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

Oil fund is complete con, says energy minister

Posted on 27 June 2014 by VRS  |  Email |Print

The SNP Government’s plan for an oil fund in an independent Scotland is a “complete con”, Ed Davey has insisted. The claim came as the Energy Secretary visits Scotland today to promote the UK Government’s renewable energy plans and announce an additional £50 million to clean up nuclear waste at Dounreay in Caithness.
Last month, John Swinney made clear the Scottish Government could set up a Norwegian-style oil fund from “the point of independence” and secure an “economic bonus”, which could be delivered only by breaking away from the UK. The Scottish Finance Secretary noted that Norway’s oil fund, which began in the mid-1990s “with only modest payments”, was now the world’s largest sovereign wealth fund worth more than £500 billion………………………………………..Full Article: Source

Zimbabwe: Delay setting up sovereign fund: IMF

Posted on 26 June 2014 by VRS  |  Email |Print

The International Monetary Fund is recommending that Government delays the introduction of the Sovereign Wealth Fund saying it will add more fiscal stress to already strained accounts as the institution warned that fiscal under-performance remains the highest risk facing the economy.
In the full Article IV Concluding Statement seen by this paper, the IMF directors recommended delaying the introduction of the Sovereign Wealth Fund. “Although such a mechanism might be helpful over the medium term, the present situation of fiscal stress requires that the Government avoid imposing on itself new administrative and managerial challenges. The mission encourages the authorities to re-examine the fiscal regime for extractive industries before launching any SWF.”……………………………………….Full Article: Source

The Nigerian SWF

Posted on 18 June 2014 by VRS  |  Email |Print

Sovereign Wealth Funds (SWF) are state-owned investment funds typically (though not exclusively) funded through revenues from commodity exports or foreign exchange reserves held by central banks which invest in real and financial assets-stocks, bonds, real estate, infrastructure, precious metals or alternative investments such as private equity and hedge funds.
The term “sovereign wealth fund” was reportedly first used in 2005 by one Andrew Rozanov in an article titled, “Who Holds the Wealth of Nations?” in Central Banking Journal, even though such funds have existed for over a century. The number of SWFs has however dramatically increased in the 2000s………………………………………..Full Article: Source

Saudi’s Shoura Council Debates Sovereign Wealth Fund Plan

Posted on 12 June 2014 by VRS  |  Email |Print

A proposal to set up a Saudi Arabian sovereign wealth fund attracted debate at a meeting of the Kingdom’s influential Shura council advisory body but failed to yield a result. A report by the council’s financial committee has said the National Reserve Fund, which would invest part of the Kingdom’s vast hydrocarbon wealth, would build on its financial stability.
Details of its investment strategy have yet to be disclosed publicly, but if the proposed fund is run like the sovereign wealth funds of other wealthy Gulf states such as Qatar and Abu Dhabi, it could mean a change in the way Saudi money flows through global markets………………………………………..Full Article: Source

China Sovereign Fund Managing Director Said to Plan Fund

Posted on 11 June 2014 by VRS  |  Email |Print

Yu Bin, a former managing director at China’s sovereign wealth fund, plans to start a fund focused on Greater China equities, said three people with knowledge with the matter.
Yu resigned from Beijing-based China Investment Corp., also known as CIC, earlier this year for personal reasons, said the people, who asked not to be identified as the information is private. He will remain based in China and his long-biased fund will primarily bet on stocks whose prices are expected to rise, they said………………………………………..Full Article: Source

Saudi Arabia Planning Second Sovereign Fund

Posted on 11 June 2014 by VRS  |  Email |Print

Saudi Arabia is planning to launch a second sovereign wealth fund to invest its budget surplus, according to Arabian news sources. The country’s central bank, the Saudi Arabian Monetary Agency (SAMA), currently invests money generated by oil exports in an existing sovereign wealth fund, SAMA Foreign Holdings.
The strength of Saudi Arabia’s oil industry has helped grow this portfolio to be the third largest sovereign wealth fund in the world, behind those of Norway and Abu Dhabi………………………………………..Full Article: Source

