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

The key to the success of NIIF, India’s new SWF, will be governance

Posted on 30 December 2015 by VRS  |  Email |Print

India now has a sovereign wealth fund. The National Investment and Infrastructure Fund (NIIF) will soon get a chief executive even as negotiations are on with strategic investors to put in capital above the Rs.20,000 crore a year that the government has promised. This money will be leveraged through debt.
Governments are generally bad at picking investment opportunities. The key to the success of NIIF will be governance. Money is to be put not just into asset management companies that buy infrastructure assets but also private projects, both new and stalled. It is thus important that the fund managers are given operational freedom to invest in the most attractive opportunities………………………………………..Full Article: Source

Gov’t, private reps likely to manage Wealth Fund

Posted on 28 December 2015 by VRS  |  Email |Print

The David Granger administration hopes that the proposed Sovereign Wealth Fund (SWF) will be managed by a hybrid of government and private individuals, according to Minister of Governance Raphael Trotman.
“It is a well-known phenomenon that where governments are too involved in managing funds, they don’t always function at an optimum level especially if these are funds to be invested. It is best when funds are managed partially between government and private sector professionals. Some countries even have funds managed out of the country,” he said………………………………………..Full Article: Source

Natural Resources: New Fiscal Regime Under Development

Posted on 18 December 2015 by VRS  |  Email |Print

The Government is working with the Commonwealth Secretariat to finalise a new fiscal regime for the mining of sand, aragonite and other Bahamian natural resources, the Minister of the Environment and Housing said. Kenred Dorsett, while the House of Assembly on the Sovereign Wealth Fund Bill, said: “The Commonwealth Secretariat is in town, and we are seeking to finalise the new fiscal and legislative regime for mining in the country; for instance, the use of sand, aragonite and other natural resources.
As for the creation of a sovereign wealth fund, Dorsett said it would be established to mainly save and invest surplus funds gained from oil exploration, natural gas, minerals and other natural resources. Sovereign wealth funds, such as Singapore’s Temasek, have been established by many Middle Eastern and Asian nations as vehicles to hold multi-billion dollars worth of assets and revenues……………………………………….Full Article: Source

UAE, China to set up $10bn joint strategic investment fund

Posted on 15 December 2015 by VRS  |  Email |Print

The United Arab Emirates and China have launched a joint strategic investment fund worth $10 billion, the two countries said in a joint statement on UAE state news agency WAM.
The fund will be administered and managed by Abu Dhabi state fund Mubadala and a subsidiary of China Development Bank, the statement said. The goal behind the fund’s launch, in which both parties are providing equal financing, is to build a balanced fund that incorporates diversified commercial investments and covers a spectrum of growing sectors………………………………………..Full Article: Source

Sovereign wealth fund not a goal for Thailand’s central bank

Posted on 10 December 2015 by VRS  |  Email |Print

The Bank of Thailand is not pursuing a path towards the creation of a sovereign wealth fund, but rather seeking greater flexibility in managing foreign reserves to cope with volatility in the year ahead. Like his predecessor, Prasarn Trairatvorakul, newly appointed BOT Governor Veerathai Santiprabhop does not support the idea of financing government projects with foreign reserves.
“The reserves do not belong to any government,” he bluntly said in an interview, when asked about the possibility. “Rather, it is the money of all Thais, aimed at maintaining the stability of international transactions.” Reserves are accumulated in line with foreign inflows, therefore all parties must be mindful when the capital exits the country, he added……………………………………….Full Article: Source

Thailand: Sovereign wealth fund not a goal for central bank

Posted on 09 December 2015 by VRS  |  Email |Print

The Bank of Thailand is not pursuing a path towards the creation of a sovereign wealth fund, but rather seeking greater flexibility in managing foreign reserves to cope with volatility in the year ahead. Like his predecessor, Prasarn Trairatvorakul, newly appointed BOT Governor Veerathai Santiprabhop does not support the idea of financing government projects with foreign reserves.
“The reserves do not belong to any government,” he bluntly said in an interview, when asked about the possibility. “Rather, it is the money of all Thais, aimed at maintaining the stability of international transactions.” Reserves are accumulated in line with foreign inflows, therefore all parties must be mindful when the capital exits the country, he added………………………………………..Full Article: Source

