Sovereign wealth funds hit 3.5 trillion dlrs in 2007: US firm

0 Comments | AFP, April, 2008

WASHINGTON (AFP) — Sovereign wealth funds have mushroomed 24 percent annually over the past three years to hold a total of 3.5 trillion dollars in 2007, a US economic firm said Monday.

Global Insight said that projected on that annual growth pace, sovereign wealth funds (SWFs) would surpass the entire current economic output of the United States by 2015, and the European Union by 2016.

The surge in the funds comes as emerging economies, flush with swelling financial resources from higher energy and commodities prices, invest abroad seeking better returns on their investments.

However, the rapid rise in investment by the state-run investment funds has raised concerns that governments could use them as political tools.

Global Insight, a...