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2014 Looks to Beat 2013 in Sovereign Wealth Fund Transactions

Posted on 24 September 2014 by VRS  |  Email |Print

Increasingly, sovereign wealth funds are investing directly. The larger sovereign funds are getting involved in more deals, whether in institutional real estate, partaking as a group member in a company acquisition or buying more shares on the open market.
As a whole, the world of sovereign wealth funds is rapidly expanding due to numerous factors. One significant factor is the number of new sovereign wealth funds cropping up, particularly in Africa and the Americas……………………………………….Full Article: Source

Sovereign Wealth Funds - Friend Or Foe?

Posted on 22 September 2014 by VRS  |  Email |Print

A sovereign wealth fund (SWF) is an investment fund managed by a government agency on behalf of a nation or sovereign state. SWFs (or “sovereign funds”) generally have a mandate to invest globally in any asset class – stocks, bonds, commodities, currencies, real estate, etc.
SWFs have grown substantially in size, with total assets as of September 2013 amounting to $5.857 trillion, an increase of almost 80% from $3.265 trillion in September 2007. This enormous pool of capital gives SWFs a great deal of clout in financial markets. Since the majority of SWFs are located in the Middle East and Asia, whether these largely opaque entities are friends or foes of the nations where they invest has been the subject of hot debates from time to time……………………………………….Full Article: Source

Economists release new analysis of a ‘Scottish Oil Fund’

Posted on 19 September 2014 by VRS  |  Email |Print

A new economic analysis of a potential Scottish Oil or Sovereign Wealth Fund has found that Scotland could earn the same from the fund as current revenues from North Sea oil and gas tax receipts. The new economic outlook found that Scotland could have amassed a fund worth between £73.64 billion and £147.28 billion in 24 years, the same time as the Norwegian Oil Fund has been running.
The economic analysis found that the Scottish Oil Fund would bring in an annual income of between £2.9 billion and £5.8 billion respectively in today’s prices, the same amount as current estimated tax receipts from North Sea oil and gas revenues……………………………………..Full Article: Source

State funds give mixed views on managers

Posted on 15 September 2014 by VRS  |  Email |Print

Appetite for alternative investments is only set to increase among institutional investors globally, with long-term contrarian external managers very hard to find. But while the evolution of institutional investment models falls into a similar pattern, starting with traditional public market exposures before expansion by geography and asset class, state funds’ views on the use of external managers varies markedly, speakers revealed at our China Investment Forum.
Addressing the audience during a panel discussion on best practices in international investing, Tomas Franzen, chief investment strategist for the second Swedish national pension fund (AP2), outlined how it plans to insource all its investments bar alternatives within the next two years………………………………………..Full Article: Source

Tsunami of sovereign funds threatens world markets, say investors

Posted on 09 September 2014 by VRS  |  Email |Print

With returns on government bonds at rock-bottom prices, sovereign wealth funds are muscling into stock markets and other higher-yielding assets like real estate at a rate that private investors warn could destabilise the world economy.
Since central banks cut interest rates to record lows in a bid to shore up flagging economic growth, world governments have had to look further afield to grow public pension money or central bank currency reserves. But the resulting tide of money is in danger of distorting markets, causing prices to reflect political priorities rather than financial reality, insiders say. It’s also threatening to inflate the very price bubbles that central bank teams globally are working so hard to prevent, experts suggest……………………………………….Full Article: Source

All you need to know about Temasek Review 2014 in 7 charts

Posted on 09 July 2014 by VRS  |  Email |Print

Temasek Holdings released its latest annual report on Tuesday, a colourful 104-page report packed with facts, figures and financial indicators.
For those who don’t have time to pore through the entire Temasek Review 2014, we’ve picked out seven charts that best summarise Temasek’s performance last year: Temasek’s net portfolio value - the total value of its assets - rose 3.7 per cent from $215 billion last year to a new record of $223 billion as at March 31. However, $5 billion of this increase was an injection of fresh funds from the Finance Ministry, Temasek’s sole shareholder. ………………………………….Full Article: Source

