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

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

A shale gas wealth fund for northern England, but what about the south?

Posted on 16 April 2015 by VRS  |  Email |Print

The UK’s Conservative party, running neck-to-neck in the polls with the Labour party ahead of the country’s May 7 general election, has released its 2015 manifesto. Among the commitments is a pledge to establish a shale gas wealth fund for the north of England.
UK Prime Minister David Cameron, leader of the Conservatives, Tuesday launched his party’s plans should they win a new five-year term in power. The manifesto includes amongst its promises the creation of “a Sovereign Wealth Fund for the North of England, so that the shale gas resources of the North are used to invest in the future of the North.”……………………………………….Full Article: Source

Macau’s sovereign fund proposal ready in Q4

Posted on 16 April 2015 by VRS  |  Email |Print

The AMCM head says Macau will support the central government’s ‘one belt, one road’ development strategy and the China-led Asian Infrastructure Investment Bank. The president of the Monetary Authority of Macau (AMCM), Anselmo Teng, said the authorities are trying to have the Macau SAR investment fund’s detailed proposal ready by the fourth quarter of this year.
At the AMCM Spring cocktail reception yesterday, Anselmo Teng said that adhering to the principle of playing safe the SAR will support the central government’s initiatives and hopefully diversity its investment portfolio………………………………………..Full Article: Source

Angola Sets Up Five Venture Capital Funds Worth $1.4 Billion

Posted on 15 April 2015 by VRS  |  Email |Print

The Angola Sovereign Fund has set up five venture capital funds for high-growth industries and the economic and social development of Angola and sub-Saharan Africa, the fund said in a statement sent to Macauhub.
The statement, issued Monday, said that the five funds have starting capital of US$ 1.4 billion to be invested in venture capital investments over the next three to five years in projects in the mining, logging, agriculture and health sectors. The fifth fund, called “Mezzanine Fund” is intended to support entrepreneurs where financing through traditional debt does not apply, providing US$250 million over the next five years………………………………………..Full Article: Source

Investment in Sovereign Legacy Fund: Maurice enters the big league

Posted on 27 March 2015 by VRS  |  Email |Print

The state kills a major card in the management of its revenues. With the establishment of a Sovereign Legacy Fund, Maurice joined a league of nations where there are Norway, Saudi Arabia and Singapore. The sovereign funds of these countries is to grow the surplus from the marketing of petroleum products. This money is mainly used to compensate for any drop in state revenues given the volatility of oil prices on the world market.
This type of fund is invested mainly in blue chip stocks. “A sovereign wealth fund has a diversified investment portfolio,” says Poonam Teeluck, Associate Director at Elysium Capital, an investment bank. “This type of fund is active in the treasury bonds, commodities, real estate, to name a few. Some of these funds are so massive, with assets worth one trillion dollars that they can meet the needs of the country for decades. This is Norway, which has the largest sovereign fund, worth $ 860 billion, or Rs 31,600 billions! Maurice, so well that entering in this league, is less than a grain of sand, especially as the country is rich by its people, not its basement. (Translated)……………………………………….Full Article: Source

Radical financial steps for the government: Setup a sovereign wealth fund

Posted on 26 March 2015 by VRS  |  Email |Print

We may have already missed the windfall opportunity from the mining boom to collect a significant amount of wealth, but there’s no time like the present to set up a sovereign wealth fund to benefit future generations such as the one established by Norway. Using proceeds from off-shore oil over 25 years, the fund is now worth more than US$1 trillion. The government is limited what it can take from the fund, so it continues to grow.
Ok, yes there may be some exceptions to each of these steps. And yes, some of these will negatively affect me. But I want Australia to be a prosperous nation, where taxes are fairer and certain sectors don’t benefit at the expense of others. If I have to bear some of that pain to see that vision come true then I’m 100% willing………………………………………..Full Article: Source

Greece to roll out SWF

Posted on 18 March 2015 by VRS  |  Email |Print

Greece will shortly present a law to turn its privatisation agency into a wealth fund that will use proceeds to finance social welfare policies instead of reducing its public debt, the deputy finance minister said.The move could further strain relations between Prime Minister Alexis Tsipras’ new left-wing government and Greece’s international creditors, who want Athens to use the revenues to cut its huge debtload.
“There will be a new Sovereign Wealth fund … and the revenue will be used to fund the government’s social policies and to support the social security system,” said Deputy Finance Minister Nadia Valavani. Valavani told a parliamentary committee she would present legislation in the coming weeks to merge the privatisation agency (HRADF) with the country’s state property company, ETAD, to set up the new body………………………………………..Full Article: Source

