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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

Citigroup Wins Custody Contract From Biggest Sovereign Fund

Posted on 06 May 2014 by VRS  |  Email |Print

Citigroup Inc. won a contract to deliver custody and securities-lending services to Norway’s $866 billion sovereign wealth fund, the world’s biggest, displacing previous provider JPMorgan Chase & Co.
The mandate from the fund “is believed to be one of the largest of its kind in the industry,” Citi said in a statement. The third-largest bank in the U.S. and Norges Bank Investment Management, which manages Norway’s fund, didn’t provide a value or duration for the contract. Thomas Sevang, a spokesman for NBIM, said the deal was “long term,” declining to comment further………………………………………..Full Article: Source

France’s GDF Suez, Suez Environnement deny report of stake swap deal with Spain’s La Caixa

Posted on 05 May 2014 by VRS  |  Email |Print

French utility GDF Suez and Suez Environnement on Sunday denied a report that Spanish group La Caixa would take a stake in the environmental services firm, replacing lead shareholder GDF Suez.
Suez competitor Veolia has started talks with Norway’s sovereign wealth fund, which could double the fund’s three percent stake in the group and give it a seat on the board. It also said Saudi Arabia’s sovereign wealth fund was interested in taking a Veolia stake. Norway’s fund has a 2.98 percent stake in Veolia, making it the fifth-largest shareholder after the sovereign wealth fund of Qatar, which has 4.51 percent, Thomson Reuters data show………………………………………..Full Article: Source

Norway reduces Russian investments from oil fund

Posted on 02 May 2014 by VRS  |  Email |Print

Norway’s chief executive said the country has decreased investments in Russia from its oil fund worth $860 billion, citing tensions in Ukraine, Reuters reported. At the end of 2013, Russia held $3.67 billion in stocks and government bonds from Norway’s Government Pension Fund Global (GPFG), which is the biggest sovereign wealth fund in the world.
After the conflict in Ukraine, GPFG’s investments in Russia have been reduced slightly in the first quarter, according to Yngve Slyngstad, head of GPFG and CEO of Norges Bank Investment Management. “In most other situations where there is market stress, we try to be a countercyclical investor,” Slyngstad told Reuters. “Countercyclical does not really work well when the risk factors are of a geopolitical nature.”……………………………………….Full Article: Source

National Development Fund of Iran agrees on cooperation with Azerbaijan’s Oil Fund

Posted on 02 May 2014 by VRS  |  Email |Print

The delegation of National Development Fund (NDFI) of Iran headed by Mr. Seyed Ghasem Hosseini, the Alternate Chair and Member of Board of Executive Directors of NDFI is finishing his visit to Azerbaijan.
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) informs that Mr. Hosseini held bilateral meetings with the SOFAZ management during the Baku visit on 28 April – 1 May………………………………………..Full Article: Source

1MDB says most of its funds invested overseas already back home

Posted on 30 April 2014 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) says substantial portions of its overseas funds have gradually made their way back to Malaysia to be reinvested in energy projects and real estate, and meet financial obligations.
The funds had been earmarked for the development and acquisition of specific assets, 1MDB said yesterday in response to allegations it had been involved in questionable deals, and amid calls that it should bring home RM18.1 billion parked overseas, as claimed by certain news reports. The sovereign wealth fund said the monies invested abroad is an interim measure, such as the funds in Cayman Islands that is regulated by the Cayman Monetary Authority………………………………………..Full Article: Source

“Ghana’s natural resource funds well-governed” - RWI

Posted on 29 April 2014 by VRS  |  Email |Print

The Revenue Watch Institute, (RWI), a New York-based non-governmental organisation with an office in Accra, has stated that, the natural resource fund that the Ghanaian government uses to manage oil revenues is relatively well-governed. A research released by the Institute indicates that the Ghana Petroleum Funds met 13 out of 16 good governance fundamentals.
A Statement from the RWI signed by Lee Bailey, Director of Communications said researchers concluded that the funds feature clear deposit, withdrawal and investment rules, effective oversight, and other essential attributes of good governance………………………………………..Full Article: Source

Kuwait MPs ask to quiz PM over mismanagement in SWF

Posted on 25 April 2014 by VRS  |  Email |Print

Three opposition MPs on Thursday sought to question Kuwait’s prime minister, accusing him of giving cash handouts to lawmakers and mismanagement in sovereign wealth fund investments. The request, filed by Riyadh Al Adasani, Abdul Karim Al Kundari and Hussain Al Mutairi, could lead to a no-confidence vote that may force Prime Minister Shaikh Jaber Mubarak Al Sabah’s dismissal.
The lawmakers said Kuwait’s sovereign wealth fund had posted losses in recent years in a number of major foreign investments, and despite that billions of dollars more were pumped into them………………………………………..Full Article: Source