Unrest, Muted SWFs Slow Middle East M&A Activity

Posted on 27 June 2014 by VRS  |  Email |Print

Most investment bankers in Dubai’s financial center will tell you their pipeline – the transactions they are working on – is robust and that the Middle East’s post-crisis deal climate is improving. However, data for the first six months of 2014 suggest the regional dealmaker’s optimism is still premature.
The value of Middle Eastern mergers and acquisitions sunk to its lowest level in almost a decade, Dealogic data show. Transactions involving a Mideast buyer or seller fell to $23.6 billion in the first six months of this year to date, down 13% compared to the same period in 2013. Europe, by contrast, saw deal activity rebound in the same period………………………………………..Full Article: Source

Mideast SWFs To Boost Emerging Markets Exposure

Posted on 26 June 2014 by VRS  |  Email |Print

Buoyed by oil prices above $100 a barrel and a growing confidence in the global economy, sovereign wealth funds in the Middle East expect to receive more funding this year, providing them with extra financial firepower to raise their investments into emerging markets and asset classes such as private equity and real estate, according to an Invesco study.
Latin America, Africa and China are likely to be the main beneficiaries of the continuing shift towards emerging markets by the world’s sovereign funds despite their historical preference for developed markets such as the United Kingdom, Invesco said in its survey of 52 sovereign investors who collectively manage $5.7 trillion in assets………………………………………..Full Article: Source

Bullish sovereign funds will look to emerging markets, says survey

Posted on 26 June 2014 by VRS  |  Email |Print

Middle East sovereign wealth funds will remain focused on emerging markets as they seek long term growth from India, Africa and Latin America, a new study has found. Alternative investments, including property and private equity will also figure largely, according to the Invesco Global Sovereign Asset Management Study from the US-based investment management company.
About 54 per cent of Middle East sovereign investors, which includes sovereign wealth funds (SWFs), state pension funds, central banks and government ministries, will increase their funding levels this year, driven by strong country surpluses and government support………………………………………..Full Article: Source

Over $6t sovereigns to drive home market growth

Posted on 26 June 2014 by VRS  |  Email |Print

Invesco first Invesco Global Sovereign Asset Management Study, an in-depth report offers insight into the complex investment behaviour of sovereign investors across the globe.
The unique study, which provides a framework to help understand the investment preferences and strategy of these funds, shows that the biggest growth story among global sovereigns today is an increase in a so-called ‘public-private partnership’ investment approach. An approach, which sees commercially, minded sovereigns seeking direct strategic investment in private companies to support GDP, job creation and skills transfer………………………………………..Full Article: Source

Sovereign wealth funds: Investing for the unforeseeable future

Posted on 24 June 2014 by VRS  |  Email |Print

Sovereign wealth funds control about $30tn, so knowing what they are doing or planning to do is very important for asset managers. Acquiring that information is difficult, however, since hugely rich entities mostly accountable only to their national governments do not tend to be particularly chatty.
The second annual Invesco sovereign asset management survey offers a few insights, in particular that sovereign funds are expecting strong flows of new money as government surpluses allow increased contributions. They also expect to use that new money to build their strategic asset allocations………………………………………..Full Article: Source

Private markets, public investors: The march of the sovereigns

Posted on 18 June 2014 by VRS  |  Email |Print

Sovereign wealth funds, typically set up by oil-exporting nations, have been around for decades, in the case of Kuwait since 1953. But their influence has increased in recent years, as China has adopted a similar strategy for investing some of its vast foreign-exchange reserves while existing funds have been fuelled by gains from high oil prices.
However, a new survey of assets held by public investors shows that such wealth funds are still outpunched by more traditional players. Central banks are the biggest holders of assets, followed by public pension funds, with sovereign wealth funds coming third………………………………………..Full Article: Source

