The World's Largest $1.7 Trillion Sovereign Wealth Fund Holds Key Lessons For Trump And The U.S.—Will They Listen?

As President Donald Trump pushes forward with plans to create the United States' first-ever sovereign wealth fund, he should be taking a look at some of the world's most successful funds for inspiration. One of the best examples of how a sovereign wealth fund can succeed is Norway's Government Pension Fund Global, which is worth $1.7 trillion.

This fund is considered one of the best examples of how to manage national wealth for the long term. So, what can Trump—and the U.S.—learn from Norway's success? 

What Is a Sovereign Wealth Fund, and Why Does It Matter?

A sovereign wealth fund is a government-run investment fund designed to manage the country's assets, whether they're from natural resources, budget surpluses, or other sources. These funds can be used to stabilize the economy, finance national infrastructure projects, or save for future generations.

Don't Miss:

• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share!
• Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.

In Norway, the government set up its fund back in the 1990s to invest the country's oil revenue. The intention was to prevent the nation’s economy from collapsing when the oil supply ran out. Over time, it's become a powerhouse, invested in global stocks, bonds, and real estate and at the same time providing long-term financial stability for Norway's citizens.

How Norway's Fund Became a Model

Norway's sovereign wealth fund is often praised for being transparent, well-managed, and focused on long-term results. 

Norway doesn't put all its eggs in one basket. While its fund started with oil money, it has since expanded into a wide range of global assets. This helps shield the country's economy from the volatility of any single market or resource. Trump's U.S. fund should learn from this and invest in many different areas.

Trending: It’s no wonder Jeff Bezos holds over $70 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.

The fund is overseen by an independent board, making decisions free from political pressure. This transparency helps avoid accusations of corruption or favoritism. Trump will need to set up a solid governance structure for his sovereign wealth fund to ensure it operates fairly and in the best interest of all Americans.

Norway's fund focuses on the long-term benefits, with an eye toward sustainability. The U.S. could easily fall into the trap of short-term thinking, where funds are used to address immediate issues instead of planning for the future. 

What Can the U.S. Learn from Norway?

With plans to create a similar sovereign wealth fund in the U.S., Trump has an opportunity to follow in Norway's footsteps. However, he'll need to be careful with a few key aspects to make sure the fund doesn't go off track.

Norway's fund is known for its openness. If the U.S. fund is to succeed, it needs a clear strategy for how assets will be invested and how funds will be allocated. The public needs to know that the fund is being managed well and in their best interest.

See Also: According to Juniper Research, the total value of B2B cross-border payments stored on the blockchain is projected to exceed $4.4 trillion — Join the first company to bring blockchain payments to Salesforce early with just $100.

While immediate issues like infrastructure and national security concerns may tempt Trump to use the fund for short-term goals, Norway's success lies in focusing on long-term economic growth. The U.S. fund should aim for sustainable wealth that will benefit future generations.

One of the best things about Norway's fund is that it's not controlled by political interests. If the U.S. wants its fund to be successful, it will need to focus on what's best for the country, not for any one person or political party.

The question now is whether the U.S. will heed the lessons from Norway's massive success. A well-managed sovereign wealth fund could provide stability, reduce the tax burden, and create long-term economic security for the country.

Read Next:

• ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum.
• Built on the trusted network of Fortune 500 companies, this blockchain company partners with Salesforce to uproot lengthy and expensive B2B transactions, and you can invest with just $100.