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Sovereign Wealth Funds Briefing - Category | Research more

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

Sovereign funds’ fortunes turn as emerging assets sour

Posted on 22 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

Saudi tops sovereign wealth fund assets in GCC

Posted on 14 August 2013 by VRS  |  Email |Print

Saudi Arabia ranks top in the volume of assets of sovereign wealth funds (SWFs) among the GCC countries at $641 billion, a report said quoting Moody’s Investors Service.
The kingdom is followed by the United Arab Emirates at $397 billion, Kuwait with $395 billion; Qatar with $175 billion; Oman with $14 billion and Bahrain $11 billion, according to the report published in the Arab News. The assets of GCC SWFs have grown alongside the rise in oil prices since the 2009, the report said………………………………………..Full Article: Source

Singapore wealth fund GIC sees western banks healing, could invest more

Posted on 05 August 2013 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC, the single biggest shareholder of UBS, said it believes the western banking industry is healing and it has the capacity to invest more in the financial sector.
GIC Private Ltd, which holds a 6.45 percent stake in UBS AG along with a minority stake in Citigroup, said both banks have seen an improvement in their profits and it is happy with the shift the banks have made to their business models………………………………………..Full Article: Source

SWFs are doing it for themselves

Posted on 05 August 2013 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) are increasing their exposure to direct investments in real assets, according to data from the Sovereign Wealth Fund Institute. In the last half of 2012, $600 billion worth of transactions were made by SWFs, with European and US commercial property among the most popular purchases. The report also found the push towards direct investment had been driven by the trend of bringing investment decisions in-house.
Bringing assets in-house has become more popular in 2012 and 2013. In May, the Abu Dhabi Investment Authority (ADIA) brought five percentage points of its considerable assets under its internal investment team, resulting in 25% of its assets now being managed internally, up from 20% a year earlier………………………………………..Full Article: Source

Sovereign wealth fund for Saskatchewan

Posted on 16 July 2013 by VRS  |  Email |Print

Peter MacKinnon is done his research on a report for Premier Brad Wall on the possibilities for a sovereign wealth fund for Saskatchewan. Now comes the writing.
Last fall, Wall announced the Saskatchewan Heritage Initiative. He tasked MacKinnon - a lawyer and former president of the University of Saskatchewan - with investigating using resource revenues for longterm savings through a sovereign wealth, or heritage, fund………………………………………..Full Article: Source

The $5.2 trillion sovereign wealth market

Posted on 12 July 2013 by VRS  |  Email |Print

Government-owned investment funds are becoming bigger and bigger, gobbling up massive stakes in Western corporations. These Sovereign Wealth Funds (SWFs) hold financial assets, such as stocks and bonds, in their portfolios. Foreign exchange assets, with many coming from oil and gas earnings, are used to purchase these financial assets.
Although the first such fund, the Kuwait Investment Authority, was established in 1953, SWFs didn’t rise in prominence until about 2005, when roughly 30 SWFs were created. The exact number of SWFs existing today is not known, given the lack of transparency in some countries. However, the Sovereign Wealth Fund Institute publishes a list of 69 SWFs, detailing each fund’s assets, year of inception, funding source, and the Linaburg-Maduell Transparency Index, which indicates how difficult it is to obtain information about the fund………………………………………..Full Article: Source

Interactive map created by SWF Institute

Posted on 05 July 2013 by VRS  |  Email |Print

The Sovereign Wealth Fund Institute has produced an interactive map, detailing where the world’s government-backed investors reside. The map also illustrates which funds are oil and gas dominated, such as those in Saudi Arabia, the United Arab Emirates, and Norway.
Asia dominates the non-oil and gas sovereign wealth fund (SWF) locations, with China alone holding more than $1.2 trillion across four funds. The full map can be seen here………………………………………..Map: Source

Mapping sovereign wealth funds

Posted on 02 July 2013 by VRS  |  Email |Print

The Sovereign Wealth Fund Institute has released a new map detailing the city location, asset size and funding source of sovereign wealth funds globally. As of June 2013, there are around $5.474 trillion in sovereign wealth fund assets.
Three years ago from June 2013, total volume of sovereign wealth fund assets amounted to US$ 4.107 trillion. In 3 years, sovereign fund assets grew by 33.3% far outpacing public pension asset growth rates……………………………….Full Article: Source

Temasek warns over liquidity shortfall

Posted on 25 June 2013 by VRS  |  Email |Print

Singapore’s wealth fund, Temasek, says the withdrawal of liquidity by central banks in the developed world – and the likelihood of higher interest rates – now represent “the key risk” for investors.
Rohit Sipahimalani, co-head of investments at the Singapore wealth fund, which has S$198bn ($155bn) under management, said the policies being pursued by the central banks would further slow growth in emerging markets, and potentially raise the prospect of social unrest………………………………………..Full Article: Source

Total sovereign wealth funds’ assets amount to $5,473bln

Posted on 14 June 2013 by VRS  |  Email |Print

According to the SWF Institute’s latest Sovereign Wealth Fund Rankings, the total amount of sovereign wealth funds’ asset under management is now $5,473bn, to which oil and gas related revenues contributed $3,193bn. The rankings show Norway’s Government Pension Fund on top of the list, with $737bn in asset under management (AuM). The fund gets its capital mainly from oil revenues, and it scores 10 points out of 10 in the Linaburg-Maduell Transparency Index.
It is followed by the Abu Dhabi Investment Authority’s fund ($627bn in AuM, origin: oil, and index: 5 points); China’s SAFE Investment Company (around $567bn in AuM, origin: non-commodity, index: 4); Saudi Arabia’s SAMA Foreign Holdings ($532bn, origin: oil, index: 4 points); and the Kuwait Investment Authority fund ($342bn, origin: oil, index: 7 points). At the end of 2010, 58% of SWFs’ funding came from oil and gas related revenues. Asia had the greatest amount of SWFs, namely 40%, followed by the Middle East with 35% and Europe with 17%. The Americas and Africa only had each 3% of the share………………………………………..Full Article: Source

