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Zambia plans sovereign wealth fund to boost investment

Posted on 15 January 2014 by VRS  |  Email |Print

Zambia plans to establish a sovereign wealth fund to spur investment outside the mining industry of Africa’s biggest copper producer. According to President Michael Sata, the fund will be set up through the Industrial Development Corp., which will oversee the southern African nation’s state-owned companies.
“The state will through the IDC maximize the value of government assets by establishing a sovereign wealth fund, which will focus on stimulating investment in strategic non-mining industries among others, thereby expanding the country’s investment portfolio and thus creating jobs,” Sata said………………………………………..Full Article: Source

Zimbabwe proposes 25pct mine royalties for sovereign wealth fund

Posted on 14 January 2014 by VRS  |  Email |Print

Zimbabwe’s planned sovereign wealth fund will receive a quarter of mining royalties under a Bill proposed by the government, advancing a proposal first outlined in November.
The levies will be raised from companies mining gold, diamonds, coal, coal-bed methane gas, nickel, chrome, platinum “and such other mineral that may be specified”, according to a Bill dated January 10 and released publicly on Monday………………………………………..Full Article: Source

SWF to boost economy

Posted on 14 January 2014 by VRS  |  Email |Print

Zimbabwe’s planned Sovereign Wealth Fund will help stimulate investment in strategic sectors of the economy, including funding the huge infrastructural backlog estimated by the African Development Bank as requiring about US$15 billion.
Last week, Government gazetted the Sovereign Wealth Fund of Zimbabwe Bill expected to be tabled in Parliament soon. Zimbabwe still has significant challenges with regards to industrial performance, agricultural productivity, sovereign debt clearance, balance of payments equilibrium, dilapidating infrastructure and limited fiscal space………………………………………..Full Article: Source

Zambia plans sovereign wealth fund to diversify from mining

Posted on 10 January 2014 by VRS  |  Email |Print

Zambia, Africa’s leading copper producer, plans to establish a sovereign wealth fund to stimulate investment in strategic non-mining industries, a treasury official said on Thursday.
“We are currently working on the concept which will be presented to cabinet,” the ministry of finance’s permanent secretary in charge of budget and economic affairs, Felix Nkulukusa, said……………………………..Full Article: Source

Zambia plans sovereign wealth fund to stimulate investment

Posted on 09 January 2014 by VRS  |  Email |Print

Zambia plans to establish a sovereign wealth fund to spur investment outside the mining industry of Africa’s biggest copper producer, President Michael Sata said.
The fund will be set up through the Industrial Development Corp., which will oversee the southern African nation’s state-owned companies, Sata said in an e-mailed statement today. It “will focus on stimulating investment in strategic non-mining industries among others, thereby expanding the country’s investment portfolio and thus creating jobs,” he said………………………………………..Full Article: Source

Jesse Myerson suggests US start a sovereign wealth fund

Posted on 09 January 2014 by VRS  |  Email |Print

Of the five economic proposals Jesse Myerson lists in Rolling Stone, one stands out, though not in a positive sense: that the U.S. start a sovereign wealth fund. It’s a proposal that would prove problematic for capital markets, pose thorny conflicts of interest, and offer vast opportunities for cronyism and graft.
According to the World Federation of Exchanges, the market value of all publicly listed companies is about $63 trillion, about $23 trillion of which is listed on U.S. stock exchanges. If a U.S. sovereign wealth fund tried to buy a market-weighted index, it would wind up with more than 4 percent of every publicly traded company in the world………………………………………..Full Article: Source

Is East Africa ready for sovereign wealth funds?

