Excess crude account - Govs insist on supreme court resolution. The 36 state governors, under the aegis of the Nigeria Governors Forum (NGF), yesterday lambasted the federal government over its attitude to the management of Excess Crude Account and resolved not to entertain further adjournments of the case pending at the Supreme Court.
Several attempts for an out-of-court settlement at the instance of the federal government had failed to appease the governors who described the deductions made by the federal government from the account as illegal. The governors stated this after their first meeting for the year, which was chaired by Rivers State Governor Rotimi Amaechi………………………………………..Full Article: Source

Mahmood H. Al-Kooheji, CEO of Bahrain’s Sovereign Wealth Fund Mumtalakat, talks about the need for SWFs to be open in their investment process as well what investments interest his own fund.……………………………………….Full Article: Source

Kazakhstan earmarked $ 10 billion out of the National Oil Fund [accumulating windfall oil revenues] to combat the financial crisis. However, the money has gone nowhere, a Tengrinews.kz journalist reports, citing President Nazarbayev as saying at a sitting in his Akorda Residence held to tally 2012 results.
“It’s easy to ask for money out of the National Oil Fund. The $ 10 billion allocated to combat the financial crisis is gone. There is no pay-off”, President said. According to President, “country’s banks are begging for the National Oil Fund’s money rather than working properly to earn money”………………………………………..Full Article: Source

The Abu Dhabi Investment Authority (ADIA) has appointed Gregory Eckersley as global head of internal equities, effective immediately. Eckersley will be responsible, alongside senior management, for developing and implementing investment strategy for the internal equities department, as well as overseeing the activities of all internally-managed portfolios.
His role will also include oversight of risk management and due diligence processes. Based in Abu Dhabi, Eckersley will report to Mohamed Darwish Al Khoori. Eckersley joins ADIA with 16 years experience at AllianceBernstein. From 2006 until his departure in 2011, he was responsible for managing AllianceBernstein’s global and large cap growth equity portfolios based in New York………………………………………..Full Article: Source

Khazanah Nasional Bhd managing director Tan Sri Azman Mokhtar has brushed off suggestions that flag carrier Malaysia Airlines should be taken private. “When you take something private, you have to pay above the market price. It does not put money into the company, that goes to the seller. But the operation needs money. Do those suggesting this realise this?
“Yes, we can take it private, but that doesn’t solve any problems. In fact you have to pump in more money because now you own 100%,” he told the media at the state investment firm’s annual review………………………………………..Full Article: Source

A new report has some advice for Canada when it comes to managing its oil wealth — be more like Norway. The study from the Canadian Centre for Policy Alternatives released Thursday calls for a more hands-on approach both provincially and federally toward developing the resource, divvying up its riches and reducing its environmental impacts.
Norway set up its Government Pension Fund Global in 1990. It is now the largest sovereign wealth fund in the world at $664 billion and continues to grow. By contrast, the Alberta Heritage Savings Fund, set up by the Lougheed government in 1976, contains only about $16 billion………………………………………..Full Article: Source

With job cuts being rolled out across the financial sector, many professionals are eyeing opportunities at large sovereign wealth funds, which are recruiting heavily, particularly in the Middle East. In my experience, however, it would be like signing up to the civil service.
In my eyes you would be mad to take a role at one of the large SWFs in the region – they are huge, unwieldy behemoths, where the decision-making process is arduous and wealth continues to expand regardless of their investment strategies………………………………………..Full Article: Source

The Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, appointed Gregory Eckersley as global head of its internal equities department, overseeing portfolios, risk management and the due- diligence process.
Eckersley joined ADIA from 1770 Capital Partners, a fund he jointly started in 2011 that focuses on global energy, mining and commodities, the Abu Dhabi-based sovereign wealth fund said………………………………………..Full Article: Source

The share of Chinese companies in the Kazakhstan’s Oil and Gas industry will exceed 40% in 2013, KazTag reports, citing an unidentified source.
“After KazMunaiGas EP acquires stakes in Kazakhoil Aktobe, Kazakhturkmunai and Mangistau Investments B.V. from KazMunaiGas, the China’s share will grow substantially China Investment Corporation and its controlled companies already own 30% in KazMunaiGas EP”, the source stressed……………………………………….Full Article: Source

