National Security Sovereign Wealth Fund

Extracted Attributes

• Type

  Sovereign Wealth Fund

• Context

  Part of a US economic strategy under a potential Donald Trump administration

• Purpose

  Support strategic American projects; compete with China in the AI arms race

• Proposed By

  Howard Lutnick (as part of international strategy)

• Proposed Funder

  Japan

• Proposed Funding Amount

  $550 billion

Timeline

• Proposed as a key component of a US economic strategy to win the AI Arms Race against China, with Japan providing $550 billion to fund it for strategic American projects. (Source: Document 6fe8de57-cccf-428f-9e98-50534833bad5)

  Proposed

Sovereign wealth fund

A sovereign wealth fund (SWF), or sovereign investment fund, is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity funds or hedge funds. Sovereign wealth funds invest globally. Most SWFs are funded by revenues from commodity exports or from foreign exchange reserves held by the central bank. Some sovereign wealth funds may be held by a central bank, which accumulates the funds in the course of its management of a nation's banking system; this type of fund is usually of major economic and fiscal importance. Other sovereign wealth funds are simply the state savings that are invested by various entities for investment return, and that may not have a significant role in fiscal management. The accumulated funds may have their origin in, or may represent, foreign currency deposits, gold, special drawing rights (SDRs) and International Monetary Fund (IMF) reserve positions held by central banks and monetary authorities, along with other national assets such as pension investments, oil funds, or other industrial and financial holdings. These are assets of the sovereign nations that are typically held in domestic and different reserve currencies (such as the dollar, euro, pound, and yen). Such investment management entities may be set up as official investment companies, state pension funds, or sovereign funds, among others. There have been attempts to distinguish funds held by sovereign entities from foreign-exchange reserves held by central banks. Sovereign wealth funds can be characterized as maximizing long-term return, with foreign exchange reserves serving short-term "currency stabilization", and liquidity management. Many central banks in recent years possess reserves massively in excess of needs for liquidity or foreign exchange management. Moreover, it is widely believed most have diversified hugely into assets other than short-term, highly liquid monetary ones, though almost no data is publicly available to back up this assertion.

Web Search Results

• Sovereign Wealth Funds: An Introduction - Investopedia

  In the United States and Europe, many financial and political leaders have stressed the importance of monitoring and possibly regulating sovereign wealth funds. Many political leaders assert that sovereign wealth funds pose a threat to national security, and their lack of transparency has fueled this controversy. The United States addressed this concern by passing the Foreign Investment and National Security Act of 2007, which established greater scrutiny when a foreign government or [...] A sovereign wealth fund is a state-owned pool of money that is invested in various financial assets. The money typically comes from a nation's budgetary surplus. When a nation has excess money, it uses a sovereign wealth fund as a way to funnel it into investments rather than simply keeping it in the central bank or channeling it back into the economy. [...] International Monetary Fund. "Economics of Sovereign Wealth Funds: Issues for Policymakers," Page 127. CNBC. "Sovereign Wealth Funds Have Big Paydays from Crisis." The Guardian. "Revealed: How Sovereign Wealth Funds Were Left Nursing Multibillion Losses." U.S. Government. "Foreign Investment and National Security Act of 2007," Page 2. Middle East Institute.edu. "The New Wave of Dealmaking by Gulf Sovereign Wealth Funds." ## Related Articles

• A Plan for Establishing a United States Sovereign Wealth Fund

  Section 1. Policy and Purpose. It is the policy of the United States to maximize the stewardship of our national wealth for the sole benefit of American citizens. To this end, it is in the interest of the American people that the Federal Government establish a sovereign wealth fund to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish economic security for future generations, and promote United States economic and strategic [...] Sec. 2. Sovereign Wealth Fund. The Secretary of the Treasury and the Secretary of Commerce, in close coordination with the Assistant to the President for Economic Policy, shall develop a plan for the establishment of a sovereign wealth fund consistent with section 1 of this order. The Secretary of the Treasury and the Secretary of Commerce shall jointly submit this plan to the President within 90 days of the date of this order. Such plan shall include recommendations for funding mechanisms, [...] X Instagram Facebook Search for: Press Enter to Search Presidential Actions A Plan For Establishing A United States Sovereign Wealth Fund ============================================================= The White House February 3, 2025 By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to promote the long-term financial health and international leadership of the United States, it is hereby ordered:

• Sovereign wealth fund - Wikipedia

  As this asset pool continues to expand in size and importance, so does its potential impact on various asset markets. Some countries, like the United States, which passed the Foreign Investment and National Security Act of 2007, worry that foreign investment by SWFs raises national security concerns because the purpose of the investment might be to secure control of strategically important industries for political rather than financial gain. [...] 38. ^"Hong Kong Monetary Authority Investment Portfolio (HKMA IP) - Sovereign Wealth Fund, Hong Kong - SWFI". _Sovereign Wealth Fund Institute_. Archived from the original on 15 September 2020. Retrieved 28 December 2021. 39. ^"National Council for Social Security Fund of the People's Republic of China (NSSF) - Sovereign Wealth Fund, China - SWFI". _Sovereign Wealth Fund Institute_. Retrieved 6 June 2023. [...] On 3 February 2025, President Donald Trump signed an executive order directing the creation of a United States sovereign wealth fund within the next year.(

• Raising Capital: The Role of Sovereign Wealth Funds

  In addition to the steps that SWFs themselves take to avoid controversy, their investments may be scrutinized through various laws and regulations. For example, the U.S. Department of the Treasury’s Committee on Foreign Investment in the United States reviews foreign investments to ensure that they do not compromise national security. In the summer of 2007, the U.S. Congress enacted new legislation, aimed at SWFs, that requires additional scrutiny and higher-level clearances for transactions [...] While there is no generally agreed upon definition of an SWF, the U.S. Department of the Treasury defines SWFs as government investment vehicles funded by foreign exchange assets that are managed separately from official reserves.1 More colloquially, SWFs are investment funds controlled by governments. One example is the Norwegian Government Pension Fund; much of its funding comes from oil revenues. Other SWFs such as the Government of Singapore Investment Corporation are funded through foreign

• Hearing: The Implications of Sovereign Wealth Fund Investments for ...

  The U.S.-China Economic and Security Review Commission is a legislative branch commission created by the United States Congress in October 2000 with the legislative mandate to monitor, investigate, and submit to Congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China, and to provide recommendations, where appropriate, to Congress for legislative and administrative action. [...] research navigation menu drop down The U.S.-China Economic and Security Review Commission is chartered to monitor, investigate, and report to Congress on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China. The Commission meets its research mission by submitting to Congress an Annual Report, as well as by conducting staff-led reports, contracted research, and more. Search [...] # Hearing: The Implications of Sovereign Wealth Fund Investments for National Security February 7, 2008 Room 562, Dirksen Senate Office Building First Street and Constitution Avenue, NE Washington, DC 20510 Hearing co-Chairs: Chairman Larry Wortzel and Commissioner Patrick Mulloy AGENDA OPENING STATEMENTS Panel I: Congressional Perspectives Panel II: Government Perspectives Panel III: Overview Panel IV: Impact on Financial Services Industry