Sovereign Wealth Fund

A state-owned investment fund that manages a country's surplus reserves.

A sovereign wealth fund invests a nation's savings, often from oil revenue, trade surpluses, or foreign reserves, into stocks, bonds, real estate, and other assets around the world. Governments use these funds to diversify national wealth, stabilize budgets against commodity-price swings, and provide for future generations.

The country's sovereign wealth fund has grown into one of the largest institutional investors in the world, holding stakes in thousands of companies.