Trump’s Push for a US Sovereign Wealth Fund Transforms an Agency

A government agency traditionally responsible for development lending abroad aims to be more like a sovereign wealth fund, a key goal of President Donald Trump, according to a memo to staff.

The US International Development Finance Corp. intends to shift its investment priorities to balance its currently authorized development financing with a greater focus on returns as it advances US foreign policy interests, according to the Feb. 20 memo. DFC aims to target strategically important sectors using a number of different asset classes to deploy its more than $200 billion in financing capacity.

“We want to bridge the gap ...