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Sovereign Wealth Funds Briefing - Category | Fund Profile/New Launches more

Macau: Sovereign wealth fund an option

Posted on 30 July 2014 by VRS  |  Email |Print

The International Monetary Fund thinks it’s a good idea that Macau establish a sovereign wealth fund. Anselmo Teng Lin Seng of the Monetary Authority here is well aware of the option.
Macau’s Monetary Authority president Anselmo Teng Lin Seng said that establishing a sovereign wealth fund as suggested by the International Monetary Authority is “one of the options” to further diversify the city’s reserves, although he did not confirm if such an option was a near-term goal………………………………………..Full Article: Source

BRICS Bank Is Mostly a Jointly Managed Sovereign Wealth Fund

Posted on 22 July 2014 by VRS  |  Email |Print

Because the credit ratings of Brazil, Russia, South Africa and India are not robust enough to command borrowing on the capital markets at relatively low rates, and it is only China’s economy among the BRICS that can currently support massive borrowing on the capital markets to enable relatively low-interest lending, it again points to the BRICS Bank being a SWF-like entity.
SWFs generally do not borrow on the capital markets and instead use their own corpus of funds to invest in other countries, almost never their own country. Technically, some SWFs do have the ability to borrow, but rarely do so in practice………………………………………..Full Article: Source

Managing foreign exchange reserve risks; Taiwan to consider SWF?

Posted on 21 July 2014 by VRS  |  Email |Print

Foreign exchange reserves hit a record high of US$423.45 billion in Taiwan in June and also set a new high of US$7.47 trillion in Asia. Seventy percent of the increase in foreign exchange reserves in 2013 were seen in Asia. The government, therefore, has to seriously consider measures to manage Taiwan’s huge foreign exchange reserves. We have previously suggested setting aside a part of the country’s foreign exchange reserves to establish a sovereign wealth fund.
Currently there are more than 30 countries, including Singapore, Kuwait, Brunei, Norway and the United Arab Emirates, that have set up such funds with total combined assets of US$6.321 trillion. Although Taiwan has not set up such a fund, it has one in practice. The central bank has made good use of its foreign exchange reserves in recent years, contributing about NT$200 billion a year to national coffers, helping cover fiscal deficits………………………………………..Full Article: Source

Sovereign fund could be answer for Taiwan

Posted on 21 July 2014 by VRS  |  Email |Print

Not so long ago, a third-party investment manager handling government funds caused heavy losses for Taiwan’s Labor Pension and Labor Insurance funds. Now another market trader is suspected of speculating on shares with board members of an over-the-counter listed company, causing the pension fund to lose more than NT$60 million (US$2 million).
Minister of Finance Chang Sheng-ford has suggested setting up a “Taiwan sovereign fund,” but nothing more has been done about it. If fund managers are inexpert and third-party traders keep mishandling the funds, establishing a sovereign fund could be a solution, since it could kill two birds with one stone by averting rogue trading and improving investment performance………………………………………..Full Article: Source

Bahamian govt in sovereign wealth fund plans

Posted on 18 July 2014 by VRS  |  Email |Print

The Government’s draft oil exploration legislation contains provisions for the creation of a Bahamian sovereign wealth fund, which would receive all due multi-million dollar royalty payments on any ‘black gold’ under this nation’s water.He confirmed that provisions to create a Bahamian sovereign wealth fund, which would be owned and managed by the Government on the Bahamian people’s behalf, were among the legislation being drafted.
Sovereign wealth funds, such as Singapore’s Temasek, have been established by many Middle East and Asian nations as vehicles to hold multi-billion dollars worth of assets and revenues, which are generated from sectors such as oil. These funds are then invested in productive areas of the global economy………………………………………..Full Article: Source

India: ‘No plans now to set up sovereign wealth fund’

Posted on 14 July 2014 by VRS  |  Email |Print

India is not looking to set up any sovereign wealth fund (SWF) for now, Finance Secretary Arvind Mayarm has said. “We don’t think we have reached a stage where we can now commit our forex reserves to a SWF and start investing all around the world,” he said.
Mayaram’s remarks are significant as it is the first time since the new Government assumed charge that a senior Finance Ministry official was commenting on the matter of sovereign wealth fund………………………………………..Full Article: Source

