Sovereign wealth funds need legal clarity
Sovereign wealth funds have become some of the most powerful players in global finance. They now manage more than US$16 trillion in total assets, up from about US$3 trillion in 2008.
Sovereign wealth funds have become some of the most powerful players in global finance. They now manage more than US$16 trillion in total assets, up from about US$3 trillion in 2008.
Their ability to act nimbly, diversify public wealth, and invest for the long-term have important and lasting benefits for citizens today and future generations.
As funds have grown, their mandates have rapidly expanded beyond cushioning government budgets and stewarding intergenerational savings to roles as diverse as building infrastructure and implementing social and industrial policy.
Increasing geopolitical fragmentation has intensified the appeal of these funds as countries seek to be more self-reliant.
Funds can boost domestic resilience, preserve national wealth, advance national development objectives, and foster economic dynamism. With projects spanning private equity, real estate, and technology, they have become some of the world’s most influential investors.
