China's wealth fund ready to boost LatAm investment

BEIJING,(Reuters) - China's $300 billion sovereign wealth fund is prepared to invest more in resource-rich Latin America because it is confident in the region's growth prospects, a senior official said on Wednesday.

Jin Liqun, chairman of the China Investment Corp. supervisory board , told an investor forum he had just returned from a trip to Brazil, Argentina and Chile and saw great potential for trade and investment.

London king of sovereign wealth funds

London is in "pole position" to attract a growing share of sovereign wealth fund investment, according to a new report.

Estimating that SWFs held assets worth a record $4.2tn (€2.98tn) under management in 2010, TheCityUK calculates that this figure could reach $5.5tn (€3.9tn) by the end of 2012 as the global recovery spurs increases in commodity demands.

Norway fund plans to invest in smaller Spanish banks

MADRID, March 26 (Reuters) - Norway's $544-billion sovereign wealth fund is planning to invest in Spanish companies, including smaller banks, a Norwegian central bank spokesman said on Saturday, but she declined to say how much it would invest.

"We are planning to invest in Spanish companies including smaller Spanish banks," the spokesman told Reuters on Saturday.

SEC asks KKR about sovereign wealth clients

The SEC has requested information from private equity firm KKR concerning “its investors and clients that are sovereign wealth funds and certain services provided by KKR,” according to a 10-K filing by the company earlier this month.

It is unclear whether the inquiry is tied to an SEC investigation launched in January into improper payments made by financial services institutions to sovereign wealth funds.

Russia to Invest $10 Billion in Fund

MOSCOW—Russia will invest $10 billion in a new direct investment fund it is setting up to attract foreign investment in an attempt to help modernize the economy, a government official said Monday.

The Kremlin is betting that foreign investors will be more likely to invest in Russian business with the state as a partner, a possible safeguard against loss.

ME funds set to revisit investment strategies

DUBAI — Governments in the Middle East are expected to invest more funds in developing infrastructure while the region’s sovereign wealth funds might redirect capital flow to investments within national and regional borders in the wake of the regional unrest, bankers and financial experts said.

Investment bankers across the region also expect to see lower than predicted merger and acquisition activities in the backdrop of the escalating unrest.

Sovereign funds, pension funds look at Japan rebuilding

Institutional investors worldwide could play a major role in the rebuilding of northeastern Japan as they and Japanese banks investigate how they can help rebuild the crippled infrastructure that resulted from the devastating March 11 earthquake and tsunami.

“Over the last four to five days I’ve had discussions with sovereign wealth funds and government pension funds,” said Michael Underhill, chief investment officer at Capital Innovations, an infrastructure investment firm.

Norway's Sovereign Fund Moves to Cut Bond Position

Norway's government-run oil fund, the world's second-largest sovereign-wealth fund, is cutting its bond holdings and shifting its investments to real estate to protect itself against rising inflation.


The Government Pension Fund Global, valued at nearly 3.1 trillion Norwegian kroner ($548 billion) at the end of last year, historically has invested 60% of its assets in stocks and 40% in bonds. It now aims to gradually invest as much as 5% of its assets in real estate while reducing its fixed-income investments by the same percentage.

Will Other Sovereign Wealth Funds Be Put Into Deep Freeze?

The people who run sovereign wealth funds are bound to be more than a little interested in what happens to the Libyan Investment Authority.

The LIA, Libya’s sovereign wealth fund worth up to $70 billion, has had its assets frozen across the developed world. The U.S., the European Union and other countries have taken various measures to ensure the Gadhafi family doesn’t get its hands on the money.

Nikko green bond funds raise £400m since inception

Since its launch in 2010 Nikko Asset Management (Nikko AM) has raised almost £400m from institutional investors in Europe and the Middle East, as well as Japanese investors, through its groundbreaking World Bank green bond funds.

The UCITS-III, Nikko AM World Bank Green Fund was launched in February 2010 and is the first fund of its kind to invest up to 100 per cent of its portfolio in green bonds issued by the World Bank (International Bank for Reconstruction and Development). The fund is available to institutional investors in Europe and the Middle East, including financial groups, pension funds, sovereign wealth funds, banks, wealth managers and family offices. The fund is currently available in Sterling and US Dollar share classes.

Sovereign wealth funds stick by alternative assets

Private equity firms face a tough time as they raise billions in new funds for the first time since the financial crisis. Traditional large investors including US pension schemes are scaling back their exposure to the sector, leaving firms to turn to the likes of sovereign wealth funds to plug the gap. But one potential problem is that such funds are growing more willing and able to invest by themselves.

