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Australian Super backtracked on airport valuation: Future Fund

Posted on 02 July 2014 by VRS  |  Email |Print

The Future Fund has accused AustralianSuper of backtracking on its own valuation of the Perth Airport, a dispute which is at the heart of the legal case one of the country’s biggest superannuation funds is waging against Australia’s sovereign wealth fund. According to the defence the Future Fund has lodged with the Supreme Court of Victoria, AustralianSuper had previously agreed with the now disputed valuation and it believes AustralianSuper may be pursuing the legal action in a bid to achieve a commercial settlement.
A spokesperson for the Future Fund told Financial Standard that the “Future Fund is pleased to have finally been provided with the opportunity to lodge its defence with the Victorian Supreme Court. We have consistently and strongly maintained that Future Fund has acted appropriately at all times, and we totally reject the allegations of wrongful conduct that have been made. “Future Fund remains confident in its position and will vigorously defend this matter.”……………………………………….Full Article: Source

China’s CIC Vows to Improve Management After Irregularities Uncovered

Posted on 20 June 2014 by VRS  |  Email |Print

China Investment Corp., the nation’s sovereign-wealth fund, said Thursday that it plans to improve the management of its overseas investments after it was publicly criticized by the government’s auditing agency for a string of irregularities that led to unspecified losses.
China’s National Audit Office said Wednesday that CIC was found to have management shortcomings that resulted in overseas losses on six projects between 2008 and 2012. The extent of the losses wasn’t given. The auditing agency blamed the losses at CIC on dereliction of duty by management, insufficient due diligence and poor post-investment management……………………………………….Full Article: Source

$5b-plus irregularities at China fund, banks

Posted on 20 June 2014 by VRS  |  Email |Print

Irregularities amounting to more than $5 billion have been found at China’s sovereign wealth fund and two large state-owned banks, according to the state auditor, offering a glimpse into the opaque management of government-controlled firms.
China Investment Corporation (CIC), Bank of China and Agricultural Development Bank of China violated regulations in areas including asset selling, loan issuance and fraudulent invoicing, according to the National Audit Office (NAO). “The audit found CIC breached rules on overseas investment and risk control, domestic subsidiaries operation and financial management,” the NAO said in a statement………………………………………..Full Article: Source

Closer Look: Audit of CIC Shows Its Corporate Governance Must Be Enhanced

Posted on 20 June 2014 by VRS  |  Email |Print

China Investment Corp. (CIC), the country’s US$ 575 billion sovereign wealth fund, has been blamed by the state auditor for flaws in its management of both domestic and overseas investment projects, leading to losses. On June 18, the National Audit Office issued a report on CIC’s operations in 2012. It criticized CIC for a series of irregularities in investment assessments, subsidiary operations, and personnel and financial management.
Internal and external supervision are crucial for a sovereign wealth fund like CIC. The auditor’s report rings the alarm and should prompt the sovereign wealth fund to reexamine itself. However, assessing the investment performance of a sovereign wealth fund is not straightforward………………………………………..Full Article: Source

Chinese sovereign wealth fund mismanaged investments

Posted on 19 June 2014 by VRS  |  Email |Print

China Investment Corp failed to conduct adequate due diligence on overseas investments which led to losses, the mainland’s auditor finds. The mainland’s US$575 billion sovereign wealth fund mismanaged some of its overseas investments between 2008 and last year that led to losses, the National Audit Office said yesterday without specifying the size of the loss.
It said some employees of China Investment Corp (CIC) did not conduct adequate due diligence before investing in 12 overseas projects in the past six years. And they subsequently also failed to track the performance of those investments, it said………………………………….Full Article: Source

Auditor blames CIC

Posted on 19 June 2014 by VRS  |  Email |Print

Mismanagement at China Investment Corp, the nation’s US$575 billion sovereign wealth fund, led to overseas investment losses that could widen, according to the National Audit Office.
A dereliction of duty by managers and inadequate due diligence and post- investment management were identified in 12 investments made abroad by the fund between 2008 and 2013, according to results of an audit conducted last year. Six of the deals were unprofitable, four of them had unrealized losses, and two may potentially lose money. The report released yesterday did not name the investments or disclose their size………………………………….Full Article: Source

