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How Realistic Is Saudi Arabia’s $2 Trillion Sovereign Wealth Fund?

Posted on 08 April 2016 by VRS  |  Email |Print

Though Saudi Arabia’s plan of a $2 trillion fund exudes power and confidence, raising a megafund of that size is practically next to impossible, unless crude oil prices see a significant appreciation or Saudi Arabia plans to sell a higher portion of Aramco.
The Saudi Deputy Crown Prince Mohammed bin Salman has outlined ambitious plans for the future of the Kingdom in his five-hour long interview with Bloomberg. He wants to reduce Saudi Arabia’s dependence on oil; however, there are numerous hiccups to his proposed plans………………………………………..Full Article: Source

Saudi prince wants world’s largest sovereign wealth fund

Posted on 07 April 2016 by VRS  |  Email |Print

In an interview with Bloomberg, Saudi Deputy Crown Prince Mohammed bin Salman said he is planning to transform the kingdom’s Public Investment Fund into a sovereign wealth fund billed as the largest on the planet. It will be a fund so large that the country will eventually rely more on investment income than oil income.
For decades, the world’s largest oil exporter has kept most of its wealth at the Saudi Arabian Monetary Agency, ignoring calls from economists at home and abroad to create a separate sovereign fund. But with the slump in crude prices, the status quo can remain no more………………………………………..Full Article: Source

Saudi Arabia plots major takeovers: GBP1.4TRN fund is big enough to buy Apple and Facebook

Posted on 05 April 2016 by VRS  |  Email |Print

Desperate Saudi Arabia is to create a £1.4TRILLION sovereign wealth fund to raise the cash needed to keep its economy afloat amid plunging profits from lower oil prices. The fund would be the largest in the world and could give the country the mechanism to buy - and control - some of the biggest companies in the globe, including Google, Apple and Facebook.
Cash for the fund is set to be raised by privatising state-owned oil company Saudi Aramco. The aim is to generate income from investments and away from oil, as the Kingdom undertakes the biggest economic reforms the country has ever seen. As part of the changes, Saudi is also set to slap citizens with more taxes and increase subsidy cuts………………………………………..Full Article: Source

Saudi Arabia is planning to create $2 trillion sovereign wealth fund

Posted on 04 April 2016 by VRS  |  Email |Print

Saudi Arabia is planning to create a $2 trillion sovereign wealth fund to reduce the country’s reliance on oil and fundamentally change its economy, according to Bloomberg.
In an interview with Bloomberg Saudi Deputy Crown Prince Mohammed Bin Salman said the fund, which would be the biggest in the world — easily eclipsing the funds of both Norway and Qatar — is designed to help the country’s economy rely less on oil. As part of fund’s creation, the kingdom will go ahead with an initial public offering of its state-run oil firm Aramco, selling no more than 5% of the company………………………………………..Full Article: Source

Why There’s Less To Saudi Arabia’s New $2 Trillion Wealth Fund Than Meets The Eye

Posted on 04 April 2016 by VRS  |  Email |Print

Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman (known to most people in the kingdom as MBS) has renewed his push to reform the Saudi economy, by announcing plans to create a $2 trillion sovereign wealth fund and part-privatize the national oil company Saudi Aramco within two years.
In an interview with Bloomberg, MBS also said Saudi Arabia will not freeze crude oil production unless other countries do so. Extensive interviews are a relatively rare phenomenon for Saudi leaders, so such public pronouncements are useful indicators of what the authorities in Riyadh are thinking………………………………………..Full Article: Source

Egypt to establish SWF with Arab investments

Posted on 29 March 2016 by VRS  |  Email |Print

Minister of Planning Ashraf El-Araby revealed that the government will establish a sovereign wealth fund to invest in infrastructure. The fund will be owned by the state with subsidiaries funds for different sectors, including agriculture, electricity, and industry. A number of Arab investment funds will participate with 50%.
Egypt launched its sustainable development strategy for 2030 in February. The strategy governs the economic development plans to achieve sustainability in partnership with the private sector and civil society, as well as many international organisations operating in Egypt, El-Araby said………………………………………..Full Article: Source

Forty years on, Adia continues to evolve and grow

Posted on 22 March 2016 by VRS  |  Email |Print

Abu Dhabi Investment Authority (Adia) said they made great strides in developing internal capabilities and increasing its internal flexibility to adapt to changing market conditions as the sovereign wealth fund celebrates its 40 years existence.
In an open letter on Monday, Managing Director of Adia, Shaikh Hamed Bin Zayed Al Nahyan said the institution has witnessed much in its history, from market booms to steep declines, and wide swings in commodity prices. “The responsibility we hold requires us to navigate with a steady hand through all conditions, never losing sight of the horizon. This ensures we are able to fulfil our obligations at all times, without compromising our long term investment goals or reputation in the market,” he said………………………………………..Full Article: Source

