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Sovereign Wealth Funds Briefing - Archive | May, 2012

CIC urges Europe to open further

Posted on 24 May 2012 by VRS  |  Email |Print

China will continue to support Europe’s attempts to overcome its eurozone crisis and Europe should be more open to inflows of capital, particularly at a time when the region needs liquidity, said a top official from China’s sovereign wealth fund.
“China’s commitment to supporting Europe and its efforts to deal with the sovereign debt crisis is firm and unambiguous,” Jin Liqun, chairman of the board of supervisors of China Investment Corp, said at an event held on Tuesday by the Center for Policy Studies, a think tank in the United Kingdom………………………………………..Full Article: Source

Recognition of strategic development factors for sovereign funds

Posted on 24 May 2012 by VRS  |  Email |Print

A clear majority of sovereign wealth funds are keenly interested in selecting assets based on risk-adjusted investment returns. The purely financial sovereign fund investor ignores strategic development as a factor.
It is true that some SWFs have a strategic development nature or use strategic development as a possible reason when making a larger than usual investment. Some investors like the Korea Investment Corporation (KIC) will have a separate allocation to these types of investments……………………………………….Full Article: Source

China faces “invisible impediments” in Europe - CIC

Posted on 23 May 2012 by VRS  |  Email |Print

Jin LiqunChina faces “invisible impediments” to investing in some parts of Europe, with Europeans nervous about allowing it to move into sectors such as nuclear power, a senior official at China’s sovereign wealth fund said on Tuesday.
“European companies should treat Chinese companies fairly and equitably - we still feel some invisible impediments to our investments in some of the countries in Europe,” Jin Liqun, chairman of the board of supervisors of China Investment Corp (CIC), which manages assets totalling more than $400 billion, told a seminar………………………………………..Full Article: Source

Euro-zone gridlock worse than crisis itself -CIC official

Posted on 23 May 2012 by VRS  |  Email |Print

The euro zone’s handling of the debt crisis has been more damaging than the crisis itself, a senior official at China’s sovereign wealth fund said Tuesday.
Jin Liqun, chairman of the supervisory board of China Investment Corp., said in a speech that political gridlock is leading the currency area “deep into the woods” rather than toward a solution to its debt crisis, which has reignited following political upheaval in Greece that has called into question its future in the euro zone………………………………………..Full Article: Source

CIC’s Jin says other countries may follow if Greece exits euro

Posted on 23 May 2012 by VRS  |  Email |Print

Jin Liqun, chairman of China Investment Corp.’s supervisory board, said European authorities have shown a “lack of leadership” on the euro area’s debt crisis and other countries may leave if Greece exits the single currency bloc.
“Ever since the debt crisis broke out, there has never been a master plan for a resolution,” Jin said at an event hosted by the Centre for Policy Studies in London late yesterday. “The core members of the monetary union certainly have to keep an eye out for possible copycats should the Greeks be allowed to escape from the crisis unscathed.”……………………………………….Full Article: Source

CIC official : Yuan could be used in 10pct of settlements in 10 years

Posted on 23 May 2012 by VRS  |  Email |Print

The yuan could be used to settle 10% to 15% of international transactions in 10 or 20 years time, a senior official at China’s sovereign wealth fund said Tuesday.
Jin Liqun, chairman of the supervisory board of China Investment Corp., said China’s currency is “well on its way” to becoming an international reserve currency but its role is still “insignificant” compared to the dollar or euro………………………………………..Full Article: Source

Some risks ahead but opportunities abound: Temasek

Posted on 23 May 2012 by VRS  |  Email |Print

Markets may be heading into a rough patch over the next two years as a result of the euro zone crisis, said the chief investment officer of Temasek Holdings.
Hence there will be both near-term risks and opportunities for the investment firm, said Tan Chong Lee on Tuesday. Tan, who was responding to a letter in Today newspaper asking for more details about Temasek’s investments in Chinese banks, said that the firm is a long-term investor that invests for future generations………………………………………..Full Article: Source

