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Namibia: Tucna Calls for Creation of Sovereign Wealth Fund

Posted on 04 September 2015 by VRS  |  Email |Print

The Trade Union Congress of Namibia (Tucna) secretary general Mahongora Kavihuha has proposed the setting up of a sovereign wealth fund that uses revenue from the country’s mineral resources.Tucna is an umbrella body of over 15 affiliate unions, which together serve over 40 000 members throughout the country.
Speaking at a two-day media workshop attended by journalists from various media houses and representatives of various federation affiliates, in Windhoek, Kavihuha said there is a need for the creation of the fund with a special purpose vehicle to harness revenue from the country’s minerals. This, he said, would help with intergenerational and long-term social and economic investment………………………………………..Full Article: Source

Saudi Arabia needs to launch sovereign fund, invest wisely: Alkhabeer CEO

Posted on 04 September 2015 by VRS  |  Email |Print

Saudi Arabia needs to create a sovereign wealth fund to manage the oil windfall and rely on talented wealth managers to invest the funds, as this will help offset budget deficits, according to Ammar bin Ahmed Saleh Shata, CEO of Alkhabeer Capital. Speaking to Riyadh newspaper, Saleh said investing the reserves through a sovereign fund will help maintain the cash flow required to cover part of the state’s spending, and could cover budgetary deficits in case oil prices remain low.
He also suggested that the Saudi Arabian Monetary Agency (SAMA), the kingdom’s central bank, should not interfere in the creation and management of these funds, but should focus on stabilizing the currency rate exchange………………………………………..Full Article: Source

Saskatchewan urged to set up Sovereign Wealth Fund

Posted on 04 September 2015 by VRS  |  Email |Print

The province could save loads of money if they would set up a Sovereign Wealth Fund, more commonly known as a Heritage Fund. That from professor at the University of Saskatchewan’s Johnson-Shoyama Graduate School of Public Policy Greg Poelzer.
Poelzer says we need to start saving our oil revenue and revenue from other commodities and putting them into a fund of this kind. Norway is the worldly example of a place that uses a Heritage Fund. Poelzer says they have saved over 1 trillion dollars as a result………………………………………..Full Article: Source

African Nations Should Set Up More Sovereign Wealth Funds To Avert Economic Crisis

Posted on 02 September 2015 by VRS  |  Email |Print

Dr Akinwumi Adesina, the newly installed President of the African Development Bank (AFDB) has said that African country would have to set up more Sovereign Wealth Funds to help withstand the next downturn as a result of plunging commodity prices, Bloomberg Reports.
According to Adesina, “will allow countries to have fiscal buffers and liquidity buffers to this kind of shock.” He added that the current crisis is not the only one that would be experienced as “there’s still going to be a lot of disquiet in the market going forward.”……………………………………….Full Article: Source

Legacy Fund? Think Legacy Fund Initiative

Posted on 17 August 2015 by VRS  |  Email |Print

Good news: North Dakota lawmakers take the word “Legacy” in the state’s Legacy Fund seriously. At a forum in Bismarck this week, legislative leaders agreed that the fund should be allowed to keep growing, thus letting North Dakotans pass it down as a very real legacy to residents in 2040 and beyond.
The work even drew upon a fact-finding trip by North Dakotans to Norway, where the $900 billion in that country’s sovereign wealth fund makes it the biggest and most successful such fund in the world. The report by North Dakota’s Legacy Fund Initiative was a model of good governance and a fine example of the way these things should work……………………………………….Full Article: Source

Economist proposes creation of two sovereign wealth funds

Posted on 14 August 2015 by VRS  |  Email |Print

A former senior official at Saudi Arabia Monetary Agency (SAMA) says he believes the Kingdom may soon change the way it manages its oil wealth as part of efforts to protect its financial reserves in an era of cheap crude. The Saudi Arabian Monetary Agency (SAMA) manages the vast bulk of petrodollars earned by the world’s top oil exporting country; net foreign assets at the central bank totaled $664.5 billion in June.
Khalid Alsweilem, who managed the assets as chief investment officer at SAMA, argues the arrangement is dangerous because the Finance Ministry can draw freely on the reserves when it wants to cover budget deficits caused by periods of low oil prices………………………………………..Full Article: Source

