Euro Weakens Amid Sovereign Debt Concerns; Kiwi Climbs to Record

The euro fell against the dollar amid concern European governments will struggle to resolve the sovereign debt crisis, damping demand for the region's assets.

The single currency weakened versus 14 of its 16 major counterparts after Greek Prime Minister George Papandreou said he'll press ahead with new austerity measures even as he failed to win backing from opposition parties. New Zealand's dollar climbed to the strongest since exchange-rate controls ended in 1985 after a report showed the nation's trade surplus widened by almost twice economists' estimates to a record in April.

Shorten dismisses sovereign funds as 'elitist'

Assistant Treasurer Bill Shorten does not believe tying up money from the government's proposed mining tax in a sovereign wealth fund is a sensible idea.

The Organisation for Economic Cooperation and Development has previously recommended that Australia should not spend the proceeds of the planned minerals resource rent tax (MRRT), instead placing it in a sovereign wealth fund.

Libya sovereign fund suffers big losses

Libya lost billions of dollars on sophisticated financial products sold to Muammer Gaddafi’s sovereign wealth fund by some of the world’s leading financial institutions, according to a confidential Libyan government document.

Banks and hedge funds led by France’s Société Générale are named in about $5bn (£3bn) of deals involving the oil-rich nation, some of which had resulted in heavy losses by the middle of last year.

India plans sovereign wealth fund for energy assets abroad

Planning Commission is now setting its eyes on a sovereign fund to acquire energy assets around the globe. The government is planning to set aside $10 billion for the fund. Moreover, 2-5 per cent of India's forex reserves may be set aside for the fund.

“We have been asked to look into the feasibility of setting up such a fund for energy assets. Given the present resources situation a fund like this is necessary. I believe a paper has been prepared and will be examined by the group of ministers,” said Montek Singh Ahluwalia, deputy chairman of Planning Commission.

Strong demand for EU bail-out bond sale

The European Union enjoyed strong demand for its third bond to raise money for the rescues of Portugal and Ireland, in a sign of investors’ confidence that the eurozone can survive the debt crisis.

Despite rising concern over contagion, and the single currency coming under pressure this week, banks, pension funds, insurers and other investors from Europe and Asia, including some big sovereign wealth funds, bought the debt.

Sovereign wealth funds just keep getting bigger

The aggregate assets of the world’s sovereign wealth funds rose 11% through 2010 to $3.8 trillion according to a report by Prequin. Whether grand totals like that make much sense, of course, is another matter. The funds are not managed as an aggregated total and each pursues its own strategy. Management risk profiles and investment strategies vary hugely.

However, there appear to be clear signs that having committed a fair number of high profile blunders over the last few years in their search for higher yield, funds have, in general, become better at investing. According to Sam Meakin, managing editor of the 2011 Prequin Sovereign Wealth Fund Review, that 11% increase in AUM through 2010 was largely down to returns on investment

Middle East SWFs to hike risk

Managers of sovereign wealth funds across the Middle East hope to ratchet up their exposure to risky investments as well as the length of their investment commitments from next year, new research suggests.

The year 2012 will mark a turning point in the direction of a number of these rich state-controlled funds, many of which still hesitate to take bold bets in the wake of the financial crisis, according to Invesco Asset Management’s Middle East study for 2011.

China wealth fund sees no need for new forex fund

BEIJING (MarketWatch) -- An executive with China Investment Corp., the country's sovereign wealth fund, said that he doesn't see a need for the country to set up any new foreign exchange-reserve investment funds, Caixin Media reported Friday on its website.

Jin Liqun, chairman of CIC's board of supervisors, said in a speech in Washington D.C that CIC has covering most investment sectors and has done a good job with its investments, Caixin reported.

Exclusive: Ministers Lure Sovereign Wealth Funds Chief

The Government's trade promotion body has hired a senior executive from Ernst & Young to spearhead an effort to forge relations with sovereign wealth funds and other high-value inward investors, I have learned.

Michael Boyd, who held several roles at the accounting firm, has been appointed as the head of a new strategic relations unit within UK Trade & Investment (UKTI). Boyd's appointment is expected to be announced within days and could come as soon as tomorrow.

House approves sovereign wealth fund creation

The House of Representatives yesterday passed the sovereign wealth fund (SWF) bill, a week after the senate delivered the legislation proposed by the federal government to hold billions of oil revenue differentials between budget benchmarks and actual market prices.

Seeking to avoid a harmonization procedure, the house approved the senate's version of the law and passed the Nigeria Sovereign Investment Authority bill, with an initial investment minimum of the naira equivalence of $1 billion.

Canadian wealth fund and Henderson buy Leadenhall Triangle

A Canadian sovereign wealth fund advised by Henderson Global Investors has bought the Leadenhall Triangle scheme in the City for £175m.