ADIA at 40: Sovereign wealth fund has really safeguarded the Emirate, says Eissa Al Suwaidi

Posted on 22 March 2016 by VRS  |  Email |Print

When the Abu Dhabi Government was looking for experienced leaders such as Eissa Al Suwaidi for its newest sovereign wealth fund in 2007, it looked no further than the Emirate’s biggest pool of financial talent: the Abu Dhabi Investment Authority (Adia).
Mr Al Suwaidi joined the Abu Dhabi Investment Council, Adia’s sister fund and main domestic peer, at its creation and became its managing director last year. Like many of the chiefs of Abu Dhabi and UAE institutions, including the Central Bank, the top echelons of the financial elite are graduates of Adia………………………………………..Full Article: Source

Norwegian National Oil Fund: A sovereign wealth fund to emulate

Posted on 22 March 2016 by VRS  |  Email |Print

Pragmatic economic management of Norway’s oil wealth has ensured that future generations will benefit from the wisdom and incorruptibility of their ancestors. Stavanger is perhaps the epitome of the economic transformation of Norway.
A sleepy fishing town, Stavanger once had good times, a decades-long boom in herring fishing, which ended suddenly with plunging catches after 1870. Like the rest of Norway, the town collapsed, with a huge fleet of wooden sailing ships and an agricultural economy. And in comparison to its industrialising neighbours, Norway was being left behind………………………………………..Full Article: Source

Not All Carnival In Trinidad & Tobago

Posted on 21 March 2016 by VRS  |  Email |Print

Should Prime Minister Andrew Holness desire vindication for his promise to honour Jamaica’s agreement with the International Monetary Fund (IMF), including the programme of fiscal consolidation, he might look to Trinidad and Tobago (T&T), the English-speaking Caribbean’s economic powerhouse, where the Fund has just completed its annual Article IV consultation on the country’s economy.
The positive news of the Port-of-Spain government is that the country has foreign reserves of around US$9.6 billion. There is another US$5.6 billion in sovereign wealth fund - the Heritage and Stabilisation Fund - the kind of investment that Jamaica was expected to make when it imposed its bauxite levy but was mostly consumed in general spending………………………………………..Full Article: Source

Commonwealth makes proposal on Sovereign Wealth Fund

Posted on 17 March 2016 by VRS  |  Email |Print

The Commonwealth Secretariat made a proposal to the Guyana Government on the establishment of a Sovereign Wealth Fund (SWF) which puts Parliament at the apex of its management.
A release from the Ministry of the Presidency said that Minister of Natural Resources, Raphael Trotman along with Finance Secretary, Dr. Hector Butts and other officials from the Finance Ministry and the Guyana Revenue Authority (GRA), met with Economic Adviser at the Oceans and Natural Resources Division of the Commonwealth Secretariat, Dr. Daniel Wilde who proposed a model for Guyana’s SWF………………………………………..Full Article: Source

Infrastructure Giants Line Up For New UK Fund

Posted on 16 March 2016 by VRS  |  Email |Print

Some of the world’s most successful infrastructure investors have been lured to spearhead a new British vehicle created from billions of pounds of local government and public sector pension funds. British Infrastructure Club (BIC)‎, which will seek to replicate the track record of leading state-backed investment funds, will be headed by Graeme Bevans, the architect of Canada Pension Plan Investment Board’s (CPPIB) infrastructure wing.
he Mayor of London has been a staunch advocate of the creation of a UK sovereign wealth fund with sufficient firepower to invest in British transport, housing and other critical national infrastructure………………………………………..Full Article: Source

Taiwan’s government keen to establish a stated-owned investment vehicle

Posted on 10 March 2016 by VRS  |  Email |Print

Taiwan’s president-elect, Tsai Ing-wen, is reportedly looking to establish a state-owned investment entity as a means of propelling local innovative industries. Capital for the fund is expected to be raised from local pensions, local sovereign funds and insurance funds.
Ms. Tsai’s financial adviser, Kung Ming-hsin, told local media that the new government would be the entity’s largest shareholder with holdings of about 50%, while local and foreign investors will hold the remainder. Mr. Kung explained that a stated-owned investment vehicle was preferred over a sovereign wealth fund because the latter’s threshold is considered to be too high at amounts of between US$20 billion and $30 billion………………………………………..Full Article: Source

