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ISS says Deutsche Wohnen investors should approve GSW takeover

Posted on 16 September 2013 by VRS  |  Email |Print

Shareholders of Deutsche Wohnen AG, which include BlackRock Inc. and Norway’s sovereign-wealth fund, were advised to approve the acquisition of GSW Immobilien AG, documents obtained by Bloomberg show.
Institutional Shareholder Services Inc., a proxy advisory firm, advised voting in favor of a capital increase to finance the purchase, which would create the second-largest owner of German homes. BlackRock holds about 6.5 percent of Deutsche Wohnen shares, while Norges Bank owns about 4.5 percent, according to data compiled by Bloomberg………………………………………..Full Article: Source

Future Fund, AustralianSuper set for court case: report

Posted on 13 September 2013 by VRS  |  Email |Print

Investors AustralianSuper and the Future Fund will appear in the Victorian Supreme Court next month in a dispute over ownership of Perth Airport, The Australian Financial Review reports.
According to the newspaper, the Future Fund declined voluntarily to provide documents the superannuation fund says will help it make a decision about whether to sue the Future Fund for its $875 million purchase of a 30 per cent stake in Perth airport………………………………………..Full Article: Source

Mexico’s fiscal reform neutral for sovereign credit

Posted on 12 September 2013 by VRS  |  Email |Print

The Mexican government’s recently proposed fiscal reform and the 2014 budget are broadly neutral for its sovereign creditworthiness, according to Fitch. The positive impact from the expansion of the government’s revenue base needs to be counterbalanced by the near-term weakening of the economy and higher-than-expected fiscal deficits in the coming years.
The creation of a Sovereign Wealth Fund and the implementation of a structural fiscal balance rule, including caps on current spending, represent progress on strengthening the institutional framework………………………………………..Full Article: Source

Gulf SWFs interested in Indian investments, PMO to take call on pre-conditions

Posted on 09 September 2013 by VRS  |  Email |Print

The Prime Minister’s Office would discuss modalities with key economic ministries to meet the pre-conditions set by the United Arab Emirates, Kuwait, Qatar and Saudi Arabia for parking part of their sovereign wealth funds (SWF) as foreign direct investments (FDI) in the country.
The UAE has the largest SWF at $750 billion but scrutiny by Indian agencies in investments by telecom firm Etisalat and real estate developer Emaar has become “a sore point” for future commitment………………………………………..Full Article: Source

Charles Russell advise Barwa on successful multi-million BCDR litigation

Posted on 06 September 2013 by VRS  |  Email |Print

Charles Russell’s Middle East Real Estate and Litigation teams have secured a successful judgment in the Bahrain Chamber for Dispute Resolution (BCDR) for Barwa Investment SPC, an investment arm of the Qatari Sovereign Wealth fund, against Inovest (a shariah compliant investment company listed on the Bahraini bourse) and its sister company Al Khaleej Development Company (Defendants).
The BCDR judgment, handed down earlier this year, accepted that Barwa had been misled by the Defendants when they invested in Dannat, a Cayman based fund vehicle set up and controlled by the Defendants to help finance a substantial property development in Saudi Arabia. ……………………………………….Full Article: Source

Future Fund accused of withholding docs in airport spat

Posted on 28 August 2013 by VRS  |  Email |Print

AustralianSuper has upped the ante in its dispute over the Future Fund’s purchase of a stake in Perth airport, accusing the $80 billion sovereign wealth fund of withholding crucial documents.
AustralianSuper said it had requested documentation from the Future Fund in relation to the allocation of the purchase price of the airport assets from the Australian Infrastructure Fund (AIX) and is pursuing this matter in the best interest of its two million members. “These documents are being sought so that we can determine whether to pursue a claim arising from the sale of the AIX assets,” said an AustralianSuper press release………………………………………..Full Article: Source

