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Future Fund names CIO, mulls staff additions

Posted on 02 September 2014 by VRS  |  Email |Print

Australia’s $94 billion sovereign wealth fund has promoted internally to fill the role of chief investment officer vacated by David Neal when he became managing director on August 4. The Future Fund is also likely to add two investment posts to its 40-strong team in the next few months.
New CIO Raphael Arndt was previously head of infrastructure and timberlands. He has responsibility for leading the investment team in developing the research, due diligence and selection and monitoring processes for assets and investment managers………………………………………..Full Article: Source

New GPIF investment manager drawn to cheap Japan mid-caps

Posted on 01 September 2014 by VRS  |  Email |Print

A new investment manager responsible for a small chunk of the $1.2 trillion portfolio held by Japan’s giant public pension fund says it expects to buy stocks in midsize companies that appear cheap relative to the broader market and have decades of steady profits.
Appointed in April to manage 100.4 billion yen ($967 million) of the Government Pension Investment Fund’s (GPIF) 20.8 trillion yen in Japanese equities, Eastspring Investments’ approach offers an insight into how the world’s biggest institutional investor’s money will be used………………………………………..Full Article: Source

Mumtalakat training push for executives

Posted on 01 September 2014 by VRS  |  Email |Print

Bahrain Mumtalakat Holding Company (Mumtalakat), the investment arm of Bahrain, has launched the Mumtalakat-INSEAD International Directors Programme, in partnership with international business school INSEAD. It is a corporate governance training initiative for its nominee directors appointed to the boards of its portfolio companies.
The senior executive training progamme was held under the patronage of Deputy Prime Minister and Mumtalakat chairman Shaikh Khalid bin Abdulla Al Khalifa, and INSEAD has designed the customised executive development and training programme to provide Mumtalakat’s existing and newly appointed directors with an overview of practical and tested frameworks as well as tools to refine judgment, sharpen decision making and augment their oversight abilities………………………………………..Full Article: Source

Norway oil fund to double number of top executives

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s $885bn oil fund is doubling the number of its senior executives in the latest sign it is restructuring itself to tackle its ever-increasing size and its shifting responsibilities as an investor. Norges Bank Investment Management, the arm of the Norwegian central bank that manages the fund, is creating a number of new positions to help manage its nascent property portfolio, as well as appointing three chief investment officers.
These three officers will be responsible for different investment strategies rather than specific asset classes as the oil fund merges its equities and corporate credit analysis functions………………………………………..Full Article: Source

Libyan sovereign wealth fund expected to hire new chief

Posted on 21 August 2014 by VRS  |  Email |Print

The Libyan Investment Authority, the violence-hit North African nation’s $60bn sovereign wealth fund, is likely to name senior World Bank executive Ahmed Ali Attiga as its new chairman by the end of the year, The Daily Telegraph gathers. Attiga, who is currently representing the World Bank’s International Finance Corporation unit in Jordan, hails from a high-profile Libyan family associated with King Idris, the ruler before the late Muammar Gaddafi.
Separately, it emerged on Tuesday that Goldman Sachs had withdrawn a summary judgment application it filed in April at the UK High Court, requesting the quashing of a lawsuit filed against the investment bank by the LIA. The state-backed investment fund had charged Goldman Sachs with mis-selling it second-rate investment products that cost the LIA billions………………………………………..Full Article: Source

Norway SWF Urged to Upgrade Oversight Before Diversifying

Posted on 19 August 2014 by VRS  |  Email |Print

The Labor Party in Norway has called for the $880 billion Government Pension Fund—Global to up its governance game before moving into private equity and infrastructure. Norway’s biggest political party has challenged the country’s $880 billion sovereign wealth fund to improve its governance before hiking exposure to riskier assets.
The Labor Party’s concerns centre on the fund’s purchase of a stake in Formula One prior to its planned IPO, initially planned for 2012. However, the listing was subsequently cancelled, leaving the Norway Government Pension Fund—Global with a private equity holding that its investment rules do not permit it to own………………………………………..Full Article: Source

