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Emerging Economies to Counter Big Chill in Returns, Norfund Says

Posted on 28 September 2016 by VRS  |  Email |Print

Institutional investors should look to emerging markets to avoid a toxic combination of falling financial returns and higher political risk in the developed stock and bond markets. The Norwegian sovereign wealth fund, the world’s biggest, is seeking to expand its investment universe into unlisted infrastructure investments to take advantage of its size.
While pension and sovereign wealth funds are struggling with weak returns in OECD markets, opportunities can be found in infrastructure, private equity and unlisted assets in developing economies, according to a report by Re-Define, commissioned by the Norwegian Investment Fund for Developing Countries, or Norfund……………………………………Full Article: Source

Qatar-Indonesia joint investment fund in ‘final stages’

Posted on 27 September 2016 by VRS  |  Email |Print

The $1bn joint investment fund (JIF) by Qatar and Indonesia is nearing its final stages, and is expected to fund major infrastructure and energy projects, an official has said. Special envoy to the Indonesian president for Middle East Affairs Dr Alwi Abdurrahman Shihab said Indonesia’s share of the JIF (15%) “is ready.” He also said the government is just waiting for the Qatar Investment Authority (QIA) to select from several projects Indonesia has prepared to start the JIF.
“This joint investment fund should be, as soon as we can, made into a reality because the Indonesians have already provided four to five projects to be picked by the Qatar Investment Authority (QIA) in order for us to show the Indonesian people that the investment is there,” Shihab said …………………………………….Full Article: Source

National Investment and Infrastructure Fund

Posted on 26 September 2016 by VRS  |  Email |Print

Nineteen months after the announcement was made in FY16 Budget, the National Investment and Infrastructure Fund (NIIF) will commence operations next month with a $1-billion corpus for the highway sector and another fund of the same size for the renewable energy industry, according to official sources.
In line with the NIIF’s investment structure, the Centre would infuse nearly 49% of the corpus, or a total of $1 billion in the two sectoral funds, while the balance amount will come from long-term investors such as sovereign wealth funds. The potential investors in these funds include Abu Dhabi Investment Authority (ADIA), Qatar Investment Authority (QIA) and RUSNANO of Russia, the sources added…………………………………….Full Article: Source

Now Indonesia has a sovereign wealth fund – and it won’t be the last

Posted on 15 September 2016 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) are large state owned investment funds. With assets under management of about US $7trillion globally, SWFs have become key players in international finance – even surpassing the combined size of global hedge funds and private equity firms.
In the vast majority of cases SWFs were funded by the proceeds of oil and gas exports, and resource rich countries have particularly tended to create SWFs in periods when oil prices are high………………………………………..Full Article: Source

Is East Africa Ready for a Sovereign Wealth Fund for its natural resources?

Posted on 13 September 2016 by VRS  |  Email |Print

Kenya, Uganda and Tanzania are among the new frontier economies in the oil and gas industry that have over the last decade announced significant hydrocarbon discoveries. These East Africa Countries (EAC) countries have introduced laws to manage oil and gas resources for the benefit of all stakeholders.
Kenya, for instance, introduced a petroleum act earlier this year; the Act stipulates that 75% of the proceeds from commercial oil and gas produced be retained by the national government, with county governments hosting the deposits receiving 20% and local community receiving 5%………………………………………..Full Article: Source

Russia, Turkey to form joint investment fund - Russian minister

Posted on 05 September 2016 by VRS  |  Email |Print

Russian Economy Minister Alexei Ulyukaev said on Sunday President Vladimir Putin and his Turkish counterpart Tayyip Erdogan had agreed to form a joint investment fund between their two countries. The two leaders met on the sidelines of the G20 summit in the eastern Chinese city of Hangzhou on Saturday.
“We are concluding work on the formation of a Russian-Turkish investment fund,” Ulyukaev said. “At the end of August, Turkey made the necessary legislative changes to create a corresponding partner to our direct investment fund - the Turkish sovereign wealth fund.” Turkey announced plans for a sovereign wealth fund last month, intended to boost annual growth over the next decade and reassure investors unnerved by a failed coup attempt in July………………………………………..Full Article: Source

Is East Africa Ready for a Sovereign Wealth Fund?

