29.11.2011 - UK: Why the GBP30bln sovereign wealth fund is a good idea
At last a radical use of capitalism has been announced to address the UK's pension black hole and stimulate growth. Discussions have begun between the UK pensions sector and the Treasury to create a £30bn sovereign wealth fund (SWF) to become a state-led investment vehicle, owned by British pensioners, to fund large scale infrastructure projects. The idea is not new however. This is a classic case of the UK's Coalition and Whitehall finally leaping from a very cold bath with its 'Eureka' moment. SWFs and public pension reserve funds (PPRF) have been effectively used for nearly 10 years in most of Europe, North America and Southeast Asia. Governments (such as those in Norway, the UAE, Russia, Canada and China) use these vehicles to manage directly or indirectly large asset pools to achieve long-term national objectives...............................................Full Article: Source