Tanzania sets up special unit to scrutinise gas revenues and wealth fund

Posted on 15 August 2014 by VRS  |  Email |Print

Tanzania’s government is forming a special unit to monitor its natural resource revenues from major gas discoveries that promise to lift the country from poverty and free it from dependency on foreign aid in the coming decades.
The east African nation has enough natural gas, more than 50.5 trillion cubic feet discovered so far, to provide energy independence and bring significant export revenues. But Tanzania lacks experience in exploiting oil and gas, so relies on contracts with foreign companies such as Statoil of Norway and ExxonMobile to develop its immense offshore finds………………………………………..Full Article: Source

Norway defends how its wealth fund is run

Posted on 14 August 2014 by VRS  |  Email |Print

Norway Finance Minister Siv Jensen has said that a probe into the world’s biggest sovereign wealth fund’s purchase of Formula One shares shouldn’t be used as an excuse to tighten oversight of the investor. “We do have control mechanisms to oversee that everything is done in a proper manner - the control board is doing their job,” Ms Jensen said. “Governing of the bank and of the fund has served us very well.”
The US$890 billion fund, which is managed by the central bank, had to defend itself earlier this year after lawmakers asked if it had exceeded its investment remit when it bought a stake in the car racing group ahead of a planned initial public offering………………………………………..Full Article: Source

CIC Set to be ‘Picky’ and ‘Stingy’ with Asset Managers, Says Consultant

Posted on 14 August 2014 by VRS  |  Email |Print

Asset managers shouldn’t expect ‘easy money’ from China Investment Corp., even though the world’s fourth largest sovereign wealth fund last week reported a rise in net profit and a healthy increase in its top-line assets that grew to $652 billion in 2013 from $575 billion.
The giant sovereign wealth fund, which owns private equity firm Citic Capital, said its net profit increased to $86.9 million in 2013 from $77.7 billion a year before; it also reported a 9.3% return on its overseas investments in 2013, a decline from 10.6% in 2012. But China-based consulting firm Z-Ben Advisors cautions that the general “good news…may not be felt by asset managers attempting to win their mandates.”……………………………………….Full Article: Source

CIC Pays ‘Astonishingly Low’ Money Management Fees – Z-Ben

Posted on 14 August 2014 by VRS  |  Email |Print

Money managers hoping to win a coveted contract to manage a slice of China’s sovereign wealth have their work cut out for them. China Investment Corp., one of the largest sovereign wealth funds in the world with about $600 billion under management, on Friday reported a 9.3% return on its overseas investments in 2013, compared with a 10.6% return in 2012.
Consulting firm Z-Ben Advisors has drilled into the report and found some depressing news for money managers: the fees CIC is paying for its money to be managed are “astonishingly low.”……………………………………….Full Article: Source

SWFs sidestep fund managers with more direct deals

Posted on 12 August 2014 by VRS  |  Email |Print

The world’s sovereign wealth funds (SWFs) are allocating the highest volume of assets via direct deals and co-investing since the global financial crisis, research showed, as the mega-rich institutional investors increasingly bypassed fund managers.
A report from the SWF Institute showed that direct deals and transactions by SWFs topped US$50.02 billion in value during the first half of 2014, or 23.1% higher than the equivalent period a year earlier. This was the highest first half on record since the first six months of 2008, which yielded $51.05 billion worth of direct investment, much of which was attributable to banking bailouts, the SWF Institute said……………………………………Full Article: Source

Norway’s sovereign wealth fund to reveal voting intentions

Posted on 08 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund will start issuing public statements, to declare which way it intends to vote on issues being presented at companies’ annual meetings, the fund told the Financial Times. “We think this (move) will contribute to the transparency of how we manage the fund and assess questions for voting,” the paper quoted the institution as saying.
The fund, which is run by Norges Bank Investment Management, is known for questioning executive pay and accountability at companies in which it owns a stake………………………………………..Full Article: Source