Saudi mulls sovereign wealth fund

Posted on 10 June 2014 by VRS  |  Email |Print

Saudi Arabia’s Shura Council, an influential advisory body to the government, will discuss a proposal for the country to establish a sovereign wealth fund that would invest some of its vast oil earnings, local media reported.
The National Reserve Fund would “guarantee the financial stability of the kingdom” by investing its reserves, Saad Mareq, head of the council’s financial committee, was quoted as telling the pan-Arab Asharq al-Awsat daily on Saturday………………………………………..Full Article: Source

Saudi Arabia considers separate sovereign wealth fund

Posted on 09 June 2014 by VRS  |  Email |Print

Saudi Arabia is preparing to launch its first sovereign wealth fund to manage budget surpluses from a rise in crude prices estimated at hundreds of billions of dollars, state media reported Saturday. The central bank has managed investment of the kingdom’s foreign currency reserves until now, much of it in US Treasury bonds.
The consultative Shura Council is due to discuss a draft law for the National Reserve Fund in meetings Monday and Tuesday in Riyadh, state news agency SPA reported. The report gave no indication of whether any change in investment strategy was envisioned………………………………………..Full Article: Source

Restructuring Libya’s SWF

Posted on 06 June 2014 by VRS  |  Email |Print

The outlook for Libya is grim as it slides further into anarchy, but the African Development Bank believes that one promising area is the country’s formidable financial resources and a sovereign wealth fund that could be leveraged to help the economy.
In a recent report on Libya, the African Development Bank looked to “re-engage” with the country to seek a better understanding of economic and political developments amid political instability, threats to the survival and legitimacy of the state, and regional tensions over control of country’s rich natural resources………………………………………..Full Article: Source

Saudi Kingdom and sovereign wealth funds

Posted on 03 June 2014 by VRS  |  Email |Print

The increase in Saudi Arabian Monetary Agency’s (SAMA’s) net foreign assets to a record high of SR2.732 trillion in April shows the level of growth in the monetary system accelerated in tandem with the fiscal expansionary policy.
The challenge with using central bank assets for driving economic development is the fact they typically have to be held in liquid, relatively low-risk assets. The best example globally is US Treasuries — a large, deep, liquid market. The range of comparable assets in Saudi Arabia is limited. Part of the challenge here is the underdevelopment of the fixed income market and the near-absence of secondary trading………………………………………..Full Article: Source

Mozambique wants to do investment differently

Posted on 02 June 2014 by VRS  |  Email |Print

Mineral-rich Mozambique is considering the establishment of a sovereign wealth fund, the country’s finance minister said. “We think it’s a good idea,” Manuel Chang told AFP on the sidelines of an International Monetary Fund (IMF) conference on Africa.
“But we won’t do what others have done,” he added, suggesting Mozambique would not rush into creating the fund given other pressing demands that will require huge injections to fix, such as the infrastructure. An estimated $10-billion in foreign investments are expected to flow into the southern African country once a natural gas processing plant is built on its northern coast…………………………………..Full Article: Source

Mozambique plans sovereign wealth fund

Posted on 30 May 2014 by VRS  |  Email |Print

Mineral-rich Mozambique is considering the establishment of a sovereign wealth fund, the country’s finance minister said Thursday. “We think it’s a good idea,” Manuel Chang said“But we won’t do what others have done,” he added, suggesting Mozambique would not rush into creating the fund given other pressing demands that will require huge injections to fix, such as the infrastructure.
An estimated $10 billion in foreign investment are expected to flow into the southern African country once a natural gas processing plant is built on its northern coast. Mozambique’s reserves are believed to be the world’s third largest………………………………………..Full Article: Source

