Prime Minister Julia Gillard has dismissed the need for a sovereign wealth fund, saying the nation’s trillion-dollar superannuation pot already does the job.
A number of prominent experts and politicians, including Liberal frontbencher Malcolm Turnbull, have argued for the need to create a sovereign wealth fund to maximise the benefits of the mining boom. A sovereign wealth fund would tuck billions of dollars in tax revenue from the boom away for a rainy day……………………………………….Full Article: Source

Australia’s superannuation regime is strong enough to stand in the place of a sovereign wealth fund, according to the Prime Minister, Julia Gillard.
Gillard has told a Financial Services Council breakfast in Sydney today she believed superannuation is “already our trillion dollar sovereign wealth fund – but with market benefits”……………………………………….Full Article: Source

Singapore’s sovereign wealth fund, Temasek, was able to act ahead of the curve, unloading large chunks of Bank of China and China Construction Bank recently at about HK$3.60 and HK$6.20 a share, respectively.
Maybe this was pure coincidence. But the sell-offs would be impressive if the decisions two months ago are viewed together with what’s happened of late……………………………………….Full Article: Source

Singapore’s sovereign wealth fund Temasek Holdings bought 97.117 million shares of Bank of China for a total of about HK$288 million, or an average price of HK$2.972 per share, on August 22, reports Oriental Morning Post, citing a company filing.
The stake buy increased Temasek’s stake in Bank of China from 6.96 percent to 7.07 percent……………………………………….Full Article: Source

Suspending collection of levies from diesel and petrol sales to the state Oil Fund will help headline inflation drop by 0.5 per cent each month until the measure expires, Dr Naris Chaiyasoot, Director-General of the Fiscal Policy Office (FPO) said Tuesday.
The effect will be clearly seen in September, he added. The risk of inflation in Thai economy has reduced but risk from the global economy stemming from financial problems in Europe and the US has risen. It is necessary to stimulate domestic consumption to substitute for the possible slowdown of exports……………………………………….Full Article: Source

Qatar Investment Authority has denied media reports that it is close to a deal to take over the world famous Silverstone racing circuit in the UK.
An official source at Qatar Investment Authority told Qatar News Agency that there were “no relevant negotiations, currently nor in the past, in this respect”……………………………………….Full Article: Source

The two companies that purchased 1,439 homes in London’s Olympic Park may sell as much as a fifth of the properties to overseas investors, according to two people with knowledge of the situation.
U.K. developer Delancey and a division of Qatar’s sovereign wealth fund intend to sell approximately 300 of the homes abroad, according to the people, who declined to be named because they’re not permitted to speak publicly. The remaining units will be rented out, they said……………………………………….Full Article: Source

Qatari investors’ decision this week to pump half a billion euros into the merger of Greece’s second and third largest banks is part of a strategy to both expand the Gulf nation’s European investments and boost its international standing, analysts said Tuesday.
The $720 million deal is the latest in a shopping spree that has significantly boosted Qatar’s European holdings in recent months, adding to longer-held stakes in continental icons such as Barclays PLC, Credit Suisse Group, Volkswagen AG, and the London Stock Exchange. Just last week, Qatar’s sovereign wealth fund snapped up a 2 percent stake in power company Energias de Portugal……………………………………….Full Article: Source

Norway’s oil fund has increased its investments in small-capitalization companies in debt-burdened European countries such as Italy and Greece over the past 18 months, the head of the $544 billion fund said.
“We think it’s structurally possible to make money” in these markets, Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, said in a speech today in Oslo. The fund also handed out external investment mandates targeting small-caps in France, Spain, he said……………………………………….Full Article: Source

The country’s $550 billion sovereign wealth fund, set up in 1996, owns through its investments some 1.9 percent of the European stock market and holds about 1 percent of traded global shares.
But despite the government’s efforts to protect the economy from bubbles, the national wealth has created unbalances that are difficult on Norwegians not involved in the oil sector……………………………………….Full Article: Source

