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Sovereign Wealth Funds Briefing 12.Sep 2011

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

Montek Singh AhluwaliaThe 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

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

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

Posted on 12 September 2011 by VRS |  Email |Print

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

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