All parties should commit to creating a sovereign fund in their election manifestos, a group of experts has said.
Lakshmi Narayanan, president of the Sovereign Wealth Fund Institute (SWFI), believes the UK can “easily” have a fund of £395bn within three to five years. Her comments came as Prime Minister Rishi Sunak last week called a general election for July 4.
The funds, which are state-owned investment funds designed to increase a country’s wealth, are usually created from surplus income.
Narayanan said it was “about time” for the UK to announce a sovereign wealth fund and that a £395bn pool could be a boost for the London stock market.
He added: ‘All political parties should announce their intention to create a sovereign wealth fund and include it in their first implementation plan.
Idea: All parties should commit to creating a sovereign fund in their electoral programs
“This can release between 8 and 10 per cent of wealth into the capital markets to create £40bn of liquidity.”
Last year, the Mail on Sunday reported that Treasury officials explored the idea of creating a sovereign wealth fund.
