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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

PNG drops sovereign wealth fund plans

Posted on 21 March 2014 by VRS  |  Email |Print

Papua New Guinea appears to have dropped plans to create a sovereign wealth fund to finance its purchase of a stake in gas company Oil Search after Australia backed the fund with aid money. Revenue from the PNG liquefied natural gas project, which was supposed to flow into the wealth fund, will now be pledged as collateral for the $1.3 billion purchase of a 10.1 per cent holding in Oil Search.
The two countries inked a 2009 agreement saying PNG would provide advice to Australia about the objectives of the sovereign wealth fund and Australia would offer assistance on how to establish a fund………………………………………..Full Article: Source

Israel: Natural gas sovereign wealth fund merits further discussion

Posted on 19 March 2014 by VRS  |  Email |Print

Israel should not invest its natural gas revenues in foreign markets as planned, but in domestic “social-environmental causes,” lawyer-businessman Shraga Biran argued on Tuesday. “You need to find a social fund that will help this generation and the future generation,” he said.
Biran was participating in a panel on the country’s sovereign wealth fund for natural gas profits. The cabinet approved the creation of such a fund – which calls for the investment of the expected $125 billion of profits in foreign markets – in April 2013………………………………………..Full Article: Source

Zimbabwe: Set up wealth fund after budget surplus

Posted on 13 March 2014 by VRS  |  Email |Print

Zimbabwe should set up its sovereign wealth fund when it achieves budget surplus to avoid worsening budget deficits, Norway’s former deputy minister of finance Mr Vidar Ovesen said. Norway manages the world’s largest SWFs and has contributed about US$60 billion to the country’s fiscus from the more than US$850 billion revenue derived from petroleum since its set up in 1990.
Ovesen made the remarks during a seminar in Harare yesterday to educate law makers on the country’s new economic plan: the Zimbabwe Agenda for Sustainable Socio-Economic Transformation………………………………………..Full Article: Source

Zimbabwe’s wealth fund gets approval from parliament committee

Posted on 06 March 2014 by VRS  |  Email |Print

Zimbabwe’s Parliamentary Legal Committee said the country’s Sovereign Wealth Fund Bill doesn’t contravene the constitution, paving the way for the adoption of legislation that could see the fund allocated as much as a quarter of mining royalties.
The proposed legislation also recommends that the fund get a quarter of “special dividends” on state mineral and metal sales. It will mainly be used to pay for infrastructure development………………………………………..Full Article: Source

Lebanon: Plan an oil and gas sovereign wealth fund

Posted on 06 March 2014 by VRS  |  Email |Print

In the coming years, Lebanon could begin to reap the benefits of its offshore oil and gas reserves. These resources could be worth tens of billions of dollars in a country where annual gross domestic product is little more than $40 billion.
This new source of wealth has the potential to completely transform the country’s economy and society. But the dangers are also clear; almost every society that discovers resources ends up less competitive in other key sectors of the economy — the so-called ‘resource curse.’ Whether Lebanon can avoid this or not depends on how it manages sustainable development………………………………………..Full Article: Source

Egypt to create a sovereign fund to manage public business sector

Posted on 05 March 2014 by VRS  |  Email |Print

Nine Egyptian public holding companies and their subsidiaries will soon be under an independent sovereign fund. The fund to restructure the public companies will be managed directly by the prime minister’s cabinet, said Hisham Ramez, governor of Egypt’s Central Bank (CEB), following a meeting with newly appointed Prime Minister Ibrahim Mehleb.
Egypt’s public sector was formerly under the investment ministry, which was recently merged with the ministry for foreign trade and industry following last week’s cabinet reshuffle to form a tripartite bureau – Ministry of Investment, Foreign Trade and Industry………………………………………..Full Article: Source

Norways giant oil fund likes everyone else’s whipping boy

Posted on 03 March 2014 by VRS  |  Email |Print

Norway’s oil fund, the world’s biggest sovereign wealth fund, has just announced that it had its second-best year ever. Norges Bank Investment Management, the arm of the central bank that manages the fund, said gains were driven by bouncy equity markets while bond markets barely returned anything at all.
Among the interesting nuggets in the presentation: a particular enthusiasm for emerging markets debt—the whipping boy of 2013. Last year was pretty grim for developing countries. Concerns over an unwinding of monetary stimulus by the Fed as well as economic weakness sent investors scurrying out of emerging markets. Currencies tumbled and bond yields surged in many regions………………………………………..Full Article: Source

