According to the Sovereign Wealth Fund Institute, a Sovereign
Wealth Fund (SWF) is a state-owned investment fund or entity that
is commonly established from balance of payments surpluses,
official foreign currency operations, the proceeds of
privatizations, governmental transfer payments, fiscal surpluses,
and/or receipts resulting from resource exports. The definition of
sovereign wealth fund exclude, among other things, foreign currency
reserve assets held by monetary authorities for the traditional
balance of payments or monetary policy purposes, state-owned
enterprises (SOEs) in the traditional sense, government-employee
pension funds (funded by employee/employer contributions), or
assets managed for the benefit of individuals.