Posted on 06 January 2014 by VRS  |  Email |Print

Sovereign wealth funds are fast becoming the “must-have” for any natural resource-exporting country, and for any country hoping to commercialise reserves of oil, gas or minerals in the near future. East Africa has not been left behind, with Kenya, Uganda and Tanzania all considering the establishment of such funds.
But the question vexing analysts is whether these funds are suitable for the region’s economic, social and demographic profile, considering that the countries in which sovereign wealth funds have been successful have small populations, huge current account surpluses and very low public debt—none of which characterises East Africa………………………………………..Full Article: Source

India: A trillion-dollar sovereign fund without a paise spent

Posted on 02 January 2014 by VRS  |  Email |Print

The government’s disinvestment programme is a failure. So far, it has raised just 3 percent of the Rs 40,000 crore it intended from the sale of equity in public enterprises in this fiscal year. Ministries do not want to let go off the companies. Disinvestment decisions are announced in advance, leading to a drop in stock prices and this in turn is used as an excuse to delay equity sale.
In unlisted companies, antiquated valuation methods are used for public offerings of equity. Is there a bigger, bolder idea here, without riling the usual prophets of doom? Yes, there is. We can create a trillion dollar India Sovereign Fund, without spending a single penny from the government’s fiscal book! Let me show you how. ……………………………………….Full Article: Source

LGPS ‘could be used as UK sovereign wealth fund’

Posted on 13 December 2013 by VRS  |  Email |Print

The Local Government Pension Scheme (LGPS) and other public sector schemes should consolidate to become “one of the world’s largest sovereign wealth funds”, London Pension Fund Authority (LPFA) chairman Edmund Truell says.
Speaking at the Eversheds Annual Pensions Conference, Pensions Insurance Corporation (PIC) founder Truell said chancellor George Osborne should abandon approaches to foreign investors and instead harness the value of public sector schemes to boost British infrastructure………………………………………..Full Article: Source

Australia: Making the case for a sovereign wealth fund

Posted on 13 December 2013 by VRS  |  Email |Print

Holden has announced that its manufacturing in Australia will drive off into the sunset by 2017. GM’s chairman Dan Akerson attributed this to the “sustained strength of the Australian dollar [and] high cost of production”, or, in other words, Dutch disease. To prevent other exporters doing the same Australia must strengthen its mining tax and save the proceeds in a sovereign wealth fund.
Australia’s car makers are not the only ones that have been struggling. Everyone from wine makers and food producers to aerospace engineers have been affected by the strong Australian dollar. At the same time the price of housing and living expenses have skyrocketed and mining has, well, boomed………………………………………..Full Article: Source

Australia: Wealth fund idea naive, pathetic: Henry

Posted on 12 December 2013 by VRS  |  Email |Print

Calls to set up a sovereign wealth fund to accompany Australia’s resources boom have been labelled “naive, even pathetic” by former treasury secretary Ken Henry. The idea of establishing such a fund, containing a slice of the government’s income from commodity sales to be invested in financial assets, has been flagged during a national debate on capitalising on the mining boom.
Henry said that, unlike Australia, Norway charged a significant price for its natural resources. Norway with its gas and oil reserves has a sovereign wealth fund, the Government Pension Fund Global, which is the world’s largest………………………………………..Full Article: Source

Norway oil fund under lawmaker pressure to buy more in Africa

Posted on 10 December 2013 by VRS  |  Email |Print

Norway’s Christian Democrats, a key support party for the minority government, called on the nation’s sovereign wealth fund to steer more of its $810 billion in assets into Africa to reap better returns.
The party wants to set aside 10 billion kroner ($1.6 billion) of the fund’s cash for African purchases as a “starting point” for a debate on how much should be invested there, Knut Arild Hareide, leader of the Christian Democrats, said in a Dec. 6 interview………………………………………..Full Article: Source

Tanzania to establish SWF from gas to finance development

Posted on 09 December 2013 by VRS  |  Email |Print

Tanzania has moved to secure the gains from its natural gas reserves by creating a sovereign wealth fund. The Natural Gas Reserve Fund is expected to hold proceeds from the industry in trust, for investment in other sectors of the economy, as well as finance social and economic development and build savings for future generations.
Established by the newly enacted Natural Gas Policy 2013, the fund is expected to act as a state-owned investment vehicle to ensure that Tanzanian citizens benefit directly from the profits of natural gas. “We don’t want to take all the money from the gas sector to the Treasury as was the case with the mining sector, which led citizens to believe that mining had contributed nothing to their lives,” said Deputy Minister for Energy and Minerals George Simbachawene………………………………………..Full Article: Source

