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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

Libya takes on Goldman Sachs

Posted on 17 February 2014 by VRS  |  Email |Print

A year ago, I reported for Euromoney magazine that the Libyan Investment Authority was preparing litigation against Goldman Sachs for disastrous trades the American bank had put the Libyan sovereign wealth fund into in early 2008.
Nothing happens fast in Libya, and the top management of the fund has changed since our story. But on January 28, its lawyers lodged a claim at London’s High Court, accusing Goldman of “deliberately exploit[ing] the relationship of trust and confidence it has established with the LIA.”……………………………………….Full Article: Source

Libya vs Western bankers

Posted on 13 February 2014 by VRS  |  Email |Print

Late last month, Libya’s sovereign wealth fund sued the global investment bank Goldman Sachs at London’s High Court. It is alleged that the fund lost in excess of 1 billion US dollars in 2008 through poor investments advised by Goldman, which denies the allegations.
Prior to the 2011 uprisings, the Libyan Investment Authority (LIA) was often portrayed by the international media as one of the few instances of true modernization occasioned by Gaddafi’s détente with the West. It had offices in London and its chairman, Mohamed Layas, was about as seasoned a technocrat as the Libyans had to offer………………………………………..Full Article: Source

Putting Permanent Fund dividend in the Constitution could be harmful in a shortfall

Posted on 10 February 2014 by VRS  |  Email |Print

Legislators get paid to make decisions. We expect them to make not only the small ones but also the big ones. With that in mind, the idea of cementing the annual Alaska Permanent Fund dividend program in the state Constitution to prevent legislators from steering money away from it for other purposes is a bad idea. But that’s what House Joint Resolution 17 would do.
The Permanent Fund itself is a part of the Alaska Constitution. Voters overwhelmingly approved it in 1976, adding Section 15 to Article IX…………………………………..Full Article: Source

APC legislators ask court to declare Excess Crude Account illegal

Posted on 07 February 2014 by VRS  |  Email |Print

The leadership of the All Progressives Congress (APC) in the House of Representatives has filed an originating summon at a Federal High Court, Abuja challenging the legal status of the excess crude oil account.
The suit, no.FHC/ABJ/CS/30/2014, was filed January 22 by legal counsel, Mr. Yemi Candide-Johnson (SAN), on behalf of the plaintiff: the House Minority Leader, Femi Gbajabiamila; and others who asked the court for the proper interpretation of Section 162 of the 1999 Constitution………………………………………..Full Article: Source

Proposed amendment seeks to protect Alaska Permanent Fund dividends

Posted on 07 February 2014 by VRS  |  Email |Print

A proposal by House Democrats to provide constitutional protection for the Alaska Permanent Fund - which provides the yearly check Alaskans receive for their share of state’s oil wealth - got a cool response Thursday from some majority members, who indicated it could limit the options lawmakers have if the state falls on tough financial times.
House Speaker Mike Chenault, R-Nikiski, said legislatures have shown restraint since the Permanent Fund was enacted, but he said blocking off dividends would provide fewer choices if state government exceeded its available revenues………………………………………..Full Article: Source

Credit Suisse, Abu Dhabi fund calls probes, launch arbitration efforts to exit from $35M investment in Mongolian bank

Posted on 05 February 2014 by VRS  |  Email |Print

Documents reviewed by Bloomberg News revealed that Credit Suisse Group AG and the sovereign wealth fund of Abu Dhabi has launched strategic steps to exit from its $35 million investment in Mongolia. The investors, betting on the promise of the Central Asian country’s $1.3 trillion mineral wealth, offered Golomt Bank LLC funds in convertible loans beginning 2007.
Under the terms of the agreement, Credit Suisse and the Abu Dhabi Investment Council were set to obtain shares as part of a proposed initial public offering in one of the biggest lenders in Mongolia within five years of each deal. Moreover, the loan agreements, as reviewed by the news agency, required Golomt to provide audited financial statements promptly to the investors………………………………………..Full Article: Source

U.S. said to probe banks over sovereign wealth fund deals

Posted on 04 February 2014 by VRS  |  Email |Print

The U.S. Justice Department is investigating whether financial firms made improper payments to secure investments from sovereign wealth funds, according to two people familiar with the matter.
The probe, which grew out of a Securities and Exchange Commission inquiry, looks at firms including Goldman Sachs Group Inc. that sought business from Libya’s sovereign wealth fund before Muammar Qaddafi’s regime was toppled in 2011, said one of the people, who asked not to be identified because the investigation isn’t public………………………………………..Full Article: Source

