Bank Finance Articles

2007 was a sterling year for the growth of Sovereign Wealth Funds (SWF). The year witnessed the collective value of SWFs increase 24%. In aggregate the SWFs hold a total of $3.5 trillion assets under management (AUM) and are growing fast. The source of this wealth is massive surplus trade balances. Blessed by large trade surpluses due to its manufacturing might, China boasts a large and very active SWF. OPEC nations, Russia and other major exporters of natural gas and oil have parlayed the rising price of oil and their explosion of national wealth to create massive SWFs. The $3.5 trillion in assets held by SWFs are greater then the GDP's of countries such as Great Britain, France or Germany. Asset held in SWFs are also slightly larger then the combined AUM of the global hedge fund and the US mutual fund industry combined.
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