Henderson went under offer on Friday to buy five buildings on an island site which are currently in administration after a fierce bidding process.The asset will be owned one third by Henderson’s Central London Offices Fund I, one third by Henderson’s Central London Offices Fund II and one third by the Canadian fund.

Securing global economic security

Inflation is a significant factor of global economic security and has the innate capacity to upend carefully laid plans

Norway’s Wealth Fund Rose $11 Billion in Quarter

Norway’s sovereign wealth fund returned 59 billion kroner ($11 billion) in the first three months of 2011, the smallest gain since last year’s second quarter, as European bonds slumped.

The $573 billion Government Pension Fund Global returned 2.1 percent, as measured by a basket of currencies, the Oslo- based investor said today. The equity portfolio returned 2.9 percent and fixed-income investments climbed 0.7 percent, led by gains in covered bonds. European bonds fell 1.1 percent.

Sovereign wealth funds on the defensive

They manage billions of dollars of public money, yet there is little information about how some sovereign wealth funds (SWF) invest.

This week, the largest sovereign wealth funds in the world meet in Beijing, at a time when there are increasing calls for more transparency.

CIC Chairman: Support Greater Sovereign Wealth Fund Transparency, With Caveats

BEIJING (Dow Jones)--The chairman of Chinese sovereign wealth fund China Investment Corp. said Wednesday he supports greater transparency from sovereign wealth funds worldwide, with some caveats.

Lou Jiwei was speaking in Beijing at the International Forum of Sovereign Wealth Funds, a meeting hosted by the Chinese fund. A summary of his remarks was released by CIC.

Singapore wealth fund sees major crisis if US loses AAA status

May 9 (Reuters) - The world could face another major financial and economic crisis if the United States loses its AAA sovereign rating, a top official at Singapore sovereign wealth fund GIC said on Monday.

Separately, Singapore Prime Minister Lee Hsien Loong said he did not expect U.S. President Barack Obama to tackle the country's huge deficit until after presidential elections in 2012, in a sign of growing global unease about the U.S. economy.

Greens want inquiry into wealth fund

The Australian Greens want the Productivity Commission to investigate whether Australia should establish a sovereign wealth fund to save money for tough times ahead.

Leader Bob Brown will move a motion in the Senate this week calling on the government to refer the issue to its independent advisory body.

Now more than ever before do we need a sovereign wealth fund

There's an old joke about populist television investment programs.

Essentially, there are only four stories that are repeated ad nauseam. I won't destroy the mystery and list them in order but if you watch them often enough you'll get the drift.

Sovereign wealth funds 'good tool for Africa'

SA does not need a sovereign wealth fund, but many other African countries could use the financial instrument well as a means to bring greater transparency to their public finances, according to Mthuli Ncube, chief economist at the African Development Bank.

Addressing a press briefing on Thursday during the World Economic Forum on Africa, Ncube said: "What happens to the revenues received from oil and gas? That is where government should (manage the wealth generated) and that is where an instrument like this would allow greater transparency and accountability in revenues."

Australian Wealth-Fund Push Hits Roadblock

SYDNEY—In a blow to those calling for an Australian sovereign-wealth fund to lock away mining-boom proceeds, opposition Treasurer Joe Hockey, one of the country's most influential politicians, said Thursday that their case is premature and Australia is already well-served by its pension-savings pool.

Mr. Hockey's remarks followed a rush of calls in recent weeks from lawmakers, policy makers and others for the government to follow the examples of countries such as oil-rich Norway and invest some of the proceeds of the current boom. The backers include David Murray, chairman of the Future Fund, which holds about 70 billion Australian dollars (US$75 billion) for public-sector pensions; Warwick McKibbin, a member of the Reserve Bank of Australia board; leading bank executives; and bond-fund titan Pacific Investment Management Co. The RBA itself has signaled the need for discussion.

Sovereign Wealth Funds Line Up for Glencore Shares

HONG KONG—Sovereign wealth funds from Singapore and the Middle East are in advanced talks to acquire shares in Swiss commodities giant Glencore International AG's dual listing on the London and Hong Kong stock exchanges, according to people familiar with the situation.

Glencore is looking to raise as much as US$12.1 billion in its initial public offering and has been searching for large investors to turbo-charge its share sale. These so-called cornerstone investors are swapping certainty that Glencore will allocate them shares during the offering in exchange for not selling the shares for at least six months.

Another cop-out in Canberra

This week the International Monetary Fund warned against squandering the riches of the mining boom. Alongside the now lengthy retinue of business leaders and others, the IMF called for Australia to set up a sovereign wealth fund.

There was nary a smidgen of interest from the Office of the Prime Minister, though. Our intrepid Canberra correspondent, Clancy Yeates, put in the call yesterday.