Posted on 31 August 2016 by VRS  |  Email |Print

Kenya, Uganda and Tanzania are among the new frontier economies in the oil and gas industry that have over the last decade announced significant hydrocarbon discoveries.
These East Africa Countries (EAC) countries have introduced laws to manage oil and gas resources for the benefit of all stakeholders. Kenya, for instance, introduced a petroleum act earlier this year; the Act stipulates that 75% of the proceeds from commercial oil and gas produced be retained by the national government, with county governments hosting the deposits receiving 20% and local community receiving 5%………………………………………Full Article: Source

Turkey publishes law to set up sovereign wealth fund

Posted on 29 August 2016 by VRS  |  Email |Print

A law to establish a Turkish sovereign wealth fund intended to boost annual growth over the next decade was published in the country’s Official Gazette on Friday. After the defeated July 15 coup attempt, the Turkish government in August introduced a bill to parliament to setting up a wealth fund to keep growth on track and reassure investors unnerved by the upheaval.
Financing for the fund, which aims to lead annual growth of 1.5 percent over next decade, will be provided by government asset sales, cash surpluses from the state privatization fund and other state institutions, the draft law reads………………………………………..Full Article: Source

Turkey seeks to manage $200 bln in sovereign fund soon: Minister

Posted on 29 August 2016 by VRS  |  Email |Print

Turkey’s target for its newly announced sovereign wealth fund is for it to manage $200 billion as soon as possible, Economy Minister Nihat Zeybekci said on Aug. 26, as a public company has been established to run the process.
“Our aim is to make this fund one which can control a $200-billion asset pool,” he said in an interview with broadcaster NTV, as quoted by Reuters. Turkish lawmakers put forward legislation to create a sovereign wealth fund, which was intended to help boost annual growth over the next decade………………………………………..Full Article: Source

Company to manage Sovereign Wealth Fund established

Posted on 29 August 2016 by VRS  |  Email |Print

A mnagement company for the Sovereign Wealth Fund (SWF), which will be in charge of founding and managing the SWF and its relevant subsidiary funds, has been established. The legislation to establish the SWF Management Inc., as well as amendments to various laws, has taken effect after being published in the official gazette.
The management company is in charge of contributing to instrumental diversity and depth in capital markets, the main activity areas of which are to found and manage funds under the Prime Ministry, draw domestic public assets into the economy, procure external sources and join strategic and large-scale investments. The sphere of activity of the SWF management company is to establish and manage the SWF and subsidiary funds………………………………………..Full Article: Source

Turkey: Sovereign Wealth Fund to be fully transparent

Posted on 23 August 2016 by VRS  |  Email |Print

Finance Minister Naci Ağbal said that the Turkish Sovereign Wealth Fund (SWF) was prepared in accordance with the best international practices and it will not be drawn from the current budget.
Pointing out that the most important issues related to the SWF are the establishment, operations and audit, Ağbal said the SWF will be fully transparent and subject to all the institutional management regulations under the Capital Market Law as well as all the rules related to the independent audit put forward by the Capital Markets Board (SPK), along with the regulations governing the Public Disclosure Platform (KAK)………………………………………..Full Article: Source

Why Nigerian state governments must establish sovereign wealth funds

Posted on 22 August 2016 by VRS  |  Email |Print

Successive Nigerian governments failed to save or invest a part of their earnings. No individual or government that spends all their income during times of plenty should expect everything to be well in times of famine.
Globally, countries as well as sub-national entities that generate revenues from commodity exports have established frameworks to put aside a portion of their earnings for the future and the vehicle mostly used for such savings is the sovereign wealth fund (SWF). In some jurisdictions, SWFs also receive part of the reserves held by central banks………………………………………..Full Article: Source

Turkey to set up €15mn sovereign wealth fund to support struggling economy

Posted on 19 August 2016 by VRS  |  Email |Print

Turkey will set up a sovereign wealth fund with an initial capital of TRY50mn (€15mn), Economy Minister Namik Zeybekci said on August 17. Ankara will target to raise the fund’s size to $200bn at a later stage, Bloomberg reports.
The ruling Justice and Development Party (AKP) has already submitted a bill to parliament to create the sovereign wealth fund that it says will be used to finance infrastructure projects. Its strategic aim is to generate annual growth of 1.5% over the next 10 years. The creation of the fund would not threaten the country’s low budget deficit, Prime Minister Binali Yildirim has said………………………………………..Full Article: Source

Turkey’s Sovereign Wealth Fund bill approved by Parliament

Posted on 18 August 2016 by VRS  |  Email |Print

Legislation to establish a management company for a Sovereign Wealth Fund (SWF), as well as amendments to various laws, was approved by the Parliamentary Planning and Budget Commission late on Tuesday.
The legislative proposal calls for the fund to be established to contribute to instrumental diversity and depth in capital markets, the main activity areas of which are to find and manage funds under the Prime Ministry, draw domestic public assets into the economy, procure external sources and join strategic and large-scale investments. An SWF management company will be established to establish and manage the SWF and subsidiary funds………………………………………..Full Article: Source

How and why is Turkey launching an SWF?

