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NZ SWF chief Mackenzie: how I’m tackling riskier assets

Posted on 02 January 2014 by VRS  |  Email |Print

When you think or New Zealand its formidable rugby team is likely to your first association and its role in the financial world probably won’t register at all. So there must surely be some unique challenges when it comes to running a US$20 billion sovereign wealth fund from ‘the bottom of the world’.
Some would consider her fund’s relatively isolated location a hindrance, but Fiona Mackenzie, head of investments for the New Zealand Superannuation Fund (NZSF) couldn’t disagree more: ‘The fact we are further away means we have had to approach things a bit differently. I think the distance actually helps us. It gives us a bit of space to reflect and really focus on what is going to drive the portfolio and get away from some of the noise………………………………………..Full Article: Source

Director: Alaskans likely to get bigger dividends in 2014

Posted on 02 January 2014 by VRS  |  Email |Print

Alaskans could see a greater share of the state’s oil wealth when dividends are distributed this year. Permanent Fund Dividend Division director, Dan DeBartolo, tells the Anchorage Daily News that after several years of declining dividends, 2014’s payment “will likely go into the four-figure territory once again.”
The dividend amount is based on the five-year average of the fund’s statutory net income. In 2009, a recession year, the fund posted a $2.5 billion net loss in statutory net income. That helped drive the dividend down in recent years. But it will not affect the 2014 dividend………………………………………..Full Article: Source

Norway’s oil fund faces key strategy decisions

Posted on 30 December 2013 by VRS  |  Email |Print

Norway’s $815bn oil fund faces a crucial year with several big decisions expected on its strategy as a debate rages over whether the world’s largest sovereign wealth fund has become too big.
The oil fund will provide its new strategy for the next three years in the coming weeks. Then the new centre-right government in Norway will have its first chance to put its own stamp on the fund’s operation while the finance ministry will decide whether the fund should manage its money in a more active manner………………………………………..Full Article: Source

Kazkommertsbank, businessman may get control of Kazakh BTA Bank

Posted on 30 December 2013 by VRS  |  Email |Print

Kazkommertsbank and Kazakh businessman Kenes Rakishev may buy equal stakes in BTA Bank, acquiring control over Kazakhstan’s third-largest lender, Kazakh sovereign wealth fund Samruk-Kazyna said on Monday.
Samruk-Kazyna will retain a minority stake in BTA Bank, the fund said after reaching what it called a preliminary and non-binding deal with the investors………………………………………..Full Article: Source

Former treasurer Peter Costello to head Future Fund

Posted on 19 December 2013 by VRS  |  Email |Print

The Abbott government is likely to appoint Peter Costello as the permanent chairman of the Future Fund early in the new year. Costello, who was Australia’s longest serving treasurer and established the $90 billion sovereign wealth fund in 2006, was appointed acting chairman of the fund on Wednesday following the departure of David Gonski. The position was described as temporary, but it is understood that is not the intention.
Treasurer Joe Hockey and Finance Minister Mathias Cormann appointed Mr Costello for a “period of three months or until a permanent chairman is appointed”………………………………………..Full Article: Source

CIC may move North American headquarters to New York from Toronto

Posted on 18 December 2013 by VRS  |  Email |Print

China’s giant sovereign-wealth fund is considering moving its North American base to New York from Toronto, according to people with direct knowledge of the matter, in a potential shift that reflects growing interest at the fund in a recovering U.S. economy and doubts over its faltering investments in the Canadian energy and resources sector.
A move to New York would mark a change in strategy by China Investment Corp., which has $580 billion in assets under management. Although CIC has bought U.S. assets, it has stayed out of the U.S. partly to avoid criticism sometimes directed at China’s authoritarian government………………………………………..Full Article: Source

Temasek a ‘one-of-a-kind sovereign wealth fund’, says its chairman

Posted on 09 December 2013 by VRS  |  Email |Print

Temasek Holdings is usually lumped together with other sovereign wealth funds, yet it is a unique body that shares few characteristics with these organisations, said chairman Lim Boon Heng Thursday.
Mr Lim told a conference in Singapore: “Defining Temasek is not easy: We have not found another entity that does exactly what we do.” He ran through the many points of difference, which range from the investment company’s strategies to its relationship with the Government………………………………………..Full Article: Source

