Eye on the Money

November 2012 Update on Quarterly SWF Direct Transactions

Direct sovereign wealth fund transactions continue to hold steady through quarter 2 of 2012. Major direct SWF transactions from 2007 to 2010 with regards to large-scale bank investments have skewed the growth trend. Infrastructure and real estate sectors have greatly carried direct SWF investments in 2012. Q4 2012 is left out in this graph. Latest [...]


Kuwait Increases Contribution to Future Generations Fund

The Kuwait Investment Authority (KIA) manages the assets of Kuwait’s Future Generations Fund (FGF). In 1976, Kuwait’s Crown Prince Jaber al-Ahmed al-Jaber al-Sabah who was the deputy emir of Kuwait issued a law creating the Future Generations Fund. The FGF is savings fund for future generations where assets are invested outside of Kuwait. Investment income [...]


Update – 2005 to 2011 SWFs Target Financials, Real Estate and Infrastructure

The long-term trend for direct sovereign wealth fund investment by sector is in. Starting in 2005 until the end of 2011, the financial sector is the most targeted for direct sovereign wealth fund investment. We calculate this from our most recent database statistic of US$ 164.91 billion ending calendar year 2011. The financial sector is [...]


North Dakota is Stuffing its Coffers

The U.S. state of North Dakota gathered around US$ 1.7 billion in oil tax revenue in the past fiscal year. The energy-producing state has beaten their original forecast February 2011 and is on track to collect between US$ 3.5 billion and US$ 4 billion in the entire 2011 to 2013 biennium. The February 2011 forecast [...]


Kuwait Posts Record Budget Surplus for FY 2011-2012

The oil-rich state of Kuwait has posted a historical budget surplus of 13.2 billion Kuwaiti Dinars (US$ 47.5 billion) for fiscal year 2011 to 2012. The fiscal year ended March 31, 2012. Increases in the global price of oil, coupled with greater output contributed to the fiscal surplus. The price of a barrel of oil [...]


Tanzania Looks to Creating a Sovereign Wealth Fund

The east African country of Tanzania is on pace to become the next sub-Saharan nation that plans to set up a sovereign wealth fund based on natural resources. Currently, Sub-Saharan sovereign funds make up a small portion of the total outstanding sovereign fund investor class by assets under management. The proposed Tanzanian sovereign fund will [...]


Nigeria’s Sovereign Wealth Chugs Forward

Nigeria’s sovereign wealth funds have been a contentious political issue for the country. The direction of natural resource revenue has pitted the Nigerian Governors Forum against the Nigerian federal government. Nigeria is sub-Saharan Africa’s largest crude oil exporter. The one billion dollar authority plans to start operations in the coming months. The Nigerian Sovereign Investment [...]


Temasek Plans Dual Tranche Bond Offering

Singapore’s Temasek Holdings is planning a dual tranche bond offering through its wholly-owned subsidiary, Temasek Financial (I) Limited. The bonds will be issued by Temasek Financial (I) Limited under their US$ 10 billion Guaranteed Global Medium Term Note Program and will be fully and unconditionally guaranteed by Temasek Holdings. The offering will be comprised of [...]


Possible Future for a Peruvian 10 Billion SWF

The Latin American country of Peru is the globe’s second largest silver, copper, and zinc producer. Regards to gold producing Peru ranks number six. 60% of Peru’s exports come from mining activities. 20% of Peru’s fiscal revenues are derived from mineral reserves. It is fair to say commodity prices have a significant impact on Peru’s [...]


Iran’s Oil Ministry Taps 14 Billion from National Development Fund

In July, two days after the European Union embargo on Iranian oil took effect; Iranian Oil Minister Rostam Qasemi signed a memorandum of understanding (MoU). The MoU entailed the oil ministry to tap Iran’s National Development Fund for $14 billion which currently the fund was at $35 billion. Iranian President Mahmoud Ahmadinejad has stated the [...]


AIMCo Posts 7.9% Gross Return for the Latest Fiscal Year

The Alberta Investment Management Corp (AIMCo) which manages the Alberta Heritage Savings Trust Fund and other funds posted a 7.4% return (net of fees) on investments for the latest reported fiscal year. AIMCo performed well relative to its peers, the CPP Investment Board returned 6.6% for fiscal year 2012. Two major contributing investment return factors [...]


Sovereign Wealth Fund Direct Transactions Update June 2012

Globally, sovereign wealth funds have been diversifying into new geographies and sectors. According to the Sovereign Wealth Fund Direct Transaction Database (SWFTD), around US$ 29.29 billion (trailing four quarters starting at Q1 Year 2012) has been directly invested in the financial sector by sovereign funds. In fact, financial sector direct investments consisted of 36% of [...]


Invest AD Establishes Operations in Morocco

Invest AD which is owned by the Abu Dhabi Investment Council (ADIC) has opened up an office in Casablanca Finance City. Another organization, AD Capital, an arm of Abu Dhabi’s National Holding has opened up an office there as well. Invest AD is active in investing in Africa and views the city as a prospective [...]


Speaking of Capital Controls in Europe

Nations and states that fear economic disturbances may be tempted to impose controls on international capital flows. Continental Europe is facing a credit and banking crisis. Recently, European officials hinted unleashing a series of capital controls across Europe. If controls are implemented they will most likely target consumers, meaning limiting ATM withdrawals and bank transfers. [...]


Sovereign Wealth Funds Fear Spanish Bonds

Recently, the Abu Dhabi Investment Authority (ADIA) removed Spain from its fixed income benchmark index for Europe. In other words, ADIA will not be allocating capital to Spanish bonds any time soon. From Norges Bank Investment Management’s website, they currently hold about US$ 3 billion worth of Spanish government debt. Sovereign wealth funds like the [...]


Slovenia to Consolidate State-Owned Assets into Proposed SWF

Slovenia is planning to consolidate state-owned assets into a sovereign wealth fund. By merging the different agencies, Slovenia hopes to enhance revenue and improve organizational efficiency. The five agencies manage assets of more than €10 billion. Over time, the Government of Slovenia will decide which assets to dispose of. The proposed sovereign fund’s profits will [...]


Sovereign Investors and the Shifting Paradigm of Disintermediation

Sovereign wealth funds and other long-term public investors are relying less on Wall Street and other major financial institutions for unique deals, special situations, and now even treasury auctions. The People’s Bank of China can participate in treasury auctions without placing bids through primary dealers. Financial power is shifting from the West to the East [...]


Politicians Mulling Temasek-Style Hong Kong SWF

There is talk among politicians that Hong Kong is thinking of creating a sovereign wealth fund that is a strategic sovereign wealth fund similar to Singapore’s Temasek Holdings. The fund could assist in bringing stability to the Hong Kong market and help with the government’s long-term investment plans. Sovereign funding could stem from government budget [...]


Kuwait Hopes to Change FDI Laws to Lure Investors

Kuwait is the number four oil producer in the Organization of Petroleum Exporting Countries (OPEC). In addition, compared to other members of the Gulf Cooperation Council (GCC) it ranks near the bottom in foreign direct investment (FDI). Other countries have been large recipients of FDI which has helped further spur their domestic development, especially in [...]


Sovereign Wealth Funds Cross 5 Trillion Dollar Barrier

The investor class of sovereign wealth funds has now crossed the US$ 5 trillion mark. Sovereign wealth fund assets are now at US$ 5.004 trillion. Sovereign wealth funds as an investor class continues to grow due to a variety of factors including investment performance, resource tax transfers and the proliferation of new sovereign funds. See [...]