State Capitalism: The Rise of Sovereign Wealth Funds

Sovereign Wealth Funds (SWFs) have existed since 1953 and are here to stay. Their size and influence is set to grow. Already valued around $2.2 trillion, on current trends they could even reach $13.4 trillion in a decade. These government controlled funds are expected to take bigger financial stakes in equity and bond markets across emerging economies; to feed more money into alternative investments such as hedge funds and private equity; to boost strategic links with countries that have not shared fully in globalisation or which have been shunned by the West; and to take more strategic stakes in sensitive areas within developed countries. This study analyzes SWFs, detailing the largest 22, what drives them and their likely future impact.