Mapletree records 6.2pct profit rise

Posted on 23 May 2012 by VRS  |  Email |Print

Real estate group Mapletree Investments recorded a 6.2 per cent rise in full-year net profit to $793 million. The increase for the 12 months to March 31 came as the firm, which is wholly owned by Temasek Holdings, continued to expand regionally and enhance its capital management business.
The company said shareholders’ funds grew 12 per cent to $6.5 billion while it recorded a return on equity of 12.8 per cent. The average annual return on equity for the past five years is 13.1 per cent………………………………………..Full Article: Source

Khazanah safety net for MAS

Posted on 23 May 2012 by VRS  |  Email |Print

Khazanah Nasional Bhd will provide a safety net rather than an outright bailout of Malaysia Airlines (MAS). MAS announced yesterday, it has almost secured about RM8.8 billion to fund its capital expenditure (capex) and working capital requirements.
The announcement, however, was fitted with a statement that Khazanah will take up any shortfall in funding via an equity capital injection. “That equity injection is to help finance any unfunded aircraft capex and also for any unfunded working capital needs which there are none at this time………………………………………..Full Article: Source

Future fund ‘idea’ flagged in email

Posted on 23 May 2012 by VRS  |  Email |Print

A year before Colin Barnett first announced plans for a future fund, merchant banker Justin Mannolini emailed his old university mate Christian Porter to pitch an idea that would paint the Government as visionary while changing the conversation around State debt.
Mannolini, the managing director of Gresham, an investment bank chaired by leading businessman Michael Chaney, sent an email to the Treasurer in February last year to see if the Government had any interest in a sovereign wealth fund………………………………………..Full Article: Source

Nigeria: SWF - FG, states settlement bid fails

Posted on 23 May 2012 by VRS  |  Email |Print

The Supreme Court Monday in Abuja fixed September 25 for the definite hearing of the suit filed by governors of the 36 states of the federation against the Federal Government over the Sovereign Wealth Fund (SWF).
This followed the failure of the federal and state governments to reach amicable out-of-court settlement. The apex court had on March 26 adjourned the matter to enable the 36 states and the Federal Government settle the dispute on the Excess Crude Account (ECA) out of court………………………………………..Full Article: Source

Sovereign wealth fund: Out of court settlement hits brickwall

Posted on 23 May 2012 by VRS  |  Email |Print

Following the collapse of the Federal Government’s proposed out of court settlement in the disputed N1 billion deducted from the Excess Crude Account to fund the Sovereign Wealth Fund, SWF, the Supreme Court on Monday fixed 25 September, 2012 for definite hearing of a case instituted by the 36 states of the federation.
The states are challenging the legality of the Federal Government’s transfer of the said amount to the Sovereign Wealth Funds. The Presidency had earlier asked the Supreme Court for an adjournment to enable it explore the out of court settlement option with the 36 state governments………………………………………..Full Article: Source

Fed Govt, states talks on sovereign wealth fund collapse

Posted on 23 May 2012 by VRS  |  Email |Print

Talks between the Federal Government and the 36 states on the legality of the Excess Crude Account (ECA) may have collapsed. A full panel of the Supreme Court headed by the Chief Justice of Nigeria (CJN), Justice Dahiru Musdapher, yesterday fixed September 25 for definite hearing of the suit filed by the states.
The states are challenging the legality of the Excess Crude Account and the decision of the Federal Government to transfer $1 billion from the account to the Sovereign Wealth Fund (SWF)………………………………………..Full Article: Source

SWF: Whose wealth? Whose sovereignty?

Posted on 23 May 2012 by VRS  |  Email |Print

Trust has remained sorely lacking in the governance of Nigeria. Lagos State Governor Babatunde Fashola (SAN) made this point tellingly last week in an address before the Pan-Africa Investor Conference of Renaissance Capital, in which he explained why his fellow governors have not embraced the controversial Sovereign Wealth Fund (SWF) – not to be confused with Single White Female in the “personal” pages of American newspapers —the Federal Government is planning to establish.
State governors simply do not trust the Federal Government to manage the fund judiciously and use it for what it is meant, Fashola said………………………………………..Full Article: Source

