President Donald Trump signed an executive order directing Treasury Secretary Scott Bessent and Commerce Secretary-designate Howard Lutnick to develop a blueprint for a sovereign wealth fund. Trump expressed optimism that such a fund could become one of the world’s largest, citing examples like Saudi Arabia’s Public Investment Fund—currently valued at approximately $925 billion—and Norway’s Government Pension Fund Global, which has amassed over $1.7 trillion.
Questions remain about where initial funding would come from and how the assets would be managed. However, officials at the White House note the government holds $5.7 trillion in assets, an amount they argue could be strategically invested for long-term wealth generation.
Trump also specifically mentioned the Chinese-owned social media platform TikTok as a potential investment vehicle, but details are scarce.
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The executive order offers a three-month window for officials to finalize their proposal, with the administration indicating to stand up the fund “within the next 12 months.”
While the US has never operated a sovereign wealth fund at the federal level, the White House points out that 23 states collectively oversee more than $300 billion in assets through their own versions. The largest, the Alaska Permanent Fund Corporation, is worth roughly $80 billion, financed by a share of the state’s oil proceeds and Alaskans each receive an annual dividend from that fund.
Globally, these funds often stem from revenues linked to natural resources—especially oil—or from government-held assets such as foreign currency reserves. Norway (through its vast offshore oil revenue) and Saudi Arabia (via its oil wealth) operate some of the largest examples. Beyond energy-focused nations, countries like China and Singapore manage substantial funds sourced from budget surpluses, foreign exchange holdings, and state-owned businesses.
These funds also have financed diverse projects. Qatar, for instance, purchased the prestigious UK department store Harrods in 2010. Norway used its fund to buy shares at Tesla and was able to use its shareholder power last year to vote against a $50 billion pay package for Elon Musk.
Critics, however, point to the high US national debt of roughly $36 trillion, questioning the logic of funneling government resources into investments when borrowing costs remain significant. Skeptics also raise concerns about potential mismanagement or even corruption, highlighting scandals such as Malaysia’s 1MDB, which saw billions of dollars disappear and led to criminal charges against the country’s former prime minister and other officials.
According to research platform Global SWF, there are hundreds of such funds worldwide, collectively managing trillions of dollars in assets. For instance, Norway’s Government Pension Fund Global owns about 1.5% of all publicly listed companies worldwide and strictly limits government spending of its returns to preserve long-term value.
Information for this story was found via The Washington Post, Forbes, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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What could possibly go wrong…..