Norway’s wealth fund voted against Fiat-Chrysler merger

Posted on 08 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund was the single largest shareholder to vote against Italian carmaker Fiat’s merger with its U.S. unit Chrysler, according to minutes of the Aug. 1 shareholder meeting.
Norges Bank, which registered for the shareholder meeting with a 2.15 percent stake, declined to say on Thursday why it voted against the tie-up or whether it would exercise its right as a dissenting investor to sell its shares in Fiat………………………………………..Full Article: Source

GIC manages pool of Govt funds, not just SSGS or CPF monies: DPM Tharman

Posted on 05 August 2014 by VRS  |  Email |Print

The GIC is not managing the Special Singapore Government Securities (SSGS) or CPF monies on their own, but a combined pool of Government funds including a significant sum of unencumbered assets, said Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam on Monday (Aug 4).
“That is why the GIC’s mandate is to take calculated investment risks aimed at achieving good, long-term returns on the Government’s funds, without regard to the Government’s liabilities,” he said. Speaking in Parliament, Mr Tharman added that the only way to avoid fluctuations in the value of Singapore’s reserves is to avoid taking investment risk. This could include, for instance, investing all of Singapore’s assets in cash-like instruments………………………………………..Full Article: Source

Kazakhstan Grapples With Reform of Sovereign-Wealth Fund

Posted on 05 August 2014 by VRS  |  Email |Print

When Astana launched its sovereign-wealth fund in 2008, authorities asserted that Samruk-Kazyna would modernize Kazakhstan’s economy and help attract foreign investors. Six years later, critics say the fund is bloated and lethargic, and privatization plans are stoking concerns among employees and analysts.
Modeled after Malaysian and Singaporean funds, Samruk-Kazyna is a central pillar in President Nursultan Nazarbayev’s economic and political system. The fund exerts influence over almost 600 state companies involved in, among other things, oil and gas (KazMunayGaz), railways (Kazakhstan Temir Zholy), telecoms (Kazahtelecom), energy (Kazatomprom), the state air carrier (Air Astana) and the postal service (Kazpochta). Last year it announced approximately $3.5 billion in profits. Overall, Samruk-Kazyna accounts for roughly 45 percent of Kazakhstan’s economy, Larissa Zyamzina, an advisor to the head of the fund, told business magazine Delovoi Kazakhstan in June………………………………………..Full Article: Source

S Dhanabalan rejoins GIC as board director

Posted on 01 August 2014 by VRS  |  Email |Print

Mr S Dhanabalan will rejoin the board of GIC as a director with effect from Friday, the investment company said on Friday morning. “We are very pleased to welcome Mr Dhanabalan to the GIC Board,” said GIC group president Lim Siong Guan in a statement.
“We will benefit from his wealth of experience in finance as we strive to invest well for present and future generations of Singaporeans.” Mr Dhanabalan, a founding board member of GIC when it was established in 1981, served on its board for more than 20 years before stepping down in 2005………………………………………..Full Article: Source

Nigeria SWF to manage $350m for national electricity buyer

Posted on 01 August 2014 by VRS  |  Email |Print

A Nigerian government agency charged with buying electricity in bulk from new power producers has engaged the country’s sovereign wealth fund manager to take custody of $350 million in liquid assets, as opposed to leaving it “sitting in the central bank” where it will “earn next to nothing”, according to the Nigerian finance minister.
The Nigerian Bulk Electricity Trading (NBET) was allotted the cash out of a $1 billion Eurobond issued by Nigeria at the start of July. They have now signed it over to the Nigeria Sovereign Investment Authority (NSIA) to manage it “in a manner that yields the required returns yet allows the funds to be readily available for any required Bulk Trader interventions”, according to NBET chief executive, Rumundaka Wonodi………………………………………..Full Article: Source