DOJ probes finance firms’ dealings with Libya: WSJ

Posted on 04 February 2014 by VRS  |  Email |Print

The U.S. Department of Justice is investigating banks, private equity firms and hedge funds that may have violated anti-bribery laws in their dealings with Libya’s government-run investment fund, the Wall Street Journal reported, citing people familiar with the matter. Federal investigators are examining Goldman Sachs Group Inc, Credit Suisse Group AG, JPMorgan Chase & Co, Societe Generale, private equity firm Blackstone Group and hedge fund Och-Ziff Capital Management Group LLC, the Journal said.
The Libyan Investment Authority (LIA) invested up to $1 billion in funds run by all the firms under scrutiny except Blackstone, according to a 2010 audit of the sovereign wealth fund by KPMG, the Journal said………………………………………..Full Article: Source

Zimbabwe: Minister Chinamasa tables SWF bill

Posted on 03 February 2014 by VRS  |  Email |Print

Finance Minister Patrick Chinamasa yesterday tabled the Sovereign Wealth Fund of Zimbabwe Bill in the National Assembly. The Bill seeks to establish a fund administered by a board whose objective is to secure investments for the benefit and enjoyment of future generations.
The Bill was read for the first time and National Assembly speaker, Cde Jacob Mudenda, referred it to the Parliamentary Legal Committee which scrutinises all proposed legislation to ensure it is consistent with the Constitution………………………………………..Full Article: Source

Libya sues Goldman for making profit from failed deals

Posted on 03 February 2014 by VRS  |  Email |Print

Libya’s sovereign wealth fund is suing banking giant Goldman Sachs for “deliberately exploiting” its position to make $350 million profit on $1 billion worth of failed derivative trades, London’s High Court announced on Thursday.
The Libyan Investment Authority (LIA), which was set up in 2006 to handle the country’s oil revenues, accuses the investment bank of gaining the “trust and confidence” of its inexperienced managers, before advising them to enter into “inadequately documented” derivative trades into companies including Citigroup, EdF, Santander and ENI. The nine deals, totalling $1 billion, were entered into in early 2008 but turned sour during the financial crisis, according to details made available by the High Court on Thursday……………………………………….Full Article: Source

Libya’s sovereign wealth fund to sue Goldman over $1bln trades

Posted on 31 January 2014 by VRS  |  Email |Print

Libya’s sovereign wealth fund has taken formal legal action in London against Goldman Sachs over allegations that the investment bank “exploited” the fund’s limited financial experience, forcing it into risky and ultimately lossmaking investments.
The claim, made in legal papers submitted by the Libyan Investment Authority on Thursday, rests on disputed equity derivatives trades amounting to in excess of $1bn………………………………………..Full Article: Source

Abu Dhabi fund part of lawsuit against Norway government

Posted on 31 January 2014 by VRS  |  Email |Print

Abu Dhabi is part of a group of investors in Norway’s offshore gas pipeline system who have filed lawsuits against the Oslo government over a plan to reduce tariffs for using the network, a move which would dramatically reduce the estimated return on investment.
Companies representing several international investment funds, such as the Abu Dhabi Investment Authority, the Canadian Pension Fund and German insurer Allianz, have spent $5.1 billion in recent years acquiring stakes in Norwegian pipelines, then considered a solid investment bet………………………………………..Full Article: Source

Zimbabwe: SWF Bill crucial for long-term economic development: AAG

Posted on 31 January 2014 by VRS  |  Email |Print

Affirmative Action Group Manicaland chapter has applauded the recently gazetted Sovereign Wealth Fund Bill as a key measure to support the future macro-economic stabilisation programmes by Government, including long-term economic and social development objectives.
Government on January 10 gazetted the Sovereign Wealth Fund Bill which is set to be tabled in Parliament for debate. The Bill seeks to establish a fund to be administered by a board whose objective is to secure investments to support the developmental objectives of the Government………………………………………..Full Article: Source