Sovereign and pension funds exempt from Italy’s Tobin tax

Posted on 27 August 2013 by VRS  |  Email |Print

Financial transactions involving sovereign funds, such as treasury bonds, won’t be subject to the new Financial Transaction Tax (FTT) - the so-called Tobin tax - which goes into effect on October 16, the Italian economy ministry announced on Monday.
”Entities and organizations invested in by pension funds” will also be exempt from tariffs on equity and derivatives transactions, but ethical or socially responsible funds will not, the ministry clarified. Companies that buy shares in their controlled entities, or buy back their own stock to eliminate shares, also won’t pay the new tax destined to hit both counterparties in most equities transactions………………………………………..Full Article: Source

Lawmakers hopeful Future Fund can work despite key differences in industries of WV and ND

Posted on 27 August 2013 by VRS  |  Email |Print

With a trust fund fueled by severance taxes from the oil industry, North Dakota has saved nearly $1.5 billion in just 20 months. While some West Virginia lawmakers hope to start a similar fund using taxes from the Marcellus shale industry, others are still skeptical of the revenues the state can expect.
North Dakota’s tax department collected nearly $3.5 billion from the state’s oil and natural gas production alone between 2011 and 2013. In those same two years, West Virginia collected about $875 million in severance taxes, which includes all of the state’s extraction industries………………………………………..Full Article: Source

Mumtalakat sukuk rating reaffirmed

Posted on 21 August 2013 by VRS  |  Email |Print

RAM Rating Services Berhad has reaffirmed Bahrain Mumtalakat Holding Company’s MYR 3 billion ($920 million) sukuk murabahah programme with a long-term rating of AA2 and a stable outlook. This rating represents a strong investment grade credit rating profile, said a statement.
Commenting on the rating announcement, Mahmood Hashim Al Kooheji, chief executive officer of Mumtalakat, said: “The strength of our business strategy and sustainability of favourable long-term financial prospects have been underscored with RAM Rating Services reaffirmation of the AA2 long-term rating and stable outlook of Mumtalakat’s Sukuk programme.”……………………………………….Full Article: Source

Singapore’s Temasek disappointed with CCI fine

Posted on 19 August 2013 by VRS  |  Email |Print

Slapped with a Rs 50-lakh fine for late filing of an application with fair trade regulator CCI, Singapore government’s investment arm Temasek says it is “disappointed” and will take steps after studying the order. “Given the circumstances, Temasek is naturally disappointed with the decision, but respects the Commission’s decision under Indian law. Temasek will study the decision, and will take the necessary actions to follow up as needed,” the Singaporean sovereign investor said.
The fine of Rs 50 lakh was imposed on Temasek Holdings and its two subsidiaries for delayed submission of a mandatory application to the Competition Commission of India (CCI) with regard to a proposed acquisition of shares from DBS Group………………………………………..Full Article: Source

Norway’s SWF approved by Euro Commission to buy Paris properties

Posted on 01 August 2013 by VRS  |  Email |Print

Norway’s sovereign wealth fund under their subsidiary NBIM Clement SCI has been approved by the European Commission to acquire 50% of French developer SCI Pasquier. Currently, SCI Pasquier is solely owned by Assicurazioni Generali S.p.A which is part of the Italian insurer Generali Group.
Generali will maintain 50% ownership in the properties. The sovereign wealth fund investment includes five properties in Paris. The real estate transaction would augment NBIM’s exposure to core properties in central Paris………………………………………..Full Article: Source

Russia: Cabinet approves using sovereign fund for stimulus

Posted on 26 July 2013 by VRS  |  Email |Print

The Cabinet on Thursday approved measures to spur economic growth, largely by dipping into a fund that soaks up oil revenues, Economic Development Minister Alexei Ulyukayev said at a Cabinet meeting. The economy grew just 1.7 percent in the year’s first half.
Investment is in decline, as is export, Ulyukayev said. The only economic stimulus in place is the growth of personal incomes, he said. The stimulus package backed Thursday envisages using the money in the National Welfare Fund, now worth $86.5 billion, to invest in infrastructure projects and support bank lending programs for small businesses………………………………………..Full Article: Source

