Central Banking

Syriza Wins: Will There be a Grexit?

The Coalition of the Radical Left, also known as Syriza, has won power in Greek national elections, projecting to capture 149 seats of the 300 in parliament. This win gives the far left party a major anti-austerity mandate which will put Greece at odds with the eurozone and creditors. The landslide victory punished the current [...]


3 Recent Events That Will Rock Middle East Economies

The Kingdom of Saudi Arabia and Libya are home to massive pools of cash derived from oil wealth. Both of these countries have sovereign wealth funds and other large public funds. Saudi State TV has reported Saudi King Abdullah bin Abdulaziz has passed away at the age of 91. Prince Salman, King Abdullah’s 79-year-old half-brother, [...]


Russian Central Bank Voids Ratings After March 2014

The Central Bank of Russia will no longer use credit ratings from Standard & Poor’s, Fitch Ratings, or Moody’s Investors Service that were assigned after March 1, 2014. Essentially, the central bank is using ratings from before Russia’s move into Crimea.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view [...]


SWFI – Movers and Shakers – January 11, 2015

Obama to Nominate Community Banker to Fed’s Board of Governors The White House is looking to nominate Allan Landon, a former community banker, to the Federal Reserve’s Board of Governors. Landon was chairman and chief executive of Bank of Hawaii Corporation, serving as CEO from 2004 to 2010. Landon also has experience at First American [...]


National Welfare Fund Transfers 100 Billion Rubles to VTB Bank

Russian Prime Minister Dmitry Medvedev has authorized the transfer of 100 billion rubles (US$ 1.8 billion) from the National Welfare Fund (NWF) to boost the capital of VTB Bank. The first aid tranche NWF order was signed on December 27th. The funds have been placed into a subordinated deposit to fund Russian-backed infrastructure projects. VTB [...]


Saudi FinMin Says No Need for Sovereign Wealth Fund

Saudi Arabia’s Finance Minister Ibrahim Abdulaziz Al-Assaf said there was no need for the country to create an official sovereign wealth fund to manage its oil reserves. The vast pool of petrodollars are managed by the Saudi Arabian Monetary Agency (SAMA), the Kingdom’s central bank. The majority of those assets are in liquid securities. The [...]


Sovereign Wealth Funds and Russia

Russia Analyzes Diminishing Options, Institutional Investors Brace

The Kremlin is embarking on a series of measures to counter inflation and rapid currency devaluation. The rapid fall in oil prices, coupled with Western sanctions have crippled Russia’s economy and put massive strains on its economic system. Meanwhile, oil and metal conglomerates have been hoarding hard currency. To counter this trend, Russian government officials [...]


Exclusionary Powers over Sovereign Fund Migrates from MoF to Norges Bank

The Norwegian Parliament, Stortinget, proclaimed that on January 1, 2015, Norges Bank, the central bank of Norway, will be the decision-making authority in matters concerning observation and exclusion of companies from the sovereign wealth fund. This power is being migrated from Norway’s Ministry of Finance. Thus, the Council of Ethics will advise Norges Bank. However, [...]


Central Bank of Russia Moves Key Rate to 17%

Russia’s central bank in an unprecedented move boosted its benchmark interest rate – the most since the country’s default in 1998. The announcement was made in the middle of the night. The Central Bank of Russia increased the key rate to 17% from 10.5% effective today. The repo rate was increased to 18% from 11.5%. [...]


MILESTONE: U.S. Debt Rises Over $18 Trillion

Total public outstanding for the U.S. government surpassed US$ 18 trillion. 10 years ago, on December 1, 2006, the United States had US$ 8.64 trillion in total public debt outstanding. 20 years ago, on December 1, 2006, the United States had US$ 5.29 trillion in total public debt outstanding. Sovereign wealth funds like Norway’s Government [...]


SNB Chair: No Gold Sovereign Fund if Referendum Passes

Swiss National Bank (SNB), the Swiss central bank, is facing the “Save our Swiss gold” proposal from the Swiss People’s Party (SVP) who are putting it to a plebiscite on November 30, 2014. The proposed law aims to have the SNB maintain at least 20% of its assets in gold. [ Content protected for Sovereign [...]


Lazard Senior Banker Poised for Domestic Finance Treasury Role

The White House has nominated a Lazard senior investment banker to be under secretary of the Treasury for domestic finance. U.S. President Barack Obama selected Antonio Weiss for the role. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


India deals

Institutional Investors Request India to Join Euroclear

Overseas institutional investors have been requesting India to join Euroclear to allow them easier access to Indian debt. As U.S. borrowing costs are expected to climb, Indian bonds are predicted to be an attractive asset for institutional investors. In October, the Indian government reported the slowest inflation in roughly 3 years. Indian Prime Minister Narendra [...]


China and Qatar Sign Currency Swap Agreement

Qatar is the largest supplier of liquefied natural gas (LNG) to China. LNG producers are keen on selling to Asian countries. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


ECB Selects 4 Money Managers for Asset-Backed Securities Purchase Program

The European Central Bank (ECB) selected four money managers to execute transactions for the bank’s asset-backed securities purchase program. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


2 Reasons Why Luxembourg is Important for Institutional Investors

Luxembourg’s largest employer is the financial services sector. The Grand Duchy of Luxembourg is the fund epicenter of Europe. The country boasts rigorous investor protections, while enabling flexibility in fund formations. For institutional investors such as sovereign wealth funds and pensions, a number of them have formed subsidiaries in Luxembourg. UCITS Adopter [ Content protected [...]


China Wealth Money Acquires Stake in Mediobanca

Building on stronger Italian-Chinese economic relations, during the October 14th meeting of Italian Prime Minister Matteo Renz and Chinese Premier Li Keqiang, the People’s Bank of China acquired a 2.001% share in Mediobanca S.p.A, an Italian investment bank. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


MORE STIMULATION: ECB Contemplates Purchasing Corporate Bonds

The European Central Bank (ECB) is contemplating on whether to purchase corporate bonds on the secondary market. On Tuesday, Reuters broke the story on the ECB’s consideration of corporate bond purchases. The central bank will most likely decide on the measure in December and if approved, bond purchases may begin in the first quarter of [...]


Sovereign Wealth Funds and Russia

Economic Pain: Russian Central Bank Defends the Ruble

The Central Bank of Russia publicly commented that it had conducted 72.43 billion rubles (US$ 1.8 billion) worth of foreign exchange interventions on October 15, 2014. The mission was to defend the ruble’s value. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Friday SWFI News Roundup, October 10, 2014

New Zealand Superannuation Fund Has Total Return of 19.36% for 2013-14 The New Zealand Superannuation Fund (NZSF) returned 19.36% versus the reference portfolio of 19.47% for 2013-2014. Led by NZSF CEO Adrian Orr, in the 2012-2013 period, the NZSF posted 25.83% in total return. NZSF Chairman Gavin Walker cautioned that returns over the last 5 [...]