07.05.2015 - 5 Risks Keeping Sovereign Wealth Funds Up at Night
Sustained low prices of oil are affecting the funding input levels of commodity-based sovereign wealth funds. These current fossil fuel prices are economically squeezing countries like Russia, Saudi Arabia, Venezuela and Iran in harmful ways. Economists, pundits, energy CEOs and policymakers are trying to get a grasp on the long-term price of oil. Lao Tzu, a 6th Century BC Chinese Poet, wrote, "Those who have knowledge, don't predict. Those who predict, don't have knowledge." Commodity-based sovereign funds such as the Abu Dhabi Investment Authority (ADIA) and Kuwait Investment Authority (KIA), may face increased withdrawals to fund deepening fiscal deficits, while cash infusions have shrunk for wealth funds like Norway’s Government Pension Fund Global...............................................Full Article: Source
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