UK Pensions Told to Copy Canada, SWFs

Posted on 04 March 2015 by VRS  |  Email |Print

UK pensions should be able to compete on the international stage, and can draw inspiration from major overseas investors, London’s pensions body believes. The UK’s public sector pensions should be competing for infrastructure assets alongside sovereign wealth funds and other major international investors, the deputy chairman of the London Pension Fund Authority (LPFA) has said.
Sir Merrick Cockell, former chair of the UK’s Local Government Association, made an impassioned plea for public funds to embrace active management and alternative assets, in a speech last week to other council pension fund staff……………………………………….Full Article: Source

India’s de-facto sovereign wealth fund

Posted on 02 March 2015 by VRS  |  Email |Print

Finance minister Arun Jaitley said the National Investment Trust, which the government plans to set up as a vehicle to drive its infrastructure push will be an independent entity managed by world class professionals. “We have said effectively this will be a de-facto sovereign wealth fund. We are putting in Rs 20,000 crore a year and we can leverage three four times and we have Rs 100,00 core a year to put into infrastructure,” said Sinha, the eldest son of former finance minister Yashwant Sinha.
“You add the money we will get from National Infrastructure Bonds. We have all the capital that we need to invest in infrastructure now what we now need is to find the people, find the projects that can take forward this capital. We have received tremendous interest from a variety of large funds both sovereign wealth funds as well as large pension funds that want to co-invest with us,” he said………………………………………..Full Article: Source

Poelzer: Saskatchewan needs a resource wealth fund

Posted on 25 February 2015 by VRS  |  Email |Print

To say the rapid drop in oil prices has sent shock waves across the global economy might be the understatement of 2015. Only a few months ago, Canada was touting its aspirations and capacity to become an energy superpower. Today, the federal government and oil-producing provinces that include Saskatchewan and Alberta are urgently dealing with unanticipated budget shortfalls.
In January, Finance Minister Joe Oliver announced that the federal government would postpone its budget by at least two months - a move that is almost without precedent. In Alberta, the engine room of Canada’s emerging energy superpower ambitions, Premier Jim Prentice warned of spending cuts of nine per cent in the upcoming budget………………………………………..Full Article: Source

Can LNG continue to fuel Papua New Guinea’s economic growth?

Posted on 25 February 2015 by VRS  |  Email |Print

Although in the future, the stabilisation component of the planned sovereign wealth fund should reduce the short-term budgetary impact of a volatile energy market, this will only work as long as the fund is run transparently and in accordance with the Santiago Principles (as opposed to the furtive accountability of many of PNG’s state-owned enterprises).
PNG thus needs to avoid accumulating debt through unsustainable deficits or major further borrowing, particularly for activities which are marginal to government functions, such as equity acquisition (except under the auspices of the sovereign wealth fund)………………………………………..Full Article: Source

Bud Smith: B.C. Prosperity Fund is no golden ticket

Posted on 11 February 2015 by VRS  |  Email |Print

Lst year’s budget said that the Prosperity Fund wouldn’t move forward until the LNG tax was finalized, and that happened last fall. This makes now a good time to renew the discussion about a sovereign wealth fund in B.C. First off, let’s revisit what a sovereign wealth fund is and why resource-dependent regions use them. When it was first announced, the B.C. Prosperity Fund was pitched as a way for B.C. to pay off its debt, reduce taxes, and pay for social services.
The new money would be tax revenue from a new LNG industry, and B.C. could conceivably use it to pay off debts or lower taxes or build hospitals without creating a sovereign wealth fund. So why do it? Sovereign wealth funds are generally created for two main reasons: to stabilize government finances when prices for natural resources rise and fall, and to preserve resource wealth for the future………………………………………..Full Article: Source

A citizen’s income and wealth fund for the UK: Lessons from Alaska

Posted on 11 February 2015 by VRS  |  Email |Print

If the UK wants to establish a citizen’s, as opposed to a sovereign wealth fund, then the lesson is that citizens are more likely to monitor and care about the performance of that fund if they are individual, direct beneficiaries of its performance.
Equally, a basic income attached to individuals as a right of citizenship is more likely to be realised and entrenched if it is bundled up with a permanent funding source, and so is quarantined from the vicissitudes of annual budget rounds and spending decisions………………………………………..Full Article: Source

