Sovereign funds have shifted from passive index exposure toward ports, minerals, chips and grid assets — sectors where financial return and strategic position are inseparable. Recipient countries are responding with screening regimes that treat the funds as arms of the state, because functionally many are.
The reciprocity question
The coming fight is over reciprocity: whether access for a fund's capital can be conditioned on the openness of its sponsor's own market. Expect investment treaties to grow security annexes.