Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.


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.

Mentioned in ?
References in periodicals archive ?
Globally, more countries are using SWFs, with more than 40 new funds created since 2005, primarily from emerging markets such as Mexico and Turkey.
The last thought that I want to leave you with: at what value should a fund, or a SWF, be broken down into smaller funds?
However, while there are many positive feelings about Egypt's project, some experts question whether Amlak will actually be, by definition, a true SWF.
In 2008 through 2012, SWF assets grew by about 60% (Sovereign Wealth Fund Institute [SWFI], 2013).
Cuomo's plan "Start-Up NY", the state would create a tax-free zone in the Orange County area that would provide incentives to manufacturers to move their operations to the region and transform SWF into a new airfreight hub.
Ghana will use 70% of its oil income to support the state budget for both recurrent and capital spending, with the remaining 30% dedicated to its SWF and oil revenue stabilisation funds.
and that, as a result, further encouragement of SWF investment in
However, regardless of how GCC SWF investment strategies evolve, one thing is for sure: their billions of dollars of investable cash reserves will continue to ensure that they remain a key interest to the global investment community.
This SWF was set up in 1976 and employs more than 1,200 people, about 70% of whom are expatriates.
In the quarterly study by the US-based SWF Institute, Mumtalakat was placed alongside the sovereign wealth funds for South Korea and Canada with a rating of nine out of a possible 10.
With SWF, developers get full control over implementing processing steps and coordinating the tasks that drive them, without worrying about underlying complexities such as tracking their progress and keeping their state, Amazon said.
According to the company, the new service allows developers to structure the various processing steps in an application as "tasks" that drive work in distributed applications and Amazon SWF coordinates these tasks in a scalable manner.