Central Banking

A Cautionary Tale in Cyprus

A paradise for European tourists, Cyprus has been a never-ending nightmare for depositors and bondholders of local financial institutions. For quite some time, before the island’s financial crisis, Cyprus has marketed itself as an offshore financial center, aka tax haven. Between 2004 and 2010, Cyprus banks grew to 9x gross domestic product, a trait similar [...]


RISK: China’s Selling Treasuries to Help Fund Yuan Stabilization

China is at serious risk of burning tens of billions of foreign reserves to keep the yuan stabilized. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Central Huijin Buys Shares, Aims for Stabilization

In recent days, Central Huijin Investment, a sovereign wealth enterprise of the China Investment Corporation (CIC), increased ownership in a number of Chinese companies. Some Central Huijin Purchases Date Company A Shares Bought in Millions Ownership August 18, 2015 Agricultural Bank of China 1,255 44.64% August 18, 2015 New China Life Insurance 28.249 32.24% August [...]


SWFI – Movers and Shakers – August 19, 2015

Ex-Goldman Sachs Vice-Chair Named Dallas Fed Chief On August 17th, The Federal Reserve Bank of Dallas named Robert Steven Kaplan its president and chief executive, effective September 8, 2015. Kaplan replaces Richard Fisher who retired in March 2015. Kaplan is a professor of management practice and a senior associate dean at Harvard Business School (HBS). [...]


Malaysia’s Ministry of Finance Sells Ownership in Bursa Malaysia

On July 29, 2015, Malaysia’s Ministry of Finance, through its investment arm, sold its entire ownership interest in Bursa Malaysia Berhad to Kumpulan Wang Persaraan (KWAP). The ministry had a 16.12% stake, 86.2 million shares, in the securities and commodity exchange operator. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe [...]


sovereign wealth india

Bangladesh to Ponder Sovereign Wealth Fund

Will Bangladesh be the next South Asian country to launch a sovereign wealth fund? [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Wealth Fund Releases: The GIC Story

Source: GIC Singapore’s GIC Private Limited created a video showing its background and history. It is being released as Singapore celebrates 50 years of independence. The GIC released their annual report on July 30th to the public. Institutional Investor Profile of GIC


Why SNB Lost $51.8 Billion in 1H 2015

Swiss National Bank (SNB), the country’s central bank, reported a first half 2015 loss of 50.1 billion CHF (US$ 51.79 billion). Foreign reserve management places a high premium on capital preservation and liquidity. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Friday SWFI News Roundup, July 31, 2015

GIC a Cornerstone Investor in Syngene International Singapore’s GIC Private Limited became a cornerstone investor in Syngene International Ltd, the research and development subsidiary of Indian pharmaceutical company Biocon Ltd. Essentially, Syngene is a contract research organization. GIC kicked in Rs 25 crore, other investors such as funds managed by Morgan Stanley, Deutsche Bank and [...]


DELAY: Federal Reserve Not Ready to Let Go

Asset managers, sovereign wealth funds, pensions and other institutional investors are prepping themselves for an increase in U.S. interest rates. The question is when and today the Federal Reserve’s Federal Open Market Committee released its latest monetary policy decision – no change. The press release points out the raising of rates depends on the incoming [...]


Fundo Soberano do Brasil Sold Shares in Banco do Brasil

Fundo Soberano do Brasil (FSB), also called The Sovereign Fund of Brazil, profited 134 million BRL (US$ 39 million) from the selling of 5.625 million shares of Banco do Brasil SA between the period of June 29 through July 15. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view [...]


roads

Euroclear Reports Increased Usage, Collateral Highway Expands

With providers of open post-trade infrastructure like Brussels-based Euroclear embracing technology, forming joint ventures and expanding services for financial institutions, country capital markets are becoming more connected. Post-trade processing is an essential market function that verifies the details of buyers and sellers in transactions. Euroclear is the biggest international central securities depository (ICSD) in the [...]


Obama Selects Kathryn Dominguez to Fed Board

According to the White House, U.S. President Barack Obama plans to nominate Kathryn Dominguez to the Federal Reserve Board of Governors. Kathryn Dominguez is a public policy and economics professor at the University of Michigan. Earlier in her career, Dominguez had stints at the World Bank, the International Monetary Fund, and the Bank for International [...]


Friday SWFI News Roundup, July 17, 2015

China Widens Access in its Interbank Bond Market to Foreign Central Banks and Sovereign Funds The People’s Bank of China issued new rules that permit foreign central banks, sovereign wealth funds and global financial organizations the ability to no longer need pre-approval to trade bonds, interest-rate swaps and conduct repurchase agreements. These institutions would be [...]


Central Bank of Iceland Plans to Permit Pensions to Invest Overseas Again

The Central Bank of Iceland plans to lift capital controls for its domestic pensions to invest abroad again. The capital controls were put in place in November 2008 which followed Iceland’s disastrous banking crisis. Three of Iceland’s privately-owned commercial banks: Kaupthing, Landsbanki and Glitnir ended up failing during the crisis. Iceland has rebounded since the [...]


REVEALED: Libyan SWF Considered Investing in Bank of Ireland

John Corrigan, the former head of Ireland’s National Treasury Management Agency (NTMA), gave testimony at an Oireachtas banking inquiry on July 15, 2015. Corrigan confirmed the NTMA met with the Libyan Investment Authority (LIA) in December 2010. This was in regard to the LIA possibly investing €1.4 billion in Bank of Ireland. The LIA eventually [...]


Constitutional Change Passes, Temasek to Share More Income with Government

Earlier this year, the Singapore government announced publicly their plans to include Temasek Holdings as a contributor to its Net Investment Returns (NIR) framework. This would essentially transfer more of Temasek’s income into the state’s coffers. The Singapore government is augmenting spending on social and infrastructure development and programs. [ Content protected for Sovereign Wealth [...]


Gulf Sovereign Wealth Funds Navigate Low Oil Prices

The Kingdom of Saudi Arabia has issued its first sovereign bonds since 2007, facing a significant budget gap that exceeds 145 billion riyals (US$ 38.6 billion) according to Saudi officials. To date, over 244 billion riyals (US$ 65 billion) has been transferred out of foreign reserves in 2015 to cover deficit spending. The reason for [...]


Saudi Public Investment Fund to Allocate $10 Billion in Russia

Saudi Arabia’s Public Investment Fund (PIF) reached an agreement to invest US$ 10 billion in Russia toward investments in agricultural, infrastructure, retail, real estate and logistics for a period of up to five years. The PIF inked a deal with the Russian Direct Investment Fund (RDIF), a strategic development sovereign vehicle that co-invests with institutional [...]


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. ]