Sovereign Wealth Fund: FG, governors meeting deadlocked

ABUJA – NEGOTIATIONS between the Federal Government and the 36 state governors on the implementation of the Sovereign Wealth Fund, SWF have been deadlocked.

The meeting, held at the Rivers State Governor’s Lodge, Asokoro, Abuja, under the aegis of Nigeria Governors’ Forum, failed to reach an agreement with the Federal Government on modalities for the implementation of the SWF.

Qatar sovereign wealth fund: Europe in biggest crisis in 50 years

FRANKFURT: The head of Qatar's $100 billion sovereign wealth fund said Greece's debt crisis was Europe's worst in decades, telling a German newspaper Handelsblatt the outlook precluded making long-term investment decisions.

"Currently, we can only act with a view to the short term, longer term forecasts cannot be maintained in view of the insecure situation in Europe and the United States," Qatar Holding chief executive Ahmad Mohamed Al-Sayed was quoted as saying in an interview.

DPJ Policy Chief Proposes Japanese Sovereign Wealth Fund

TOKYO—Japan should consider setting up a sovereign-wealth fund to both take advantage of the strong yen and try to push down the currency, Seiji Maehara, policy chief of the ruling Democratic Party of Japan said Wednesday.

"We need to think of ways to convert the yen into foreign currencies, and I've told the prime minister we should consider it," Mr. Maehara said in an interview, adding that Prime Minister Yoshihiko Noda said he would look at such a move.

GCC Sovereign Wealth Funds monitor European opportunities

The eurozone is in crisis, and many expect that Middle East money will be used to help bail out struggling European banks and even governments. But with no guarantees the eurozone will even survive its current troubles, might Gulf Sovereign Wealth Funds be reluctant to help out this time around?

Two of Greece's biggest banks are in advanced talks over a merger, which would see Alpha Bank, the country's second-largest bank, take over Eurobank, which failed recent stress tests designed to calculate how the institutions would cope in any future financial meltdown.

Sovereign wealth funds to keep MENA M&A ticking, says HSBC chief

Increased appetite from sovereign funds and restructuring-driven asset sales will help drive a modest recovery in mergers and acquisitions (M&A) in the Middle East and North Africa (MENA), the head of HSBC’s regional advisory business said.

While global markets are teetering under the impact of a sovereign debt crisis in the euro zone and a slowdown in the U.S. economy, a sharp fall in asset values may present an opportunity for these cash-rich funds with a mandate to invest their state’s hydrocarbon revenues, Omar Mehanna told Reuters.

Future fund asserts defensive strategy

Australia’s A$75bn ($73bn) Future Fund has failed to reach its mandated benchmark return over its five-year history, but David Murray, the Fund’s chairman, says that is no reason to change its defensive investment strategy.

Speaking at an Institute of Company Directors’ function in Melbourne last week, Mr Murray – a former chief executive of the Commonwealth Bank – said the Fund needed to “keep its powder dry” in the face of the global economic situation, which he said could result in a “20-year” malaise on world markets.

Wealth funds to pour billions into shares worldwide

Sovereign Wealth Funds (SWFs) are preparing to pour billions of dollars into shares around the globe as they take advantage of low prices in the latest stock-market collapse.

Mike Burns, the executive director of the $40bn Alaska Permanent Fund, told The Independent on Sunday that the SWF’s board will meet on Friday to discuss moving hundreds of millions of dollars from fixed-income products, such as bonds, to shares.

New Libyan Sovereign Wealth Fund Chief Seeks Probes

One of the first orders of business in post-Moammar Gadhafi Libya is to clean out the rotten wood.

Tops on that list is investigating corruption at the Libyan Investment Authority, the country’s sovereign wealth fund. Rafik Nayed, the fund’s acting chief executive, said in an interview with the Wall Street Journal that its investment operations are on hold while it looks through $65 billion in holdings to examine dealings with people tied to Gadhafi.

Tysons Corner Center just a piece of oil-backed Alaska wealth fund’s portfolio

Tysons Corner awaits a Metro stop that will connect it more closely to Washington, but the sprawling shopping mall is already linked to a place even farther away: Alaska.

The Alaska Permanent Fund, the state’s sovereign wealth fund, owns half of Tysons Corner Center, just one piece of a $38 billion portfolio amassed in the four decades since the state’s coffers started overflowing with oil revenue.

Korea's Sovereign Wealth Fund Considers Raising Bank of America Stake

SEOUL—South Korea's sovereign-wealth fund is considering investing the remainder of a dividend it received from Bank of America Corp. to increase its stake in the U.S. banking giant from 0.67%, and it will address its investment plans at a meeting Wednesday, people familiar with the matter said Friday.

Word of the possible investment comes after Korea Investment Corp., which invests funds from the Ministry of Strategy and Finance and the Bank of Korea, reinvested $78 million of the $145 million in dividends it has received from Bank of America in several transactions earlier this year.

Sovereign wealth: Spending stays close to home

Gulf governments will be spending more money on the home front this year, as they try to placate their populations with job creation and infrastructure projects.
Depending on the oil price, that may mean less investment overseas or a more focused approach to foreign investment, analysts say.

It is difficult to generalise about sovereign wealth funds in the region. The Qatar Investment Authority spends quite differently from the one in Abu Dhabi, while Saudi Arabia invests the majority of its sovereign funds through its central bank.

Chinese sovereign wealth funds should dump US stocks, report says

Chinese sovereign funds such as Safe Investment Company and CIC should consider dumping and even shorting US retail stocks during US economic downturns, if they want to adopt an integrated asset and liability management process when making investment decisions, according to a new paper by the Edhec-Risk Institute

The Edhec-Risk Institute in Singapore has recommended that Chinese sovereign entities hold no exposure to the stocks of US retail companies or that they short such stocks to hedge against appreciation of the renminbi as well as hedging a fall in US consumer demand.