The fascinating business empire behind Temasek Holdings

Posted on 23 April 2014 by VRS  |  Email |Print

Temasek is one of the world’s largest sovereign wealth funds with assets of more than S$200 billion and investments in over six continents. Temasek’s investments are classified under five different categories: 1) Financial services; 2) Telecommunication, media, and technology; 3) Transportation and industrials; 4) Life sciences, consumer, and real estate; and 5) Energy and resources.
Shipping, airlines, defence, power generation – you name it, Temasek has it. In Singapore, the fund’s most notable investment in this space is Keppel Corporation, which by itself is a huge conglomerate with business interests in shipbuilding, rig-building, construction, and property development among others………………………………………..Full Article: Source

Libyan wealth fund mulls hiring external managers

Posted on 22 April 2014 by VRS  |  Email |Print

Abdulmagid Breish, the chairman of Libya’s $66 billion sovereign wealth fund, said it plans to hire external companies to manage about $11 billion of its assets under a restructuring plan. The Libyan Investment Authority (LIA), valued at about $66 billion by Deloitte, will split its assets into three distinct funds starting as soon as next year, Breish said in an interview in London on Thursday.
“The LIA is preparing itself to come back to the international fold,” he said. “We will use best-of-breed fund managers, advisers and consultants,” he said, without specifying which companies will be invited to bid for the work………………………………………..Full Article: Source

Norway to examine return on $850bln wealth fund before restructuring

Posted on 10 April 2014 by VRS  |  Email |Print

Norway will wait to see whether property investments by its $850bn (€616bn) sovereign wealth fund pay off before considering new asset classes including infrastructure and private equity. “Whether we do it next year or the year after, that hasn’t been decided,” Paal Bjoernestad, state secretary in charge of the fund at the Finance Ministry, said. “We will come back to it – it’s not off the table.”
Prime Minister Erna Solberg’s Conservative-led government, in power since October, has backed away from pre-election talk of restructuring the fund and is now signaling any changes to the world’s largest sovereign investor are likely to be slow………………………………………..Full Article: Source

LIA presents its 2013 annual report to Audit Bureau

Posted on 09 April 2014 by VRS  |  Email |Print

The Libyan Investment Authority (LIA), Libya’s sovereign wealth fund, presented its 2013 annual report to the Audit Bureau last week, the Audit Bureau reports.The presentation was attended by, amongst others, the Audit Bureau head Khalid Shakshak, GNC LIA Committee member Asia Megherbi, Central Bank of Libya Governor Sadik El-Kabir, LIA head Abdulmajid Briesh, as well as representatives of the NOC, the Libyan Foreign Bank and the Administrative Control Authority.
During the presentation, the head of the LIA Abdulmajid Briesh reviewed the activities of the LIA and its international and domestic investments as part of the LIA’s 2013 Annual Report. Briesh also made a presentation of how the LIA would be transformed into a global sovereign wealth fund that would support the future of Libya………………………………………..Full Article: Source

Angola’s sovereign wealth fund appoints audit board

Posted on 09 April 2014 by VRS  |  Email |Print

Angola’s sovereign wealth fund, the Fundo Soberano de Angola (FSDEA), now has its first audit board that will guarantee the “highest level” of openness in its operations, it emerged on Tuesday.
This audit board was picked by the country’s finance ministry, with José Filomeno dos Santos, Chairman of the Board of Directors at FSDEA, describing the move as another critical milestone in the development of the country’s sovereign wealth fund………………………………………..Full Article: Source

1MDB yet to notify SSM of meeting date

Posted on 09 April 2014 by VRS  |  Email |Print

Companies Commission of Malaysia (SSM) is monitoring 1Malaysia Development Bhd (1MDB) which is yet to notify and update the former on the status of its AGM to table its overdue accounts, as at press time.
“We (SSM) are currently monitoring the situation,” it said. According to SSM, it has issued a notice to the sovereign wealth fund’s company secretary to notify and update it on the status of 1MDB’s AGM as well as on the tabling of its audited accounts for the financial year ended March 31, 2013………………………………………..Full Article: Source

Norway hands SWF ethical investment responsibilities to central bank

Posted on 09 April 2014 by VRS  |  Email |Print

The Norwegian finance ministry has adopted a report recommending changes to the way the country’s sovereign wealth fund – the Government Pension Fund Global (GPFG) – is run, including giving more power over its ethical investment policy to the fund managers at the Norwegian central bank.
Norges Bank Investment Management (NBIM), the arm of Norges Bank that runs the fund, will then be responsible for deciding which companies to exclude from its investments on ethical grounds. It will also be expected to report regularly on the scale of its investments in renewable energy and in emerging markets………………………………………..Full Article: Source