Temasek Holdings has increased its stake in Bank of China’s Hong Kong-listed shares by 7.07 per cent from 6.96 per cent for HK$288.64 million (S$44.7 million), the Wall Street Journal reported Monday.
Singapore’s sovereign wealth fund’s on-exchange stake purchase on Aug 22 comes just weeks after its US$2 billion (S$2.4 billion) sell-down in the lender……………………………………….Full Article: Source

Singapore state investment company Temasek Holdings Pte. Ltd. is considering acquiring a part of Bank of America Corp.’s stake in China Construction Bank Corp. or CCB, people familiar with the situation said Monday.
Bank of America now owns 25.6 billion CCB shares, or 10% in CCB, including the 23.6 billion shares that will emerge from a lockup period ending Monday. The bank will be free to sell the remaining shares in 2013……………………………………….Full Article: Source

Bank of America has sold about half of its 10% stake in China Construction Bank to a handful of sovereign-wealth funds and institutions in the US and Asia, totaling $8.3 billion before taxes.
“Our partnership with China Construction Bank has been mutually beneficial,” said Bank of America Chief Executive Officer Brian Moynihan in a statement……………………………………….Full Article: Source

Olam International Ltd., a commodities supplier partly owned by Singapore’s Temasek Holdings Pte, reported a 38 percent gain in fourth-quarter profit as trading volumes increased.
Net income climbed to S$127.4 million ($106 million) in the three months ended June 30 from S$92.3 million a year ago, Singapore-based Olam said today in a statement. Excluding one- time gains, profit grew 4.9 percent to S$106 million. Sales increased 44 percent to S$4.52 billion as trading volumes across all four of Olam’s main business areas rose……………………………………….Full Article: Source

Business leaders have called for the creation of a sovereign wealth fund to ensure the benefits of the resources boom are not squandered and to ease the pressures on Australian manufacturers.
Business leaders at the Australian Davos Connection Forum are understood to have discussed the matter at the Hayman Island leadership retreat last weekend……………………………………….Full Article: Source

Within a period of less than a year that he was Finance Minister, Mr Olusegun Aganga was able to conceive the idea of the Sovereign Wealth Fund (SWF), mobilise the support of the relevant stakeholders, initiate an executive bill which was forwarded the National Assembly, get it passed in record time and have the president assent to it.
It is a remarkable feat that demonstrates what commitment to noble ideals can achieve with the right people driving the process……………………………………….Full Article: Source

The Institute of Chartered Accountants of Nigeria (ICAN) has punctured the recent call for the abrogation of Sovereign Wealth Fund, saying it is not founded on informed premise.
President of the Institute, Professor Francis Ojaide said the Fund should rather be sustained by the Federal Government in view of the unstable economic policies of the government……………………………………….Full Article: Source

The state chief executives had originally agreed to back the Fund as a way of resolving the issue surrounding the constitutionality or otherwise of the Excess Crude Account.
The reasoning was that instead of operating an illegal account and instead of spending all earnings without saving for the rainy days, the Fund should be created and operated as international investment fund to serve as savings for future generations and as a returns-yielding venture. This is the practice adopted by most oil producing nations, especially as they realise that oil is an exhaustible natural resource……………………………………….Full Article: Source

With the Excess Crude Account (ECA) and the Sovereign Wealth Fund (SWF) as veritable tools for socio-economic emancipation through growth and development.
The level of light thrown into a recent discussion by some financial experts and the recent insight given by the Minister of Trade & Investments (Olusegun Aganga) on how the 34 trillion naira investments were going to be funded within the next four years; I stand to urge the governors to have a rethink over their latest stand on the SWF……………………………………….Full Article: Source

Uganda should invest oil revenues in Sovereign Wealth Fund (SWF) and at least developing one new economy, if it is to avoid the so called oil curse, oil experts have urged.
Experts contend that the development could be geared to areas like tourism, real estate or airlines so long as it is targeted to particular activities especially projects that bring return to the country……………………………………….Full Article: Source

The Qatar Investment Authority (QIA) has denied the “authenticity of press reports carried by international news agencies and some local and international newspapers that it is close to a deal with the British Racing Drivers’ Club (BRDC) to buy the Silverstone Formula One circuit”, which is owned by the British Club.
An official source at Qatar Investment Authority told Qatar News Agency (QNA) that there were “no relevant negotiations, currently nor in the past, in this respect”……………………………………….Full Article: Source

