Sovereign investment fund

From Wikipedia, the free encyclopedia

A sovereign investment fund is an investment fund created or controlled by a government, usually of a country with trade surpluses and abundant foreign monetary reserves (China, Kuwait, Norway..).

Those funds might buy foreign assets, and among them company's stocks, which creates some political controversies in the "recipient" countries.

They can be considered as an evolution of ordinary Sovereign wealth funds, which invest state budget surpluses in national assets and, in the case of foreign holdings, liquid assets and treasury securities.