Italy’s finance minister has met with the head of China’s largest sovereign wealth fund CIC as Rome tries to bring down soaring borrowing interest rates, a ministry spokesman says.
Finance Minister Giulio Tremonti met with a Chinese delegation in the Italian capital last week, including Lou Jiwei, the head of the China Investment Corporation, the spokesman told Agence France-Presse on Tuesday, without giving details……………………………………….Full Article: Source

China’s government isn’t likely to ride to the rescue of the debt-hobbled Italian government, analysts said, and buyer interest in an Italian bond auction was decidedly lackluster after news of meetings between Chinese sovereign-wealth officials and Italian leaders had fueled a short-lived rally in world markets Monday.
Sentiment cooled significantly Tuesday, as a €6.5 billion ($8.89 billion) Italian bond auction ended poorly despite yields at euro-era highs……………………………………….Full Article: Source

Britain and Russia have signed an agreement to boost investment opportunities in Russia for UK-based private equity investors as recent major corporate failures have cast a shadow over the future of British business in Russia.
UK Trade and Investment and the Russian Direct Investment Fund (RDIF) signed the deal during British Prime Minister David Cameron’s visit to Russia, whose apparent task was to try to repair relations heavily damaged by the 2006 Litvinenko affair……………………………………….Full Article: Source

Chinese sovereign fund China Investment Corp. has a positive view of Russia’s development and investment potential and it will pay close attention to investment opportunities in Russia, Xinhua news agency reported Tuesday, citing CIC Vice Director of External Affairs Liu Fangyu.
CIC already has some investments in Russia, including stock and debt investments and a small amount of direct investments in the energy, real estate and finance sectors, the report cited Liu as saying……………………………………….Full Article: Source

Khazanah Nasional Bhd will only acquire 10 per cent of shares in AirAsia X Sdn Bhd when there is more clarity in both the financial and business model of the long-haul budget carrier.
“When there is more clarity, we will be interested (to proceed),” its managing director, Tan Sri Azman Mokhtar told reporters, on the sidelines of the Forbes Global CEO Conference……………………………………….Full Article: Source

The purpose of setting up a sovereign wealth fund (SWF) is to maintain stability in the value of reserves and earn better income. Diversification with the discipline of a surplus-to-requirement fund is the name of the game.
The revelation of Minister Thirachai Phuvanatnaranubala’s contention on a SWF is thought provoking. However, in risk management, a SWF should not invest in volatility assets like oil or assets that are already heavily imbedded in Thailand’s economy like rice or agricultural related industry, because of too many eggs in one basket……………………………………….Full Article: Source

The International Forum of Sovereign Wealth Funds is a voluntary association for such funds. Looking at the members, it is easy to see that it is predominantly the commodity-rich nations that have established funds - the oil-rich nations of the United Arab Emirates, Kuwait and Bahrain; the copper-rich Chile.
In the midst of huge commodity booms, these countries are saving some of their wealth to prepare for the challenges of tomorrow………………………………………Full Article: Source

Italy’s Finance Ministry has held talks with China’s sovereign-wealth fund and other Chinese officials in a bid to persuade Beijing to buy large amounts of Italian bonds, a person familiar with the matter said, as Rome searches for ways to meet its financing needs and pull the peninsula out of the euro-zone debt crisis.
Finance Minister Giulio Tremonti met with a delegation of Chinese officials last week—including Lou Jiwei, chairman of the China Investment Corp sovereign fund, or CIC—to discuss possible bond purchases by the fund, the person said……………………………………….Full Article: Source

Qatar Investment Authority, the Gulf state’s sovereign wealth fund, could look at investing in US-based real estate as it looks to diversify its investment portfolio, analysts have said.
The wealth fund, which has so far favoured UK property, may look to the US where real estate prices have continued to fall amid fears of a second recession……………………………………….Full Article: Source

Zimbabwe will establish a sovereign wealth fund that will own 51 percent of each foreign and white- owned company in the country, the Zimbabwe Standard reported without saying where it got the information.
The fund will be modeled on state-owned funds in Singapore, China and Abu Dhabi, the Harare-based newspaper said on its website. The fund will be controlled by the Indigenization and Black Empowerment Ministry, the Standard said……………………………………….Full Article: Source