Posted on 17 August 2016 by VRS  |  Email |Print

There are a great number of examples to tell how the July 15 coup attempt will lead to a major transformation in Turkey. I think, however, one of the most important examples is the Sovereign Wealth Fund (SWF), which would not have been launched had Turkey not experienced the July 15 process.
This is because the Turkish state has realized that Turkey would have had no economic and political safety were it not for the public courage on July 15. As a result, it has begun revising the hackneyed and accustomed teachings and practices that currently exist. It is being asked as to why Turkey has not taken the steps that developed countries took many years ago………………………………………..Full Article: Source

Turkey: Government making headway with Sovereign Wealth Fund

Posted on 16 August 2016 by VRS  |  Email |Print

The Government is making headway in bringing the country`s first Sovereign Wealth fund into fruition. Cabinet on August 3, advised the Attorney General’s Chambers to commence the drafting of the Sovereign Wealth Fund Bill which will bring the fund into effect.
The Sovereign Wealth Fund is aimed at creating a mechanism for future budgetary surpluses that will ensure the future economic prosperity of the Turks and Caicos Islands. The Government earlier this year announced that model legislation will be laid in the House of Assembly for scrutiny and debate in the third quarter of the financial year………………………………………..Full Article: Source

Cabinet cannot be above the nation and the law

Posted on 15 August 2016 by VRS  |  Email |Print

A draft law for amendments in certain governmental decrees consisting of 75 articles on the establishment of a Turkey Sovereign Wealth Fund was submitted to the Parliamentary Speaker’s Office on Aug. 1. Apart from the Sovereign Wealth Fund, there is an article in the draft, unheard of and unknown, that came to attention when the text was made available.
In accordance with the articles of the wealth fund, major infrastructure projects such as the nuclear power plant and the “Kanal Istanbul” project to be financed by the unemployment fund and privatizations……………………………………….Full Article: Source

Turkey Creates First Sovereign Fund for Strategic Projects

Posted on 12 August 2016 by VRS  |  Email |Print

Turkish government commenced preparations to create the first sovereign fund in Turkey to support strategic and long term developmental projects. The fund will be directly oriented by the prime minister’s office. The cabinet submitted a draft law to the parliament, last week.
The draft law suggests creating a joint stock company that manages a sovereign fund, abides by relevant professional regulations and is affliated to the cabinet presidency. It also proposes establishing other sovereign funds as per the country’s need. According to a report published by Sovereign Wealth Fund Institute, there are four sovereign funds in the Persian Gulf that are classified out of the ten greatest sovereign funds around the world………………………………………..Full Article: Source

Turkish Sovereign Wealth Fund expected to be among world top 20

Posted on 10 August 2016 by VRS  |  Email |Print

While the establishment of the Turkish Sovereign Wealth Fund is still in progress, it is expected to be listed in the top 20 in the giants’ league, as it gets TL 200 billion ($67.124 billion) in capital, as announced by Economy Minister Nihat Zeybekci.
Slated to generate long-term and low-cost finance for strategic, large-scale investments that can contribute to the country’s development, the Turkish Sovereign Wealth Fund has come to the top of the country’s agenda. The government has goals to boost Turkey’s economic growth by an additional 1.5 percent in the next 10 years with the new fund………………………………………..Full Article: Source

Britons will decide how to spend $1.3 bln shale gas fund

Posted on 10 August 2016 by VRS  |  Email |Print

Britons living near “fracking” developments will be able to decide how a 1 billion pound shale gas wealth fund should be spent, either by accepting direct personal payments or supporting projects such as railways or flood defences, the government said on Monday.
Prime Minister Theresa May announced on Sunday that some tax proceeds from new shale gas developments could go directly into local residents’ pockets, showing her support for the nascent industry that she hopes can ease Britain’s growing reliance on imported gas………………………………………..Full Article: Source