Qatar National Bank, 50-percent owned by sovereign wealth fund Qatar Investment Authority, set up a $7.5 billion euro medium term note (EMTN) programme to fund its banking operations, the company said in a statement on Monday.
QNB said it has appointed Barclays, HSBC and QNB Capital as arrangers for the bond programme but did not indicate if the lender had any plans to issue debt in the near future. QNB last issued a five-year $1.5 billion with a coupon of 3.125 percent in November……………………………………….Full Article: Source

A Middle East sovereign-wealth fund will likely be the main buyer of half of Bank of America Corp.’s (BAC) stake in China Construction Bank Corp, Hong Kong’s Apple Daily reported Monday.
The U.S. bank is in the final stages of negotiating the sale of a 5.23% stake in the Chinese lender, or about half of its 10.23% holding, to a group of sovereign-wealth funds and institutional investors, the report said, citing a person familiar with the situation……………………………………….Full Article: Source

In times of prosperity, doesn’t it make sense to set aside some wealth for the benefit of posterity; for the point when the mining boom comes to an end and we reach the bottom of the bottomless pit? It is with this aim in view that I support a sovereign wealth fund (SWF) to manage Australia’s long-term prosperity.
A SWF is a state-owned but independently managed fund into which surplus revenue is pooled and then invested, typically abroad. The interest that accrues on these investments ensures that the fund’s wealth grows over time – provided the investments don’t turn bad……………………………………….Full Article: Source

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It is estimated that today around $4 trillion in assets are held by sovereign wealth funds. While other mature asset classes like pension funds are significantly larger, it is expected sovereign wealth funds will grow significantly and could surpass $6 trillion by 2012. In other words, they are here to stay.
A sovereign wealth fund can perform a number of different functions: it can be the source of long-term wealth creation, otherwise known as intergenerational equity, or have a shorter-term objective to stabilise revenue cycles……………………………………….Full Article: Source

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As Australia’s mining boom runs apace, a number of leading commentators have advocated the establishment of a sovereign wealth fund to invest the benefits of the boom offshore.
Prominent among these is Professor Warwick McKibbin - until recently a member of the Reserve Bank Board - who argues that such a fund would reduce excess demand in the economy……………………………………….Full Article: Source

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Uganda should invest oil revenues in Sovereign Wealth Fund (SWF) and at least developing one new economy, if it is to avoid the so called oil curse, oil experts have urged. Experts contend that the development could be geared to areas like tourism, real estate or airlines so long as it is targeted to particular activities especially projects that bring return to the country.
Sovereign Wealth Fund is a pool of money derived from a country’s reserves, which are set aside for investment purposes that will benefit the country’s economy and citizens……………………………………….Full Article: Source

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Benedict Ukpong, Assistant Director, Federal Capital Development Authority, Abuja, on the need for government to carefully examine SWF and the economic benefits it would bring in the long-run, if adequately utilised.
According to the bill already endorsed by both chambers, the future funding for SWF would be derived from remaining funds from the federation account that would be transferred to the authority. This means the three tiers of government should function as a team to develop the economy……………………………………….Full Article: Source

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President Goodluck Jonathan on Friday signed into law the 2011 Amended Appropriation Bill with an expenditure profile of N4.484 trillion.
He also gave his assent to the National Sovereign Investment Authority Bill (2011) which provides for the establishment of a Sovereign Wealth Fund (SWF) and for which $1 billion has been set aside as seed capital……………………………………….Full Article: Source

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Three months after the bill for the establishment of a Sovereign Wealth Fund (SWF) was passed by the two chambers of the National Assembly and signed into law by President Goodluck Jonathan, state governors under the Nigeria Governors Forum (NGF) are, again, calling for its review and amendment.
The governors, who renewed their opposition to some provisions of the law at the end of a recent meeting with the nation’s economic managers, hinged their new position on the unconstitutionality of the legislation……………………………………….Full Article: Source