China Audit Found Irregularities at Wealth Fund, Two State Banks

Posted on 19 June 2014 by VRS  |  Email |Print

China’s government auditing agency said Wednesday that last year it found financial irregularities at two big state banks and the nation’s sovereign-wealth fund and that all three need to tighten their management.
The National Audit Office said it had uncovered management failures related to investments at China Investment Corp., the country’s sovereign-wealth fund, as well as irregular lending at Bank of China Ltd and Agricultural Development Bank of China.The auditor said that CIC and the state banks had largely addressed the problems as of May………………………………….Full Article: Source

CCI gives green signal to Amex-Qatar Holding joint venture

Posted on 19 June 2014 by VRS  |  Email |Print

Fair trade watchdog CCI has approved the proposed joint venture between American Express and Juweel Investors, part of sovereign wealth fund Qatar Holding, saying the deal is unlikely to have an adverse impact on competition in India.
Under the deal, American Express’ global business travel services, which also has India presence, would be transferred to the new joint venture — GBT III B V. The joint venture is between American Express and Juweel — a special purpose vehicle set up by Qatar Holding and certain other investors. “The Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India,” CCI said in an order………………………………….Full Article: Source

Indonesian coal miner Bumi gets lender approval for CIC deal

Posted on 12 June 2014 by VRS  |  Email |Print

Indonesian coal miner PT Bumi Resources said on Wednesday its lenders had agreed to close a crucial debt-to-equity swap with Chinese sovereign wealth fund CIC, enabling it to pay the coupon on its 2016 bonds.
In October, CIC agreed to convert the $1.3 billion debt it was owed by Bumi Resources into stakes in the Indonesian company and associated subsidiaries………………………………………..Full Article: Source

Norway fund RM2.15 TRILLION, Malaysia’s RM12.67 billion: Nurul calls for set-up of transparency panel to oversee O&G wealth

Posted on 12 June 2014 by VRS  |  Email |Print

The Prime Minister Should Adopt A Malaysian Extractive Industries Transparency Initiative (EITI) For Better Oversight and Governance Over Petroleum Revenues. For example, whilst 1 Malaysia Development Berhad (1MDB)’s RM5.8 billion loan is guaranteed by the government, the fund – formerly a sovereign wealth fund called the Terengganu Investment Authority set up in 2008 and backed by petroleum royalties due to the state from the Federal government - lacks the transparency and disclosure mechanisms necessary to generate and develop public confidence in its management.
Norway is one such country, having set up the Government Pension Fund – Global (previously known as The Petroleum Fund of Norway) in 1990 into which surplus wealth from petroleum income was to be deposited in order to counter the effects of an anticipated decline in income………………………………………..Full Article: Source

Kazakh Wealth Fund Calls Alliance Bank Creditors to Save Lender

Posted on 02 June 2014 by VRS  |  Email |Print

Kazakhstan’s sovereign wealth fund urged creditors of Alliance Bank to support its proposed debt restructuring, saying the lender may otherwise face bankruptcy at the hands of regulators.
Alliance Bank, seeking to overhaul its debt for a second time since 2010, is “in a critical financial situation,” Yelena Bakhmutova, a deputy chief executive officer at sovereign wealth fund Samruk-Kazyna, said today by phone from the Kazakh capital Astana. “We are not ready to save Alliance Bank alone,” she said…………………………………..Full Article: Source

Singapore PM demands apology from blogger on GIC post

Posted on 20 May 2014 by VRS  |  Email |Print

Singapore Prime Minister Lee Hsien Loong has demanded an apology from a local blogger for a posting seen as accusing him of corruption. Lawyer Davinder Singh wrote to Roy Ngerng Yi Ling on Sunday asking him to take down the original article as well as the links posted on his Facebook pages and to post an apology by Wednesday.
Singh said the allegations by Ngerng in his May 15 blog post were “false and baseless”. “The article means and is understood to mean that Mr Lee Hsien Loong, the Prime Minister of Singapore and the chairman of GIC, is guilty of criminal misappropriation of the monies paid by Singaporeans to the CPF (Central Provident Fund),” Singh wrote in the letter. GIC is a sovereign wealth fund that manages more than $100 billion of the city-state’s foreign reserves. CPF is the state pension fund……………………………………..Full Article: Source