India: Sovereign wealth fund must for global strategic acquisitions: Assocham

Posted on 22 May 2012 by VRS  |  Email |Print

D.S. RawatWith debt loads sinking weaker economies worldwide, India ought to aim at setting up a sovereign wealth fund (SWF) which is financially viable and have a broader objective of furthering the country`s role as a global player, industry chamber Assocham said.
There are more than 50 sovereign wealth funds managing assets worth nearly USD 3 trillion. Most of these are run by countries with huge trade surpluses and are funded mostly by oil and gas exports. India is the only BRIC nation that does not have a SWF, said The Associated Chambers of Commerce and Industry of India (Assocham)………………………………………..Full Article: Source

Middle East sovereign wealth funds shift focus to local economies

Posted on 22 May 2012 by VRS  |  Email |Print

Nick TolchardGovernments and sovereign wealth funds (SWFs) in the Middle East are investing less internationally than they have done at any point in the last three years. The third annual Invesco Middle East Asset Management Study analysed the revenues and investment behaviours of major SWFs in the GCC, which account for 35% of global SWF flows, representing $1.6 trillion.
The study found that the international flow of money directly from GCC sovereign governments and from SWFs has changed considerably in light of the political unrest in the region, with large commodity-linked surpluses in these regions increasingly being put to use locally………………………………………..Full Article: Source

Global fight over Gulf wealth funds to intensify: Invesco

Posted on 22 May 2012 by VRS  |  Email |Print

A shift in focus from global to local investments by the big Gulf sovereign wealth funds after the Arab Spring is set to step up competition among Western governments, asset managers and companies hoping for some of their cash, a study by US fund manager Invesco Ltd showed.
“Western governments, including the UK, have approached SWFs (the funds) from the Middle East to help with economic recovery, but many will fight a losing battle,” Nick Tolchard, head of Invesco Middle East told reporters at a conference in Dubai. “There is certainly less money to invest internationally so the stakes are higher.”……………………………………….Full Article: Source

Sovereign wealth fund: Govs ask S-Court to abort FG’s plan to withdraw $2bln

Posted on 22 May 2012 by VRS  |  Email |Print

Legal tussle over the proposed creation of a “Sovereign Wealth Fund” assumed a fresh dimension, yesterday, as Governors of the 36 states of the federation approached the Supreme Court, asking it to abort plans by the Federal Government to withdraw $2 billion from the “Excess Crude Account.”
The governors made the request on a day they told a seven-man panel of Justices of the apex court, presided by Chief Justice of Nigeria, CJN, Justice Dahiru Musdapher, why they failed to reach agreement with the Federal Government, regarding its plans to transfer $1 billion from the “Excess Crude Account” to a new account to be known as the “Sovereign Wealth Fund.”……………………………………….Full Article: Source

Excess crude account: S/Court fixes Sept 25 for hearing

Posted on 22 May 2012 by VRS  |  Email |Print

A full panel of the Supreme Court, headed by the Chief Justice of Nigeria (CJN), Justice Dahiru Musdapher, on Monday, fixed September 25 for definite hearing in the suit filed by the 36 states of the federation against the Federal Government, challenging the legality of the Excess Crude Account and the decision to transfer $1 billion from the account to the Sovereign Wealth Funds.
The Federal Government had, before now, asked the court for time to enable it to settle the matter out of court………………………………………..Full Article: Source

SWF: Govs threaten to dump out-of-court settlement deal

Posted on 22 May 2012 by VRS  |  Email |Print

Plans by the Federal Government to transfer $1 billion from the Excess Crude Account to a new account to be known as the “Sovereign Wealth Fund,” may have met a brick wall, as Governors of the 36 states of the Federation, have threatened to dump the out-of-court settlement deal.
This is even as the Chief Justice of Nigeria, CJN, Justice Dahiru Musdapher, has directed the Federal Government and the governors to appear before the apex court today with their report of settlement or be ready for a full-blown hearing into the substantive matter………………………………………..Full Article: Source

