Central Banking

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 [...]


HKMA, CPPIB Win QFII Quotas from SAFE

China’s State Administration of Foreign Exchange (SAFE) awarded additional qualified foreign institutional investor (QFII) quotas of US$ 1 billion and US$ 600 million to Hong Kong Monetary Authority (HKMA) and Canada Pension Plan Investment Board (CPPIB), respectively. The increased quotas may signal that these two public institutional investors have plans to increase their exposures to [...]


EIA Chief Mansouri to be New Governor of UAE Central Bank

Mubarak Rashid al-Mansouri, the CEO of Emirates Investment Authority (EIA), has been chosen to be the new Governor of the UAE Central Bank. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


SWFI – Movers and Shakers – September 22, 2014

Charles Plosser to Retire Philadelphia Federal Reserve President Charles Plosser is set to retire. He has been a vocal critic of quantitative easing. He will leave the FOMC in March 2015. Plosser was an economics professor at the University of Rochester and former dean of the University of Rochester Simon Business School. He was the [...]


Libya’s New Majlis al-Nuwaab Fires Central Bank Governor

Libya’s Majlis al-Nuwaab or known in the West as “House of Representatives”, which is exiled in the Eastern city of Tobruk, has fired the central bank governor on September 14, 2014. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Moving Forward: Congo’s Determination to Create a Sovereign Wealth Fund

Staff members at the International Monetary Fund (IMF) urged Congo government officials to work with the Bank of Central African States (BEAC) to achieve agreement on reserve management policies. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Albania’s Central Bank Governor Arrested at Office Over Theft Fiasco

On September 5, 2014, Albania’s central bank governor Ardian Fullani was arrested that evening at his office. Albanian prosecutors charged Fullani with “abuse of office” and theft of more than 713 million lek (US$ 6.63 million) from the central bank’s vaults. The theft was reported during the summer. Fullani is the 17th Bank of Albania [...]


CME Heavily Targeting Central Banks

Increasingly, American exchanges are pursuing non-traditional sources of money, such as overseas central banks and sovereign wealth funds. The drastic drops in exchange trading volumes for cash products has caused these exchanges to refocus parts of their marketing efforts. Read Modifications to Central Bank Incentive Program – CME Group [ Content protected for Sovereign Wealth [...]


emerging markets sovereign wealth funds

RDIF Anticipates Possible Effects of Western Sanctions

In the not so distant past, the Russian Direct Investment Fund (RDIF) has been strategically forming investor alliances in both the East and the West. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Central Huijin Takes a Gander at Euro Banks

State-owned Central Huijin Investment Ltd. is looking to expand its holdings toward European bank investments. Central Huijin vice-chairman Li Jiange made the comment on September 3, 2014 at a banking conference in Germany. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


How Zimbabwe Will Try to Restore Stability to the Financial Sector

Zimbabwe, a country with no currency, is struggling to keep its financial sector afloat. After battling hyperinflation, the U.S. dollar and South Africa rand are the most commonly-used currencies in the African nation. Zimbabwean banks were loose with lending capital to local businesses after the country began heavily adopting foreign currency as tender.[ Content protected [...]


Bulgarian National Bank Wants Rescue Plan By End of August

Bulgarian National Bank, the central bank of Bulgaria, demanded the two largest shareholders of Corporate Commercial Bank (Corpbank) to develop plans for a bank rescue by the end of August. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


BlackRock NY

BlackRock Institute Names Boivin as Deputy Chief Investment Strategist

The BlackRock Investment Institute, a research platform of BlackRock Inc., nominated Jean Boivin as deputy chief investment strategist. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Can Institutional Investors Rely on Equities for Income?

The drawn-out low-yield environment has frustrated institutional investors to the point of them allocating capital again to leveraged loans, mortgage-backed securities and private debt securities. PIMCO founder Bill Gross’ August 2014 investment outlook, “Goodnight Vietnam“, highlighted that, “Capital gains from almost all asset classes are approaching dusk. Low but relatively dependable income will be the [...]


IMF Thinks Macau Needs a Sovereign Wealth Fund

The International Monetary Fund (IMF) keenly believes Macau should have a sovereign wealth fund to protect itself from economic and social headwinds. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]