Chile wealth fund advisor slams government pension fund plan

Posted on 19 May 2014 by VRS  |  Email |Print

Economist and a senior advisor at Chile’s sovereign wealth fund casts doubt on the rationale behind the new government’s plans for a state competitor to the private pension funds. A senior figure in Chile’s sovereign wealth fund has called the Chilean government’s plan for a new state-backed pension provider “a very bad idea”.
The new Chilean government, which assumed office as president on 11 March, plans to introduce a state-backed pension provider to compete with private pension administrators, in what could be the biggest shake-up of the country’s pension system for more than a decade…………………………………..Full Article: Source

Give SWF Constitutional Foundation

Posted on 19 May 2014 by VRS  |  Email |Print

During a presentation to the National Conference Committee on Public Revenue and Finance, the Central Bank of Nigeria (CBN) suggested that the Sovereign Wealth Fund (SWF) be included in the country’s constitution. The fund has been mired in controversy because it is clandestinely used as a substitute for the Excess Crude Account (ECA) to provide long-term savings for economic stabilisation, development of infrastructure and generational equity.
The governors of the 36 states have contended that such a move is unknown to law and are asking the Supreme Court to truncate the attempt by the federal government to withdraw $2 billion from the ECA for investment in the SWF. The governors had alleged that from the $20 billion in the account in 2008, the federal government had depleted it to $3.7 billion…………………………………..Full Article: Source

Parliament discuss Kuwaiti SWF overseas investments

Posted on 15 May 2014 by VRS  |  Email |Print

The National Assembly is currently holding a closed-door session to discuss Kuwait’s foreign investments with the state sovereign fund, Kuwait Investment Authority. Speaker Marzouq Al-Ghanim ordered the main meeting hall to be cleared out of visitors as per the request of Finance Minister Anas Al-Saleh on Wednesday after the parliament had agreed a day earlier to hold two-hour talks on the matter.
KIA is expected to present a detailed report on its activities to the lawmakers, the minister had earlier informed the parliament. The report will highlight assessments, analyses, investment decisions, strategies, adopted procedures, performance and the revenue accumulated by the Kuwaiti sovereign fund………………………………………..Full Article: Source

Barclays Ex-CEO Diamond Facing Questioning Over Qatar Deal

Posted on 13 May 2014 by VRS  |  Email |Print

U.K. prosecutors will question Robert Diamond, former chief executive officer of Barclays Plc (BARC), in a probe into fees paid to Qatar’s sovereign-wealth fund as the bank sought to raise money to avoid a government bailout, according to a person familiar with the matter.
The investigation centers on 322 million pounds ($544 million) the London-based bank paid the Qatar Investment Authority as it was raising 7 billion pounds in 2008 from investors, including the Qataris, during the financial crisis. Diamond was head of Barclays’s investment bank at the time of the fundraising………………………………………..Full Article: Source

Banks’ FCPA lessons from Libya

Posted on 13 May 2014 by VRS  |  Email |Print

Regulatory scrutiny has increased FCPA risks for private equity and hedge funds in their dealings with sovereign wealth funds.
The US Department of Justice (DoJ) and Securities and Exchange Commission (SEC) are openly targeting the financial industry, and in particular private equity firms and hedge funds, in enforcing the Foreign Corrupt Practices Act (FCPA). Their focus has intensified in recent months……………………………………….Full Article: Source

CBN’s quest for constitutional backing for SWF

Posted on 12 May 2014 by VRS  |  Email |Print

The Central Bank of Nigeria (CBN), a few days ago, reopened the de­bate on the legality, or otherwise, of the Sovereign Wealth Fund (SWF) when it sought the assistance of the Public Finance Committee of the ongoing National Conference for a full constitutional provision for the fund.
The establishment of the fund by President Goodluck Jonathan in 2012 to replace the Excess Crude Account (ECA) has been a contentious legal issue that has split the Federal Government and state governors………………………………………..Full Article: Source