Why we are opposed to SWF – Amaechi

Posted on 09 December 2013 by VRS  |  Email |Print

As controversy over the setting up the Sovereign Wealth Fund (SWF) continued to rage with the 36 states of the federation telling to the Supreme Court during the week that talks aimed at amicably resolving the issue had collapsed and urged the court to proceed with the hearing of the case, it has now been revealed real reason most states are opposed to the institution of the fund.
The Supreme Court had on Monday fixed March 24, 2014 for definite hearing in the suit filed by 36 state governors against the Federal Government over the Excess Crude Account and the Sovereign Wealth Fund………………………………………..Full Article: Source

Does Kenya really need a sovereign wealth fund?

Posted on 06 December 2013 by VRS  |  Email |Print

Among the distinct terms of reference for the Presidential Task Force on Parastatal Reform was to consider the institutional framework for setting up a Sovereign Wealth Fund for Kenya .
Sovereign Wealth Funds are vehicles established by governments to hold assets, reserves and generate profits for stated purposes. While these funds have been existence for a long time, the pace of their establishment and the assets they hold have risen significantly in the last ten years. For Kenya , establishment of a Sovereign Wealth Fund appears to be driven by the recent discoveries of petroleum and other mineral deposits……………………………………….Full Article: Source

We are a sovereign fund: Nicolas Dufourcq, CEO of France’s public investment bank

Posted on 06 December 2013 by VRS  |  Email |Print

Nicolas Dufourcq is the Chief Executive Officer of Bpifrance, the first ever Bank for Public Investment in France. Earlier, he served as Deputy Chief Executive Officer at Capgemini, the informatics giant, which has a workforce of 45,000 in India, a third of its total staff of 125,000.
Its mandate is to offer all possible financial resources and facilities to the French entrepreneur, from the hairdresser to the technology marvel listed on the Nasdaq. And that includes some very big companies in which we have an equity stake. We are a sovereign fund………………………………………..Full Article: Source

Belgium, India to set up fund for infrastructure development

Posted on 02 December 2013 by VRS  |  Email |Print

With the Indo-EU free trade agreement (FTA) in limbo, Brussels is focusing on bilateral relations and would be investing jointly in infrastructure projects in India. “If it’s impossible to reach the goal for the moment to have an EU-India FTA, we need to enhance bilateral relations,” visiting Belgian deputy prime minister Didier Reynders said.
In pursuit of the same, Belgium has floated the idea of its sovereign wealth fund Federal Holding Company joining hands with India’s Infrastructure Leasing and Financial Services (IL&FS), to create a fund that will invest in infra projects as well as in listed and privately-held companies in the country, he said………………………………Full Article: Source

Iran oil imports: Insurers still want sovereign fund

Posted on 02 December 2013 by VRS  |  Email |Print

Indian insurers still want the sovereign fund, meant to protect the domestic refiners using Iranian crude oil, to be set up. This is despite India getting waiver from the West on tough economic sanctions for doing business with Iran.
“Unless the European and American companies are allowed to undertake re-insurance of Indian purchases, the need for putting together a domestic arrangement in India does not go away,” G. Srinivasan, Chairman and Managing Director, New India Insurance, said. India had decided to set up a fund to back domestic insurers covering refineries dependent on Iranian crude oil………………………………Full Article: Source