China operationalises USD 40 billion to Silk Road fund

Posted on 06 February 2015 by VRS  |  Email |Print

China has appointed top officials to manage a USD 40 billion fund to finance its most ambitious global plan - the Silk Roads and Maritime Silk Road - to build major infrastructure projects aimed to enhance its strategic influence and blunt the US’ big push into Asia-Pacific.
China Investment Corp, the country’s sovereign wealth fund, will hold 15 per cent stake in the Silk Road Fund. Two other State-owned financial institutions - the Export-Import Bank of China and China Development Bank Capital Co - will hold the rest of the stake, the daily said………………………………………..Full Article: Source

Gulf countries to invest in Egypt sovereign fund

Posted on 05 February 2015 by VRS  |  Email |Print

Saudi Arabia, the United Arab Emirates and Kuwait are considering investing in a multibillion-dollar “sovereign fund” to finance projects in Egypt, according to a senior government official in Cairo. Al-Youm al-Sabei, an Egyptian newspaper, reported on Wednesday that the Gulf countries would invest $10bn in the fund ahead of a high-profile international investment conference in Sharm el-Sheikh next month.
The official, who would not confirm the sums involved, said the “sovereign fund . . . would invest in renewable energy, infrastructure projects and job creation schemes” in Egypt. He added: “It will also fund projects in health and education. There is a lot of attention to the social dimension of the economic reform process”………………………………………..Full Article: Source

India revives sovereign fund for overseas fertilisers

Posted on 30 January 2015 by VRS  |  Email |Print

With India’s foreign exchange reserves touching an all-time high of $322-billion, the country’s Department of Fertilisers has revived a three-year-old proposal to create a sovereign fund for the acquisition of mineral assets overseas.
An official said that the proposal was still at a nascent stage and yet to be discussed with the Finance Ministry and, as a result, he could not comment on the size of the fund aimed at securing foreign assets. Four years ago, the Department of Fertilisers completed the groundwork for creating a $1-billion sovereign fund for ensuring fertiliser supply security, establishing linkages with mineral assets overseas……………………………………….Full Article: Source

Shale gas wealth fund could bankroll environmental improvements

Posted on 27 January 2015 by VRS  |  Email |Print

A fracking wealth fund could be used to invest in new forests, wildlife reserves and improvements in air quality, the government’s Natural Capital Committee (NCC) will say today. The committee’s latest report looks at potential ways of funding a 25-year plan to preserve the essential ‘natural capital’ services that forests, rivers, minerals and seas provide to the economy and halting the “long-term decline” of England’s natural environment.
Tax receipts from shale gas or North Sea oil could be one way to help pay for such a programme, according to the NCC, which calculates a resource fund raised from the oil and gas industry since the mid-1970s could have raised more than £300bn so far………………………………………..Full Article: Source

London and Manchester Create Rival to Sovereign Wealth Funds

Posted on 23 January 2015 by VRS  |  Email |Print

Pension funds in London and Manchester have joined forces for a £500 million ($757 million) infrastructure fund that could expand to rival the multibillion-dollar sovereign-wealth funds that are regular buyers of large U.K. development projects such as railroads and airports.
The joint venture between the London Pensions Fund Authority and the Greater Manchester Pension Fund comes less than two months after the LPFA agreed a separate £10 billion partnership with the Lancashire County Pension Fund in northern England. Both partnerships are “seeds” of ventures that could expand into larger collaborations between U.K. pension funds, according to Kieran Quinn, chairman of the Manchester pension fund………………………………………..Full Article: Source

Mining communities must benefit from bauxite/alumina revival, say MPs

Posted on 19 January 2015 by VRS  |  Email |Print

They are happy that bauxite mining is about to resume and that the Alpart (alumina) plant in Nain which has been closed since 2009 is to be reopened in 2016. However, parliamentarians Michael Peart and Richard Parchment who represent communities most affected in neighbouring South Manchester and South-Eastern St Elizabeth want to make sure that this time around those areas get maximum benefits from bauxite mining and alumina refining.
Capital development apart, Peart also visualises the building of a sovereign wealth fund from bauxite/alumina earnings. He identified Norway’s oil-based sovereign wealth fund, set up in 1994 and said to be worth in excess of a trillion US dollars, as a model to be followed. “When Norway discovered oil, they set up a wealth fund. Now everybody in Norway is a millionaire. Why we can’t do something like that?” said Peart………………………………………..Full Article: Source

PNG: The World’s Biggest Grower in 2015?

