Sovereign Wealth Fund
A proposed government-owned investment fund that would hold and manage equity stakes in companies like Intel, with debate on how its returns should be utilized, such as for debt reduction or funding Social Security.
First Mentioned
7/26/2025, 4:00:27 AM
Last Updated
8/31/2025, 5:11:38 AM
Research Retrieved
8/31/2025, 5:11:38 AM
Summary
A Sovereign Wealth Fund (SWF) is a state-owned investment fund established by a national government to invest its surplus reserves, aiming to generate economic benefits for its citizens. In the United States, the concept of a national SWF has been discussed as a strategic necessity for national security, particularly to compete with state-backed industries in countries like China. This discussion includes an "Equity for Grants Model," where the US government takes equity stakes in companies like Intel under the CHIPS Act, rather than providing direct grants. Former President Donald Trump issued an executive order to create a U.S. SWF, leading to debates on whether its primary purpose should be national industrial policy or managing long-term liabilities such as Social Security, potentially seeded with funds from government stakes in entities like TikTok. A proposal also suggests directing returns from such a fund to the Old Agent Survivors Insurance Fund (OASI) to address the looming Social Security crisis, a move that would require congressional approval.
Referenced in 2 Documents
Research Data
Extracted Attributes
Purposes
Stabilizing a country's economy, insulating its budget, preserving wealth for future generations, reducing financial burden of holding reserves, allocating resources for development projects, supporting future pension obligations, national industrial policy, managing long-term liabilities (e.g., Social Security)
Ownership
Owned by the general government (central and sub-national governments)
Definition
A state-owned investment fund that manages a country's surplus reserves to generate economic benefits for its citizens.
Exclusions
Public pension funds, central bank reserve assets
Typical Assets
Stocks, bonds, property, other financial instruments, foreign currency deposits, foreign exchange reserves, gold, Special Drawing Rights (SDRs)
Investment Focus
Investments in foreign financial assets; financial objectives
First Established SWF
Kuwait Investment Authority
Year First SWF Established
1953
Global Assets (Top 100 Funds)
$13.7 trillion
Official Definition Publication
Santiago Principles, Appendix I
Timeline
- The Kuwait Investment Authority, the world's first sovereign wealth fund, was established. (Source: Web Search Results)
1953
- An official definition of a sovereign wealth fund was published in Appendix I of the Santiago Principles. (Source: Web Search Results)
2008
- Discussion of a US Sovereign Wealth Fund, including proposals for its use in national industrial strategy and managing long-term liabilities like Social Security. (Source: Related Documents)
Ongoing
- The US Government takes an equity stake in Intel instead of providing grants under the CHIPS Act, sparking proposals for a Sovereign Wealth Fund. (Source: Related Documents)
Ongoing
- Donald Trump issues an executive order to create a U.S. Sovereign Wealth Fund. (Source: Related Documents)
Ongoing
Web Search Results
- List of sovereign wealth funds by country - Wikipedia
A sovereign wealth fund (SWF) is a fund owned by a state (or a political subdivision of a federal state) composed of financial assets such as stocks, bonds "Bond (finance)"), property or other financial instruments. Sovereign wealth funds are entities that manage the national savings for the purposes of investment. The accumulated funds may have their origin in, or may represent, foreign currency deposits, foreign exchange reserves, gold, special drawing rights (SDRs) and International Monetary [...] 47. ^ "National Welfare Fund (National Wealth Fund) - Sovereign Wealth Fund, Russia - SWFI". www.swfinstitute.org. Retrieved 2024-01-02. 48. ^ "National Development Fund of Iran (NDFI) - Sovereign Wealth Fund, Iran - SWFI". www.swfinstitute.org. Retrieved 2024-01-02. 49. ^ "Samruk-Kazyna (Samruk Kazyna) - Sovereign Wealth Fund, Kazakhstan - SWFI". www.swfinstitute.org. Retrieved 2024-01-06. [...] 56. ^ "Brunei Investment Agency (BIA) - Sovereign Wealth Fund, Brunei - SWFI". www.swfinstitute.org. Retrieved 2020-09-15. 57. ^ Narayanan, Archana (2022-11-14). "Oman's Sovereign Wealth Fund Boosts Assets to $41.5 Billion". Bloomberg. Retrieved 2023-06-29. 58. ^ "Ethiopian Investment Holdings - Sovereign Wealth Fund, Ethiopia - IFSWF". www.ifswf.org. Retrieved 2024-05-19.