Sovereign wealth fund long overdue

Posted on 02 December 2013 by VRS  |  Email |Print

The Zimbabwe National Chamber of Commerce has called for the business community to closely work with Government in the implementation of the economic blueprint, Zimbabwe Agenda for Sustainable Socio-Economic Transformation, to revive the economy.
The ZNCC national president, Mr Hlanganiso Matangaidze said in a recent interview that it was imperative for business and Government to bury grudges if ZIMASSET is to work. His comments come following the launch of the Sovereign Wealth Fund of Zimbabwe Bill by Cabinet recently, which is expected to help fund the ZIMASSET………………………………Full Article: Source

Zimbabwe: Sovereign wealth fund long overdue

Posted on 29 November 2013 by VRS  |  Email |Print

The Zimbabwe National Chamber of Commerce has called for the business community to closely work with Government in the implementation of the economic blueprint, Zimbabwe Agenda for Sustainable Socio-Economic Transformation, to revive the economy.
The ZNCC national president, Mr Hlanganiso Matangaidze said in a recent interview that it was imperative for business and Government to bury grudges if ZIMASSET is to work.His comments come following the launch of the Sovereign Wealth Fund of Zimbabwe Bill by Cabinet recently, which is expected to help fund the ZIMASSET………………………………………..Full Article: Source

Independent Scotland would create oil and gas wealth fund

Posted on 27 November 2013 by VRS  |  Email |Print

An independent Scottish government would create a sovereign wealth fund using revenue from exploiting oil and gas reserves worth around 1.5 trillion pounds ($2.4 trillion), the Sottish government said in an independence blueprint on Tuesday.
Scotland will vote on Sept. 18, 2014 on whether to split from England after 306 years to create an independent nation. “This government will make the creation of a Scottish Energy Fund an early priority,” the devolved government, which favours independence, said in its report, adding that it would also put in place a more stable tax regime for oil and gas exploration………………………………………..Full Article: Source

Panel discuses merits of Sask. Futures Fund

Posted on 27 November 2013 by VRS  |  Email |Print

A number of questions should be answered before Saskatchewan creates a heritage-type fund from excess natural resource revenues, said panellists at a public forum discussing the idea.
Former University of Saskatchewan president Peter MacKinnon has tabled a report proposing a Saskatchewan Futures Fund to be established as early as next year. The fund would use excess resource revenues above the five-year average of 26 per cent of total government revenues………………………………………..Full Article: Source

Create frameworks for sovereign wealth fund: WB

Posted on 26 November 2013 by VRS  |  Email |Print

Government needs to come up with a clear accountability framework for the Sovereign Wealth Fund proposed in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, a World Bank representative said.Addressing delegates at a consultative meeting in Harare last week, World Bank Director for Poverty Reduction and Economic Management in Africa Mr Marcelo Giugale said the idea of a Sovereign Wealth Fund was a good one if handled properly.
“Government should prioritise putting frameworks in place. There is need for a strong fiscal framework, a balanced budget and a transparency and accountability framework so that people know what is happening,” he said………………………………………..Full Article: Source

Futures fund report tabled

Posted on 15 November 2013 by VRS  |  Email |Print

Former University of Saskatchewan president Peter MacKinnon has released his report to Premier Brad Wall on a proposed Saskatchewan Futures Fund. The report provides a framework for the government to create a fund to permanently save a portion of the province’s non-renewable resource revenues to invest and grow for future generations.
MacKinnon was appointed by Wall in October of 2012 as part of the Saskatchewan Plan for Growth to examine and report on the efforts government could take to safeguard one-time non-renewable resource revenues………………………………………..Full Article: Source

Sask. gov’t considering Futures Fund

Posted on 13 November 2013 by VRS  |  Email |Print

It’s no secret resources such as oil, potash and uranium are making significant money for Saskatchewan. Now, it may be time to invest.
“We’re very grateful for the natrual resource strength of our economy, but for the most part, they are non-renewable.” Premier Brad Wall said. “Once we sell them, they’re gone.”……………………………………….Full Article: Source