Government does not direct Temasek’s investment decisions: Temasek chairman

Posted on 05 December 2013 by VRS  |  Email |Print

It is commonly believed that sovereign wealth funds often invest on behalf of governments for strategic reasons and as an instrument of foreign policy, but Temasek Holdings does not share the characteristics of most sovereign wealth funds, said its chairman Lim Boon Heng.
In his first public speech as Temasek’s chairman, the former politician said the founding of Temasek was premised on a separation between the Government’s role as a policymaker and as a shareholder. The Singapore government is the sole shareholder in Temasek Holdings………………………………………..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

Create frameworks for sovereign wealth fund: WB

Posted on 26 November 2013 by VRS  |  Email |Print

Government needs to come up with a clear accountability framework for the Sovereign Wealth Fund proposed in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, a World Bank representative said.Addressing delegates at a consultative meeting in Harare last week, World Bank Director for Poverty Reduction and Economic Management in Africa Mr Marcelo Giugale said the idea of a Sovereign Wealth Fund was a good one if handled properly.
“Government should prioritise putting frameworks in place. There is need for a strong fiscal framework, a balanced budget and a transparency and accountability framework so that people know what is happening,” he said………………………………………..Full Article: Source

Excess crude account: Explain how $5bln got missing – Nyako tells FG

Posted on 26 November 2013 by VRS  |  Email |Print

Adamawa State Governor, Murtala Nyako has asked the Federal Government to give facts and figures on the alleged depletion of the Excess Crude Account. The governor said “semantics and grammar” being used against well-articulated observations and questions raised by Governor Rotimi Amaechi, are not what Nigerians expect to hear from government officials.
He spoke while reacting to the face-off between the Minister of Finance, Dr. Ngozi Okonjo-Iweala and his colleague-governor, over the actual balance in the account………………………………………..Full Article: Source

Nigeria: Excess Crude Account - Give statistics, not semantics, Nyako tells FG

Posted on 26 November 2013 by VRS  |  Email |Print

Governor Murtala Nyako of Adamawa State has challenged the presidency to give facts and figures on the alleged depletion of the Excess Crude Account, saying that the use of semantics against Governor Rotimi Amaechi was largely unhelpful. He spoke in response to the war of words between the Minister of Finance, Dr. Ngozi Okonjo-Iweala and Governor Amaechi over the alleged depletion of the ECA to the tune of $5 billion.
Governor Amaechi, chairman of the mainstream faction of the Nigerian Governors Forum, NGF, had at a retreat of the forum last week in Sokoto accused the Federal Government of depleting the ECA to the tune of $5 billion without the knowledge of the other tiers of the federation who are beneficiaries of the ECA………………………………………..Full Article: Source

Nigeria: Rivers defends Amaechi over Excess Crude Account controversy

Posted on 26 November 2013 by VRS  |  Email |Print

The Rivers State government has denied that the allegation that Governor Chibuike Rotimi Amaechi was involved in demanding that funds from the Excess Crude Account be shared to augment the shortfall in the Federation Account.
The Minister of Finance, Dr. Ngozi Okonjo-Iweala, had said that Amaechi was closely involved and actively participated in making requests to the Presidency for the account to be shared among the three tiers of government for the purpose of augmenting the regular allocations from the Federation Account whenever there was a shortfall………………………………………..Full Article: Source

Norway backs down from talk of splitting $800 bln oil fund

Posted on 20 November 2013 by VRS  |  Email |Print

Norway’s government backed down from pre-election talk it might restructure the nation’s $800 billion sovereign wealth fund as it instead defends the investor’s existing mandate.
“We aim at a predictable and stable investment strategy for the fund,” Siv Jensen, finance minister and leader of the junior partner in Norway’s ruling coalition of Conservative and Progress parties, said today in an interview in her office in Oslo. Asked whether the fund may yet be split, Jensen said “the government has no plans to do that. There will be no changes in the investment profile of the fund.”…………………………………Full Article: Source

