An urban wealth fund (UWF) is an investment fund that is set up to manage the assets of a city, often with the objective of maximizing return on the assets as a means of generating revenue for the city government. Its operation is similar to a Sovereign wealth fund but on a smaller scale. Such funds are publicly owned by the city but administered by an independent management structure that is free from political influence and concentrates on maximization of value.
Examples include HafenCity GmbH in Hamburg, Germany, and the City & Port Development Company in Copenhagen, Denmark.
Some economists and politicians advocate for the establishment of UWFs as a means of making more efficient use of city-owned assets such as land in order to generate revenue without necessarily resorting to tax increases or borrowing.
- ^Detter, Dag; Fölster, Stefan (July 18, 2017). The Public Wealth of Cities: How to Unlock Hidden Assets to Boost Growth and Prosperity. Brookings Institution Press.
- ^Klein, Matthew C (July 21, 2017). “US cities must unlock the value of the land they sit on”. Financial Times.
- ^Smeltz, Adam (February 12, 2018). “Peduto looking beyond city hall as policy goals take shape”. Pittsburgh Gazette.