Dubai sovereign wealth fund takes effective control of Kerzner International Hotels

Posted on 07 April 2014 by VRS  |  Email |Print

The Investment Corp. of Dubai (ICD), which is the Sovereign Wealth Fund of the Emirate of Dubai, today announced it has taken over leadership and control of luxury hotel chain Kerzner International Holdings Limited (KIHL).
Founded by South African entrepreneur Sol Kerzner the hotel group built resorts in the Bahamas, and also the famed luxury Atlantis palm island resort in Dubai itself………………………………………..Full Article: Source

Dubai World hires Blackstone to look at debt options

Posted on 04 April 2014 by VRS  |  Email |Print

Conglomerate Dubai World has hired New York-based investment and advisory firm Blackstone Group LP to take a fresh look at its debt and how to make repayments to creditors, sources aware of the matter told Reuters.
“This is only for advisory purposes and to streamline the available options for the debt maturing in 2018,” a Dubai government source said, speaking on condition of anonymity under briefing rules………………………………….Full Article: Source

A check list for getting hired into a sovereign wealth fund

Posted on 04 April 2014 by VRS  |  Email |Print

Sovereign wealth funds are changing their recruitment strategies. Gone are the days of big recruitment sprees, with funds in the Middle East in particular blinded by brand names and experience in Western markets.
SWFs are still expanding, though. Norway’s Government Pension Fund Global is doubling the number of internal equities staff it has, while Singapore’s GIC and the Abu Dhabi Investment Authority (ADIA) are putting similar efforts into bolstering in-house expertise………………………………….Full Article: Source

Trinidad and Tobago appoints new sovereign wealth fund chairman

Posted on 28 March 2014 by VRS  |  Email |Print

Minister of Finance and the Economy Larry Howai (left) presents Dr Ralph Henry (right), newly appointed Chairman of the Heritage and Stabilization Fund with his instrument of appointment. Dr Ralph Henry has been appointed as the new Chairman of the Heritage and Stabilization Fund (Trinidad and Tobago’s sovereign wealth fund), a release from the Ministry of Finance and the Economy said.
Henry “has served as a lecturer at the University of the West Indies and as a consultant to a number of regional and international organizations which include the Inter-American Development Bank, the Caribbean Development Bank, the World Bank and the CARICOM secretariat to name a few. Dr Henry was also appointed the first Chairman of the Telecommunications Authority of Trinidad & Tobago.”…………………………………..Full Article: Source

Saskatchewan Premier Brad Wall says there’s no decision on when to launch Futures Fund

Posted on 24 March 2014 by VRS  |  Email |Print

Premier Brad Wall says he hasn’t decided whether his administration will begin directing resources to a new sovereign wealth fund before the provincial government has paid off its sizable debt. “You’re going to see legislation from this government very soon to establish that futures fund,” Wall told reporters at the legislature on Thursday.
Despite not setting aside funds for the program in the 2014-15 provincial budget on Wednesday, Wall maintains that the creation of the proposed Saskatchewan Futures Fund remains a high priority for the government………………………………………..Full Article: Source

Broten, Wall battle over futures fund

Posted on 24 March 2014 by VRS  |  Email |Print

Opposition Leader Cam Broten says he wanted to see a stronger commitment to a sovereign-wealth fund in the provincial budget. “Right now, the premier’s sort of trying to have it both ways,” Broten told reporters in Regina after the issue was raised in question period Wednesday. “It’s a rather ambiguous position.”
The budget says the government accepts recommendations made by former University of Saskatchewan president Peter MacKinnon last year that if resource revenues exceed more than 26 per cent of government revenues, the excess should go to paying off debt or to a Saskatchewan Futures Fund………………………………………..Full Article: Source

Temasek offer a sector re-rating event: Barclays

Posted on 19 March 2014 by VRS  |  Email |Print

Singapore investment company Temasek Holdings’ offer for Olam International could be a sector re-rating event, reflecting the potential for major shareholder groups to step in if soft commodity groups remain undervalued, said Barclays. This is especially since equity markets are too concerned with quarterly earnings numbers - often affected by volatile commodity markets - while strategic shareholders can take a long-term view on the key drivers of the business.
“The long-term drivers of constrained upstream productive resources and demand growth in emerging markets are secular trends, irrespective of the volatility in commodity markets,” said Barclays analysts in a report. “In our view, Temasek’s offer for Olam may reflect the potential for other shareholder groups to step in if they believe the equity market is not pricing in the earning potential.”……………………………………….Full Article: Source