$5bln not missing from Excess Crude Account

Posted on 20 November 2013 by VRS  |  Email |Print

The Federal Governmemt has denied media reports that N500 billion is missing from SURE-P funds, clarifying that N500 billion that was shared to states and local governments is the amount that is wrongly described as missing.
In a statement signed by the Special Adviser to Minister of Finance, Mr Paul Nwabuikp the minister explained that “the total expected funds for SURE-P from subsidy savings for the Federal, state and local governments is N816 billion from February 2012 to December 2013,” adding that “SURE-P started in February 2012.”…………………………………Full Article: Source

Reps to probe appointment of foreign firms to manage NSWF

Posted on 18 November 2013 by VRS  |  Email |Print

The House of Representatives has mandated its committees on Commerce and Justice to investigate the appointment of foreign institutions to manage the Nigerian Sovereign Wealth Fund (NSWF) to ascertain the risks involved.
Adopting the resolution of a motion moved by House Minority Leader, Hon Femi Gbajabiamila (ACN, Lagos) yesterday, the House noted that the federal government appointed three foreign financial institutions, namely UBS, Goldman Sachs and Credit Swiss, to manage the NSWF and expressed concern that the move “amounts to entrusting Nigeria’s savings, wealth, economic sovereignty and security in the hands of foreigners”………………………………………..Full Article: Source

Super fund directors chastised on conflicts

Posted on 15 November 2013 by VRS  |  Email |Print

Superannuation fund directors must be more diligent in disclosing their potential or actual conflicts of interest, the prudential regulator has warned. Speaking at the Association of Superannuation Funds of Australia (ASFA) conference in Perth yesterday, APRA member Helen Rowell highlighted the interrelationships between board members and external service providers.
“Increasingly, there are linkages between trustee directors and funds and the providers of services such as administration, advice and investments,” she said………………………………………..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

Excess crude account drops to $3bln; $1bln withdrawn for Oct allocation augmentation

Posted on 15 November 2013 by VRS  |  Email |Print

Following the withdrawal of one billion dollars for October allocation augmentation , the Excess Crude Account has dropped to three billion dollars. Minister of State for Finance, Dr Yerima Lawan Ngama, speaking after the Federation Accounts Allocation Committee (FAAC) meeting, in Abuja, Thursday, said that October revenue was short of the budgetary allocation of N465.057 billion.
“In the month of October 2013, the total mineral revenue that accrued to the federation account is 443.052 billion. This is a little short of N465.057 billion that is in the budget for the month of October 2013 hence we have a negative variance of N22.005 billion” he said………………………………………..Full Article: Source

Agent wants customs to supervise Crude Oil Account

Posted on 15 November 2013 by VRS  |  Email |Print

Following complaints by the Federal Government that the nation’s crude account is full of discrepancies, a veteran licensed customs agent, Mr. Olusegun Ologbese, has said the supervision of the crude oil account fund should be handed to the Nigeria Customs Service (NCS).
Ologbese, who is also the managing director and CEO of Ogbese Marine Services Limited said his call was based on the fact that the Nigerian National Petroleum Corporation (NNPC) has not been able to tell Nigerians how much it generates from crude oil over the years………………………………………..Full Article: Source

Angola: Govt names Deloitte to audit sovereign wealth fund

Posted on 14 November 2013 by VRS  |  Email |Print

The Angolan government appointed Deloitte consulting company as the independent auditor of the Angola Sovereign Wealth Fund (FSDEA), aimed to ensure the highest level of transparency in all areas that the wealth fund operates.
“The nomination of independent auditors represents an important landmark in the development of the fund and it reinforces its responsibility in face of state and civil society. Through the construction of solid foundations, FSDEA shall fully play its role in the socioeconomic development of the country”, reads the note from the wealth fund that reached Angop on Tuesday………………………………………..Full Article: Source