Zim not yet ready for Sovereign Wealth Fund

Posted on 09 December 2015 by VRS  |  Email |Print

Secretary in the Office of President and Cabinet, Ambassador Stuart Combabach says Zimbabwe’s Sovereign Wealth Fund is ill-timed because the country has no surplus resources to invest in the fund. The Act setting up the SWF was assented to by President Mugabe on November 6, 2014 and legislation was officially gazetted on June 26, this year.
The SWF board was put together on the first of July this year. Ambassador Combabach said while the concept of a sovereign wealth fund for Zimbabwe was welcome and endorsed, there are question marks over the wisdom and practicality of launching it at this point. He said, since a SWF functions or is funded on the basis of budget surplus and or trade surplus, Zimbabwe has not been able to attain such a situation for a long time………………………………………..Full Article: Source

SADC must set up sovereign wealth funds

Posted on 08 December 2015 by VRS  |  Email |Print

Zimbabwe and most other SADC countries should adopt practical steps to develop sovereign wealth funds financed out of mineral resources found in the region to help member states to overcome the severe constraints imposed by the volatility in international trade and vicissitudes in the global economy, a leading economic think-tank says.
Dr Gibson Chigumira, head of the Zimbabwe Economic Policy Analysis and Research Unit (ZEPARU), told The Southern Times that sovereign wealth funds (SWFs) are particularly relevant to Southern Africa because resources funded from SWFs present viable strategies of sharing mineral wealth equitably with future generations and for macro-economic stabilisation………………………………………..Full Article: Source

A Sovereign Wealth Fund is not what Guyana needs

Posted on 07 December 2015 by VRS  |  Email |Print

The Sovereign Wealth Fund (SWF) was first publicly discussed immediately before the May 2015 election when Exxon disclosed a “significant” find of oil reserves. In theory, the SWF or simply put, an account where the savings derived from a country’s natural resources are deposited so that they may be used for investment (almost always foreign investment) and budgetary stabilisation measures, is one where the citizens after hearing its explanation would shake their heads and say “yes – that is a good idea”.
It is almost always discussed as a measure to ostensibly avoid the potential pitfalls of the over-referenced but universally false ‘Dutch disease.’ Cde Bharrat Jagdeo, the Leader of the Opposition, is right that a more careful analysis and understanding of comparative fundamental economic indicators will cause one to conclude that a SWF, especially one fashioned on the Canadian and/or Norwegian model, is not what Guyana needs. Why?……………………………………….Full Article: Source

Zimbabwe: Boost for Sovereign Wealth Fund

Posted on 02 December 2015 by VRS  |  Email |Print

Government has allocated $1 million to the Sovereign Wealth Fund (SWF), in a bid to kick-start the national resource pool aimed at empowering citizens. In his 2016 budget statement, Finance minister Patrick Chinamasa said the initiative — set to support macroeconomic stabilisation, including long-term economic and social development objectives — was going to be financed by mining royalties.
“In terms of the Sovereign Wealth Fund Act, the fund will be financed through a charge of up to 25 percent on royalty collections on mineral sales, as well as on special dividend on the sale of diamond, gas, granite and other minerals………………………………………..Full Article: Source

Govt gives Macau’s sovereign wealth fund a name

Posted on 01 December 2015 by VRS  |  Email |Print

Macau’s sovereign wealth fund will be called the MSAR Investment and Development Fund, Secretary of the Economy and Finance Lionel Leong Vai Tac has said. Mr Leong told the Legislative Assembly that a government corporation would manage the fund.
He said the money in the fund would come from the extraordinary fiscal reserve. But Mr Leong failed to say how much money the fund would contain………………………………………..Full Article: Source

Leong: City’s sovereign wealth fund to be managed by government corporation

Posted on 30 November 2015 by VRS  |  Email |Print

The planned sovereign wealth fund for Macau - named by the authorities as the MSAR Investment and Development Fund - will be supported by an allocation from the city’s extraordinary fiscal reserve and managed by a government corporation, Secretary for Economy and Finance Lionel Leong Vai Tac revealed during the Policy Address 2016 debate on Friday.
The proposal of having a government-run corporation to manage the sovereign wealth fund is based on the Monetary Authority of Macau’s (AMCM) study that surveyed public opinion, Mr. Leong told the Assembly. The proposal has already been forwarded to the Chief Executive, the Secretary added………………………………………..Full Article: Source

Sovereign wealth fund legislation by end of 2016 – Trotman

Posted on 30 November 2015 by VRS  |  Email |Print

Before the end of next year, government hopes to lay legislation in the National Assembly to set up a sovereign wealth fund, Minister of Governance Raphael Trotman has said.
“Government envisions that before the end of 2016, model legislation will be laid in the National Assembly for scrutiny and debate and…nationwide consultations will (ensue) before, and during, the process of finalizing this policy through necessary legislation,” he told a workshop focused on the establishment of a Sovereign Wealth Fund (SWF) for Guyana………………………………………..Full Article: Source