GIC announces name change

Posted on 24 July 2013 by VRS  |  Email |Print

Singapore’s sovereign wealth fund has changed its legal name from “Government of Singapore Investment Corporation Private Limited” to “GIC Private Limited”. In a statement, GIC said the name change formalises the widely-used brand name of “GIC” in the global investment community and markets that GIC operates in.
The change will have no effect on the operations, rights or obligations of the company. According to its website, GIC has invested “well over” US$100 billion in a wide range of assets. Analysts estimate GIC’s investment portfolio to be worth around US$300 billion………………………………………..Full Article: Source

India: Sovereign wealth funds to get access to tax-free infra bonds

Posted on 24 July 2013 by VRS  |  Email |Print

The government is set to allow a direct line of investment for sovereign wealth funds (SWFs) in the tax-free infrastructure bonds as part of measures to shore up forex reserves and stem rupee slide.
The government may also ask state-owned infra finance firm such as IIFCL, PFC, IRFC and IREDA to raise funds overseas in larger quantum. “Some sovereign wealth funds have shown interest in picking up a substantial chunk in infrastructure bonds of state-owned entities….we are looking at how this can be worked out,” a senior finance ministry official told ET………………………………………..Full Article: Source

Khazanah denies any proposed settlement for Halim Saad’s suit

Posted on 22 July 2013 by VRS  |  Email |Print

Sovereign wealth fund Khazanah Nasional Berhad has denied that there would be a proposed out-of-court settlement for a billion-ringgit legal suit by tycoon Tan Sri Halim Saad. A Khazanah statement last night refuted a report in The Star newspaper that speculated there could be a settlement in the works.
“The respective defendants would like to state that contrary to the said article, there is neither a settlement being proposed nor are they aware of any discussion in respect of the same,” Khazanah said………………………………………..Full Article: Source

No settlement, says Khazanah

Posted on 19 July 2013 by VRS  |  Email |Print

Khazanah Nasional Bhd has denied that an out-of-court settlement has been struck in the legal suit between tycoon Tan Sri Halim Saad against the government, Khazanah Nasional and Tan Sri Nor Mohamed Yakcop.
“With regard to Halim’s legal suit against Nor Mohamed, the government and Khazanah Nasional, the respective defendants would like to state that contrary to the said article, there is neither a settlement being proposed nor are they aware of any discussion in respect of the same,” the state-owned investment arm said………………………………………..Full Article: Source

Abu Dhabi-backed investor group suing Norway government

Posted on 17 July 2013 by VRS  |  Email |Print

Abu Dhabi is part of a group of investors in Norway’s offshore gas pipeline system which is suing the Oslo government over a plan to reduce tariffs for using the network.
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 safe and steady investment bet………………………………………..Full Article: Source

Debate heralds change for Norway’s oil fund

Posted on 01 July 2013 by VRS  |  Email |Print

The political management of Norway’s $720bn oil fund – the world’s largest sovereign wealth fund – has been defined by one word: consensus. Despite all the temptations that come from the fund – Government Pension Fund Global – having more assets than the equivalent of one year’s economic output from the Nordic country, politicians of all colours have been careful to act together and cautiously over Norway’s oil wealth.
But with Norway on course to change government for the first time in eight years, the centre-right favourites to win the poll are signalling there could be some big changes both in how the fund is run and how its enormous reserves are spent…………………………………Full Article: Source

Reflection on Angola’s sovereign wealth fund investment policy

Posted on 24 June 2013 by VRS  |  Email |Print

Angola’s US$ 5 billion Fundo Soberano de Angola (FSDEA) has released their investment policy. The sovereign fund’s asset allocation mix will support three criteria: preservation of capital, long-term return maximization and infrastructure development.
The fifty percent allocation to cash, fixed income and G-7 stocks is modeled after the first criterion. The other 50% is open-ended with an opportunistic lens including investing domestically in Angolan prospects like the hotel industry. The sovereign fund has endowment-like characteristics to it, as well as a stabilization function……………………………………….Full Article: Source