A Swiss Sovereign Wealth Fund: Not such a smart idea

Posted on 12 August 2015 by VRS  |  Email |Print

After years of combating a strong franc, the Swiss National Bank (SNB) finds its foreign exchange coffers full, ready to burst. Unnoticed by many, in the last four years, Switzerland has crept into the ranks of the five countries with the largest currency reserves. Now there are calls from various political quarters for the SNB to use this money to create a sovereign wealth fund (SWF).
Is this a good idea? And is a SWF compatible with the SNB’s remit? According to the International Monetary Fund (IMF), sovereign wealth funds do not constitute state-owned enterprises (SOEs) – even though these can also invest in foreign companies – but are: “special investment funds created or owned by governments to hold foreign assets for long-term purposes”……………………………………….Full Article: Source

Egypt launches sovereign wealth fund as economy bites

Posted on 12 August 2015 by VRS  |  Email |Print

In June, Egypt’s cabinet formally approved plans for the country to establish a Sovereign Wealth Fund (SWF). According to Planning Minister Ashraf El-Araby, the fund is to be called Amlak, and will be state owned via the National Investment Bank. The SWF will also be tasked with running a number of state assets.
In the same month, Egypt’s Minister of Industry and Trade Mounir Fakhry Abdel Nour told Russian media that the Russian Direct Investment Fund and Arabian SWFs will play a role in establishing the fund. He added that the fund will be focused on communications, logistics and travel infrastructure in particular. Sovereign wealth fund experts are generally positive that Amlak could give Egypt’s economy a much-needed lift. ……………………………………….Full Article: Source

Taiwan needs a sovereign wealth fund

Posted on 07 August 2015 by VRS  |  Email |Print

The idea of a sovereign wealth fund has long been a contentious topic. The program represents the first time for the proposal to be put on the government’s agenda, underscoring the awareness of the need for new conceptual approach for economic development. Sovereign wealth funds have been embraced by both developed and developing nations — Norway and Finland to name two in the former category, and Indonesia, Malaysia and Vietnam in the latter.
There have been new converts to the concept since 2011, including Italy, Russia, Mongolia, Ghana and Mexico, in addition to similar institutions in some states of the US. They are seen as a means to flexibly utilize national assets to facilitate the achievement of government policies………………………………………..Full Article: Source

Banglades sovereign wealth fund in the offing to fix infrastructure

Posted on 06 August 2015 by VRS  |  Email |Print

Bangladesh plans to form a sovereign wealth fund with its foreign currency reserves to invest in infrastructure, the lack of which is turning out to be the main barrier to getting out of the 6-percent economic growth trap. A sovereign wealth fund (SWF) is a pool of money derived from a country’s reserves, set aside for investment purposes that will benefit the country’s economy and citizens.
The initial size of the fund would be $1-$2 billion, according to Bangladesh Bank Governor Atiur Rahman. At present, the central bank has foreign exchange reserves of more than $25 billion, and by the end of the year will cross the $26-billion mark………………………………………..Full Article: Source

Taiwan needs a sovereign wealth fund

Posted on 05 August 2015 by VRS  |  Email |Print

Despite the dubious effect of the expansionary measures contained in the “program for boosting the economic strength” recently rolled out by Taiwan’s National Development Council due to the government’s financial shortfall and sluggish private investments, the proposal to study the setup a sovereign wealth fund in the program warrants serious consideration as it can generate extra capital to induce investment.
The idea of a sovereign wealth fund has long been a contentious topic. The program represents the first time for the proposal to be put on the government’s agenda, underscoring the awareness of the need for new conceptual approach for economic development. Sovereign wealth funds have been embraced by both developed and developing nations — Norway and Finland to name two in the former category, and Indonesia, Malaysia and Vietnam in the latter………………………………………..Full Article: Source

Bangladesh: Sovereign wealth fund in the offing to fix infrastructure

Posted on 05 August 2015 by VRS  |  Email |Print

Bangladesh plans to form a sovereign wealth fund with its foreign currency reserves to invest in infrastructure, the lack of which is turning out to be the main barrier to getting out of the 6-percent economic growth trap. A sovereign wealth fund (SWF) is a pool of money derived from a country’s reserves, set aside for investment purposes that will benefit the country’s economy and citizens.
The initial size of the fund would be $1-$2 billion, according to Bangladesh Bank Governor Atiur Rahman. At present, the central bank has foreign exchange reserves of more than $25 billion, and by the end of the year will cross the $26-billion mark. The central bank does not keep the reserves idle: it invests in various lucrative areas, so much that a big chunk of its profits come from them………………………………………..Full Article: Source