Sovereign Wealth Fund law to be submitted to Parliament as new driving force for mega projects

Posted on 09 August 2016 by VRS  |  Email |Print

Finance Minister Naci Ağbal said the draft law on the establishment of the Turkish Sovereign Wealth Fund will be submitted to Parliament’s Planning and Budget Commission today. “While the fund helps to decrease fluctuations in the market, it will also serve as the driving force behind Turkey’s mega projects,” Ağbal said.
The draft law was announced for the first time last week. The establishment of the Turkish Sovereign Wealth Fund and various amendments to a number of laws will address Turkey’s need for a welfare fund, as it is the only G20 member that lacks one. The government also has goals to boost Turkey’s economic growth by an additional 1.5 percent in the next 10 years with the new fund………………………………………..Full Article: Source

Turkey’s sovereign wealth fund to support economy

Posted on 04 August 2016 by VRS  |  Email |Print

Turkish Prime Minister Binali Yildirim sent a bill on creating a sovereign wealth fund to parliament after his cabinet’s approval, according to a copy of the draft obtained by Bloomberg on Aug. 2. This was done to stabilize markets and fund infrastructure projects in the wake of a coup attempt.
The proposal allows the government to establish a wealth management company called Turkiye Varlik Yonetimi AS with a capital injection of 50 million liras ($17 million), to be financed from the state Privatization Fund. That company would create another entity, Turkiye Varlik Fonu, or Turkey Wealth Fund TVF, and other funds as it sees necessary, according to the draft………………………………………..Full Article: Source

Turkey Unveils Draft Details of Planned Sovereign Wealth Fund

Posted on 03 August 2016 by VRS  |  Email |Print

Turkey’s government took the first steps toward creating a sovereign wealth fund that officials say can be used to stabilize markets and fund infrastructure projects in the wake of a failed coup attempt. Prime Minister Binali Yildirim sent a bill on the fund to parliament after his cabinet’s approval, according to a copy of the draft obtained by Bloomberg on Tuesday.
The proposal allows the government to establish a wealth management company called Turkiye Varlik Yonetimi AS with a capital injection of 50 million liras ($17 million), to be financed from the state Privatization Fund. That company would create another entity, Turkiye Varlik Fonu, or Turkey Wealth Fund TVF, and other funds as it sees necessary, according to the draft………………………………………..Full Article: Source

In wake of coup attempt, Turkey eyes sovereign wealth fund

Posted on 03 August 2016 by VRS  |  Email |Print

Turkish lawmakers on Tuesday put forward legislation to create a sovereign wealth fund intended to boost annual growth over the next decade, an ambitious target for a fund with $16 million in start-up capital and a country with little energy revenue.
Its backers hope it will serve to reassure investors unnerved by a failed coup attempt and a subsequent crackdown on the military, police and civil service which has heightened concerns about President Tayyip Erogan’s tightening grip on power. The July 15-16 failed putsch caused economic damage amounting to about 300 billion lira ($100 billion), according to Customs and Trade Minister Bulent Tufenkci quoted by Hurriyet newspaper on Tuesday………………………………………..Full Article: Source

Draft to launch Turkish sovereign wealth fund sent to parliament

Posted on 03 August 2016 by VRS  |  Email |Print

A draft law for the establishment of the Sovereign Wealth Fund of Turkey was sent to parliament in a bid to create an additional 1.5 percent contribution to annual growth in the next decade, as Reuters has reported on Aug. 2.
The draft included various new regulations in the fields of taxation, public energy projects and investments. Turkey has been the only country without such a fund among all G-20 countries. In the initial stage, a specific percentage of public funds and revenue will be allocated to create the main basis of the newly planned wealth management fund………………………………………..Full Article: Source

Saudi plans $1.1 bln fund for smaller companies

Posted on 02 August 2016 by VRS  |  Email |Print

Saudi Arabia will establish a $1.1 billion fund to develop its venture capital industry and support the creation of small and medium-sized companies, the cabinet said on Monday, as the kingdom tries to strengthen its economy in an era of cheap oil. The cabinet approved a plan for the Public Investment Fund, Saudi Arabia’s top sovereign wealth fund, and the Ministry of Commerce and Investment to establish the new fund, according to a statement carried by state news agency SPA.
The fund will invest in venture capital operations and private assets on a commercial basis in order to encourage investment in smaller firms, which Riyadh hopes will create jobs as low oil prices force cuts in state spending………………………………………..Full Article: Source