Estimated costs for managing the State Oil Fund of Azerbaijan (SOFAZ) have been approved by President Ilham Aliyev.
Under the relevant order, SOFAZ administrative costs are limited to AZN 86.3 million. Their basis will include purchase of non-financial assets for AZN 62.177 million, including buildings and structures for AZN 60 million. Bank expenditures will amount to AZN 6.238 million, labour payment AZN 3.887 million, capital repair of administrative and managerial assets AZN 2.4 million………………………………………..Full Article: Source

Brazil tapped into its sovereign wealth fund and state companies’ profits in an effort to meet its 2012 fiscal target.
The Treasury will withdraw 8.85 billion reais ($4.3 billion) from its sovereign wealth fund and 4.7 billion reais in dividends from state-owned bank Caixa Economica Federal, according to a Dec. 31 decision published in today’s official gazette………………………………………..Full Article: Source

Russia has expressed willingness to help India in setting up a sovereign wealth fund. The chief of the $ 10 billion-Russian Direct Investment Fund (RDIF) said it would be a good idea for India to have a sovereign wealth fund.
“Generally, we believe that India has quite a bit of potential if it were to set up a sovereign wealth fund because India is a huge economy with tremendous promise and we need to allocate capital, within and outside India, through partnerships, which we believe would be a good idea,” RDIF Chief Executive Officer Kirill Dmitriev said……………………………………….Full Article: Source

My main contention was that the Philippines is currently suffering from “Dutch disease” or the adverse effects of a sudden rise of income from its export of labour and from a rise of confidence in its domestic economy. In this second part, I will discuss how we could govern and operate our own SWF.
The Santiago Principles established by 26 countries with SWFs known as the International Working Group or IWG in 2008 lays out a number of generally accepted principles and practices or GAPP to ensure that “the SWF arrangements are properly set up and investments are made on an economic and financial basis”………………………………………..Full Article: Source

Angola, Africa’s second-biggest oil producer, will publish the investment policy of its sovereign wealth fund in the first quarter of next year and appoint international auditors, Chairman Armando Manuel said.
The fund, announced on Oct. 17 with $5 billion in assets, will be established by the sale of 100,000 of Angola’s 1.8 million barrel-a-day oil output from companies including Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), BP Plc (BP/) and Total SA. (FP)……………………………………….Full Article: Source

Sovereign Wealth Fund (SWF) supervisory agency Nigeria Sovereign Investment Authority (NSIA) has received 300 applications for the post of Chief Investment Officer for the authority.
In a statement, the Special Adviser to the Coordinating Minister for the Economy and Minister of Finance, Paul Nwabuikwu, quoted the Managing Director of the NSIA, Uche Orji, as confirming this. According to Orji, the NSIA hopes to have the interviews early next year and have a CIO in place by early March………………………………………..Full Article: Source

A former governor of the Central Bank of Nigeria (CBN), Chief Joseph Sanusi, has told the federal government not to succumb to pressure to share the excess crude oil revenue among the three tiers of government.
Sanusi, who gave the advice in an interview with journalists yesterday in Lagos, said that spending all the money now could spell doom for the economy in future, but that they should be saved in the Sovereign Wealth Fund (SWF), for use on the rainy day. The excess crude revenue, which currently stands at $9.6 billion, was realised from crude oil sales above the budgetary crude oil price benchmark………………………………………..Full Article: Source

Aimed at acquiring big-ticket natural resources abroad, the creation of a Sovereign Wealth Fund (SWF) for India has been under the consideration of the finance ministry since 2008. In principle, the proposal to set up a SWF was cleared by a group of ministers on October 13, 2011, after which the matter came up for discussion during a recent meeting in the Prime Minister’s Office.
After detailed deliberations, the government is now of the view that it may be prudent to rework the concept with greater focus on mobilising resources from within, including public sector undertakings, by creating an attractive instrument of investment………………………………………..Full Article: Source