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Trusted Libyan officials have been given the task of tracking down Libya’s foreign investments. The BBC has reported that some $2.9 billion has gone missing from the accounts of the Libyan sovereign wealth fund.
Officials from the Libyan Investment Authority have discovered misappropriation and misuse of part of the total funds, which are worth about $70 billion. The fund was set up in 2006 by Saif al-Islam, one of Muammar Gaddafi’s sons, to invest in foreign companies……………………………………….Full Article: Source

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some $2.9bn (£1.8bn) is missing from the accounts of the Libyan sovereign wealth fund, the official tasked with tracking down Libya’s foreign investments has told the BBC.
Mahmoud Badi said investigations had found “misappropriation, misuse and misconduct of funds” at the Libyan Investment Authority (LIA). The LIA has total funds worth about $70bn……………………………………….Full Article: Source

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Trusted Libyan officials have been given the task of tracking down Libya’s foreign investments. The BBC has reported that some $2.9 billion has gone missing from the accounts of the Libyan sovereign wealth fund.
Officials from the Libyan Investment Authority have discovered misappropriation and misuse of part of the total funds, which are worth about $70 billion……………………………………….Full Article: Source

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The central bank and the Libyan Investment Authority, the country’s sovereign wealth fund, have about $168bn in assets abroad.
About $50bn of that was in bank deposits in European countries including Germany, the UK, France, Italy, Portugal, Spain, Sweden, Belgium and the Netherlands, Bengdara said. The two institutions also held about $40bn in US and European government bonds………………………………………Full Article: Source

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Qatar is racing ahead to buy another British landmark. The Harrods-owner, Qatar Investment Authority (QIA), is said to be in exclusive talks to buy Silverstone Formula One race track.
The British Racing Drivers’ Club (BRDC), the current owner of the circuit, has entered into discussions with the sovereign wealth fund to lease the 850-acre Silverstone site for 150 years. The deal is worth up $250 million pounds. The QIA was selected as the preffered bidder from a shortlist of interested parties drawn up by PricewaterhouseCoopers……………………………………….Full Article: Source

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Qatar Investment Authority is expected to be involved in the new entity that will come out from the merger between Greece’s Eurobank and Alpha Bank. The merger will have assets worth “150 billion Euros ($214 billion), 8 million clients, 80 billion euros of deposits,” a banking source involved in the deal, according to a Reuters article.
“The Qatar fund will participate in the new entity through a rights issue,” said the official, who declined to be named. “Qatar will be one of the major shareholders in the new entity.”………………………………………Full Article: Source

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Saudi Arabia’s foreign reserves surpassed $500 billion for the first time in July, giving the biggest Arab economy scope to carry out its spending plans to promote growth and weather any potential drop in oil prices.
Total reserves assets increased to 1.90 trillion riyals from 1.86 trillion riyals in the previous month, according to data posted on the Saudi Arabian Monetary Agency’s website on Sunday……………………………………….Full Article: Source

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The Ministry of Finance has confirmed that Martin Skancke has resigned his position as head of the department overseeing the Government Pension Fund Global. The sovereign wealth fund has an estimated $600bn in assets, managed by Norges Bank Investment Management.
NBIM is answerable to the Norwegian Parliament through the country’s Ministry of Finance, where Skancke headed the relevant department. In addition to overseeing the fund, the Ministry also takes an active role in determining investment strategy……………………………………….Full Article: Source

Libya’s rebels are investigating possible corruption at the country’s $65 billion sovereign wealth fund and its links to the family of leader Moammar Gadhafi, the Financial Times reported Friday, citing the man in charge of the probe.
“We are collecting all the information and data needed to evaluate the state of these assets, and will look at all the misdoings and corruption and those responsible for it,” Mahmoud Badi, appointed by the National Transitional Council to track down Libya’s foreign assets including those held by the Libyan Investment Authority, said………………………………………Full Article: Source

Libya’s sovereign-wealth fund and central bank were major investors in some of Italy’s biggest firms, including Milan-based bank UniCredit SpA, defense contractor Finmeccanica SpA and the Turin football club Juventus. Libya’s stakes in those firms remain frozen.
Eni’s agreement to supply local Libyan populations is a first step in reviving the Italian oil giant’s vast operations in the country. Before the conflict, Rome counted on the North African country for about a quarter of Italy’s oil supplies and 10% of its natural gas……………………………………….Full Article: Source

