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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

Zimbabwe: Sovereign wealth fund bill gazetted

Posted on 13 January 2014 by VRS  |  Email |Print

Government has gazetted the Sovereign Wealth Fund of Zimbabwe Bill and the Biological and Toxin Weapons Crimes Bill and these are set to be tabled in Parliament soon for debate. This comes as President Mugabe has published names of Cabinet ministers, deputy ministers and permanent secretaries and their ministries and portfolios in the Government Gazette.
The announcement, being done in terms of the Constitution, is meant to give legal effect to the heads of Government ministries appointed by the Head of State and Government and Commander-in-Chief of the Zimbabwe Defence Forces after he secured an overwhelming victory in the July 31 2013 harmonised elections………………………………Full Article: Source

Nigeria: House raises questions about SWF

Posted on 30 December 2013 by VRS  |  Email |Print

Barely two hours after she laid the 2014 budget proposals to the National Assembly, queries about the propriety of the Sovereign Wealth Fund (SWF), were on Thursday thrown at the Coordinating Minister of the Economy (CME), Dr Ngozi Okonjo-Iweala by the chairman of the House committee on finance, Dr Abdulmumini Jibrin.
The queries about the SWF were part of 50 questions the committee chairman had prepared for the minister. Titled: “State of the Economy”, part of the preamble to the committee’s questions by Jibrin was: “you will recall that the Committee on Finance had invited you to appear and make a comprehensive presentation on the state of the economy.”……………………………………….Full Article: Source

Volcker snags China sovereign wealth fund

Posted on 19 December 2013 by VRS  |  Email |Print

It looks like the Volcker Rule will force one of the world’s biggest investors in hedge funds, China Investment Corp., to exit many of its fund stakes. The sovereign wealth fund, which ranks second on Hedge Fund Alert’s roster of the largest fund investors, is a U.S. bank holding company by virtue of controlling stakes in large Chinese banks with operations in the States.
That means it is subject to Volcker Rule provisions barring banks from investing in hedge funds and private equity vehicles run by unaffiliated managers. Unless it restructures its bank holdings, or takes advantage of narrow exemptions in the final version of the rule regulators adopted last week, CIC would have to liquidate its stake in any fund managed by a U.S. firm, as well as vehicles run by non-U.S. managers with backers in the States………………………………………..Full Article: Source

Future Fund ready for AustralianSuper court battle

Posted on 13 December 2013 by VRS  |  Email |Print

The $92 billion Future Fund has reiterated that it will vigorously defend itself against legal action by the country’s biggest superannuation fund, the $70 billion AustralianSuper. The battle between two of Australia’s biggest investors is set for next week in the Victorian Supreme Court, after tussling for access to documents and several adjournments.
The dispute centres on the price the Future Fund paid for a stake in Perth Airport, in which AustralianSuper is also an investor. AustralianSuper claims the Future Fund priced it out of increasing its holding, by ascribing a premium of up to 43 per cent to the airport………………………………………..Full Article: Source

Angola: Finance minister calls for strict inspection of sovereign fund accounts

Posted on 13 December 2013 by VRS  |  Email |Print

The Minister of Finance, Armando Manuel, urged on Tuesday in Luanda, the public managers under the Angolan Sovereign Fund (FDSA), to be capable to inspect well the accounts of the institution. Armando Manuel spoke at the inauguration ceremony of the chairperson of the Angolan Sovereign Fund (FDSA) inspection council, Ary Nelson Brandão, and the head of the executive commission of Housing Fund, Edson Augusto dos Santos Vaz.
According to the Minister, the newly appoint officials must work with zeal in the perspective of compliance of activities, fulfilment of the objective for which the FDSA was specifically created, the monitoring of the accounts, procedures and functional practices………………………………………..Full Article: Source

Norway oil fund under lawmaker pressure to buy more in Africa

Posted on 10 December 2013 by VRS  |  Email |Print

Norway’s Christian Democrats, a key support party for the minority government, called on the nation’s sovereign wealth fund to steer more of its $810 billion in assets into Africa to reap better returns.
The party wants to set aside 10 billion kroner ($1.6 billion) of the fund’s cash for African purchases as a “starting point” for a debate on how much should be invested there, Knut Arild Hareide, leader of the Christian Democrats, said in a Dec. 6 interview………………………………………..Full Article: Source