The Fundo Soberano de Angola (FSDEA) was launched in October to great fanfare, receiving global media coverage from the likes of the New York Times, CNN and Euromoney. Local and international journalists packed into the shiny new offices by Sagrada Família upmarket area in Luanda to admire the glass and steel spiral staircase, lacquered furniture and raw silk wallpaper.
They were given stylish press packs featuring black and white photographs of smiling Angolan children and told how the FSDEA would change Angola for the better and preserve the country’s great oil wealth for the use of future generations………………………………………..Full Article: Source

In the last few years, filing a suit at the Supreme Court has turned to the proverbial magic wand that governors of the 36 states brandish at will with a view to getting the Federal Government to succumb to their demands.
The Nigeria Governors Forum, NGF, now provides a veritable platform for them to galvanize funds to pay Senior Advocates of Nigeria (SANs) that often jostle to be included in the list of “appearing with”, a legal term that has become as lucrative as defending oil subsidy fraud suspects………………………………..Full Article: Source

Shahmar Movsumov, the Executive Director of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) met with USA delegation headed by Texas Comptroller of Public Accounts, Susan Combs on December 13, 2012.
Mr. Movsumov briefed the guests on the Fund’s activity, management of its assets, Sovereign Wealth Funds, major projects financed by the Fund. He talked about SOFAZ’s leading role in implementation of the Extractive Industries Transparency Initiative (EITI)………………………………………..Full Article: Source

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Nigeria’s 36 state governors want a $1 billion payout from the country’s crude oil savings account to fund projects, said Sokoto state Deputy Governor Mukhtar Shagari.
The governors want the federal government to disburse “at least about $1 billion from the excess crude account to help the state governments to meet up with their financial responsibilities as the year is coming to an end, because most of the states have contracts that are ongoing and are very important to the people of this country,” Shagari, who spoke on behalf of the governors, said today in an e-mailed statement from Abuja, the capital………………………………………..Full Article: Source

Despite of the ongoing litigation between the federal and state governments over the Excess Crude, the state governors are asking for the release of $1 billion from the account, to enable them to meet their contractual obligations in their various states.
Rising from a meeting in the Presidential Villa, Abuja, on Tuesday, under the National Economic Council (NEC) presided over by Vice-President Namadi Sambo, they resolved to seek the intervention of the Attorney-General of the Federation on the best way to achieve it without subverting the court process………………………………………..Full Article: Source

George Osborne confirmed the launch of the UK’s first Future Sovereign Wealth Fund, tasked with ‘creating and sustaining a world-class Royal Baby Expert Industry for at least the next 21 bloody years’. £6million has been set aside for much-needed infrastructure projects, such as widening the pavements outside Kensington Palace and making sure all hotels near posh universities can handle bookings up to 2030.
A further £3million will provide broadband connections, a baby name app, and a copy of ‘What to expect when you’re expecting’ to all journalism apprentices promising to ‘churn out any old shit, as long as it’s about royal babies’………………………………………..Full Article: Source

Olam International Ltd., the commodity trader that Muddy Waters LLC alleges is in danger of default, said banks hired to help sell $1.25 billion in bonds and warrants didn’t raise concerns about its credit position in discussions with shareholder Temasek Holdings Pte.
Credit Suisse Group AG, DBS Bank Ltd., HSBC Holdings Plc and JPMorgan Chase & Co “confirm that there was no mention of any concern regarding Olam’s credit position in their discussions with Temasek,” which is supporting the bond sale, Singapore-based Olam said in a statement on its website………………………………………..Full Article: Source

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About two months ago the Federal Executive Council (FEC), which includes the 36 state governors, approved the establishment of a Sovereign Wealth Fund SWF), but to run concurrently with the Excess Crude Account (ECA) for the time being.
The Fund is expected to provide a firmer legal basis to ring-fence Nigeria’s savings. It has three main aims: saving money for future generations, providing financing for badly needed infrastructure, and starting a stabilisation fund to defend the economy against commodity price shocks………………………………………..Full Article: Source

Libya’s sovereign wealth fund is to send a team to France next week to examine the prospects of investing in the troubled Petroplus oil refinery, the fund’s president said on Wednesday. “A team will travel next week to study the industrial data of the refinery and draw up a report, on the basis of which we will take a decision,” Mohsen Derigia said.
The mission comes after the Libyan Investment Authority denied on Monday that it wanted to invest in the Petroplus refinery in northwestern France………………………………………..Full Article: Source