Global Logistic Properties, which is partly owned by Government of Singapore Investment Corp., is planning to list its Japanese assets through a real estate investment trust in an initial public offering in Japan, according to a report.
The report stated that the company plans raise at least 100 billion yen. GLP, which listed on the Singapore Exchange late last year, has hired Citigroup, Goldman Sachs and Nomura Holdings as the main underwriters for the IPO, says report……………………………………….Full Article: Source

It will be a good idea for India to launch its own sovereign wealth fund (SWF). Today, nearly all its foreign exchange reserves are held in US and European government debt, which have tiny returns. A part of this should be spun off into a wealth fund.
This SWF should have a mandate to invest in many sectors and asset classes across the globe, unconstrained by capital controls……………………………………….Full Article: Source

The sovereign wealth fund (SWF) theme is a battle the Planning Commission has often waged with the finance ministry over the past few years. The Commission has pushed for sequestering a sum from the foreign exchange reserves to develop a fund that can stand as support for Indian companies when they scour foreign markets to buy into typically resource-rich companies.
Every time, the ministry has turned around the concept to argue instead for an infrastructure fund that will generate resources from global markets to invest within India. So it is difficult to guess if the latest suggestion from Planning Commission deputy chairman Montek Singh Ahluwalia for an SWF will travel far……………………………………….Full Article: Source

India’s foreign exchange (forex) reserves rose by $1.61 billion to hit an all-time high of $320.78 billion for the week ended September 2 on the back of a nearly $3 billion jump in the value of gold reserves, official data showed.
It was the third consecutive week the forex reserves have risen. The reserves had increased by $955 million in the previous week. The value of gold reserves soared by $2.97 billion to $28.32 billion, according to the weekly statistical supplement of the Reserve Bank of India (RBI)……………………………………….Full Article: Source

Chalongphob Sussangkarn warned against sovereign wealth funds, citing the losses of South Korea’s fund in investing in sub-prime mortgage financial instruments. However, few sovereign funds or even commercial banks in Asia were burnt by this financial debacle in 2008.
A respectable investor would never invest in instruments that were not understandable. The instruments were also marketed at that time in Thailand without much success by those US financial whiz kids. They made you feel stupid for not understanding this instrument……………………………………….Full Article: Source

Labor is planning to withdraw hundreds of millions of dollars from the Future Fund in an unprecedented move that will help the government meet its promise of returning the budget to surplus in 2012-13.
A spokeswoman for Finance Minister Penny Wong confirmed to The Australian that more than $250 million worth of assets were due to be withdrawn from the Future Fund in the 2012-13 financial year, despite the fund having been created, by Peter Costello, under the condition it was not to be touched before 2020……………………………………….Full Article: Source

Minister Penny Wong says Opposition claims the Government is about to withdraw monies from the Future Fund are “completely incorrect”.
The Opposition has accused the Government of having a “secret plan” to dip into the fund set up by the Howard Government to pay public servant superannuation liabilities so it can meet its goal to return the Federal Budget to surplus in 2012/13……………………………………….Full Article: Source

J.P. Morgan’s former co-head of ECM for Asia ex-Japan, who has spent this year in London as head of international listings, will join the Singapore sovereign wealth fund as a fund manager.
Arjun Khullar, a former equity capital markets banker with J.P. Morgan, has been hired by Government of Singapore Investment Corp (GIC) as a fund manager. Khullar left his most recent job as head of international listings at J.P. Morgan in London two months ago and will start at the sovereign wealth fund in about a month……………………………………….Full Article: Source

Qatar has another London landmark in its sights. A Qatari sovereign wealth fund is reportedly close to acquiring the W Hotel in London’s Leicester Square, in a deal worth more than $300 million according to Reuters sources.
McAleer & Rushe, the Northern Ireland developer has had the trendy hotel up for sale since before its February launch and has been close to a sale a number of times……………………………………….Full Article: Source

Abu Dhabi Investment Authority has been named as an investor backing Virgin Money in its bid for 632 branches of UK high street bank Lloyds, according to a report.
The emirate’s sovereign wealth fund, which has assets in excess of $600bn, could be the necessary ingredient to ensure Richard Branson’s company launches a successful tender, The Telegraphy daily said on Saturday……………………………………….Full Article: Source

While the government continuity can be help to stabilize the battle-scarred country, there are many questions about how Gadhafi’s government invested the country’s vast oil wealth. Mahmoud Badi, the person put in charge by the new government to examine the $65 billionLibya Investment Authority, says he is scrutinizing dealings with foreign banks, such as Societe Generale SA or Goldman Sachs Group Inc.
The investments undertaken by the French bank on behalf of Libya lost about $700 million while transactions carried by Goldman Sachs lost $ 1.4 billion. Both banks declined to comment……………………………………….Full Article: Source