Alaska Supreme Court finds PFD residency requirements constitutional

Posted on 09 December 2013 by VRS  |  Email |Print

The Alaska Supreme Court upheld the constitutionality of the residency requirements and allowable absence rules of Alaska’s Permanent Fund dividend in a 3-2 decision released Friday.
The justices ruled in favor of the state’s requirement that a PFD recipient must be a resident for at least six months before they can qualify for an allowable absence to be outside the state more than 180 days, for things like college or a military deployment………………………………………..Full Article: Source

Brazil won’t use wealth fund to meet budget surplus target — Official

Posted on 05 December 2013 by VRS  |  Email |Print

Brazil’s government won’t resort to tapping its sovereign-wealth fund to cover for any possible shortfalls in meeting its budget surplus target this year, Treasury Secretary Arno Augustin said Wednesday.
Speaking to reporters following testimony at the country’s congress, Mr. Augustin denied that the government would need recourse to extraordinary measures to meet its budget goals. “We’re working with a target of BRL73 billion for the central government, and all the information we have until the moment point toward our compliance with the target,” he said………………………………………..Full Article: Source

Nigeria: SWF - Govs vow to expose FG over Excess Crude Funds’ depletion

Posted on 04 December 2013 by VRS  |  Email |Print

Governors of the 36 states of the federation, vowed to expose how the Federal Government had continued to deplete funds accruing from the proceeds of crude oil sales, petroleum profit tax and oil royalties, otherwise classified as excess crude proceeds.
This was even as a seven-man panel of the Supreme Court, yesterday, fixed March 24 to commence hearing on a suit seeking to stop the Federal Government from transferring $1 billion from the Excess Crude Account, to a new account to be known as “Sovereign Wealth Fund,” SWF………………………………………..Full Article: Source

Supreme Court fixes hearing on Excess Crude Account

Posted on 04 December 2013 by VRS  |  Email |Print

Following the inability of the federal government and states to amicably resolve the dispute arising from the creation of the Excess Crude Account (ECA) and the Sovereign Wealth Fund (SWF), the Supreme Court Monday fixed March 24, 2014 for the hearing of the suit filed by the states against the federal government.
The parties, for over a year, have tried to reach an out-of-court settlement over what the states termed the illegal diversion of funds meant for the federation to the ECA and SWF, but a middle-of-the-road solution to the dispute has been impossible to reach. As a result, the two parties resumed their legal battle Monday before a full panel of seven justices of the Supreme Court presided over by Justice Walter Samuel Nkanu Onnoghen………………………………………..Full Article: Source

SWF: Supreme court to hear FG, states suit

Posted on 03 December 2013 by VRS  |  Email |Print

The Supreme Court on Monday fixed March 24, 2014, for definite hearing in the suit filed by 36 state governors in the country against the Federal Government over the Excess Crude Account and the Sovereign Wealth Fund.
A panel of justices of the apex court fixed the date after counsel in the matter regularised their processes. The development arose from the failure of the states and the Federal Government to reach an out-of-court settlement in the dispute, despite several opportunities given to them by the Supreme Court………………………………….Full Article: Source

SWF: Govs vow to expose FG over excess crude funds’ depletion

Posted on 03 December 2013 by VRS  |  Email |Print

Governors of the 36 states of the federation, yesterday, vowed to expose how the Federal Government had continued to deplete funds accruing from the proceeds of crude oil sales, petroleum profit tax and oil royalties, otherwise classified as excess crude proceeds.
This was even as a seven-man panel of the Supreme Court, yesterday, fixed March 24 to commence hearing on a suit seeking to stop the Federal Government from transferring $1 billion from the Excess Crude Account, to a new account to be known as “Sovereign Wealth Fund,” SWF………………………………….Full Article: Source

ADIA arbitration resurfaces for Citigroup

Posted on 27 November 2013 by VRS  |  Email |Print

Citigroup Inc.’s litigation woes continue to increase. Recently, a U.S. judge rejected the banking giant’s bid to obstruct the Abu Dhabi Investment Authority (ADIA) from seeking a second arbitration related to the wealth fund’s investment in Citigroup.
In Nov 2007, ADIA invested $7.5 billion in Citigroup, which made it the U.S. bank’s largest individual stakeholder – with 4.9% stake. ADIA’s investment provided a capital cushion to the bank after the latter suffered mortgage losses during the financial crisis………………………………………..Full Article: Source