Worth of Global SWFs swells to $6.46t in first quarter

Posted on 03 June 2014 by VRS  |  Email |Print

The total worth of all Sovereign Wealth Funds (SWFs) in the world jumped by $955 billion to $6.46 trillion in the first quarter of 2014 compared to same period last year and Abu Dhabi Investment Authority (Adia) is ranked second globally with $773 billion assets, revealed Sovereign Wealth Fund Institute in its latest update.
According to the Institute, an American organisation that tracks SWF performance, Adia made $7.93 billion of deals last year, behind only funds from Norway, which has $838 billion assets. Adia is one of the longest-established and largest sovereign wealth funds in the world………………………………………..Full Article: Source

Saudi Kingdom and sovereign wealth funds

Posted on 03 June 2014 by VRS  |  Email |Print

The increase in Saudi Arabian Monetary Agency’s (SAMA’s) net foreign assets to a record high of SR2.732 trillion in April shows the level of growth in the monetary system accelerated in tandem with the fiscal expansionary policy.
The challenge with using central bank assets for driving economic development is the fact they typically have to be held in liquid, relatively low-risk assets. The best example globally is US Treasuries — a large, deep, liquid market. The range of comparable assets in Saudi Arabia is limited. Part of the challenge here is the underdevelopment of the fixed income market and the near-absence of secondary trading………………………………………..Full Article: Source

World’s Largest Sovereign Wealth Fund Should Follow Canada’s Model

Posted on 29 May 2014 by VRS  |  Email |Print

The study, commissioned by Norway’s Ministry of Finance, “Review of the Active Management of the Norwegian Government Pension Fund Global,” took a close look at the management of the fund since the 2007-2008 financial crisis and found that in order to realize greater returns, the fund should take more risk and adopt the opportunity cost management model pioneered by the Canadian Pension Plan Investment Board (CPPIB).
“The Fund has been run extremely efficiently; everyone involved in its management is conscientious about delivering high-quality investment management services at the lowest cost,” says Andrew Ang, Ann F. Kaplan Professor of Business and Chair of the Finance and Economics Division at Columbia Business School. “However, we found that by reducing its exposure to risk since 2009, the Fund is likely missing out on opportunities to increase returns through a more balanced approach. The Canadian model would help improve that.” (Press Release)

LIA Chairman Abdulmagid Breish reviews his new vision for Libya’s sovereign fund

Posted on 14 May 2014 by VRS  |  Email |Print

In February 2013, the outgoing chairman of the LIA, Mohsen Derregia was removed by the then Prime Minister and head of the LIA’s Board of Trustees, Ali Zeidan, and a temporary head, Ali Hibri, the Deputy Governor of the Central Bank of Libya and LIA’s then Board member, was installed while the search begun for a long term replacement.
Today, experienced international Libyan banker, Abdulmagid Breish, is the new chairman of the LIA, inheriting an organization that has been operating under decades of dictatorship with little transparency or accountability………………………………………..Full Article: Source

SWFs have progressed on the road from Santiago but governance is still an issue

Posted on 08 May 2014 by VRS  |  Email |Print

When, in 2008, sovereign wealth funds met in Santiago de Chile, theycame together to adopt the Santiago Principles, covering issues of importance for SWFs including the setting of clear objectives, better coordination with macroeconomic policies, good corporate governance and transparent investment and risk management frameworks.
The name was given not just because the principles were finally agreed in Santiago de Chile, or because of the commitment to transparency and accountability of all SWF activities in the country. The name is also appropriate in that it recalls the pilgrims’ path to Santiago. It seemed that SWFs had taken that path before the global crisis of 2008-09………………………………………..Full Article: Source

Global fund assets to top $100 trillion on real estate boom, PwC says

Posted on 22 April 2014 by VRS  |  Email |Print

Global fund assets are projected to grow by 60% to $101.7 trillion by 2020, fuelled by the shift toward individual retirement plans, a surge in high-net-worth individuals in emerging markets and growth in sovereign wealth fund (SWF) assets, PwC says.
Rapid urbanisation and demographic changes, especially within emerging markets, will lead to substantial growth in the real estate investment industry over the next six years. This will prompt institutional investors to raise allocations in real estate more than in other asset classes, according to Real Estate 2020: Building the future, a report from PwC………………………………………..Full Article: Source