Bangladesh to launch sovereign wealth fund: central bank chief

Posted on 04 August 2015 by VRS  |  Email |Print

Bangladesh is readying a sovereign wealth fund to channel its foreign exchange reserves to infrastructure investments, the governor of the country’s central bank told The Nikkei in a recent interview.The fund, to be launched in the next few months at the earliest, will have an initial size of $1 billion to $2 billion, said Gov. Atiur Rahman.
“Our economy could achieve double-digit” growth if it overcomes a lack of modern infrastructure and other problems, he said. To try to do something about its shoddy roads, ports and other economic bedrock, Bangladesh has already declared itself a founding member of the Chinese-led Asian Infrastructure Investment Bank………………………………………..Full Article: Source

Papua New Guinea: Managing Sovereign Wealth Fund

Posted on 04 August 2015 by VRS  |  Email |Print

Director of the Institute of National Affairs, Paul Barker, said the Sovereign Wealth Fund (SWF) must be managed properly with the highest principle of governance. Barker gave an insight into the newly passed bill saying the sovereign wealth fund depends highly on its stabilisation and savings components.
He explained that the stabilisation component depends on the revenue generated from the mining and agriculture sectors. Barker said if the prices of commodities in world markets drop, the stabilisation fund is used to balance out the country’s revenue to keep the level of commodity prices steady in the country………………………………………..Full Article: Source

German investment professionals back launch of sovereign wealth fund

Posted on 04 August 2015 by VRS  |  Email |Print

Nearly three-quarters of German investment professionals would back the creation of a sovereign wealth fund (SWF) to help address the country’s infrastructure needs. The German Federation of Financial Analysts and Asset Management (DVFA) found that 68.6% of its members backed the creation of a SWF that could help with “targeted, direct investments”, according to the association.
It noted that the countries traditionally associated with such funds financed them by putting aside their budget surplus. The German federal government is not currently in surplus, but, in accordance with a new law, it will not take on any new debts this financial year………………………………………..Full Article: Source

India’s ‘Sovereign Wealth Fund’ ready by December

Posted on 03 August 2015 by VRS  |  Email |Print

The proposed $3.2 billion (Rs 20,000-crore) National Investment and Infrastructure Fund (NIIF) will function as a sovereign wealth fund like Singapore’s Temasek and operate at “arm’s length” from the government, Minister of State for Finance Jayant Sinha said.
To be operational by the year end, NIIF will primarily focus on fund infusion in infrastructure projects — greenfield, brownfield and the stalled ones. “It will be a commercially oriented enterprise and will be located in Mumbai and operate at arm’s length from government,” Sinha said………………………………………..Full Article: Source

PNG Sovereign Wealth Fund now law

Posted on 03 August 2015 by VRS  |  Email |Print

The Papua New Guinea Government has passed the Sovereign Wealth Fund bill after hold ups earlier in the week. The bill aims to ensure a portion of the earnings from the resource projects are saved for future generations with a percentage going into a stabilisation fund, as a cushion against fluctuating world commodity prices.
On Wednesday the Speaker, Theo Zurenuoc, refused to let one MP, John Hickey, vote on the measure because he has been referred to a leadership tribunal. The Government failed to muster the necessary two thirds of MPs to vote the bill through, but on Thursday it easily got the numbers, with just four MPs voting against it………………………………………..Full Article: Source

PNG passes Sovereign Wealth Fund Bill

Posted on 31 July 2015 by VRS  |  Email |Print

After a number of stalled attempts Papua New Guinea’s parliament has finally passed a law to establish a Sovereign Wealth Fund. The long-stated aim of the Fund is to manage the revenue generated by liquified natural gas and other resource projects and put it towards economic and social development.
Reporter Wesley Manuai says the legislation shows the fund will be split into two parts, a stabilisation fund and a savings fund………………………………………..Full Article: Source