How a German sovereign wealth fund could help to rebalance the eurozone

Posted on 03 March 2014 by VRS  |  Email |Print

Germany is on the dock, big time. In its 2013 ‘Alert Mechanism Report’ the European Commission announced that Germany jointly with Luxembourg would have to undergo a thorough review of its potentially disturbing high current account surplus.
The procedure is a legal necessity given that over the last three years Germany’s surplus has been above the critical level of 6% of its GDP. The Commission’s alert was preceded by a stern warning in a report to the US-Congress on international exchange rates in regards to the potentially deflationary impact of Germany’s current account surpluses………………………………………..Full Article: Source

War of words over SNP’s plans for sovereign oil fund

Posted on 27 February 2014 by VRS  |  Email |Print

The future of North Sea oil and gas continued to dominate the independence battle as politicians clashed over plans for a wealth fund. Scottish Secretary Alistair Carmichael warned that an independent Scotland would have no hope of emulating Norway’s £500billion oil fund, claiming the SNP was trying to “fool” people into thinking it could do so.
The SNP responded, saying UK ministers were the ones trying to dupe Scots into thinking that the nation was the only place in the world where oil was a “burden and not a bonus”………………………………………..Full Article: Source

LNG funds for PNG’s sovereign wealth fund: Treasuer Polye

Posted on 26 February 2014 by VRS  |  Email |Print

Papua New Guinea Treasury Minister Don Polye has stated that all proceeds from the sale of the liquefied natural gas (LNG) Project will go directly into the Sovereign Wealth Fund.
“I would like to assure the people of Papua New Guinea that all proceeds of LNG will go directly into the SWF and I mean 100% of it. The first sale of the LNG will begin this year and the projected growth of the economy will be roughly approximately valued around K52 billion (US$20 billion) when the first proceeds of the sales of LNG start coming in………………………………………..Full Article: Source

Korea Investment Corporation–Re-imaging the state in the global sphere

Posted on 24 February 2014 by VRS  |  Email |Print

At about $64 billion (2013), the sovereign wealth funds managed through the Korea Investment Corporation is among the smaller funds. As a member of the International Forum of Sovereign Wealth Funds, the KIC shares certain characteristics with the larger SWFs, grounded on the GAAP of the Santiago Principles.
The KIC is also a relatively new fund. It was established in 2005 under the Korean Investment Corporation (KIC) Act No. 7393 (2005) as a non-commodity fund; or better put, as a government owned investment management company that specializes in overseas investment (Sovereign Wealth Fund Institute, South Korea)………………………………………..Full Article: Source

Mozambique: No sovereign wealth fund yet - Finance minister

Posted on 24 February 2014 by VRS  |  Email |Print

The Mozambican government does not, at least in the short term, intend to use money from natural resources to set up a sovereign wealth fund, Finance Minister Manuel Chang said.
Asked by the independent television station STV what the government would do with the latest capital gains tax paid on the sale of assets in the Rovuma Basin, off the coast of the northern province of Cabo Delgado, where enormous natural gas deposits have been discovered. Chang said the first priority was to clear the Value Added Tax (VAT) rebates which the government owes companies………………………………………..Full Article: Source

Malaysia: Oil wealth must be controlled by Parliament

Posted on 21 February 2014 by VRS  |  Email |Print

An opposition MP has proposed setting up a sovereign wealth fund to prevent the government in power from abusing Malaysia’s oil riches as a personal piggy bank.
Compared to oil-rich Norway which today has the richest sovereign wealth fund in the world at RM2.7 trillion, PKR MP Nurul Izzah Anwar lamented the fact that Malaysia’s equivalent oil fund, the Petronas-backed Kumpulan Wang Amanah Negara (Kwan), only has RM5.43 billion………………………………………..Full Article: Source