Min Chinamasa tables SWF Bill

Posted on 31 January 2014 by VRS  |  Email |Print

Finance Minister Patrick Chinamasa tabled the Sovereign Wealth Fund of Zimbabwe Bill in the National Assembly. The Bill seeks to establish a fund administered by a board whose objective is to secure investments for the benefit and enjoyment of future generations.
The Bill was read for the first time and National Assembly speaker, Cde Jacob Mudenda, referred it to the Parliamentary Legal Committee which scrutinises all proposed legislation to ensure it is consistent with the Constitution………………………………………..Full Article: Source

GIC sues Merck over fraudulent share prices

Posted on 31 January 2014 by VRS  |  Email |Print

GIC has filed a fraud claim against one of the world’s largest drug companies, claiming it misled the market on two statin drugs, pushing the price of the stocks up as a result. In particular, GIC has accused Merck and subsidiary Merck-Schering-Plough, the makers of cholesterol-lowering drugs Zetia and Vytorin, of failing to tell the market about the “unqualified disaster” results of clinical trials, which found both drugs had no additional benefit to slowing the progression of arteries being clogged up by high cholesterol levels.
The case relates to a 15-month investment period between December 6, 2006 and March 28, 2008, during which GIC bought millions of shares in Merck, according to court documents filed at New Jersey’s district court………………………………………..Full Article: Source

Singapore’s GIC sues Merck and Schering-Plough

Posted on 29 January 2014 by VRS  |  Email |Print

The Government of Singapore Investment Corporation Pte Ltd (now known as GIC Private Limited), one of Singapore’s sovereign wealth funds, bought millions of shares in Schering-Plough Corporation common stock through both self-managed and externally managed accounts. Schering-Plough was a U.S. pharmaceutical company, until its merger with Merck on November 3, 2009.
The GIC is being represented by NY-based law firm Kirby McInerney LLP. The GIC is suing Schering-Plough and Merck, alleging the Schering stock purchases were at artificially inflated prices as a result of the pharmaceutical’s misconduct………………………………………..Full Article: Source

Allianz, Abu Dhabi Fund’s Solveig sues Norway in tariff dispute

Posted on 28 January 2014 by VRS  |  Email |Print

Three more owners of Norway’s gas-pipeline network, including a company backed by Allianz SE (ALV) and Abu Dhabi’s wealth fund, sued the government over tariff cuts they say will reduce income by about $6.5 billion.
Solveig Gas Norway AS, which is also backed by the Canada Pension Plan Investment Board, filed a writ of summons to start legal proceedings against the Norwegian Ministry of Petroleum and Energy, the company said in a statement today. Infragas Norge AS and Silex Gas Norway AS, which also own stakes in the pipeline network, are part of the lawsuit, Infragas Chief Executive Officer Knud Noerve said………………………………………..Full Article: Source

What was Goldman Sachs doing with Libya’s options bets?

Posted on 24 January 2014 by VRS  |  Email |Print

If you more or less believe in the fundamental efficiency — that is, randomness — of markets, a lot of things get a lot easier. For instance you take losses more philosophically. If you lose money on an investment, that is not a sign that you should double down to make it back, nor is it a sign that you should stop investing altogether.
It is a sign that a weighted random number generator has produced some random numbers and now one of those numbers lives in your bank account. Later more numbers will be produced, but you cannot make them bigger numbers just by wishing for it to be so, or by yelling about it, or by filling your days with stress and lawsuits………………………………………..Full Article: Source

Libyan Investment Authority sues Goldman Sachs in London

Posted on 23 January 2014 by VRS  |  Email |Print

The Libyan Investment Authority, the north African nation’s sovereign wealth fund, sued Goldman Sachs Group Inc. in the U.K. over investments worth more than $1 billion.
“Goldman Sachs abused the relationship of trust and confidence with the then newly-formed LIA, being the sovereign wealth fund of the Libyan people,” a spokesman for the fund, who declined to give his name in line with company policy, said. The fund suffered “significant losses.”…………………………….Full Article: Source