Britain joins sovereign wealth party too late

Posted on 27 November 2015 by VRS  |  Email |Print

Sovereign wealth funds are supposed to help resource-rich countries plan for the future and broaden their economies. Britain’s version of a SWF unveiled by finance minister George Osborne on Nov. 25 will do neither. It is also unlikely to meet its primary objective of swaying opponents of shale gas developments to think otherwise.
Osborne said the Shale Wealth Fund could be worth up to 1 billion pounds over time. According to the finance ministry, this would be funded by siphoning off 10 percent of the revenue it expects to rake in over the next 25 years from companies fracking in the UK………………………………………..Full Article: Source

Oil Find Prompts Guyana to Create Sovereign Wealth Fund

Posted on 27 November 2015 by VRS  |  Email |Print

Guyana’s government announced on Wednesday that it will ask the National Assembly to approve the creation of a sovereign wealth fund linked to the discovery of oil in coastal waters of the disputed Essequibo region, which is claimed by neighboring Venezuela. The bill will be presented in the House of Representatives next year and the government will also seek input from the public, Governance Minister Raphael Trotman said.
“Nationwide consultations will be held both before and during the process of finalizing this policy through necessary legislation,” he said. Trotman said that while the impetus for the establishment of the fund comes from the oil find, government revenues from the exploitation of gold, diamonds, bauxite and other commodities would also be deposited in the fund………………………………………..Full Article: Source

Guyana crafting Sovereign Wealth Fund legislation

Posted on 26 November 2015 by VRS  |  Email |Print

Guyana will next year table legislation in the National Assembly to create a Sovereign Wealth Fund (SWF), ahead of commercial drilling for oil by American oil giant, Exxon Mobil, Minister of Governance Raphael Trotman announced Wednesday.
Addressing the opening of a workshop on the SWF’s creation at the Arthur Chung Conference Centre (ACCC), he said the Bill would be laid in the House before the end of 2016 for scrutiny and debate as well as inputs from the wider Guyanese public. “Nationwide consultations will be held both before and during the process of finalizing this policy through necessary legislation,” he said………………………………………..Full Article: Source

Sovereign Wealth Fund consultation commences

Posted on 26 November 2015 by VRS  |  Email |Print

The Government of Guyana, in collaboration with the Canadian High Commission and the University of Calgary’s School of Public Policy, today began a two-day workshop on the establishment of a Sovereign Wealth Fund (SWF) for the country. The event is being held at the Arthur Chung Convention Centre (ACCC).
During the course of the next two days, the facilitating team will undertake a study of current legislative policies to see how best they can be improved to suit the Oil and Natural resources sectors………………………………………..Full Article: Source

UK to launch sovereign fund with proceeds from shale gas

Posted on 26 November 2015 by VRS  |  Email |Print

The UK is to launch a sovereign wealth fund with the receipts of shale gas revenue, the government has confirmed. First mentioned in July’s Budget, chancellor of the Exchequer George Osborne confirmed its creation during the Autumn Statement, when he pledged to support the shale gas industry “by ensuring communities benefit from a shale wealth fund”.
The UK Treasury also revealed that up to 10% of shale gas tax revenue would be diverted to the new sovereign wealth fund, which it said would invest in local communities “hosting shale gas developments”………………………………………..Full Article: Source

Saudi Arabia SWF plans Fannie Mae-style mortgage company

Posted on 19 November 2015 by VRS  |  Email |Print

Saudi Arabia is working with the Boston Consulting Group to help start a state-owned mortgage firm similar to the US’s Fannie Mae and Freddie Mac as it seeks to develop a secondary market for home loans, people with knowledge of the plans said. Public Investment Fund, the kingdom’s sovereign wealth fund, will provide most of the approximately 10 billion riyals (Dh9.79 billion or $2.67 billion) of the institution’s capital, three people said, asking not to be identified because the plans aren’t public.
PIF is in the process of selecting an executive to lead the new company, according to two of the people. Saudi Arabia is seeking to boost home ownership amid one of the world’s lowest mortgage penetration rates. It approved a mortgage law in 2013 and is planning to tax undeveloped land within urban boundaries to boost the availability and affordability of homes…………………………………….Full Article: Source