CBN Calls for Inclusion of Sovereign Wealth Fund in the Constitution

Posted on 08 May 2014 by VRS  |  Email |Print

The CBN has suggested to the National Conference Committee on Public Revenue and Finance to ensure that the country’s Sovereign Wealth Fund (SWF) is included in the constitution. The acting Governor of CBN, Serah Alade, who was represented by Deputy Governor, Corporate Services, Alhaji Suleman Barau, gave the advice during a presentation to the committee yesterday in Abuja.
According to the News Agency of Nigeria (NAN), Alade said the fund was intended to replace the Excess Crude Account (ECA), in order to provide long term savings for economic stabilisation, development of infrastructure and generational equity………………………………………..Full Article: Source

Nigeria: CBN wants constitutional backing for Sovereign Wealth Fund

Posted on 07 May 2014 by VRS  |  Email |Print

The Central Bank of Nigeria (CBN), on Tuesday, lauded the establishment of the Sovereign Wealth Fund (SWF), but called for full constitutional provision for tue fund. The country’s apex bank said it was necessary for Nigeria “to save for the rainy day.”
Acting Governor of CBN, Dr Sarah Alade, while appearing before the national conference committee on public finance, which invited her for a chat, justified the establishment of the fund, saying it was necessary to invest in the future. She also advocated the creation of the office of Accountant-General for Federal Government, which would be separated from the existing office of the Accountant-General of the federation(AGF)………………………………………..Full Article: Source

Libya’s Sovereign Wealth Fund Looks Forward… And Back, At Goldman Sachs

Posted on 05 May 2014 by VRS  |  Email |Print

Earlier this year the Libyan Investment Authority commenced litigation against Goldman to try to recover up to US$1.3 billion of losses the fund incurred because of equity derivatives sold by the US bank in 2008.
But Goldman is also being investigated by the Securities and Exchange Commission and Department of Justice because of efforts it is alleged to have made to help redress those losses, through a proposed $50 million payment through an Amsterdam-based and Libyan-controlled institution called Palladyne. The circumstances are complicated; follow the link at the top to the Euromoney article to see more, and to learn about a memo at the heart of the DOJ’s case………………………………………..Full Article: Source

Formula One backlash haunts Norway wealth fund as hearing starts

Posted on 24 April 2014 by VRS  |  Email |Print

Norway’s $850 billion sovereign wealth fund needs to prepare its arguments to persuade lawmakers it can handle an expansion into private equity after an investment in Formula One backfired.
Yngve Slyngstad, the fund’s chief executive officer, and central bank Governor Oeystein Olsen, who oversees the fund, have been summoned to testify tomorrow at a Finance Committee hearing at the Oslo parliament………………………………………..Full Article: Source

Goldman Sachs to seek early dismissal of Libya Wealth Fund suit

Posted on 22 April 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc. (GS) will seek to have a $1 billion lawsuit by the Libyan Investment Authority thrown out before trial. The bank will ask a London judge to decide whether the case has a realistic chance of success and issue a so-called summary judgment, according to court documents released this week.
Libya’s sovereign wealth fund says Goldman made about $350 million selling investments that turned out to be worthless. The LIA said in a statement it “considers this application to be misconceived and looks forward to full and proper determination of all issues by the English court.”……………………………………….Full Article: Source

Libya goes head to head with SocGen in $1.5 bln lawsuit

Posted on 17 April 2014 by VRS  |  Email |Print

The Libyan Investment Authority (LIA) has filed a $1.5 billion lawsuit against Société Générale (SocGen), claiming the French investment bank helped channel bribes worth tens of millions of dollars to associates of Saif al-Islam, the son of the former Libyan dictator Muammar Gaddafi.
The LIA, a $60 billion fund set up to invest the country’s vast oil wealth, alleges that SocGen fraudulently paid over $58 million to a company called Leinada for “advisory services”. These services related to $2.1 billion of derivatives trades that the LIA entered into with SocGen between 2007 and 2009………………………………………..Full Article: Source