Tanzania: Sovereign Wealth Fund Formation - Dar Needs to Tread Carefully

Posted on 11 July 2014 by VRS  |  Email |Print

Tanzania is on course to establish a Sovereign Wealth Fund to manage proceeds from oil and gas finds, but experts caution that to reap maximum benefits from its resources, the country must have in place effective mechanisms to foster good governance and transparency.
The mining sector’s contribution to Tanzania’s GDP more than tripled between the mid-1990s and 2012, reaching 3.5 per cent. However, since the mining boom started in the early 1990s, the East African country has failed to transform this into wealth for communities near the mines, critics say, hence the need for the government to rectify mistakes and ensure the Sovereign Wealth Fund works for the population from grassroots………………………………………..Full Article: Source

Heritage fund or Slinky fund?

Posted on 10 July 2014 by VRS  |  Email |Print

The recent announcement that the Alberta Heritage Savings Trust Fund earned $2.1 billion in 2013 is great news, but don’t break out the champagne yet. While these record earnings will help relieve Alberta’s current budget deficits, they are almost meaningless in the long term — which is, or at least was, the whole point of having a heritage fund.
Why? Because under current government policy, virtually all of the fund’s realized annual earnings are transferred to general revenue for in-year spending. This means the fund’s value cannot grow as the market goes up………………………………………..Full Article: Source

Tanzania: Sovereign Wealth Fund - Call to Impose Strict Risk Limitations

Posted on 09 July 2014 by VRS  |  Email |Print

Tanzania is on course to establish a Sovereign Wealth Fund to manage proceeds from oil and gas finds, but experts caution that to reap maximum benefits from its resources, the country must have in place effective mechanisms to foster good governance and transparency.
The caution comes amid recent findings by the New York -based Revenue Watch Institute (RWI) and the Vale Columbia Centre on Sustainable International Investment (VCC), revealing that vast sums of money made from the extraction of oil, gas, and minerals–much of it in resource-rich countries where most citizens are nonetheless impoverished–are poorly managed and off limits from the oversight of civil society and the media…………………………………..Full Article: Source

Chan defends fund at length

Posted on 08 July 2014 by VRS  |  Email |Print

The market should disregard the short- term performance of the Exchange Fund, said Hong Kong Monetary Authority chief executive Norman Chan Tak-lam. HKMA yesterday revealed the latest official foreign currency reserve assets stand at US$320.9 billion (HK$2.5 trillion) at the end of June, up from US$320.2 billion in May.
Chan wrote in an article reviewing his work over the past five years that the fund - the reserve that the HKMA uses to defend the Hong Kong dollar - is not a sovereign wealth fund and the investment objective is not to pursue high returns.He stressed the necessity to hold enough highly liquid assets to meet short-term obligations…………………………………….Full Article: Source

Nigeria: Akwa Ibom top contributor to Sovereign Wealth Fund in 2013- MD

Posted on 07 July 2014 by VRS  |  Email |Print

Akwa Ibom State remains the highest contributor to Sovereign Wealth Fund in the Country for 2013, it has been revealed. The Managing Director/Chief Executive of the Nigerian Sovereign Wealth Investment Authority (NSIA), Mr. Uche Orji, who stated this Friday when he and his team paid Governor Godswill Akpabio a courtesy visit at Governor’s Office, Uyo, hinted that Akwa Ibom Government contributed the highest to the fund particularly counterpart funding.
Mr. Orji said they were in the state to partner the state government and invest in the state as well as be a part of the uncommon transformation of Governor Akpabio, hinting that the authority invests in real estate, agriculture, power and seaport, among others………………………………………..Full Article: Source

Romania’s Government wants to set up sovereign fund by raising private money

Posted on 02 July 2014 by VRS  |  Email |Print

The Romanian Government will start looking for investors to subscribe in the first private equity fund managed by the state, this fall, according to Mircea Geoana, senator for the Social Democratic Party (PSD). He said that this fund could gather up to EUR 4 billion. This vehicle won’t be a sovereign fund in the true sense, as most money will come from private investors, according to Wall-street.ro.
“Technically, it’s not a sovereign fund, we are following the Polish model. It is a fund that will be called Romania-Moldova. On October 2-4 this year we will make an announcement of the public offer and then we will start presenting it in a road-show and try to gather investors. The fund will be launched in 2015, because it will take at least nine months to make the necessary documentation and gather investors,” Geoana explained………………………………………..Full Article: Source

