SWFs can help the financial system in times of trouble  Sovereign wealth funds should be credited with coming to the rescue of the global financial system during the turmoil of 2008. With their long-term horizons for a return on their investments they have been willing to provide billions of dollars in new capital to distressed companies, at a time when other sources of funding have headed for the door. [1] Their money has allowed firms to continue trading and so safeguarded jobs at a time of great uncertainty. It has also helped prevent complete collapse of global equities prices, on which many people, through their pension funds, depend for a secure future. Moreover unlike some other types of funds such as hedge funds SWFs have an interest in keeping the global economy stable and reducing the impact of any downturns as their own country is bound to be affected by global economic conditions so responsible investment practices are encouraged. SWFs therefore “can play a shock-absorbing role in global financial markets”. [2]  [1] Beck, Roland, and Fidora, Michael, ‘Sovereign Wealth Funds – Before and Since the Crisis’, 2009, p.363.   [2] Lipsky, John, ‘Sovereign Wealth Funds: Their Role and Significance’, 2008.