1MDB’s accounts finally submitted

Posted on 16 April 2014 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) has submitted its long-awaited accounts for the financial year ended March 31, 2013 on April 9, according to the Companies Commission of Malaysia (SSM). “1MDB has submitted the company’s annual return together with the audited financial statement for the financial year ended March 31, 2013 on April 9, 2014,” SSM said.
“As such, 1MDB has complied with the requirement of section 165(4) Companies Act 1965 (Act 125) which requires company to submit its annual return within one month after the annual general meeting (AGM),” it added………………………………………..Full Article: Source

Bill would let landlords garnish Permanent Fund dividends

Posted on 11 April 2014 by VRS  |  Email |Print

Landlords would be entitled to garnish the Permanent Fund dividends of renters under a bill approved by a House committee. House Bill 282 updates the Alaska Landlord and Tenant Act for the first time in decades.
The House Judiciary moved the bill Wednesday to the full House. It would have to be passed by both the House and Senate before the legislative session ends April 20 to become law. Among other things, the bill allows landlords to garnish the PFDs of tenants to cover repairs that cost more than the renter’s security deposit………………………………………..Full Article: Source

Gaddafi’s successors find fault with another of his banks

Posted on 03 April 2014 by VRS  |  Email |Print

Libya’s sovereign wealth fund has filed a $1.5 billion (£901.87 million) lawsuit against Societe Generale, accusing it of funnelling bribes worth tens of millions of dollars to associates of Saif al-Islam, the son of former Libyan leader Muammar Gaddafi.
“Societe Generale contests the unfounded allegations in the Libyan Investment Authority’s (LIA) complaint,” a spokeswoman for France’s second-biggest bank said in an emailed statement, without giving more details……………………………….Full Article: Source

RBA questions super fund infra investment

Posted on 03 April 2014 by VRS  |  Email |Print

The Reserve Bank of Australia (RBA) has questioned the role of superannuation funds boosting funding for infrastructure investment, saying that it is not appropriate to mandate funds to invest in assets to meet “broader national objectives.”
In its submission to the Financial System Inquiry (FSI), the central bank said that rather than superannuation funds being forced to invest in infrastructure assets, trustees should manage their investments with the member in mind. “The bank does not support suggestions that investment allocations could be imposed to meet funding targets for certain sectors and/or asset classes. Superannuation assets should be managed in the best interests of their members,” the submission said…………………………….Full Article: Source

Libya in $1.5bln law suit over bribes to Gaddafi son

Posted on 02 April 2014 by VRS  |  Email |Print

Libya’s sovereign wealth fund has filed a $1.5bn lawsuit against Societe Generale, accusing it of funnelling bribes worth tens of millions of dollars to associates of Saif Al Islam, the son of former Libyan leader Muammar Gaddafi.
“Societe Generale contests the unfounded allegations in the Libyan Investment Authority’s (LIA) complaint,” a spokeswoman for France’s second-biggest bank said in an emailed statement, without giving more details……………………………..Full Article: Source

Libya fund accuses Société Générale of fraud

Posted on 02 April 2014 by VRS  |  Email |Print

French bank Société Générale paid a middleman $58 million in alleged bribes to secure almost $2 billion in business from Libya’s main sovereign-wealth fund during the final years of dictator Moammar Gadhafi’s rule, according to a lawsuit filed by the fund, the Libyan Investment Authority.
The fund is suing Société Générale in London for restitution of money lost in deals completed between 2007 and 2009. It accuses the French bank of defrauding the institution through a series of complex financial derivative deals that were unprofitable for the LIA, according to new court documents filed last week. The new documents detail allegations in a suit filed earlier this month at London’s High Court……………………………..Full Article: Source

NEC demands details of spending on Excess Crude Account

Posted on 28 March 2014 by VRS  |  Email |Print

The National Economic Council (NEC) Thursday requested the federal government to give the details of the spending on Excess Crude Account (ECA) to the states. Governor Godswill Akpabio of Akwa Ibom State made this known after the NEC meeting presided over by the Vice-President Namadi Sambo in Abuja.
NEC, which is the highest economic decision-making body statutorily presided over by the vice-president with all state governors,had not been held in the last six months. Other members of the council include the Minister of the Federal Capital Territory (FCT), Attorney-General of the Federation and some ministers……………………………………Full Article: Source

