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Archived News - June 2008
6/30/2008
Mongolia, a country rich in minerals, is contemplating creating a sovereign wealth fund. According to the IHT, "The Mongolian People's Revolutionary Party has promised to give each citizen a cash dividend of 1.5 million Tugrig dollars (US$1,300) once mining production starts. It will also set up a 'Gift of the Motherland' fund similar to the Alaska Permanent Fund, which pays dividends to the state's residents from oil revenues."
read more: International Herald Tribune
6/26/2008
"We have no issues with GIC and Temasek picking up stakes separately in ICICI Bank," government sources said. The two investment firms would however require the Reserve Bank of India's approval. GIC and Temasek would together hold 20 per cent stake in ICICI Bank, if RBI gives its nod. Earlier, the central bank had objected to the move stating the two entities cannot be treated separately as both were investment vehicles of the Singapore government. As per the Reserve Bank guidelines, an overseas portfolio investor can hold a maximum of 10 per cent stake in an Indian company.
read more: The Economic Times
6/23/2008
Ho Ching, the executive director and chief executive officer (CEO) of Temasek Holdings, handed over a check of 1 million U.S. dollars to the Chinese embassy on Monday for the devastating earthquake that jolted China on May 12.
Ho, also the wife of Singapore's Prime Minister Lee Hsien Loong, said the money represented the sympathy of Temasek Holdings for the Chinese government and people, especially the people in worst-hit Sichuan province, and hoped the money could contribute to reconstruction.
read more: China View
6/20/2008
6/19/2008
As current account surpluses grow and oil prices increase, SWFs are approaching 4 trillion USD in assets. They will continue to invest heavily in their own infrastructure and emerging markets around their region. We can expect more opportunistic investing in distressed firms as well, especially in the financial services sector.
read more: Fund Rankings
6/18/2008
Record by US Representative Marcy Kaptur from Ohio,
Washington D.C., 11 June 2008
CSPAN Video Link
Summary
Ms. KAPTUR. Mr. Speaker, today the New York Post reported that a foreign government in the form of the Abu Dhabi Investment Council plans to buy the Chrysler Building, a New York City landmark, for more than $800 million, continuing a trend of foreign government buyouts of American business, real estate and assets. This is the same sovereign wealth fund that bailed out Citigroup earlier in this year. Recall Citigroup, America's biggest bank and a key player in recycling international petrodollars
and a holder of enormous debt from the subprime lending crisis.
Abu Dhabi is jointly owned by the Abu Dhabi Investment Authority and the National Bank of Abu Dhabi. The former chairman is Sheik Khalifa bin Zayed al-Nahyan, who is pictured here on the poster with President Bush. The Sheik is the President of the United Arab Emirates and the ruler of Abu Dhabi. This is not just a foreign executive buying up an American icon building. This is the ruler of a foreign country.
For those who are opposed to the American government owning private property, allowing foreign governments, and I underline that, to own America's priceless assets should be anathema. But the same people who advocate less U.S. Government involvement surely cannot support the meddling of undemocratic governments such as Abu Dhabi in buying up America's assets.
U.S. Treasury Secretary Paulson went to Abu Dhabi earlier this month to put stardust on the state of the U.S. economy, assuring the Sheik that the United States encourages these types of foreign government investments and buyouts, even while the Secretary advocates a smaller role for the U.S. Government in our own country. Does this make any sense?
Abu Dhabi's investments are particularly alarming, because in addition to the Authority and Council being state-run and perhaps the largest such funds in the world, they are among the least transparent sovereign wealth funds. According to the Sovereign Wealth Fund Institute, there is a ranking of the transparency of who really owns these funds and whose money is in there and what is that money doing.
Abu Dhabi and the UAE are at the very bottom, at the very bottom. They are the least transparent of global sovereign wealth funds. The Authority in particular has a reputation for intense secrecy, without even an internal communications department. The fund is state-run and ``does not answer to a wide public at home,'' said David L. Mack, a former United States Ambassador to the United Arab Emirates.
How would this fund stand up to the regulations we have in place here in our own country? Would this fund be legal in the United States? How is this fund supportive of democratic principles? Abu Dhabi and the UAE are not democratic places. Without even asking these questions, this oil-hungry administration courts these investors personally.
