| The collapse in crude oil prices over the past six months has put many countries under fiscal pressure. But some oil-rich producers, such as Norway, the UAE and Kuwait, are in a more comfortable position thanks to longstanding commitments to ring-fence oil revenues into funds to preserve the value of their hydrocarbon resources.
The term ‘sovereign wealth fund’ has only existed for a decade or so, but state vehicles seeking to provide for future generations have been investing for decades, with Kuwait’s fund going back to 1953. The work of these organisations has been pioneering in building and using wealth. “Oil is sold and turned into a financial asset — the idea is to preserve the value of that money in line with inflation, plus some extra,” says Victoria Barbary, director of Institutional Investor’s Sovereign Wealth Centre, a research service...............................................Full Article: Source
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