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Sovereign Wealth Funds Briefing 02.Jan 2013

Posted on 02 January 2013 by VRS |  Email |Print

The finance ministry is working on the contours of the sovereign wealth fund and there may be an announcement in next year’s Budget. Earlier, it was proposed as a fund with a Budgetary allocation of around Rs 30000 crore, but considering that the finance ministry is fiscally constrained at this point in time it is mulling other alternatives like it being a government-backed fund instead of purely government fund and using reserves of large PSUs as well as raising debt.
The idea of the fund is to allow for acquisition of natural resources abroad especially in the oil and mineral space………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

Russia has expressed willingness to help India in setting up a sovereign wealth fund. The chief of the $ 10 billion-Russian Direct Investment Fund (RDIF) said it would be a good idea for India to have a sovereign wealth fund.
“Generally, we believe that India has quite a bit of potential if it were to set up a sovereign wealth fund because India is a huge economy with tremendous promise and we need to allocate capital, within and outside India, through partnerships, which we believe would be a good idea,” RDIF Chief Executive Officer Kirill Dmitriev said……………………………………….Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

State Bank of India and the $10-billion Russian sovereign wealth fund, RDIF, on Monday signed a memorandum of understanding to set up a $2-billion consortium to promote direct investment. The pact was among the 10 deals, including defence, that were signed at the 13th annual India-Russia summit.
In a joint statement, Prime Minister Manmohan Singh and the visiting Russian President Vladimir Putin reviewed the progress made in key areas of co-operation including energy, trade, high technology and military-technical co-operation and noted that they shared common views on all the important issues of regional and international co-operation………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

China’s sovereign wealth fund is among a trio of Asian investors vying to buy an 800-million-pound ($1.29 billion) London office campus from Blackstone Group in what would be the U.K.’s highest-value property deal since the start of the financial crisis.
China Investment Corp. and government-backed funds from South Korea and Malaysia have put forth bids for Chiswick Park, Blackstone’s 1.1-million-square-foot development, the FT reported, citing unnamed people familiar with the process………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

China’s central bank may have added billions of dollars to the country’s sovereign wealth fund, China Merchants Securities said after analyzing official data from last month.
The People’s Bank of China may have injected funds into China Investment Corp. or “have taken similar actions” to cause a big drop in its yuan positions last month, said Xie Yaxuan, an analyst at the brokerage, who used to work for the foreign-exchange regulator………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

Investment giant Temasek Holdings has continued to buy more shares in Olam International, offering further support to the commodity trader under attack from United States-based-short seller Muddy Waters.
Two units controlled by Temasek bought about 24 million shares, lifting its stake to 19 per cent from 18 per cent, according to Olam’s regulatory filing with the Singapore Exchange. Temasek spokesman Stephen Forshaw said: “In our judgment, (Olam) represents a reasonable attractive investment over the long term.”……………………………………….Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

My main contention was that the Philippines is currently suffering from “Dutch disease” or the adverse effects of a sudden rise of income from its export of labour and from a rise of confidence in its domestic economy. In this second part, I will discuss how we could govern and operate our own SWF.
The Santiago Principles established by 26 countries with SWFs known as the International Working Group or IWG in 2008 lays out a number of generally accepted principles and practices or GAPP to ensure that “the SWF arrangements are properly set up and investments are made on an economic and financial basis”………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

Kazakhstan’s sovereign wealth fund is considering buying into metals producer Kazzinc after Glencore International AG cut a planned purchase by half this year, according to two people with knowledge of talks.
Samruk-Kazyna, as the wealth fund is known, hasn’t decided on bidding for the remaining shares that Glencore doesn’t hold, the people said, without giving price guidance and asking not to be identified because the talks are private………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

The issue of extending the contract on field development at Kashagan will be discussed after 2014-2015, managing director of the Kazakh Sovereign Wealth Fund Samruk-Kazyna Malik Salimgereyev told the media today. “It is too early to speak about extending the term,” he said. “Firstly, extending the contract is a duty of the Kazakh Oil and Gas Ministry.”
The PSA for the Kashagan oil field was signed by the Kazakh government and investors in 1997 for a period of 40 years. According to conditions, the cost of deposit exploration is paid for by income from commercial oil production. Now, foreign investors arguing economic expediency are seeking to increase the terms of the contract for another 20 years………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