Suit: Dutch firm laundered money for Libyan regime

Posted on 27 March 2014 by VRS  |  Email |Print

Palladyne International Asset Management BV was a “kickback and money laundering operation” for the former Libyan dictator Moammar Gadhafi’s regime, a former executive alleged in a lawsuit filed this week.
Palladyne is a focus of investigations into whether Goldman Sachs Group Inc. broke anticorruption laws in its dealings with the Libyan sovereign-wealth fund, said people familiar with the matter………………………………..Full Article: Source

Nigeria: SWF- FG, states’ out-of-court settlement collapses

Posted on 26 March 2014 by VRS  |  Email |Print

The federal government yesterday informed the Supreme Court that the out-of-court settlement with the 36 states of the federation over dispute arising from the maintenance of the Excess Crude Account and the transfer of $1 billion from the account to the Sovereign Wealth Fund (SWF) has collapsed.
After the apex court was told that talks between the parties involved in the matter had broken down, the presiding justice of Supreme Court (JSC) Walter Onnonghen set the case down for definite hearing on September 23, 2014………………………………..Full Article: Source

Nigeria court adjourns sovereign wealth fund suit

Posted on 26 March 2014 by VRS  |  Email |Print

The Supreme Court in Nigeria has been told that the out-of-court settlement between the Federal Government and the 36 states of the federation over the dispute arising from the maintenance of the Excess Crude Account and the transfer of one billion dollars from the account to the Sovereign Wealth Fund (SWF) has collapsed for the second time.
At the resumed hearing, counsel to the Federal Government, Austin Alegeh, told the court that settlement between parties have collapsed and in view of that brought an application requesting that the court should amend his statement of defence. Lawyer to the state governors, Mr Adegboyega Awomolo, however, told the court that the application filed by the Federal Government was only a ploy to delay the hearing of the suit………………………………..Full Article: Source

FG briefs Supreme Court on inability to settlement dispute over Excess Crude Account, Sovereign Wealth Fund with states

Posted on 26 March 2014 by VRS  |  Email |Print

The Federal Government on Monday briefed the Supreme Court about its inability to reach an amicable settlement with governors of the 36 states in the dispute over the maintenance of the Excess Crude Account and its plan to move $1 billion from the account for the establishment of the Sovereign Wealth Fund (SWF).
Lawyer to the Federal Government, Austin Alegeh told the court that the office of the Vice President, saddled with the co-ordination of the settlement meeting, briefed him that the settlement has failed to yield any desired result. The court had delayed hearing in the case to enable parties explore the out-of-court settlement option………………………………..Full Article: Source

Dubai Investments to lift foreign ownership cap to 35 pct

Posted on 24 March 2014 by VRS  |  Email |Print

Dubai Investments, a diversified manufacturer and investor in property, plans to increase the limit on foreign ownership of its shares to 35 percent of its total capital, the company said on Sunday.
Foreign investors now hold 13.7 percent of Dubai Investments’ shares out of the total 20 percent allowed, bourse data shows. The firm’s shareholders, including sovereign fund Investment Corp of Dubai which has an 11.5 percent stake, will vote on the proposal at a meeting on April 15, the company said………………………………………..Full Article: Source

Och-Ziff may have been a little too friendly with Gaddafi’s sovereign wealth fund

Posted on 21 March 2014 by VRS  |  Email |Print

Since it was restating its financials anyway after the SEC made it consolidate some CLOs, Och-Ziff Capital Management thought it might mention that the SEC (and Justice Dept.) is also interested in some bribery that may or may not have gone on before the Libyan dictator’s end.
Och-Ziff began receiving subpoenas from the Securities and Exchange Commission and requests for information from the Justice Department in 2011, the filing said. The hedge-fund operator said the investigation “concerns an investment by a foreign sovereign wealth fund in some of the Och-Ziff funds in 2007 and investments by some of the funds, both directly and indirectly, in a number of companies in Africa.”……………………………………….Full Article: Source

