Since US President Donald Trump signed authorization for the creation of the Sovereign Fund, several speculations arose about the possible destination of those resources.
The last world ranking of sovereign wealth shows that Norway’s “Norway Government Pension Fund Global” continues to lead with more than US $ 1,75 billionfollowed closely by two Chinese, the “China Investment Corporation” with more than US $ 1,33 billion and the “Safe Investment Company” with almost US $1.1 billionthat steals his heels. These great players in the global market are not only more and more influential, but are replicated by more governments, states and organizations. That is why it does not strange that Among the first executive orders signed by the president of the United States, Donald Trump, surprised with one that will allow the creation of a sovereign fund that would be operational in 2026. Perhaps, the American president or someone around his surroundings, saw how these market giants advance sustainfully, and also generate a profit flow such as the one registered by the Norwegian fund in 2024 of US $ 235,000 million.
After signing the executive order, Trump commissioned the task of realizing the sovereign fund to the Secretaries of Treasury and Commerce, Scott Besent and Howard Lutnickrespectively. Even Lutnick came to point out the possibility of using the fund for the purchase of Tiktok, which currently operates in the US thanks to an extension signed by Trump that prolongs the deadline for a forced sale or a closure. For its part, Trump slipped that large companies and Wall Street could advise this entity on investments to make a great expectation, especially in the main investment banks. It should be noted that these types of funds are not alien to the US where there are already several of this type, but that are of state ownership, such as that of Alaska that began in 1976 and manages assets worth more than US $ 80,000 millions while North Dakota deposits 30% of oil and gas taxes every month and has a portfolio of US $ 11,500 million. The former Democratic President Joe Biden also had a similar project in order to finance projects related to national security, such as the technological, energetic or logistics sector, but never came to specify it.
History shows that, in 1953, Kuwait’s investment authority became the first sovereign background of the world, designed to manage excess oil wealth in the country, and since then, numerous funds have been created, and The largest 100s in the world have almost US $ 14 billion in assets. Sovereign funds They are large money deposits administered by governments that are usually rich in resources, such as Saudi Arabia and Kuwait. They can also have great foreign exchange reserves, such as China and Singapore. These numbers also serve to dimension the prominence of the world’s largest investment fund, Blackrock, which manages a portfolio similar to those of the largest 100 sovereign funds in the worldwhere the top has administers about US $ 10 billion in combined assets.
A gain equivalent to almost 40% of Argentine GDP
In this regard, days ago the Sovereign Fund of Norway announced its performance last year in which He won the equivalent of almost 40% of Argentine GDPthanks to the good behavior of American technological actions, in particular, Apple, Microsoft and Nvidia. Thus, the Global Pension Fund of the Norway Government under Norges Bank Investment Management (NBIM) confirmed that it remains the largest sovereign fund in the world. “The fund achieved very good yields in 2024, as a result of a very strong stock market. In particular, US technological actions behaved very well”explained Nicolai Tangen, CEO of the Norwegian Fund. For its part, the NBIM explained that the yield of investments for variable income was 18%, and that of fixed income investments, of 1%; while investments in non -listed real estate showed a negative yield of 1%. On the other hand, he stressed that the performance of non -quoted renewable energy infrastructure was also negative, around 10%. “The background performance was 45 basic points lower than the reference index.” The background had a value of 19,742 billion crowns as of December 31, 2024, which is equivalent to more than 1.75 billion dollars, something like more than three GDP of Argentina.
As for the investment portfolio, from the NBIM they indicated that 1.4% of the fund was invested in shares, 26.6% for fixed income, 1.8% in non -quoted real estate and 0.1% In non -quoted renewable energy infrastructure. The deputy general director of the NBIM, Trond Grande, said that 2024 was a “Very strong year for the Variable Income” And he stressed that the yields had been driven by certain sectors, particularly as a result of an boom in technological actions. “Technology has really been strong, driven by artificial intelligence (AI), and also finance because interest rates have been higher for a longer time.”he said. He also referred to the emergence of the Chinese Deepseek startup: “The fact that there are now cheaper language models available is positive, it is positive for the democratization of artificial intelligence, therefore, there should be greater penetration of that technology worldwide when the cost is lower, so that is positive in general. ” “I think Deepseek’s development was a surprise for everyone, otherwise those market reactions would not have been seen,” he added.
The Trump Fund’s Objectives
In relation to the US it is worth remembering that Trump during the presidential campaign had mentioned the idea during a speech at the New York Economic Club, where he proposed to channel the money from tariffs to a background of wealth that could invest in manufacturing, defense and defense centers Medical research “We will create the sovereign of the United States wealth to invest in great national efforts for the benefit of the entire American people”Trump said at that time and suggested that Wall Street leaders and corporations in that event could have a role to play, helping to “advise and recommend investments.” He even spoke, or rather, to speculate, with which Greenland would be another goal of the Fund launched by Trump. We will see.
Source: Ambito
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