Norway’s $800 bln fund should lose independent ethics panel

Posted on 12 November 2013 by VRS  |  Email |Print

The ethics panel that decides which firms Norway’s $800-billion wealth fund should avoid should lose its independence and become part of the central bank, a report said, a shift critics said would undermine the fund’s ethical strategy.
The report by a government-appointed commission also called for more research on the performance of ethical investments, saying a lack of such studies made it difficult to assess how the fund’s stance compared with other strategies………………………………………..Full Article: Source

Angola names Deloitte to audit $5 bln sovereign wealth fund

Posted on 12 November 2013 by VRS  |  Email |Print

Angola, the largest crude oil producer in Africa after Nigeria, appointed Deloitte LLP as the independent auditor of its $5 billion sovereign wealth fund to ensure transparency.
The fund, headed by Jose Filomeno dos Santos, the eldest son of President Jose Eduardo Dos Santos, also appointed Artur Carlos Andrade Fortunato to the board of directors to oversee risk management, according to a statement from the fund today………………………………………..Full Article: Source

Sovereign wealth fund needed, Wall government told

Posted on 08 November 2013 by VRS  |  Email |Print

A new report put together by former University of Saskatchewan president, Peter MacKinnon, suggests the province should develop a sovereign wealth fund to manage revenues earned from non-renewable resources such as petroleum, potash, and uranium.
In a draft report the province mistakenly sent out attached to an unrelated press release, MacKinnon recommends the Saskatchewan Futures Fund be run separate from the government and that it not be used as a “rainy day” relief fund when the province runs into financial trouble………………………………………..Full Article: Source

Nigeria’s sovereign wealth fund ranked 44th on Transparency Index

Posted on 08 November 2013 by VRS  |  Email |Print

Nigeria’s sovereign wealth fund has been ranked number 44 on the global Sovereign Wealth Transparency rating for the third quarter of 2013. Known as the Linaburg-Maduell Transparency Index, it rates the sovereign wealth funds of countries in terms of how transparent they are to the public.
According to the rating for the third quarter released yesterday, the Nigerian Sovereign Investment Authority (NSIA) achieved a rating of ‘4′, to place 44th out of 51 sovereign wealth fund rated by the Sovereign Wealth Institute………………………………………..Full Article: Source

Excess crude account is intact - Finance Ministry

Posted on 07 November 2013 by VRS  |  Email |Print

The Federal Ministry of Finance has denied news reports that 1.3 billion dollars is missing from the Excess Crude Account, describing the report as “ totally inaccurate.”
In a statement signed by the Special Adviser to the Minister of Finance, Paul C Nwabuikwu, the ministry said “such reports are a misrepresentation of what actually transpired during the appearance of the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala before an open hearing of the joint Finance Committees of the Senate and House………………………………………..Full Article: Source

Only $1bln still in sovereign wealth fund, says Okonjo-Iweala

Posted on 06 November 2013 by VRS  |  Email |Print

Ngozi Okonjo-Iweala, the minister of finance and coordinating minister for the economy, on Monday told the National Assembly joint finance committees that only $1 billion have been paid into the Sovereign Wealth Fund.
Okonjo-Iweala, who appeared before the joint committees, however, admitted that the inability of states and local governments to agree was responsible for non-increase in the fund………………………………………..Full Article: Source

Cowell named one of top public fund manager

Posted on 06 November 2013 by VRS  |  Email |Print

State Treasurer Janet Cowell has been named to Sovereign Wealth Fund’s Public Investor 100 list for 2013. Cowell was ranked 21st, the second highest in the country after Joseph Dear, chief investment officer for the California Pubic Employees Retirement System.
The top position went to Sheikh Hamed bin Zayed Al Nahyan, managing director of the Abu Dhabi Investment Authority of the United Arab Emirates. The Sovereign Wealth Fund Institute is a global organization designed to study sovereign wealth funds and long-term governmental investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade, and other relevant issues………………………………………..Full Article: Source