Citigroup can’t block Abu Dhabi arbitration over $7.5 bln stake

Posted on 26 November 2013 by VRS  |  Email |Print

A U.S. judge has rejected Citigroup Inc’s effort to block the Abu Dhabi Investment Authority from seeking a second arbitration over the sovereign wealth fund’s $7.5 billion investment in late 2007 to shore up the then-struggling bank.
U.S. District Judge Kevin Castel in Manhattan said on Monday that arbitrators, not federal judges, had power to decide whether Citigroup’s success in the first arbitration barred the ADIA from pursuing a second arbitration, in which it seeks $2 billion of damages or to rescind its investment………………………………………..Full Article: Source

Former Future Fund chairman David Murray to head inquiry into financial system

Posted on 21 November 2013 by VRS  |  Email |Print

David Murray has 12 months to work out how Australia’s financial system can be made more efficient. As former chief executive of the Commonwealth Bank and chairman of the Future Fund, he has the pedigree.
As head of the inquiry into Australia’s financial system, he will make recommendations to foster an efficient, competitive and flexible financial system with “stability, prudence, integrity and fairness”……………………………….Full Article: Source

Reps to investigate managers of Nigerian Sovereign wealth

Posted on 15 November 2013 by VRS  |  Email |Print

The House of Representatives has mandated its Committee on Commerce and Justice to carry out proper investigations, research and if possible public hearing to determine the risk , if any, that may arise from the appointment of foreign institutions to manage Nigerian Sovereign Wealth.
This decision follows the adoption of the prayer of a motion titled: “Contracting the management of the Nation’s Sovereign Wealth to foreign professionals and inherent conflict of interests,” brought before the House by the Minority Leader of the House, Hon. Femi Gbajabiamila ( APC, Lagos)………………………………………..Full Article: Source

Nigeria: Reps probe use of foreign managers for sovereign fund

Posted on 14 November 2013 by VRS  |  Email |Print

The House of Representatives in Nigeria has launched a probe into the appointment of foreign portfolio managers for the nation’s Sovereign Wealth Fund. The probe is to look at the possible risks the country faces with the appointments of foreign financial institutions – UBS and Goldman Sachs – to manage the fund.
Femi Gbajabiamila, who is the house minority leader, argued that “allowing foreign financial institutions to manage the fund amounts to putting Nigeria’s economic sovereignty and security in foreign hands”………………………………………..Full Article: Source

Senate, minister differ on $1.03bln Excess Crude fund

Posted on 05 November 2013 by VRS  |  Email |Print

The Federal Government and the Senate yesterday disagreed over the whereabout of $1.03 billion Excess Crude Fund. The disagreement followed the disclosure by the Minister of Finance, and Coordinating Minister for the Economy, Mrs. Ngozi Okonjo-Iweala that the balance in the Excess Crude Account amounted to $4.3 billion.
She did not however disclose the total accrual to the account. She spoke at a Joint Senate Committee of Finance and Appropriation meeting on the 2013 budget and the Federal Government revenue-generating agencies………………………………………..Full Article: Source

Zimbabwe plans sovereign wealth fund law

Posted on 01 November 2013 by VRS  |  Email |Print

Zimbabwe plans to craft a law to set up a sovereign wealth fund by next February - but it may not have any money at first as the government desperately needs to develop the country’s crumbling infrastructure, the finance minister said. Patrick Chinamasa also said on Wednesday that the government would consider a first international bond issue to help finance its mining sector.
The southern African country has previously said it wanted to create a sovereign wealth fund to buy shares in foreign-owned companies, including mines, under President Robert Mugabe’s controversial black economic empowerment programme…………………………….Full Article: Source

Court strikes out Halim Saad’s suit against Khazanah Nasional

Posted on 01 November 2013 by VRS  |  Email |Print

The High Court here today struck out tycoon Tan Sri Halim Saad’s RM1.8 billion suit filed against Khazanah Nasional Berhad and two others over his settlement to exit from Renong Berhad. Judge Datuk Hanipah Farikullah ordered Halim to pay costs of RM25,000 to former minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop and the government, and another RM25,000 to Khazanah Nasional.
Halim, a former majority owner and executive chairman of Renong Bhd, filed the suit on April 17 this year. In the judgment, Hanipah said the agreement among the parties involved was made in 2003, and the action filed by Halim was way out of the six-year time-frame that any aggrieved party could file…………………………….Full Article: Source

