The U.S. and the UK each announced they were establishing sovereign wealth funds. We explore the purposes and types of sovereign wealth funds, how they invest, and some concerns with the U.S. establishing one.

Topics covered include:

• What are the four types of sovereign wealth funds, and why the U.S. doesn't fit the typical use case
• How sovereign wealth funds navigate between politics and generating high returns
• Why a U.S. sovereign wealth fund, depending on its size, could crowd out other investment capital, leading to lower investment returns
• How the U.S. federal government already invests in its economy without a sovereign wealth fund

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Show Notes

Fact Sheet: President Donald J. Trump Orders Plan for a United States Sovereign Wealth Fund—The White House

A Plan For Establishing A United States Sovereign Wealth Fund—The White House

International Forum of Sovereign Wealth Funds

Sovereign Wealth Funds: Past, Present and Future by Salman Bahooab, Ilan Alonb, and Andrea Paltrinieria—ScienceDirect

Guardians releases 2024 Annual Report—NZ Super Fund

UK Wealth Fund Brings Government And Private Investment Together by Efraim Chalamish—Global Finance

2024 Invesco Global Sovereign Asset Management Study—Invesco

Top 100 Largest Sovereign Wealth Fund Rankings by Total Assets—Sovereign Wealth Fund Institute

The Importance and Perspectives of Sovereign Wealth Funds in the Globalised Economy by Jan Černohorský and Kateřina Tesnerová—SHS Conferences

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