CTPartners appointed by sovereign wealth fund of Kazakhstan

Posted on 05 November 2013 by VRS  |  Email |Print

The Sovereign Wealth Fund of Kazakhstan, Samruk-Kazyna, has engaged CTPartners in a strategic talent acquisition initiative to manage a number of senior leadership searches. These include HR management, risk management, financial control and change management (in the fund) as well as business development roles.
Samruk-Kazyna is a Sovereign Wealth Fund incorporated as a joint stock company in Kazakhstan. The Fund owns, either in whole or in part, most of the country’s key companies including the national rail system, Air Astana (a joint venture with BAE Systems) as well as both the long distance electricity network operator KEGOC and one of the main energy generators, Samruk-Energo………………………………………..Full Article: Source

The SWF of Kazakhstan Samruk-Kazyna appoints CTPartners to strengthen management team

Posted on 04 November 2013 by VRS  |  Email |Print

The Sovereign Wealth Fund of Kazakhstan, Samruk-Kazyna, has engaged CTPartners in a strategic talent acquisition initiative to manage a number of senior leadership searchesincluding HR management, risk management, financial control, change management, in the Fund, as well as business development in telecommunication, electrical energy industry and development of chemical industry.
Samruk-Kazynais a Sovereign Wealth Fund incorporated as a joint stock company in Kazakhstan. The Fund owns, either in whole or in part, most of the country’s key companies including the national rail system, Air Astana (a joint venture with BAE Systems) as well as both the long distance electricity network operator KEGOC and one of the main energy generators, Samruk-Energo………………………………Full Article: Source

Deutsche Bank hires MENA asset management co-heads to target SWFs

Posted on 24 October 2013 by VRS  |  Email |Print

Deutsche Bank has appointed Fahad Albader and Adel Dagher as co-heads of its asset and wealth management coverage for the Middle East and North Africa (MENA), eyeing business from sovereign wealth funds and family firms in the region.
Middle Eastern sovereign wealth funds, including the likes of Abu Dhabi Investment Authority (ADIA) and Kuwait Investment Authority (KIA), hold about $2 trillion in assets, luring large global banks and asset management firms to the region who are seeking a share of the business………………………………………..Full Article: Source

Samruk-Kazyna plans to lay-off thousands of administrative personnel

Posted on 24 October 2013 by VRS  |  Email |Print

Over 2000 administrative employees of companies within the Samruk-Kazyna Sovereign Wealth Fund will be laid off in 2013, the Fund announced. Samruk-Kazyna keeps on its effort to optimize the structure of its administrative pool of employees. 2356 administrative employees will be made redundant in 2013, according to the Fund’s statement.
Back in 2012 a total of 2210 employees were made redundant, notably 588 employees of KazMunaiGas Oil and Gas Company, 400 employees of Kazakhstan Temir Zholy National Railways Operator, 235 employees of KazAtomProm National Nuclear Company, 286 employees of Kazakhtelecom and 701 employees of other Fund’s subsidiaries………………………………………..Full Article: Source

Mubadala appoints Verno Capital to advise on Russia

Posted on 23 October 2013 by VRS  |  Email |Print

Mubadala Development Co. hired Verno Capital to advise on its co-investment with the Russian Direct Investment Fund, said Dimitri Kryukov, the fund’s founder. The advisory mandate is related to a $2 billion investment fund, which Mubadala, based in Abu Dhabi, set up earlier this year with the RDIF, Kryukov said in an interview in Moscow.
The Russian government established the RDIF in 2011 to lure foreign investment and wean the world’s largest energy supplier of its dependency on commodity exports………………………………………..Full Article: Source

Well-trained managers the SAFE way to manage assets

Posted on 21 October 2013 by VRS  |  Email |Print

Sources say other government agencies in Beijing such as China Investment Corp (CIC), the mainland’s US$480 billion sovereign wealth fund, are mulling similar plans. For LBS and even the British government, the deal shows mutual trust and, in the long run, may increase Chinese interest in investing in Britain. After all, some of those LBS graduates could go on to become top central bankers and government leaders.
The manager of the world’s largest foreign exchange reserves appears to have finally come to a valuable conclusion - if you want to manage your assets well, you must first know how to manage your people………………………………………..Full Article: Source

