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

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

Demand for oil fund as England gets fracking cash

Posted on 05 December 2014 by VRS  |  Email |Print

The Scottish Government last night renewed calls for a sovereign wealth fund to be set up for North Sea oil and gas, after Chancellor George Osborne unveiled a scheme for the north of England to benefit from fracking revenues.
Energy minister Fergus Ewing branded Mr Osborne’s decision “utter hypocrisy” after calls for a similar scheme for Scotland has been repeatedly rejected by Westminster governments. Stuart Patrick, chief executive of Glasgow Chambers of Commerce, also called for a similar fund to be launched for the Central Belt and future projects relating to the “unconventional” extraction of gas………………………………………..Full Article: Source

Autumn Statement: Chancellor to establish sovereign wealth fund for the North of England with shale gas cash

Posted on 04 December 2014 by VRS  |  Email |Print

Chancellor of the Exchequer George Osborne has used his Autumn Statement to confirm plans for a new sovereign wealth fund for the North of England. Speaking to a packed House of Commons the Chancellor said the new fund would use tax receipts from the exploitation of shale gas reserves in the North of England to invest in economic development projects in the region.
The new fund is the latest in a series of government announcements designed to create a Northern Powerhouse economy in the North of England. The measures are designed to re-balance the British economy away from its over-dependence on London and the South East………………………………………..Full Article: Source

Osborne plans ‘fracking fund’ for the North

Posted on 04 December 2014 by VRS  |  Email |Print

The government will create a sovereign wealth fund for the North of England so that shale gas revenues in the region can be used to invest in its own economic growth, George Osborne has announced. Setting out the proposal as part of Autumn Statement measures to create what he calls a Northern Powerhouse, the chancellor also confirmed a £250m investment to create an institute for advanced material science in Manchester.
The new Sir Henry Royce Institute would also have branches in Leeds, Liverpool and Sheffield. Osborne also confirmed the government would tender for new operators for the Northern Rail and the Trans-Pennine Express rail franchises in the region. These contracts would specify the replacement of the unpopular Pacer trains………………………………………..Full Article: Source

Fracking fund for North is ‘fantastic opportunity’, say business chiefs

Posted on 04 December 2014 by VRS  |  Email |Print

Government plans to use income from controversial fracking to boost the North of England economy are a “fantastic opportunity”, say business leaders. However, environmental campaigners claimed the Chancellor was taking the country in the wrong direction by showing its support for shale gas by creating a sovereign wealth fund.
George Osborne used Wednesday’s Autumn Statement to reveal plans to invest shale gas tax revenues in the fund when commercial production begins. Full details have not been confirmed, but it is understood revenues raised by gas in the North would be spent on boosting the North’s economy………………………………………..Full Article: Source

Faint praise for national shale gas fund as critics say it comes too late

Posted on 04 December 2014 by VRS  |  Email |Print

The announcement of a new Sovereign Wealth Fund for the North to invest money from shale gas has been hailed by experts as a great idea – though critics say it comes several decades too late and that it is by no means certain there will be a big shale bounty.
George Osborne said he wanted to make sure ‘that the shale gas resources of the North are used to invest in the future of the North’. Optimists believe the UK is sitting on substantial resources that could see a re-run of the North Sea boom, though opponents claim fracking risks blighting beautiful countryside, polluting the water and causing minor earthquakes………………………………………..Full Article: Source

Looking beyond Sovereign Wealth Fund

Posted on 24 November 2014 by VRS  |  Email |Print

A Sovereign Wealth Fund (SWF) is a special purpose investment fund that is owned by the government. In general, these funds hold financial assets such as stocks, bonds, property or precious metals.
Around the globe, SWFs have been created to achieve savings, development, reserve investments and stabilisation roles at national level. Savings and stabilisation funds have been more prevalent where the former is created to build up savings for future generations while the latter helps to reduce the volatility of government revenues…………………………………..Full Article: Source

A Sovereign Wealth Fund For The Eurozone?