Norway examines $850 bln wealth fund’s return measures

Posted on 19 March 2014 by VRS  |  Email |Print

Norway is examining new ways to calculate returns generated by the world’s biggest sovereign wealth fund in a move that could affect how much oil revenue the government uses in its budgets.
The Finance Ministry has ordered Statistics Norway to find out how different deflators, which adjust returns for inflation, will affect returns. The government is due next month release a white paper assessing the fund’s strategy and performance………………………………………..Full Article: Source

Norway lacks expertise to oversee wealth fund, Re-Define says

Posted on 17 March 2014 by VRS  |  Email |Print

Norway’s parliament should create an independent committee of financial experts to hold the fund and the Finance Ministry, which oversees it, accountable, Sony Kapoor, director of Re-Define, said.
“Few countries have as big a gap between exposure to the international financial system and expertise on it as Norway,” said Kapoor, a former investment banker who has advised several governments, including Norway’s, and groups such as the World Bank………………………………………..Full Article: Source

SOFAZ budget for 2014 to be revised

Posted on 14 March 2014 by VRS  |  Email |Print

The 2014 budget of the State Oil Fund of Azerbaijan (SOFAZ) will be revised, due to the formation of a closed joint stock company for effective management of the Shah Deniz projects and gas deliveries to Europe, SOFAZ CEO, Shahmar Movsumov told journalists on March 12.
In February, Azerbaijani President Ilham Aliyev signed a decree on establishment of a closed joint-stock company for effective management of the projects within the second phase of the Shah Deniz gas and condensate field’s development, expansion of the South Caucasus Pipeline, Trans Anatolian Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP)………………………………………..Full Article: Source

CIO of Singapore’s GIC sees added scope for opportunistic investments, alternatives

Posted on 13 March 2014 by VRS  |  Email |Print

The chief investment officer of Singapore sovereign wealth fund GIC Private Limited suggested Wednesday that the current low-yield outlook for traditional bond and equity investments has left the GIC taking a more tactical, opportunistic approach in managing its portfolio, and open to extending more mandates to alternative asset managers.
Lim Chow Kiat, GIC’s group CIO, said in the current environment expectations for the rewards of “simply holding diversified assets and waiting” have to be lowered………………………………………..Full Article: Source

GIC will maintain price discipline in its investing decisions

Posted on 13 March 2014 by VRS  |  Email |Print

GIC will maintain price discipline in its investing decisions, said the sovereign wealth fund’s chief investment officer Mr Lim Chow Kiat, at the annual conference of the Investment Management Association of Singapore on Wednesday afternoon.
This is one of the five principles that guide GIC in making its asset allocation decisions. Although the global market may be volatile, GIC still remains focused on fundamentals when investing the nation’s wealth………………………………………..Full Article: Source

Russian finance ministry to wait before resuming fx buys

Posted on 13 March 2014 by VRS  |  Email |Print

Russia’s finance ministry said on Wednesday it will wait for at least another two weeks before resuming daily foreign currency purchases to transfer excess revenues to one of its sovereign wealth funds, partly because the rouble is too weak.
The ministry indicated last month that it would convert around $5.8 billion to add to its $87 billion Reserve Fund, one of two sovereign funds financed from oil taxes. It needs to convert the funds into foreign currency and announced a gradual transfer that would involve it buying the equivalent of 3.5 billion roubles ($95.8 million) a day over three months………………………………………..Full Article: Source

Amendments planned in 2014 budget of Azerbaijan State Oil Fund

Posted on 13 March 2014 by VRS  |  Email |Print

An appeal has been made to the Supervisory Board to make amendments in 2014 budget of Azerbaijan State Oil Fund, Executive Director of the State Oil Fund Shahmar Movsumov told journalists, APA-Economics reports.
He said the amendment envisages allocation of funds to form $51 million capital of the new company established to manage gas projects under the decree of Azerbaijani President. “These funds are not envisaged in the budget. But this is presented by the State Oil Fund as direct investment and is a long-term investment,” he said………………………………………..Full Article: Source

OIDB could be turned into financial institution

Posted on 12 March 2014 by VRS  |  Email |Print

With no strategic pool of funds available for the oil sector, the Ministry of Petroleum and Natural Gas has proposed turning the Oil Industry Development Board (OIDB) into a financial institution for the petroleum sector similar to Power Finance Corporation for power sector. To provide funds for OIDB, it has also asked for a share in the oil cess.
The proposed sovereign fund is meant to provide insurance cover to Indian refineries using Iranian crude oil. OIDB is set to contribute around Rs 1,000 crore of this insurance pool, while the remaining amount would be contributed by public sector insurers. “For the insurance pool, we have already circulated a Cabinet note though a decision would only be taken after the new government comes to power,” said the official………………………………………..Full Article: Source

