Donald Trump commands start on a superb property Fund: What to know

On Monday, US President Donald Trump signed an executive order that directed the US Ministry of Finance and trade departments to set up a superb property fund.

He stated that this fund could potentially be used to buy Tiktok.

Tiktok, which has approx. 170 million US users, were briefly taken offline just before a law came into force on January 19, in which the Chinese owner, bytedance, either sold the app due to national security concerns or is facing a ban.

After joining on January 20, President Trump signed an executive order that tried to postpone the enforcement of the law by 75 days. He mentioned that he was in discussions with several parties about the purchase of Tiktok and expected to make a decision on the app’s future in February.

What is a superb property fund?

A SOVEREIGN WEALTH Fund (SWF) is a state -owned investment fund consisting of assets such as shares, bonds, real estate or other financial instruments. These funds are typically determined by governments to achieve specific financial goals and are often generated from budget surplus, foreign currency operations, revenue from privatizations, state transfer payments and revenue generated from resource exports.

The most important properties and purposes of sovereign wealth funds include:

• Stabilization Fund: To isolate the national budget and economy from raw material price fluctuations or financial shock.
• Savings Fund: To build wealth in the long term, especially for future generations.
• Pension Reserve Fund: To cover future pension obligations and ensure long -term fiscal health.
• Development Fund: To finance social and economic development projects such as infrastructure or education.
• Strategic Investment Fund: To influence or acquire strategic assets that may benefit national interests.

Examples of prominent sovereign wealth funds include Norway’s Public Pension Fund Global, Abu Dhabi Investment Authority and China’s China Investment Corporation.

More to follow.

Update: 2/3/25, 13:19 ET: This article has been updated with further information.