Ireland can conjure a pot of sovereign wealth gold

Posted on 19 July 2016 by VRS  |  Email |Print

By taking shares in multinationals, Ireland could create a sovereign wealth fund linked to the performance of the best-governed companies in the world, which would provide for future generations. In 2012, US multinationals made $100bn profit in Ireland, on which they are supposed to pay 12.5 per cent tax, or $12.5bn. In fact, they paid $4bn.
Why not encourage multinationals to pay the difference between what they pay and what they ought to pay in shares? Shares are permanent wealth, whereas taxes are transitory income………………………………………..Full Article: Source

UK Government must create a sovereign wealth fund to save North Sea industry

Posted on 18 July 2016 by VRS  |  Email |Print

Oil tycoon Algy Cluff is calling on the Government to create a sovereign wealth fund to save the North Sea industry and invest in a gas supply for the country after Brexit. Cluff, who founded and runs Cluff Natural Resources, wants the Government to take charge and invest in the face of the weakened oil price.
He wants the Government-launched Oil and Gas Authority to be able to take equity stakes in companies that want to explore to fund them like an investment or sovereign wealth fund. Norway’s government created an investment fund to re-invest the money it raised from the North Sea oil boom………………………………………..Full Article: Source

Saudi Arabia contemplates largest sovereign wealth fund

Posted on 06 July 2016 by VRS  |  Email |Print

While Saudi Arabia continues its dominance over world oil pricing, the nation’s 30-year old Crown Prince Mohammed Bin Salman, is planning to form and sell shares of its state owned oil company, thereby creating the world’s largest sovereign wealth fund ever.
In order to make this happen, the Crown Prince must lift the shroud of mystery enveloping his nation’s five huge oil fields, estimated by the Saudis to hold 260 billion barrels of oil. However the validity of these estimates has not been verified for decades, since the buyout of ARAMCO, now totally owned by the kingdom. The Saudis have not permitted external valuation since the 1960’s………………………………………..Full Article: Source

Louisiana eyes creating sovereign wealth fund from oil and gas revenues

Posted on 04 July 2016 by VRS  |  Email |Print

Louisiana could create a sovereign wealth fund to help with budgeting and construction and infrastructure funding under a bill signed by Gov. John Bel Edwards earlier this month. The bill was signed by Mr. Edwards on June 17, roughly two weeks after it passed the state Legislature. It still needs voter approval on the ballot this fall to become a reality.
The Revenue Stabilization Trust Fund would be funded by excess oil and gas revenues, and corporate franchise and income tax revenues. The fund could help cover capital outlay projects or transportation infrastructure when its balance exceeds $5 billion, according to the bill text. Annual interest earnings could go toward general fund expenditures………………………………………..Full Article: Source

Sujoy Bose appointed CEO of Indian sovereign wealth fund NIIF

Posted on 28 June 2016 by VRS  |  Email |Print

Sujoy Bose was on Monday appointed CEO of India’s maiden Rs 40,000 crore sovereign wealth fund NIIF. At present he is the Director and Global Co-Head of Infrastructure and Natural Resources at Washington-based International Finance Corporation. IFC is the private sector lending arm of the World Bank.
An official statement on Monday said Bose “has been appointed as the Chief Executive Officer (CEO) of National Investment and Infrastructure Fund (NIIF) Ltd”, adding that he has “extensive international experience in the infrastructure sector including experience in raising funds from international investors”………………………………………..Full Article: Source

Failure to create sovereign wealth fund ‘real missed opportunity’: NDP

Posted on 22 June 2016 by VRS  |  Email |Print

The Saskatchewan government’s failure to act on a three-year-old report recommending the establishment of a sovereign wealth fund is a “real missed opportunity,” according to the interim leader of the Opposition NDP.
“It’s frankly unacceptable that we’ve come through a decade-long period of record revenues without having any long-term savings,” said Trent Wotherspoon, who was appointed interim leader of the Saskatchewan NDP in April………………………………………..Full Article: Source