Sovereign wealth fund needed, Wall government told

Posted on 08 November 2013 by VRS  |  Email |Print

A new report put together by former University of Saskatchewan president, Peter MacKinnon, suggests the province should develop a sovereign wealth fund to manage revenues earned from non-renewable resources such as petroleum, potash, and uranium.
In a draft report the province mistakenly sent out attached to an unrelated press release, MacKinnon recommends the Saskatchewan Futures Fund be run separate from the government and that it not be used as a “rainy day” relief fund when the province runs into financial trouble………………………………………..Full Article: Source

Oil Fund’s investment results made public

Posted on 08 November 2013 by VRS  |  Email |Print

About 48 percent of the total investment volume of the State Oil Fund (SOFAZ) in the first nine months of 2013 was in the U.S. dollars, the Fund reported on November 4. The mentioned figure is over $17.05 billion. The SOFAZ’s foreign currency assets by September 30, 2013 amounted to $35.809 billion, compared to $34.129 billion at the beginning of the year.
Around 40.1 percent of the investment portfolio is concentrated in euros (over 10.553 billion euros), 5.2 percent in British pounds sterling (over 1.146 billion pounds sterling), 1.2 percent in Turkish Lira, 0.5 percent in Australian dollars, and 1.8 percent in Russian rubles………………………………………..Full Article: Source

Excess crude account is intact - Finance Ministry

Posted on 07 November 2013 by VRS  |  Email |Print

The Federal Ministry of Finance has denied news reports that 1.3 billion dollars is missing from the Excess Crude Account, describing the report as “ totally inaccurate.”
In a statement signed by the Special Adviser to the Minister of Finance, Paul C Nwabuikwu, the ministry said “such reports are a misrepresentation of what actually transpired during the appearance of the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala before an open hearing of the joint Finance Committees of the Senate and House………………………………………..Full Article: Source

Senate, minister differ on $1.03bln Excess Crude fund

Posted on 05 November 2013 by VRS  |  Email |Print

The Federal Government and the Senate yesterday disagreed over the whereabout of $1.03 billion Excess Crude Fund. The disagreement followed the disclosure by the Minister of Finance, and Coordinating Minister for the Economy, Mrs. Ngozi Okonjo-Iweala that the balance in the Excess Crude Account amounted to $4.3 billion.
She did not however disclose the total accrual to the account. She spoke at a Joint Senate Committee of Finance and Appropriation meeting on the 2013 budget and the Federal Government revenue-generating agencies………………………………………..Full Article: Source

Zimbabwe plans sovereign wealth fund

Posted on 04 November 2013 by VRS  |  Email |Print

Zimbabwe plans to craft a new law to set up a sovereign wealth fund by February next year, but it may not have any money at first as the government desperately needs to develop the country’s crumbling infrastructure.
Finance Minister Patrick Chinamasa said government would consider a first international bond issue to help finance its mining sector. Harare has indicated it wants to create a sovereign wealth fund to buy shares in foreign-owned companies, including mines, under President Robert Mugabe’s black economic empowerment programme. ‘Legislation to set up the sovereign wealth fund will be ready by the first quarter next year, February at the latest,’ he added………………………………Full Article: Source

Zimbabwe plans sovereign wealth fund law

Posted on 01 November 2013 by VRS  |  Email |Print

Zimbabwe plans to craft a law to set up a sovereign wealth fund by next February - but it may not have any money at first as the government desperately needs to develop the country’s crumbling infrastructure, the finance minister said. Patrick Chinamasa also said on Wednesday that the government would consider a first international bond issue to help finance its mining sector.
The southern African country has previously said it wanted to create a sovereign wealth fund to buy shares in foreign-owned companies, including mines, under President Robert Mugabe’s controversial black economic empowerment programme…………………………….Full Article: Source