After months of intense horse-trading between the Federal Government and governors of the 36 states of the federation on the possibility of reaching a consensus over plans by the Federal Government to transfer $1 billion from the Excess Crude Account to a new account to be known as the “Sovereign Wealth Fund,” the parties, yesterday, told the Supreme Court that the out-of-court settlement option failed to yield any dividend.
The governors had in a suit they filed before the apex court on October 23, 2011, sought an order declaring the planned creation of the “Sovereign Wealth Fund”, as illegal and unconstitutional………………………………………..Full Article: Source

The Federal Government and the 36 state governments have again failed to reach an out-of-court settlement in the Excess Crude Account suit. The latest episode was the 13th failed attempt to settle the dispute since the suit was filed in 2008.
This emerged on Thursday when the two parties appeared before a seven-member panel of justices of the Supreme Court to present the report on the proposed out-of-court settlement. At the last hearing in the matter on September 25, the apex court had granted an adjournment at the instance of the Federal Government to enable the two sides to settle the matter out of court………………………………………..Full Article: Source

Dubai’s ruler has trimmed the board of Investment Corporation of Dubai (ICD), the emirate’s investment arm, cutting it down to five members from six, state news agency WAM reported on Tuesday.
Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum will continue as the chairman and Dubai crown prince, Sheikh Hamdan bin Mohammed al-Maktoum, will remain vice-chairman, WAM said citing a decree by the ruler……………………………………….Full Article: Source

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If you’re an expat private equity professional looking for a position in the Middle East, sovereign wealth funds (SWFs) continue to offer a breadth of new roles. However, as new blood is brought in, an increasing number of the old guard are being forced out.
The recruitment spree by the Abu Dhabi Investment Authority in private equity is well-known – earlier this year, it announced plans to recruit 45 private equity professionals and last month brought in Colm Lanigan has head of principal investments. However, headhunters tell us that a large number of other Gulf sovereign entities are also hiring for private equity including the Qatar Investment Authority, the Emirates Investment Authority, and the Investment Corporation of Dubai……………………………………….Full Article: Source

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Europe’s biggest sovereign wealth fund, Norway’s Government Pension Fund, is set to take more active role in public policy and lobbying on behalf of other institutional investors, as efforts get underway to strengthen the buyside’s voice in regulatory affairs.
In a ‘discussion note’ published yesterday outlining its new approach, the €508bn Norwegian fund said: “Up until now, the sellside, represented by major banks, has been far more active on the advocacy front.” The Norwegian sovereign wealth fund, which is financed by oil revenues and managed by Norges Bank Investment Management, is so large it owns over 1% of all the companies listed on global markets………………………………………..Full Article: Source

Disagreements over which ministry is to house the country’s Sovereign Wealth Fund (SWF), into which proceeds from natural resource rents such as royalties are to channeled, have stalled establishment and running of the fund, according to the Economic Planning and Development ministry.
Government’s medium term plan for the economy launched last year identified the need to establish the SWF to effectively manage natural resource rents such as royalties. However, the unity government, whose establishment was precipitated by hackling over which political party would hold which portfolio, is yet to come up with a decision as to under which ministry the SWF should be placed………………………………………..Full Article: Source

Italy is seeking investments into its sovereign fund by Abu Dhabi Investment Authority and UAE capital, Giorgio Starace the Italian Ambassador to the UAE, told Gulf News on Sunday.
Italian Prime Minister Mario Monti will pay a one-day official visit to the UAE on November 20. He will hold talks with His Highness President Shaikh Khalifa Bin Zayed Al Nahyan in Al Ain and sign an agreement for further cooperation between the two countries in economic, political, military and cultural fields………………………………………..Full Article: Source

On Wednesday, Samruk-Kazyna National Welfare Fund summoned all the directors of national companies at one table. The Fund’s management and chief executives discussed how to improve corporate governance and make the holding not just operational but also strategic.
From now, the Fund’s functions as a shareholder and its representative in the Board of Directors will be clearly delineated. The boards of directors will no longer be informal bodies that make decisions, which are already pre-prepared by its manager and approved by the Fund………………………………………..Full Article: Source