Time to launch a sovereign wealth fund: Manish Kejriwal, Temasek Holdings

Posted on 01 July 2014 by VRS  |  Email |Print

Manish Kejriwal was the senior managing director of one of the world’s largest sovereign wealth funds (SWFs), Temasek Holdings, owned by the Singapore government. A Baker Scholar from the Harvard Business School, in whose 8-year-term as the country head, the fund invested roughly $5 billion.
“I believe that the current government under the centralised leadership seems to be the one which can actually execute the concept of a sovereign wealth fund that can tick off all the required boxes and deliver as per its mandate,” Kejriwal, who now runs $500m Keedara Capital, said………………………………………..Full Article: Source

Oil fund is complete con, says energy minister

Posted on 27 June 2014 by VRS  |  Email |Print

The SNP Government’s plan for an oil fund in an independent Scotland is a “complete con”, Ed Davey has insisted. The claim came as the Energy Secretary visits Scotland today to promote the UK Government’s renewable energy plans and announce an additional £50 million to clean up nuclear waste at Dounreay in Caithness.
Last month, John Swinney made clear the Scottish Government could set up a Norwegian-style oil fund from “the point of independence” and secure an “economic bonus”, which could be delivered only by breaking away from the UK. The Scottish Finance Secretary noted that Norway’s oil fund, which began in the mid-1990s “with only modest payments”, was now the world’s largest sovereign wealth fund worth more than £500 billion………………………………………..Full Article: Source

Zimbabwe: Delay setting up sovereign fund: IMF

Posted on 26 June 2014 by VRS  |  Email |Print

The International Monetary Fund is recommending that Government delays the introduction of the Sovereign Wealth Fund saying it will add more fiscal stress to already strained accounts as the institution warned that fiscal under-performance remains the highest risk facing the economy.
In the full Article IV Concluding Statement seen by this paper, the IMF directors recommended delaying the introduction of the Sovereign Wealth Fund. “Although such a mechanism might be helpful over the medium term, the present situation of fiscal stress requires that the Government avoid imposing on itself new administrative and managerial challenges. The mission encourages the authorities to re-examine the fiscal regime for extractive industries before launching any SWF.”……………………………………….Full Article: Source

The Nigerian SWF

Posted on 18 June 2014 by VRS  |  Email |Print

Sovereign Wealth Funds (SWF) are state-owned investment funds typically (though not exclusively) funded through revenues from commodity exports or foreign exchange reserves held by central banks which invest in real and financial assets-stocks, bonds, real estate, infrastructure, precious metals or alternative investments such as private equity and hedge funds.
The term “sovereign wealth fund” was reportedly first used in 2005 by one Andrew Rozanov in an article titled, “Who Holds the Wealth of Nations?” in Central Banking Journal, even though such funds have existed for over a century. The number of SWFs has however dramatically increased in the 2000s………………………………………..Full Article: Source

Saudi’s Shoura Council Debates Sovereign Wealth Fund Plan

Posted on 12 June 2014 by VRS  |  Email |Print

A proposal to set up a Saudi Arabian sovereign wealth fund attracted debate at a meeting of the Kingdom’s influential Shura council advisory body but failed to yield a result. A report by the council’s financial committee has said the National Reserve Fund, which would invest part of the Kingdom’s vast hydrocarbon wealth, would build on its financial stability.
Details of its investment strategy have yet to be disclosed publicly, but if the proposed fund is run like the sovereign wealth funds of other wealthy Gulf states such as Qatar and Abu Dhabi, it could mean a change in the way Saudi money flows through global markets………………………………………..Full Article: Source

China Sovereign Fund Managing Director Said to Plan Fund

Posted on 11 June 2014 by VRS  |  Email |Print

Yu Bin, a former managing director at China’s sovereign wealth fund, plans to start a fund focused on Greater China equities, said three people with knowledge with the matter.
Yu resigned from Beijing-based China Investment Corp., also known as CIC, earlier this year for personal reasons, said the people, who asked not to be identified as the information is private. He will remain based in China and his long-biased fund will primarily bet on stocks whose prices are expected to rise, they said………………………………………..Full Article: Source

