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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

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

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