- Sovereign Wealth Fund (SWF): Definition, Examples, and Types
A sovereign wealth fund is a pool of assets that is run by a country's government, invested in assets to generate economic benefits for the citizens. For oil-rich countries like Norway, Kuwait, and Saudi Arabia, sovereign wealth funds represent an important source of government revenues and a tool for economic policy. Article Sources [...] A sovereign wealth fund (SWF) is a state-owned investment fund that manages a country's surplus reserves to generate economic benefits for its citizens. ## What Is a Sovereign Wealth Fund (SWF)? A sovereign wealth fund is a state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves. SWFs provide a benefit for a country's economy and its citizens. ### Key Takeaways [...] A sovereign wealth fund is a state-owned investment fund. Sovereign wealth funds can be derived from a variety of sources and used for a variety of purposes. Acceptable investments in each SWF vary from fund to fund and country to country. ## Understanding Sovereign Wealth Funds (SWFs)
- 360° View of a US Sovereign Wealth Fund | Wilson Center
A sovereign wealth fund (SWF) is generally described as an investment fund created by a government to maximize its return on revenue. A SWF can serve multiple purposes, including stabilizing a country's economy and insulating its budget, preserving wealth for future generations, reducing the financial burden of holding reserves, allocating resources for development projects, and supporting future pension obligations. [...] At the most basic level, a SWF is a state-owned investment fund that manages a country’s financial assets for profit to build up a ”nest egg” for long-term financial stability, independence from foreign influence, and for the well-being of future generations. Yet a SWF also might come in handy in case of serious financial emergencies or for financing political priorities, including spreading a country’s global influence, as China frequently does with its China-Africa Development Fund. [...] In particular, an American Sovereign Wealth Fund can help boost American investment in overseas critical infrastructure—such as ports—to help strengthen US trade and national security while bolstering partnerships with other countries.
- What is a Sovereign Wealth Fund? - IFSWF
Skip to main content # What is a Sovereign Wealth Fund? The IFSWF is a diverse group of sovereign wealth funds from every inhabited continent. They have varied economic roles and mandates. There is an official definition of a sovereign wealth fund, written by sovereign wealth funds themselves in 2008 and published in Appendix I of the Santiago Principles. In short, this defines sovereign wealth funds as having three key characteristics: [...] 1. A sovereign wealth fund is owned by the general government, which includes both central government and sub-national governments. 2. Includes investments in foreign financial assets. 3. They invest for financial objectives. These key elements exclude: Public pension funds, which are ultimately owned by the underlying policy holders. Central bank reserve assets, which are not invested. ### Sovereign Wealth Funds by Mandate ## Sovereign Wealth Funds Objectives ### Saving Funds
- Ranked: The Largest Sovereign Wealth Funds in the World
Since then, numerous funds have launched, with the 100 largest globally holding $13.7 trillion in assets. Sovereign wealth funds are large pools of money run by governments that are typically resource-rich, such as Saudi Arabia and Kuwait. They may also have large foreign-exchange reserves, such as China and Singapore. This graphic shows the world’s largest sovereign wealth funds, based on data from the Sovereign Wealth Fund Institute. ## The Top 10 Sovereign Wealth Funds, by Assets [...] This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources. In 1953, the Kuwait Investment Authority became the world’s first sovereign wealth fund, designed to manage the country’s excess oil wealth.