Room at the top: The Future Fund

Posted on 17 November 2015 by VRS  |  Email |Print

With its 10th birthday approaching, the Future Fund is entering its next incarnation complete with a new investment team structure. Investment Magazine spoke to Raphael Arndt, Stephen Gilmore and David Neal. When David Neal, the inaugural chief investment officer of the Future Fund, became its managing director on August 4 last year, his previous role was split in two.
Long-time head of timberland and infrastructure Raphael Arndt became the chief investment officer responsible for leading the investment team in developing the research, due diligence and selection and monitoring processes for assets and investment managers……………………………………….Full Article: Source

India: Government to set up fund for banks’ stressed assets

Posted on 17 November 2015 by VRS  |  Email |Print

The government is looking to set up a special fund to tackle the issue of stressed assets. This is expected to be part of the National Investment and Infrastructure Fund (NIIF), which would be like India’s sovereign wealth fund. Although banks are seeing a slowdown in growth of fresh non-performing assets (NPAs), they are grappling with a huge pile of bad debt due to problems in certain companies and some sectors such as metals, and inability of several infrastructure projects to take off.
In an interview, minister of state for finance Jayant Sinha told TOI that the proposed special situations fund will deal only with projects that are viable and can be nursed back to health……………………………………….Full Article: Source

Oman India fund aims first close of second vehicle in Q1 2016

Posted on 17 November 2015 by VRS  |  Email |Print

The Oman India Joint Investment Fund is targeting to make the first close of its second fund in the first quarter of 2016, The Economic Times reported on Monday citing its CEO Srinath Srinivasan. The private equity firm sponsored by Oman’s sovereign wealth fund, State General Reserve Fund, and top Indian lender State Bank of India is looking to raise $300 million (Rs 1,980 crore) in its second outing, the report said.
Last year, the investment firm was reported to be eyeing $350 million for the second fund. An emailed query to the company on whether it has cut the fund size did not elicit any response till the time of filing this article………………………………………Full Article: Source

Sovereign wealth fund to begin operating in 2017

Posted on 12 November 2015 by VRS  |  Email |Print

The decision by the Knesset as part of the Sheshinski 2 bill has surprised the Bank of Israel, which expected the fund to operate from 2020. The target date for putting a sovereign wealth fund into operation has been advanced by three whole years as a result of the anticipated approval by the Knesset of the Sheshinski 2 bill for imposing an excess profits tax on the production of natural resources.
In recent months, the Bank of Israel has slowed its preparations for establishing the new fund, under the assumption that it would not be needed before 2020. It now appears, however, that the fund is slated to begin operating in 2017. The Knesset approved the sovereign wealth fund, officially called the Israeli Citizens Fund, in July 2014. The fund is scheduled to go into operation when the cumulative excess profits tax collected by the state reaches NIS 1.2 billion………………………………………..Full Article: Source

The Future Fund 2.0

Posted on 12 November 2015 by VRS  |  Email |Print

With its 10th birthday looming, the Future Fund is entering its next incarnation complete with a new investment team structure. When David Neal, the inaugural chief investment officer of the Future Fund, became its managing director on August 4 last year, his previous role was split in two. Long-time head of timberland and infrastructure Raphael Arndt became the chief investment officer responsible for leading the investment team in developing the research, due diligence and selection and monitoring processes for assets and investment managers.
Stephen Gilmore, previously the Future Fund’s head of investment strategy, became the chief investment strategy and risk officer. In doing so he took on additional responsibility for managing and monitoring total portfolio risk settings and continuing to focus on portfolio design, and understanding the macroeconomic and market environment. Both report to Neal………………………………………..Full Article: Source

The case for doing away with the Alberta Heritage Fund

Posted on 05 November 2015 by VRS  |  Email |Print

The Alberta oil & gas industry is down, the province’s unique tax advantage obliterated, and the detractors point to Norway and say “this could have been us!” Both Norway and Alberta are oil producers with sovereign wealth funds. Norway’s sovereign wealth fund is $1.1 trillion; Alberta’s is $17.3 billion at 2014 year end.
The assumption is that Norway has responsibly invested its windfall, whereas Alberta has not. This comparison is wholly unfair. As Professor Stephen Gordon argues, the Alberta Heritage Fund was set up in 1976 at a time when reserve life was numbered in decades. It was quite literally intended as a transfer of wealth from the present to the post-oil, near-future………………………………………..Full Article: Source

Nigeria’s $25bn infrastructure fund (Video)