PNG sovereign fund bill held up by confusion over suspension

Posted on 31 July 2015 by VRS  |  Email |Print

The Papua New Guinea government has failed to pass its major agenda, the Sovereign Wealth Fund bill due to differences in legal opinion between the parliament speaker and government coalition partner, the National Alliance Party.Yesterday’s parliament sitting was marked by confusion over whether one of the National Alliance MPs who has been referred to a leadership tribunal is currently suspended as an MP.
Going on legal advice from his office, the speaker Theo Zurenuoc refused to recognise Bogia MP John Hickey and his right to participate in the vote on the Fund. Pending clarification of his status, Mr Hickey left the chamber, and the government narrowly failed to pass the bill………………………………………..Full Article: Source

CIC Launches Subsidiary to Invest in Overseas Projects

Posted on 30 July 2015 by VRS  |  Email |Print

China’s sovereign wealth fund has launched a subsidiary to handle investment in overseas infrastructure projects as part of government efforts to expand business abroad to shore up growth. China Investment Corp. held a ceremony to launch its new subsidiary, CIC Capital Corp., on July 27. The subsidiary will focus on infrastructure, agricultural, forestry and fishery projects abroad.
CIC Capital, which showed the government it had capital of US$ 5 billion to get a business license, is the result of expanding an old CIC unit that oversaw infrastructure investment abroad, the company said. A slowing economy has prompted the government to be aggressive in looking for business opportunities for state-backed businesses in foreign countries since 2013………………………………………..Full Article: Source

CIC Capital Officially Launched, Targets $100bln In Total Capacity

Posted on 30 July 2015 by VRS  |  Email |Print

An overseas direct investment fund launched by China Investment Corporation earlier this year has officially begun operation, and plans to reach US$100 billion in total investment capacity eventually, according to Chinese media reports.
The new investment platform, named CIC Capital Corporation, was registered in January with US$5 billion in capital. It will be responsible for making direct investments in markets outside of China in partnership with Chinese companies wishing to expand internationally………………………………………..Full Article: Source

Taiwan’s SWF plan proceeds despite opposition

Posted on 24 July 2015 by VRS  |  Email |Print

Government plans to create a sovereign wealth fund in Taiwan are being met with considerable opposition. In two separate moves in recent days, it has been suggested that sovereign wealth funds be created out of Taiwan’s central bank reserves, and that the nation’s four big public investment funds be managed under a sovereign fund ‘platform’.
But the central bank has rejected a recommendation made to the government that its foreign exchange reserves, which total US$420 billion, be used to fund a sovereign wealth portfolio………………………………………..Full Article: Source

Hey Puerto Rico: You Need Money for a Sovereign Wealth Fund

Posted on 23 July 2015 by VRS  |  Email |Print

Late last week, Reuters reported that Puerto Rico’s economic development minister, Alberto Bacó, is seeking to create a new “sovereign fund” to pay for incentives for companies to invest in the island. He claims that the fund would be created out of “concessions from creditors,” and would be used to spur development and job growth on the island.
Sovereign wealth funds are a well-explored and understood tool in public finance. Put simply, they act like an endowment fund for the nation, to prevent politicians from spending revenues from natural resources on current citizens, preserving the value of the nation’s assets for future generations………………………………………..Full Article: Source

GLP launches second China fund

Posted on 22 July 2015 by VRS  |  Email |Print

Global Logistic Properties (GLP), which provides warehouses and the like in China, Japan, Brazil and the United States, has launched what it says is the largest China-focused logistics infrastructure fund. CLF Fund II already has US$3.7 billion (S$5 billion) in equity committed to it by GLP and its investors, with debt options allowing for an investment capacity of US$7 billion to develop 13 million sq m over four years.
Singapore sovereign wealth fund GIC, a major GLP shareholder, declined to comment on the deal. CLSA senior research analyst Wong Yew Kiang is upbeat over the fund’s prospects. ……………………………………….Full Article: Source

Taiwan: Ministry mulling ‘quasi’ sovereign wealth fund

Posted on 21 July 2015 by VRS  |  Email |Print

The ministry is looking for ways to coordinate the actions of Taiwan’s four state funds, diversify their portfolios and boost their efficiency. The Ministry of Finance is to suggest that the Cabinet create a platform to marshal the operations of four state funds to boost their efficiency and profitability so they can better help strengthen the nation’s financial health, Minister of Finance Chang Sheng-ford said.
“The idea is to integrate the four funds into a quasi-sovereign wealth fund [SWF] without needing to revise the law,” Chang said. The funds are the Labor Insurance Fund, Labor Pension Fund, Public Service Pension Fund and postal savings deposits with an aggregate value of more than NT$7 trillion (US$223.34 billion)………………………………………..Full Article: Source