Pumped Up By Sovereign Wealth, BNY Mellon Shares Smell Like $36

The Bank of New York Mellon created a new Sovereign Institutions Group with the focus of providing asset management and advisory services for sovereign wealth funds, sovereign pension plans, central banks, monetary authorities and other sovereign-owned entities. BNY Mellon primarily competes with State Street, JPMorgan Chase and Citigroup in areas like providing investment servicing (asset servicing, issuer services, clearing services) and investment management services to institutional investors around the world.

Peru Looks To Create Sovereign Wealth Fund To Protect From Downturns

NEW YORK (Dow Jones)--Peru's economy will likely continue its growth trends this year, but there is concern about the global impact of commodity prices on the Latin American country, said Peru's Finance Minister Ismael Benavides on Friday.

Sovereign funds eyed for U.S. infrastructure

WASHINGTON (MarketWatch) — The U.S. should make it easier and offer incentives for cash-rich sovereign wealth funds to invest in American infrastructure, a leading think tank urged Friday.

The Brookings Institution, in releasing a study on the issue, said U.S. policy makers should generally become more open to foreign investments and specifically may want to offer tax breaks and loan guarantees to get funds like the China Investment Corp. and the Government of Singapore Investment Corp. with some $4 trillion in assets investing in U.S. infrastructure.

From Tripoli to Mayfair. Tracking down Libya’s mysterious sovereign-wealth fund

ABOUT 30 yards from a machine-gun-toting policeman guarding the American embassy in London stands a smart town house. The nameplate by its door says Dalia Advisory Limited. The window blinds on all six storeys are drawn and no one answers the bell. But there are signs of life. A fresh cigarette butt rests on the basement fire escape. If you peek through the letter box, past the picture of a desert dune, down a corridor decorated in bland hedge-fund style, the lights are on, although no one will answer your shouts. It could be just another firm’s office in London’s plushest district. Except for the banner hanging outside, which reads, “Stop the bloodbath in Libya. Stop the war crime.” It is not clear who hung it there.

BNY Mellon Targets Sovereign Wealth Fund Growth in AUM

The Bank of New York Mellon Co. ( BK ) created a new Sovereign Institutions Group with the focus of providing asset management and advisory services as well as service assets for sovereign wealth funds, sovereign pension plans, central banks, monetary authorities and sovereign owned entities looking for professional advice to meet their future needs and growth plans. BNY Mellon primarily competes with State Street ( STT ), JPMorgan Chase ( JPM ) and Citigroup ( C ) in areas like providing investment servicing (asset servicing, issuer services, clearing services) and investment management services to institutional investors around the world.

Italy warns of issues if Libya pulls investments

Italy warned Friday that the unrest in the Arab world could result in a "destabilizing" dismantling of their sovereign fund investments in the West.

Treasury Minister Giulio Tremonti didn't specify Libya or its sovereign wealth funds by name in comments to a conference in Istanbul. But Italy has a lot to lose if the Libyan Investment Authority were to be shuffled amid the escalating fighting.

CIC Vice President: Eagerly Awaiting Government Fund Injection

BEIJING (Dow Jones)--China Investment Corp., the country's $300 billion sovereign-wealth fund, is "eagerly awaiting" the government's decision to inject fresh funds as the firm has already used up its current pool of money, Wang Jianxi, CIC's executive vice president, said Friday.

Speaking on the sidelines of the Chinese People's Political Consultative Conference, the country's top political advisory body, Wang said if extra cash doesn't arrive in time, the fund will have to make some minor portfolio adjustments. He didn't elaborate.

Libya: Spending oil money across the globe

NEW YORK (CNNMoney) -- In the span of a few years, Libya's financial tendrils have reached across oceans, across borders and across continents.

The U.S., the U.K., Switzerland and the European Union recently moved to freeze billions of dollars of Libyan assets, as the violence and chaos spread.

CIC, Temasek May Buy 39% Stake in Shanghai Jahwa, FT Reports

Sovereign wealth fund China Investment Corp. and Singapore state-owned investment company Temasek Holdings Pte. may bid for a 39 percent stake in Chinese cosmetics maker Shanghai Jahwa United Co., the Financial Times reported without citing anyone.

Shanghai Jahwa is also speaking with private bidders, the newspaper said today, citing an interview with Chairman Ge Wenyao. He declined to identify them. Ping An Insurance Group Co. also may bid for the stake from the Shanghai government, the report said without citing anyone.