Norway Says $890 Billion Fund Likely to Follow EU Sanctions

Posted on 31 July 2014 by VRS  |  Email |Print

Norway’s government, which sets the strategy for the world’s biggest sovereign wealth fund, signaled it will probably abide by sanctions against Russia agreed by the European Union and the U.S. “In such a situation we have to react,” Foreign Minister Boerge Brende said in a statement today. The government of Norway, which isn’t an EU member, will now “study the measures carefully” before arriving at a final conclusion, he said.
EU governments agreed yesterday on their most sweeping sanctions against Russia to date, barring state-owned banks from selling shares or bonds in Europe, restricting the export of equipment to modernize the oil industry and prohibiting export of equipment with military uses………………………………………..Full Article: Source

Kazakh central bank fund seeks advisers on managing $110bn reserves

Posted on 29 July 2014 by VRS  |  Email |Print

Kazakhstan’s National Investment Corporation (NIC), a sovereign wealth fund managed by the country’s central bank, is looking to appoint consultants to help it pick external investment managers to manage around $110 billion of the country’s wealth.
The NIC manages Kazakhstan’s foreign reserves and says it is aiming to become one of the world’s largest institutional investors in alternative assets. The consulting mandate will also cover the $80 billion Kazakh National Fund, a domestic stabilisation fund, and $30 billion in foreign exchange reserves held by the central bank………………………………………..Full Article: Source

Call to use Exchange Fund for social policies rejected

Posted on 29 July 2014 by VRS  |  Email |Print

The Exchange Fund remains the last line of defense for financial stability and should not be used to support social policies or adopt a more aggressive investment strategy, the Hong Kong Monetary Authority chief said. “It is clearly not appropriate for the fund to adopt an overly aggressive investment approach, nor is it appropriate to directly compare the fund with other investment funds or sovereign wealth funds,” Norman Chan Tak-lam said yesterday in his column on the authority’s website.
He said the fund must remain highly liquid “and thus should not concentrate on highly volatile assets such as equities.”……………………………………….Full Article: Source

Alaska Permanent Fund hires four Non-U.S. stock managers

Posted on 23 July 2014 by VRS  |  Email |Print

The APFC has awarded four active Non-U.S. developed markets stock mandates at the conclusion of a several-month search. The mandates are for $100 million each, with a target date of July 25. Selective rebalancing within the Permanent Fund’s stock portfolio will provide the funds for the new mandates, and no managers will be terminated.
Staff recommended the search based on the strong core nature of the portfolio, citing a need for additional Non-U.S. managers to increase the diversification of the Fund’s holdings………………………………………..Full Article: Source

BRICS Bank Is Mostly a Jointly Managed Sovereign Wealth Fund

Posted on 22 July 2014 by VRS  |  Email |Print

Because the credit ratings of Brazil, Russia, South Africa and India are not robust enough to command borrowing on the capital markets at relatively low rates, and it is only China’s economy among the BRICS that can currently support massive borrowing on the capital markets to enable relatively low-interest lending, it again points to the BRICS Bank being a SWF-like entity.
SWFs generally do not borrow on the capital markets and instead use their own corpus of funds to invest in other countries, almost never their own country. Technically, some SWFs do have the ability to borrow, but rarely do so in practice………………………………………..Full Article: Source

State Oil Fund seeks insurer and cleaner for its skyscraper in Baku

Posted on 21 July 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) is seeking for the insurer and the cleaner for its skyscraper in Baku. The Fund informs that two tender procedures have been announced for this purpose. Both tenders relate to the new SOFAZ administrative building at add: 111A, Heydar Aliyev Avenue, Baku (22 administrative floors, 2 technical floors and underground parking with total area of 35,834 sq m).
The selected insurer should ensure voluntary insurance of administrative complex’s real estate and mandatory liability insurance of its operation. Bids accompanied by a bank guarantee for 1% of the requested value will be accepted till 6 pm on 1 September. The tender will be held on 2 September at 11 am in the Fund’s current residence at 24, Neftchilar Avenue………………………………………..Full Article: Source

Sound governance, clear mandate help Temasek beat market: report

Posted on 11 July 2014 by VRS  |  Email |Print

Sound corporate governance and a clear business mandate have helped Temasek Holdings and government-linked companies (GLCs) in Singapore perform better than the market, said a report on Friday. The study, entitled “The State as a shareholder: The case of Singapore,” was done before Temasek released its results.
On Tuesday, Temasek reported its portfolio rose to S$223 billion, from S$215 billion the year before. Its total shareholder return (TSR), in Singapore dollars, was 1.5 per cent on a one-year basis, mainly due to weakness in the Singapore and China markets………………………………………..Full Article: Source

Heritage fund or Slinky fund?