Of course, sovereign wealth funds are not just in the UAE. Kuwait, Qatar and Boston Properties purchased the GM Building earlier this week. Do you see the pattern? Nor are these funds limited to the oil-rich Middle Eastern countries. In fact, one of the largest funds is Norway's. But that country, a democracy, has perhaps the most transparent and conventional investment strategy. They are at the top in terms of transparency and normal Western business and law practices.
China, Saudi Arabia and many funds, such as those of the UAE, invest unconventionally, are very secret. They are not transparent, even when countries like Norway set an example of responsible investment.
As our trade deficit swells even more, in April it deepened even more, to $60.9 billion in one month, America cannot afford to sell off any more of our country. We need to reduce our dependency on oil, balance our trade accounts and invest in our own country so that undemocratic and secretive foreign governments do not buy out our heritage. We need to recapture America's independence and stand on our own two feet again. It will require sacrifice and discipline and responsibility.
Freedom's clock is really ticking for this generation. Are we going to hear it? Are we going to hear it?
Mr. Speaker, I include the June 11, 2008, New York Post article entitled ``Chrysler Building on the Block'' for the Record.
This data was obtained from the C-SPAN
read more: CSPAN
6/17/2008
The large banking institutions of the world continue to seek capital to sustain their operations. British bank, Barclays looks to some Asian sovereign wealth to raise 4 billion pounds. According to the Times, "it is thought that at least six potential investors are in talks with Barclays and it is likely that three of these interested parties will be selected. The first opportunity is being offered to the China Development Bank and Temasek, a Singaporean government investor. Both of these funds have already bought shares in the British bank at a price far higher than 318p and are sitting on big paper losses."
read more: The Times
6/12/2008
Hosted by the CFA Society of Sacramento and the Sovereign Wealth Fund Institute
21 August 2008
CalPERS
Sacramento, CA, United States
The event will be held at CalPERS in Sacramento, CA. Topics such as the origins of sovereign wealth will be covered and how they continue to influence the global capital markets. Current trends, such as asset allocation and SWF behavior will also be touched. And lastly, transparency issues of the sovereign market will be covered.This is an information session that will be around 1 hour long that will be open to Q&A afterwards. Admission is free but space is limited.
We would also like to give thanks for the CFA Society of Sacramento for working with us.
If you wish to attend please email us at: swfinstitute@swfinstitute.org
Please RSVP before July 12, 2008 and put Sacramento Event in the subject line.
Who might want to attend
- Sovereign wealth fund representatives
- Government officials
- Chief investment officers
- Senior portfolio managers and analysts
- Private equity professionals
- Academics
read more: Sacramento Event
6/11/2008
Commenting on the Linaburg-Maduell Transparency Index rating of Mumtalakat Holding Company, Shaikh Mohammed bin Essa Al-Khalifa, Chief Executive of the Bahrain Economic Development Board (EDB), said 'In this current economic climate, openness in all areas of finance is essential to drive investor confidence. This endorsement of Mumtalakat from the Sovereign Wealth Fund Institute is a strong reflection of what Bahrain offers as a transparent and well regulated finance centre.' Talal Al Zain, Chief Executive of Bahrain Mumtalakat Holding Company, commented 'Mumtalakat has always been open and transparent in its holdings and investment strategy. We remain committed to expanding the company's investments internationally whilst demonstrating our commitment to the highest standards of transparency and accountability.'
read more: AME Info
6/11/2008
read more: Transparency Index
6/9/2008
Sources: BP Statistical Review of World Energy June 2007, Sovereign Wealth Fund Institute
6/5/2008
The Mubadala Development Company gets a 6 in transparency rating as they continue to provide the Public with information regarding portfolio holdings, an informative website, and contact information.
read more: Linaburg-Maduell Transparency Index
6/4/2008
According to IR Magazine, a leading investor relations publication, "The perception of SWFs may improve in the future. 'I think that CEOs and management will actually like SWFs because they tend to be long-term investors,' says Michael Maduell, founder of the Sovereign Wealth Fund Institute. 'Historically they have taken a non-voting position and, if faced with what seems to be a sensitive investment to the host country, they will take non-voting shares.'"
read more: IR Magazine
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