Fashola reiterates opposition to sovereign wealth fund

Posted on 30 October 2013 by VRS  |  Email |Print

Lagos State Governor, Mr. Babatunde Fashola (SAN) Monday reiterated his opposition to the operation of the Nigeria Sovereign Investment Authority (NSIA), better known as the Sovereign Wealth Fund (SWF), noting that the federal government under the 1999 Constitution lacked the powers to save on behalf of the state governments.
The governor added that the SWF, which the NSIA was set up to manage on behalf of state and local governments, was a flagrant violation of the section 162 of the 1999 Constitution. He utterly differed on the establishment of the fund and NSIA while addressing the authority’s Chairman, Mr. Mahey Rasheed and Managing Director, Mr. Uche Kalu during a visit to the governor at the State House, Ikeja, to handover the state’s share certificate showing its ownership of the fund…………………………………….Full Article: Source

Creation of sovereign wealth fund receives commendation

Posted on 30 October 2013 by VRS  |  Email |Print

The creation of the Sovereign Wealth Fund by the Federal Government, has received commendation from International development partners. Chairman of the Nigerian Sovereign Investment Authority, Mr Mahey Rasheed , stated this when he paid a courtesy visit on the Lagos state governor in southern Nigeria, Mr. Babatunde Fashola.
He said the Fund had been recognised and rated high by Germany’s Investment forum, the UK Development For International Development and the International Monetary Fund (IMF) among others. Mr. Rasheed, said the fund had employed the best brains in the country to oversee and administer its various investments portfolios abroad…………………………………….Full Article: Source

SWF act unconstitutional – Fashola

Posted on 30 October 2013 by VRS  |  Email |Print

Lagos State Governor, Mr. Babatunde Fashola (SAN), Monday lamented that the Sovereign Wealth initiative was unconstitutional, noting that he would receive the Shareholders Certificate of the Fund presented to him by the management of the fund only as an acknowledgement that the state’s fund was being held somewhere.
In his remarks while welcoming officials of the Nigeria Sovereign Wealth Authority led by their Chairman, Mr. Mahey Rasheed, Governor Fashola said although he would accept the Certificate as an acknowledgement that the State’s money was somewhere, it was necessary to put on record that he never supported the initiative…………………………………….Full Article: Source

Gov. Fashola slams FG over SWF, says it’s unconstitutional

Posted on 29 October 2013 by VRS  |  Email |Print

Governor Babatunde Fashola of Lagos State denounced the move by the Federal Government to inaugurate the Sovereign Wealth Fund, SWF, stressing that it negates the country’s constitution.“The 1999 Constitution does not allow us to do what we are doing,” Fashola said.
It will be recalled that, a month ago, President Goodluck Jonathan inaugurated the council of the Nigerian Sovereign Investment Authority, NSIA, also known as SWF, where he canvassed for the support of the contributors, to realise the set objective of the fund………………………………………..Full Article: Source

Khazanah demands apology, retraction from news portal

Posted on 25 October 2013 by VRS  |  Email |Print

Malaysian government investment arm Khazanah Nasional has demanded for an apology from a news portal for two articles implying it failed to respond to a letter or queries from the Auditor-General over operations and investments.
It said in a statement that there was no such letter or request from the A-G and they had always responded to queries in a professional and timely manner. Khazanah added that The Malaysian Insider did not contact them on the veracity of the claims in its articles “Parliament’s bipartisan oversight panel probes Khazanah’s costly ventures” and “PAC siasat perbelanjaan melampau Khazanah.”……………………………………….Full Article: Source

Khazanah under PAC spotlight for failed ventures

Posted on 25 October 2013 by VRS  |  Email |Print

Public Accounts Committee (PAC) has instructed the Auditor-General’s Office to get Khazanah Nasional Berhad to explain several of its ventures which went bust. “We had a meeting earlier with the deputy auditor-general (Anwari Suri). The recent audit done on Khazanah was limited.
“But recently, the media reported that some of Khazanah’s ventures did not turn out well. So we will ask the agency to give an official answer,” said PAC chairman Nur Jazlan Mohamed………………………………………..Full Article: Source