Posted on 03 November 2015 by VRS  |  Email |Print

The Nigerian government recently announced plans to establish a 25 billion dollar infrastructure fund to develop the country’s road, rail and power infrastructure. According to the government, the fund will be set up with contributions from local and international sources including Nigeria’s sovereign wealth fund. CEO of the Infrastructure Bank, Adekunle Oyinloye joins CNBC Africa for more.……………………………………….Full Article: Source

Norway and MoF plan natural resource fund

Posted on 30 October 2015 by VRS  |  Email |Print

Norwegian experts suggested the idea several months ago and have since been collecting data, deputy finance minister U Maung Maung Thein told The Myanmar Times. Meanwhile, the finance ministry has formed a committee, he said.
A natural resource fund is a type of sovereign wealth fund – a special-purpose investment vehicle owned by a government, and financed by revenues from oil, gas or mineral sales. The money can be used in a number of ways including covering unexpected budget deficits, ring-fencing resource revenues or saving for future generations, according to non-profit Natural Resource Governance Institute (NRGI)………………………………………..Full Article: Source

Nigeria planning $25 bln infrastructure fund - official

Posted on 30 October 2015 by VRS  |  Email |Print

Nigeria plans to set up a $25 billion infrastructure fund to invest in the transport and energy sectors in Africa’s most populous nation, a spokesman for Vice President Yemi Osinbajo said on Thursday. Laolu Akande said money for the planned fund would come from local and international sources including Nigeria’s sovereign wealth fund and domestic pension funds.
“The vice president disclosed that other sovereign wealth funds have already indicated an interest in the fund, which would be used to address the nation’s decaying road, rail and power infrastructures,” said Akande………………………………………..Full Article: Source

Malcolm Turnbull wants sovereign wealth fund

Posted on 26 October 2015 by VRS  |  Email |Print

Australia should establish a sovereign wealth fund when the budget returns to surplus rather than spend all the extra money on tax cuts and middle-class welfare, as happened under the Howard government, Prime Minister Malcolm Turnbull says. The Prime Minister would not commit to a timetable for the budget to be out of deficit, saying only that Tony Abbott’s aspiration to have a strong surplus by 2023-24 was “a good goal”.
Turnbull said when growth returned to trend, the budget should be back in balance. “We certainly need to get the budget back to balance over the cycle,” he said. “When you talk about the budget being in balance over the cycle, when the business cycle is roaring ahead and the terms of trade are booming, you want to be running surpluses and putting money in the bank, preferably in a sovereign wealth fund………………………………………..Full Article: Source

New wealth fund pledged by city council contender

Posted on 22 October 2015 by VRS  |  Email |Print

A council leadership contender has vowed to create a regional sovereign wealth fund to invest in Birmingham businesses, housing and infrastructure. Coun John Clancy, who is front-runner in the battle to succeed Sir Albert Bore as leader, wants to “sweat” the council’s £5-£6 billion land and property assets to build and support jobs, economic growth and housing in the region.
In his detailed manifesto, he says: “This would use our physical asset base to generate capital spend in building housing and investing in business, jobs and infrastructure across all wards of the city, to generate economic growth city-wide. “We must use it to ensure thousands of affordable homes are built each year over the next decade in this city………………………………………..Full Article: Source

Work on Sovereign Wealth Fund to begin in November

Posted on 16 October 2015 by VRS  |  Email |Print

The coalition Government remains committed to the establishment of the Sovereign Wealth Fund as it believes that this is crucial for sustaining the economic growth and development of Guyana and securing the future of its people.
Minister of Governance Raphael Trotman on Wednesday informed the media that the Government is still working to establish this fund and the Canadian Government has offered assistance in this process………………………………………..Full Article: Source

Renzi revives Italy’s EUR410bn wealth fund

Posted on 12 October 2015 by VRS  |  Email |Print

The latest outpost of Matteo Renzi’s revolution is a smart conference room in Milan where two of Italy’s best-known bankers sit shoulder to shoulder. These are the new headquarters of the Cassa Depositi e Prestiti, the country’s €410bn sovereign wealth fund. The 40-year-old Italian prime minister is hoping to blow the dust off the 165-year-old CDP by bringing in Claudio Costamagna, former chairman of Goldman Sachs in Europe, and Fabio Gallia, who was chief executive of BNP Paribas in Italy, and giving them a free hand to spur investment.
“The mandate we’ve got is to do things that are in the context of creating and sustaining the growth of the economy,” says Mr Costamagna, 59, describing his arrival in August — and that of 52-year old Mr Gallia — as “an accelerator”………………………………………..Full Article: Source

