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DETAILS: Trump’s Sovereign Wealth Fund Exec. Order

Posted May 07, 2025

Matt Insley

By Matt Insley

DETAILS: Trump’s Sovereign Wealth Fund Exec. Order

Jim Rickards’ “American Birthright” thesis reveals a hidden federal asset — a vast reserve of untapped natural resources valued near $150 trillion… locked away for over 160 years.

But this reserve may soon be unlocked, via President Donald Trump’s executive order signed on February 3, 2025, directing the Treasury and Commerce secretaries to develop a plan within 90 days to create the first U.S. sovereign wealth fund (SWF).

  • A sovereign wealth fund is a government-owned investment fund that manages national assets — for instance, stocks, bonds, real estate and natural resources — to generate returns and support national economic goals.

These funds are typically financed by surplus revenues, often from natural resources like oil and gas, or from budget and trade surpluses

In the coming days, Treasury Secretary Scott Bessent is expected to present a plan, which will outline the fund's structure, governance, funding and investment strategies.

Your Rundown for Wednesday, May 7, 2025...

… And Who Benefits From Them

Although SWFs invest in a broad range of assets, their objectives commonly include:

  • Economic Stabilization: Cushioning the economy against volatile commodity prices
  • Savings for Future Generations: Preserving wealth to ensure long-term economic security
  • Economic Diversification: Reducing reliance on a single revenue source
  • Strategic Investments: Supporting key industries and infrastructure that align with national interests.

In short, Sovereign wealth funds provide financial stability and generate income that can reduce tax burdens, fund public services, support pensions and more.

By investing wisely, SWFs help smooth out economic cycles, preserve wealth for future generations and promote sustainable economic growth.

At the same time, governance structures are designed to ensure accountability, with professional management often separate from direct government control.

Some examples of SWFs?

Saudi Arabia’s Public Investment Fund (PIF): With over $925 billion in assets, the PIF invests globally to diversify the economy beyond oil and strengthen Saudi Arabia’s strategic economic position. President Trump has cited the PIF as a model for a U.S. fund.

Norway’s Government Pension Fund Global: Established in 1990 from oil revenues, this is the world’s largest SWF, managing about $1.8 trillion. It invests broadly in international stocks, bonds and real estate. The fund supports government spending and pensions, providing about 20% of Norway’s annual revenues.

While the federal government has not had a sovereign wealth fund before, 11 U.S. states operate their own SWFs — primarily funded by revenues from natural resources.

Notable examples include:

  • Alaska Permanent Fund: Valued at nearly $80 billion, it distributes annual dividends — in the form of a check — to eligible residents.
  • Texas Permanent School Fund: Established in 1845, it’s one of the oldest and largest sovereign wealth funds in the U.S., with assets exceeding $57 billion as of 2024. As its name implies, its primary mission is to support Texas public schools.

These state funds demonstrate that SWFs work effectively in regions with abundant natural resources, helping stabilize economies and provide long-term benefits for citizens.

To summarize: Sovereign wealth funds are government-run investment vehicles that manage national assets to generate economic benefits, stabilize budgets and save for the future.

Examples from Saudi Arabia and Norway show how SWFs can diversify economies and provide steady income streams. In the U.S., 11 states — including Alaska and Texas — have successfully operated SWFs, mainly leveraging natural-resource wealth.

President Trump’s executive order signals a move to create a federal SWF, reflecting the proven success of such funds in resource-rich regions and their potential to enhance America’s economic security.

And here’s just one potential benefit…

Senators, including Bill Cassidy (R-LA) , have proposed using a SWF — separate from the Social Security Trust Fund — to preserve seniors’ benefits.

Market Rundown for Wednesday, May 7, 2025

S&P 500 futures are up 0.30% to 5,640.

Oil is up 0.60% to $59.43 for a barrel of WTI.

Gold is down 0.80% to $3,394.50 per ounce.

Bitcoin’s up almost 2%, just under $97,000.

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