sovereign wealth funds invest in equities, debt securities, real estate, resource extraction, and other assets. While the primary goal is investment returns, SWFs may look for investments that contribute to the economy of the host country, such as infrastructure or domestic companies. Funds for the sovereign wealth fund can come in several ways. The most widely recognized sources are the surplus reserves from state-owned natural resource revenues, trade surpluses, bank reserves that may be accumulated from budgeting excesses, foreign currency operations, money from privatizations, and governmental transfer payments. In general, sovereign wealth funds usually do something.
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