Home > Glossary > Sovereign Wealth Funds

Meaning / Definition of

Sovereign Wealth Funds

Categories: Mutual Funds,

SWF. Foreign investment funds owned by national governments and financed by the country's foreign currency reserves (dollar, euro, yen), often through their central banks or via direct investments. The term sovereign wealth fund was introduced in 2005, but the first SEF was introduced in 1953 by the government of Kuwait (' kuwait investment authority,' a commodity SWF). These funds are now major players in the world financial markets. The combined assets of the major SWFs (owned by 20 governments) have reached over three trillion dollars, and are expected to reach over 10 trillion dollars by 2012. Although the current total amount makes up only some 3 percent of the world's traded securities, the SWFs already have tremendous concentrated financial power. Over half of the SWF assets are owned by oil and gas exporting nations, and about one third by Australia, China, and Singapore. SWFs are aggressive investors and have bought into firms as diverse as Morgan Stanley, General Electric, and Sony.

Featured term of the day

Definition / Meaning of

Relative Strength

Categories: Investing and Trading,

A stock's price change over a period of time relative to that of a market index, such as the s&p 500. The relative strength of a stock is calculated by taking the percentage price change of a stock over a set period of time and ranking it on a scale of 1 to 100 against all other stocks on the market, with 1 being worst and 100 being best. For example, a stock with a relative strength of 90 has experienced a greater increase in its price over the last year than the price increases experienced by 90% of all other stocks on the market. Some technical analysts, especially momentum investors, like stocks with high relative strength rankings, believing that stocks which have recently gone up are more likely to continue going up. Other technical analysts believe that a very high relative strength can be an indication that the stock is overbought and is ready to fall. Relative strength is really a "rear view mirror" metric, measuring only how the stock has done in the past, not how it will do in the future.

Most popular terms

1. EBIDTA
2. National Highway Traffic Safety Administration (NHTSA)
3. Committee On Uniform Security Identification Procedures (CUSIP) Service Bureau
4. Flash Mob
5. Mortgage Impairment Insurance
6. Contractors Professional Liability Insurance
7. Homeowners Policy Special Form 3 (HO 3)
8. Netting
9. Mortgage-backed Security
10. Fill Or Kill Order (FOK)

Search a term

Keyword:

Browse by alphabet

ABCDEFG
HIJKLMN
OPQRSTU
VWXYZ#

Browse by category

Accounting
Banking
Bankruptcy Assistance
Bonds and Treasuries
Brokerages
Business and Management
Compliance and Governance
Credit and Debt
E-commerce
Economics
Estate Planning
Forex
Fraud
Fundamental Analysis
Futures
Global
Insurance
International Trade
Investing and Trading
Ipos
Legal
Loan and Mortgage
Mergers and Acquisitions
Mutual Funds
Operation and Production
Options
Patent
Personnel Management
Real Estate
Retirement and Pension
Statistics and Risk Management
Stocks
Strategies
Tax
Technical Analysis
Venture Capital