Citigroup arbitration released by Abu Dhabi sovereign fund

Posted on 23 October 2013 by VRS  |  Email |Print

Abu Dhabi Investment Authority made public an arbitration ruling against it in its claim against Citigroup Inc.over a $7.5 billion investment in the bank in 2007, after a judge ordered the decision made public.
U.S. District Judge Kevin Castel in Manhattan ordered a redacted version of the 84-page decision made public, over the objections of Abu Dhabi Investment Authority, a sovereign wealth fund also known as ADIA. The fund complied yesterday. Citigroup announced the result of the arbitration in November 2011………………………………………..Full Article: Source

Fitch assigns Kazakhstan’s Samruk-Kazyna ‘BBB+’ rating

Posted on 21 October 2013 by VRS  |  Email |Print

Fitch Ratings has assigned Kazakhstan’s Joint Stock Company Sovereign Wealth Fund Samruk-Kazyna a Long-Term foreign currency rating of ‘BBB+’, Long-Term local currency rating of ‘A-’, National Long-Term rating of ‘AAA(kaz)’ and Short-term foreign currency rating of ‘F2′.
The Outlooks on the Long-Term ratings are Stable. Fitch has also assigned a Long-Term local currency rating of ‘A-’ and a National Long-Term Rating of ‘AAA(kaz)’ to the Fund’s 23 senior unsecured domestic bond issues with total value of KZT1,090bn………………………………………..Full Article: Source

Norway orders review of $790 bln wealth fund

Posted on 16 October 2013 by VRS  |  Email |Print

Norway has ordered a review of its $790 billion wealth fund, one of the world’s biggest investors whose largesse helps underpin Norway’s generous social benefits, responding to concerns that the fund is unwieldy and its returns too low.
The government also in a regular review of the fund’s investment ethics ordered it to sell stakes in several companies due to ethical issues and expressed concern over investments in oil companies Royal Dutch Shell and Eni. But it stopped short of saying the latter stakes should be sold………………………………………..Full Article: Source

Barclays-Qatar probe to have progress in 2014, SFO’s Green says

Posted on 08 October 2013 by VRS  |  Email |Print

U.K. fraud prosecutors’ will announce significant developments next year in a probe into fees paid by Barclays Plc (BARC) to Qatar’s sovereign-wealth fund for a 2008 fundraising that helped the bank avoid a bailout.
David Green, director of the U.K. Serious Fraud Office, said in an interview today, the agency would progress its year-old investigation in early 2014. He also said there would be new information in a separate probe into rigging of benchmark interest rates in “due course.”……………………………………….Full Article: Source

Norway’s incoming government pledges tax cuts and asset sales

Posted on 08 October 2013 by VRS  |  Email |Print

Norway’s new government pledged to cut income taxes, sell state assets and establish a 100 billion kroner ($16.8 billion) fund to speed up building of infrastructure in western Europe’s largest oil producer.
The Progress Party will enter government for the first time after it was formed as an anti-tax movement in 1973. The party had campaigned on spending more of Norway’s oil wealth and tapping more of its $780 billion sovereign wealth fund………………………………………..Full Article: Source

Khazanah denies impropriety in charge cards

Posted on 08 October 2013 by VRS  |  Email |Print

The government’s investment arm, Khazanah Nasional Bhd, has denied any element of impropriety or illegality in the late declarations of charge card expenses by its staff.
Khazanah said contrary to reports on comments made by DAP Member of Parliament for Segambut, Lim Lip Eng, there is no incidence of false claims or improper and unauthorised expenses concerning the late declarations as highlighted in the 2012 Auditor General’s Report………………………………………..Full Article: Source

Norway faces more pressure to broaden wealth fund’s scope

Posted on 03 October 2013 by VRS  |  Email |Print

Two prominent Norwegian investment funds are throwing their weight behind demands that the newly elected government should push the nation’s $750 billion wealth fund into making investments in renewable energy and other infrastructure projects that could provide safe alternatives to its bond and stock investments.
KLP and Storebrand ASA, with combined assets under management of 780 billion Norwegian kroner ($130.1 billion), have joined several environmental organizations and the Oslo Catholic Church in calling on new Prime Minister Erna Solberg to make the changes to the fund’s structure. Currently, the sovereign-wealth fund—formally called The Government Pension Fund Global—has 35.7% of its money in fixed-income investments, 63.4% in equities and less than 1% in real estate………………………………………..Full Article: Source

