Central Banking
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. ]


Taiwan Central Bank: FX Reserves Not for Sovereign Wealth Fund

Taiwan’s central bank, Central Bank of the Republic of China (Taiwan), said it would not be appropriate to transfer the country’s foreign exchange reserves into a sovereign wealth fund. As of June 2014, Taiwan’s foreign exchange reserves stood at US$ 423.45 billion. The central bank stated that 71% of those reserves are allocated to domestic [...]


Huarong Attracts Goldman Sachs and Khazanah Nasional

China Huarong Asset Management Co. is finalizing on a deal to sell an approximate a 20% stake to a group of investors which include Goldman Sachs and Malaysia’s Khazanah Nasional for US$ 2 billion. Huarong, one of China’s four asset management firms created in 1999, is looking forward to a future initial public offering and [...]


Oman Looks to Protect its Investment in Bulgarian Bank

Oman’s State General Reserve Fund (SGRF) is playing a pivotal role in the world of Bulgarian banks. The SGRF is reaching out to other large shareholders to put together a plan to help Bulgaria’s Corporate Commercial Bank – #4 bank in the country by assets. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers [...]


BRICS Making a Bank, RDIF Gets Involved

The BRICS (Brazil, Russia, India, China and South Africa) nations are making their own bank – countering the influence of the International Monetary Fund (IMF). The BRICS member nations have been disappointed with the non-implementation of the 2010 IMF reforms. Leaders of the nations signed an agreement to create the New Development Bank (NDB) to [...]


Academic-Led Study Says Professors on Boards Help Performance

Are corporate directors from the academic world effective board members? A discussion paper concludes that companies that have directors from the academic world (specifically non-administrative academics) are associated with higher performance. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Sovereign Wealth Funds and Russia

REBOUND: Foreign Institutional Investors Buy More of Moscow Exchange

The Central Bank of Russia is selling a stake of the Moscow Exchange to a consortium of institutional investors led by the Russian Direct Investment Fund (RDIF). The RDIF was a cornerstone investor in the Moscow Exchange’s initial public offering back in February 2013. Institutional Investors [ Content protected for Sovereign Wealth Fund Institute Standard [...]


Stronger Ties: Singapore PM in US for Strategic Economic Talks

On June 23, Singapore Prime Minister Lee Hsien Loong met with U.S. Commerce Secretary Penny Pritzker to talk about investment opportunities in America that Singapore can partake in. Both of Singapore’s sovereign wealth funds, Temasek Holdings and GIC Private Limited, are active direct institutional investors in North America.[ Content protected for Sovereign Wealth Fund Institute [...]


Friday SWFI News Roundup, June 20, 2014

bcIMC Posts 14.7% Return The British Columbia Investment Management Corporation (bcIMC) posted a 14.7% return for its investments ending the fiscal year on March 31. Assets were boosted to US$ 105.3 billion. “Overweighting global equities and underweighting fixed income were the main drivers of the double-digit returns,” said Doug Pearce, CEO and chief investment officer, [...]


oil

Saudi Arabia Looks to Formalize Reserve-Like Sovereign Wealth Fund

The Saudi Arabian Monetary Agency (SAMA) manages hundreds of billions of dollars in foreign currency reserves. The Kingdom of Saudi Arabia is seeking to formalize a sovereign wealth fund. The proposed fund, National Reserve Fund, will be discussed by the Majlis as-Shura, the consultative assembly of Saudi Arabia. The draft law is under debate. The [...]


Central Bank of Ecuador Loans Gold to Goldman Sachs for Liquidity

Being short on cash, the Central Bank of Ecuador has inked an agreement to move more than 50% of its physical gold reserves to Goldman Sachs Group Inc. In return, the government of Ecuador will get “highly-secure and liquid instruments” that are expected to generate between US$ 16 million to US$ 20 million over the [...]


sovereign wealth

Top JP Morgan Exec Talks Sovereign Wealth Funds

In New York, at the UBS Global Financial Services Conference on May 21st, Mary Erdoes, CEO of Asset Management for JP Morgan Chase & Co., highlighted emerging market equity as a popular focus for sovereign wealth fund asset allocation. Erdoes also drew a comparison between trends in sovereign wealth allocation and demand for JP Morgan’s [...]


Propping Up: LIA Plans to Invest Billions in Local Bourse

The Libyan Investment Authority (LIA) wants to invest its billions in the local stock market. Specifically, the Libyan Local Investment and Development Fund (LLIDF), created by the LIA and Libyan’s central bank, will invest in stocks listed on the stock exchange to increase liquidity to help lure foreign investors. With some share prices of companies [...]


Local Opportunities: Oman Launches New SME Fund

The government of Oman is launching a new national fund to help spur the growth of small and medium enterprises (SMEs). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Sovereign Wealth Funds Gamble on Greek Banking Recovery

Athens-based National Bank of Greece SA raised €2.5 billion in equity share capital at a price of €2.20 per share. All shares were sold to foreign investors – being oversubscribed more than twice. Major institutional investors participated in the capital increase including Pimco, BlackRock, Fidelity Investments, York Capital and funds managed by billionaire George Soros. [...]


Citi Wins Custodian Business for Norway’s Sovereign Wealth Fund

Citi, the fourth biggest custodian in the world, won a deal to be the custodian of the world’s largest sovereign wealth fund – Norway’s Government Pension Fund Global (GPFG). Financial institutions providing custodian services for sovereign wealth funds are figuring out these clients have tailored needs, due to SWF activity in numerous countries and the [...]


Pakistan Raises $2 Billion in Eurobonds

The government of Pakistan has raised US$ 2 billion in international debt markets by issuing Eurobonds in terms of 5 years and 10 years. The offering was oversubscribed (over 400 orders) receiving US$ 5.2 billion in offers – it was the biggest single amount the government of Pakistan has ever raised. However, according to Moody’s, [...]


Deep Dive with Charlie Welsh, Co-Founder of Mergermarket

This interview will appear in the 1Q Y2014 (April 2014) issue of the Sovereign Wealth Quarterly. This is a deep dive with Charlie Welsh, Co-Founder of Mergermarket 1. As co-founder of the Mergermarket Group, what is one lesson that should be learned about the current M&A environment in Asia? In recent years China’s foreign investment [...]