|From Militaryphotos.net: Sovereign wealth funds, as defined by the U.S. treasury, are government investment funds, funded by foreign currency reserves but managed separately from official currency reserves. Basically, they are pools of money governments invest for profit. Often this money is used to invest in foreign companies.
For instance, China's SWF purchased stakes in the U.S. financial firms Morgan Stanley and the Blackstone Group in late 2007. Dubai's SWF has bought up shares of several Asian companies, including Sony..... Full Article: Source