Little Sovereign Wealth Fund on the Prairie

Posted on 30 May 2014 by VRS  |  Email |Print

North Dakota is enjoying a flood of biblical proportions. Shale-drilling technology has liberated huge quantities of oil from the Bakken shale in the western part of the state. Production has surged from about 100,000 barrels per day in 2007 to nearly 1 million barrels per day this year—a tenfold increase.
But North Dakota, America’s latest petro-state, is handling its newfound wealth with the kind of modesty you might expect in a land where people live in giant open spaces and at the mercy of nature. Decades of boom and bust in agriculture have forged a culture of thrift, an abhorrence of debt, and a healthy mistrust of high finance. Alone among the 50 states, North Dakota has a state-owned bank. It never had much of a housing and credit boom, so it never had much of a housing bust………………………………………..Full Article: Source

Sovereign fund not a quick fix for SA

Posted on 27 May 2014 by VRS  |  Email |Print

Many countries have set up government-owned sovereign wealth funds to accelerate their investment potential, but such a move is unlikely to be a silver bullet for South Africa’s own growth ills.
These funds are state investment vehicles that hold and manage or administer large pools of public funds. But for such funds to be effective, money must come from somewhere, and South Africa does not stand out as a powerful candidate due to its trade and fiscal deficits, lack of privatisation and slow resource exports………………………………………..Full Article: Source

New €125m fund to boost innovative firms

Posted on 22 May 2014 by VRS  |  Email |Print

A new $172m (€125m) venture capital fund has been set up to aid innovative companies to grow and create jobs in Ireland. Firms in the life-sciences sector can apply for the funding, which includes a €20m investment from Enterprise Ireland and a commitment of €10m from the National Pensions Reserve Fund (NPRF).
Leading US-based Lightstone Ventures – which has opened a new office in Dublin – raised the fund, which is backed by the Department of Jobs and Enterprise Ireland…………………………………….Full Article: Source

Ghana’s $450 million petroleum funds rated high in governance assessment

Posted on 21 May 2014 by VRS  |  Email |Print

The natural resource funds that the Ghanaian government uses to manage oil revenues have been adjudged to be relatively well-governed. The Revenue Watch Institute, a New York-based NGO with an office in Accra, in its recently released research, indicated that the Ghana Petroleum Funds met 13 of 16 good governance fundamentals. Researchers concluded that the funds feature clear deposit, withdrawal and investment rules, effective oversight, and other essential attributes of good governance.
“Together, the Ghana Stabilisation Fund and the Ghana Heritage Fund manage more than $450 million,” said Emmanuel Kuyole, Africa regional coordinator for Revenue Watch. “Thanks to strong legal provisions, citizens have information on how much is deposited, invested and earned. This transparency is a significant gain. Too much sunshine does not spoil anything.”………………………………..Full Article: Source

Govt pledges novel fund for natural gas

Posted on 19 May 2014 by VRS  |  Email |Print

The government reaffirmed its commitment to establishing a natural gas Sovereign Wealth Fund (SWF) after charged debate over delays to table the natural gas act in parliament. Energy and Minerals Deputy Minister Stephen Masele told the National Assembly that the upshot for establishing the fund was to stabilize the country’s micro-economic growth, restore natural gas profits for current and future generations as well as diversify funds for other development projects.
The deputy minister said the fund which will be under the Central Bank would also actively control the country’s macro-economic growth. Masele who spoke in response to a question raised by Igalula MP Athuman Mfutakamba (CCM) said the government was to enact legislations to oversee the Fund…………………………………..Full Article: Source

Economist Touts Sovereign Fund For Bauxite Earnings

Posted on 19 May 2014 by VRS  |  Email |Print

Economist Dennis Morrison says Jamaica should consider developing a sovereign wealth fund seeded by bauxite royalties and taxes, should the sector regain vibrancy. His suggestion comes against the background of the dissipation of US$4 billion in earnings from the Bauxite Production Levy garnered over its 40 years without any real legacy projects to show for it. The levy was created in 1974.
Morrison said bauxite remains Jamaica’s best bet for the creation of a sovereign wealth fund out of which sustainable capital projects can be pursued. Panama is among the countries to have recently gone that route. It created a sovereign fund to provide the Panamanian government with an investment vehicle to manage the country’s surpluses…………………………………..Full Article: Source