Taiwan: Tsai mulling wealth fund

Posted on 07 March 2016 by VRS  |  Email |Print

The incoming administration is moving to establish a new quasi-sovereign wealth fund with local and overseas cash to finance emerging industries, a top adviser to president-elect Tsai Ing-wen said.
According to a plan she is considering, the government would be the largest shareholder in the fund, with ownership at less than 50 percent, while the rest would be comprised of local and foreign investors, said Kung Ming-hsin , Tsai’s top adviser on industry policy. The fund would help nurture the development of key industries such as biotechnology and smart machinery, Kung said………………………………………..Full Article: Source

Care needed for sovereign fund plan

Posted on 07 March 2016 by VRS  |  Email |Print

Economic policy advisers to president-elect Tsai Ing-wen have been discussing the possibility of setting up a state-level investment corporation to promote, manage and finance certain industrial concerns, including semiconductors.
In an interview last week with Bloomberg News, Taiwan Institute of Economic Research vice president Kung Ming-hsin — Tsai’s top adviser on industry policy — touched upon the subject, saying that Tsai’s team is considering establishing a quasi-sovereign wealth fund to finance emerging industries………………………………………..Full Article: Source

Osborne unveils sovereign wealth fund

Posted on 07 March 2016 by VRS  |  Email |Print

George Osborne will announce the creation of a £100bn British sovereign wealth fund next week and lay out plans to part-privatise Britain’s rail network. In his budget on March 16 the chancellor, who has struggled to find finance for new road, rail and power schemes, is expected to hail the progress of a scheme to merge council pension funds.
Six local authority funds with assets of £50bn have agreed to join forces, with another four due to sign up later this year to double the available firepower. The plan has been masterminded by the City financier Edmund Truell………………………………………..Full Article: Source

Taiwan’s Tsai mulls new quasi-sovereign fund to boost industries

Posted on 04 March 2016 by VRS  |  Email |Print

Taiwan’s incoming administration is moving to establish a new quasi-sovereign wealth fund with local and overseas cash to finance emerging industries, according to a top adviser to President-elect Tsai Ing-wen.
Under a plan she is now considering, the government will be the largest shareholder in the fund with ownership below 50 per cent, while the rest will be comprised of local and foreign investors, said Kung Ming-Hsin, Ms Tsai’s top adviser on industry policy. The fund will help nurture the development of key industries such as biotechnology and smart machinery, he said………………………………………..Full Article: Source

Sabah setting up sovereign wealth fund

Posted on 01 March 2016 by VRS  |  Email |Print

Sabah is looking to develop its own sovereign wealth fund — Sabah Development Bhd — in the fashion of Khazanah Nasional Bhd, which is wholly owned by the federal government, sources say. It is understood that the final details — such as what assets will be injected into the entity — are being discussed now, and the plan has been gestating for more than a year.
“The plan is for the Ministry of Finance of Sabah to control the entity. The initial plan [involves Sabah Development having] a presence in a few sectors such as oil and gas, financial services and infrastructure, and possibly even one unit conducting strategic investments,” a source says………………………………………..Full Article: Source

Malaysian 1MDB scandal: What you need to know about corruption probe rocking global finance

Posted on 18 February 2016 by VRS  |  Email |Print

What does 1MDB stand for and when was it set up? It stands for 1 Malaysia Development Berhad. “Berhad” is a Malay word meaning “private” and is used to describe a limited company in Malaysia.
It was created as a sovereign wealth fund in 2009, not long after Nijib Razak became Malaysia’s prime minister. The government said it was set up to promote economic development, to promote foreign direct investment and to turn Kuala Lumpur into a global financial hub………………………………………..Full Article: Source

Arun Jaitley invites UAE to invest in India’s wealth fund NIIF

Posted on 11 February 2016 by VRS  |  Email |Print

Seeking investments from the UAE, Finance Minister Arun Jaitley on Wednesday said investors from the Gulf region could participate in India’s maiden sovereign wealth fund NIIF, which has been set up to fund infrastructure projects.
This was emphasised by Jaitley during his meeting with the visiting UAE Minister of Economy Sultan Al Mansoori here. Both the countries also stressed on need for increasing cooperation in the fields of innovation and small and medium enterprises, a finance ministry statement said………………………………………..Full Article: Source

Public gets say on sovereign wealth fund

Posted on 09 February 2016 by VRS  |  Email |Print

Residents soon will have the opportunity to voice their opinions on plans for the establishment of a sovereign wealth fund (SFW). The fund is aimed creating a mechanism for future budgetary surpluses that will ensure future economic prosperity of the Turks and Caicos Islands.
According to Premier Rufus Ewing further consideration, to a draft paper for wider consultation to establish a SWF for the TCI, will commence shortly. The Premier who was speaking at a recent press conference said the public will have the chance to give their comments on the development of the fund………………………………………..Full Article: Source