Posted on 20 November 2014 by VRS  |  Email |Print

Social Europe Journal has just published its latest Research Essay “Public Capital in the 21st Century” by Giacomo Corneo. The main argument of the paper is that the state should become a kind of investment state in order to make sure that high returns on capital do not further increase inequality but benefit the wider public.
To achieve this, Corneo argues that governments should set up sovereign wealth funds to manage their investments and take advantage of low interest rates on sovereign bonds as investments should be debt-financed. Having read the paper I was wondering whether this would also be an option to create the much-touted fiscal capacity for the Eurozone. Such a mechanism wouldn’t need Eurozone taxes or tax harmonisation (although both would be desirable) and does not require an open-ended commitment to joint debt……………………………….Full Article: Source

Analysts dim on Zim’s new state fund

Posted on 18 November 2014 by VRS  |  Email |Print

The Zimbabwean Sovereign Wealth Fund (SWF) funded from mineral royalties will not work unless President Robert Mugabe’s Zanu PF-led government addresses poor confidence in the country’s economy, declining foreign direct investments as well as a woeful budget position, experts told Business Report on Friday.
The political uncertainty emanating from fights to take over from Mugabe have added to investor worries in the country. Lack of investments, coupled with a flat-lining economy characterised by a continued decline in productivity and rising imports has seen most companies and businesses battle to stay afloat………………………………..Full Article: Source

SNB head says no sovereign fund for gold if referendum passes: paper

Posted on 17 November 2014 by VRS  |  Email |Print

The chairman of the Swiss central bank ruled out creating a sovereign wealth fund to manage Switzerland’s gold reserves if a referendum on banning the bank from selling them passes, according to a newspaper interview published on Sunday.
The “Save our Swiss gold” proposal, spearheaded by the right-wing Swiss People’s Party (SVP), will be put to a plebiscite on Nov 30. It aims to ban the central bank from offloading the reserves and oblige it to hold at least 20 percent of its assets in gold………………………………….Full Article: Source

UK mulls shale gas fund to avoid ’squandering’ revenue

Posted on 14 November 2014 by VRS  |  Email |Print

The UK is considering setting up a wealth fund from the proceeds of the fracking industry. Communities would benefit, but many question whether fossil fuels like shale gas are the way forward.
In January this year, British Prime Minister David Cameron said the UK was “going all out for shale,” as the country’s oil and gas operations in the North Sea age, with Britain becoming a net importer of oil and gas again in the mid-2000s. The government has therefore set its sights on shale gas, which has seen a boom in the US. In Europe, it is controversial due to environmental concerns…………………………………..Full Article: Source

Zim mine royalties put into new fund

Posted on 14 November 2014 by VRS  |  Email |Print

Zimbabwe’ Treasury is to put a quarter of the country’s mining royalties into a new sovereign wealth fund, which will be managed by the central bank. Several oil-rich African countries such as Algeria and Nigeria have sovereign wealth funds. Zimbabwe is desperate to renew its infrastructure, which includes electricity-generating plants, roads, rail and water treatment facilities neglected for the last 20 years.
According to new laws signed by President Robert Mugabe this week, and seen by online financial publishers, The Source, every withdrawal from the fund must be approved by parliament and be accounted for, and proceeds from the fund may not be used as collateral for credit to government and public enterprises…………………………………..Full Article: Source

Zimbabwe: Sovereign Wealth Fund Act Takes Effect

Posted on 13 November 2014 by VRS  |  Email |Print

Legislation to establish the Sovereign Wealth Fund is now in place following the gazetting of the Sovereign Wealth Fund Act on Monday, a landmark development which seeks to establish a facility whose objective is to reserve income from the country’s finite mineral resources for the benefit of future generations.
The fund will be driven primarily by 25 percent of all royalties on mineral exports, which will be deposited, along with special dividends on the sales of diamonds, gas, granite and other minerals through the Zimbabwe Mining Development Corporation. The Reserve Bank of Zimbabwe will be the primary custodian of the fund………………………………………..Full Article: Source

Mugabe signs Sovereign Wealth Fund bill

Posted on 13 November 2014 by VRS  |  Email |Print

The Treasury will, with immediate effect, remit a quarter of mining royalties to the Sovereign Wealth Fund (SWF) after President Robert Mugabe on Monday signed into law a bill to set up the fund, which is meant to secure investments for future generations and support economic growth.
A sovereign wealth fund is a state-managed pool of money drawn from the country’s reserves, set aside for investment in strategic areas that benefit the economy and its citizens. Funding for sovereign wealth funds is typically accumulated from revenues generated from the export of a country’s natural resources, such as minerals………………………………………..Full Article: Source

Osborne poised to take up the ConHome manifesto proposal for a Sovereign Wealth Fund

