Sovereign Wealth Funds

Sovereign wealth funds (SWFs) are state-owned investment funds typically created from a country's excess foreign currency reserves, natural resource revenues, or budget surpluses.

Key purposes include long-term savings (for future generations, especially in resource-dependent nations), economic stabilization (protecting government revenue from market volatility), and maximizing returns on foreign exchange reserves.

SWFs are usually managed independently from the government and make long-term investments in stocks, bonds, real estate, and infrastructure. Norway's Government Pension Fund is the world's largest SWF.

Bangladesh has not yet formally established an active sovereign wealth fund, though discussions about creating one have taken place.