Zimbabwe plans wealth fund law by Feb, but no cash at first - finmin

Posted on 31 October 2013 by VRS  |  Email |Print

Zimbabwe plans to craft a law to set up a sovereign wealth fund by next February - but it may not have any money at first as the government desperately needs to develop the country’s crumbling infrastructure, the finance minister said.
Patrick Chinamasa also said on Wednesday that the government would consider a first international bond issue to help finance its mining sector. The southern African country has previously said it wanted to create a sovereign wealth fund to buy shares in foreign-owned companies, including mines, under President Robert Mugabe’s controversial black economic empowerment programme……………………………..Full Article: Source

Why India should steer clear of sovereign wealth funds

Posted on 30 October 2013 by VRS  |  Email |Print

The Government of India, according to press reports, is considering approaching sovereign wealth funds (SWFs) to invest in India. This is an interesting idea that needs to be examined closely. In the recent financial crisis, SWFs are known to have played a stabilising role but that has not been their historical image.
In fact, the threats posed by the SWFs and their intentions were characterised by the attempted purchase of US ports by a Dubai-based company in 2006 and expansion in Europe by Russia’s Gazprom. These attempts alarmed policymakers in advanced countries…………………………………….Full Article: Source

Creation of sovereign wealth fund receives commendation

Posted on 30 October 2013 by VRS  |  Email |Print

The creation of the Sovereign Wealth Fund by the Federal Government, has received commendation from International development partners. Chairman of the Nigerian Sovereign Investment Authority, Mr Mahey Rasheed , stated this when he paid a courtesy visit on the Lagos state governor in southern Nigeria, Mr. Babatunde Fashola.
He said the Fund had been recognised and rated high by Germany’s Investment forum, the UK Development For International Development and the International Monetary Fund (IMF) among others. Mr. Rasheed, said the fund had employed the best brains in the country to oversee and administer its various investments portfolios abroad…………………………………….Full Article: Source

Gov. Fashola slams FG over SWF, says it’s unconstitutional

Posted on 29 October 2013 by VRS  |  Email |Print

Governor Babatunde Fashola of Lagos State denounced the move by the Federal Government to inaugurate the Sovereign Wealth Fund, SWF, stressing that it negates the country’s constitution.“The 1999 Constitution does not allow us to do what we are doing,” Fashola said.
It will be recalled that, a month ago, President Goodluck Jonathan inaugurated the council of the Nigerian Sovereign Investment Authority, NSIA, also known as SWF, where he canvassed for the support of the contributors, to realise the set objective of the fund………………………………………..Full Article: Source

Selangor plans RM1bln sovereign wealth fund

Posted on 28 October 2013 by VRS  |  Email |Print

The Selangor state government is planning to set up a RM1 billion sovereign wealth fund as a way to develop its major urban centres like Petaling Jaya and Klang into “worldclass” cities.
The Selangor Urban Development Fund will raise part of the money from private sector businesses in real estate and infrastructure development by leveraging assets like state-owned land. The fund will be parked under the state’s Mentri Besar Inc. Selangor Menteri Besar Khalid Ibrahim revealed the plan in Johor while presenting a paper at the Future of Urban Living Conference in Iskandar………………………………………..Full Article: Source

Selangor plans RM1bln sovereign wealth fund

Posted on 23 October 2013 by VRS  |  Email |Print

The Selangor state government is planning to set up a RM1 billion sovereign wealth fund as a way to develop its major urban centres like Petaling Jaya and Klang into “worldclass” cities. The Selangor Urban Development Fund will raise part of the money from private sector businesses in real estate and infrastructure development by leveraging assets like stateowned land.
The fund will be parked under the state’s Mentri Besar Inc. Selangor Mentri Besar Tan Sri Khalid Ibrahim revealed the plan in Johor while presenting a paper at the Future of Urban Living Conference in Iskandar………………………………………..Full Article: Source

On Nigeria’s sovereign wealth fund

Posted on 22 October 2013 by VRS  |  Email |Print

There was a time the Minister of Finance, Dr Ngozi Okonjo-Iweala, was championing the need for the country to have a Sovereign Wealth Fund. I really don’t know how far she has gone on this, but I support her reasons for coming up with the fund.
We can’t just keep spending all we are earning from crude oil. I understand some state governors are against this fund because it will mean that they will be forced to contribute to the account, which will result in a reduction of their allocation from the Federation account………………………………………..Full Article: Source