The State Oil Fund of Azerbaijan, known as Sofaz, bought a shopping and business center in the Russian capital, Moscow, for $133 million as it continues to diversify its reserves.
Sofaz bought 100 percent of Tverskaya, 16 OAO, which owns the Galereya Aktyor (Actors’ Gallery) building in central Moscow, the Baku-based fund said today in an e-mailed statement. The 18,000 square-meter center was built in 1882………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

Though plagued with flu and taking place largely in darkness, the recent visit to Norway by Members of the Legislative Assembly and senior government officials appears to have produced encouraging results and shone some light on possible developments in the Falkland Islands, according to MLA Dick Sawle.
MLA Sawle said that the Norway visit had “two strands”. One of these was to study the Norwegian approach to the regulation and development of the oil industry, which was the particular focus of fellow MLA Dr Barry Elsby, and the other, which was of particular relevance to his own portfolio responsibilities was to do with port infrastructure………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

Mozambique is considering the possibility of using revenue from the exploitation of mineral resources to set up a sovereign wealth fund, but only if this does indeed help solve the problems facing the country.
Speaking on a joint radio and television programme on Saturday, focusing on the activities undertaken by the government over the past year, Prime Minister Alberto Vaquina said that the question of a sovereign wealth fund is under discussion, but no decision has yet been taken………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

Angola, Africa’s second-biggest oil producer, will publish the investment policy of its sovereign wealth fund in the first quarter of next year and appoint international auditors, Chairman Armando Manuel said.
The fund, announced on Oct. 17 with $5 billion in assets, will be established by the sale of 100,000 of Angola’s 1.8 million barrel-a-day oil output from companies including Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), BP Plc (BP/) and Total SA. (FP)……………………………………….Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

African sovereign wealth funds are emerging to save and invest resource revenues. If efficient, they could also boost domestic growth and credit ratings. A spate of sovereign wealth funds are opening across Africa as resource-rich countries look to manage their revenues. Nigeria and Angola have both launched funds in recent months, with Tanzania’s president Jakaya Kikwete also stating his intent to set aside revenues from new gas discoveries.
Almost every member of Opec operates a sovereign wealth fund - a state-owned investment fund - to ring-fence oil revenues and ease the impact of commodity price volatility. Now, after years of poor fiscal management and the ‘resource curse’, African countries are also looking to SWFs to save hydrocarbon revenues, diversify their wealth and boost domestic growth………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

The news that the investment programme of the Nigerian Sovereign Wealth Investment Authority (NSIA) will finally begin in March, 2013, is set to further boost the value of Sovereign Wealth Funds (SWF) globally which, as at the end of April 2012, stood at just under $5 trillion.
The ministry of finance last week said the Nigeria SWF is making progress towards becoming fully operational and that the Strategy Document which will guide its operations was ready, while its investment policy guidelines and the processes for the three fund mandate were almost finalised………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

The government will allocate SR 200 billion from 2012 budget surplus to implement transport projects inside cities, bringing total spending in 2013 to more than SR 1 trillion, Finance Minister Ibrahim Al-Assaf said.
“We have not yet finalized the 2012 surplus because of new expenditures and revenues, especially nonoil revenues,” Al-Assaf told Al-Arabiya channel. He said the remaining amount from the surplus of an estimated SR 386 billion would be kept in public reserve………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

The Qatar Investment Authority has raised its investment stake in Tiffany & Co. to 7.8 percent from 5.2 percent, according to a regulatory filing on Monday the 24th of December. The sovereign wealth fund based in Doha owns now nearly ten million shares.
According to the filing with the Securities and Exchange Commission, a Schedule 13G, presented earlier this week, the aggregate amount of shares owned by the Qatar fund is slightly more than 9.9 million shares. The shares were transferred on Dec. 17 to Qatar Holding USA LLC, a wholly owned subsidiary of QIA, from Qatar Holding LLC, another wholly owned subsidiary of QIA………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

Mubadala Real Estate & Infrastructure (MREI) has announced the sale of four land plots on Al Maryah Island in Abu Dhabi for a retail project. MREI, a business unit of Mubadala Development Company, sold the plots to Gulf Related to deliver a further 288,200 sq m of retail space in Sowwah Square.
“The expansion will provide a world class regional retail destination that will include residential and hotel development in line with the vision of the Government of Abu Dhabi for the Al Maryah Island master plan,” a statement said without giving the value of the deal………………………………………..Full Article: Source

Posted on 02 January 2013 by VRS |  Email |Print

“What is a sovereign wealth fund?” asked one of my colleagues the other day. “Good question,” I countered, and then I began to stumble through a rough answer of what I could remember about these types of funds.
Checking with Investopedia I reacquainted myself with the correct answer. A 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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