Sovereign wealth fund: FG, states peace talks collapse

Posted on 22 May 2012 by VRS  |  Email |Print

Indications emerged on Monday that the peace talks between the Federal Government and the 36 states over the legality of the Excess Crude Account (ECA) have collapsed.
A full panel of the Supreme Court headed by the Chief Justice of Nigeria (CJN), Justice Dahiru Musdapher on Monday fixed September 25 for definite hearing of the suit filed by the states………………………………………..Full Article: Source

Temasek says markets entering period of stress in next 2 years

Posted on 22 May 2012 by VRS  |  Email |Print

Temasek Holdings Pte, Singapore’s state-owned investment company, said it expects the markets to enter a “period of stress” for the next one to two years amid the European debt crisis, adding risks to investments.
European leaders will do “everything necessary” to keep Greece in the 17-nation euro, German Finance Minister Wolfgang Schaeuble said yesterday. Group of Eight leaders on May 19 urged Greece to stay within the euro area as polls in the country showed a close race between parties supporting and opposing the European Union bailout deal………………………………………..Full Article: Source

Near-term risks and opportunities for Temasek

Posted on 22 May 2012 by VRS  |  Email |Print

Temasek is a long-term investor, investing for our future generations. Our investment decisions are based on our fundamental assessment of long-term value.
Temasek’s investments in listed companies are disclosed in various stock exchanges, in full accordance with regulatory requirements. We also disclose our major holdings annually in our Temasek Review (www.temasekreview.com.sg)………………………………………..Full Article: Source

Alibaba in talks with Temasek to finance buyback from Yahoo

Posted on 22 May 2012 by VRS  |  Email |Print

Alibaba Group Holdings Ltd. is in talks with Singapore state investment company Temasek Holdings Pte. Ltd. to help it finance a $7.1 billion purchase of its shares from Yahoo Inc., people familiar with the situation said Monday.
Temasek may provide about $500 million if the negotiations are successful, these people said. Late Sunday, Yahoo struck a deal under which it will sell up to half of its 40% stake in Alibaba in a taxable transaction………………………………………..Full Article: Source

China to fore as global sovereign assets top $5 trillion

Posted on 21 May 2012 by VRS  |  Email |Print

Jai AryaSovereign wealth fund assets have topped $5 trillion globally for the first time, with Chinese entities accounting for one fifth at $1.14 trillion, according to the Sovereign Wealth Fund Institute.
In its latest rankings, the Abu Dhabi Investment Authority leads the pack of 61 sovereign funds with $627 billion in assets, followed by Norway’s Government Pension Fund – Global at $611 billion………………………………………..Full Article: Source

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Future fund avoids overheating economy

Posted on 21 May 2012 by VRS  |  Email |Print

Christian PorterSpending rather than saving the seed capital for Western Australia’s future fund would have overheated the state’s construction industry with consequences for the domestic housing market, state Treasurer Christian Porter said.
The Barnett government’s decision to put aside $1.1 billion from the generous Royalties for Regions scheme was lauded yesterday by former Liberal leader Malcolm Turnbull, who has long called for a federal sovereign wealth fund………………………………………..Full Article: Source

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Malcolm Turnbull buoyed by WA future fund move

Posted on 21 May 2012 by VRS  |  Email |Print

Malcolm Turnbull has renewed his call for a national sovereign wealth fund, lauding Western Australia’s establishment of its own future fund as a “common sense” decision.
Wayne Swan today questioned the WA government’s budget priorities, saying the federal government was committed to spreading around the benefits of the boom………………………………………..Full Article: Source

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Norway SWF told to invest in land as climate change hedge

Posted on 21 May 2012 by VRS  |  Email |Print

Norway’s Government Pension Fund Global should invest in agricultural land and forests as a hedge against any climate change policies that governments around the world may introduce, according to a report specially prepared by investment consultant Mercer.
The Nkr3.3 trillion ($550bn) fund, the second-largest sovereign wealth fund in the world, according to the SWF Institute, should invest in these commodities “as a ‘hedge’ against climate policy measures that are not fully anticipated by the market”, Mercer’s report said………………………………………..Full Article: Source

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Excess Crude Oil Account:Osun govt warns against $1bln withdrawal for SWF