Thailand’s central bank rules out sovereign fund

Posted on 21 October 2013 by VRS  |  Email |Print

Thailand’s central bank governor Prasarn Trairatvorakul yesterday ruled out the possibility of a sovereign wealth fund any time soon, saying there was a lack of instruments to manage risks. “We have diversified our investment portfolio within the risk management framework,” he said. “There is no initiative to establish any kind of a fund at the moment.”
Earlier, Pongpen Ruengvirayudh, the deputy governor overseeing monetary stability, said the bank was studying a plan to use its surplus foreign reserves to establish what would be called a “New Opportunity Fund”, aimed at increasing returns as a part of efforts to improve its balance sheet. Such a sovereign wealth fund would be managed by a separate organisation or the central bank………………………………………..Full Article: Source

Gavin McCrone: Is an oil fund still feasible?

Posted on 18 October 2013 by VRS  |  Email |Print

According to John Swinney, the answer is Yes – and an independent Scotland will have one in 2017. But the right time for it may well have passed, says Gavin McCrone.
In her article in this newspaper on Monday, Lesley Riddoch referred to “the McCrone Oil Report cover-up of the 1970s” and in the summer Rory Bremer, in his special programme about Scottish politics, referred to the “suppression of the McCrone Report”. I’ve begun to think it’s time I explained myself………………………………………..Full Article: Source

Is Japan starting a sovereign wealth fund?

Posted on 15 October 2013 by VRS  |  Email |Print

Years of currency manipulation by Japan’s Ministry of Finance has left it with $1.27 trillion in foreign exchange reserves, most of which are invested in low-yielding U.S. Treasury bonds.
Following an account in Japan’s Nikkei newspaper, Bloomberg News reported that the ministry is planning to outsource management of some of this money. Details about the plan are thin. Still, it could mark the first step toward the creation of a Japanese sovereign wealth fund that invests for profit………………………………………..Full Article: Source

Kenya: State eyes mega fund to manage country’s wealth

Posted on 14 October 2013 by VRS  |  Email |Print

Kenya plans to set up a mega fund that will manage and re-invest revenues that the government gets mostly from natural resources as the country readies itself to start exploitation of oil and other minerals. The proposed National Sovereign Wealth Fund, which will get a Sh10 billion seed capital from the National Treasury, will be used to support macroeconomic stability and public investment, notably development of infrastructure.
The special fund seeks to help the country avoid ‘the resource curse’ that has afflicted many resource rich countries. The Fund will also have a key mandate to set aside wealth acquired for Kenya’s future generations that will not immediately enjoy returns from oil and minerals that the country has discovered in substantial quantities………………………………………..Full Article: Source

Ottawa: Wisely manage resource money

Posted on 14 October 2013 by VRS  |  Email |Print

As the deadline looms for Peter MacKinnon’s report on a proposed sovereign wealth fund, the Saskatchewan government should study carefully a new report warning of the need for Ottawa to address income disparities across the provinces.
The Institute for Research on Public Policy released a report Thursday saying that Canada is suffering a bout of Dutch disease caused by disparate and high incomes in three provinces driven by resource incomes, and suggesting that Ottawa must take measures to ease the pain………………………………………..Full Article: Source

Alberta’s Heritage fund under microscope

Posted on 11 October 2013 by VRS  |  Email |Print

A government committee dedicated to Alberta’s Heritage Savings Trust Fund faced some tough questions during a public meeting last week. The eight MLAs on the standing committee on the fund heard public concerns on the fund’s ability to help during disasters like the spring flooding, debt sustained because of the fund, when heritage fund dollars can be used and the ethical decisions surrounding Alberta’s global investments.
“We had very intelligent questions from the public, both in the room and online, and I think we were able to give them some substantive answers,” committee chairman and St. Albert MLA Stephen Khan said. “This $16.8 billion is not the government’s money, it’s for all Albertans.”……………………………………….Full Article: Source