Our Problem With Sovereign Wealth Fund– Aliyu

The Niger State governor, Babangida Aliyu, has stressed that contrary to reports in the media, the state governors were not against the Sovereign Wealth Fund. According to him, the method of implementation was the problem. The governor also urged the Federal Government to be courageous enough to unbundle the Power Holding Company of Nigeria (PHCN) and implement all the reports and decisions taken under the power sector reforms.

The governor said this at the maiden convocation lecture of the Fountain University, Osogbo, on Friday, where he officiated as the guest speaker.

SWFs Can Aid Global Economic Recovery According to Alexander Mirtchev

Washington, DC (WiredPRNews.com) Sovereign wealth funds (SWFs) in their new guise of established market players can contribute to the economic recovery strategies of the developed economies, considers Dr. Alexander Mirtchev.

Soaring debt, anemic growth, intransigent unemployment, social unrest…these are the fundamental challenges that America could be facing as Congress gears up to consider President Obama’s new jobs plan. One proposal that is unlikely to surface during the debate is a greater openness to sovereign wealth funds. Why? Among others, SWFs’ past ‘trophy asset’ sprees have not played well in the U.S., reinforcing concerns about the balance between their political and economic objectives. SWFs are, after all, the investment arms of resource-rich or export-oriented countries and if they choose to use these funds more to achieve political goals rather than for pure business purposes, they are seen in some quarters as undermining confidence and distorting global capital flows.

Governors and Sovereign Wealth Fund

For every nation worth its salt, it is imperative to save and invest a certain proportion of it wealth as part of a deliberate effort to drive growth and development. China, for example, has $827 billion in its SWF, United Arab Emirate $709 billion, Saudi Arabia $444.4 billion, Kuwait $202 billion and Libya $70 billion. The Funds have helped these nations achieve their development objectives.

The Federal Government has tried to take a cue from these countries by setting up its own Sovereign Wealth Fund. The bill was passed by both houses of the National Assembly and signed into law by the President. The SWF replaced the Excess Crude Account (ECA) which was the accumulation of windfall savings from oil prices above the budget benchmark. The ECA had been depleted uncontrollably in past years. Therefore, the SWF provides a legal framework for the disbursement of excess crude funds.

North America key area for investments

Abu Dhabi: Abu Dhabi Investment Authority (Adia) said in its annual review yesterday that 35 to 45 per cent of its portfolio is currently invested in developed equities while 10 to 20 per cent is in emerging market stocks and up to 20 per cent in government bonds.

The sovereign wealth fund said 35 to 50 per cent of its investments are located in North America, followed by Europe and Asia, while only 15 to 25 per cent is held in emerging markets.

Italy confirms talks with China's sovereign wealth fund amid crisis

ROME - Italy is confirming reports that the treasury minister has met with China's sovereign wealth fund, amid speculation that Rome is looking to persuade Beijing to buy Italy's bonds or invest in its companies.

A spokesman for Finance Minister Giulio Tremonti on Tuesday confirmed the meeting with the chairman of China Investment Corp., Lou Jiwei, but declined further comment.

Emerging markets may lure more pension funds: IMF

(Reuters) - Deep-pocketed pension and insurance funds may increase their investments in equities and other riskier assets in emerging and developing countries as they struggle with historically low interest rates in industrialized markets, the IMF said on Tuesday.

Pension plans of Canada, Germany, Japan, Switzerland, Britain and the United States, which typically rely on traditionally safe investments such as bonds, are in danger of being unable to cover what they owe beneficiaries, in part because of low interest rates, the IMF said in its Global Financial Stability Report.

WSJ: Ex-Gadhafi Officials Remain At Libyan Sovereign Wealth Fund

The new Libyan government is said to be examining the Libya Investment Authority and its dealings with foreign banks

But the man in charge fears his scrutiny could be hindered by the continuing presence of Gadhafi-era fund managers

One rebel leader said the government should create an independent audit commission with the power to bring fraud charges

SocGen Deals With Libya Sovereign Fund Eyed By New Government

Officials in Libya’s new governing authority are looking into whether any payments made by Société Générale SA as part of its relationship with the Libyan Investment Authority made it into the hands of people close to the ousted regime of Col. Moammar Gadhafi, the Wall Street Journal reported.

The Journal reviewed documents showing that the French bank paid an unspecified amount to a Panama-registered company, Leinada Inc., to help structure and advise a $1 billion investment vehicle in 2008 for the LIA, Libya’s sovereign wealth fund. The company’s role isn’t clear, but some sovereign wealth fund officials criticized it before the uprising started in February, according to the Journal report.

SocGen Deals Eyed by Libya

Officials working with Libya's new governing authority are examining whether any payments made by Société Générale SA as part of its business relationship with the Libyan Investment Authority ended up in the hands of people close to Col. Moammar Gadhafi's regime.

The French bank paid an unspecified amount to a Panama-registered company, Leinada Inc., to help structure and advise a $1 billion investment vehicle in 2008, according to deal-related documents reviewed by The Wall Street Journal. Leinada's exact role isn't clear, but the company's involvement was criticized by some officials at Libya's sovereign-wealth fund before fighting engulfed the country.

Pension funds in new crisis as deficit hole grows

Pension funds in developed economies are facing a new crisis as falling equities and tumbling bond yields widen their deficits, threatening the incomes and retirement dates of future retirees.

At the heart of their problems is a steady move by pension plans in the United States, euro zone, Japan and the UK to cut exposure to risk after the financial crisis.