GLP Establishes US$7 Billion CLF II

Posted on 21 July 2015 by VRS  |  Email |Print

Mainboard-listed Global Logistic Properties Ltd (GLP) said on Tuesday it plans to set up its second and largest China-focused logistics infrastructure fund, with seven investors, with the aim to pump in up to US$7 billion (S$9.6 billion) in the sector in the next four years.
GLP, the biggest provider of modern logistics warehouses in China, said its partners will include some of the world’s largest national pension and sovereign wealth funds from Asia, North America and the Middle East. GLP and its partners have already committed US$3.7 billion of equity to the fund, in which GLP China will hold a 56 per cent stake and which it will manage………………………………………..Full Article: Source

New wave of support for UK sovereign wealth fund

Posted on 20 July 2015 by VRS  |  Email |Print

A new wave of support has emerged for the creation of a UK sovereign wealth fund, which proponents believe would pump much-needed money into large infrastructure projects. Countries with sovereign wealth funds tend to run fiscal surpluses, something the UK government is a long way from achieving.
But in spite of the UK’s budget deficit, which currently runs at 3.2 per cent of gross domestic product, the idea has previously won support from Boris Johnson, the mayor of London. Last year Mr Johnson called for a citizens’ wealth fund that he claimed could build the homes the country needs and finance the roads, railways and power stations “the country is crying out for”………………………………………..Full Article: Source

Skepticism About A U.S. Sovereign Wealth Fund

Posted on 20 July 2015 by VRS  |  Email |Print

The U.S. government right now can borrow very cheaply, which has spurred many to argue the U.S. should create a sovereign wealth fund (SWF). This would basically be a fund that the government invests with to try and make a profit. I think the biggest problem with this idea is it assumes into existence an efficient new body for managing a huge portfolio, and creating new effective institutions like this is very difficult.
Many SWF proponents point to other governments that have them and run them successfully, but they miss examples where governments manage asset ownership poorly. In a new piece at Bloomberg View, Peter Orszag summarizes a new book on poor government commercial asset management thusly:……………………………………….Full Article: Source

Puerto Rico economics chief advocates ’sovereign fund’ for island

Posted on 17 July 2015 by VRS  |  Email |Print

Puerto Rico’s top economic official on Thursday said the island should form an investment fund to help attract business as it struggles under $73 billion of debt. Alberto Baco, the island’s economic development minister, said in an interview he will advocate for the creation of a “sovereign fund” to promote development, which he said should be financed at least in part through negotiated concessions from the island’s financial creditors.
“My project is to make people buy into the idea that concessions (from creditors) are not used for expenditures but investments,” Baco said, calling a sovereign fund “the best way to invest.” Such funds are typically used by sovereign nations with excess wealth, and the practicality of an investment fund in the struggling U.S. commonwealth is unclear………………………………………..Full Article: Source

Taiwan: Central bank strongly objects to SWF

Posted on 14 July 2015 by VRS  |  Email |Print

The central bank voiced objections to a proposal to turn foreign exchange reserves into a sovereign wealth fund (SWF) aimed at stimulating the nation’s economy. Academics have advised Premier Mao Chi-kuo to establish an SWF using foreign exchange reserves to generate higher returns that would benefit the economy as a whole.
“If an SWF is necessary, the government should first seek to pass a law for its establishment, management and oversight so it can operate legally,” the central bank said in a statement. The government is seeking a remedy for the softening economy after exports plunged by 13.9 percent last month………………………………………..Full Article: Source

KSA needs sovereign wealth fund

Posted on 13 July 2015 by VRS  |  Email |Print

Despite the substantial financial surpluses Saudi Arabia has accumulated over the past few decades, it is the only major oil producing country without a proper sovereign wealth fund (SWF). There are of course several institutions managing those surpluses, but not in the usual SWF format.
Most countries with financial windfalls, whether from oil and gas or other sources, have established SWFs to invest those surpluses over the long run to help weather financial crises and preserve wealth for future generations. The SWF Institute estimates the values of those funds at about $7.3 trillion globally, $4.2 of which belong to oil and gas producers, primarily GCC countries……………………………………….Full Article: Source

Does Sub-Saharan Africa Need A Sovereign Wealth Fund?