Thailand: Pridiyathorn backs sovereign wealth fund idea

Posted on 10 October 2013 by VRS  |  Email |Print

Former deputy prime minister MR Pridiyathorn Devakula supports the idea for Thailand to establish a sovereign wealth fund. The former central banker said that the Bank of Thailand has mulled this option for some time.
“It’s a feasible idea, but the concern is how to finance the fund. Of foreign reserves about US$200 billion, about $60 billion is used to back the issuance of banknotes and the rest is controlled by other departments. It remains to be seen which part would be used to finance the fund,” he said. By law, the Bank of Thailand must maintain reserves at not less than 60 per cent of the notes issued………………………………………..Full Article: Source

India: Government mulls new corporation for overseas buyouts, fund mop up: report

Posted on 08 October 2013 by VRS  |  Email |Print

The government is mulling a new corporation, to be set up by pooling the funds from cash-rich public sector enterprises, for acquiring overseas assets as well as raising money abroad. The proposal comes at a time when India is looking to attract more overseas investments into infrastructure to boost economic growth, which has turned sluggish in recent times.
Meanwhile, the official ruled out the possibility of the government setting up a Sovereign Wealth Fund (SWF). “SWFs can be formed by the governments those have a positive current account balance and fiscal balance. We will need time before we can form such a fund,” the official added………………………………………..Full Article: Source

Thailand: Sovereign fund likely to be ready by 2015, says Ampon

Posted on 07 October 2013 by VRS  |  Email |Print

The Bank of Thailand remains committed to moving ahead with plans to establish a sovereign wealth fund, pledging it will be up and running by 2015, says Ampon Kittiampon, the central bank’s newly appointed chairman.
He said the fund is being studied by a working panel in order to make the best use of surplus foreign reserves and ease the government’s burden for international borrowing to finance state spending………………………………………..Full Article: Source

The sums do not add up to allow for a Scottish oil fund

Posted on 07 October 2013 by VRS  |  Email |Print

In principle there can be little objection to using the annual tax revenues from North Sea hydrocarbons to establish a stabilisation fund and a sovereign wealth fund. In reality, however, it is pie in the sky, as Finance Secretary John Swinney well knows, not least because all the revenues are being consumed in order to fund a pattern of public spending bequeathed by Gordon Brown, never opposed by the SNP, and barely curtailed by David Cameron’s Coalition.
The UK has an annual fiscal deficit of £120bn. Scotland’s share on the more favourable population ratio basis is at least £11bn………………………………………..Full Article: Source

Scotland ‘could launch national oil fund’ after 2014

Posted on 04 October 2013 by VRS  |  Email |Print

Scotland could launch a national oil fund within a year of independence, experts said. The Scottish government bolstered its call for a Yes vote in next year’s referendum following the report, which found a dual-fund system could begin investing the government’s North Sea royalties as early as 2016.
The plan would see a short-term “stabilisation” fund managing dips and peaks in revenue gained from its oil and gas revenues, while gains from a second, long-term fund could be channelled into public assets, the government’s independent Fiscal Commission Working Group found………………………………………..Full Article: Source

John Swinney reveals oil fund plan

Posted on 04 October 2013 by VRS  |  Email |Print

An independent Scotland could borrow, save and reduce debt simultaneously without raising taxes or cutting public services if it puts some money into an oil fund, according to Finance Secretary John Swinney.
An expert working group commissioned by ministers has said the Scottish Government does not have to wait until the budget is in surplus to establish an oil fund. Norway was in deficit when it established its fund in 1990 and it is now worth £470 billion, the Scottish Government Fiscal Commission Working Group’s report on stabilisation and savings funds points out………………………………………..Full Article: Source

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