Finance Ministry

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 [...]


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 [...]


Singapore Project Finance Company Gets Traction

After lengthy debates, the Singapore Ministry of Finance moved forward to jump start the creation of a project finance company. Established in 2012, the company is named Clifford Capital and it will be managed as a commercially-run organization. In fact, its shareholders include Temasek Holdings, Development Bank of Singapore, Sumitomo Mitsui Banking Corporation, Prudential Assurance [...]


Future Possibility of Equities for Russian SWFs

Russia’s sovereign wealth funds have conservative allocations mostly to government bonds. In a possible shift in asset allocation strategy, once the Russian Financial Agency is formed, the funds may begin slowly investing in equities. The Russian Financial Agency is slated to be created in the beginning of 2013. Russian Deputy Finance Minister Sergei Storchak noted [...]


PRESS RELEASE: Sovereign Wealth Fund Institute Establishes the Institute Council of Investors

Monday, April 23, 2012 Contact information: Carl Linaburg Phone:(415) 717-6912 Email: support@swfinstitute.org A delegation of global governmental executives involved in investing have come together to join the Institute Council of Investors. Types of council members include: sovereign wealth funds, public pension funds, central banks, government investment authorities and other governmental entities. Initial members include some [...]


Egypt 10-Year Bonds Sell 1st Time Since Revolution

Egypt’s borrowing costs have soared since foreign investors discarded $7.5 billion of government debt that followed the protests and revolution. Egypt has sold 10-year bonds for the first time since the start of the revolution. It sold them at an average yield of 17.03%. The auction was not much in terms of size, 1 billion [...]


Cash Injection to the CIC

Established in 2007, the China Investment Corporation (CIC) originally had US$ 200 billion in registered capital from China’s Ministry of Finance. The government of China is deploying more reserves to the CIC to augment financial returns. After the Chinese New Year holiday, the China Investment Corporation received an undisclosed amount from the People’s Bank of [...]


Mexico Hedges Oil Revenues in 2012, Uses Put Options

Mexico is a country that is economically dependent on its petroleum industry. Revenue volatility from one budget to the next, as business cycles tend to coincide with oil cycles, and the proficient use of oil revenues increases remain significant challenges for Mexico. Also, Mexico must deal with the scenario of decreased oil revenues as production [...]


Japan’s Foreign Reserves Hit a Record High

As of November 30, 2011, Japan’s reserve assets total US$ 1.305 trillion. This is a US$ 94.88 billion increase since the end of October. In November, Japanese authorities intervened in currency markets to prevent the yen from growing too strong. A strong yen negatively affects Japanese exporters by making their products more expensive overseas. Japan [...]


Japan’s Foreign Reserves Nearly Reach $1.3 Trillion

According to Japan’s Ministry of Finance, official reserve assets rose to US$ 1.209 trillion at the end of October. This is an increase of US$ 9.289 billion from September. In addition, Japan is trying to increase private consumption and investment.


Central Huijin Buys Local Major Bank Shares

Central Huijin Investment Co, the sovereign wealth enterprise of the China Investment Corporation is purchasing more shares in two of China’s major banking institutions. On Monday, Central Huijin Investment Co. purchased 39.1 million shares of the Agricultural Bank of China. They also purchased 14.6 million shares of the Industrial and Commercial Bank of China. This [...]


Thailand No Longer Pursuing Sovereign Wealth Fund

The Bank of Thailand and Thailand Ministry of Finance have agreed to not use the country’s foreign reserves to create a sovereign wealth fund. There was a significant internal debate among Thailand’s governmental financial bodies on if it was feasible to create a sovereign wealth fund. Including Thailand, the majority of Asian countries intervene to [...]


Impairment Loss with Irish Banks Hurts NPRF

According to the Report of the Comptroller and Auditor General, “the National Pension Reserve Fund (NPRF) was valued at €22.7 billion at the end of 2010. Up to the end of 2010, the NPRF had invested, pursuant to directions from the Minister for Finance, an aggregate of €11.35 billion in Ireland’s two main banks, Allied [...]


Uganda Creating Petroleum Fund

Regardless of having a budget surplus or deficit, a number of countries in Sub-Saharan Africa are developing or have developed sovereign wealth funds including Nigeria, Ghana, Botswana, Zimbabwe, and now Uganda. Uganda is in midst of creating a commodity-based sovereign fund to manage potential excess oil revenues.  [ Content protected for Sovereign Wealth Fund Institute [...]


Zimbabwe Yearns for Sovereign Wealth Fund

The African country Zimbabwe is continuing on the path to establishing a sovereign wealth fund. The Indigenisation and Economic Empowerment Act is allowing the Zimbabwean Government the ability to acquire stakes in foreign-owned companies. At least 51% of shares of every public company operating in Zimbabwe and any other businesses are mandated to be owned [...]


Australia’s Swan Says No on Proposed Commodity Sovereign Wealth Fund

In recent news, Australian Treasurer Wayne Swan views that in the country’s current situation there is no need for a commodity-based sovereign wealth fund. There are proponents in Australia that want a commodity-based sovereign fund. They feel that Australia is in a mining boom and a mining tax would discourage excess investment from occurring so [...]


Ghana Debates $3 Billion China Development Bank Loan

Sovereign investors and other governmental funds have been loaning money to emerging markets for quite some time. In some cases the loan facilities are secured by collateral such as future oil shipments. Ghana is a sub-Saharan country that is becoming a real player in both the oil and natural gas global markets. With regards to [...]


China Investment Corporation halves funding request to $100 Billion

According to Reuters, “China Investment Corp (CIC), the country’s $300 billion sovereign wealth fund, has cut by half, to $100 billion, the amount of new funding it is seeking from the government, according to domestic media. An earlier proposal by CIC to the finance ministry for $200 billion in additional funding was not approved, the [...]


US$ 4 billion economic stimulus plan for Chile

It states: “The Chilean government unveiled an ambitious countercyclical fiscal strategy to stimulate employment and growth in 2009. The plan involves over US$4 billion, equivalent to 2.8% of GDP. The stimulus plan announced by President Michelle Bachelet aims at securing economic growth between 2 and 3% in 2009 and encouraging employment. The government estimates that [...]


For Now Japan Government not looking at building a Sovereign Wealth Fund

Reuters reports that, “Japanese Finance Minister Fukushiro Nukaga said on Friday that he has no plans to set up a government investment fund, or sovereign wealth fund, to manage foreign reserves, given risks of generating losses by managing foreign reserves aggressively. ‘At this moment I don’t think we will have a sovereign wealth fund,’ Nukaga [...]