Given Blackhawk’s Partners dealings with a number of
private family offices and sovereign wealth funds on a global basis, we are
often asked who exactly are those entities and how do they really allocate
their funds globally.
We thought this blog would clarify a number of things
about the myth and reality of sovereign wealth funds and set the record
straight.
A Sovereign Wealth
Fund (SWF) is a state-owned investment fund composed of financial assets such as stocks, bonds, real
estate, or other financial instruments funded by foreign exchange assets. These
assets can include: balance of payments surpluses, official foreign currency
operations, the proceeds of privatizations, fiscal surpluses, and/or receipts
resulting from commodity exports.
Sovereign Wealth
Funds can be structured as a fund, pool, or corporation. The definition of
sovereign wealth fund exclude, among other things, foreign currency reserve assets
held by monetary authorities for the traditional balance of payments or
monetary policy purposes, state-owned enterprises (SOEs) in the traditional
sense, government-employee pension funds, or assets managed for the benefit of
individuals.
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