US Secretary of Treasury Scott Bessent has hailed Donald Trump as the first President in the United States “who is going to create assets for American people, and not just debt.” Bessent said this while responding to a question on Donald Trump’s executive order to create a Sovereign Wealth Fund. Sharing the details on the kind of assets that may be housed under the United States Sovereign Wealth Fund (SWF), Bessent said that all the assets under a potential mineral deal with Ukraine were likely to be kept under the SWF.
Bessent also said that Fannie Mae and Freddie Mac, the financial giants which are currently under conservatorship, will also likely be a part of the SWF once the two companies exit government control. Remember, the United States government had taken over the two companies during the due to fears of an even worse mortgage market meltdown.
Trump’s Sovereign Wealth Fund Order
On February 3, 2025, Donald Trump signed an executive order directing the US Treasury and Commerce Departments to develop a plan for establishing a US sovereign wealth fund (SWF). This fund aims to monetise federal assets, promote fiscal sustainability, and enhance economic security. Potential funding sources include tariffs and the sale of public lands.
What’s A Sovereign Wealth Fund
A sovereign wealth fund is a state-owned investment fund composed of financial assets such as stocks, bonds, real estate, or other financial instruments. These funds are typically derived from a country's surplus reserves and are managed to achieve long-term returns, diversify the economy, and reduce reliance on a single revenue source.
World’s Largest Sovereign Wealth Funds
As of March 2025, the largest SWFs by total assets under management are: Norway Government Pension Fund Global: Over $1.7 trillion China Investment Corporation: Over $1.3 trillion SAFE Investment Company (China): Over $1 trillion Abu Dhabi Investment Authority (UAE): Over $1 trillion Kuwait Investment Authority: Over $1 trillion
