Why China’s Sovereign Wealth Fund Is Not Interested In EFSF

Jin Liqun, an economist and the Chairman of China Investment Corp (i.e. China’s sovereign wealth fund), talked to Al Jazeera on how they look at investing in European Financial Stability Facility (EFSF). Or, he talked about why the sovereign wealth fund has little interest in investing in EFSF.

Libya's shadow on sovereign wealth funds

NEW YORK: As Libya's citizens rebuild their lives and economy, undoing the corruption in the Libyan Investment Authority (LIA), the sovereign wealth fund in which Muammar Gaddafi's regime allegedly stashed and misused Libya's oil wealth, is becoming a priority.

The National Transitional Council is debating who should take over Libya's Central Bank and the LIA's assets - an especially important decision, given that oil production is not expected to return to pre-war levels for several years.

Wealth fund dropped over meddling fear

The Finance Ministry and the Bank of Thailand yesterday agreed not to tap the country's foreign reserves to establish a sovereign wealth fund, easing market concerns about government interference in the central bank.

The proposal, initiated by the ministry, would look to invest some of the country's US$180 billion (5.6 trillion baht) in foreign reserves in higher-performing assets other than low-yielding government bonds.

Qatari wealth fund on gold buying spree

The Qatari Royal family plans to spend up to $US10 billion ($10.4 billion) buying stakes in gold producers through their sovereign wealth fund, The Daily Telegraph can disclose.

The fund is seeking to invest in a range of natural resources, but gaining access to physical gold is its top strategic priority.

Yesterday, Qatar Holdings, which controls the wealth of the Middle East state’s royal family, confirmed it would invest about $US1 billion in European Goldfields, a London-listed miner currently developing the largest gold-mining project in Greece.

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.

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.

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.

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.

Australian PM rules out sovereign wealth fund

SYDNEY — Australian Prime Minister Julia Gillard Wednesday ruled out creating a sovereign wealth fund, saying the nation's mandatory pension savings were an "anchor" in volatile economic times.

Some business figures have called for the establishment of a sovereign fund to capture the earnings of a mining boom fuelled by demand from Asia.

Nigeria: Let the Sovereign Wealth Fund Be

Within a period of less than a year that he was Finance Minister, Mr Olusegun Aganga was able to conceive the idea of the Sovereign Wealth Fund (SWF), mobilise the support of the relevant stakeholders, initiate an executive bill which was forwarded the National Assembly, get it passed in record time and have the president assent to it.

It is a remarkable feat that demonstrates what commitment to noble ideals can achieve with the right people driving the process.

Thai Oil pushes for talks on sovereign wealth fund

By WATCHARAPONG THONGRUNG

Thai Oil supports a joint discussion of the Bank of Thailand, the Finance Ministry and the Energy Ministry on the establishment of a sovereign wealth fund, which could earn better returns from growing foreign reserves.

Surong Bulakul, chief executive officer of Thai Oil, said that with such fund, Thailand would have a mechanism to manage public-sector risks in the same way as Singapore, Malaysia and South Korea.

Sovereign wealth fund could quell nationalisation talk

The discussions around nationalisation create uncertainty and all investors dislike uncertainty. The discussion of a change in regime detracts from investment, so any discussion of this sort will not be good for investments, says Coal of Africa chairperson and mining entrepreneur Richard Linnell.

He tells Mining Weekly that he is not adverse to the ‘correct form of nationalisation’. “However, I am frightened by irrational and uninformed discussion on something that is actually quite difficult and, because there is political merit in the debate, it attracts attention and people tend to get frightened by it. You cannot discount the political merit – it just has to be managed correctly,” Linnell says.

Sovereign fund's losses roil Norwegians

Sticking to a financial plan can be challenging, even if you are the world’s largest sovereign wealth fund.

Or, so it seems, sometimes, for Norway’s Government Pension Fund Global and the handful of active traders at Norges Bank Investment Management -- challenged during the first two weeks of August to explain the loss of 200 billion kroner ($372-million U.S.) in equity value, as much as its stock losses for all of the second-quarter.

Singapore's GIC Investment Climate Still 'Challenging'

July 26 (Bloomberg) -- The Government of Singapore Investment Corp., the city's sovereign wealth fund, said the investment environment remains "challenging" as developed countries recover and emerging markets pose inflation risks.

GIC, manager of more than $100 billion of Singapore's reserves, said in its annual report today that it boosted investments in emerging economies to tap their potentially higher returns and improved macroeconomic fundamentals. It expanded the number of countries it invests in as well as its range of investment tools, it said.

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.

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.

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.

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.