Bauchi State Governor, Alhaji Isa Yuguda, has said that governors of the 36 states of the country under the aegis of the Nigerian Governors’ Forum(NGF) are opposed to the operation of the Sovereign Wealth Fund(SWF) because of the fear of its sustainability.
Governor Yuguda, who spoke to a select team of newsmen in Abuja, said that though the governors believe in the need to save for the rainy day, he said that the reliance on excess crude money as a basis for operation of Fund could prove dangerous……………………………………….Full Article: Source

Zimbabwe is set to establish a Sovereign Wealth Fund (SWF) to hold shares in various entities acquired by the government under the empowerment legislation signifying its intentions to move ahead with the programme that has rattled foreign investors.
The move comes after major mining companies buckled under pressure and resolved to sell controlling shareholding to locals in line with the Indigenisation and Economic Empowerment Act. Initially, mining houses under the Chamber of Mines umbrella had offered 26% to locals. According to information obtained last week, the country’s SWF, Zimbabwe Investment Corporation (ZIC) will be launched before the end of the year to house resources for the future generation……………………………………….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

Russia’s international currency reserves are expected to grow by tens of billions of dollars annually, RIA Novosti reported, citing Alexei Ulyukayev, a first deputy head of Russia’s central bank.
Liquidity in the Russian banking industry may fall to below 1 trillion rubles ($33.3 billion) in September and October, RIA said, citing comments by Ulyukayev in Budva, Montenegro……………………………………….Full Article: Source

A government panel has proposed that India should set up a $10 billion sovereign wealth fund, a senior policy maker said Thursday, underscoring the fast-expanding economy’s intent to ready a warchest for securing global energy assets.
“There is a case for a small one [sovereign wealth fund]. The finance ministry has to look at it,” said Montek Singh Ahluwalia, deputy chairman of the Planning Commission, the top government think tank……………………………………….Full Article: Source

The Planning Commission has proposed that India should set up a sovereign wealth fund with an initial corpus of $10 billion, mainly to invest in energy and mining assets abroad.
“Sovereign Wealth Fund is something that the finance ministry is looking at. We have suggested to start with $10 billion,” Planning Commission deputy chairman Montek Singh Ahluwalia told reporters here on the sidelines of a Ficci event……………………………………….Full Article: Source

Recently, media reports suggested that India was debating the pros and cons of creating a sovereign wealth fund (SWF). Earlier this month, Thailand’s finance minister also suggested that the country could use some of its $189 billion in foreign reserves to set up a SWF to invest in regional infrastructure deals.
But what exactly are SWFs? While they handle billions in public money, very little is known about these funds. For example, can you name the world’s biggest sovereign wealth fund? How about their funding sources? Or, what is the region that accounts for the maximum number of sovereign funds?………………………………………Full Article: Source

Bank of Thailand Deputy Governor Atchana Waiquamdee comments on discussions between the finance ministry and the central bank over a proposal to create a sovereign wealth fund. She spoke in an interview today in Bangkok.
Finance Minister Thirachai Phuvanatnaranubala has asked the central bank to study a proposal to use part of the nation’s foreign reserves to set up a sovereign fund……………………………………….Full Article: Source

The recent growing interest in Parkson Holdings Bhd from the Government of Singapore Investment Corp Pte Ltd (GIC) could spell good things for the former’s shareholders, in light of the proposed listing of its Asean retail arm, Parkson Retail Asia Pte Ltd (Parkson Asia), said market observers.
GIC had been actively purchasing shares of Parkson Holdings, increasing its interests to 55.72 million shares or 5.09% as of Monday, after emerging as a substantial shareholder with a 5% stake or 55.03 million shares on Aug 24, just eight days after Parkson Holdings announced its intention to list Parkson Asia……………………………………….Full Article: Source

The problem is, politicians much prefer spending over saving. Which is why a truly far-sighted government would put in place a more explicit mechanism to ensure some of the proceeds of the boom are banked in a sovereign wealth fund.
By setting aside some portion of mining boom revenues in the good times, such a fund may be used to ‘’stabilise” the macro-economy with spending during the bad times. The most exciting prospect would be the behavioural effect it could have on politicians……………………………………….Full Article: Source