The Tripoli seafront headquarters of Libya’s $65 billion sovereign wealth fund lay empty and unguarded on Thursday, the only sign of recent human activity a giant torn poster of Muammer Gaddafi in the foyer.
Perched high in a tower overlooking the southern Mediterranean, the offices of an institution that was once courted by some of the world’s leading banks lay open to visits from rebel fighters and looters — even if its most interesting doors remain locked for now……………………………………….Full Article: Source

The call by the ‘Governors’ Forum’ for the suspension of the implementation of the Sovereign Wealth Fund (SWF) in Nigeria , has been roundly condemned by analysts.
The analysts say that suspending the Sovereign Wealth Fund would pose a threat to the huge benefits to be reaped in the long run, from the fiscal consolidation advocated by Ngozi Okonjo-Iweala , Nigeria ’s finance minister……………………………………….Full Article: Source

A Korean Chaebol may join forces with an Arab sovereign wealth fund to take up a 15% stake in Hynix which would give them management control of the memory company.
The Chaebol, STX, builds ships among other activities. It owns the European ship building interests formerly operated by Kvaerner, Alstom and Aker which include shipbuilding yards in Brazil Finland, Norway, France, Rumania and Vietnam……………………………………….Full Article: Source

India’s sovereign wealth fund plans are gaining momentum. The proposed USD 10 billion fund will shop for energy assets including crude oil, gas and coal.
It has been on the table since 2010 as a very important strategic initiative. It was first proposed by the Planning Commission to support India’s energy security and its growth plans by acquiring energy assets abroad……………………………………….Full Article: Source

The government recently tossed up the idea of becoming a direct overseas investor by setting up a sovereign wealth fund. The strongest argument in support of this is that the country imports 80% of its oil needs.
There is, therefore, an overwhelming need to acquire oil and gas assets overseas to boost energy security. This task is not easy since it requires the kind of resources that are often beyond the scope of individual companies……………………………………….Full Article: Source

Whether it is rebuilding after the devastating impact of the summer floods on Queensland, or trying curb the affect of a strong Australian dollar on manufacturing and its workers, one issue keeps returning to the political debate - calls for the establishment of a sovereign wealth fund.
Treasurer Wayne Swan was again this week batting away such suggestions to ease upward pressures on a dollar that is crippling manufacturing, and a key factor that has led to the loss of 1000 jobs at BlueScope Steel as it shut down its export operations……………………………………….Full Article: Source

The New Zealand Superannuation Fund is investing in companies involved in the manufacture of cluster bombs, the Green Party claims.
Answers to Green Party parliamentary written questions have revealed the fund invests $2.5 million in five companies allegedly involved in the production of cluster bombs……………………………………….Full Article: Source

Norway’s state pension fund, recently ranked the largest sovereign wealth fund in the world, cautioned on Wednesday that water scarcity poses a growing risk for an increasing number of firms it invests in.
“Water was an important input and output factor at 865 companies the fund was invested in with 255 billion kroner ($47bn) at the end of 2010,” the Norwegian fund said in a statement at the World Water Week conference in Stockholm……………………………………….Full Article: Source

Norway’s sovereign wealth fund excluded Grupo Carso SAB de CV, a company controlled by Mexican billionaire Carlos Slim, from its portfolio because of its involvement in tobacco production.
The $540 billion fund, built from Norway’s oil and natural gas wealth, sold its shares in the company because of its ownership in Compania Mercantil de Productos de Tabaco SA de CV and Philip Morris Mexico SA de CV, the Oslo-based Finance Ministry said………………………………………Full Article: Source

Martin Skancke, long known as the brains behind much of the success of Norway’s so-called “oil fund,” has resigned from his top post in the Finance Ministry to start advising other countries that are building up their own funds. He’ll also help guide investing by Norwegian insurance firm Storebrand.
Skancke, age 45, has led the department in charge of Norway’s wealth management for the past five years. Before that, he worked in both the Office of the Prime Minister and for consulting firm McKinsey……………………………………….Full Article: Source