LIC willing to be partner in India’s maiden sovereign wealth fund

Posted on 16 June 2016 by VRS  |  Email |Print

India’s largest insurer LIC on Wednesday said it is willing to participate in India’s maiden sovereign wealth fund National Investment and Infrastructure Fund (NIIF) as the state-owned company’s own core focus is also on infrastructure investment. “LIC has enough funds to invest in NIIF. LIC’s core focus is infrastructure investment. There is no problem in investment quantum,” LIC Chairman S K Roy said.
The government has set up the Rs.40,000 crore NIIF to facilitate funding in infrastructure projects. NIIF has already signed an MoU with Russia’s Rusnano, the Abu Dhabi Infrastructure Authority (ADIA) and the Qatar sovereign wealth fund, Quatar Investment Authority (QIA) to study investment opportunities in the Indian infrastructure sector………………………………………..Full Article: Source

Indian Finance Minister Arun Jaitley Reviews Sovereign Wealth Fund Status

Posted on 10 June 2016 by VRS  |  Email |Print

A panel headed by Finance Minister Arun Jaitley on Wednesday took stock of the progress made on operationalizing National Investment and Infrastructure Fund (NIIF), India’s maiden sovereign wealth fund, including selection of its CEO and projects shortlisted for making initial investments.
The second Governing Council meeting of the Rs 40,000 crore National Investment and Infrastructure Fund (NIIF) also discussed the follow-up action being taken on the memorandums of understanding (MoUs) signed with Rusnano of Russia, ADIA of Abu Dhabi and the Qatar Investment Authority………………………………………..Full Article: Source

Indian FM Arun Jaitley reviews sovereign wealth fund’s status

Posted on 09 June 2016 by VRS  |  Email |Print

A panel headed by Finance Minister Arun Jaitley on Wednesday took stock of the progress made on operationalising India’s maiden sovereign wealth fund National Investment and Infrastructure Fund (NIIF), including the selection of its CEO and projects shortlisted for making initial investments.
The second Governing Council meeting of the Rs 40,000 crore NIIF also discussed the follow-up action being taken on the MoUs signed with Rusnano of Russia, Abu Dhabi Investment Authority (ADIA) of Abu Dhabi and Qatar Investment Authority. “The Governing Council was apprised of the interactions that have been held with a large number of long term investors, Sovereign Wealth Funds, Pension Funds from across the globe, seeking to invest in the NIIF,” a finance ministry statement said………………………………………..Full Article: Source

Failure to create sovereign wealth fund ‘real missed opportunity’: NDP

Posted on 08 June 2016 by VRS  |  Email |Print

The Saskatchewan government’s failure to act on a three-year-old report recommending the establishment of a sovereign wealth fund is a “real missed opportunity,” according to the interim leader of the Opposition NDP.
“It’s frankly unacceptable that we’ve come through a decade-long period of record revenues without having any long-term savings,” said Trent Wotherspoon, who was appointed interim leader of the Saskatchewan NDP in April. In 2013, Premier Brad Wall commissioned former University of Saskatchewan president Peter MacKinnon to investigate sovereign wealth funds — large investment vehicles funded by profits from natural resource extraction………………………………………..Full Article: Source

Jaitley meets investors, pitches for infra funding

Posted on 02 June 2016 by VRS  |  Email |Print

Pitching for investment in India’s first sovereign wealth fund NIIF, Finance Minister Arun Jaitley today met global investors and promised them an “advantageous” tax regime in the country. The Rs 40,000-crore National Investment and Infrastructure Fund (NIIF) was set up in December and is an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects.
During his meeting with global investors, the Minister highlighted the second-generation reform measures undertaken by the government by way of opening up various sectors to FDI as well as making India an investor friendly environment………………………………………..Full Article: Source

Oil Fund celebrates its first 20 years

Posted on 01 June 2016 by VRS  |  Email |Print

Øystein Olsen has a lot to celebrate this week. He beat out all competition to keep his job as Norway’s central bank chief for another six years, and then could celebrate the 20th anniversary on Tuesday of arguably the bank’s most important operation that’s made Norway a financial powerhouse worldwide.
It was on May 31, 1996 that Norway’s Finance Ministry made its first deposit of money from oil revenues into the country’s newest state pension fund that immediately became known as the Oil Fund. The idea was to invest oil revenues in international stock markets and thereby stash away the vast majority of the country’s oil wealth for the benefit of future generations………………………………………..Full Article: Source