It was only a matter of time. A few weeks after every money losing firm in the US and the kitchen sink disclosed it would sue Bank of America in an accelerating attempt to salvage something through litigation, the worst case scenario for Brian Moynhian just got real.
As of minutes ago, Norway’s Government Pension Fund, which is another name for its Sovereign Wealth Fund, has just announced it is suing Bank of America for mortgage fraud. Not only that but it is also going after Countrywide, obviously, but far more importantly, is also suing KPGM, the auditor on the Countrywide transaction, and, drumroll, ole’ Agent Orange himself……………………………………….Full Article: Source

The recent call by the Nigerian Governors’ Forum (NGF) for the suspension of the implementation of the Sovereign Wealth Fund (SWF) has mostly generated angry responses from Nigerians, who are miffed that the Governors do not seem to think of tomorrow.
It should be recalled that the SWF was set up ostensibly to conserve a portion of the money due to the Federation Account from oil revenue in excess of the benchmarks used in budget appropriation by the National Assembly……………………………………….Full Article: Source

In our estimate, sovereign wealth funds would look forward to the creation of an American infrastructure bank. The primary reason for this is the infrastructure fund investment returns would most likely surpass treasuries and other current fixed income investments. It is essential to note that not all infrastructure investments are created equal.
By observing current infrastructure investment patterns around the globe, sovereign wealth funds and other governmental investors prefer infrastructure in energy, utilities, and transportation, over more speculative types like green projects and social infrastructure……………………………………….Full Article: Source

Alberta established a heritage fund in 1976, committing to set aside one-third of resource revenues for the future. Unfortunately, the government abandoned the commitment in 1987 and has repeatedly tapped the fund to cover current spending.
Norway has been far more successful. The country - with fewer than five million people - has placed all oil revenues in a long-term fund, which is now valued at more than $500 billion. The investments are intended to provide revenue for the inevitable day when the resource is gone……………………………………….Full Article: Source

India’s policy makers will discuss next week a proposal mooted by corporate chiefs to float a sovereign wealth fund (SWF), which would potentially invest in overseas projects and companies to secure access to natural resources for one of the fastest-growing economies in the world. A committee headed by Reserve Bank of India Governor D Subbarao will discuss the merits of the proposal on September 15, according to senior officials.
The committee operates under the umbrella of the Financial Stability and Development Council, or FSDC, a forum of regulators monitoring financial stability and interregulatory co-ordination……………………………………….Full Article: Source

Can the creation of a sovereign wealth fund (SWF) by the Indian government, which will buy stocks listed on domestic exchanges, shore up confidence of local investors? It can, or so feels Gagan Randev, CEO of Religare Securities.
Speaking at a Ficci conference on capital markets, Randev suggested that corpus of the SWF could be the securities transaction tax (STT) and capital gains tax collected by the government from investors……………………………………….Full Article: Source

A sovereign wealth fund is a no-brainer. Like the family that saves to ensure its economic future, a national pool of savings would underwrite Australia’s future.
Otherwise, we will all wake up one day, the boom will be over and the price of some commodities will be so low they will cost money to stockpile. End of golden era. Full stop. Where did the money go? Oh, that’s right, was it Bob Brown who was saying 83 per cent of our mining was foreign-owned?………………………………………Full Article: Source

A sovereign fund offers Labor a chance to reconcile its traditional ideology of fairer wealth distribution with its modern deference to free market principles. It is a vehicle for intergenerational equity, spreading resource profits between current and future Australians, while also a prudent fiscal tool that takes temporary tax revenues from a finite resource and turns them into permanent financial assets augmented by investment in capital markets.
What could offer a better blend of old and new Labor philosophy – a model of egalitarian wealth distribution compatible with a capitalist economic system……………………………………….Full Article: Source

The Greens are big supporters of making greater use of sovereign wealth funds. This op-ed in The Age helps explain the appeal of sovereign wealth funds to the left: contemporary Left thinkers have increasingly argued that the ‘‘financialisation’’ of society - the replacement of government-funded retirement with individually-funded savings invested in financial markets, the privatisation of core services, the increasing ownership of society by hedge funds and the explosive use of credit - needs some tempering through social control of public wealth.
That could come through government ownership of vehicles such as sovereign wealth funds……………………………………….Full Article: Source