Zimbabwe gives official seal to sovereign fund

Posted on 23 January 2014 by VRS  |  Email |Print

Zimbabwe on Tuesday officially tabled its Sovereign Wealth Fund (SWF) which will use the proceeds of royalties from gold, platinum, nickel and diamonds and invest them in “gold bullion, stockpiles of precious stones”, as well as other “foreign assets”.
Zimbabwe’s Chamber of Mines said about 75% of the country’s gold miners will collapse if the royalties are not reviewed. Platinum producers in Zimbabwe have submitted plans to set-up a refinery to avoid a further 15% levy on raw platinum exports. Mining industry sources and executives said on Tuesday that they were still pressing the government to review the royalties downwards……………………………..Full Article: Source

Zimbabwe to invest sovereign fund in minerals

Posted on 23 January 2014 by VRS  |  Email |Print

A bill outlining the full development of Zimbabwe’s sovereign wealth fund was tabled in parliament on Tuesday. The fund will now be invested in gold bullion and stockpiles of precious stones.
Mining companies in the country will contribute to the fund through royalties on gold, diamonds, nickel, platinum, coal and coal methane gas. Analysts said the fund was a workable idea although they raised concern regarding the increased focus on mining to boost government revenue and economic projects……………………………..Full Article: Source

Macquarie in box seat for CIC deal

Posted on 21 January 2014 by VRS  |  Email |Print

A block trade by the China Investment Corporation of its $800 million stake in the industrial property developer Goodman Group could be imminent, according to talk in the market, with some speculating that the investment banks are likely to be vying for an advisory role to the sovereign wealth fund on the deal.
A likely frontrunner to secure the advisory role would be Macquarie Group, which has previously worked on major deals for Goodman, should a block trade proceed. According to a note by JPMorgan’s sales team, investors are betting CIC’s trade of its 9.8 per cent interest in the business is a high probability……………………………………….Full Article: Source

Israel approves the creation of a sovereign wealth fund

Posted on 20 January 2014 by VRS  |  Email |Print

The creation of a sovereign wealth fund in Israel was approved on Wednesday by the Knesset Science and Technology Committee. The bill included an additional detail stipulating that the special committee in charge with managing the fund’s budget will be led by the Knesset House Committee Chairman.
The creation of the sovereign wealth fund is essential to prevent the eventual negative repercussions of a substantial inflow of revenues from the sale of natural gas to export markets. The phenomenon is commonly known as ‘Dutch Disease’ and is one of the negative effects of an energy boom. The increase of wealth could cause a strengthening of the local currency - the Shekel - to the detriment of other industries that could lose in competitiveness………………………………………..Full Article: Source

Israel: Science and Technology Committee approves gas wealth fund

Posted on 16 January 2014 by VRS  |  Email |Print

The Knesset Science and Technology Committee on Wednesday approved the creation of a sovereign wealth fund intended to offset moentary repercussions of new gas exports and invest the resources for Israel’s citizens. The export of natural resources, such as gas, can lead to an influx of foreign currency, strengthening the local currency and making the country’s other goods less attractive on world markets.
Sovereign Wealth Funds can offset the phenomenon, known as “Dutch Disease,” by setting that money aside and strategically investing it over a long period of time. It can also help the government distribute the wealth from the resource to the population by channeling it toward public goods like education and infrastructure………………………………………..Full Article: Source

Citi v Abu Dhabi – Will it ever end?

Posted on 14 January 2014 by VRS  |  Email |Print

Two of the largest financial institutions in the world may again be heading back to court as one of the most toughly fought battles since the financial crisis began looks set for another round. On December 23 last year, Citigroup lodged an appeal against a decision that had been handed down on November 26. This decision had gone against the bank, which had appealed against a previous decision to dismiss an earlier claim and compelled arbitration between it and the Abu Dhabi Investment Authority (ADIA).
Citi had lodged the appeal to the United States Courts of Appeals for the Second Circuit, according to publically available documents. There has been no published indication as to whether this appeal has been granted………………………………………..Full Article: Source

Shareholders of Indonesia’s Bumi approve CIC debt deal

Posted on 13 January 2014 by VRS  |  Email |Print

Shareholders of Indonesia’s Bumi Resources, Asia’s biggest thermal coal exporter, approved a crucial $1.3 billion debt-for-equity swap deal with China’s sovereign wealth fund, CIC, even without the presence of its largest owner.
Only one-third of shareholders were required to approve the deal after the Indonesian company delayed a previous vote from Dec. 20. “I hope the deal will be final before Chinese New Year, this month,” Andrew Beckham, a director at Bumi Resources, said………………………………Full Article: Source

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