An interesting paper on Sovereign Wealth Funds or SWFs written by a friend of mine at the Federal Reserve Bank of Dallas. Definitely worth a read if you want a primer into SWFs, their characteristics, and contemporary performance and relevance.
Sovereign Wealth Funds Allow Countries to Invest for More Than the Long Term
As the authors note:
“Unconstrained by many limitations facing more-conventional asset managers, SWFs have evolved into a heterogeneous class of important, dynamic global investors. They regularly deploy substantial amounts of capital across public and private capital markets worldwide. The funds have a formidable global financial market presence and operate largely outside any comprehensive regulatory oversight. Bridging the worlds of international politics and high finance, SWFs require ongoing analysis so policymakers can better understand the funds and the implications of their investment decisions.”