Auditor General gives thumbs up to Khazanah Nasional for effective role

Posted on 02 October 2013 by VRS  |  Email |Print

The Auditor General has given the thumbs up to the financial performance of Khazanah Nasional Bhd, which has fulfilled its role effectively as the investment catalyst in strategic sectors in the country and overseas.
According to the 2012 Auditor General’s Report, for 2009, 2010, 2011 and 2012 financial years, Khazanah’s financial performance was good whereby the company had recorded annual comprehensive income of RM640.7 million, RM1.215 billion, RM5.692 billion and RM1.562 billion, respectively………………………………………..Full Article: Source

Norwegian Ethics Council Chair Mestad cautions on insincere ESG compliance

Posted on 27 September 2013 by VRS  |  Email |Print

Currently, Ola Mestad is the chair of the Council on Ethics for Norway’s Government Pension Global (GPFG) and a professor of law at the University of Oslo. It has been reported that Ola Mestad is not as enthusiastic about the efficacy of Norway’ sovereign wealth fund in recent days, specifically its responsible investment criteria.
The ethics council has a list of companies to be excluded from the sovereign wealth fund’s investment universe. Some of the companies on the exclusion list include Fortune 500 companies like Lockheed Martin Corporation, Northrop Grumman Corporation, Wal-Mart Stores and Boeing Co. In addition, a number of excluded companies have substantial public funds as investors such as Rio Tinto Plc and Potash Corporation of Saskatchewan………………………………………..Full Article: Source

Azerbaijani State Oil Fund: EITI reports in Azerbaijan to be prepared on new standards

Posted on 27 September 2013 by VRS  |  Email |Print

The report within the Extractive Industries Transparency Initiative (EITI) on 2013 will be prepared in accordance with the new EITI standards, the head of Azerbaijani State Oil Fund Shahmar Movsumov told journalists on Wednesday.
According to him, in accordance to the new standards, now the report within EITI will not reflect the total volume of transactions within extractive industry, but the contributions of each company which is the member of this initiative………………………………………..Full Article: Source

Citigroup moves to block new arbitration by Abu Dhabi fund

Posted on 26 September 2013 by VRS  |  Email |Print

Citigroup Inc has gone to court to block a new effort by Abu Dhabi Investment Authority to pursue an arbitration over a $7.5 billion investment the sovereign wealth fund made in the bank amid the subprime mortgage meltdown in 2007.
In a complaint unsealed Tuesday in U.S. District Court in New York, Citigroup said that by filing a claim last month, ADIA had made an “assault” on a federal court ruling in March that upheld the bank’s win in an earlier international arbitration………………………………………..Full Article: Source

Bill Shorten backs higher super payments to build aged care fund

Posted on 25 September 2013 by VRS  |  Email |Print

The Labor leadership candidate Bill Shorten has backed the idea of higher superannuation payments to build a sovereign wealth fund to help pay for the care of the increasing numbers of Australians living into their 80s and 90s.
Referring to a plan floated by the former prime minister Paul Keating, Shorten said Labor should consider “big” new ideas, like “encouraging people to save for a sovereign wealth fund that enables people to draw down on that resource when they need it in their 80s and 90s”………………………………………..Full Article: Source

Kazakhstan: BTA in recovery mode after Ablyazov arrest

Posted on 24 September 2013 by VRS  |  Email |Print

Five years after nearly collapsing under the weight of bad debts, the once-hobbled Kazakh bank BTA has a spring in its step. Kazakhstan’s third-largest lender, 97% owned by sovereign wealth fund Samruk-Kazyna, posted first-half earnings of T15.6 billion ($112 million), compared with a T658 billion loss a year ago. BTA chairman Kadyrzhan Damitov attributed the turnaround to a second debt restructuring completed in December 2012, helping boost first-half net interest income to T17 billion.
BTA’s focus this year has switched to locating and recouping billions of dollars that the bank alleges former chairman Mukhtar Ablyazov stole. Ablazov was arrested in France on July 18 on a request from Ukraine. He maintains the charges of fraud are false and politically motivated, and that BTA’s problems stem from its nationalization in 2009………………………………….Full Article: Source