Posted on 10 July 2014 by VRS  |  Email |Print

The recent announcement that the Alberta Heritage Savings Trust Fund earned $2.1 billion in 2013 is great news, but don’t break out the champagne yet. While these record earnings will help relieve Alberta’s current budget deficits, they are almost meaningless in the long term — which is, or at least was, the whole point of having a heritage fund.
Why? Because under current government policy, virtually all of the fund’s realized annual earnings are transferred to general revenue for in-year spending. This means the fund’s value cannot grow as the market goes up………………………………………..Full Article: Source

GIC ‘needs to invest over long term’, cannot directly manage CPF

Posted on 09 July 2014 by VRS  |  Email |Print

Noting that some grassroots leaders and others have questioned why the Government does not get the GIC to directly manage Central Provident Fund (CPF) monies, Deputy Prime Minister Tharman Shanmugaratnam explained yesterday that should the GIC do so, it will need a very conservative portfolio without the ability to invest over the long term and ride out market cycles.
This is because the GIC would have to focus on ensuring that it is able to meet the Government’s full obligations on the CPF every year, said Mr Tharman, who is also Finance Minister. The conservative portfolio the GIC would have to manage would not invest much in equities and certainly not in real estate, he added…………………………………..Full Article: Source

Leakages, political bickering threaten Nigeria SWF goals

Posted on 09 July 2014 by VRS  |  Email |Print

The goals of Nigeria’s Sovereign Wealth Fund (SWF), which include providing a countercyclical rainy day fund, as well as savings for future generations is being threatened by political bickering and oil revenue leakages.
While the SWF announced last month that it made capital gains of N1.2 billion ($7.75 million) in the first quarter (Q1) of 2014 representing 0.5 percent return on total capital of $1.55 billion, the need to grow the fund through regular monthly transfers by the Government has failed to materialise…………………………………..Full Article: Source

Chan defends fund at length

Posted on 08 July 2014 by VRS  |  Email |Print

The market should disregard the short- term performance of the Exchange Fund, said Hong Kong Monetary Authority chief executive Norman Chan Tak-lam. HKMA yesterday revealed the latest official foreign currency reserve assets stand at US$320.9 billion (HK$2.5 trillion) at the end of June, up from US$320.2 billion in May.
Chan wrote in an article reviewing his work over the past five years that the fund - the reserve that the HKMA uses to defend the Hong Kong dollar - is not a sovereign wealth fund and the investment objective is not to pursue high returns.He stressed the necessity to hold enough highly liquid assets to meet short-term obligations…………………………………….Full Article: Source

Norway Outlines Staff Plan to Boost Real Estate Holdings

Posted on 08 July 2014 by VRS  |  Email |Print

The Norway Pension Fund-Global has begun recruiting for the team that will oversee an eventual 5% allocation of its $825 billion capital pool to real estate. Norges Bank Investment Management (NBIM), which oversees the asset allocation and implementation of strategy for the world’s largest sovereign wealth fund, has advertised three positions on its website—and the closing date is drawing near.
NBIM is looking for chief risk, administrative, and operations officers, who can choose to be located either in London or Oslo. All three positions would see the successful candidate become part of the fund’s Real Estate Leader Group……………………………………..Full Article: Source

