Sovereign funds are the key players of the financial world. According to projections, 140 sovereign funds are expected to control 15% of the total assets under management worldwide, or $15 trillion, by 2020.
In 2016, they represented about 6 times France’s GDP. They have the financial power to exert a decisive influence on global markets, which raises the following questions:
- What are their characteristics?
- How do they differ from other financial players?
Sovereign investors are investment funds operating in the governmental sphere and dealing on the financial markets.
They professionally manage the funds entrusted to them by their respective governments, in accordance with the specific objectives defined by their sovereign trusteeship.
Their long-term view, their missions and the size of their assets under management make them major sources of capital for investments in sectors of the economy such as infrastructure, SMEs/MSBs and new technologies.