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The State Oil Fund of Azerbaijan (SOFAZ) is negotiating with Russia’s VTB Bank within the ruble portfolio expansion, SOFAZ head Shahmar Movsumov told media today. “At present, the negotiations with VTB Bank are under completion,” Movsumov said.
According to the new investment strategy, the State Oil Fund of the Azerbaijani Republic began investing in assets denominated in Russian rubles on October 19, 2012. At present, SOFAZ’s investment portfolio includes only short-term deposit in the Russian “Gazprombank” to the amount of 3 billion rubles ($ 100 million)………………………………………..Full Article: Source

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Our investment bank is being rightsized, says UBS Chairman Axel Weber during our conversation in late September. “That’s the word I would use.” Just over a month later, UBS - in which Singapore’s sovereign wealth fund GIC is the single largest shareholder - announced the biggest shake up of any investment bank since the global financial crisis.
Having already cut more than 3,500 jobs over the last three years, the bank axed another 10,000 on Oct 30, 16 per cent of its total workforce of 64,000 - most of them from its investment banking operations………………………………………..Full Article: Source

Abu Dhabi’s Aabar Investments, the top shareholder in Italian bank UniCredit, has lost its chief financial officer and another top executive, sources familiar with the matter said.
The move signals the state-owned firm, which recently divested its stake in German carmaker Daimler, may be scaling back an investment spree which has seen it take stakes in high-profile global companies since its inception in 2005………………………………………..Full Article: Source

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The Norwegian government will put its sovereign wealth fund to use in future decades after the country’s oil wells have run dry. The sources of the fund’s money are Statoil dividends and taxes and royalty payments from independent oil companies that operate in Norway. Today, the fund manages about $650 billion, all of which is invested in assets outside of Norway in economic sectors that do not affect the local economy, allowing the country to control inflationary pressures and spread investment risk.
The investment strategy of Norway’s sovereign wealth fund, called the Government Pension Fund Global, is to invest against the business cycle. Since 2007, the fund has increased its stock portfolio holdings from 40 to 60 percent of total investments. At present, the sovereign fund owns one percent of all publicly traded companies in the world………………………………………..Full Article: Source

The domestic arm of China’s sovereign wealth fund will continue to be “an active shareholder” in the country’s state-owned financial institutions, including the four biggest state-run banks, as it pushes for structural reforms in the financial system, the China Securities Journal reported Tuesday, citing China Investment Corp. Chairman Lou Jiwei.
Mr. Lou, who also serves as chairman of Central Huijin Investment Ltd., the domestic arm of CIC, said in the report that the share prices of China’s Big Four banks — Industrial & Commercial Bank of China Ltd. , Bank of China Ltd. , China Construction Bank Corp. and Agricultural Bank of China Ltd. — don’t reflect the current strength of their businesses………………………………………..Full Article: Source

The fees charged by fund managers are front and centre this morning, with new figures from the Future Fund showing some pretty big bills are being racked up. The question is, what are the results for those fees?
Speaking of bills of a different nature, another columnist puts the financial cost of Hurricane Sandy into its proper context. And finally, one of Australia’s best political and economics journalists looks at the divergence between Labor’s public utterances on middle-class welfare and its private rhetoric………………………………………..Full Article: Source

Government of Singapore Investment Corp on Thursday named Mr Hsieh Fu Hua and two new members to its board as it announced the retirement of Richard Hu, the Bloomberg news agency reported.
Hsieh, who was previously CEO of the Singapore Exchange and will be replacing Wee Cho Yaw as chairman of United Overseas Bank next year, joined the GIC board on Thursday, the fund said………………………………………..Full Article: Source

Representative Mike Doogan is retiring as a lawmaker, but he’s at the center of an attack ad aimed at members of his own party. Several Democratic representatives are being targeted in the Republican Party’s ad, which uses this sound bite of Doogan from a press conference:
“The reason I want to put more money in the Permanent Fund: when the crash comes, we’re going to have more money to spend on government. The other frankly is to force the crash to happen sooner.”……………………………………….Full Article: Source

The Future Fund’s annual shows that it voted against 21 per cent of remuneration reports last year and rejected nearly a third of grants for executives that shareholders were asked to vote on.
The fund did not disclose the names of the companies whose salary packages it had voted against. But given that few large investors disclose how they vote on company resolutions, the annual report offers a window into attitudes on executive remuneration………………………………………..Full Article: Source