Nigeria: Akwa Ibom top contributor to Sovereign Wealth Fund in 2013- MD

Posted on 07 July 2014 by VRS  |  Email |Print

Akwa Ibom State remains the highest contributor to Sovereign Wealth Fund in the Country for 2013, it has been revealed. The Managing Director/Chief Executive of the Nigerian Sovereign Wealth Investment Authority (NSIA), Mr. Uche Orji, who stated this Friday when he and his team paid Governor Godswill Akpabio a courtesy visit at Governor’s Office, Uyo, hinted that Akwa Ibom Government contributed the highest to the fund particularly counterpart funding.
Mr. Orji said they were in the state to partner the state government and invest in the state as well as be a part of the uncommon transformation of Governor Akpabio, hinting that the authority invests in real estate, agriculture, power and seaport, among others………………………………………..Full Article: Source

Appointing Najib’s brother to Khazanah ’smacks of NEPOTISM’

Posted on 07 July 2014 by VRS  |  Email |Print

The appointment of outgoing CIMB Group chief executive officer Datuk Seri Nazir Razak to Khazanah Nasional Berhad’s board of directors has drawn fire from Pakatan Rakyat. PAS central committee member and Kuala Krai Member of Parliament Dr Hatta Ramli described the appointment, effective Sept 1, as a daring move that smacks of nepotism by Prime Minister Datuk Seri Najib Razak.
“Nazir may have the credentials, but this is a government investment arm that we are talking about. “I’m speechless that the Prime Minister’s brother has been appointed as a board member, as if no one else is capable of the job,” he said………………………………………..Full Article: Source

The Abu Dhabi Investment Authority will be hiring in these areas in 2014

Posted on 02 July 2014 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA) has added over 100 employees across its equities, infrastructure and private equity teams during the past year and is planning to expand throughout 2014 in both the front and back office.
The world’s (second) largest sovereign wealth fund has just revealed its annual report and points to a year of expansion, where it added employees at a senior level and throughout across its various divisions. ADIA says that it will be hiring for mid-level recruits in private equity, will be “selectively” growing its infrastructure team, plans to add more people across its Asia ex-Japan portfolio and will also build its operations and risk team within its alternative investments arm………………………………………..Full Article: Source

Oil Fund’s relations with budget of Azerbaijan may change drastically

Posted on 26 June 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) can change the system of relations with the state budget, known as the system of annual transfers. The new format of SOFAZ ties is still considering by government experts.
The article is disseminated only on condition of close subscription. If you are interested, contact with marketing service of news agency Fineko………………………………………..Full Article: Source

How Alberta turned its Heritage Fund into a cash machine for big-spending politicians

Posted on 26 June 2014 by VRS  |  Email |Print

Alberta’s Heritage Savings Trust Fund stands as an excellent example of how governments waste opportunity, fritter away money and undermine the long-term interests of taxpayers, even as they claim to be working in the public interest.
On Tuesday the Fund revealed it earned $2.1 billion last year, a record 16% return on investment, and now has $17.5 billion in the kitty. This was treated as a triumph by provincial leaders………………………………………..Full Article: Source

Norway’s SWF Lays Out Three-Year Strategic Plan

Posted on 25 June 2014 by VRS  |  Email |Print

Norway’s $888 billion sovereign wealth fund plans to bring more of its real estate portfolio under in-house management as part of a move to broaden its portfolio. Laying out its plan for 2014-16 in a strategy report published this morning, Norges Bank Investment Management (NBIM)—the group responsible for the management of the Government Pension Fund Global—said it would add “new frontier markets” to its equity portfolio, as well as include more currencies in its fixed income allocation and take larger stakes in companies.
NBIM said it planned to invest 1% of the fund a year—roughly equal to $9 billion according to the fund’s current size—into private real estate markets between 2014 and 2016. The group also stated its intention to take on full ownership of more property investments………………………………………..Full Article: Source

Reforms open up opportunities in Chinese asset management

Posted on 23 June 2014 by VRS  |  Email |Print

China’s efforts to liberalise its currency and open its capital markets are also creating job opportunities for people in the asset management industry. This is particularly true of sales and investment management, recruiters say.
On the institutional side, investors such as the China Investment Corporation, the world’s fourth largest sovereign wealth fund, as well as the National Council for Social Security Fund, are diversifying offshore and increasingly outsourcing their portfolios to external managers………………………………………..Full Article: Source

