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CFA Level 3
Portfolio Management and Wealth Planning

Purpose of Sovereign Wealth Funds

Very Easy Institutional Portfolio Mgmt Sovereign Wealth Funds

A sovereign wealth fund (SWF) is a state-owned investment fund or entity that is used to manage a country's reserves. These funds are primarily established to achieve various financial goals, including economic stability, intergenerational wealth transfer, and diversification of national revenue sources. One of the key objectives of a sovereign wealth fund is to invest in a manner that balances risk and return while also considering the long-term needs of the country.

Given this context, which of the following is a primary purpose of a sovereign wealth fund?

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