Cyprus finance ministry to publish SWF framework this year

Posted on 12 May 2014 by VRS  |  Email |Print

Cyprus took a step closer to establishing a sovereign wealth fund (SWF), after finance minister Harris Georgiades told this year’s Mediterranean Oil and Gas Conference that he would submit a framework for the institution by the end of the year. The Cypriot authorities pledged to set up a ‘resource fund’ in a memorandum of understanding (MoU) with the International Monetary Fund (IMF) last year – one of many reforms deemed necessary to “rearrange” the country’s energy sector.
There are significant untapped gas deposits below the Levantine Sea, and Cyprus is preparing for a windfall if they can be exploited. Noble Energy, a Texan company exploring the region, estimates there are five trillion cubic feet of gas in one particular field, known as ‘Block 12′………………………………………..Full Article: Source

A wealth fund via PSU participation to promote India growth

Posted on 12 May 2014 by VRS  |  Email |Print

The big idea is to set up a trillion-dollar sovereign wealth fund created out of the shareholding of public sector undertakings to put India back on the path of high growth and development.
In 2013-14, the government’s disinvestment program too was a failure having raised only 3 percent of the Rs 40,000 crore target through disinvestment of public undertakings. With the government refusing to give up its iron grip on poorly performing PSUs we are suggesting a middle path……………………………………….Full Article: Source

Use QE funds to create UK sovereign wealth fund

Posted on 12 May 2014 by VRS  |  Email |Print

The Bank of England has bought some £375bn of government bonds (gilts) under QE, equal to £6,000 for every person in the country. These bonds could be sold off and the proceeds used to establish a UK sovereign wealth fund aimed at financing UK infrastructure projects. As our release last week showed, QE has failed to stimulate investment.

£375bn could pay for HS2 and a new London airport 4 times over. Alternatively it could finance the building of 2 million new homes. It is equal to the entire infrastructure pipeline outlined in the National Infrastructure Plan of March 2014. Globally, there is over $6 trillion invested in sovereign wealth funds. The largest fund is Norway’s which has over $800bn invested, $170,000 for every man, woman and child in Norway………………………………………..Full Article: Source

The fascinating business empire behind Temasek Holdings

Posted on 23 April 2014 by VRS  |  Email |Print

Temasek is one of the world’s largest sovereign wealth funds with assets of more than S$200 billion and investments in over six continents. Temasek’s investments are classified under five different categories: 1) Financial services; 2) Telecommunication, media, and technology; 3) Transportation and industrials; 4) Life sciences, consumer, and real estate; and 5) Energy and resources.
Shipping, airlines, defence, power generation – you name it, Temasek has it. In Singapore, the fund’s most notable investment in this space is Keppel Corporation, which by itself is a huge conglomerate with business interests in shipbuilding, rig-building, construction, and property development among others………………………………………..Full Article: Source

Tanzania: Sovereign wealth fund comes aboard in October

Posted on 23 April 2014 by VRS  |  Email |Print

The government is formulating legislation for the establishment of a Sovereign Wealth Fund in a bid to manage the proceeds from natural gas. The upshot is ensuring that the resource benefits current and future generations, President Jakaya Kikwete has said.
The president has revealed that the government would by October, this year or February, next year, move a Bill in the National Assembly for establishment of the fund. The country has so far discovered 43.1 trillion cubic feet (tcf) of natural gas in offshore and onshore gas fields and exploration is still ongoing………………………………………..Full Article: Source

Taiwan SWF moves a step closer

Posted on 22 April 2014 by VRS  |  Email |Print

Taiwan’s move to merge the investment activities of its four main public pension funds has renewed speculation that the country plans to set up a sovereign wealth fund.
The four schemes, which have combined assets of some $100bn, have been dogged by performance issues. They will now be managed by a single investment department under the stewardship of the revamped Bureau of Labor Funds………………………………………..Full Article: Source