Sovereign funds wary of hidden emerging market exposure: Templeton

Posted on 26 March 2014 by VRS  |  Email |Print

Sovereign wealth funds see emerging market turbulence as a long term buying opportunity, but are wary of excessive exposure via some of their Western holdings such as luxury goods makers, a top investment official at Franklin Templeton said.
David Smart, who heads a team managing around $85 billion for sovereign funds and supranational clients at Templeton, said the $5 trillion sector can afford to ride out volatile swings thanks to its long-term horizons………………………………..Full Article: Source

Sovereign funds off to a slow M&A start in 2014

Posted on 18 March 2014 by VRS  |  Email |Print

Sovereign wealth funds have been much slower to pursue merger and acquisition deals so far this year after a bumper 2013, according to Thomson Reuters data.
Sovereign wealth funds (SWFs), which invest windfall revenues from oil and other exports for future generations, sealed $155 million of M&A deals in publicly listed markets up to March 10, less than a tenth of the value for the same year-ago period………………………………………..Full Article: Source

Regional sovereign wealth funds rack up $5.6bln worth of deals

Posted on 18 March 2014 by VRS  |  Email |Print

Middle East sovereign wealth funds completed seven major direct property deals worth a total of US$5.6 billion last year – and more big ticket purchases are expected over the coming months. The deals involved commercial, retail and hotel properties.
According to the property broker JLL, the Kuwait Investment Authority sealed the largest middle Eastern sovereign wealth fund deal last year when St Martins, the property division of the Kuwait government, agreed to buy the 13-acre More London office and restaurant complex near London Bridge in London for $2.7bn………………………………………..Full Article: Source

Swelling oil fund makes every Norwegian a ‘millionaire’

Posted on 03 March 2014 by VRS  |  Email |Print

A bumper 2013 for Norway’s sovereign wealth fund, which invests surplus oil revenue, has made every Norwegian a virtual millionaire in kroner. After posting its second best year, Norway’s so-called “oil fund” - the world’s largest - signalled a shift away from fossil fuels, notably over environmental concerns.
The fund’s market value rose US$200 billion last year to top 5 trillion kroner, according to figures released by the central bank on Friday. That almost makes every single one of the Nordic country’s 5.1 million inhabitants a millionaire in the local currency (S$211,300), at least on paper………………………………………..Full Article: Source

How the Saudi Arabian dream could lift solar stocks

Posted on 20 February 2014 by VRS  |  Email |Print

When Saudi Arabia runs out of oil, what will sustain the nation of 28 million? That is the question that the nation’s leaders have thought long and hard about. One solution is putting surplus petrodollars into a sovereign wealth fund, which would invest that surplus in good times and provide steady interest income when the oil runs out.
Saudi Arabia has done just that, and now has the second largest sovereign wealth fund in the world with assets of $675.9 billion. At its present size, however, assuming an 8% annual return, which would yield interest income of $54 billion, the sovereign wealth fund would not be able to compensate for Saudi Arabia’s current oil income of around $300 billion a year………………………………………..Full Article: Source

Assets under management by 2020: $100 trillion

Posted on 18 February 2014 by VRS  |  Email |Print

Asset management firms currently have about $64 trillion in investable assets, but that number is predicted to grow to more than $100 trillion by 2020, a compound annual growth rate of more than 6%. Driving the growth will be investments from South America, Asia, Africa and the Middle East.
According to PwC, the asset management industry managed 36.5% of all assets held in pension funds, sovereign wealth funds and insurance companies, and by wealthy people. The firm believes that by 2020 the industry could boost its share of assets under management to 46.5%………………………………………..Full Article: Source

SWFs and long-term development finance : risks and opportunities

Posted on 12 February 2014 by VRS  |  Email |Print

Sovereign wealth funds represent a large and growing pool of savings. An increasing number of these funds are owned by natural resource–exporting countries and have a variety of objectives, including intergenerational equity and macroeconomic stabilization.
Traditionally, these funds have invested in external assets, especially securities traded in major markets. But the persistent infrastructure financing gap in developing countries has motivated some governments to encourage their sovereign wealth funds to invest domestically………………………………………..Full Article: Source

KIC to build research centre amid restructure

Posted on 10 February 2014 by VRS  |  Email |Print

The new head of Korean sovereign fund KIC has embarked on the largest restructuring in the institution’s history to align it with international best practice as it strives to improve returns.
Ahn ‘Hank’ Hong-Chul, named chief executive at $72 billion Korea Investment Corporation last December, has announced plans to establish a research centre within the investment management division at its Seoul headquarters…………………………………..Full Article: Source

Does the United States need a sovereign wealth fund?