Saudi Wealth Fund Plans Would Make It the World’s Largest: Chart

Posted on 27 May 2016 by VRS  |  Email |Print

Saudi Arabia is planning to create the world’s largest sovereign wealth fund by adding ownership of oil giant Saudi Aramco and other key assets to the Public Investment Fund. With a potential value of more than $2 trillion — mostly based on what Aramco is worth — the fund would be more than double the size of the Norwegian fund, the world’s largest.
Saudi Arabia is seeking to hire international bankers to help manage the fund and boost its investments overseas as part of a plan to reduce the kingdom’s reliance on oil………………………………………..Full Article: Source

Key questions raised by the $2 trillion Saudi wealth fund plan

Posted on 27 May 2016 by VRS  |  Email |Print

Saudi Arabia is planning to expand its sovereign wealth fund into the world’s largest. The Public Investment Fund could eventually control more than $2 trillion, according to Deputy Crown Prince Mohammed bin Salman, making it big enough to buy the world’s four largest publicly traded companies.
The fund is at the center of efforts to diversify revenue from oil under an economic transformation plan known as Vision 2030. The 84-page Vision blueprint includes plans to restructure the country’s finances, administration and reshape oil giant Saudi Aramco into an industrial and energy conglomerate………………………………………..Full Article: Source

Key Questions Raised by the $2 Trillion Saudi Wealth Fund Plan

Posted on 26 May 2016 by VRS  |  Email |Print

Saudi Arabia is planning to expand its sovereign wealth fund into the world’s largest. The Public Investment Fund could eventually control more than $2 trillion, according to Deputy Crown Prince Mohammed bin Salman, making it big enough to buy the world’s four largest publicly traded companies.
The fund is at the center of the kingdom’s efforts to diversify revenue from oil under an economic transformation plan known as Vision 2030. The 84-page Vision blueprint includes plans to restructure the country’s finances, administration and reshape oil giant Saudi Aramco into an industrial and energy conglomerate………………………………………..Full Article: Source

Domestic focus may limit clout of $2 trillion Saudi fund

Posted on 19 May 2016 by VRS  |  Email |Print

Saudi Arabia aims to create the world’s biggest sovereign wealth fund, a $2 trillion behemoth that can throw its weight around global markets, but the fund’s growth abroad is likely to be slowed by its responsibility for aiding the economy at home. Building the Public Investment Fund (PIF) into “the largest fund in the world by far” is a cornerstone of radical economic reforms announced by Deputy Crown Prince Mohammed bin Salman last month to cut the kingdom’s reliance on oil.
The PIF, founded in 1971 to finance development projects in Saudi Arabia and until now little known abroad, is to grow from 600 billion riyals ($160 billion) to over 7 trillion riyals, helping make Riyadh a global “investment power”, he said. The biggest sovereign fund so far is Norway’s, worth $852 billion………………………………………..Full Article: Source

Sujoy Bose may head India’s quasi-sovereign wealth fund NIIF

Posted on 18 May 2016 by VRS  |  Email |Print

Sujoy Bose, the global co-head for infrastructure and natural resources at International Finance Corporation, is likely to be appointed as the first CEO of India’s pioneering quasi-sovereign wealth fund, (SWF) the National Infrastructure and Investment Fund (NIIF), official sources told FE.
The other contender for the post has been Luis Miranda, an adviser at Morgan Stanley Investment Management and a former CEO of IDFC Private Equity. The sources said Bose’s name has been recommended by the finance ministry to head NIIF as he will be able to hit the ground running given his current assignment at IFC, the private lending arm of the World Bank. His appointment order is expected shortly………………………………………..Full Article: Source

Domestic Focus May Limit Clout of $2 Trillion Saudi Fund

Posted on 18 May 2016 by VRS  |  Email |Print

Saudi Arabia aims to create the world’s biggest sovereign wealth fund, a $2 trillion behemoth that can throw its weight around global markets, but the fund’s growth abroad is likely to be slowed by its responsibility for aiding the economy at home.
Building the Public Investment Fund (PIF) into “the largest fund in the world by far” is a cornerstone of radical economic reforms announced by Deputy Crown Prince Mohammed bin Salman last month to cut the kingdom’s reliance on oil. The PIF, founded in 1971 to finance development projects in Saudi Arabia and until now little known abroad, is to grow from 600 billion riyals ($160 billion) to over 7 trillion riyals, helping make Riyadh a global “investment power”, he said………………………………………..Full Article: Source