New research from Towers Watson shows that Australia’s major institutional superannuation funds grew at more than double the pace of their global peers last year.
From 2005 to 2010, eleven Australian funds were added to the ranking of the world’s 300 largest pension funds, determined by Towers Watson and Pension & Investments - the highest of all other countries on the list. While Australia’s Future Fund ranked 35th overall with $73.4 billion in assets, Australian Super followed in 78th place, with State Super in 93rd and QSuper in 99th. In total, there are 15 Australian funds in the top 300 global institutional funds ranked by the firm……………………………………….Full Article: Source

Temasek Holdings has increased its stake in China Construction Bank to 8.10 percent from 6.27 percent, according to the Singapore investment firm and a filing made to the Hong Kong stock exchange.
A spokesman for the state-linked firm confirmed Temasek’s stake in the Chinese lender has been raised but declined to give any further details of the transaction……………………………………….Full Article: Source

When the Singapore government fund Temasek Holdings last July, its holdings in China Construction Bank (CCB) and Bank of China reduced substantially, this has been registered by market participants with astonishment.
The guide in charge of Temasek earlier had always stressed that they had continued to trust in the upside potential of the banking stocks in the Middle Kingdom. The disposals in the amount of approximately HK $ 28 billion (2.8 billion francs) was explained by shifts in the portfolio……………………………………….Full Article: Source

UAE-based Mubadala Development Company is likely to be one of the main benefactors in the initial public offering (IPO) announced on Tuesday by US-based private equity company Carlyle Group.
The Washington-based firm filed for an IPO on Tuesday, a long-awaited move to catch up with rivals Blackstone, KKR and Apollo……………………………………….Full Article: Source

South African reserves advanced 2.7 percent in August as a surge in the gold price boosted the value of the country’s bullion holdings.
Gross gold and foreign-currency reserves rose to $51.45 billion from $50.11 billion in July, the Pretoria-based Reserve Bank said on its website today. The median estimate of eight economists surveyed by Bloomberg was for gross reserves to climb to $50.9 billion. Net reserves increased to $49.13 billion from $47.87 billion, more than the $48.4 billion median estimate of six economists……………………………………….Full Article: Source

In contrast to the usual pre-election cynicism, NDP Leader Dwain Lingenfelter’s Bright Futures Fund is a breath of fresh air.
Yes, it’s a little vague and motherhood-ish. After all, who could possibly oppose the concept of setting aside one-time resource windfalls for Saskatchewan people not yet born? Well, the “who” that has opposed this is every Saskatchewan government to date, which is why Lingenfelter’s Bright Futures Fund deserves serious consideration during this upcoming election. ………………………………………Full Article: Source

Temasek Holdings confirmed in a filing with the Hong Kong stock exchange on Monday that it bought part of Bank of America Merrill Lynch’s stake in China Construction Bank, sold through a private transaction a week ago.
The Singapore investment company said it bought 4.4 billion of the H-shares, or about one-third of the 13.1 billion shares that BoA Merrill sold, at a price of HK$4.94 apiece. This means it spent about $2.8 billion. The acquisition increased its share of the Chinese lender’s H-share capital to 8.1% from 6.27%……………………………………….Full Article: Source

Singapore state investment company Temasek Holdings has hired Bank of America Merrill Lynch’s former head of investment banking in Southeast Asia Tan Chong Lee for a senior position, as it emerged that the fund manager has bought a $2.8bn stake in China Construction Bank.
He was most recently based in Singapore as head of corporate and investment banking in Southeast Asia at Merrill Lynch……………………………………….Full Article: Source

The government is delaying plans for a sovereign wealth fund that would invest in infrastructure projects abroad, saying the matter is not urgent. The idea for the fund emerged after Finance Minister Thirachai Phuvanatnaranubala asked the central bank to consider ways to use some of its foreign reserves in Asean ventures.
Prime Minister Yingluck Shinawatra said further study of relevant laws would be needed before the plan could proceed.”The government has no plans at present to amend Bank of Thailand laws to pave the way for such a fund,” she said……………………………………….Full Article: Source

Media reports these past few weeks clearly show that some ministers in the new government have been salivating for quite some time at the US$185 billion international reserves being managed by the central bank. For they could not wait until they finished moving into their new offices before expressing the desire to put their hands on it.
They want to quickly create a sovereign wealth fund to manage a good chunk of that money so that it will earn a higher rate of return than that achieved by the central bank……………………………………….Full Article: Source