Posted on 15 January 2015 by VRS  |  Email |Print

During the 23rd Australia-PNG Ministerial Forum, Australian Foreign Minister Julie Bishop noted Canberra’s desire to “make sure that PNG has in place a sovereign wealth fund so that the money they are receiving from these massive energy projects can be spread throughout PNG.” She also announced plans to support gender equality (the prevalence of violence against women is likened to that seen in war-zones) and support the transformation of the public service.
Both the creation of a sovereign wealth fund and changes to public service sector should help deal with some of PNG’s more endemic problems. Allegations of government corruption have been of major concern. The prime minister will later this month face charges of misconduct in office. Similarly, the grace period for the prime minister against motions of no confidence ends in 2015 and thus could see him more vulnerable if things go awry………………………………………..Full Article: Source

Is Canada planning a sovereign wealth fund for its natural resources?

Posted on 09 January 2015 by VRS  |  Email |Print

In order to fully optimize Canada’s strategic niche and promote the sustainable development of Canada’s natural resources, a sovereign wealth fund should be established in order to stop borrowing from tomorrow to fund today. A sovereign wealth fund can assist in accomplishing both, while still allowing Canada to exploit its strategic niche.
As demand grows for natural resources, 60 per cent over the next 20 years, Canada’s earning potential is great. The creation of a sovereign wealth fund promotes sustainable long-term capital growth through a clear means of attaining a return on state assets in natural resources by separating revenues from natural resources from state budgets………………………………………..Full Article: Source

Mexico launches sovereign oil fund

Posted on 05 January 2015 by VRS  |  Email |Print

Mexico’s sovereign oil fund, created as part of the country’s energy reforms, has begun to operate, according to the central bank. The oil fund for stabilization and development will receive, manage and distribute the revenues from the hydrocarbons sector, transferring funds to the government. Surplus funds will be channeled into a long-term savings plan for future generations, the central bank said in a statement.
The oil fund will finance oil and gas E&P, as well as infrastructure, pensions and research and development projects, bank governor Agustín Carstens told legislators in June. In testimony before treasury and energy committee lawmakers debating the reform’s secondary legislation, Carstens said such funds have proven successful in at least 26 other countries………………………………………Full Article: Source

North of England dominates Regional Growth Fund allocations

Posted on 05 January 2015 by VRS  |  Email |Print

Business located in the North East and North West of England have received more Regional Growth Fund (RGF) commitments than any other regions in the country, new statistics have showed. A new sovereign wealth fund is also set to be established, so that tax revenues from shale gas fields in the North of England go towards local projects.
Having been set up in 2010 by deputy prime minister Nick Clegg, the RGF has now supported 8,000 companies through the distribution of £1bn………………………………………Full Article: Source

Saudi finance minister says no need to create sovereign wealth fund

Posted on 02 January 2015 by VRS  |  Email |Print

Saudi Arabia’s finance minister said there was no need for the kingdom to create a sovereign wealth fund to manage its oil wealth, rebuffing suggestions by prominent officials and businessmen. At present, the surplus petrodollars of the world’s top oil exporter are mostly invested abroad by the Saudi Arabian Monetary Agency (Sama), its central bank, which had net foreign assets worth SR2.75 trillion riyals ($733bn) in October.
Most of that money is believed to be in low-risk US dollar assets such as US Treasury bonds and bank accounts, which tend to earn low returns compared to the more aggressive, higher-risk investments favoured by some other rich oil exporters. So as oil prices have plunged this year, there have been calls for Saudi Arabia to create a sovereign wealth fund that would invest its money more actively, making up for the reduction in oil revenues………………………………………..Full Article: Source

Qatar’s New Diversification Fund Attracts Investors

Posted on 19 December 2014 by VRS  |  Email |Print

Qatar is the richest country in the world, when figured on a per capita basis. In 2005, to reduce the risk to its surplus income from oil and gas revenues from fluctuations in energy prices, it launched its sovereign wealth fund the Qatar Investment Authority (QIA), which now reportedly manages as much as $300 billion.
In November QIA launched a $10 billion investment fund together with China’s CITIC Group Ltd. to diversify away from Europe’s slowing economy into Asia and elsewhere. QIA, already hugely invested in Europe. It owns investments ranging from luxury hotels and real estate to financial services firms, automotive companies and high-end retail (and is now looking to Asia to boost growth and to further insulate its investments from volatility………………………………………..Full Article: Source