Like Norway, create Malaysian millionaires with special oil fund, MP suggests

Posted on 21 February 2014 by VRS  |  Email |Print

A federal lawmaker urged Putrajaya today to set up a special oil fund for Malaysians like Norway’s pension fund, which recently ballooned to USD828.66 billion (RM2.7 trillion) and turned every Norwegian into theoretical millionaires.
PKR’s Lembah Pantai MP Nurul Izzah Anwar said most of the revenue from Malaysia’s national oil company Petronas should not continue to be spent, but be set aside for rainy days in the future like Norway’s oil fund. “Petronas cannot continue to be the prime minister’s and his Cabinet’s personal bank, with almost 40 per cent of the revenue from petroleum being used in the country’s budget,” she said……………………………………….Full Article: Source

Kuwaiti MP proposes trust fund for citizens from birth

Posted on 21 February 2014 by VRS  |  Email |Print

A Kuwaiti MP filed a bill Thursday to create a government-funded trust fund for every citizen from birth that would become an 18th birthday present of around $40,000 (29,200 euros). Under MP Askar al-Enezi’s proposal, the government of the oil-rich Gulf state would deposit 50 dinars ($177) each month into an account for each citizen from the time of birth.
The money would be managed by the country’s sovereign wealth fund, Kuwait Investment Authority, and the capital and profits handed to citizens when they become adults………………………………………..Full Article: Source

Philippines: Gov’t mulls setting up sovereign wealth fund

Posted on 19 February 2014 by VRS  |  Email |Print

Finance Secretary Cesar Purisima on Tuesday said the government is open to establishing a sovereign wealth fund to bring in more revenues. He said discussions are being made by the national government and the Bangko Sentral ng Pilipinas, but no decision has been made yet.
“There are several ways of putting it up, either the Bangko Sentral as part of the reserve employment strategy or the national government to put it up from the national government standpoint, but no decision has been made,” Purisima explained………………………………………..Full Article: Source

Onyekakeyah: Understanding Nigeria’s sovereign wealth fund

Posted on 18 February 2014 by VRS  |  Email |Print

When in 2010, the National Economic Council (NEC) approved a plan to replace the Excess Crude Account (ECA), with a Sovereign Wealth Fund (SWF), there was a lot of fuss from different quarters across the country. Many wondered what sort of idea was being thrown up. A Sovereign Wealth Fund! What could that mean?
While the state governors, who were the direct beneficiaries of the Excess Crude Account, vehemently opposed the idea, preferring to have the money shared out as usual, ordinary Nigerians were not amused by what they thought was another drain pipe being hatched by government to fritter away money. Not a handful of Nigerians understood, believed or appreciated the import of a sovereign wealth fund……………………………………….Full Article: Source

African nations race to build funds

Posted on 17 February 2014 by VRS  |  Email |Print

Resource-rich African countries are busy setting up sovereign wealth funds, but critics say the funds may not serve the long-term interests of poor countries that still need to invest in basics such as schools and roads.
Three oil producers, Angola, Ghana and Nigeria, started funds in the last two years. Before them, only Botswana, Gabon and Equatorial Guinea had such schemes. Other countries are following. Zambia and Liberia announced plans for funds last month. Tanzania, Kenya, Uganda, Mauritius, Mozambique and Zimbabwe have similar intentions………………………………………..Full Article: Source

African nations race to build sovereign funds

Posted on 14 February 2014 by VRS  |  Email |Print

Resource-rich African countries are busy setting up sovereign wealth funds, but critics say the funds may not serve the long-term interests of poor countries that still need to invest in basics such as schools and roads.
Three oil producers, Angola, Ghana and Nigeria, started funds in the last two years. Before them, only Botswana, Gabon and Equatorial Guinea had such schemes. Other countries are following. Zambia and Liberia announced plans for funds last month. Tanzania, Kenya, Uganda, Mauritius, Mozambique and Zimbabwe have similar intentions………………………………………..Full Article: Source