Posted on 13 November 2014 by VRS  |  Email |Print

In the ConservativeHome manifesto, we proposed “the creation of a UK Sovereign Wealth Fund into which all new public windfall revenues – for instance, the tax revenues from offshore gas and oil extraction – would be paid”.
Bang on cue, the Daily Mail reports that the Government “is preparing to announce plans for a sovereign wealth fund to hold the revenues from fracking for the north of England”. The news comes via Matthew Hancock, who is to make a speech today announcing the creation of a new National College for Onshore Oil and Gas………………………………………..Full Article: Source

If the UK has to have a shale gas sovereign wealth fund, it needs to do better than this

Posted on 12 November 2014 by VRS  |  Email |Print

The government’s plans for a shale gas sovereign wealth fund lack the firm commitment to decarbonisation that is required. It is a case of better late than never, I suppose. Several decades after Norway channelled the country’s oil and gas wealth towards a sovereign wealth fund that transformed a relatively impoverished northern European nation into one of the world’s richest and most developed countries, the UK has indicated that it might have finally learnt the importance of finding a productive long term use for a lucky windfall.
Set against the context of the UK’s scandalous decision to burn through its North Sea oil and gas wealth twice over - once to release climate changing gases and a second time by diverting the proceeds into Thatcher’s election buying housing booms and tax cuts- this week’s announcement Ministers are planning a shale gas sovereign wealth fund is to be welcomed………………………………………..Full Article: Source

Zimbabwe’s Sovereign Wealth Fund put into gear

Posted on 12 November 2014 by VRS  |  Email |Print

Zimbabwe’s Treasury will with immediate effect remit a quarter of mining royalties to the Sovereign Wealth Fund (SWF) after President Robert Mugabe yesterday signed into law a bill to set up the fund, which is meant to secure investments for future generations and support economic growth.
A sovereign wealth fund is a state-managed pool of money drawn from the country’s reserves, set aside for investment in strategic areas that benefit the economy and its citizens. Funding for sovereign wealth funds is typically accumulated from revenues generated from the export of a country’s natural resources, such as minerals………………………………………..Full Article: Source

Timor-Leste Oil fund worth US$16.6 billion in September

Posted on 12 November 2014 by VRS  |  Email |Print

The value of the Timor-Leste (East Timor) Oil Fund increased by just US$177 million in the third quarter due to payments to the state budget, the Timor-Leste Central Bank said Monday in Dili. According to the statement issued in Dili, the value of the Oil Fund was US$16.6 billion at the end of September.
From July to September the Fund recorded US$522.35 million of gross inflows in contributions and royalties, and outputs amounted to US$345.35 million, including US$340 million in the form of transfers to the state budget. The Timor-Leste Oil Fund, which was created in August 2005, receives all the state’s revenues from oil exploration………………………………………..Full Article: Source

UK lawmakers to consider shale gas sovereign wealth fund

Posted on 11 November 2014 by VRS  |  Email |Print

Britain’s upper house of parliament will on Monday consider plans for a sovereign wealth fund to be set up with revenues raised from shale gas, a source of energy which the government hopes will offset the decline of output from the North Sea.
As part of discussions about legislation on infrastructure, the House of Lords will debate a government plan announced over the weekend to create a fund with money raised from shale gas — once production of this gas trapped in rocks beneath the ground starts towards the end of the decade………………………………………..Full Article: Source

Decc announces plans for sovereign wealth fund based on shale gas

Posted on 11 November 2014 by VRS  |  Email |Print

The UK Department of Energy and Climate Change (Decc) has announced plans to set up a state-owned investment fund with future revenues from the extraction of shale gas. Launched with the support of Her Majesty’s Treasury, the sovereign wealth fund will be put in place when commercial production begins in order to ensure profits from national gas last for generations and benefit the whole country.
Energy secretary Ed Davey explained: “The sovereign wealth fund is about storing the financial benefits of shale production and putting it towards a low-carbon energy future. This is part of a broader strategy to strengthen the UK’s security of supply in a cost-effective way for future generations.” Energy and business minister Matthew Hancock added: “It’s clear – domestic gas is good for business, energy security and the whole of the UK.”……………………………………….Full Article: Source