Posted on 21 January 2014 by VRS  |  Email |Print

Sovereign wealth funds are large investment companies owned by governments that manage an array of financial assets, from stocks and bonds, to income from natural resources and real estate. In order of holdings, the Monitor Group’s Sovereign Wealth Fund Assets Under Management Table shows that Norway, China, United Arab Emirates, Singapore, and Kuwait have the largest sovereign wealth funds.
Establishing a U.S. sovereign wealth fund to do the purchasing of long-term and risky assets would give the Fed room to maneuver in monetary policy, and restrict its job to steering the economy rather than making controversial portfolio investment decisions. And a U.S. sovereign wealth fund could stand as a bulwark against wild swings in financial markets………………………………………..Full Article: Source

Direct sovereign wealth fund transactions grow in 2013

Posted on 09 January 2014 by VRS  |  Email |Print

According to Sovereign Wealth Fund Transaction Database, in 2013, sovereign wealth funds completed 1,883 direct transactions with a total value of US$ 66.05 billion, an increase US$ 1.38 billion from 2012.
The number of direct transactions grew by 53.8% from 2012 and tripled the number of transactions compared to 2011. Emboldened sovereign funds amplified direct investments in a number of countries including Germany, Australia and China………………………………………..Full Article: Source

The three trends facing Asian SWFs in 2014

Posted on 06 December 2013 by VRS  |  Email |Print

The changing macro environment created by a post-QE world will create three major trends for sovereign wealth funds in Asia. That is according to Pascale Blanqué, chief investment officer with French asset management group Amundi.
Outlining how he expects the market to evolve in the coming year, Blanqué said the move to less accommodative monetary policies will not lead to the stabilisation many investors expect. ‘Normalisation is a false trend. We are seeing a shift from the classic interest rate framework to a larger framework where asset prices will continue to move one way or another,’ he said………………………………………..Full Article: Source

SWFs should rope in independent experts for risk, assets allocation

Posted on 18 November 2013 by VRS  |  Email |Print

Sovereign wealth funds (SWFs), which have increasingly assumed key roles in their domestic economies and global financial markets, should provide for real delegation to an independent operational manager within overall limits on risk and/or asset allocation, according to an International Monetary Fund (IMF) working paper.
“The assets under management by SWFs have grown rapidly over the last few years, driven by balance of payment surpluses and commodity prices,” IMF said in the paper. Upper-end estimates indicate total SWF assets of around $5tn. This figure may double count some sovereign assets, by including central bank assets that are already captured in official reserves, the paper said………………………………………..Full Article: Source

Futures fund report tabled

Posted on 15 November 2013 by VRS  |  Email |Print

Former University of Saskatchewan president Peter MacKinnon has released his report to Premier Brad Wall on a proposed Saskatchewan Futures Fund. The report provides a framework for the government to create a fund to permanently save a portion of the province’s non-renewable resource revenues to invest and grow for future generations.
MacKinnon was appointed by Wall in October of 2012 as part of the Saskatchewan Plan for Growth to examine and report on the efforts government could take to safeguard one-time non-renewable resource revenues………………………………………..Full Article: Source

Norway SWF Strategy Council to report next week

Posted on 06 November 2013 by VRS  |  Email |Print

The Strategy Council of the Pension Fund Global, Norway’s sovereign wealth fund, has been asked by the Norwegian Ministry of Finance to provide a report on responsible investing by next Monday 11 November.
The Ministry, and the fund, one of the biggest investors globally, relies on the Strategy Council for two key objectives: to “strengthen both the legitimacy and foundation of the long term investment strategy for the GPFG,” and “Through independent and critical reviews, the Council will give advice on how to develop the strategy further, increase transparency and encourage debate on important decisions related to the investment strategy for the Fund.”……………………………………….Full Article: Source

Sovereign wealth funds: Can they be community funds?