India: Govt not to introduce sovereign wealth fund for pension sector

Posted on 10 February 2014 by VRS  |  Email |Print

The government does not propose to set up a Sovereign Wealth Fund for the pension sector. “At present, there is no proposal under the consideration of the Department of Economic Affairs in the Ministry of Finance to set up a Sovereign Wealth Fund,” Minister of State for Finance told the Parliament.
A sovereign wealth fund (SWF) 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

Taiwan: Set up sovereign wealth fund to stimulate economy

Posted on 06 February 2014 by VRS  |  Email |Print

In its efforts to stimulate economic growth, the government would do well to set up a sovereign wealth fund with Taiwan’s huge foreign reserves to pump into national development projects. Economic growth is driven by four factors: consumption, investment, net exports and public spending. All four have been stagnant in Taiwan.
Consumption has remained flat because of a decline in real income; investment is actually decreasing on the sluggish global economy; exports have also plunged because of feeble demand from European and American markets; and public spending has not expanded because of the government’s reluctance to increase spending by borrowing………………………………………..Full Article: Source

Zimbabwe: Minister Chinamasa tables SWF bill

Posted on 03 February 2014 by VRS  |  Email |Print

Finance Minister Patrick Chinamasa yesterday tabled the Sovereign Wealth Fund of Zimbabwe Bill in the National Assembly. The Bill seeks to establish a fund administered by a board whose objective is to secure investments for the benefit and enjoyment of future generations.
The Bill was read for the first time and National Assembly speaker, Cde Jacob Mudenda, referred it to the Parliamentary Legal Committee which scrutinises all proposed legislation to ensure it is consistent with the Constitution………………………………………..Full Article: Source

Zimbabwe: SWF Bill crucial for long-term economic development: AAG

Posted on 31 January 2014 by VRS  |  Email |Print

Affirmative Action Group Manicaland chapter has applauded the recently gazetted Sovereign Wealth Fund Bill as a key measure to support the future macro-economic stabilisation programmes by Government, including long-term economic and social development objectives.
Government on January 10 gazetted the Sovereign Wealth Fund Bill which is set to be tabled in Parliament for debate. The Bill seeks to establish a fund to be administered by a board whose objective is to secure investments to support the developmental objectives of the Government………………………………………..Full Article: Source

Min Chinamasa tables SWF Bill

Posted on 31 January 2014 by VRS  |  Email |Print

Finance Minister Patrick Chinamasa tabled the Sovereign Wealth Fund of Zimbabwe Bill in the National Assembly. The Bill seeks to establish a fund administered by a board whose objective is to secure investments for the benefit and enjoyment of future generations.
The Bill was read for the first time and National Assembly speaker, Cde Jacob Mudenda, referred it to the Parliamentary Legal Committee which scrutinises all proposed legislation to ensure it is consistent with the Constitution………………………………………..Full Article: Source

Mongolia mulls sovereign wealth fund

Posted on 28 January 2014 by VRS  |  Email |Print

Mongolia is mulling a plan to use its mounting income from the mining sector to establish a sovereign wealth fund. An apparent reaction by the president to concern that the country is not leveraging that revenue to the benefit of the wider population, the fund would be used to promote long-term economic development.
President Tsakhia Elbegdorj’s bill on launching the “Treasury Fund”, was discussed in the President’s Civil Hall on January 24, UB Post reports. Presidential Advisor Luvsandash Dashdorj criticised the government’s lack of a “clear system and policy” to handle the income from Mongolia’s rising raw materials exports……………………………………….Full Article: Source

Canadian sovereign-wealth funds: The year of the ant

Posted on 27 January 2014 by VRS  |  Email |Print

Twenty years before Norway began stashing away oil and gas revenue for future generations, the Canadian province of Alberta set up a sovereign-wealth fund (SWF), as such state-owned hoards are known. Sadly, the Heritage Savings Trust Fund has not lived up to expectations.
Although it has been around since 1976, it contains only C$16.8 billion ($15.3 billion). Norway’s stripling SWF, in contrast, has already accumulated a national nest-egg of $800 billion. Other Canadian provinces are now setting up SWFs—and trying to learn from Alberta’s mistakes………………………………………..Full Article: Source

