Archive | February, 2008

Fitch Ratings says Azerbaijan Outlooks for the long-term IDRs stable

On 29 Feb, Fitch Ratings affirmed the Republic of Azerbaijan’s Long-term foreign and local currency Issuer Default ratings (IDR) at ‘BB+’, Short-term foreign currency IDR at ‘B’ and Country Ceiling at ‘BB+’, the Agency’s statement says. The Outlooks for the Long-term IDRs are Stable. “Azerbaijan’s rating is supported by strong and sustainable economic growth, low […]

Effects of US Currency Depreciation on Sovereign Wealth Funds

As the US currency declines relative to the world’s currency many sovereign wealth funds are finding US companies rather inexpensive. Already many funds, such as the China Investment Corporation have taken significant stakes in US brand name financial institutions like Morgan Stanley, while other sovereign funds have invested in tech firms like Advance Micro Devices […]

US Public Opinion is Weary on Foreign Investment According to Survey

According to Public Strategies Inc, a polling firm, “A majority of American voters think investment by foreign governments in U.S. companies harms U.S. national security interests, and nearly half believe such investments harm the American economy, according to a new survey of the attitudes of U.S. voters toward sovereign-wealth funds. The survey, conducted by Public […]

EU plans to propose a voluntary code of conduct regarding transparency & governance

The Financial Times reports that, “The world’s sovereign wealth funds will be asked to accept a voluntary code of conduct governing their investment activities under proposals poised for approval next week by the European Commission. Peter Mandelson, the European trade commissioner, said the code would set out basic standards of governance and transparency for the […]

Do SWFs make smart equity purchases?

In the current short term, probably not. Many experts agree that Sovereign wealth funds are long term investors.

Survey of Fund Managers say SWFs need to adopt a code, or increased transparency

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Sovereign Wealth Transparency & Investment Strategy

The picture below illustrates the upper echelon of SWFs and their investment approach relative to transparency.

H.R. 556: Foreign Investment and National Security Act of 2007

The National Security Foreign Investment Reform and Strengthened Transparency Act of 2007 was written less than one year after the Bush administration received criticism for allowing Dubai Ports World (a United Arab Emirates firm) to manage security at U.S. ports. The bill would direct the executive branch to review business transactions to determine their affect […]

Total Foreign Investment in US trumps US Investment Abroad

Despite critics of thinking neo-protectionism is upon the US Market, the trend of foreign investment in the US is still strong and out pacing US investment abroad. The United States has become the place where foreign investors continue to invest.

Russia’s New SWF: National Welfare Fund

The Moscow Times reporting that “Russia has made much of its natural wealth, boasting some $157 billion accumulated in the stabilization fund from excess oil revenues. As of Friday, the stabilization fund will be split into the Reserve Fund and the National Welfare Fund. Russian finance minister Alexei Kudrin reiterated the government’s commitment to investing […]

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 […]