UK: Create Sovereign Wealth Fund for Renewables Support, Calls Industry

Posted on 05 February 2016 by VRS  |  Email |Print

For renewables to be a commercial success and a sustained contributor to the UK’s energy mix, subsidy support needs to be delivered by the creation of a Sovereign Wealth Fund, agreed key stakeholders at a roundtable event hosted by environmental PR specialist, Prova.
Continual change and uncertainty surrounding renewables policy has seen clean energy investment stall in the UK. However, such technology plays a vital role in our national energy mix, particularly in terms of providing security against a fractious global market and achieving the low carbon future envisioned at the recent Paris COP………………………………………..Full Article: Source

Temasek arm expects to build Rs 6,000 crore mortgage book in India

Posted on 05 February 2016 by VRS  |  Email |Print

Fullerton India Credit Co Ltd (FICCL), an arm of Singapore’s state-run investment fund Temasek Holdings expects to build a Rs 5,000 crore to Rs 6,000 crore mortgage book in India in the next five years by lending to people in small towns and villages.
On Wednesday, the non banking finance company (NBFC) launched ‘Grihashakti’ through a subsidiary Fullerton India Home Finance which will lend to individuals to buy homes, refurbish houses and raise money against property. FICCL will invest Rs 100 crore in the new venture initially, the company had said in May 2015………………………………………..Full Article: Source

Jaitley to launch India’s first sovereign wealth fund on Feb 4

Posted on 26 January 2016 by VRS  |  Email |Print

The ‘ 40,000-crore National Investment and Infrastructure Fund (NIIF), India’s own sovereign wealth fund, will be launched on February 4 by finance minister Arun Jaitley, sources said. The launch, expected to be a grand event spread over two days, will showcase the specific infrastructure needs of different states.
A few of these projects would be identified for investment. Several domestic, and international infrastructure companies, lenders and sovereign wealth funds, from countries such as Japan, UAE, China, and Australia etc are expected to be present at the launch. The sovereign wealth fund would invest in greenfield, brownfield and stalled projects, which are commercially viable………………………………………..Full Article: Source

Kuwait Plans $100 Billion Sovereign Fund

Posted on 25 January 2016 by VRS  |  Email |Print

Kuwait plans a new state-owned fund to manage as much as $100 billion in local assets with the goal of selling them to private investors in five to seven years, Al-Anba newspaper reported.
The new sovereign wealth fund will include local assets managed by Kuwait Investment Authority, which has been burdened by its domestic mandate and will focus more on its international portfolio, Al-Anba reported, citing unidentified officials. Stakes in local companies, as well as power and water projects, will be included in the new fund, it said………………………………………..Full Article: Source

Birmingham push for West Midlands sovereign wealth fund

Posted on 20 January 2016 by VRS  |  Email |Print

The new leader of Birmingham city council wants to create a “West Midlands sovereign wealth fund” that will invest the region’s public sector pension funds in new homes and infrastructure.
John Clancy, elected at the end of November, said he wanted to take the £11bn West Midlands local government pension fund, the third-largest local authority fund in the UK, and pour it into Birmingham and the surrounding region. “I want to anchor those funds better into the region by investing that wealth in the region,” said Mr Clancy……………………………………….Full Article: Source

Saudi Arabia plans new sovereign wealth fund

Posted on 15 January 2016 by VRS  |  Email |Print

Saudi Arabia plans to create a new sovereign fund to manage part of its oil wealth and diversify its investments, and has asked investment banks and consultancies to submit proposals for the project, according to people familiar with the matter.
Plunging oil prices have strained Saudi Arabia’s finances. The kingdom’s state budget deficit is at a record high and net foreign assets dived more than $100 billion in 15 months. The new fund could change the way tens of billions of dollars are invested and affect some of the world’s leading asset managers, particularly in the United States, where the bulk of Saudi Arabia’s foreign assets are managed………………………………………..Full Article: Source

SNB’s Jordan opposes sovereign Swiss fund

Posted on 12 January 2016 by VRS  |  Email |Print

Swiss National Bank President Thomas Jordan opposes the creation of a sovereign fund with a share of the 560 billion Swiss francs ($559.33 billion) that the central bank has invested, according to an interview he gave to Swiss television station SRF that was published on Monday on its Internet site.
“That’s not a good idea,” Jordan told the Swiss television programme ECO. “I hardly think such a sovereign fund could produce greater returns than those we are already achieving.” For one, Switzerland’s money is already invested, he said. Additionally, Jordan said such a sovereign wealth fund for Switzerland, such as Norway has created with money from its significant oil reserves, would do nothing to weaken the Swiss franc against the euro………………………………………..Full Article: Source

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

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