FEAR & GREED | Business News Ask Fear & Greed: What's a sovereign wealth fund?
May 27, 2025
Discover what a sovereign wealth fund is and how it operates, with a close look at Australia's Future Fund versus Norway's. Unearth the economic significance these funds hold for their nations and explore the intriguing global landscape of sovereign wealth, especially China's vast investments. The discussion highlights concerns regarding transparency and regulatory issues, offering a well-rounded understanding of why these funds aren't often in the spotlight.
AI Snips
Chapters
Transcript
Episode notes
What is a Sovereign Wealth Fund?
- A sovereign wealth fund is a state-owned investment fund aimed at generating returns for a country's future needs.
- Australia's Future Fund originated from the sale of Telstra and government surpluses, currently worth about $240 billion.
Norway's Massive Wealth Fund
- Norway's sovereign wealth fund dwarfs Australia's at about $1.7 trillion USD.
- It owns 1.5% of the world's listed companies and is worth roughly $325,000 per Norwegian citizen.
Top Sovereign Wealth Funds Globally
- China holds the second and third largest sovereign wealth funds combined, exceeding Norway's.
- Many large funds originate from oil-rich countries like Abu Dhabi, Kuwait, and Saudi Arabia.