SWFs investment style can be either strategically or financially focused. Strategic SWFs make concentrated investments in public and private markets, are not afraid to pursue activist strategies, and are usually non-transparent, whereas the financially-focused funds make broad, diversified investments, mainly in public markets, are quite transparent and are passive shareholders. Strategic SWFs have the potential to cause controversy, since the impacts of their investments can be significant and little is know of their motives, other than “to promote economic growth and make strategic investments” or “maximise long-term shareholder value as an active investor and shareholder,” Hon

Cheung writes in a State Street Global Advisors research paper. Through its website, ADIA, a strategic SWF, states that its focus is “long-term value creation”. Such an aim could be seen as the third common characteristic of the large, sovereign sums of money.