Indian rupee fall: Govt may ease rules for sovereign wealth funds

Posted on 21 June 2013 by VRS  |  Email |Print

India’s finance ministry, the central bank and market regulators discussed loosening rules for investment by foreign sovereign wealth funds in response to a sharply falling rupee and a wide current account deficit that are hurting the economy. Two senior ministry officials, who declined to be named, said the aim was to attract more capital flows from wealth funds in Middle East countries. Finance Minister P Chidambaram has visited the Middle East in recent months to drum up investment.
“We will again meet and it will take some more time to finalize measures on sovereign funds,” said one official who attended the meeting………………………………………..Full Article: Source

India sets up special window for SWFs

Posted on 17 June 2013 by VRS  |  Email |Print

India is creating a special window in the government securities (G-Secs) segment for sovereign wealth funds (SWFs) and other long-term funds, with ease of entry and exit, Qatar Indian Embassy said.
During the recent visit to Doha of Indian Finance Minister P Chidambaram, India and Qatar had discussed investments by Qatar’s sovereign wealth fund, and other long-term investors in Asia’s third largest economy. The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) have issued notifications enabling such investments…………………………………..Full Article: Source

Putin rules to use wealth fund money to cover pension deficit

Posted on 14 June 2013 by VRS  |  Email |Print

Russian President Vladimir Putin has ordered the government to decide how many resources from the National Wealth Fund, designed to secure the pension system, could be used to cover the deficit of the pension fund, as cited by RIA Novosti on Thursday.
“Depending on the parameters of a formula to calculate pensions, we need to set limits within which we can use the resources of the National Wealth Fund to cover the deficit of the pension fund,” Putin, who is serving his third term in the Kremlin, said in his budget address to the government. Putin also said that resources of the National Wealth Fund and pension savings have to be used to finance infrastructure projects, whose implementation could help spur growth in a stagnating economy, among other measures………………………………………..Full Article: Source

Angolan government prepares investment policy for Angola’s Sovereign Fund

Posted on 14 June 2013 by VRS  |  Email |Print

The Angolan government is preparing to name a new chairman of the Board of Directors of the Angola Sovereign fund and draw up the fund’s investment policy, a Fund director said in Luanda. In a statement cited by Angolan news agency Angop, Director José Filomeno dos Santos said that the government was also preparing the Fund’s investment strategy, and would continue working on preparing the institution’s professional management.
Dos Santos said that the Fund’s investment policy had been delayed by the late approval of the 2013 State Budget by parliament and the 2012 general elections………………………………………..Full Article: Source

S.Africa vows to return Kadhafi assets to Libya

Posted on 14 June 2013 by VRS  |  Email |Print

South Africa will return assets and cash stashed by the slain Libyan dictator Moamer Kadhafi in the country after reaching an agreement with Tripoli, the finance ministry said on Thursday. The assets were placed in South Africa by the Libya Investment Authority, the Libya Africa Investment Portfolio and the Libya Africa Investment Company — funds closely controlled by Kadhafi’s regime.
Part of the missing money is allegedly controlled by Kadhafi’s former chief of staff Bashir Saleh. Saleh, who headed Libya’s $40-billion sovereign wealth fund, is wanted in Libya for fraud and is the target of an Interpol arrest warrant under the alias Bashir al-Shrkawi………………………………………..Full Article: Source

India to incentivise SWFs to rescue rupee

Posted on 13 June 2013 by VRS  |  Email |Print

The Finance Minister today held a meeting with several officials in the Department of Economic Affairs (DEA) and will announce measures for arresting the rupee fall. The government is thinking of ways to incentivise sovereign wealth funds (SWF), especially those in the Middle East which have large amounts of money to come and invest in Indian debt and equity markets. In Indian debt market, one of the ways to incentivise them that is being considered is to allow them to rollover funds once maturity is reached.
Typically, now the SWF will once again have to bid for bonds. If rollover funds are allowed, then transaction cost for them will reduce and it will facilitate them to once again invest their money because these funds are for the long haul………………………………………..Full Article: Source

