Sovereign funds

When we talk about sovereign funds we are referring to that special and particular type of funds or public investment instruments governed and controlled directly by a State.
Sovereign funds have the objective of acting globally in order to obtain returns and strategic advantages. The resources in the hands of sovereign funds are the result of their economic management, in fact they can derive from the exchange of the State’s raw materials, from the revenues obtained from exports, from a surplus in the country’s balance of payments or from privatizations of its resources and structures.
In recent years the importance and strength of the sovereign funds of some countries, primarily Chinese and Arab but also Russian, exert very strong pressure on the world financial market. Initially created to facilitate and increase economic growth and social development, in recent years due to the great weight they are able to exert and the financial securities they are able to purchase, such as bonds from banks in other states, it is feared they could infiltrate and influence the policies of other countries. To avoid interference from countries that own sovereign funds, in 2008 they signed the code of conduct known as “The principles of Santiago”.
For further information: “The ranking of the top 10 sovereign funds in the world”