Posted on 06 November 2013 by VRS  |  Email |Print

The idea that governments should invest some of their wealth for public benefit has moved from utopian dream to part-reality with the advent of Sovereign Wealth Funds (SWFs). But are these SWFs really democratic entities?
Over the past five years, Sovereign Wealth Funds (SWFs) have become a prominent phenomenon in contemporary global capitalism. SWFs are government owned investment vehicles that take state wealth from excess reserves or commodity windfalls and invest it for returns in financial markets. They now number over 60 worldwide, the majority of which have come into existence since the year 2000……………………………………….Full Article: Source

Asset freezes concern sovereign wealth funds

Posted on 04 November 2013 by VRS  |  Email |Print

The unique subset of public investors, sovereign wealth funds, are concerned with the traditional financial, economic and risk questions pertaining to investment management: the strength of the U.S. dollar and the euro, financial stability, demographic trends and economic growth.
Another dimension that is particularly concerning for sovereign wealth funds is investment protectionism and asset seizures. These factors have prevented many sovereign wealth funds, especially ones from Asia and the Middle East , from taking board seats in larger investments……………………………..Full Article: Source

Global SWFs’ combined portfolio rises to USD6trn

Posted on 21 October 2013 by VRS  |  Email |Print

Global sovereign wealth funds now hold more than USD 6 trillion in investments with Middle East funds contributing 35% of the assets, according to latest data from Sovereign Wealth Fund Institute.
Collectively, the funds’ assets have risen by more than USD 1 trillion in nine months, suggesting that the richest fund continue to find investment opportunities in a low-growth economic environment. The SWF Institute data from 73 funds, however, is around USD 600 billion higher than estimates by Preqin Sovereign Wealth Fund Review, which recently pegged the SWFs’ combined assets at USD 5.38 billion………………………………………..Full Article: Source

Sovereign wealth funds - Friend or foe?

Posted on 16 October 2013 by VRS  |  Email |Print

A sovereign wealth fund (SWF) is an investment fund managed by a government agency on behalf of a nation or sovereign state. SWFs (or “sovereign funds”) generally have a mandate to invest globally in any asset class – stocks, bonds, commodities, currencies, real estate, etc. SWFs have grown substantially in size, with total assets as of September 2013 amounting to $5.857 trillion, an increase of almost 80% from $3.265 trillion in September 2007.
This enormous pool of capital gives SWFs a great deal of clout in financial markets. Since the majority of SWFs are located in the Middle East and Asia, whether these largely opaque entities are friends or foes of the nations where they invest has been the subject of hot debates from time to time………………………………………..Full Article: Source

Global sovereign wealth fund assets up 16pct

Posted on 11 October 2013 by VRS  |  Email |Print

Sovereign wealth funds globally have added over $750 billion to their total assets under management over the last year, from $4.62 trillion in 2012 to $5.38 trillion in 2013 with an increase of 16%, according to latest research from private equity research firm Preqin.
Asia-based sovereign wealth funds have shown some of the largest growth in assets under management, with the assets of these sovereign wealth funds growing, on average, by 19% since 2012. This is in comparison to the average 6% growth in assets under management exhibited by Middle Eastern sovereign wealth funds………………………………………..Full Article: Source

Sovereign wealth fund assets surpass USD 5 trln: Preqin

Posted on 11 October 2013 by VRS  |  Email |Print

Sovereign funds globally have added over USD 750 billion to their total assets under management over the last year, from USD 4.62 trillion in 2012 to USD 5.38 trillion in 2013, according to Preqin sovereign wealth fund review.
This growth, which is the largest annual increase in total sovereign wealth fund assets since Preqin began tracking this information, can be accounted for by both the number of new sovereign wealth funds formed over the last few years, as well as capital injected into existing sovereign wealth funds. Interestingly, Asia-based sovereign wealth funds have shown some of the largest growth in assets under management, with the assets of these sovereign wealth funds growing, on average, by 19% since 2012, it said………………………………………..Full Article: Source