Och-Ziff warns over Libya probe by DoJ

Posted on 19 March 2014 by VRS  |  Email |Print

Och-Ziff, the hedge fund group, warned that it could face a hit to its financial results from a Department of Justice investigation into alleged corruption in Libya before the fall of Muammer Gaddafi.
The company revealed in a regulatory filing on Tuesday that the DoJ and the Securities and Exchange Commission were examining its relationship with the Libyan Investment Authority, the country’s sovereign wealth fund, and its investments in companies doing business in Libya………………………………………..Full Article: Source

Norwegian sovereign wealth adds to Morocco’s energy headache

Posted on 17 March 2014 by VRS  |  Email |Print

Adding to a growing chorus of concerned investors, Norway’s $850 billion Sovereign Wealth Fund announced that they would be reviewing their connection to France’s Total due to their involvement in exploration efforts in the Western Sahara region of Morocco.
Charged with investing Norway’s oil and gas revenue, the fund has made it a point to invest only in ethical companies, excluding controversial investments like tobacco, weapons and landmines, according to a recent Reuters report………………………………………..Full Article: Source

Amendments planned in 2014 budget of Azerbaijan State Oil Fund

Posted on 13 March 2014 by VRS  |  Email |Print

An appeal has been made to the Supervisory Board to make amendments in 2014 budget of Azerbaijan State Oil Fund, Executive Director of the State Oil Fund Shahmar Movsumov told journalists, APA-Economics reports.
He said the amendment envisages allocation of funds to form $51 million capital of the new company established to manage gas projects under the decree of Azerbaijani President. “These funds are not envisaged in the budget. But this is presented by the State Oil Fund as direct investment and is a long-term investment,” he said………………………………………..Full Article: Source

Societe Generale sued in U.K. by Libyan Investment Authority

Posted on 10 March 2014 by VRS  |  Email |Print

Societe Generale SA (GLE), France’s second-largest bank, was sued in the U.K. by the Libyan Investment Authority, after the sovereign-wealth fund sued Goldman Sachs Group Inc. in January over derivatives trades.
The claims against Societe Generale exceed $1.5 billion and involve derivative transactions that took place from 2007 to 2009, a spokesman for LIA, who asked not to be identified, said in an e-mailed statement………………………………………..Full Article: Source

Norway lawmakers have questions over F1 acquisition by SWF

Posted on 10 March 2014 by VRS  |  Email |Print

Norway’s $850 billion sovereign wealth fund, the world’s largest, must answer questions on its acquisition of a stake in Formula One, Norwegian parliamentarians said on Friday. The fund, which invests Norway’s oil and gas revenues, bought a $1.6 billion (£1b) stake in motor racing’s Formula One in May 2012, together with investors BlackRock and Waddell & Reed.
The call by politicians comes after the newspaper Dagens Naeringsliv questioned whether the fund violated its mandate by making the deal. The fund can only buy a stake in an unlisted company if the company plans an initial public offering. After the deal was made, a planned Formula One IPO was cancelled………………………………………..Full Article: Source

Zimbabwe’s wealth fund gets approval from parliament committee

Posted on 06 March 2014 by VRS  |  Email |Print

Zimbabwe’s Parliamentary Legal Committee said the country’s Sovereign Wealth Fund Bill doesn’t contravene the constitution, paving the way for the adoption of legislation that could see the fund allocated as much as a quarter of mining royalties.
The proposed legislation also recommends that the fund get a quarter of “special dividends” on state mineral and metal sales. It will mainly be used to pay for infrastructure development………………………………………..Full Article: Source

Alberta taps $1.1bln from Heritage Fund to fight poverty, aid agriculture

Posted on 05 March 2014 by VRS  |  Email |Print

The Alberta government is redirecting more than $1 billion from its Heritage Savings Trust Fund to set up endowments to fight poverty and aid agriculture. Premier Alison Redford says with the savings fund growing, it’s time to put some of the money to work helping Albertans and diversifying the economy.
The Social Innovation Fund will be capitalized with $500 million this year and another $500 million the next. It will explore ideas such as using the private sector to find new ways to eliminate poverty and family violence………………………………………..Full Article: Source

