President Donald Trump signed an executive order Monday to create a sovereign wealth fund, the first ever for the country. At the presser, he hinted that the money may be used to buy TikTok with it. A sovereign wealth fund is a state-owned investment fund comprising assets like stocks, bonds, property, or other financial assets — meant for use to invest in highways, airports, manufacturing hubs, medical research etc. Norway’s Government Pension Fund Global, Abu Dhabi’s Investment Authority, Singapore’s Temasek Holdings and GIC are some of the examples of sovereign wealth fund.
“We’re going to stand this thing up within the next 12 months. We’re going to monetize the asset side of the U.S. balance sheet for the American people,” he told reporters. “There’ll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people.”
The Sovereign Wealth Fund was Trump’s election promise which he said could fund great national endeavors.
According to the International Forum of Sovereign Wealth Funds, there are over 90 such funds across the world.