Brazil’s national development bank BNDES is in talks with the government to take a stake in the country’s sovereign-wealth fund in order to increase lending volumes next year.The BNDES, which has gotten numerous injections of cash from Brazil’s treasury, is seeking the sovereign-wealth fund stake as a way to increase its asset base, which would in turn allow it to loan more to state-controlled companies, Estado said.
The bank can only lend up to 25% of the value of its regulatory capital, currently at about 94 billion Brazilian reais ($46 billion), to a single company, and has already reached that limit in lending to some oil, mining and electric companies, Estado said………………………………………..Full Article: Source

The leadership of the Nigeria Sovereign Investment Authority (NSIA) established to manage the nation’s Sovereign Wealth Fund (SWF) faces a Herculean task given the controversy surrounding the establishment of the fund.
The eight member board to be led by former director of First Bank Plc, Mahey Rasheed, as the Chairman, with Uche Orji, a former Managing Director of JP Morgan, as the Chief Executive Officer was unveiled recently by the Minister of Finance and Coordinating Minister of the Economy, Dr. Mrs. Ngozi Okonjo-Iweala. Other board members are Jide Zeitlin, Bili Awosika, Arnold Akpe, Hassan Usman, Bisi Soyebo and Stella Ojekwe-Onyejeli………………………………………..Full Article: Source

The leadership of the Nigeria Sovereign Investment Authority (NSIA) established to manage the nation’s Sovereign Wealth Fund (SWF) faces a Herculean task given the controversy surrounding the establishment of the fund.
The eight member board to be led by former director of First Bank Plc, Mahey Rasheed, as the Chairman, with Uche Orji, a former Managing Director of JP Morgan, as the Chief Executive Officer was unveiled recently by the Minister of Finance and Coordinating Minister of the Economy, Dr. Mrs. Ngozi Okonjo-Iweala. Other board members are Jide Zeitlin, Bili Awosika, Arnold Akpe, Hassan Usman, Bisi Soyebo and Stella Ojekwe-Onyejeli………………………………………..Full Article: Source

Grayling has been charged with leading global PR for Angola’s new $5bn sovereign wealth fund. The firm secured the business, estimated at around $500K, following a competitive review earlier this year, revealed by the Holmes Report.
The Fundo Soberano de Angola (FSDEA) aims to ease the impact of commodity price volatility in Africa’s second-biggest oil producer, after an IMF loan three years ago………………………………………..Full Article: Source

The Azerbaijani government is to keep the Oil Fund (SOFAZ) as the main source of filling the state budget in 2013 - SOFAZ will provide 59.3% of budgetary revenues. The Bill on State Budget 2013 says that next year the state budget expects to receive revenue of AZN 19.15 bn (34.2% of GDP) and carry out expenditures for AZN 19.8 bn (35.3%). The budget deficit is expected to reach 656 million (1.1% of GDP).
The SOFAZ will transfer AZN 11.35 bn to the state budget, the Ministry of Taxes AZN 6.4 bn (AZN 2.279 bn on profit tax, AZN 1.776 bn on VAT and AZN 783 million on income tax), the State Customs Committee AZN 1.38 bn………………………………………..Full Article: Source

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The Kazakh government made some changes in the Board of Directors of Kazakh Sovereign Wealth Fund Samruk-Kazyna, the Fund reported on Friday. “According to the government decree No1256 from October 4, the Board of Directors of Samruk-Kazyna was changed,” the Fund said.
Kazakh Prime Minister Serik Akhmetov was appointed to the post of Board of Directors’ Chairman and Economy Development and Trade Minister Erbolat Dosayev joined the Board………………………………………..Full Article: Source

China Investment Corp., the nation’s sovereign wealth fund, favors larger hedge funds in selecting external managers for investing its capital, said Hua Fan, head of fixed-income investment at CIC.
CIC, which helps China manage the world’s largest foreign- currency reserves, will also avoid “over-diversification” by investing in too many funds, Fan said at an annual conference of the Chinese Finance Association in New York………………………………………..Full Article: Source