India considers easing rules for sovereign wealth funds to stem rupee fall

Posted on 11 June 2013 by VRS  |  Email |Print

India’s finance ministry, the central bank and market regulators on Monday discussed loosening rules for investment by foreign sovereign wealth funds in response to a sharply falling rupee and a wide current account deficit that are hurting the economy.
Two senior ministry officials, who declined to be named, said the aim was to attract more capital flows from wealth funds in Middle East countries. Finance Minister P Chidambaram has visited the Middle East in recent months to drum up investment………………………………………..Full Article: Source

Khazanah confirms receiving summons, claim from Halim’s lawyers

Posted on 10 June 2013 by VRS  |  Email |Print

Khazanah Nasional Bhd has confirmed that Tan Sri Halim Saad was indeed suing it, confirming a StarBiz report earlier. In a short statement released yesterday, the sovereign wealth fund said it had received a Writ of Summons and Statement of Claim from the legal representatives of Halim.
“We believe that we have a strong defence to the claim, and shall be taking all measures necessary to vigorously defend it in order to protect our interest,” it said………………………………………..Full Article: Source

Qatar wins green light for London Shell Centre

Posted on 28 May 2013 by VRS  |  Email |Print

Qatar’s sovereign wealth fund has secured local government approval to build almost 900 homes and eight office blocks at the site of Royal Dutch Shell’s London headquarters.
Qatari Diar Real Estate Investment, the property unit of the gas-rich Gulf state’s wealth fund, has been given the nod for the project by the UK capital’s Lambeth Borough Council. It will be built alongside Canary Wharf Group, which owns the financial district of the same name……………………………………..Full Article: Source

Canary Wharf, Qatar win approval for London Shell Centre Project

Posted on 22 May 2013 by VRS  |  Email |Print

Canary Wharf Group Plc and Qatar’s sovereign-wealth fund won local-government approval to build 877 homes and eight office towers at the site of Royal Dutch Shell Plc (RDSA)’s London headquarters on the banks of the River Thames.
A joint venture between the fund’s Qatari Diar Real Estate Investment unit and Canary Wharf gained Lambeth Borough Council’s permission to construct eight buildings totaling about 76,000 square meters (820,000 square feet) of space and ranging from five to 37 floors at Shell Centre. The tower occupied by Shell since the 1960s will remain part of the development………………………………….Full Article: Source

No sovereign wealth fund for SA

Posted on 21 May 2013 by VRS  |  Email |Print

The government has quietly dropped plans to establish a South African sovereign wealth fund originally mooted to help manage the country’s foreign reserves and to stabilise the value of the rand.
Economic Development Minister Ebrahim Patel, in reply to Freedom Front Plus MP Corné Mulder, said the creation of such a fund “is best timed with stable or rising commodity prices. In light of market conditions, no immediate steps are contemplated”………………………………..Full Article: Source

Watchdog raises fears over wealth funds

Posted on 16 May 2013 by VRS  |  Email |Print

Sovereign wealth funds from resource-rich countries controlling more than $500bn of assets operate with no disclosure, limiting their accountability and increasing the risk of corruption, a leading transparency watchdog has said.
The Revenue Watch Institute, a New York-based group backed by charitable foundations and rich-country governments, published research on Wednesday showing that eight large funds, including the investment authorities of Qatar, Kuwait and Libya, disclosed no details at all about their assets, transactions or investments……………………………………Full Article: Source

Temasek fails to back Standard Chartered executive directors

Posted on 10 May 2013 by VRS  |  Email |Print

Standard Chartered’s largest shareholder has failed to back four of the emerging market lender’s directors in a dispute over the boardroom structure of the bank. Singaporean sovereign wealth fund Temasek, which owns an 18pc in Standard Chartered, refused to back the reelection to the bank’s board of four executive directors.
Steve Bertamini, Mike Rees, Viswanathan Shankar and Jaspal Bindra each saw about a fifth of the bank’s shareholders fail to back them, while a further 1pc of investors actively voted against their election at its annual general meeting…………………………………Full Article: Source