Posted on 26 June 2015 by VRS  |  Email |Print

On June 27, 14 African central bank governors will be meeting in Switzerland to discuss the formation of a sovereign wealth fund that they hope will help cushion member countries in times of commodity price weaknesses, Xinhua reported.
According to the forum organizer, the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) which operates in 14 African countries, the continent has for long been criticized for not taking advantage of its vast natural resource wealth to ensure sustainable growth in its economies and a sovereign fund was one way to ensure this. A sovereign wealth fund is a state-owned investment fund investing in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds………………………………………..Full Article: Source

Rwanda plans to top up sovereign fund

Posted on 23 June 2015 by VRS  |  Email |Print

The government will annually be contributing Rwf 5 billion (currently $6.7 million) from the national budget towards the sovereign wealth fund. The Agaciro Development Fund (AgDF), is a sovereign wealth fund launched in 2012 by President Paul Kagame. At the time he said, “Aid is never enough, we need to complement it with home-grown schemes. We are not changing our relations with our partners, but rather adding value. More dignity can only help.”
Addressing guests recently to celebrate the AgDF achievements in Kigali, Rwanda’s Minister of Finance and Economic Planning Amb. Claver Gatete said, “This fund does not compete with the budget, but is a fund for the future and it has to be managed and will keep growing”………………………………………..Full Article: Source

Rwanda: Airtel Staff Contribute Rwf40 Million to Agaciro Fund

Posted on 23 June 2015 by VRS  |  Email |Print

Airtel rwanda staff have contributed Rwf40 million to the national sovereign wealth fund, Agaciro Development Fund (AgDF). While handing over the contribution on Thursday, Teddy Bhullar, Airtel managing director, said the contribution is part of the company’s commitment toward the development of Rwanda to ensure prosperity for future generations.
“We thank our staff for this patriotic gesture, and for continuing to display a genuine commitment to the development of the country through this contribution and other national development activities that we have been participating in as a company………………………………………..Full Article: Source

Trust fund approach to basic income aims to take edge off political culture war

Posted on 23 June 2015 by VRS  |  Email |Print

Lawyer Joseph Chloupek has put forward a proposal for a US sovereign wealth fund that would provide a basic income of US$25,000 a year. The proposed approach aims to establish a political-economic modus vivendi between liberals and conservatives by giving each side something “they say they desire”.
The proposal’s starting point would be to “eliminate all tax exemptions secretly written into the tax code” whereupon the proceeds would be invested into a national trust account paying out an inflation-adjusted $25,000 a year at intervals chosen by the recipient. Alternatively, new legislation could direct the Fed to deposit US$10 trillion directly into the fund, according to Chloupek………………………………………..Full Article: Source

Bye Bye SIDF?

Posted on 22 June 2015 by VRS  |  Email |Print

If the St. Government heeds the advice of the IMF it could do away with channeling revenues from the sale of citizenships from the controversial SIDF into another type of fund. The IMF has recommended managing CBI revenue savings through an alternative investment vehicle such as a Sovereign Wealth Fund, which would have parliamentary oversight.
This is according to Ahmed El Ashram, IMF Economist for the Western Hemisphere, speaking at the inaugural Caribbean Region Citizenship By Investment Programs Meeting in St. Kitts on June 15. He gave a comprehensive presentation outlining how best St. Kitts-Nevis, and other countries in the region could manage the revenues gained from the CBI programs………………………………………..Full Article: Source

Rwanda’s sovereign wealth fund (Video)

Posted on 19 June 2015 by VRS  |  Email |Print

To help raise awareness on socio-economic development, the Rwandan government has introduced various initiatives over the recent years. One such initiative is Rwanda’s first Sovereign Wealth Fund, known as the Agaciro Fund that has now been incorporated into the national budget and will see up to 5 per cent stake of any privatized venture go into contribution to this fund. CNBC Africa’s George Ndirangu files the report.……………………………………….Full Article: Source