China’s CIC Vows to Improve Management After Irregularities Uncovered

Posted on 20 June 2014 by VRS  |  Email |Print

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

Audits hit home at CIC

Posted on 20 June 2014 by VRS  |  Email |Print

China Investment Corp, the nation’s US$575 billion (HK$4.48 billion) sovereign wealth fund, said it is improving how it manages overseas investments after state auditors said mismanagement led to losses. The fund has drafted plans to rectify issues identified by the National Audit Office, analyzed the causes, and is amending related mechanisms and procedures, Beijing-based CIC said.
CIC will also strengthen due diligence for overseas deals and enhance post-investment management, and standardize the selection of external managers. An audit last year found dereliction of duty by managers and inadequate due diligence and management in 12 investments made abroad between 2008 and 2013, leading to losses………………………………………..Full Article: Source

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

Posted on 20 June 2014 by VRS  |  Email |Print

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

Japan readies to unshackle huge pension fund

Posted on 16 June 2014 by VRS  |  Email |Print

Japan’s government is readying to unfetter its huge public pension fund, freeing managers to dump low-yield sovereign bonds and go in search of higher, but riskier returns, in a move that could see cash flood global markets. The nation’s pension programme, into which almost all citizens pay, is supported by the world’s largest investment fund, worth a staggering USD 1.26 trillion equivalent to one-quarter of the country’s entire economy.
It towers over its nearest competitor, the USD 700 billion belonging to Norway — and is multiples of the USD 173 billion holdings of Temasek, the Singaporean sovereign wealth fund………………………………………..Full Article: Source

Billions at risk if tax act amended to allow investment panel, says PKR lawmaker

Posted on 13 June 2014 by VRS  |  Email |Print

Billions of taxpayers’ money are at risk of being used to buy stocks, bonds, debts and properties under a proposed amendment to a tax law allowing for an investment panel that could be as secretive as 1MDB, PKR lawmaker Wong Chen (PKR- Kelana Jaya) said.
“What if our tax money is used to buy shares to support and prop up a crony company? What if the investment panel decides to support the opaque and questionable 1MDB listing?” he said in referring to state-owned sovereign fund which is planning to raise US$4.6 billion (RM15 billion) through an initial public offering of its power-generation assets………………………………………..Full Article: Source

Saudi’s Shoura Council Debates Sovereign Wealth Fund Plan

Posted on 12 June 2014 by VRS  |  Email |Print

A proposal to set up a Saudi Arabian sovereign wealth fund attracted debate at a meeting of the Kingdom’s influential Shura council advisory body but failed to yield a result. A report by the council’s financial committee has said the National Reserve Fund, which would invest part of the Kingdom’s vast hydrocarbon wealth, would build on its financial stability.
Details of its investment strategy have yet to be disclosed publicly, but if the proposed fund is run like the sovereign wealth funds of other wealthy Gulf states such as Qatar and Abu Dhabi, it could mean a change in the way Saudi money flows through global markets………………………………………..Full Article: Source

Saudi sovereign wealth fund plan attracts debate in advisory body

Posted on 11 June 2014 by VRS  |  Email |Print

A proposal to set up a Saudi Arabian sovereign wealth fund attracted debate at a meeting of the kingdom’s influential Shura council advisory body but failed to yield a result, state media reported on Tuesday. A report by the council’s financial committee has said the National Reserve Fund, which would invest part of the kingdom’s vast hydrocarbon wealth, would build on its financial stability.
Details of its investment strategy have yet to be disclosed publicly, but if the proposed fund is run like the sovereign wealth funds of other wealthy Gulf states such as Qatar and Abu Dhabi, it could mean a change in the way Saudi money flows through global markets………………………………………..Full Article: Source

