DEFINITION of 'Strategic Investment Fund'
The Strategic Investment Fund is a government-owned sovereign wealth fund operated by France. The French government made an initial investment in the fund of $25 billion. According to the Sovereign Wealth Fund Institute, the fund had approximately $28 billion in assets under management in 2009.
BREAKING DOWN 'Strategic Investment Fund'
The creation of this fund was announced by French President Nicolas Sarkozy in late 2008. The goal of the fund is to make strategic investments in French firms to prevent them from being bought at discounted prices by foreign investors. The financial crisis depressed the market values of many major French firms. The fund is run jointly by the French government and the state bank Caisse des Depots et Consignations.