Posted on 21 May 2012 by VRS  |  Email |Print

The state government of Osun has warned the Minister of Finance, Mrs. Ngozi Okonjo-Iweala, against withdrawing a whopping $1billion from the Excess Crude Oil Account for the Sovereign Wealth Fund (SWF).
Okonjo-Iweala had, some few days ago, said that the Federal Government would withdraw the sum of $1billion from the Excess Crude Oil Account and to be saved at the SWF on behalf of the 36 states of the federation………………………………………..Full Article: Source

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SWF: Govs threaten to dump out-of-court settlement deal

Posted on 21 May 2012 by VRS  |  Email |Print

Plans by the Federal Government to transfer $1 billion from the Excess Crude Account to a new account to be known as the “Sovereign Wealth Fund,” may have met a brick wall, as Governors of the 36 states of the Federation, have threatened to dump the out-of-court settlement deal.
This is even as the Chief Justice of Nigeria, CJN, Justice Dahiru Musdapher, has directed the Federal Government and the governors to appear before the apex court today with their report of settlement or be ready for a full-blown hearing into the substantive matter………………………………………..Full Article: Source

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The benefits of SWF to the Nigerian economy

Posted on 21 May 2012 by VRS  |  Email |Print

The benefits of an SWF to the Nigerian economy cannot be overemphasized, which is why other oil economies around the globe have long embraced the idea. Foreign portfolio investors have proven volatile and lack sufficient faith and understanding of the Nigerian markets.
The SWF can help create stability in the markets and deepen investors’ confidence. It will also allay the fears of sceptics who argue that the Nigerian market may not be able to absorb equity listings of major corporations from Telco’s and oil and gas companies………………………………………..Full Article: Source

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SWF and the state of Nigeria’s economy

Posted on 21 May 2012 by VRS  |  Email |Print

In a recent Wall Street Journal interview, Nigerian finance minister Ngozi Okonjo-Iweala reviewed Nigerian economic issues, notably, that the anticipated sovereign wealth fund would start operating during the next few months, with U.S. $1 billion from the Excess Crude Account to start. She promised a governing council including representatives from civil society, media, and academics would oversee the account “to ensure that the money is transparently invested.”
In other issues, she emphasized the importance of diversifying the economy to create more jobs. (Nigeria’s economy is growing at the rate of 7.4 percent; she said that most of the growth took place in the non-oil sectors of the economy.)……………………………………….Full Article: Source

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EBRD in SWF talks over CEE project funding

Posted on 21 May 2012 by VRS  |  Email |Print

Active talks are underway between the EBRD and key sovereign wealth funds over infrastructure investment in eastern Europe. The EBRD is in active talks with cash-rich sovereign wealth funds (SWFs) of Asia and the Middle East for fresh capital sources to fund a growing infrastructure deficit in central and eastern Europe.
The bank has been talking with major SWFs, understood to include Temasek of Singapore, which has funded infrastructure projects around East Asia, Australasia, and increasingly North America………………………………………..Full Article: Source

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Report reveals Norway SWF climate risk

Posted on 18 May 2012 by VRS  |  Email |Print

Norway’s 3496 billion kroner (US$582.7 billion) sovereign wealth fund could suffer significant losses in a range of climate-change scenarios if it fails to hedge its risk by investing in climate-sensitive assets, the release of a confidential report shows.
Norway’s Ministry of Finance recently released an extensive study by asset consultant Mercer on the effects of climate change on the Government Pension Fund Global’s (GPFG) portfolio of investments………………………………………..Full Article: Source

West Australia to lock away mine boom riches in future fund

Posted on 18 May 2012 by VRS  |  Email |Print

Western Australia will plough some of its unprecedented mining wealth into a future fund it says will be worth at least $4.7 billion within 20 years and will preserve the benefits of the resources boom for future generations.
In the first move by a state government to establish a wealth fund, West Australian Treasurer Christian Porter said he would use $1.1bn of the government’s rapidly growing mining royalties as seed capital for the fund, which would be quarantined until 2032………………………………………..Full Article: Source

