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Sovereign wealth funds (SWFs) are state-owned investment vehicles controlling an estimated US$ 7.5 trillion worth of assets as of October 2017. Typically, they manage portfolios of assets, by investing in shares or bonds, or acquiring real estate or companies, with a focus to increase returns on capital invested, stabilize their home country against economic volatility, diversify foreign exchange holdings or safeguard an aging population. 

This is a simplistic notion, as SWF are powerful tools that can shape the economic and social strategy of a nation. The focus needs to shift from the purely financial perspective of return on investment to include a broader perspective of return on development. By using the concept of a global factory, a SWF can use assets as a route to harness knowledge and technology, capture markets and reinvest in the development of its economy and people. By doing this, at a broader level, they can also create value spillover to host countries around the world. This route has policy implications for government bodies charged with managing SWF.