exports, such as natural resources or manufactured goods, exceed what its residents are paying for imports.

Unlike the traditional overseas investments that governments make to ensure liquidity, such as the purchase of US Treasury securities, SWF assets are separate from official reserves and are typically invested in the private sector to produce higher returns.

SWFs are controversial, in part because their investment strategies, portfolio holdings, and returns are generally secret and in part because of the concern that the sponsoring countries could exert substantial economic pressure on the companies and countries where they invest.

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To attract capital from SWFs, Amlak will have to convince them of the commercial viability of each project," he says.
Nigeria's SWF also suffers from division between the federal and state governments over the allocation of oil revenues, as any money paid into a SWF will reduce the proportion left over for state expenditure.
A number of GCC SWFs are adopting a 'wait and see' approach to Europe as a considerable level of uncertainty continues to exist.
Support converting SWF to various devices: iPad, iPhone, iPod, BlackBerry, Android etc.
Enterprises can start testing SWF for free, and initiate up to 1,000 workflows and 10,000 tasks per month and keep them running for a total of 30,000 workflow-days.
The re-emergence of SWF, particularly at a time when domestic policymakers are preparing to leave the party, should be viewed as a positive development for financial markets, potentially helping to provide greater liquidity and stability to a broad range of asset markets.
You can't say transparency is a golden ticket," said Gary Smith, head of central banks, supranational institutions and SWF business at BNP Paribas Investment Partners.
The operational management of the SWF, in turn, should implement the SWF's strategies in an independent manner and in accordance with clearly defined responsibilities.
Concerns over transparency may be fuelling mistrust that SWF investment could be used to exert political influence and acquire strategic assets.
GAO analysis showed that about 60 percent of these 48 SWFs publicly disclosed information about the size of their assets since the beginning of 2007, but only about 4 funds published detailed information about all their investments--and some countries specifically prohibit any disclosure of their SWF activities.
government, at least eight Congressional groups and several federal agencies have claimed some jurisdiction over the SWF issue, on the basis of national security, financial services, securities regulation, foreign relations and other aspects of SWF activity.