Saudi Arabia Planning Second Sovereign Fund

Posted on 11 June 2014 by VRS  |  Email |Print

Saudi Arabia is planning to launch a second sovereign wealth fund to invest its budget surplus, according to Arabian news sources. The country’s central bank, the Saudi Arabian Monetary Agency (SAMA), currently invests money generated by oil exports in an existing sovereign wealth fund, SAMA Foreign Holdings.
The strength of Saudi Arabia’s oil industry has helped grow this portfolio to be the third largest sovereign wealth fund in the world, behind those of Norway and Abu Dhabi………………………………………..Full Article: Source

Saudi mulls sovereign wealth fund

Posted on 10 June 2014 by VRS  |  Email |Print

Saudi Arabia’s Shura Council, an influential advisory body to the government, will discuss a proposal for the country to establish a sovereign wealth fund that would invest some of its vast oil earnings, local media reported.
The National Reserve Fund would “guarantee the financial stability of the kingdom” by investing its reserves, Saad Mareq, head of the council’s financial committee, was quoted as telling the pan-Arab Asharq al-Awsat daily on Saturday………………………………………..Full Article: Source

Saudi Arabia considers separate sovereign wealth fund

Posted on 09 June 2014 by VRS  |  Email |Print

Saudi Arabia is preparing to launch its first sovereign wealth fund to manage budget surpluses from a rise in crude prices estimated at hundreds of billions of dollars, state media reported Saturday. The central bank has managed investment of the kingdom’s foreign currency reserves until now, much of it in US Treasury bonds.
The consultative Shura Council is due to discuss a draft law for the National Reserve Fund in meetings Monday and Tuesday in Riyadh, state news agency SPA reported. The report gave no indication of whether any change in investment strategy was envisioned………………………………………..Full Article: Source

Restructuring Libya’s SWF

Posted on 06 June 2014 by VRS  |  Email |Print

The outlook for Libya is grim as it slides further into anarchy, but the African Development Bank believes that one promising area is the country’s formidable financial resources and a sovereign wealth fund that could be leveraged to help the economy.
In a recent report on Libya, the African Development Bank looked to “re-engage” with the country to seek a better understanding of economic and political developments amid political instability, threats to the survival and legitimacy of the state, and regional tensions over control of country’s rich natural resources………………………………………..Full Article: Source

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

Mozambique wants to do investment differently

Posted on 02 June 2014 by VRS  |  Email |Print

Mineral-rich Mozambique is considering the establishment of a sovereign wealth fund, the country’s finance minister said. “We think it’s a good idea,” Manuel Chang told AFP on the sidelines of an International Monetary Fund (IMF) conference on Africa.
“But we won’t do what others have done,” he added, suggesting Mozambique would not rush into creating the fund given other pressing demands that will require huge injections to fix, such as the infrastructure. An estimated $10-billion in foreign investments are expected to flow into the southern African country once a natural gas processing plant is built on its northern coast…………………………………..Full Article: Source

Mozambique plans sovereign wealth fund

Posted on 30 May 2014 by VRS  |  Email |Print

Mineral-rich Mozambique is considering the establishment of a sovereign wealth fund, the country’s finance minister said Thursday. “We think it’s a good idea,” Manuel Chang said“But we won’t do what others have done,” he added, suggesting Mozambique would not rush into creating the fund given other pressing demands that will require huge injections to fix, such as the infrastructure.
An estimated $10 billion in foreign investment are expected to flow into the southern African country once a natural gas processing plant is built on its northern coast. Mozambique’s reserves are believed to be the world’s third largest………………………………………..Full Article: Source

Little Sovereign Wealth Fund on the Prairie

Posted on 30 May 2014 by VRS  |  Email |Print

North Dakota is enjoying a flood of biblical proportions. Shale-drilling technology has liberated huge quantities of oil from the Bakken shale in the western part of the state. Production has surged from about 100,000 barrels per day in 2007 to nearly 1 million barrels per day this year—a tenfold increase.
But North Dakota, America’s latest petro-state, is handling its newfound wealth with the kind of modesty you might expect in a land where people live in giant open spaces and at the mercy of nature. Decades of boom and bust in agriculture have forged a culture of thrift, an abhorrence of debt, and a healthy mistrust of high finance. Alone among the 50 states, North Dakota has a state-owned bank. It never had much of a housing and credit boom, so it never had much of a housing bust………………………………………..Full Article: Source