Egypt: Sovereign fund ready soon

Posted on 16 June 2015 by VRS  |  Email |Print

The legal framework for a proposed 5 billion Egyptian pound (R8bn) sovereign investment fund would be complete within four months, Egypt’s state news agency quoted the planning minister as saying yesterday. The government on Thursday approved a proposal to set up the “Amlak” fund, which will act as the state’s investment arm and is intended to encourage diversification and support sustainable economic and social development.
The fund would have a board of trustees headed by the prime minister and would be managed by investment banks in order to attract private sector investors to the projects it will fund, Planning Minister Ashraf al-Arabi said, according to the state news agency………………………………………..Full Article: Source

Nations fail to extract value from public assets worth more than GDP

Posted on 16 June 2015 by VRS  |  Email |Print

Citi chief economist Willem Buiter argues that one of the best ways to extract this value is through national wealth funds (NWF), ” a single institution, removed from direct government influence”. “This requires setting up an independent, ring-fenced body at arm’s length from daily political influence and enabling transparent, commercial governance,” he says.
The NWF differs from the more known sovereign wealth fund (SWF) in that the latter is a more liquid vehicle, investing largely in traded securities across major markets. A national wealth fund, by contrast, is more concerned with the “active management of operational assets as a portfolio”, Citi says………………………………………..Full Article: Source

Legal framework for Egypt investment fund to be ready soon -state news

Posted on 15 June 2015 by VRS  |  Email |Print

The legal framework for a proposed 5 billion Egyptian pound ($655 million) sovereign investment fund for Egypt will be complete within four months, the state news agency cited the planning minister as saying on Sunday.
The Egyptian government had on Thursday approved a proposal to set up the “Amlak” fund, which would act as the state’s investment arm and aims to encourage diversification and support sustainable economic and social development………………………………………..Full Article: Source

Egypt: Cabinet Approves SWF to Promote Egypt’s Wealth

Posted on 15 June 2015 by VRS  |  Email |Print

The cabinet has approved a proposal to establish a Sovereign Wealth Fund (SWF) to develop Egypt’s wealth. The SWF, to be named as “Amlak” will be owned by the state through the National Investment Bank. The fund will cooperate with Arab and international investment funds in big national projects in Egypt.
Planning Minister Ashraf el Araby said some state assets will be professionally run by the SWF in realization of transparency and performance improving to achieve maximum economic profits and growth of the state assets………………………………………..Full Article: Source

Egypt sovereign investment fund plan approved

Posted on 12 June 2015 by VRS  |  Email |Print

The Egyptian government said it had approved a proposal to set up a sovereign investment fund to support economic development through returns on the state’s assets and resources. The fund, called Amlak, will be state-owned through the National Investment Bank.
It will act as the state’s investment arm and aim to encourage diversification and support sustainable economic and social development, the cabinet said in a statement. The state “would not manage these investments directly,” according to the statement, citing the planning minister………………………………………..Full Article: Source

Vaughn Palmer: LNG prosperity fund as elusive as ‘debt-free B.C.’

Posted on 28 May 2015 by VRS  |  Email |Print

As the B.C. legislature approached the end of spring session this week, Opposition critic Carole James challenged Finance Minister Mike de Jong over the whereabouts of the B.C. Liberals’ $100-billion prosperity fund.
“The elusive prosperity fund,” as she dubbed it, mindful of how a promise that figured so prominently in the last election campaign has lapsed to relative obscurity ever since. Still, as James noted Monday, de Jong’s ministerial mandate includes crafting “legislation to create the prosperity fund” and working out how the fund will “contribute to eliminating the province’s debt” — which now totals some $64 billion……………………………………Full Article: Source

About that sovereign wealth fund…

Posted on 28 May 2015 by VRS  |  Email |Print

The opposition NDP has been asking the governing Saskatchewan Party where all the money has gone from the good fiscal times we’ve had in recent years. Given how Alberta has gone from boom to bust and is now in a provincial election as a result, that’s a good question, not just for our province, but also for our neighbours to the west.
Brad Wall said the money’s gone to health care and infrastructure and all sorts of other things. That may very well be the case. But looking at how provincial oil revenues are expected to flatline in this province this year, our so-called “balanced budget” is reliant on borrowing a big chunk of money. That’s not balanced. Instead we find ourselves looking back longingly and wondering, “What if?”…………………………………..Full Article: Source

CIC Launches Overseas Investment Fund Arm

Posted on 22 May 2015 by VRS  |  Email |Print

China’s sovereign wealth fund, China Investment Corporation (CIC), has created a new direct investment arm with US$5 billion in seed capital to help Chinese companies invest overseas, according to statements made by a senior government official quoted by Chinese media.
Gu Dawei, a director in charge of overseas investment at China’s National Development and Reform Commission, implied during a press conference yesterday in Beijing that the new investment entity could eventually be as large as over US$40 billion. “(The fund) will be large, potentially larger than the Silk Road Fund,” says Gu, referring to an investment fund established in November 2014 to invest in infrastructure projects in Asia to upgrade trade and transportation networks between China, Central Asia and Europe………………………………………..Full Article: Source

Bahamas’ Sovereign Wealth Fund Bill 2014.