Julie Bishop urging PNG to establish a sovereign wealth fund

Posted on 15 December 2014 by VRS  |  Email |Print

Julie Bishop is in Papua New Guinea urging its government to establish a sovereign wealth fund to ensure the whole nation benefits from its natural gas boom. Ms Bishop flew to PNG yesterday with Immigration Minister Scott Morrison, Defence Minister David Johnston and Justice Minister Michael Keenan for talks that will also focus on defence and policing co-operation, the resettlement of asylum-­seekers and help for PNG in providing security when it hosts the 2018 APEC summit.
PNG is also looking for ways to strengthen its public service through improved education and training. Bishop told the Sky News Australian Agenda program yesterday that PNG was going through an energy renaissance, with a huge natural gas project about to come online………………………………………..Full Article: Source

Angola sovereign fund allocates $1.6bn to Africa projects

Posted on 12 December 2014 by VRS  |  Email |Print

Oil-rich Angola’s sovereign wealth fund has set aside $1.6 billion to back infrastructure and hotel projects across sub-Saharan Africa, though falling energy prices could slow future flows of new money into its coffers.
In an investment update for the three months to September 30, the Fundo Soberano de Angola (FSDEA) said on Wednesday its net value now stands at $4.95 billion, net of running costs taken out of the original $5 billion endowed by the government………………………………………..Full Article: Source

New $1.6bn Infrastructure Fund Launched In Angola to Offset Drop in Oil Prices

Posted on 12 December 2014 by VRS  |  Email |Print

Angola’s sovereign wealth fund (SWF) has launched $1.6bn African infrastructure and hotel funds to help diversify its portfolio as the slide in crude prices threatens the country’s oil-dependent economy. The $5bn SWF, which was set up two years ago but only began to deploy its cash this year, is allocating $1.1bn to a fund that will invest in energy, transport and other infrastructure projects across sub-Saharan Africa.
A further $500m will go to a fund that will acquire hotels and backs greenfield developments. This fund will seek international groups to manage and operate its hotels. Jose Filomeno Dos Santos, chairman of the SWF and the son of Angola’s president, José Eduardo dos Santos, told the Financial Times that the slide in oil prices was not a “reason to panic.”……………………………………….Full Article: Source

Angola launches $1.6bn Africa infrastructure fund

Posted on 11 December 2014 by VRS  |  Email |Print

Angola’s sovereign wealth fund has launched $1.6bn African infrastructure and hotels funds to help diversify its portfolio as the slide in crude prices threatens the country’s oil-dependent economy.
The $5bn SWF, which was set up two years ago but only began to deploy its cash this year, is allocating $1.1bn to a fund that will invest in energy, transport and other infrastructure projects across sub-Saharan Africa………………………………………..Full Article: Source

Moody’s: Suriname has favorable growth outlook and relatively low government debt

Posted on 10 December 2014 by VRS  |  Email |Print

Suriname’s rating balances a favorable growth outlook and relatively low government debt and interest burdens against an elevated economic and fiscal vulnerability to commodity price volatility and low institutional capacity.
The authorities have been working on establishing a sovereign wealth and stabilization fund that could hedge the government’s exposure to commodity price fluctuations and reduce pro-cyclical discretionary spending from commodity revenue windfalls, but the process has encountered various political obstacles. Positive rating momentum could develop from a sustained narrowing of the fiscal deficit that supports a reversal of the upward trend in government debt metrics or if substantial fiscal savings accumulate in a sovereign wealth fund………………………………………..Full Article: Source

Fracking fund idea attacked

Posted on 08 December 2014 by VRS  |  Email |Print

The heated debate over fracking was ignited once again today after Chancellor George Osborne confirmed plans for a shale gas “sovereign wealth fund” to boost the north of England. The Chancellor reiterated that the Government wanted to encourage the development of shale gas – a move yet to be approved by Lancashire planners.
Mr Osborne yesterday used his autumn statement to confirm he was in favour of a new investment fund to be created from shale gas tax revenues that will be reinvested locally. Friends of the Earth accused Mr Osborne of putting “powerful interests and big polluters ahead of our health, homes and wellbeing.”……………………………………….Full Article: Source

UK: The Autumn Statement And Shale Gas: Overcoming Resistance?

Posted on 05 December 2014 by VRS  |  Email |Print

The notion of a shale gas Sovereign Wealth Fund isn’t new. It was mentioned in early 2013, and considered by the House of Lords just last month.
By including it in his Autumn Statement it seems that the Chancellor is keen to raise the profile of the initiative and ensure that momentum is not lost. Reducing local opposition is key to overcoming some of the significant challenges presented by the planning process……………………………………….Full Article: Source

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