Sovereign fund not a quick fix for SA

Posted on 27 May 2014 by VRS  |  Email |Print

Many countries have set up government-owned sovereign wealth funds to accelerate their investment potential, but such a move is unlikely to be a silver bullet for South Africa’s own growth ills.
These funds are state investment vehicles that hold and manage or administer large pools of public funds. But for such funds to be effective, money must come from somewhere, and South Africa does not stand out as a powerful candidate due to its trade and fiscal deficits, lack of privatisation and slow resource exports………………………………………..Full Article: Source

New €125m fund to boost innovative firms

Posted on 22 May 2014 by VRS  |  Email |Print

A new $172m (€125m) venture capital fund has been set up to aid innovative companies to grow and create jobs in Ireland. Firms in the life-sciences sector can apply for the funding, which includes a €20m investment from Enterprise Ireland and a commitment of €10m from the National Pensions Reserve Fund (NPRF).
Leading US-based Lightstone Ventures – which has opened a new office in Dublin – raised the fund, which is backed by the Department of Jobs and Enterprise Ireland…………………………………….Full Article: Source

Ghana’s $450 million petroleum funds rated high in governance assessment

Posted on 21 May 2014 by VRS  |  Email |Print

The natural resource funds that the Ghanaian government uses to manage oil revenues have been adjudged to be relatively well-governed. The Revenue Watch Institute, a New York-based NGO with an office in Accra, in its recently released research, indicated that the Ghana Petroleum Funds met 13 of 16 good governance fundamentals. Researchers concluded that the funds feature clear deposit, withdrawal and investment rules, effective oversight, and other essential attributes of good governance.
“Together, the Ghana Stabilisation Fund and the Ghana Heritage Fund manage more than $450 million,” said Emmanuel Kuyole, Africa regional coordinator for Revenue Watch. “Thanks to strong legal provisions, citizens have information on how much is deposited, invested and earned. This transparency is a significant gain. Too much sunshine does not spoil anything.”………………………………..Full Article: Source

Govt pledges novel fund for natural gas

Posted on 19 May 2014 by VRS  |  Email |Print

The government reaffirmed its commitment to establishing a natural gas Sovereign Wealth Fund (SWF) after charged debate over delays to table the natural gas act in parliament. Energy and Minerals Deputy Minister Stephen Masele told the National Assembly that the upshot for establishing the fund was to stabilize the country’s micro-economic growth, restore natural gas profits for current and future generations as well as diversify funds for other development projects.
The deputy minister said the fund which will be under the Central Bank would also actively control the country’s macro-economic growth. Masele who spoke in response to a question raised by Igalula MP Athuman Mfutakamba (CCM) said the government was to enact legislations to oversee the Fund…………………………………..Full Article: Source

Economist Touts Sovereign Fund For Bauxite Earnings

Posted on 19 May 2014 by VRS  |  Email |Print

Economist Dennis Morrison says Jamaica should consider developing a sovereign wealth fund seeded by bauxite royalties and taxes, should the sector regain vibrancy. His suggestion comes against the background of the dissipation of US$4 billion in earnings from the Bauxite Production Levy garnered over its 40 years without any real legacy projects to show for it. The levy was created in 1974.
Morrison said bauxite remains Jamaica’s best bet for the creation of a sovereign wealth fund out of which sustainable capital projects can be pursued. Panama is among the countries to have recently gone that route. It created a sovereign fund to provide the Panamanian government with an investment vehicle to manage the country’s surpluses…………………………………..Full Article: Source

Cyprus finance ministry to publish SWF framework this year

Posted on 12 May 2014 by VRS  |  Email |Print

Cyprus took a step closer to establishing a sovereign wealth fund (SWF), after finance minister Harris Georgiades told this year’s Mediterranean Oil and Gas Conference that he would submit a framework for the institution by the end of the year. The Cypriot authorities pledged to set up a ‘resource fund’ in a memorandum of understanding (MoU) with the International Monetary Fund (IMF) last year – one of many reforms deemed necessary to “rearrange” the country’s energy sector.
There are significant untapped gas deposits below the Levantine Sea, and Cyprus is preparing for a windfall if they can be exploited. Noble Energy, a Texan company exploring the region, estimates there are five trillion cubic feet of gas in one particular field, known as ‘Block 12′………………………………………..Full Article: Source

