Central Banking

SWFI First Read, March 25, 2017

Bloomberg Reports QIA to Move Domestic Assets to Qatar MoF Bloomberg reported the Qatar Investment Authority (QIA) will move roughly US$ 100 billion of its domestic portfolio to Qatar’s Ministry of Finance. SWFI cannot guarantee the accuracy of this move and is awaiting confirmation. UK FCA Reignites Investigation Regarding Barclays and Qatar The U.K. Financial […]


Once Scorned, Sovereign Investors Take Another Look at U.S. Banks

Remember when sovereign funds bailed out many of the large global banks during the 2007-2008 financial crisis. For several wealth funds, such as the Korea Investment Corporation (KIC), the massive bank bailouts have been a drag on annual portfolio performance. The Abu Dhabi Investment Authority (ADIA) even pursued litigation over Citigroup regarding its US$ 7.5 […]


Federal Reserve Hikes Rates for Third Time in 11 Years

In a move widely anticipated by global financial markets, the U.S. Federal Reserve decided to raise its benchmark lending rate a quarter point. This takes the overnight funds rate to a target of 0.75% to 1%. In addition, the Federal Reserve signaled two more interest rate increases this year. [ Content protected for Sovereign Wealth […]


Are Sovereign Wealth Funds Ready for Inflation?

Animal spirits have been released with the promise of less regulation, giving institutional investors renewed confidence in both stock and bond markets. Instead of just guessing what central banks are going to do, a number of sovereign investors are analyzing various real economies, collecting industrial data and studying growth projections. In fact, the gigantic Abu […]


SWFI Institutional Investor Forum 2017 – Scottsdale Slider 15

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SWFI First Read, March 7, 2017

PCA Quits Private Equity Consultant Contract at CalPERS, Retains Others The California Public Employees’ Retirement System (CalPERS) swiftly appointed Meketa Investment Group as the pension giant’s new private equity consultant. Meketa will advise on a massive, complex private equity portfolio. This move occurred when the Pension Consulting Alliance (PCA) abruptly resigned in the midst of […]


Mexican Debt Presents an Opportunity for Sovereign Wealth Funds

The Mexican peso had been bruised since the culmination of Donald Trump’s U.S. presidential victory on worries of trade flow changes and a border tax. The Mexican economy is highly-reliant on the United States for exports with trade renegotiations of North American Free Trade Agreement (NAFTA) being a center issue for the united Mexican states. […]


Bangladesh’s Aspiration for a Sovereign Wealth Fund

Bordering India, Bangladesh is a nation of 160 million people. The Bangladesh government artfully decided and gave initial approval to have a sovereign wealth fund for the country with authorized capital of US$ 10 billion. The matter was discussed at a cabinet meeting chaired by Bangladesh Prime Minister Sheikh Hasina. [ Content protected for Sovereign […]


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More Companies Held by Treasury Transferred to New Turkish Sovereign Fund

According to Turkey’s official gazette, the Turkish government transferred its ownership stakes in a number of holdings to its new sovereign wealth fund called Turkey Asset Management Company, also known as Türkiye Varlık Fonu Yönetimi Anonim. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Central Bank of Venezuela Names Legislator as New Governor

The Central Bank of Venezuela, also known as Banco Central de Venezuela (BCV) has a new governor. Venezuela President Nicolas Maduro named Ricardo Sanguino as the new central bank governor, replacing Nelson José Merentes Díaz (Nelson Merentes). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


SWFI – Movers and Shakers – January 21, 2017

BREXIT EXPERT HIRE #1: BlackRock Names Former UK Chancellor Osborne as Senior Adviser George Osborne, the former U.K. Chancellor of the Exchequer, is joining the BlackRock Investment Institute as a part-time senior adviser in February 2017. As of December 31, 2016, BlackRock manages US$ 5.1 trillion in assets. In a statement, BlackRock CEO Larry Fink […]


Bank of Korea Entrusted KIC with $5 Billion in 2016

In a show of confidence, the Bank of Korea, the country’s central bank, had allocated US$ 5 billion to the Korea Investment Corporation (KIC) to manage back in 2016. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


london

Financial Stability Board Publishes Policy Recommendations for Asset Managers

The growth of alternative investments has added diversity to the financial system, but at the same time increasing greater complexity. Basel-based Financial Stability Board (FSB) published its Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities. The FSB is chaired by Mark Carney, Governor of the Bank of England. [ Content protected for Sovereign […]


SOFAZ to Transfer $4 Billion for Currency Stabilization Purposes

A predicted increase in U.S. interest rates is wrecking havoc in countries such as Turkey and Azerbaijan. Azerbaijan President Ilham Aliyev issued a decree to transfer up to 7.5 billion manat (US$ 4 billion) of assets from the State Oil Fund of Azerbaijan (SOFAZ) to the Central Bank of the Republic of Azerbaijan in 2017. […]


Oman Explores Idea of GCC Peers to Deposit Dollars into Central Bank

Oman’s Ministry of Finance is working with its Gulf Arab counterparts on receiving a multi-billion dollar deposit into its central bank. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Chinese Foreign Reserves End Year Slightly Above $3 Trillion

China policymakers appear to be preferring implementing capital controls in the country instead of blazing through their massive pool of foreign exchange reserves to guard the yuan. For example, the Chinese government increased paperwork for the country’s citizens seeking to use their annual US$ 50,000 foreign exchange maximum. More strict capital controls could be underway. […]


SELF FINANCING: $5 Billion in Venezuelan Bonds

Venezuela is one country where almost zero sovereign wealth capital flows into versus its neighbor Brazil, according to SWFI transaction data. One-time Latin American paradise, Venezuela is on the brink of utter chaos, as inflation heads for 1000%. Venezuela at one point had some of the largest oil reserves in the world and at one […]


3 Considerations in Liquidity Management for Sovereign Funds

Sovereign investors and central bank reserve managers continually monitor price trends in exports, commodities and other macro-level inputs, as these factors can have a material impact on liquidity management strategies. On the sovereign wealth front, some of these institutional investors have a wide range of liabilities depending on government policy, applicable withdrawal legislation, funding sources […]


Friday SWFI News Roundup, December 30, 2016

BIG DEAL: RBI Approves Fairfax Financial’s Bid to Buy Domestic Indian Bank The Reserve Bank of India (RBI) approved Canadian billionaire Prem Watsa’s Fairfax Financial Holdings Ltd. ‘s bid to acquire a 51% ownership stake in Thrissur, Kerala-based Catholic Syrian Bank Ltd. This is a milestone deal because this is the first time the RBI […]


AGAIN: BOJ on Target to Become Largest Purchaser of Japanese ETFs

According to data by the Bank of Japan (BOJ), the central bank is on track to become the largest purchaser of Japanese exchange-traded funds (ETF) in 2016. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]