Once used by only a few countries around the world ,Sovereign Wealth Funds( SWF )are becoming an increasingly common feature of international finance†and state-led economic development .An increasing number of countries ,predominantly developing countries, who rely on the export of commodities such as hydrocarbons and minerals are creating SWF portfolios .The exact motivation behind creating an SWF varies between countries .Some SWFs aim to provide funds for an aging or growing population while others invest the funds in development and investment programmes to help diversify revenue generation mechanisms .Others are explicitly designed to cushion a country’s economy from price shocks ,currency volatility and general international economic instability.