Norway orders review of $790 bln wealth fund

Posted on 16 October 2013 by VRS  |  Email |Print

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

Northern Trust gets new passive equity mandates from NZSF

Posted on 15 October 2013 by VRS  |  Email |Print

New Zealand Superannuation Fund appoints Northern Trust to new passive global equities mandates. The NZ$23 billion New Zealand Superannuation Fund has appointed Northern Trust’s asset management arm, a leading global provider of index, active and multi-manager solutions, to manage four new passive global equities mandates.
The mandates track global large cap, global small cap, developed emerging markets and developed REITs (real estate investment trust) market indices. Fiona Mackenzie, Head of Investments for the New Zealand Superannuation Fund, said around two-thirds of the Fund was invested passively, providing cost-effective access to diversified global share-markets………………………………………..Full Article: Source

Giant Kuwait fund picks ex-BAML pair for new London unit

Posted on 10 October 2013 by VRS  |  Email |Print

The Kuwait Investment Authority, which was part of a consortium that bid for UK water company Severn Trent earlier this year, has hired two former Bank of America Merrill Lynch bankers to a new London-incorporated infrastructure unit.
Kuwait’s sovereign wealth fund manages assets worth around $386 billion, according to the latest numbers from the Sovereign Wealth Fund Institute, and has had a presence in London since the 1950s based at Wren House on Carter Lane in the Square Mile………………………………………..Full Article: Source

Nigeria: Stanbic IBTC appointed as custodian to the SWF

Posted on 09 October 2013 by VRS  |  Email |Print

Stanbic IBTC has been appointed as the local custodian of the Nigerian Sovereign Wealth Fund (SWF) by the Nigeria Sovereign Investment Authority (NSIA). The appointment was made following a rigorous exercise by NSIA. Stanbic IBTC’s experience and its track record of providing integrated securities services solutions form a key part of the reason for this selection.
The bank’s role as local custodian of the Fund, which is the third largest Sovereign Wealth Fund in sub-Saharan Africa, embraces safekeeping, settlement and other related services for assets in the region of $1 billion. Its appointment will complement NSIA’s appointment of other fund managers for the Sovereign Wealth Fund………………………………………..Full Article: Source

Sovereign wealth funds are desperate to hire, but still unattractive

Posted on 07 October 2013 by VRS  |  Email |Print

Who would want to work for a sovereign wealth fund? Not many people, it would seem, as the government-owned goliaths – which are increasingly trying to build up their in-house investment teams – continue to struggle to attract the people they want to hire.
Most SWFs have a recruitment shopping list that includes exemplary academics from an Ivy League or Russell Group university combined with extensive experience working for an internationally recognised financial services organisation. However, they’re also unwilling to budge when it comes to remuneration, which means they’re struggling to compete with the private sector – and this is having an effect on their ability to hire………………………………………..Full Article: Source

Sovereign wealth funds are desperate to hire, but still unattractive

Posted on 04 October 2013 by VRS  |  Email |Print

Who would want to work for a sovereign wealth fund? Not many people, it would seem, as the government-owned goliaths – which are increasingly trying to build up their in-house investment teams – continue to struggle to attract the people they want to hire.
Most SWFs have a recruitment shopping list that includes exemplary academics from an Ivy League or Russell Group university combined with extensive experience working for an internationally recognised financial services organisation. However, they’re also unwilling to budge when it comes to remuneration, which means they’re struggling to compete with the private sector – and this is having an effect on their ability to hire………………………………………..Full Article: Source

Norway faces more pressure to broaden wealth fund’s scope

Posted on 03 October 2013 by VRS  |  Email |Print

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

AfDB backs sovereign funds for resource-rich nations

Posted on 02 October 2013 by VRS  |  Email |Print

Resource-rich countries should curb illicit financial outflows and set up sovereign wealth funds to manage windfall revenues from hydrocarbon and mineral exports, a senior African Development Bank (AfDB) official said on Monday.
Steve Kayizzi-Mugerwa, development research director at AfDB, said African countries could finance most of their development needs through their own resources without depending on external debt if they properly managed their wealth………………………………………..Full Article: Source