Tanzania: Sovereign wealth fund comes aboard in October

Posted on 22 April 2014 by VRS  |  Email |Print

The government is formulating legislation for the establishment of a Sovereign Wealth Fund in a bid to manage the proceeds from natural gas.The upshot is ensuring that the resource benefits current and future generations, President Jakaya Kikwete has said.
The president has revealed that the government would by October, this year or February, next year, move a Bill in the National Assembly for establishment of the fund.The country has so far discovered 43.1 trillion cubic feet (tcf) of natural gas in offshore and onshore gas fields and exploration is still ongoing………………………………………..Full Article: Source

Sovereign wealth fund a well thought idea

Posted on 22 April 2014 by VRS  |  Email |Print

Tanzania will soon establish a sovereign wealth fund (SWF) to safeguard, monitor and safeguard proceeds from the country’s natural resources, especially natural gas. President Jakaya Kikwete revealed the government plans on the proposed fund during talks with editors of various media houses in Dar es Salaam recently.
He rightly underscored the importance of the proposed fund in managing proceeds from the country’s vital resources for the benefit of the current and future generations………………………………………..Full Article: Source

Zimbabwe: A sovereign wealth fund is critical to development

Posted on 16 April 2014 by VRS  |  Email |Print

In the Zimbabwe we want, a Sovereign Wealth Fund must be managed as the country’s endowment to future generations. It is not a fund to be plundered by government and used to meet current needs, but a savings account that must accumulate over time and be used to meet future developmental needs.
The Sovereign Wealth Fund can only be viable where there is disciplined fiscal management and there is no temptation to use that money for recurrent expenditure. In a country such as Zimbabwe there exists a huge probability of abuse of a Sovereign Wealth Fund to meet current revenue gaps………………………………………..Full Article: Source

The Zimbabwe we want - A sovereign wealth fund is critical to development

Posted on 15 April 2014 by VRS  |  Email |Print

In the Zimbabwe we want, a Sovereign Wealth Fund must be managed as the country’s endowment to future generations. It is not a fund to be plundered by government and used to meet current needs, but a savings account that must accumulate over time and be used to meet future developmental needs.
We all know that the mining and other resources of a country cannot be replenished. It is therefore important that we save the income generated from those depleting resources now for the future. The fund can also be used to replenish the resource industry in the future and replace industries………………………………………..Full Article: Source

Malaysia: Time for a sovereign fund derived from O&G?

Posted on 14 April 2014 by VRS  |  Email |Print

The question of whether Malaysia should have a sovereign wealth fund derived from its natural resources is one that has been raised many times. The government has been using revenue derived from the country’s natural resources – in particular dividends from the nation’s oil and gas (O&G) company Petroliam Nasional Bhd (Petronas) – for development.
O&G-producing nations like Norway, the United Arab Emirates (UAE), the United States, Russia, Algeria and Kazakhstan have set up their own sovereign wealth funds derived from the sector………………………………………..Full Article: Source

Codelco plans expansion via sovereign wealth fund

Posted on 14 April 2014 by VRS  |  Email |Print

Chile is betting on the expansion of state-owned copper producer Codelco, and may turn to its sovereign wealth fund to finance the investment, even as metal prices and economic growth approach four-year lows.
Gross domestic product will expand about 3.5 per cent this year, Deputy Finance Minister Alejandro Micco forecast, the first estimate by President Michelle Bachelet’s government that came to office March 11………………………………………..Full Article: Source

Kenya: Wealth fund established before mineral exploration

Posted on 04 April 2014 by VRS  |  Email |Print

The country has begun plans to set up a sovereign wealth fund ahead of the major commercial production and export of oil and other minerals. This development puts Kenya among other peers in Africa such as Botswana, Nigeria and Ghana, which all have sovereign wealth funds in line with their established mineral and oil commercial production.
“Kenya is however in a unique position owing to the fact that it is establishing its fund ahead of commercialization of the mineral commodities. “We are setting up a sovereign wealth fund prior to exploration of natural resources,” said Dr Mbui Wagacha, Chairperson, Board of Central Bank of Kenya………………………………….Full Article: Source

