ABSTRACT
This chapter provides a clear definition of Sovereign Wealth Funds (SWFs) that differentiates them from similar institutions. It refines the analysis of SWF behaviour by applying the lens of multinational enterprise theory. A comprehensive survey of the international investment behaviour of SWFs is undertaken, revealing the funds to be largely conservative in their investment policies and non-strategic in investment approaches. Policies towards SWFs are recommended that take account of their particular characteristics but remain neutral with regard to their international investment behaviour.
