Understanding Sovereign Wealth Funds

Very Easy Institutional Portfolio Mgmt Sovereign Wealth Funds

Sovereign wealth funds (SWFs) are government-owned investment funds or entities that manage the national savings for the purposes of investment. These funds have increasingly become an important aspect of institutional portfolio management.

Which of the following statements about sovereign wealth funds is true?

Sovereign wealth funds are primarily funded through foreign investment in domestic companies.

Sovereign wealth funds are typically established to manage surplus revenues and diversify national income.

Sovereign wealth funds exclusively invest in domestic assets.

Hint

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