Central Banking

CASHING IN: Central Huijin Slightly Reduces Bank Exposure

Central Huijin Investment Ltd., a sovereign wealth enterprise (SWE) of the China Investment Corporation (CIC), revealed on May 26th that it sold 280 million Shanghai-listed A shares in China Construction Bank (CCB), cutting its ownership from 5.05% to 2.14%. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. [...]


factor investing growth

Bank of Taiwan and Northern Trust Sign MoU on Custody Collaboration

Northern Trust sees the Asia-Pacific corridor as the fastest growing region for the company. Increasingly, East Asian pension funds are being permitted by regulatory bodies to invest overseas. The custodial giant is also trying to compete against rivals State Street and BNY Mellon in Taiwan. In July 2012, Taiwan’s National Pension Insurance Fund appointed BNY [...]


Negative Rates in Europe, Shifted Sovereign Fund Behavior

Asian and Middle Eastern sovereign wealth funds and large pension investors have been awarding a slurry of mandates to opportunistic credit managers. For example, in May, the £4.8 billion London Pensions Fund Authority hired Apollo Global Management for a £150 million allocation to target distressed debt, real estate debt, leveraged senior loans and private lending [...]


UniCredit and Libyan Investment Authority Reestablish Ties

Italian banking giant UniCredit SpA is reestablishing ties with the Libyan Investment Authority (LIA) and other governmental entities in Libya. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Sovereign Wealth Funds and Russia

RDIF and CITIC to Form Russia-China Investment Bank

The Russian Direct Investment Fund (RDIF) is working with CITIC Merchant, a wholesale merchant banking business unit of CITIC Group, on forming a joint investment bank. The proposed Russia-China investment bank will help Russian corporations raise money in Asia. Some of the investment banking services the bank will conduct are: mergers and acquisitions advisory, with [...]


5 Risks Keeping Sovereign Wealth Funds Up at Night

#5. Sustained Low Range of Oil Prices Sustained low prices of oil are affecting the funding input levels of commodity-based sovereign wealth funds. These current fossil fuel prices are economically squeezing countries like Russia, Saudi Arabia, Venezuela and Iran in harmful ways. Economists, pundits, energy CEOs and policymakers are trying to get a grasp on [...]


PREVENT CAPITAL FLIGHT: Greece Enacts Desperate Measures

Greece will be charging people at cashpoint withdrawals and financial transactions in a bid to prevent a hemorrhaging of capital racing out of Greek banks. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


KIA

Kuwait Investment Authority Strengthens Regional Influence

In April 2015, Abdul-Karim Suleiman, Egypt’s Ambassador to Kuwait, said to media in the Gulf that Kuwait deposited US$ 2 billion in the Central Bank of Egypt. The money came from the Kuwait Investment Authority (KIA). Supposedly in total, Egypt has been expecting US$ 6 billion worth of central bank deposits from Saudi Arabia, Kuwait, [...]


PIMCO Retains Bernanke as Senior Advisor

Pacific Investment Management Co. (PIMCO) has hired former Federal Reserve Chairman Ben Bernanke as a senior adviser. Suffering from record redemptions, PIMCO is looking to retain assets and provide its clients with the ultimate insight – view’s from a former Fed top dog. In the past, PIMCO relied on its founder Bill Gross for expertise [...]


Plans for Macau Sovereign Wealth Fund Set for 4Q 2015

Anselmo Teng Lin Seng, chairman of the Monetary Authority of Macau, expects to have plans for a sovereign wealth fund laid out by the fourth quarter of 2015. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Russian FinMin Siluanov Warns Large Deficit Could Consume Reserves

Russian state-owned companies have lobbied the Kremlin for “loans and capital injections” from the country’s two large sovereign wealth funds, the National Welfare Fund and Reserve Fund. Western sanctions have affected Russian state-owned enterprises (SOE) from tapping Western capital markets for funding. Russian Finance Minister Anton Siluanov warned that Russia could use up all of [...]


CCB Epic: Oman SGRF Takes Legal Action Against Bulgaria

One of Oman’s sovereign wealth funds is taking legal action against the Bulgarian government, specifically its central bank, Bulgarian National Bank (BNB). Oman’s State General Reserve Fund (SGRF), through Bulgarian Acquisition Company II S.a.r.L, held a 30% interest in Corporate Commercial Bank (CCB). The SGRF was a major shareholder in the Bulgarian bank. [ Content [...]


Singapore Sovereign Wealth to Back Myanmar Microfinancing

One of Temasek Holdings’ investment themes is investing in transforming economies and selecting sectors that will prosper from a growing middle class. Financial services is a sector that is underrepresented in many Asian emerging markets like India and Vietnam. Fullerton Financial Holdings, a sovereign wealth enterprise (SWE) of Temasek Holdings, has entered into a nascent [...]


Citadel Hires Bernanke as Senior Adviser

Former Federal Reserve Chairman Ben S. Bernanke has agreed to advise Citadel, a hedge fund founded by billionaire Kenneth C. Griffin. Bernanke was the face of the Federal Reserve for eight years, spanning February 2006 to January 2014. During his tenure at the central bank, he presided over the 2008 global financial crisis, an enormous [...]


SHIFT: RidgeWorth to Target Sovereign Funds and Official Institutions

Atlanta-based RidgeWorth Investments, through its unit RidgeWorth International Ltd, is making a move to engage sovereign wealth and overseas public funds to boost assets under management. The asset manager is in the midst of redefining its marketing strategy after being spun off from SunTrust Banks. In late 2013, RidgeWorth Investments split from SunTrust Banks, selling [...]


NZSF Files Portuguese Legal Proceedings Regarding Oak Finance Investment

The New Zealand Superannuation Fund (NZSF) announced it has filed legal proceedings in Portuguese courts against the Bank of Portugal – the country’s central bank. The sovereign fund is trying to recover US$ 150 million. According to a press release, the proceedings “challenge the validity of a Bank of Portugal decision which purported to ‘clarify’ [...]


BEPS tax

AMERICA PULLS BACK: China Moves to Fill Economic Void

Since the aftermath of the global financial crisis, America’s overseas economic power has increasingly waned. Lower gross domestic product (GDP), expensive decade-plus wars, higher unfunded liabilities and anemic employment figures have negatively affected America’s economic reach. Larry Summers, who served two U.S. Presidents (Clinton and Obama), opined on the country stating that its “losing its [...]


roads

Euroclear Collateral Highway Clears €1 Trillion Mark

Near March’s end, Euroclear witnessed daily collateral outstanding peak at €1 trillion on its flagship Collateral Highway. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Friday SWFI News Roundup, March 27, 2015

TRS Delivers 8.51% for 2014 Return The Teacher Retirement System of Texas posted an 8.51% return for 2014, beating its policy index by 0.04%. The highest performing asset class for the pension system was stable value which posted 21.4%. Real return asset class posted 10.2%, followed by risk parity at 8.1% in return. Directional hedge [...]


YELLEN: Rate Increases Cannot be Ruled Out

Federal Reserve Chair Janet Yellen calmly stated at a press conference that a rate increase in June cannot be ruled out. Yellen added for the Federal Reserve to raise rates, there must be “further improvement in labor markets,” and inflation will need to go back to its 2% target over the medium term. The Federal [...]