Kenya will create sovereign wealth fund before crude output

Posted on 03 April 2014 by VRS  |  Email |Print

Kenya plans to set up a sovereign wealth fund to invest revenue from future output of oil that Tullow Oil Plc (TLW) and Africa Oil Corp. (AOI) expect to start pumping as soon as 2016, central bank Chairman Mbui Wagacha said.
The country’s attorney general is “fine-tuning” a draft framework for the fund, which will shield the economy from cyclical changes in commodity prices, build savings for future generations and be used to invest in infrastructure, he said…………………………….Full Article: Source

Trinidad and Tobago appoints new sovereign wealth fund chairman

Posted on 28 March 2014 by VRS  |  Email |Print

Minister of Finance and the Economy Larry Howai (left) presents Dr Ralph Henry (right), newly appointed Chairman of the Heritage and Stabilization Fund with his instrument of appointment. Dr Ralph Henry has been appointed as the new Chairman of the Heritage and Stabilization Fund (Trinidad and Tobago’s sovereign wealth fund), a release from the Ministry of Finance and the Economy said.
Henry “has served as a lecturer at the University of the West Indies and as a consultant to a number of regional and international organizations which include the Inter-American Development Bank, the Caribbean Development Bank, the World Bank and the CARICOM secretariat to name a few. Dr Henry was also appointed the first Chairman of the Telecommunications Authority of Trinidad & Tobago.”…………………………………..Full Article: Source

Planned sovereign wealth fund may well be only Zim entity able to pay for stakes in mines

Posted on 28 March 2014 by VRS  |  Email |Print

The introduction of the Sovereign Wealth Fund (SWF) by the Zimbabwe government could not have been more timeous, according to experts, as it will be used for much-needed infrastructure development. This also comes amid investor dissatisfaction in the Zimbabwean mining industry, owing to the country’s Indigenisation and Economic Empowerment Act and mining royalties policies.
In his speech at the Zimbabwe Chamber of Mines’ (CoM’s) seventy-fourth annual general meeting in May last year, CoM president John Chikombero said the operating environment for the mining industry in 2012 was, to a large extent, similar to that of 2011: the country’s mining industry remains a primary contributor to Zimbabwe’s gross domestic product and was expected to provide impetus for economic growth……………………………………Full Article: Source

ZANU PF ploughs ahead with the sovereign wealth fund

Posted on 26 March 2014 by VRS  |  Email |Print

As Zimbabwe forges ahead towards creating a Sovereign Wealth Fund, observers fear the ZANU PF government is not ready for such an undertaking given its history of economic mismanagement.
Ideally the fund is supposed to be created through pooling together profits from the exploitation of non-renewable resources, such as minerals, into a savings pot for use by future generations. The idea is to harness excess wealth from depleting resources so that it can be enjoyed by future generations………………………………..Full Article: Source

Saskatchewan Premier Brad Wall says there’s no decision on when to launch Futures Fund

Posted on 24 March 2014 by VRS  |  Email |Print

Premier Brad Wall says he hasn’t decided whether his administration will begin directing resources to a new sovereign wealth fund before the provincial government has paid off its sizable debt. “You’re going to see legislation from this government very soon to establish that futures fund,” Wall told reporters at the legislature on Thursday.
Despite not setting aside funds for the program in the 2014-15 provincial budget on Wednesday, Wall maintains that the creation of the proposed Saskatchewan Futures Fund remains a high priority for the government………………………………………..Full Article: Source

Broten, Wall battle over futures fund

Posted on 24 March 2014 by VRS  |  Email |Print

Opposition Leader Cam Broten says he wanted to see a stronger commitment to a sovereign-wealth fund in the provincial budget. “Right now, the premier’s sort of trying to have it both ways,” Broten told reporters in Regina after the issue was raised in question period Wednesday. “It’s a rather ambiguous position.”
The budget says the government accepts recommendations made by former University of Saskatchewan president Peter MacKinnon last year that if resource revenues exceed more than 26 per cent of government revenues, the excess should go to paying off debt or to a Saskatchewan Futures Fund………………………………………..Full Article: Source