Zimbabwe gives official seal to sovereign fund

Posted on 23 January 2014 by VRS  |  Email |Print

Zimbabwe on Tuesday officially tabled its Sovereign Wealth Fund (SWF) which will use the proceeds of royalties from gold, platinum, nickel and diamonds and invest them in “gold bullion, stockpiles of precious stones”, as well as other “foreign assets”.
Zimbabwe’s Chamber of Mines said about 75% of the country’s gold miners will collapse if the royalties are not reviewed. Platinum producers in Zimbabwe have submitted plans to set-up a refinery to avoid a further 15% levy on raw platinum exports. Mining industry sources and executives said on Tuesday that they were still pressing the government to review the royalties downwards……………………………..Full Article: Source

Zimbabwe to invest sovereign fund in minerals

Posted on 23 January 2014 by VRS  |  Email |Print

A bill outlining the full development of Zimbabwe’s sovereign wealth fund was tabled in parliament on Tuesday. The fund will now be invested in gold bullion and stockpiles of precious stones.
Mining companies in the country will contribute to the fund through royalties on gold, diamonds, nickel, platinum, coal and coal methane gas. Analysts said the fund was a workable idea although they raised concern regarding the increased focus on mining to boost government revenue and economic projects……………………………..Full Article: Source

Tanzania seeks shares in uranium, nickel mines; Plans SWF

Posted on 23 January 2014 by VRS  |  Email |Print

Tanzania is holding talks with foreign companies planning uranium and nickel production in the country to ensure the government receives stakes under a 2010 law requiring it to take shares in strategic mines, its president Jakaya Kikwete said.
Kikwete also said the government plans to pass legislation this year to create a sovereign wealth fund to manage future revenues from gas production……………………………..Full Article: Source

Tanzania: Special gas fund in pipeline

Posted on 23 January 2014 by VRS  |  Email |Print

A sovereign wealth fund in which all revenue from natural gas will be deposited in a bid to safeguard the interests of future generations is in the pipeline.
A bill to establish the fund will be tabled in Parliament in October, President Jakaya Kikwete said while opening the two-day consultative meeting between religious leaders and the Ministry of Energy and Minerals in Dar es Salaam on Tuesday…………………………….Full Article: Source

Zimbabwe’s SWF: A quarter of not much

Posted on 22 January 2014 by VRS  |  Email |Print

Zimbabwe’s proposed sovereign wealth fund – gazetted in Harare last week – is unlikely to have a material impact on private investment. But, if well-managed, it could do wonders for the country’s bloated public sector. A draft parliamentary bill proposes that a maximum of 25 per cent of mining royalties should be paid into the fund to be managed by the Reserve Bank of Zimbabwe.
The SWF will “support fiscal or macroeconomic stabilization” and the achievement of the government’s long-term development objectives……………………………..Full Article: Source

Does the United States need a sovereign wealth fund?

Posted on 21 January 2014 by VRS  |  Email |Print

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

CIC, Ireland NPRF to establish USD100mln tech fund

Posted on 21 January 2014 by VRS  |  Email |Print

China Investment Corporation (CIC) and Ireland’s National Pensions Reserve Fund (NPRF) will set up a USD 100 million 50-50 technology fund.
The fund will invest in Ireland-funded companies with strategic interest in China and China-funded companies with strategic interest in Ireland. The fund will be co-operated by WestSummit Capital and Irish Atlantic Bridge………………………………………..Full Article: Source

CITIC Capital sets up multi-strategy hedge fund

Posted on 20 January 2014 by VRS  |  Email |Print

CITIC Capital Holdings Limited, which is backed by CITIC Group Corp and China sovereign wealth fund CIC said on Friday it has established a multi-strategy hedge fund, CCTrack Solutions. The fund will target institutional investors in North America, Europe and Asia, CITIC Capital said.
CITIC Capital has over $4.3 billion in capital under management. It is owned by China Investment Corporation, China’s sovereign wealth fund; CITIC Group, the largest Chinese conglomerate, through its CITIC International Financial Holdings Ltd and CITIC Pacific Ltd subsidiaries and Qatar Holding LLC……………………………………….Full Article: Source

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