Ex-Deutsche Banker Cai Raises $650 Million for China-German Fund

Posted on 09 October 2015 by VRS  |  Email |Print

Henry Cai, former Asia-Pacific chairman of corporate finance at Deutsche Bank AG, has raised $650 million for a new $1 billion private-equity fund that will invest in industrial companies in German-speaking countries seeking to grow their China operations.
The sovereign wealth fund China Investment Corp. and insurance companies are among the investors that have already committed funds, said Cai, 60. The AGIC Group fund should reach the target size of $1 billion by the end of the year, after a second round of capital raising among investors in the Middle East and Europe, Cai, the fund’s chairman, said in a telephone interview on Thursday………………………………………..Full Article: Source

India’s shaky ‘sovereign wealth fund’

Posted on 07 October 2015 by VRS  |  Email |Print

The investment division of the finance ministry has finally approved setting up of the National Investment and Infrastructure Fund (NIIF), initially proposed in the last Union Budget. The Fund is likely to be operational from the end of this year. Finance Minister Arun Jaitley in his recent visit to Singapore and Hong Kong pitched to the pension and wealth funds there to invest in the NIIF, touted to be India’s own version of a sovereign wealth fund (SWF).
The Fund will receive an initial allocation of INR20,000 crore as seed money, which, in turn, will be used to lend equity/quasi-equity/debt support to commercially viable green-field and brown-field infrastructure projects, including stalled ones………………………………………..Full Article: Source

Labour will set up a British ’sovereign wealth fund’ to make direct state investments

Posted on 29 September 2015 by VRS  |  Email |Print

A Labour government would set up a UK sovereign wealth fund so that the British state could invest directly in productive projects and create a return for taxpayers, the shadow chancellor has said. John McDonnell said the creation of the fund, which could be modeled on similar institutions in countries like Norway and Qatar, would help boost flagging long-term investment.
The pledge is in contrast to that of George Osborne, who on a recent trip to China encouraged foreign countries states to buy stakes in British infrastructure projects. Mr Osborne has indicated that the new HS2 rail line and nuclear power plants would be open to Chinese investors………………………………………..Full Article: Source

Swiss sovereign wealth fund idea ‘dangerous’

Posted on 29 September 2015 by VRS  |  Email |Print

An independent sovereign wealth fund would be economically and politically useful to Switzerland, UBS chief economist Andreas Höfert believes. However, a former UBS top manager has expressed serious reservations. “Sovereign wealth funds are an excellent means to exert influence,” UBS economist Andreas Höfert (pictured above) claims, in an interview with the NZZ am Sonntag (article in German) newspaper published on Sunday.
“A sovereign wealth fund could help Switzerland in the new negotiations on the bilateral accords.” To begin with, bold investment in foreign exchange reserves would weaken the franc, Höfert argued. The Swiss National Bank (SNB) already holds a part of its reserves abroad. But the bank is too hesitant on this score, says the UBS economist………………………………………..Full Article: Source

Taiwan needs a sovereign wealth fund

Posted on 28 September 2015 by VRS  |  Email |Print

Despite the dubious effect of the expansionary measures contained in the “program for boosting the economic strength” recently rolled out by Taiwan’s National Development Council due to the government’s financial shortfall and sluggish private investments, the proposal to study the setup a sovereign wealth fund in the program warrants serious consideration as it can generate extra capital to induce investment.
The idea of a sovereign wealth fund has long been a contentious topic. The program represents the first time for the proposal to be put on the government’s agenda, underscoring the awareness of the need for new conceptual approach for economic development………………………………………..Full Article: Source

Angola: New Board of Sovereign Fund Want to Boost Economic Diversification Process

Posted on 23 September 2015 by VRS  |  Email |Print

The new board of the Angolan Sovereign Wealth Fund (FSDEA), sworn in last Monday by the Finance minister, Armando Manuel, pledge to apply with efficiency the public finances, with a view to securing protection for future generations and boost the diversification process of the Angolan economy.
Speaking to the press, in Luanda, after the swearing-in ceremony, the chairman of the FSDEA José Filomeno de Sousa dos Santos, said that in the next three years of his mandate he will do his best for the fund to yield good results. “We want to achieve good results to improve the structure of the fund and make investments in several projects (… )”, said the source………………………………………..Full Article: Source

