A government-owned investment fund, often built from oil or trade surplus money, invested globally.
A sovereign wealth fund is a pool of money owned and invested by a national government, usually built up from oil revenue, trade surpluses, or foreign currency reserves, rather than from taxes. Countries like Norway, Saudi Arabia, and Singapore run some of the world's largest ones, investing in stocks, real estate, and companies all over the globe to grow national wealth for future generations rather than letting the money sit idle. When one of these funds takes a stake in a company or makes a major deal, it can move markets simply because of the sheer size of money involved.
Part of the Open Bell Glossary — plain-English explanations of the terms that come up on the show. Browse every term.