Nigeria’s sovereign wealth fund: No deal yet between FG, states

Posted on 10 May 2013 by VRS  |  Email |Print

Nigeria’s Federal Government and state governors on Thursday, at the resumed hearing of the suit filed by the governors against the illegal diversion of funds for the Sovereign Wealth Fund at the Supreme Court, disagreed over the success of the out of court settlement talks.
While the governor berated the Federal Government for its insincerity about the out of court settlement, the Federal Government claimed that progress is being made and that it would be wrong for the governors to claim that the progress made was not appreciable by their assessment………………………………….Full Article: Source

Supreme Court insists on political end to sovereign wealth’s dispute

Posted on 10 May 2013 by VRS  |  Email |Print

Conceding to the Federal Government the last chance to resolve the case on the Sovereign Wealth Fund Account amicably, the Supreme Court in Abuja Thursday held that the dispute was political and would better be resolved out-of-court. The apex court expressed this view while speaking to the Federal Government’s legal team led by Chief Wole Olanipekun (SAN) when the matter came up.
But the panel, presided over by Justice Walter Ononghen who led six other justices, said that the court would have no choice than to proceed with hearing the case should the Federal Government fail to take advantage of the out-of-court settlement option for the last time………………………………….Full Article: Source

Gao says CIC doesn’t get equal treatment from U.S.

Posted on 29 April 2013 by VRS  |  Email |Print

China Investment Corp., the world’s fifth-largest sovereign wealth fund, is treated differently than other investors by U.S. regulators, the company’s president said in Washington.
CIC faces challenges in the U.S. and is “singled out as a different investor,” CIC President Gao Xiqing said yesterday at a conference after meetings with officials in the U.S. capital.“We thought we were friends,” Gao said. “All of the sudden, you’ve got people slapping you in the face and telling you, OK, we don’t like you.”……………………………………….Full Article: Source

Bill to tap Rainy Day Fund approve

Posted on 24 April 2013 by VRS  |  Email |Print

A move to take $2 billion out of the state’s Economic Stabilization Fund — commonly known as the Rainy Day Fund — was approved in the House budget committee Tuesday morning with mild pushback to make sure transportation and education get their share of money from the fund.

The House Appropriations Committee approved the bill, HB 11, which would put money from the Economic Stabilization Fund into a bank from which communities could borrow money at low interest rates for water projects such as pipelines, aquifer development, desalination and conservation………………………………………..Full Article: Source

PKR questions timing of 1MDB’s $3 bln bond issuance

Posted on 23 April 2013 by VRS  |  Email |Print

Parti Keadilan Rakyat (PKR) has questioned why $3 billion (RM9.1 billion) worth of bonds was issued by 1Malaysia Development Berhad (1MDB) three working days before the dissolution of parliament.
“The International Financing Review Asia (IFR Asia) said that the bond issuance was completed on March 29,” said PKR Investment and Trade chief Wong Chen at a press conference at PKR headquarters. He said this was a key issue on the “big questionable financial act” by caretaker Prime Minister Datuk Seri Najib Razak, who is the chairman of 1MDB and the caretaker Finance Minister………………………………………..Full Article: Source

India: Government eyes gas assets abroad with PSU funds

Posted on 17 April 2013 by VRS  |  Email |Print

Given the revenue account deficit and apprehensions of devaluation of rupee vis-a-vis dollar resulting in worsening fiscal deficit, the government has put the proposal of constituting a sovereign wealth fund (SWF) to acquire assets abroad on the back burner.
“Constitution of a SWF is possible and desirable only when the current account is surplus and investing funds in acquiring assets abroad, based on commercial decisions, give better returns as against putting these funds in treasury,” the finance ministry conveyed at a recent meeting in the Prime Minister’s Office (PMO). HT is in possession of the minutes of the meeting held in the PMO…………………………………….Full Article: Source

