I have little to no knowledge of Sovereign Wealth Funds. I’d like to find out more
Does anyone think the UK should have one ?
Will Freetrade build it’s own Sovereign style Wealth Fund by owning a Portfolio of stocks to generate income other than from its clients ?
Should they ?
UK should’ve channeled North Sea Oil profits into a sovereign wealth fund, but that ship has sailed. Fail to see where the income to set up this fund would come from.
But, in principle, it would be a smart idea. There has been some suggestion that we should borrow a ton of money at current low interest rates and set up a sovereign wealth fund. Would be risky but highly unlikely not to generate a net positive return. Fail to see a government with a bottle to do that though!
This comes down to a single question. Do you think the governement can invest money more productively than private citizens and business? If yes, create such a fund. If no, don’t.
I’ve been prattling on for years about how beneficial an SWF would be to help pay for pensions or social care. We’d need the conviction to leave it alone for 10-15 years to grow into a nice pot.