Norway’s PM Solberg cautious on wealth fund spending in 2015 budget

Posted on 11 March 2014 by VRS  |  Email |Print

Norway should not dig too deeply into its $850-billion sovereign wealth fund in the coming budget because this could overheat the economy and erode recent competitiveness gains, Prime Minister Erna Solberg told Reuters on Monday.
Her government, composed of the center-right Conservatives and the more radical right-wing Progress Party, begins today negotiations over next year’s budget, the first by the coalition since winning elections in September………………………………………..Full Article: Source

Ireland: Reinventing a national pension scheme

Posted on 11 March 2014 by VRS  |  Email |Print

It has been used to bail out the banking system and will soon change its name as part of a reorientation to support Ireland’s domestic economy with private equity and direct investments.
The NPRF, a so-called mini sovereign wealth fund managed by Ireland’s National Treasury Management Agency, was first set up by the Irish government in 2001 to deal with the prospect of an ageing population. Charlie McCreevy, Ireland’s minister for finance at the time, estimated that Ireland’s social welfare and public service pensions costs would rocket from 4.7% of gross domestic product to 12.4% by 2050………………………………………..Full Article: Source

Sovereign Wealth Fund, an administrative terrorism

Posted on 07 March 2014 by VRS  |  Email |Print

Ekiti State House of Assembly, the other day, trivialized an otherwise very serious constitutional issue by calling on the National Assembly to immediately commence impeachment proceedings against President Goodluck Jonathan. The impeachable offence cited? Compulsory deduction, at source, from the revenue allocation due to the states as contribution to an unconstitutional Sovereign Wealth Fund.
Following the resolution of Ekiti State House of Assembly, it is a matter of time for the remaining 35 state houses of assembly to sheepishly pass similar resolution………………………………………..Full Article: Source

Norway changes fund managers and completes ABS exit

Posted on 03 March 2014 by VRS  |  Email |Print

The $838 billion Norwegian Government Pension Fund parted ways with nine of its external fund managers last year, while taking on its first new external fixed-income managers since 2011 after a tough year in the asset class.
The Government Pension Fund, one of the world’s biggest sovereign wealth funds, is financed by Norway’s oil reserves. It grew from $636 billion to $838 billion last year, largely as a result of strong equity market returns………………………………………..Full Article: Source

Norway sovereign fund too big for central bank, report says

Posted on 26 February 2014 by VRS  |  Email |Print

Norway may need to separate its sovereign wealth fund from the central bank as its ballooning size makes proper oversight more difficult, the annual Norges Bank Watch report said.
With a fund of 5 trillion kroner ($830 billion) that’s “invested in a complex set of assets, we are concerned that the board’s capacity may be strained,” Knut Anton Mork, chief economist at Svenska Handelsbanken AB, Xavier Freixas, a professor at Universitat Pompeu Fabra, and Kyrre Aamdal, senior economist at DNB ASA, wrote in the report………………………………………..Full Article: Source

Norges Bank review calls on MPC to relinquish control of wealth fund

Posted on 26 February 2014 by VRS  |  Email |Print

A separate board should be appointed to supervise Norway’s state oil fund – the world’s largest sovereign wealth fund, which is housed within the central bank and currently overseen by the monetary policy committee – according to an independent report funded partly by Norway’s finance ministry.
The proposal to split responsibility for the oil fund and monetary policy at Norges Bank comes two days after Petter Johnsen, the fund’s chief investment officer for equities, told the Financial Times that it was “recruiting actively” in a bid to “double the size” of its 90-strong equity team………………………………………..Full Article: Source

Azerbaijan creates company on Shah Deniz projects’ management and gas delivery to Europe

Posted on 26 February 2014 by VRS  |  Email |Print

Azerbaijani President Ilham Aliyev has signed a decree on Feb. 25 establishing a closed joint-stock company (CJSC) for effective management of projects within the second phase of Shah Deniz gas and condensate field’s development, expansion of the South Caucasus Pipeline, Trans-Anatolian Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).
State Oil Fund of Azerbaijan (SOFAZ) has been instructed to provide an equity financing for the CJSC, which is under direct state ownership. The funds to be provided to the CJSC for financing the equity will provide a long-term investment on return conditions. CJSC’s proceeds received from all projects will be transferred to SOFAZ, until all of funds invested in the joint stock company are repaid………………………………………..Full Article: Source

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