Saudi Arabia’s Vision 2030 is remarkable, but it will still need oil in four years

Posted on 09 May 2016 by VRS  |  Email |Print

Prince Mohammed bin Salman’s TV interview to launch Saudi Arabia’s Vision 2030 was an unprecedented event, where headline writers rushed to describe the details as a transformational plan to wean the country off oil. Most remarkable of the things said in that interview on April 25 was the deputy crown prince’s promise to end oil dependence by 2020 – in four short years.
How would this be achieved? Well, about US$100 billion of new taxes will be introduced by then, austerity would be into its fourth year, while Saudi Aramco’s transfer to the Public Investment Fund (PIF) would “make investments the source of Saudi government revenue, not oil”………………………………………..Full Article: Source

India: Government looking to create a fund for steel firms under NIIF

Posted on 09 May 2016 by VRS  |  Email |Print

Government is looking at creating a fund under India’s first sovereign wealth fund, NIIF, which will address capital requirements of domestic steel companies. The government in December created the Rs 40,000-crore National Investment and Infrastructure Fund (NIIF) as an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects.
“Government is also working on operationalising National Infrastructure Fund, the sovereign fund, and that is envisaged as a mother fund and within that there will be specific sectoral funds. “We are trying to see how we can structure something for the steel industry there, which I think will definitely go a long way in bringing down the capital costs,” Steel Secretary Aruna Sundararajan said………………………………………..Full Article: Source

SNB Chair Jordan: Swiss National Bank Rejects Sovereign Wealth Fund

Posted on 02 May 2016 by VRS  |  Email |Print

Swiss National Bank (SNB) Chairman Jordan maintained familiar rhetoric surrounding interest rates and the franc at the bank’s shareholder meeting on Friday. He continued to insist that the bank had not exhausted its policy options and would not hesitate to take unconventional steps in the face of a franc, which is still significantly overvalued.
Any action to cut rates further or intervene would be taken on the basis of costs and benefits over the short and longer term. The huge expansion of the SNB balance sheet remains an important issue for the bank, monetary policy and shareholders. Jordan rejected calls for Switzerland to set up a sovereign wealth fund to mange the foreign exchange reserves, which have increased, to CHF576bn………………………………………..Full Article: Source

How much would 5% of Saudi Aramco be worth?

Posted on 29 April 2016 by VRS  |  Email |Print

In 2005, McKinsey said Aramco was worth about $0.781 trillion. The Sovereign Wealth Fund Institute recently pegged its value at around $2.1 trillion. The Saudi deputy crown prince Mohammad bin Salman put the number at $2.5 trillion.
Mohammed al-Sabban, a Saudi former petroleum advisor, reckons even more - at least $10 trillion. But what is Saudi Aramco, the kingdom’s state-owned oil jewel, really worth? Salman talks of plans for a $2 trillion sovereign wealth fund, resting heavily on the transfer of ownership of the kingdom’s national oil company………………………………………..Full Article: Source

Saudi Arabia plans $2tn sovereign wealth fund in move away from oil

Posted on 27 April 2016 by VRS  |  Email |Print

Saudi Arabia said it would create the world’s largest wealth fund and sell shares in state energy giant Aramco as it unveiled a vast plan to transform its oil-dependent economy. Prince Mohammed said part of the plan is ”to sell less than five per cent of Aramco” in an initial public offering (IPO), valuing the company at between US$2tn and US$2.5tn.
Part of the funds from the share sale, Mohammed said, will be used to set up a US$2tn sovereign wealth fund (SWF), which would easily surpass Norway’s US$865bn fund as the world’s biggest. SWFs are used commonly as investment arms for oil-dependent nations seeking to diversify revenue streams, and are among the world’s largest institutional investors………………………………………..Full Article: Source

Saudi Arabia to sell less than 5% of Aramco, create $2 trillion fund

Posted on 26 April 2016 by VRS  |  Email |Print

Saudi Arabia said Monday it would create the world’s largest wealth fund and sell shares in state energy giant Aramco as it unveiled a vast plan to transform its oil-dependent economy.
The announcement of the long-term reform programme, dubbed “Saudi Vision 2030″, marks the beginning of a hugely ambitious attempt to move Saudi Arabia beyond oil, the backbone of its economy for decades, amid a steep fall in prices………………………………………..Full Article: Source

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