Posted on 22 May 2015 by VRS  |  Email |Print

“Sovereign wealth funds (are) where money is set aside for investment to benefit a country and its people,” Kenred Dorsett, Minister of the Environment and Housing, Bahamas said, adding that its purpose will be to “save and invest surplus funds derived from oil, gas minerals and other natural resources to provide a heritage for future generations of the citizens of the Bahamas, to support and increase savings for future generations, to enhance sustainable long term capital growth for The Bahamas and to support and promote any other strategic development objectives of The Bahamas.”
“This fund,” he said, “is for the holding of money derived not only from petroleum but from the development of the natural resources of the country. We are creating a mechanism to ensure that any excess profits gained from such ventures will benefit future generations of The Bahamas.” The House of Assembly morning session was cut short because opposition members did not have an opportunity to see the amendments to the bills. The House of Assembly will meet again on May 26………………………………………..Full Article: Source

Sovereign dreams

Posted on 19 May 2015 by VRS  |  Email |Print

The concept of launching a sovereign fund, as suggested by the International Monetary Fund, wins the hearts of many as long as the government heeds public opinion. Although not everyone is convinced. Three years. That, apparently, is exactly how long the city’s fiscal reserves will take to accumulate its capital to “a comfortable level”. Indeed, the government thinks it is now time to study the establishment of a Macau SAR Investment Development Fund.
The announcement of the long-awaited initiative has won the overwhelming support of critics and analysts despite the lack of a detailed blueprint, in which the government can look into many directions but the bottom line is to heed public opinion………………………………………..Full Article: Source

Ireland’s sovereign wealth fund relaunches with EUR1bln investment

Posted on 05 May 2015 by VRS  |  Email |Print

Ireland’s sovereign wealth fund is set to re-emerge as a significant investor in the country’s recovering economy after the €64bn Irish banking collapse drained its resources during the crisis. The Ireland Strategic Investment Fund is the successor to the National Pension Reserve Fund, a rainy-day vehicle established in 2001 when the country was flush with Celtic Tiger-era cash.
One of the NPRF’s purposes was to provide for an expected explosion in pension payments as the Irish population ages after 2025. At its peak just before the Irish banking crisis of 2008-10, the NPRF had assets of €23bn and a broad investment portfolio. It received a cash injection each year from central government equivalent to 1 per cent of Irish gross national product………………………………………..Full Article: Source

SNP: a path to fiscal autonomy, but do the sums add up?

Posted on 22 April 2015 by VRS  |  Email |Print

Scottish National Party (SNP) manifesto says that, once fiscally independent, the SNP would lock Scotland into a balanced current budget regime, running a surplus in order to accumulate a sovereign wealth fund, which would give it leeway in any future negotiations over independence.
Second, how to square the three apparent aspirations: a) to go on spending more than Scotland is taxed; b) to run a balanced budget and c) to accumulate a sovereign wealth fund? These three commitments only make sense if they are achieved in sequence. Hidden deficits are run via the Barnett Formula until fiscal autonomy; thereafter you lock in balanced budgets and aim for a surplus, and then you build up a sovereign wealth fund…………………………………..Full Article: Source

WA govt won’t axe future fund: Barnett

Posted on 22 April 2015 by VRS  |  Email |Print

Western Australia has two years of financial pain to ride out but there’s no way the state government will raid its future fund, Premier Colin Barnett says. After Cabinet finalised the state budget on Monday, Mr Barnett said “large” deficits over the next two years could not be avoided.
But the future fund that was the centrepiece of the 2012/13 budget won’t be touched. Established with more than $1 billion in seed capital over four years using money from the Royalties for Regions fund, it aims to set aside cash from the state’s mineral resources for future generations…………………………………..Full Article: Source

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