Alberta’s Heritage fund under microscope

Posted on 11 October 2013 by VRS  |  Email |Print

A government committee dedicated to Alberta’s Heritage Savings Trust Fund faced some tough questions during a public meeting last week. The eight MLAs on the standing committee on the fund heard public concerns on the fund’s ability to help during disasters like the spring flooding, debt sustained because of the fund, when heritage fund dollars can be used and the ethical decisions surrounding Alberta’s global investments.
“We had very intelligent questions from the public, both in the room and online, and I think we were able to give them some substantive answers,” committee chairman and St. Albert MLA Stephen Khan said. “This $16.8 billion is not the government’s money, it’s for all Albertans.”……………………………………….Full Article: Source

Many SWFs still bound to politics, study finds

Posted on 09 October 2013 by VRS  |  Email |Print

Five years after the signing of the Generally Accepted Principles and Practices (GAPP), only six sovereign wealth funds have been considered compliant, according to a new study. A Swiss political consulting firm GeoEconomica reported that many funds, particularly Russian and Middle Eastern ones, were not meeting basic standards of “good governance, financial disclosure, and accountability.”
The Norwegian Government Pension Fund Global topped the study’s list, with a 94% rating on the 2013 Santiago Compliance Index, while Bahrain’s Future Generations Reserve Fund ranked at the bottom, at 24%………………………………………..Full Article: Source

Middle east sovereign funds not very transparent

Posted on 03 October 2013 by VRS  |  Email |Print

A bunch of the world’s sovereign wealth funds got together in 2008 to address a growing tide of concern about the political dimensions of their investments. The funds wanted to assure everyone that they were in fact very ordinary investors with no objectives outside of a financial return.
Five years on, however, a new report says many Middle Eastern funds still aren’t complying with the voluntary regulations that came out of that meeting: the so-called Santiago Principles………………………………………..Full Article: Source

Sovereign funds boosting alternative investments, Invesco says

Posted on 01 October 2013 by VRS  |  Email |Print

Sovereign wealth funds, which control about $6 trillion of wealth globally, are boosting investments in alternative assets like real estate and private equity to increase returns, a survey by Invesco Ltd. (IVZ) found.
The wide swings in equity prices and the “market-wide dissatisfaction with risk-return profile of equity investing,” together with low interest rates on fixed-income products, has pushed government-controlled funds to consider alternative assets to enhance growth, Invesco said in a report released in Dubai today. Alternative investments include international and local private equity, real-estate, hedge funds, infrastructure and commodities, according to the report………………………………………..Full Article: Source

Sovereign wealth funds: In the shadows of the shadows

Posted on 20 September 2013 by VRS  |  Email |Print

For many years, the global fund manager has had four names on the must-see list when he visits the Gulf: the Abu Dhabi Investment Authority, the Kuwait Investment Authority, the Saudi Arabian Monetary Agency and, more recently, and with an increasing sense of futility, the Qatar Investment Authority. But lately, a second tier of state-backed institutional wealth has started to emerge.
These entities are not necessarily any easier to pitch for mandates, but at least it makes for a little variety. This trend has been under way for years in Abu Dhabi, which has long bewildered the outsider trying to understand the delineation between its many sovereign entities………………………………………..Full Article: Source

More money than Thor: Changes to Norway’s gigantic sovereign-wealth fund will be felt around the world

Posted on 13 September 2013 by VRS  |  Email |Print

The Government Pension Fund Global, as it is officially known, or the Oil Fund, as everyone calls it, is probably the world’s biggest sovereign-wealth fund. It is currently worth about $760 billion and is expected to grow to more than $1.1 trillion by 2020.
The fund owns an average of 2.5% of every European listed company. It is a big shareholder in a raft of blue-chip companies, such as Royal Dutch Shell, HSBC and Apple, and has a 9% stake in BlackRock, the world’s biggest fund manager………………………………………..Full Article: Source