UK proposes shale gas sovereign wealth fund

Posted on 11 November 2014 by VRS  |  Email |Print

George Osborne says money from shale gas production could create fund for north of England. A plan for new shale gas tax revenues to be deployed in a UK sovereign wealth fund is to be debated in the House of Lords on Monday.
Energy and climate change secretary Ed Davey said over the weekend that the proposed fund would be set up once commercial production of shale gas begins. “It’s about storing the financial benefits of shale production and putting it towards a low-carbon energy future,” he added. “It’s part of this government’s broader strategy to strengthen our security of supply in a cost-effective way for future generations.”……………………………………….Full Article: Source

Britain to establish a sovereign wealth fund

Posted on 10 November 2014 by VRS  |  Email |Print

The British government said on Saturday that it would establish a sovereign wealth fund with the proceeds from extracting natural gas from shale. The announcement, which may be seen as premature because no shale gas production is likely to occur in the near future, is another step by the government of Prime Minister David Cameron to encourage development of a shale gas industry and overcome public opposition to hydraulic fracturing, or fracking.
Edward Davey, the energy minister, said in a statement that the sovereign wealth fund “was part of this government’s broader strategy to strengthen our security of supply in a cost-effective way for generations.” Oil-producing countries like Norway and Kuwait, as well as the emirate of Abu Dhabi, have built up large sovereign wealth funds intended to save and invest the proceeds from the extraction of fossil fuels for future generations………………………………………..Full Article: Source

Setting up a sovereign wealth fund would let future generations benefit from gas profits

Posted on 10 November 2014 by VRS  |  Email |Print

The natural assets of a country are, in part, infinite – the sunshine, rain, wind or wave power. But others are finite, for example the coal that powered Britain’s industrial revolution and for a time made this country the workshop of the world. Another lucky beneficiary of oil and gas is Norway. But after a fierce debate, that country took an alternative approach and created a sovereign wealth fund to invest the proceeds from its resource.
In about 20 years, the Norwegian sovereign wealth fund has reached more than $800 billion (£500 billion) and gives the people of Norway an annual income of £20 billion to £25 billion. The fund now owns 1.3 per cent of the entire world’s listed companies. Because of the limits placed on annual distributions from the fund, there is every chance that it will operate for a long time into the future………………………………………..Full Article: Source

Shale gas: George Osborne proposes north of England fund

Posted on 10 November 2014 by VRS  |  Email |Print

Shale gas extraction revenues could be held in a “sovereign wealth fund” for the north of England, the chancellor has said. George Osborne told BBC Radio 4’s Today programme the fund would be a way of “making sure money is not squandered on day-to-day spending”.
Friends of the Earth’s Helen Rimmer said it was “a desperate attempt to win over communities”. The idea will be discussed in the House of Lords on Monday. Possible sites for the extraction of shale gas have been identified across the north of England, with test drilling licences granted in Lancashire, Cheshire, Merseyside and Greater Manchester………………………………………..Full Article: Source

Australia missed a chance to set up wealth funds, says Asciano chairman

Posted on 10 November 2014 by VRS  |  Email |Print

ASCIANO chairman and BHP Billiton director Malcolm Broomhead says Australia to some extent wasted the decade-long commodities boom by failing to establish a sovereign-wealth fund and follow the likes of Norway. But the resources industry veteran says a fund is still needed to tackle looming demographic changes and that industry cost structures need to change to be able to establish one.
Mr Broomhead, speaking after a recent Australian Futures Project panel session at La Trobe University in Melbourne, said Australia had been through a “decade of decadence”. “We’ve ended up with the highest cost structure, albeit with the highest standard of living in the world, making it twice as expensive to stevedore a ship here as it is in New Zealand,” he told The Australian………………………………………..Full Article: Source

Super Fund defends investment policy

Posted on 04 November 2014 by VRS  |  Email |Print

The New Zealand Superannuation Fund is defending its investment decisions, saying it is putting more money than ever into domestic investments. A Singapore government fund has struck a multi-million dollar deal for a stake in buildings on Auckland’s waterfront, prompting the Property Council to suggest the Superannuation Fund’s focus is offshore and IT should invest more in domestic commercial property.
But the Fund says the amount it has invested in New Zealand grew from $2.4 billion in 2009 to $3.8 billion in September. It says it has a highly disciplined approach to selecting the best investment opportunities for its purpose, which is to maximise long-term returns without undue risk………………………………………..Full Article: Source

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