Uduaghan advocates effective management of sovereign wealth fund

Posted on 01 October 2013 by VRS  |  Email |Print

Governor Emmanuel Uduaghan of Delta State has charged the Federal Government on the proper management of the sovereign wealth fund to ensure effective participation of the various states in the country.
The governor, who said this weekend at the 2nd anniversary public lecture of the 5th Assembly in Asaba, explained that states were not against the establishment of the sovereign wealth fund per se but the way and manner in which it was being managed. He opined that states should be able to decide the amount to save and what to do with their savings since they are not appendages of the Federal Government………………………………………..Full Article: Source

Lessons from Norway

Posted on 30 September 2013 by VRS  |  Email |Print

A look at the Norwegian Oil Fund, one of the world’s largest Sovereign Wealth Funds, might prove instructive for Israel. The discovery of gas by Israel in the Mediterranean Sea has led to discussions about the establishment of a Sovereign Wealth Fund, while a wave of optimism regarding to the financial safety of the country has washed over the government.
For some perspective, a look at the Norwegian Oil Fund, one of the world’s largest Sovereign Wealth Funds, might prove instructive. Rubbing the varnished surface of the NOF, some scratches appear which may augur a morose future for Norway………………………………………..Full Article: Source

A repeat of 2008 could knock 30pct off oil fund, warns NBIM head

Posted on 30 September 2013 by VRS  |  Email |Print

Yngve Slyngstad, CEO of Norges Bank Investment Management, has warned that the country’s sovereign wealth fund could lose the equivalent of the Norwegian state budget should the world face another year such as 2008, when most asset classes fell in tandem.
Norway’s sovereign wealth fund, the Government Pension Fund Global, is managed by NBIM, headed by Slyngstad. The fund has been branching out into property, to diversify away from core equity and fixed income holdings………………………………………..Full Article: Source

Sovereign wealth fund must look long-term

Posted on 30 September 2013 by VRS  |  Email |Print

There are good reasons for the size of China’s foreign reserves, which since 2000 have ballooned into the world’s largest. Although China is the world’s largest importer of soybeans and iron ore, the country’s industrial processing, carried out mostly for large foreign multinationals by the huge, hard-working and skilful Chinese labor force, still dominates its foreign trade.
This fact makes China’s trade surplus quite insensitive to rises in the value of the yuan because of the large import content (of raw materials and components) in China’s exports………………………………………..Full Article: Source

Debt-wracked nations could learn from Norway, prime minister says

Posted on 27 September 2013 by VRS  |  Email |Print

Debt-laden European nations, the United States, and resource-rich developing countries could all learn from Norway’s tight-fisted spending habits and oil wealth management, the Scandinavian nation’s outgoing prime minister Jens Stoltenberg said on Wednesday.
Stoltenberg said Norway’s sovereign wealth fund - a now $700 billion fund with investments in bonds, more than 7,000 companies, and some real estate - was the main reason Norway sidestepped the “curse of oil” that has plagued many other resource-rich nations particularly in the developing world………………………………………..Full Article: Source

Questions on our sovereign wealth fund

Posted on 24 September 2013 by VRS  |  Email |Print

It was with bemused resignation that we read the reaction of the Peoples Democratic Party to the legitimate questions about the contracting out of Nigeria’s sovereign wealth to foreign firms. Though we were worried that a simple inquiry as to the proprietary of the transaction would evoke such vituperations and foul language from the ruling party, we felt it was vintage PDP.
Even if we are proved wrong eventually, our questions remain legitimate and appropriate. However, the PDP’s acerbic reaction only goes to further convince Nigerians that a party that mouths transparency and accountability but neglects and refuses to answer questions from the people needs to be shown the exit doors………………………………….Full Article: Source

SWF: New PDP Reps back APC

Posted on 24 September 2013 by VRS  |  Email |Print

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

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