An institutional investor is reviewing various types of investment funds and their characteristics to better understand their roles in global finance. One particular type of fund they are focusing on is the Sovereign Wealth Fund (SWF).
Sovereign Wealth Funds are state-owned investment funds or entities that are generally established from national savings, surplus reserves, or revenues from commodities such as oil. They invest globally in a variety of asset classes, including equities, fixed income, real estate, and alternative investments.
Considering the specific characteristics and purposes of Sovereign Wealth Funds, which of the following statements accurately differentiates them from other institutional investors?