Future fund takes WA budget centre stage

Posted on 18 May 2012 by VRS  |  Email |Print

The much-awaited centrepiece of the West Australian government’s latest budget is a future fund that is expected to nudge $5 billion by 2032. In handing down his second budget as treasurer, Christian Porter said under the plan the government would set aside $1 billion in seed funding in the years to 2015/16.
The funding will in part be sourced from a three per cent “efficiency dividend” - or cut - and other savings applied to the Royalties for Regions fund totalling $223 million………………………………………..Full Article: Source

Korea Investment Corp.’s Scott Kalb: Strategic investing for the next generation

Posted on 18 May 2012 by VRS  |  Email |Print

Scott Kalb, former chief investment officer of Korea’s $45 billion-plus sovereign wealth fund, Korea Investment Corp., knows how to take smart risks. Hired by KIC in 2009, Kalb, 56, reorganized the investment team and stabilized KIC’s loss-making investment portfolio — which was then worth just $19 billion — by recalibrating its approach to risk management, diversifying its holdings and implementing a long-term investment culture and discipline.
The results have been dramatic. Over the three years of his tenure, through March 2012, KIC’s portfolio has delivered annualized returns of 12 percent………………………………………..Full Article: Source

Temasek names Credit Suisse’s Sim as North America president

Posted on 18 May 2012 by VRS  |  Email |Print

Temasek Holdings Pte appointed Boon Sim, who’s leaving his role as global head of mergers and acquisitions at Credit Suisse Group AG, as the Singapore state- owned investment company’s president for North America.
Sim will start on June 1 and will also take on the roles of co-head for the Americas and Europe, as well as credit portfolio, Temasek said……………………………………….Full Article: Source

Temasek: Backing the shareholder spring?

Posted on 18 May 2012 by VRS  |  Email |Print

Given the amount of time the media has spent poring through the results of investor votes at major companies during the last few weeks, it’s startling that nobody spotted the latest apparent backer of Britain’s ’shareholder spring’.
Here’s the surprise fact: I’ve learned that Temasek Holdings, the Singaporean sovereign wealth fund, withheld its support from the re-election of six executive directors of Standard Chartered at its annual meeting last week………………………………………..Full Article: Source

Temasek should clarify exposure to Chinese banks

Posted on 18 May 2012 by VRS  |  Email |Print

Based on publicly available information, Temasek Holdings is a significant shareholder in a number of Chinese banks, holding multi-billion-dollar stakes in three of China’s “Big Four” banks. Given that Singaporeans are the ultimate stakeholders in Temasek, we need to be concerned about its outsized exposure to Chinese banks.
At the same time, it is in Temasek’s interest to disclose the extent of its exposure to the Chinese banking sector and to provide assurances regarding the level of due diligence conducted on its China investments………………………………………..Full Article: Source

Don’t tamper with Excess Crude Account, Osun warns Fed Govt

Posted on 18 May 2012 by VRS  |  Email |Print

The Federal Government got a yellow card from the Osun State Government not to withdraw $1 billion from the Excess Crude Account for the Sovereign Wealth Fund (SWF). Finance Minister Dr Ngozi Okonjo-Iweala recently spoke of plans to transfer $1 billion from the Excess Crude Account to the SWF on behalf of the 36 states.
But reacting to the minister’s proposal through its Information and Strategy Commissioner Sunday Akere, the Osun State Government said activities on the Crude Account ought to have been suspended pending the determination of the suit filed against the Federal Government by 29 states………………………………………..Full Article: Source

Azerbaijan State Oil Fund invites bids for purchase of HR-Payroll

Posted on 18 May 2012 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) creates a system of human resources management and HR-Payroll. The SOFAZ informs that a tender is conducted with this purpose for purchase of HR-Payroll system.
The bidder for supply must have at least 2 years of experience and realize 2 or 3 similar projects in Azerbaijan. Bids accompanied by a bank guarantee for 3% of the requested cost will be accepted till 6 pm 29 June at the Fund’s office: 24, Neftchilyar Avenu, Baku………………………………………..Full Article: Source