PNG drops sovereign wealth fund plans

Posted on 21 March 2014 by VRS  |  Email |Print

Papua New Guinea appears to have dropped plans to create a sovereign wealth fund to finance its purchase of a stake in gas company Oil Search after Australia backed the fund with aid money. Revenue from the PNG liquefied natural gas project, which was supposed to flow into the wealth fund, will now be pledged as collateral for the $1.3 billion purchase of a 10.1 per cent holding in Oil Search.
The two countries inked a 2009 agreement saying PNG would provide advice to Australia about the objectives of the sovereign wealth fund and Australia would offer assistance on how to establish a fund………………………………………..Full Article: Source

Israel: Natural gas sovereign wealth fund merits further discussion

Posted on 19 March 2014 by VRS  |  Email |Print

Israel should not invest its natural gas revenues in foreign markets as planned, but in domestic “social-environmental causes,” lawyer-businessman Shraga Biran argued on Tuesday. “You need to find a social fund that will help this generation and the future generation,” he said.
Biran was participating in a panel on the country’s sovereign wealth fund for natural gas profits. The cabinet approved the creation of such a fund – which calls for the investment of the expected $125 billion of profits in foreign markets – in April 2013………………………………………..Full Article: Source

Zimbabwe: Set up wealth fund after budget surplus

Posted on 13 March 2014 by VRS  |  Email |Print

Zimbabwe should set up its sovereign wealth fund when it achieves budget surplus to avoid worsening budget deficits, Norway’s former deputy minister of finance Mr Vidar Ovesen said. Norway manages the world’s largest SWFs and has contributed about US$60 billion to the country’s fiscus from the more than US$850 billion revenue derived from petroleum since its set up in 1990.
Ovesen made the remarks during a seminar in Harare yesterday to educate law makers on the country’s new economic plan: the Zimbabwe Agenda for Sustainable Socio-Economic Transformation………………………………………..Full Article: Source

Zimbabwe’s wealth fund gets approval from parliament committee

Posted on 06 March 2014 by VRS  |  Email |Print

Zimbabwe’s Parliamentary Legal Committee said the country’s Sovereign Wealth Fund Bill doesn’t contravene the constitution, paving the way for the adoption of legislation that could see the fund allocated as much as a quarter of mining royalties.
The proposed legislation also recommends that the fund get a quarter of “special dividends” on state mineral and metal sales. It will mainly be used to pay for infrastructure development………………………………………..Full Article: Source

Lebanon: Plan an oil and gas sovereign wealth fund

Posted on 06 March 2014 by VRS  |  Email |Print

In the coming years, Lebanon could begin to reap the benefits of its offshore oil and gas reserves. These resources could be worth tens of billions of dollars in a country where annual gross domestic product is little more than $40 billion.
This new source of wealth has the potential to completely transform the country’s economy and society. But the dangers are also clear; almost every society that discovers resources ends up less competitive in other key sectors of the economy — the so-called ‘resource curse.’ Whether Lebanon can avoid this or not depends on how it manages sustainable development………………………………………..Full Article: Source

Egypt to create a sovereign fund to manage public business sector

Posted on 05 March 2014 by VRS  |  Email |Print

Nine Egyptian public holding companies and their subsidiaries will soon be under an independent sovereign fund. The fund to restructure the public companies will be managed directly by the prime minister’s cabinet, said Hisham Ramez, governor of Egypt’s Central Bank (CEB), following a meeting with newly appointed Prime Minister Ibrahim Mehleb.
Egypt’s public sector was formerly under the investment ministry, which was recently merged with the ministry for foreign trade and industry following last week’s cabinet reshuffle to form a tripartite bureau – Ministry of Investment, Foreign Trade and Industry………………………………………..Full Article: Source

Norways giant oil fund likes everyone else’s whipping boy

Posted on 03 March 2014 by VRS  |  Email |Print

Norway’s oil fund, the world’s biggest sovereign wealth fund, has just announced that it had its second-best year ever. Norges Bank Investment Management, the arm of the central bank that manages the fund, said gains were driven by bouncy equity markets while bond markets barely returned anything at all.
Among the interesting nuggets in the presentation: a particular enthusiasm for emerging markets debt—the whipping boy of 2013. Last year was pretty grim for developing countries. Concerns over an unwinding of monetary stimulus by the Fed as well as economic weakness sent investors scurrying out of emerging markets. Currencies tumbled and bond yields surged in many regions………………………………………..Full Article: Source

