The Rise of Sovereign Wealth Funds: Definition, Organization, and Governance

Abstract

This paper addresses the difficulties of accurately defining a SWF, discusses the evolution of the original SWFs from stabilization to wealth funds, and examines how SWFs are organized and funded. We also detail the key measures developed to assess the operational and informational transparency and institutional quality of different fund by comparing the organizational structures, corporate governance systems, and investment patterns observed for SWFs with those documented empirically for other internationally active institutional investors.

Keywords: Sovereign wealth funds, International financial markets, Government policy and regulation

JEL Classification: G32, G15, G38