Oman: SGRF adopts whistle-blowing policy

Posted on 25 February 2014 by VRS  |  Email |Print

State General Reserve Fund (SGRF), the largest sovereign wealth fund of the government, has launched a ‘Whistle Blowing Policy’ aimed at encouraging the SGRF staff to report illegal practices and incidents that violate the rules of ethical behaviour at work and disclose any concerns directly related to SGRF and its operations.
The policy was launched on Sunday at the SGRF premises, during a two-day Risk and Compliance event organised with the aim of introducing the new policy to all the employees. The event was attended by H E Abdulsalam Mohammed al Murshidi, CEO, SGRF………………………………………..Full Article: Source

1MDB should be more transparent in corporate reporting, says anti-graft body

Posted on 24 February 2014 by VRS  |  Email |Print

1Malaysia Development Bhd’s failure to file its audited accounts for the financial year ending March 2013 with the regulators raises questions over its commitment to transparency in corporate reporting, Transparency International Malaysia (TI-M) said today.
1Malaysia Development Bhd, or 1MDB, is a government sovereign wealth fund. The anti-graft watchdog said in a statement that corporate activities should be reported in a timely manner, and must show accountability, accuracy and completeness in its records………………………………………..Full Article: Source

Abu Dhabi Investment Authority in New York court defeat

Posted on 21 February 2014 by VRS  |  Email |Print

Abu Dhabi Investment Authority (Adia) has suffered another setback in its legal battle over its investment in Citigroup. An appeals court in New York on Wednesday dismissed Adia’s attempt to nullify an arbitration award in Citigroup’s favour from October 2011.
Adia had appealed the court’s decision in March not to dismiss the arbitration award. The court’s summary order said that Adia had failed to meet the “high hurdle” of showing that the arbitration panel either exceeded their powers or had showed a “manifest disregard for the law” in ruling in Citigroup’s favour in the arbitration proceedings………………………………………..Full Article: Source

Court upholds Citigroup arbitration win over Abu Dhabi fund

Posted on 20 February 2014 by VRS  |  Email |Print

A U.S. appeals court on Wednesday rejected the Abu Dhabi Investment Authority’s effort to void Citigroup Inc’s arbitration win in a dispute over a $7.5 billion investment in the bank less than a year before the 2008 financial crisis.
The 2nd U.S. Circuit Court of Appeals in New York said the sovereign wealth fund did not meet the “high hurdle” of showing that an American Arbitration Association panel demonstrated a “manifest disregard of the law” or exceeded its powers in ruling for Citigroup………………………………………..Full Article: Source

GIC head explains the ’smart way’ to comply

Posted on 20 February 2014 by VRS  |  Email |Print

Keeping up with increasing compliance is of great concern to companies, and Singapore’s top sovereign wealth fund GIC Pte Ltd (formerly known as Government of Singapore Investment Corporation) is facing a similar challenge. But companies have to be careful not to let onerous rules hold them back, GIC group president Lim Siong Guan said at a plenary discussion yesterday.
“Compliance is a big challenge, the way I see GIC as a fund manager. And obviously, compliance is about making sure you follow the rules - and more so for GIC because it is the fund manager of the government and all our investments are in the name of the Singapore government, which means that there are other factors that we have to take into consideration, like reputational risks………………………………………..Full Article: Source

Italian state fund rejects accusations over private equity ‘distortion’

Posted on 18 February 2014 by VRS  |  Email |Print

The head of Italy’s €4bn state-backed investment fund has rejected accusations that backing from Rome is “distorting” the Italian private equity market for investors keen to tap resurgent interest in the eurozone’s third-largest economy.
The comments from Maurizio Tamagnini, chief executive of Fondo Strategico Italiano, come as the former banker prepares to finalise a €500m deal with the Kuwait Investment Authority. The KIA deal to invest in the Italian investment fund follows an agreement by the Qatar Investment Authority to invest up to €1bn in a dedicated FSI-run fund to acquire furniture, fashion and machinery that is “Made in Italy”………………………………………..Full Article: Source

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