Restructuring Libya’s SWF

Posted on 06 June 2014 by VRS  |  Email |Print

The outlook for Libya is grim as it slides further into anarchy, but the African Development Bank believes that one promising area is the country’s formidable financial resources and a sovereign wealth fund that could be leveraged to help the economy.
In a recent report on Libya, the African Development Bank looked to “re-engage” with the country to seek a better understanding of economic and political developments amid political instability, threats to the survival and legitimacy of the state, and regional tensions over control of country’s rich natural resources………………………………………..Full Article: Source

President Park meets Singapore’s Temasek executives

Posted on 02 June 2014 by VRS  |  Email |Print

President Park Geun-hye met with executives from Temasek Holdings, Singapore’s sovereign wealth fund, and discussed expanding the fund’s investments in Korea and other matters of mutual interest. “I am glad that the Temasek Connection conference is being held in Korea this year, after it was postponed last year due to the deterioration of South Korea-North Korea relations,” said President Park.
“I hope the conference will be a good chance to understand Korean industries and culture, and to find new opportunities for investment in areas with high growth potential.”………………………………….Full Article: Source

Permanent Fund director finds way to get his employees a raise

Posted on 23 May 2014 by VRS  |  Email |Print

The Alaska Permanent Fund Corp. has figured out a way to get raises for its staff that other state employees are aren’t getting, said Mike Burns, the state-owned corporation’s executive director.
The $51 billion Alaska Permanent Fund provides earnings with which to manage the fund, as well as annual dividends to most Alaskans, but its budget still needs legislative approval………………………………………Full Article: Source

Alaska Permanent Fund Calls for Less Aggressive Private Equity Pacing Plan

Posted on 21 May 2014 by VRS  |  Email |Print

The Alaska Permanent Fund Corp. wants to cut its commitments to private equity in the fiscal year beginning July 1, dialing down the target amount slated for commitments to $800 million from the $1.23 billion a year earlier .
The $48.8 billion state fund’s views on private equity have tempered amid anxieties that a record amount of dry powder awaiting deployment will crowd out returns………………………………..Full Article: Source

CBN seeks compulsory contribution to SWF

Posted on 15 May 2014 by VRS  |  Email |Print

As the country continues to bask in the euphoria of the proclaimed economic growth, the Central Bank of Nigeria (CBN) has suggested that contributions into the Sovereign Wealth Fund (SWF) should be made mandatory to all stakeholders.
The Acting Governor of the CBN, Dr. Sarah Alade made the submission the submission in Abuja when she appeared before the National Conference Committee on Economy, Trade and Investment. She said if “contributions into the Sovereign Wealth Fund is made mandatory, the economy would function at the optimal level.”……………………………………….Full Article: Source

Give up control in state banks: Nayak panel to govt

Posted on 14 May 2014 by VRS  |  Email |Print

A Reserve Bank of India (RBI)-appointed panel, headed by former Axis Bank chairman PJ Nayak, has recommended radical reforms for Indian banks. It suggested the government transfer all its stake and powers in public sector banks (PSBs) to a separate entity, to be known as bank investment company (BIC).
The committee proposed the BIC be constituted as a core investment company under RBI regulations and the character of its business “make it resemble a passive sovereign wealth fund for government banks”. “The principle of proportionate voting rights should constitute part of the regulatory bedrock that fosters good governance,” the report said, adding for distressed banks, private equity funds, including sovereign wealth funds, should be allowed to take a controlling stake of up to 40 per cent………………………………………..Full Article: Source

Norway SWF axes JP Morgan as global custodian

Posted on 08 May 2014 by VRS  |  Email |Print

Norges Bank Investment Management (NBIM) has hired Citi to provide global custody services for the $850 billion investment portfolio held by Norway’s Government Pension Fund Global (GPFG), replacing JP Morgan Chase, which had inherited the mandate from Chase Manhattan Bank when it bought JP Morgan in 2000.
NBIM said the decision was made following a “comprehensive tender process” carried out using a request for proposals (RFP). A spokesperson for NBIM said today it hoped JP Morgan would replace Citi as its ‘back-up’ solution for global custody………………………………………..Full Article: Source

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