UK Sovereign wealth fund

Posted on 22 September 2015 by VRS  |  Email |Print

Boris Johnson, Mayor of London, upped the ante by declaring the combined schemes could form Britain’s first sovereign wealth fund. His hope is that a £180 billion “citizens’ wealth fund” would be capable of providing pensions for the UK’s ageing population, as well as plugging the country’s vast infrastructure spending gap. The schemes could save hundreds of millions of pounds a year in fees by merging, according to one academic, who adds: “We could build a lot of hospitals by doing this correctly.”
Edmund Truell, the veteran City dealmaker, has been enlisted by the mayor to persuade public pension funds to merge voluntarily. He has already been instrumental in encouraging the Lancashire and London local authority schemes to form a £10 billion partnership………………………………………..Full Article: Source

Namibia: Time Has Come for a Namibian Sovereign Wealth Fund

Posted on 21 September 2015 by VRS  |  Email |Print

In the face of self-aggrandisement in the national sectors that oversee our natural resources, particularly in the fishing and mining industries, it would be prudent for the Namibian government to introduce a new wave of economic transformation. This is particularly important now that the nation under the leadership of President Hage Geingob is determined to chart a new path of fiscal prudence and discipline in the management of national resources.
Of late, we have seen mud being slung from one end to the other between Bidvest and its beneficiaries on one hand, and Bernard Esau, Minister of Fisheries and Marine Resources on the other. The whole hullabaloo is because the minister wants to open up and make the Namibian fisheries sector more competitive and thereby increase its contribution to the Namibian economy………………………………………..Full Article: Source

Bangladesh central bank to mobilise $7 billion for infrastructure

Posted on 21 September 2015 by VRS  |  Email |Print

Bangladesh’s central bank plans to mobilise up to $7.0 billion to develop the country’s infrastructure and boost economic growth, its governor said.The bank would help reach that sum by establishing a sovereign wealth fund, issuing bonds and selling dollars from its reserves to designated banks and financial institutions, Governor Atiur Rahman told Reuters.
“It is possible to mobilise the fund for development of the infrastructure to accelerate economic growth to 8 percent from the present 6.5 percent, aiming to becoming a middle-income country by 2021,” he said. “The proposed sovereign wealth fund (SWF) can invite other SWFs to co-invest in infrastructure projects,” he added………………………………………..Full Article: Source

Qatar, Indonesia to ‘reactivate’ $1bn Joint Infrastructure Fund

Posted on 15 September 2015 by VRS  |  Email |Print

Qatar and Indonesia have decided to “reactivate” the $1bn Joint Infrastructure Fund (JIF), which is expected to fuel growth in infrastructure and energy projects between the two countries. Speaking to Gulf Times here yesterday, Indonesian Minister of Foreign Affairs Retno LP Marsudi said the JIF was first established in 2008 but was “shelved for a number of factors.”
She also said a high-level Qatar Investment Authority (QIA) delegation will visit Indonesia shortly to explore investment opportunities in the country. The JIF was among the focal issues discussed by HH the Emir Sheikh Tamim bin Hamad al-Thani and Indonesian President Joko Widodo……………………………………….Full Article: Source

Namibia: Tucna Calls for Creation of Sovereign Wealth Fund

Posted on 04 September 2015 by VRS  |  Email |Print

The Trade Union Congress of Namibia (Tucna) secretary general Mahongora Kavihuha has proposed the setting up of a sovereign wealth fund that uses revenue from the country’s mineral resources.Tucna is an umbrella body of over 15 affiliate unions, which together serve over 40 000 members throughout the country.
Speaking at a two-day media workshop attended by journalists from various media houses and representatives of various federation affiliates, in Windhoek, Kavihuha said there is a need for the creation of the fund with a special purpose vehicle to harness revenue from the country’s minerals. This, he said, would help with intergenerational and long-term social and economic investment………………………………………..Full Article: Source

Saudi Arabia needs to launch sovereign fund, invest wisely: Alkhabeer CEO

Posted on 04 September 2015 by VRS  |  Email |Print

Saudi Arabia needs to create a sovereign wealth fund to manage the oil windfall and rely on talented wealth managers to invest the funds, as this will help offset budget deficits, according to Ammar bin Ahmed Saleh Shata, CEO of Alkhabeer Capital. Speaking to Riyadh newspaper, Saleh said investing the reserves through a sovereign fund will help maintain the cash flow required to cover part of the state’s spending, and could cover budgetary deficits in case oil prices remain low.
He also suggested that the Saudi Arabian Monetary Agency (SAMA), the kingdom’s central bank, should not interfere in the creation and management of these funds, but should focus on stabilizing the currency rate exchange………………………………………..Full Article: Source