SWF: New PDP Reps back APC

Posted on 24 September 2013 by VRS  |  Email |Print

Members of the new Peoples Democratic Party (PDP) in the House of Representatives are in support of the All Progressives Congress (APC) decision to challenge the appointment of three foreign firms to manage the $200m or 20 percent of the nation’s $1b Sovereign Wealth Fund (SQF).
The lawmakers also said it is the Minister of Petroleum Resources, Diezani Allison-Madueke that should be asked to resign by the Nigeria Governors Forum(NGF) and not the Minister of Finance, Ngozi Okonjo-Iweala………………………………….Full Article: Source

Nigeria: PDP berates Apc lawmakers over comments on SWF

Posted on 23 September 2013 by VRS  |  Email |Print

The Peoples Democratic Party, PDP, has described the position of the opposition All Progressives Congress, APC, lawmakers on the management of the Sovereign Wealth Fund, SWF, as a demonstration of crass ignorance and the obvious unpreparedness of the APC to manage the affairs of the nation.
The PDP National Publicity Secretary, Olisa Metuh, in a statement on Thursday, branded the APC lawmakers as frustrated political adventurers with a penchant for destructive criticisms that exhibit their emptiness and poor understanding of international financial system…………………………………..Full Article: Source

Jonathan inaugurates SWF Council, calls for accountability

Posted on 23 September 2013 by VRS  |  Email |Print

President Goodluck Jonathan has urged the Nigeria Sovereign Investment Authority to ensure accountability and gain the trust of all stakeholders in the management of the Sovereign Wealth Fund. Jonathan, who was represented by Vice-President Namadi Sambo, made the call in Abuja on Thursday at the inauguration of the Sovereign Wealth Fund Council.
The President is the chairman of the council. Other members are the 36 state governors, the Minister of the Federal Capital Territory and the Attorney-General of the Federation and Minister of Justice…………………………………..Full Article: Source

Jim Armitage: RBS looks set to spoil Osborne’s claim that he has fixed banking mess

Posted on 20 September 2013 by VRS  |  Email |Print

Temasek is clearly a beast with some appetite for the UK. Little surprise, then, that the Singapore sovereign wealth fund has become George Osborne’s best new buddy. Not only did it take up the biggest slice of Lloyds’ placing this week, but it appears the Treasury/UK Financial Investments has high hopes it will take a bigger bite with the next round of the sales process, probably next March.
This all plays well for the Chancellor, who can boast to the public that one of the world’s biggest sovereign wealth funds is putting billions of pounds in long-term bets on the future of the British economy (hence the Treasury leaks about Temasek snapping up about 0.5 per cent of Lloyds in this week’s placing.)……………………………………….Full Article: Source

APC Reps question management of $200mln sovereign funds by foreigners

Posted on 19 September 2013 by VRS  |  Email |Print

The All Progressives Congress (APC) lawmakers in the House of Representatives said Federal Government’s farming out the management of $200 million Sovereign Wealth Fund (SWF) to foreign firms contravenes Section 1, Part 1 of the Fifth Schedule of the 1999 Constitution.
The Federal Government, on August 28, appointed Credit Suisse and Goldman and Sach and UBS to manage the $200 million, or 20 per cent of the country’s $1 billion SWF. The progressives’ lawmakers have vowed to challenge the legality of the action………………………………………..Full Article: Source

Nigeria: Governors meet to discuss sovereign wealth fund

Posted on 17 September 2013 by VRS  |  Email |Print

The Sovereign Wealth Fund, oil theft and continued deductions from excess crude account are expected to dominate discussions at the summit of the governors from the 36 states of the federation, holding on Tuesday.
According to unconfirmed reports, the meeting will be holding at the Rivers State Governor’ Lodge in Abuja. According to the Director General of the Nigeria Governors’ Forum, Bayo Okuaro, who confirmed the meeting, said that all the 36 state governors have been invited to the meeting that is expected to hold Tuesday with the following agenda - Fresh & subsisting litigations; update on Federation Allocation Accounts Committee, Excess Crude Account and the Sovereign Wealth Fund………………………………………..Full Article: Source

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