A wealth fund via PSU participation to promote India growth

Posted on 12 May 2014 by VRS  |  Email |Print

The big idea is to set up a trillion-dollar sovereign wealth fund created out of the shareholding of public sector undertakings to put India back on the path of high growth and development.
In 2013-14, the government’s disinvestment program too was a failure having raised only 3 percent of the Rs 40,000 crore target through disinvestment of public undertakings. With the government refusing to give up its iron grip on poorly performing PSUs we are suggesting a middle path……………………………………….Full Article: Source

Use QE funds to create UK sovereign wealth fund

Posted on 12 May 2014 by VRS  |  Email |Print

The Bank of England has bought some £375bn of government bonds (gilts) under QE, equal to £6,000 for every person in the country. These bonds could be sold off and the proceeds used to establish a UK sovereign wealth fund aimed at financing UK infrastructure projects. As our release last week showed, QE has failed to stimulate investment.

£375bn could pay for HS2 and a new London airport 4 times over. Alternatively it could finance the building of 2 million new homes. It is equal to the entire infrastructure pipeline outlined in the National Infrastructure Plan of March 2014. Globally, there is over $6 trillion invested in sovereign wealth funds. The largest fund is Norway’s which has over $800bn invested, $170,000 for every man, woman and child in Norway………………………………………..Full Article: Source

The fascinating business empire behind Temasek Holdings

Posted on 23 April 2014 by VRS  |  Email |Print

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

Tanzania: Sovereign wealth fund comes aboard in October

Posted on 23 April 2014 by VRS  |  Email |Print

The government is formulating legislation for the establishment of a Sovereign Wealth Fund in a bid to manage the proceeds from natural gas. The upshot is ensuring that the resource benefits current and future generations, President Jakaya Kikwete has said.
The president has revealed that the government would by October, this year or February, next year, move a Bill in the National Assembly for establishment of the fund. The country has so far discovered 43.1 trillion cubic feet (tcf) of natural gas in offshore and onshore gas fields and exploration is still ongoing………………………………………..Full Article: Source

Taiwan SWF moves a step closer

Posted on 22 April 2014 by VRS  |  Email |Print

Taiwan’s move to merge the investment activities of its four main public pension funds has renewed speculation that the country plans to set up a sovereign wealth fund.
The four schemes, which have combined assets of some $100bn, have been dogged by performance issues. They will now be managed by a single investment department under the stewardship of the revamped Bureau of Labor Funds………………………………………..Full Article: Source

Tanzania: Sovereign wealth fund comes aboard in October

Posted on 22 April 2014 by VRS  |  Email |Print

The government is formulating legislation for the establishment of a Sovereign Wealth Fund in a bid to manage the proceeds from natural gas.The upshot is ensuring that the resource benefits current and future generations, President Jakaya Kikwete has said.
The president has revealed that the government would by October, this year or February, next year, move a Bill in the National Assembly for establishment of the fund.The country has so far discovered 43.1 trillion cubic feet (tcf) of natural gas in offshore and onshore gas fields and exploration is still ongoing………………………………………..Full Article: Source

Sovereign wealth fund a well thought idea

Posted on 22 April 2014 by VRS  |  Email |Print

Tanzania will soon establish a sovereign wealth fund (SWF) to safeguard, monitor and safeguard proceeds from the country’s natural resources, especially natural gas. President Jakaya Kikwete revealed the government plans on the proposed fund during talks with editors of various media houses in Dar es Salaam recently.
He rightly underscored the importance of the proposed fund in managing proceeds from the country’s vital resources for the benefit of the current and future generations………………………………………..Full Article: Source

Zimbabwe: A sovereign wealth fund is critical to development

Posted on 16 April 2014 by VRS  |  Email |Print

In the Zimbabwe we want, a Sovereign Wealth Fund must be managed as the country’s endowment to future generations. It is not a fund to be plundered by government and used to meet current needs, but a savings account that must accumulate over time and be used to meet future developmental needs.
The Sovereign Wealth Fund can only be viable where there is disciplined fiscal management and there is no temptation to use that money for recurrent expenditure. In a country such as Zimbabwe there exists a huge probability of abuse of a Sovereign Wealth Fund to meet current revenue gaps………………………………………..Full Article: Source

The Zimbabwe we want - A sovereign wealth fund is critical to development

Posted on 15 April 2014 by VRS  |  Email |Print

In the Zimbabwe we want, a Sovereign Wealth Fund must be managed as the country’s endowment to future generations. It is not a fund to be plundered by government and used to meet current needs, but a savings account that must accumulate over time and be used to meet future developmental needs.
We all know that the mining and other resources of a country cannot be replenished. It is therefore important that we save the income generated from those depleting resources now for the future. The fund can also be used to replenish the resource industry in the future and replace industries………………………………………..Full Article: Source

Malaysia: Time for a sovereign fund derived from O&G?

