Central Banking

Kuwait Parliament Analyzes Options Regarding Deficit

Last week, Kuwait’s parliament approved a state budget, giving the country a budget deficit of 8.18 billion KWD (US$ 27 billion). With slashed export earnings, low oil prices have negatively affected the state’s finances. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Greek Voter Majority Rejects Bailout Referendum

With nearly all ballots tabulated, results from the Greek referendum show voters strongly rejected the terms of an international bailout. Greece’s interior ministry posted figures of 61% voting “No” and 39% voting “Yes”. Syriza, the governing party of Greece, campaigned for a “No” to voters. Greek Prime Minister Alexis Tsipras addressed his country on television [...]


FinMin Wants to End Bank of Ghana Management Fees for Petroleum Funds

The Bank of Ghana, the country’s central bank, manages and holds the nations’ petroleum account and transfers funds to the finance ministry. Ghana’s Deputy Finance Minister Cassiel Ato Baah Forson has informed that the government will halt the paying of management fees to the Bank of Ghana in regard to the management of the Ghana [...]


SAFE Investment Company Expanded Equity Allocation to Italy

SAFE Investment Company operates as an investment arm of China’s State Administration of Foreign Exchange (SAFE). SAFE is controlled by the People’s Bank of China. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Greece Defaults on Debt

Greece has become the first developed country to technically default on its debt or fall into arrears on payments to the International Monetary Fund (IMF) since 2001. Zimbabwe fell into arrears in 2001. Greece passed through the midnight deadline for repayment of the €1.6 billion bundled loans due to the IMF. Playing brinkmanship politics, Greece [...]


CSRC Approves QFII Quota for Brunei Investment Agency

The China Securities Regulatory Commission (CSRC) added four more organizations to the large list of 285 firms approved in the Qualified Foreign Institutional Investors (QFII) program. One of those newly-added organizations is the Brunei Investment Agency (BIA) – the country’s only sovereign wealth fund. Increasingly, sovereign wealth funds, pensions and other institutional investors want more [...]


CASHING IN: Central Huijin Slightly Reduces Bank Exposure

Central Huijin Investment Ltd., a sovereign wealth enterprise (SWE) of the China Investment Corporation (CIC), revealed on May 26th that it sold 280 million Shanghai-listed A shares in China Construction Bank (CCB), cutting its ownership from 5.05% to 2.14%. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. [...]


factor investing growth

Bank of Taiwan and Northern Trust Sign MoU on Custody Collaboration

Northern Trust sees the Asia-Pacific corridor as the fastest growing region for the company. Increasingly, East Asian pension funds are being permitted by regulatory bodies to invest overseas. The custodial giant is also trying to compete against rivals State Street and BNY Mellon in Taiwan. In July 2012, Taiwan’s National Pension Insurance Fund appointed BNY [...]


Negative Rates in Europe, Shifted Sovereign Fund Behavior

Asian and Middle Eastern sovereign wealth funds and large pension investors have been awarding a slurry of mandates to opportunistic credit managers. For example, in May, the £4.8 billion London Pensions Fund Authority hired Apollo Global Management for a £150 million allocation to target distressed debt, real estate debt, leveraged senior loans and private lending [...]


UniCredit and Libyan Investment Authority Reestablish Ties

Italian banking giant UniCredit SpA is reestablishing ties with the Libyan Investment Authority (LIA) and other governmental entities in Libya. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Sovereign Wealth Funds and Russia

RDIF and CITIC to Form Russia-China Investment Bank

The Russian Direct Investment Fund (RDIF) is working with CITIC Merchant, a wholesale merchant banking business unit of CITIC Group, on forming a joint investment bank. The proposed Russia-China investment bank will help Russian corporations raise money in Asia. Some of the investment banking services the bank will conduct are: mergers and acquisitions advisory, with [...]


5 Risks Keeping Sovereign Wealth Funds Up at Night

#5. Sustained Low Range of Oil Prices Sustained low prices of oil are affecting the funding input levels of commodity-based sovereign wealth funds. These current fossil fuel prices are economically squeezing countries like Russia, Saudi Arabia, Venezuela and Iran in harmful ways. Economists, pundits, energy CEOs and policymakers are trying to get a grasp on [...]


PREVENT CAPITAL FLIGHT: Greece Enacts Desperate Measures

Greece will be charging people at cashpoint withdrawals and financial transactions in a bid to prevent a hemorrhaging of capital racing out of Greek banks. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


KIA

Kuwait Investment Authority Strengthens Regional Influence

In April 2015, Abdul-Karim Suleiman, Egypt’s Ambassador to Kuwait, said to media in the Gulf that Kuwait deposited US$ 2 billion in the Central Bank of Egypt. The money came from the Kuwait Investment Authority (KIA). Supposedly in total, Egypt has been expecting US$ 6 billion worth of central bank deposits from Saudi Arabia, Kuwait, [...]


PIMCO Retains Bernanke as Senior Advisor

Pacific Investment Management Co. (PIMCO) has hired former Federal Reserve Chairman Ben Bernanke as a senior adviser. Suffering from record redemptions, PIMCO is looking to retain assets and provide its clients with the ultimate insight – view’s from a former Fed top dog. In the past, PIMCO relied on its founder Bill Gross for expertise [...]


Plans for Macau Sovereign Wealth Fund Set for 4Q 2015

Anselmo Teng Lin Seng, chairman of the Monetary Authority of Macau, expects to have plans for a sovereign wealth fund laid out by the fourth quarter of 2015. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Russian FinMin Siluanov Warns Large Deficit Could Consume Reserves

Russian state-owned companies have lobbied the Kremlin for “loans and capital injections” from the country’s two large sovereign wealth funds, the National Welfare Fund and Reserve Fund. Western sanctions have affected Russian state-owned enterprises (SOE) from tapping Western capital markets for funding. Russian Finance Minister Anton Siluanov warned that Russia could use up all of [...]


CCB Epic: Oman SGRF Takes Legal Action Against Bulgaria

One of Oman’s sovereign wealth funds is taking legal action against the Bulgarian government, specifically its central bank, Bulgarian National Bank (BNB). Oman’s State General Reserve Fund (SGRF), through Bulgarian Acquisition Company II S.a.r.L, held a 30% interest in Corporate Commercial Bank (CCB). The SGRF was a major shareholder in the Bulgarian bank. [ Content [...]


Singapore Sovereign Wealth to Back Myanmar Microfinancing

One of Temasek Holdings’ investment themes is investing in transforming economies and selecting sectors that will prosper from a growing middle class. Financial services is a sector that is underrepresented in many Asian emerging markets like India and Vietnam. Fullerton Financial Holdings, a sovereign wealth enterprise (SWE) of Temasek Holdings, has entered into a nascent [...]


Citadel Hires Bernanke as Senior Adviser

Former Federal Reserve Chairman Ben S. Bernanke has agreed to advise Citadel, a hedge fund founded by billionaire Kenneth C. Griffin. Bernanke was the face of the Federal Reserve for eight years, spanning February 2006 to January 2014. During his tenure at the central bank, he presided over the 2008 global financial crisis, an enormous [...]