How a German sovereign wealth fund could help to rebalance the eurozone

Posted on 03 March 2014 by VRS  |  Email |Print

Germany is on the dock, big time. In its 2013 ‘Alert Mechanism Report’ the European Commission announced that Germany jointly with Luxembourg would have to undergo a thorough review of its potentially disturbing high current account surplus.
The procedure is a legal necessity given that over the last three years Germany’s surplus has been above the critical level of 6% of its GDP. The Commission’s alert was preceded by a stern warning in a report to the US-Congress on international exchange rates in regards to the potentially deflationary impact of Germany’s current account surpluses………………………………………..Full Article: Source

War of words over SNP’s plans for sovereign oil fund

Posted on 27 February 2014 by VRS  |  Email |Print

The future of North Sea oil and gas continued to dominate the independence battle as politicians clashed over plans for a wealth fund. Scottish Secretary Alistair Carmichael warned that an independent Scotland would have no hope of emulating Norway’s £500billion oil fund, claiming the SNP was trying to “fool” people into thinking it could do so.
The SNP responded, saying UK ministers were the ones trying to dupe Scots into thinking that the nation was the only place in the world where oil was a “burden and not a bonus”………………………………………..Full Article: Source

LNG funds for PNG’s sovereign wealth fund: Treasuer Polye

Posted on 26 February 2014 by VRS  |  Email |Print

Papua New Guinea Treasury Minister Don Polye has stated that all proceeds from the sale of the liquefied natural gas (LNG) Project will go directly into the Sovereign Wealth Fund.
“I would like to assure the people of Papua New Guinea that all proceeds of LNG will go directly into the SWF and I mean 100% of it. The first sale of the LNG will begin this year and the projected growth of the economy will be roughly approximately valued around K52 billion (US$20 billion) when the first proceeds of the sales of LNG start coming in………………………………………..Full Article: Source

Korea Investment Corporation–Re-imaging the state in the global sphere

Posted on 24 February 2014 by VRS  |  Email |Print

At about $64 billion (2013), the sovereign wealth funds managed through the Korea Investment Corporation is among the smaller funds. As a member of the International Forum of Sovereign Wealth Funds, the KIC shares certain characteristics with the larger SWFs, grounded on the GAAP of the Santiago Principles.
The KIC is also a relatively new fund. It was established in 2005 under the Korean Investment Corporation (KIC) Act No. 7393 (2005) as a non-commodity fund; or better put, as a government owned investment management company that specializes in overseas investment (Sovereign Wealth Fund Institute, South Korea)………………………………………..Full Article: Source

Mozambique: No sovereign wealth fund yet - Finance minister

Posted on 24 February 2014 by VRS  |  Email |Print

The Mozambican government does not, at least in the short term, intend to use money from natural resources to set up a sovereign wealth fund, Finance Minister Manuel Chang said.
Asked by the independent television station STV what the government would do with the latest capital gains tax paid on the sale of assets in the Rovuma Basin, off the coast of the northern province of Cabo Delgado, where enormous natural gas deposits have been discovered. Chang said the first priority was to clear the Value Added Tax (VAT) rebates which the government owes companies………………………………………..Full Article: Source

Malaysia: Oil wealth must be controlled by Parliament

Posted on 21 February 2014 by VRS  |  Email |Print

An opposition MP has proposed setting up a sovereign wealth fund to prevent the government in power from abusing Malaysia’s oil riches as a personal piggy bank.
Compared to oil-rich Norway which today has the richest sovereign wealth fund in the world at RM2.7 trillion, PKR MP Nurul Izzah Anwar lamented the fact that Malaysia’s equivalent oil fund, the Petronas-backed Kumpulan Wang Amanah Negara (Kwan), only has RM5.43 billion………………………………………..Full Article: Source

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