Posted on 14 April 2014 by VRS  |  Email |Print

The question of whether Malaysia should have a sovereign wealth fund derived from its natural resources is one that has been raised many times. The government has been using revenue derived from the country’s natural resources – in particular dividends from the nation’s oil and gas (O&G) company Petroliam Nasional Bhd (Petronas) – for development.
O&G-producing nations like Norway, the United Arab Emirates (UAE), the United States, Russia, Algeria and Kazakhstan have set up their own sovereign wealth funds derived from the sector………………………………………..Full Article: Source

Codelco plans expansion via sovereign wealth fund

Posted on 14 April 2014 by VRS  |  Email |Print

Chile is betting on the expansion of state-owned copper producer Codelco, and may turn to its sovereign wealth fund to finance the investment, even as metal prices and economic growth approach four-year lows.
Gross domestic product will expand about 3.5 per cent this year, Deputy Finance Minister Alejandro Micco forecast, the first estimate by President Michelle Bachelet’s government that came to office March 11………………………………………..Full Article: Source

Kenya: Wealth fund established before mineral exploration

Posted on 04 April 2014 by VRS  |  Email |Print

The country has begun plans to set up a sovereign wealth fund ahead of the major commercial production and export of oil and other minerals. This development puts Kenya among other peers in Africa such as Botswana, Nigeria and Ghana, which all have sovereign wealth funds in line with their established mineral and oil commercial production.
“Kenya is however in a unique position owing to the fact that it is establishing its fund ahead of commercialization of the mineral commodities. “We are setting up a sovereign wealth fund prior to exploration of natural resources,” said Dr Mbui Wagacha, Chairperson, Board of Central Bank of Kenya………………………………….Full Article: Source

Kenya will create sovereign wealth fund before crude output

Posted on 03 April 2014 by VRS  |  Email |Print

Kenya plans to set up a sovereign wealth fund to invest revenue from future output of oil that Tullow Oil Plc (TLW) and Africa Oil Corp. (AOI) expect to start pumping as soon as 2016, central bank Chairman Mbui Wagacha said.
The country’s attorney general is “fine-tuning” a draft framework for the fund, which will shield the economy from cyclical changes in commodity prices, build savings for future generations and be used to invest in infrastructure, he said…………………………….Full Article: Source

Trinidad and Tobago appoints new sovereign wealth fund chairman

Posted on 28 March 2014 by VRS  |  Email |Print

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

Planned sovereign wealth fund may well be only Zim entity able to pay for stakes in mines

Posted on 28 March 2014 by VRS  |  Email |Print

The introduction of the Sovereign Wealth Fund (SWF) by the Zimbabwe government could not have been more timeous, according to experts, as it will be used for much-needed infrastructure development. This also comes amid investor dissatisfaction in the Zimbabwean mining industry, owing to the country’s Indigenisation and Economic Empowerment Act and mining royalties policies.
In his speech at the Zimbabwe Chamber of Mines’ (CoM’s) seventy-fourth annual general meeting in May last year, CoM president John Chikombero said the operating environment for the mining industry in 2012 was, to a large extent, similar to that of 2011: the country’s mining industry remains a primary contributor to Zimbabwe’s gross domestic product and was expected to provide impetus for economic growth……………………………………Full Article: Source

ZANU PF ploughs ahead with the sovereign wealth fund

Posted on 26 March 2014 by VRS  |  Email |Print

As Zimbabwe forges ahead towards creating a Sovereign Wealth Fund, observers fear the ZANU PF government is not ready for such an undertaking given its history of economic mismanagement.
Ideally the fund is supposed to be created through pooling together profits from the exploitation of non-renewable resources, such as minerals, into a savings pot for use by future generations. The idea is to harness excess wealth from depleting resources so that it can be enjoyed by future generations………………………………..Full Article: Source

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

Posted on 24 March 2014 by VRS  |  Email |Print

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

Broten, Wall battle over futures fund

Posted on 24 March 2014 by VRS  |  Email |Print

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

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