Israel cabinet OKs wealth fund to prevent “Dutch Disease”

Posted on 15 April 2013 by VRS  |  Email |Print

Israel’s cabinet on Sunday re-approved the establishment of a sovereign wealth fund to prevent a steep appreciation of the shekel once natural gas fields start to generate high levels of income. Bank of Israel Governor Stanley Fischer has called for a sovereign wealth fund similar to Norway’s to safeguard the billions of dollars in windfall natural gas revenue.
Israel wants to avoid the so-called Dutch Disease, whereby a sudden explosion in national wealth overheats the currency and undermines export industries………………………………………..Full Article: Source

Israel gas-fund law shows ‘Dutch Disease’ awareness, Kandel says

Posted on 15 April 2013 by VRS  |  Email |Print

The creation of an Israeli sovereign wealth fund for revenue from natural-gas discoveries will help the government manage currency-market expectations, a top adviser to the prime minister said.
A draft law creating the fund was approved in principle today by the Cabinet, said Eugene Kandel, head of the National Economic Council. While the fund will probably enjoy income only in 2016 or 2017, the government is rushing to prepare the framework for its operation now, he said………………………………………..Full Article: Source

Israel: Government approves sovereign wealth fund

Posted on 15 April 2013 by VRS  |  Email |Print

The government approved the creation of a sovereign wealth fund to manage profits from Israel’s natural gas fields and prevent the influx of dollars from overvaluing the shekel. But the fund’s creation only becomes final after the Knesset legislates it.
Many states that discover large natural resource reserves set up such funds to avoid what economists call “Dutch disease.” Selling natural gas on the world market would flood Israel’s economy with dollars, making them cheap relative to the shekel. A strong shekel, in turn, would make Israeli goods more expensive on the world market, hurting exports………………………………………..Full Article: Source

China sovereign fund seeks easing of Australia investment rules

Posted on 08 April 2013 by VRS  |  Email |Print

An executive from China Investment Corp., the nation’s $482 billion sovereign wealth fund, told Australian Prime Minister Julia Gillard that he hopes her government will reduce restrictions on foreign investment.
Jin Liqun, head of the fund’s supervisory board, said in an interview after a group of Chinese and Australian executives met with Australian officials that he had also raised the issue of investment limits in past discussions. The restrictions affect CIC’s investments and fund flows into Australia, Jin said yesterday in the southern Chinese province of Hainan, where he’s attending the Boao Forum for Asia………………………………………..Full Article: Source

Democrats push Permanent Fund dividend protection in light of oil giveaway

Posted on 04 April 2013 by VRS  |  Email |Print

Eight Democratic legislators filed legislation to protect the Permanent Fund Dividend by placing the current dividend formula in the Alaska Constitution. With GOP leaders pushing an oil giveaway that is likely to cost Alaskans upwards of $1 billion or more a year, future legislators are likely to start cutting the Dividend to fund state revenue.
To protect against attempts to spend the Dividend in tight economic times, former Governor Jay Hammond proposed an initiative in 2002 that would have enshrined the Dividend in the Constitution, but Lt. Governor Loren Leman rejected it as not able to be done by initiative………………………………………..Full Article: Source

Securities regulator reluctant on China wealth fund job: sources

Posted on 11 March 2013 by VRS  |  Email |Print

The head of China’s securities regulatory body is reluctant to switch to the top job at the country’s $482 billion sovereign wealth fund as he has only been in the post for around 18 months and still has work to do, two independent sources said.
Reuters reported on Thursday that 56-year-old Guo Shuqing, a seasoned English-speaking chairman of the China Securities Regulatory Commission (CSRC), was tipped to head the state investment vehicle China Investment Corp (CIC) CIC.UL as part of a sweeping reshuffle of top financial portfolios by a new generation of leaders………………………………………..Full Article: Source

Libya’s pursuit of lost billions ‘in limbo’