Real estate overtakes commodities as top sovereign fund asset

Posted on 17 May 2013 by VRS  |  Email |Print

Real estate topped the list of sovereign wealth funds’ investments last year, overtaking commodities and financial services, according to Institutional Investor’s Sovereign Wealth Center.
Properties made up 26 percent of investments by these funds last year, up from 14 percent in 2011, according to the center’s report on investment trends by the funds released today. That’s followed by financial services and commodities, each accounting for 23 percent, down from about 30 percent a year earlier, it said………………………………………..Full Article: Source

30 biggest sovereign wealth funds in the world

Posted on 16 May 2013 by VRS  |  Email |Print

Sovereign wealth fund is a state-owned investment fund comprising of financial assets such as stocks, bonds, property, precious metals and other financial instruments that are invested globally.
Some countries have created SWFs to diversify their revenue streams.The amount of money in these SWF is substantial. Let’s take a look at some of the biggest sovereign wealth funds in the world……………………………………Full Article: Source

Sovereign wealth funds in commodity-rich fragile states

Posted on 14 May 2013 by VRS  |  Email |Print

Developed and developing countries alike have established sovereign wealth funds (SWFs) to manage surplus state income. These funds have great potential to help fragile states manage high revenue inflows from lucrative natural resources and protect their economies from volatility and unsustainable investments.
But governments of fragile states that have recently established an SWF or are considering creating one should proceed with caution: to be successful, SWFs must be well managed, subscribe to international standards, make wise investments, and adhere to strict regulatory frameworks. Not all fragile states are capable of doing those things………………………………………..Full Article: Source

Sovereign wealth funds in GCC focus more on local investments

Posted on 13 May 2013 by VRS  |  Email |Print

While they continue to reduce dependence on energy resources, GCC countries are increasingly spending locally and redirecting a greater portion of foreign investments back into the region. According to a report by KPMG specialists released on Thursday, the shift is due to the debt problems afflicting the European Union and the Arab Spring, among other factors.
Invesco’s Middle East Asset Management study for 2012 suggests that the value of assets allocated to sovereign wealth funds (SWFs) invested locally have increased by 10 per cent from 2011. Although GCC economies’ revenues increased by nearly 30 per cent and as the West are looking to tap into state-owned funds in the region, assets allocated to SWFs that invest abroad have declined by 1 per cent……………………………………Full Article: Source

KPMG issues report on sovereign wealth funds

Posted on 10 May 2013 by VRS  |  Email |Print

KPMG announced the publication of a report on the Sovereign Wealth Funds in the Middle East. The report represents a collection of articles prepared by KPMG specialists throughout the Middle East and provides insight into the recent trends and developments in SWF investment strategies specifically in the UAE, Qatar and Kuwait. The report also looks at the evolution of SWFs in the Middle East as the region looks to reduce its dependence on energy resources.
Vikas Papriwal, Head of SWFs and Private Equity said “It is clear that the global challenges of the last three years have forced organizations around the world, including SWFs, to evolve. While the investment objectives in the region have certainly changed, including geographical and sector focus, diversification remains a key and common objective for Middle Eastern SWFs as countries in the region seek to reduce their reliance on energy, and oil and gas prices.” (Press Release)

China SWF: Not worried about recent econ data

Posted on 26 April 2013 by VRS  |  Email |Print

The top executive of China’s $500 billion sovereign wealth fund Thursday said he is not concerned by recent data showing slower growth by the world’s second largest economy, pointing to underlining changes that show a country heading in “a much better direction.”
In a keynote speech at the Committee of 100’s 22nd Annual Conference, Gao Xiqing, Vice Chairman and President of the China Investment Corporation, also called for more action to loosen the grip of China’s powerful state-run companies on the economy, while also slamming the treatment his organization receives at the hands of U.S. regulators………………………………………..Full Article: Source

Graph: Sovereign wealth funds

Posted on 25 April 2013 by VRS  |  Email |Print

Sometimes, a picture really is worth a thousand words. Above, I show which countries have the largest sovereign wealth funds, and below, I show how these countries’ funds rank on a per capita basis. Data about the funds comes from the Sovereign Wealth Fund Institute’s Sovereign Wealth Fund Rankings, and I calculated per capita values primarily by using World Bank population data. It’s interesting to note that:
Oil rules. These sovereign wealth funds (SWFs) are more or less oil-based except for a few Asian tigers and Australia. And out of the countries with the fifteen largest funds–as measured by the combined assets of all the funds whose amounts are listed–the Middle East and North Africa occupy six spots………………………………………..Full Article: Source

Norway $730 bln wealth fund strategy unchanged

Posted on 15 April 2013 by VRS  |  Email |Print

Norway’s $730 billion sovereign wealth fund, Europe’s biggest equity investor, will continue to operate under its current strategy, the finance ministry said in a white paper on Friday.
“The ministry presents analyses of several aspects of the strategy, but does not present plans for major changes to the investment strategy of the fund,” it said in a statement………………………………………..Full Article: Source

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