Scare tactics obscure role of SWFs in economies

Posted on 17 May 2012 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) are investment mechanisms abused by mostly Arab and Asian countries to take control of strategic industries within developed economies. They should therefore be viewed with caution and regulated with homogenous global regulation to control their movements within the global market.
This is what Western economic leaders and politicians would like us to believe, but when stripped of their terrorist-style commentary and viewed through cold facts, SWFs have the potential to offer large benefits and to kick-start economic recovery………………………………………..Full Article: Source

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Sovereign wealth funds: The new intersection of money and politics

Posted on 17 May 2012 by VRS  |  Email |Print

Author Christopher Balding having recognised – like many of us – that he knew too little about sovereign wealth funds (SWFs), set about doing something about it. The result is an excellent source of information on SWFs.
Part one, entitled ‘Framework’, begins with the history of SWFs, explaining there are three main types of funds. The first SWFs orginated as ‘stabilisation funds’ that were set up by countries where commodity exports dominated economic activity and governments decided to set aside revenues in the fat years to help fund lean years………………………………………..Full Article: Source

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Iran’s Oil Development Fund could reach $55bln

Posted on 17 May 2012 by VRS  |  Email |Print

Iran’s President Mahmoud Ahmadinejad said on Saturday the country’s sovereign wealth fund could reach $55 billion by March next year if oil prices kept high, in an apparent bid to defend his economic record in the face of increasing isolation.
Iran earned up to $100 billion in oil revenue last year but an EU embargo set to come into force in July could put a major dent in future income………………………………………..Full Article: Source

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Why govs oppose sovereign wealth fund?

Posted on 17 May 2012 by VRS  |  Email |Print

Governor Babatunde Fashola of Lagos State said state governors’ opposition to the Sovereign Wealth Fund, SWF, and the Excess Crude Account is borne out of distrust for the Federal Government’s ability to judiciously manage the funds and utilise it for the purpose it was meant for.
“These really are the issues. It is not that the governors are up in arms against the idea of saving. But we are asking what the rules of engagement are and do those rules of engagement work within the rules that bind all of us,” Fashola said……………………………………….Full Article: Source

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Sovereign wealth fund illegal, says Fashola

Posted on 17 May 2012 by VRS  |  Email |Print

State Babatunde Fashola(SAN) said the Sovereign Wealth Fund (SWF) lacks the necessary legal backing, thereby making it difficult for governors to key into it.
He explained that until the controversial issues surrounding the fund are addressed, it will continually be seen as a high risk issue for investors………………………………………..Full Article: Source

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Nigeria: Excess Crude Account not growing enough - Okonjo-Iweala

Posted on 17 May 2012 by VRS  |  Email |Print

Nigeria’s Excess Crude Account is not growing as it should because of bunkering activities in the Niger Delta causing shortage in oil production output, the Minister of Finance and the Coordinating Minister of Economy has said.
Dr. Ngozi Okonjo-Iweala told Daily Trust that oil bunkering is affecting revenue projection for the year. The Excess Crude Account has risen from $3.6 billion last month to $4.2 billion currently, but the minister said the balance in the account should be higher because price of oil at the international market is rising………………………………………..Full Article: Source

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Qatar continues investment in flagship firms with slice of Siemens

Posted on 17 May 2012 by VRS  |  Email |Print

Qatar’s business love affair with German companies has grown even stronger with the Gulf state taking a 3% stake in Siemens.
It follows the high-growth country’s acquisition of a 17% voting stake in German car giant Volkswagen, through the investment arm of its sovereign wealth fund, Qatar Holdings, while only last week Siemens signed a research agreement with Qatar University and utility company Kahramaa to support the rapid development of infrastructure projects………………………………………..Full Article: Source

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Areva sold Eramet 26pct stake to French sovereign fund FSI

Posted on 17 May 2012 by VRS  |  Email |Print

French state-controlled nuclear engineering firm Areva Wednesday said it finalized the sale of its 26% stake in mining company Eramet SA to French state-owned investment fund Fonds Strategique d’Investissement for EUR776 million.
This operation is being conducted subsequent to the signature of the share purchase agreement concluded on March 16 and to the lifting of the standard conditions precedent imposed with regard to the antitrust authorities and the stock market regulator, Autorité des marchés financiers………………………………………..Full Article: Source

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