Sovereign wealth fund research in US

Posted on 09 September 2013 by VRS  |  Email |Print

Khalid Alsweilem, former chief counselor and director general of investment at Saudi Arabian Monetary Agency (SAMA), has been appointed a non-resident fellow at Harvard Kennedy School’s Belfer Center for Science and International Affairs. At the Belfer Center, Alsweilem will focus on the study of sovereign wealth funds, with a particular focus on Saudi Arabia’s reserve sovereign funds and their linkages to the real economy.
Belfer Center Executive Director for Research Gary Samore said Alsweilem would bring to the center a wealth of experience and insight into emerging markets, sovereign funds investments and economic policy, and important issues relating to oil and energy………………………………………..Full Article: Source

Making the most of sovereign wealth funds

Posted on 04 September 2013 by VRS  |  Email |Print

With a lack of transparency and political complications affecting the use of SWFs worldwide, it’s no wonder there are wide disparities when it comes to their correct use, writes Pierre-Emmanuel Iseux, Member of the Executive Board, La Compagnie Peter Hottinger.
Sovereign Wealth Funds (SWF) are government investment funds responsible for managing assets, usually with a long-term outlook. The assets under management come from many sources, but in most cases, the funds’ assets are funded by oil, gas or mining royalty income, or other trade surpluses of owner states………………………………………..Full Article: Source

Sovereign wealth funds see profits of 2012 diminishing

Posted on 29 August 2013 by VRS  |  Email |Print

The world’s biggest sovereign wealth funds may see their bumper profits of 2012 diminish this year as recent diversification into high-growth emerging markets starts to produce disappointing returns.
Their long-term horizon may allow many sovereign funds, which globally control $5 trillion of oil and other windfall assets, to weather losses. But the sheer size of these funds may increasingly limit the window of opportunities even when emerging markets recover………………………………………..Full Article: Source

2Q 2013 Linaburg-Maduell Transparency Index Ratings

Posted on 28 August 2013 by VRS  |  Email |Print

The second quarter results for 2013 on sovereign wealth fund transparency have now been released to the public. The Linaburg-Maduell Transparency Index was developed at the Sovereign Wealth Fund Institute by Carl Linaburg and Michael Maduell.
The Linaburg-Maduell transparency index is a method of rating transparency in respect to sovereign wealth funds. Pertaining to government-owned investment vehicles, where there have been concerns of unethical agendas, calls have been made to the larger “opaque” or non-transparent funds to show their intentions………………………………………..Full Article: Source

Sovereign wealth funds are approaching 6 trillion in assets

Posted on 26 August 2013 by VRS  |  Email |Print

Sovereign wealth funds are approaching US$ 6 trillion in assets. Increases in stock markets globally have helped lift the value of sovereign wealth assets.“Rising globally, sovereign wealth funds are springing up from Africa to certain states in the U.S.,” commented Michael Maduell, President of the Sovereign Wealth Fund Institute.
Asia and the Middle East hold the bulk of sovereign wealth fund assets. Those regions have time and flow on their side………………………………………..Full Article: Source

New Mexico has the money; Can it spend it correctly?

Posted on 23 August 2013 by VRS  |  Email |Print

New Mexico has America’s third-largest sovereign wealth fund, according to the Sovereign Wealth Fund Institute, an organization that monitors these government managed investment funds. Coming in at slightly more than $17 billion in size, it’s also the 31st largest such fund in the world. The Institute also ranks fund managers on how much integrity and transparency they exhibit in their fiduciary duties; New Mexico actually scores pretty high in this category as well.
That’s the good news. The bad news is the New Mexico Permanent Fund can only be used to invest in public education. But what if there was an opportunity to take a one-time piece of the fund, say 15 percent of the principle, and apply it over a four- to five-year New Mexico budget cycle, with some additional changes in the gross receipts tax, and then cut all New Mexico income taxes to zero, and do so on a permanent, sustaining basis?……………………………………….Full Article: Source

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