Sovereign Wealth Fund
- The Source
- Sep 13, 2024
- 1 min read
Updated: 3 days ago
"It’s simply a mechanism through which countries make investments. A pot of money – often derived from oil or other commodities – that is then invested in shares, bonds, property or other areas of potential growth.
Many of the countries that use sovereign wealth funds (SWFs) have economies that are heavily reliant on one source of income, for example oil revenues in Norway and the Middle East.
The investments made through the SWFs are effectively a way for those countries to diversify and become less reliant on a single stream of income".

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