Posted on 06 March 2013 by VRS  |  Email |Print

The head of Libya’s sovereign wealth fund says his efforts to recoup billions of dollars lost through sales of derivatives by Goldman Sachs and other financial institutions are now “in limbo” after the country’s prime minister moved to sack him last week.
Mohsen Derregia, head of the Libyan Investment Authority (LIA), told the Financial Times that he believed his pursuit of damages from foreign banks for suspicious deals forged under the regime of Muammer Gaddafi was one of the reasons behind the government’s efforts to replace him………………………………………..Full Article: Source

Citigroup arbitration win in $4 bln Abu Dhabi case upheld

Posted on 06 March 2013 by VRS  |  Email |Print

A Manhattan federal judge on Monday rejected a bid by the Abu Dhabi Investment Authority to overturn an arbitration panel’s ruling favouring Citigroup Inc. in a dispute over a $7.5 billion investment by the fund in the bank. US District Judge George Daniels rejected arguments that the October 2011 ruling by an American Arbitration Association panel, which reviews international disputes, ignored applicable law and was “fundamentally unfair” by depriving the Abu Dhabi fund of a chance to properly present its case.
The sovereign wealth fund had sought to rescind the November 2007 investment, or recover $4 billion in damages over what it called Citigroup’s fraudulent representations to induce it to invest………………………………………..Full Article: Source

Libya premier asks wealth fund head to step aside after firing

Posted on 05 March 2013 by VRS  |  Email |Print

Libyan Prime Minister Ali Zaidan said the head of the country’s sovereign wealth fund should step aside and allow his successor to take over after he was fired. “We are hoping that Mr Derregia will do the right thing and step down,” Prime Minister Ali Zaidan told reporters yesterday in Tripoli, referring to Mohsen Derregia, Chairman and Chief Executive Officer of the fund, who was fired recently.
Derregia is refusing to leave his post and hasn’t given a reason for his attempts to remain in his position. Ali Mohamed Salem Hebri, deputy governor of the Central Bank of Libya, is set to take over………………………………………..Full Article: Source

Citi wins Abu Dhabi arbitration challenge

Posted on 05 March 2013 by VRS  |  Email |Print

The Abu Dhabi Investment Authority lost its legal challenge to an 2011 arbitration ruling in favor of Citigroup Inc. (C) over the sovereign-wealth fund’s investment during the financial crisis.
Judge George Daniels of the U.S. District Court of the Southern District of New York denied the investment authority’s motion to vacate a ruling from 2011, which had denied Abu Dhabi’s claim for $4 billion in damages resulting from its investment in Citi. Abu Dhabi had invested $7.5 billion in Citi in 2007, just as the financial crisis began to unfold. The authority claimed the investment was made on the basis of fraudulent statements by Citi………………………………………..Full Article: Source

Alaska Permanent Fund amends investment guidelines in infrastructure

Posted on 05 March 2013 by VRS  |  Email |Print

The board of trustees at the Alaska Permanent Fund Corporation (APFC) amended guidelines for investing in infrastructure. Listed infrastructure is now an allowable infrastructure investment which will increase liquidity in the infrastructure portfolio. The board also approved the co-investment process for infrastructure investments.
According to APFC’s press release, “Our internal staff has put together a detailed review process for analyzing infrastructure co-investment opportunities that ensures each investment will see a thorough review,”said Board Chair Bill Moran………………………………………..Full Article: Source

Libya’s sovereign fund cooperating with SEC on Goldman probe

Posted on 04 March 2013 by VRS  |  Email |Print

The Libyan Investment Authority, the nation’s sovereign wealth fund, is cooperating with the U.S. Securities and Exchange Commission on its probe into the fund’s dealings with Goldman Sachs Group Inc. (GS)
The LIA is also considering legal action against Goldman Sachs, the fifth-biggest U.S. bank by assets, to recover losses on its investments, the fund said.
The SEC has been investigating possible violations of U.S. anti-corruption laws by Goldman Sachs for more than a year……………………………………….Full Article: Source

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