Glossary: 28 sovereign wealth fund terms in plain English

Short definitions of the words you will meet on this site and in reports about state investors. Each term has an example from our own profiles.

Anchor investor

An investor that commits a large amount early to a new fund or deal, which helps the manager attract others. State investors often take this role because they can commit big sums for a long time. Example: our ADIA profile records an anchor investment in a China-focused multi-asset portfolio.

AUM (assets under management)

The total value of the money a fund invests, at a stated date. The figure can mean different things: a pure investment portfolio, a group balance sheet that includes owned companies, or an announced target. Always check the definition and the date before comparing two funds.

AUM basis

Our label for where a size figure comes from. Every profile states the basis of its headline figure, such as total assets, net assets or market value. Grouped by source, 134 entities have a figure from the fund's own reports or audited accounts, 33 have a press report or an estimate, and 64 have no comparable figure. We never add figures across bases. See the methodology.

Central bank reserve arm

An investment portfolio or unit run inside a central bank or monetary authority, using part of the country's reserves for long-term investment. It sits close to a sovereign fund but answers to the central bank. Example: the HKMA Exchange Fund, with its Long-Term Growth Portfolio. We list 4 such entities.

Co-investment

Investing directly in a single deal alongside a private equity or other fund manager, instead of only through that manager's fund. It lets a state investor put more money into deals it likes, often at lower fees. Example: our ADIA profile lists co-investment styles including single-asset continuation vehicles.

Development fund

A state fund whose main task is to invest at home to build industries, infrastructure or jobs, often alongside private capital. Returns matter, but so does the effect on the local economy. Development banks are a related group; on our list they sit in the state holding and development tier.

Disclosure wall

Our term for an item that a large share of funds do not publish. Long-term returns are the highest wall: 52.4% of the 206 operating funds we score publish no long-term return figure at all. See the ten disclosure walls.

Dividend fund

A fund that pays part of its earnings directly to residents. The best-known example is the Alaska Permanent Fund: the 2026 dividend, set by the state legislature, is US$1,000 a head, with a further US$200 for energy relief (source: https://alaskabeacon.com/2026/09/30/permanent-fund-dividends-will-be-distributed-to-alaskans-starting-this-week/, as of 2026-09-30).

Dutch disease

The harm a sudden resource boom can do to the rest of an economy. A flood of export money pushes up the currency, which makes farming, manufacturing and tourism less competitive. Saving and investing the money abroad is one response. Example: the rationale for the Israel Citizens' Fund, which invests only outside Israel, cites avoiding Dutch disease.

Ethics council and exclusion list

A body that recommends which companies a fund should not own, and the published list of companies removed as a result. Example: Norway set up its Council on Ethics by royal decree on 19 November 2004 and excluded tobacco companies from 2010. See the Norway profile.

Fiscal rule

A law or policy that limits how much a government can take out of its fund each year. It protects the capital from being spent in good years. Example: Norway limits annual spending from its fund to the expected real return, set at 3% (profile).

IFSWF

The International Forum of Sovereign Wealth Funds, a voluntary membership body of state investors built around the Santiago Principles. On our list, 41 entities are full members and 8 are associate members. See IFSWF members.

Intergenerational equity

The idea that people alive today should not use up wealth that also belongs to future generations, especially wealth from oil, gas or minerals that will run out. Many savings funds cite it in their founding law. Example: Kenya's 2026 Act sends 30% of resource proceeds to a Future Generations Component (profile).

Pension reserve fund

A state fund set aside to pay for future public pensions, but without individual members or benefit claims of its own. It sits between a sovereign fund and a pension fund. Example: the New Zealand Superannuation Fund pre-funds part of the future cost of the national pension.

Permanent fund

A fund whose capital is protected by law or a constitution, so only part of the income or return can be spent. Many US state funds use this model. Example: the Texas Permanent School Fund, set up under the Texas Constitution of 1845 and seeded in 1854 with US$2 million.

Pipeline fund

Our label for a fund that has been proposed, passed into law but not yet capitalised, or is still being set up. We track 21. Example: the Canada Strong Fund, announced on 27 April 2026, which has no board or investments yet. See new sovereign wealth funds.

Reserve investment fund

A fund that invests part of a country's foreign exchange reserves for a higher long-term return than a central bank would normally seek. Example: the Korea Investment Corporation, founded on 1 July 2005, manages foreign exchange reserves and public funds entrusted to it.

Royalty

A payment to the owner of a resource, usually the state, for each unit of oil, gas or minerals taken out of the ground. Royalties are a common funding source for savings funds. Example: the Fundo Soberano de Maricá, a Brazilian city fund, is funded from oil royalties and special participations.

Sanctions

Legal restrictions by governments or the UN that freeze assets or bar dealings with named entities. We include sanctioned funds like any other and describe the measures neutrally. Example: the Libyan Investment Authority is subject to the UN Security Council asset freeze regime for Libya.

Santiago Principles (GAPP)

The Generally Accepted Principles and Practices for sovereign wealth funds, agreed in 2008. They are voluntary guidelines on governance, accountability and investment practice. Example: ADIA co-chaired, with the IMF, the 2008 working group that produced them. See the FAQ.

Savings fund

A sovereign fund built to turn a temporary windfall into lasting wealth for future generations, with withdrawals limited by rule. Example: Norway's Government Pension Fund Global, despite its name, works as a savings fund.

Sovereign wealth fund

A government-owned fund that invests surplus money for the long term, usually in a mix of assets at home and abroad, at arm's length from day-to-day budgets. We list 78 core national funds and 153 related entities. Full explainer: what is a sovereign wealth fund?

Stabilisation fund

A fund that saves money in good years so the government can draw on it when commodity prices or revenues fall. It holds mostly safe, liquid assets. Example: Chile's Economic and Social Stabilization Fund, which received its first contribution on 6 March 2007.

State holding company

A company owned by the state that holds and manages stakes in other companies, often former state enterprises, and runs them commercially. Example: Temasek, founded on 25 June 1974. We list 65 holding or development entities.

State-owned enterprise (SOE)

A company owned or controlled by a government that sells goods or services, such as an oil company or an airline. It is not an investment fund, but sovereign funds often own SOEs.

Strategic investment fund

A state fund that invests to meet national goals, such as new industries, technology or infrastructure, as well as for financial return. Example: Mubadala, formed in 2017 by merging Mubadala Development Company and IPIC.

Sub-national fund

A fund owned by a state, province, region or city, not by a national government. We list 55, including 29 in the United States. Example: the Alaska Permanent Fund. See US state funds.

Transparency score

Our own 10-item check of what a fund publishes, from total assets to a regular reporting schedule. Each item scores 0, 0.5 or 1, backed by a cited source. It measures openness, not performance. See the methodology.