Saskatchewan urged to set up Sovereign Wealth Fund

Posted on 04 September 2015 by VRS  |  Email |Print

The province could save loads of money if they would set up a Sovereign Wealth Fund, more commonly known as a Heritage Fund. That from professor at the University of Saskatchewan’s Johnson-Shoyama Graduate School of Public Policy Greg Poelzer.
Poelzer says we need to start saving our oil revenue and revenue from other commodities and putting them into a fund of this kind. Norway is the worldly example of a place that uses a Heritage Fund. Poelzer says they have saved over 1 trillion dollars as a result………………………………………..Full Article: Source

African Nations Should Set Up More Sovereign Wealth Funds To Avert Economic Crisis

Posted on 02 September 2015 by VRS  |  Email |Print

Dr Akinwumi Adesina, the newly installed President of the African Development Bank (AFDB) has said that African country would have to set up more Sovereign Wealth Funds to help withstand the next downturn as a result of plunging commodity prices, Bloomberg Reports.
According to Adesina, “will allow countries to have fiscal buffers and liquidity buffers to this kind of shock.” He added that the current crisis is not the only one that would be experienced as “there’s still going to be a lot of disquiet in the market going forward.”……………………………………….Full Article: Source

Legacy Fund? Think Legacy Fund Initiative

Posted on 17 August 2015 by VRS  |  Email |Print

Good news: North Dakota lawmakers take the word “Legacy” in the state’s Legacy Fund seriously. At a forum in Bismarck this week, legislative leaders agreed that the fund should be allowed to keep growing, thus letting North Dakotans pass it down as a very real legacy to residents in 2040 and beyond.
The work even drew upon a fact-finding trip by North Dakotans to Norway, where the $900 billion in that country’s sovereign wealth fund makes it the biggest and most successful such fund in the world. The report by North Dakota’s Legacy Fund Initiative was a model of good governance and a fine example of the way these things should work……………………………………….Full Article: Source

Economist proposes creation of two sovereign wealth funds

Posted on 14 August 2015 by VRS  |  Email |Print

A former senior official at Saudi Arabia Monetary Agency (SAMA) says he believes the Kingdom may soon change the way it manages its oil wealth as part of efforts to protect its financial reserves in an era of cheap crude. The Saudi Arabian Monetary Agency (SAMA) manages the vast bulk of petrodollars earned by the world’s top oil exporting country; net foreign assets at the central bank totaled $664.5 billion in June.
Khalid Alsweilem, who managed the assets as chief investment officer at SAMA, argues the arrangement is dangerous because the Finance Ministry can draw freely on the reserves when it wants to cover budget deficits caused by periods of low oil prices………………………………………..Full Article: Source

A Swiss Sovereign Wealth Fund: Not such a smart idea

Posted on 12 August 2015 by VRS  |  Email |Print

After years of combating a strong franc, the Swiss National Bank (SNB) finds its foreign exchange coffers full, ready to burst. Unnoticed by many, in the last four years, Switzerland has crept into the ranks of the five countries with the largest currency reserves. Now there are calls from various political quarters for the SNB to use this money to create a sovereign wealth fund (SWF).
Is this a good idea? And is a SWF compatible with the SNB’s remit? According to the International Monetary Fund (IMF), sovereign wealth funds do not constitute state-owned enterprises (SOEs) – even though these can also invest in foreign companies – but are: “special investment funds created or owned by governments to hold foreign assets for long-term purposes”……………………………………….Full Article: Source

Egypt launches sovereign wealth fund as economy bites

Posted on 12 August 2015 by VRS  |  Email |Print

In June, Egypt’s cabinet formally approved plans for the country to establish a Sovereign Wealth Fund (SWF). According to Planning Minister Ashraf El-Araby, the fund is to be called Amlak, and will be state owned via the National Investment Bank. The SWF will also be tasked with running a number of state assets.
In the same month, Egypt’s Minister of Industry and Trade Mounir Fakhry Abdel Nour told Russian media that the Russian Direct Investment Fund and Arabian SWFs will play a role in establishing the fund. He added that the fund will be focused on communications, logistics and travel infrastructure in particular. Sovereign wealth fund experts are generally positive that Amlak could give Egypt’s economy a much-needed lift. ……………………………………….Full Article: Source

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