Archive | July, 2011

Nigerian Foreign Exchange Reserves Drop Around $1 Billion in a Week

High world oil prices greatly contribute to Nigeria’s currency reserves. Nigeria’s foreign exchange reserves slightly moved down from $34.57 billion on July 13, 2011, to $33.54 billion on July 22. This amounts to around a $1 billion drop. At the same time last year reserves were at $37.86 billion. Even though the United States is […]

GIC Launched 2010 Annual Report

The press release states, “the report presents the performance of the funds under GIC’s management. The 20-year annualised real rate of return is the key focus for GIC as it is our mission to preserve and enhance the international purchasing power of the reserves. Starting this year, GIC is also publishing the 5-year and 10-year […]

CIC Launched 2010 Annual Report

The press release states, “On 26 July 2011, with the approval of its Board of Directors, China Investment Corporation (CIC) released Annual Report 2010 (hereafter referred to as “annual report”), the third annual report by CIC since its inception. The annual report, consisted of Overview, Culture and Core Values, Corporate Governance, Investment Strategy and Management, […]

HKMA’s Exchange Fund Looks to European Core Real Estate

According to various sources, the Hong Kong Monetary Authority through its exchange fund is planning to purchase around $500 million worth of commercial office properties in London and Paris. These properties will most likely be fully leased and in high traffic areas. Norway’s Oil Fund has already made strides in core property assets in London […]

Debt Ceiling and a Mega Deficit are Concern for Sovereigns

Uncertainty is the breeding ground for greater risk and volatility; behemoth conservative investors adore certainty. Sovereign funds have the distinct advantage of being long-term investors; however, short-term risk is increasing as uncertainty looms around deficit and debt ceiling issues. The August 2nd debt ceiling deadline is creeping up. No official deal has been approved by […]

Mumtalakat Holdings Continue to Back Gulf Air

Mumtalakat Holdings, Bahrain’s sovereign wealth fund will continue to support Gulf Air financially. Gulf Air is the national air carrier in the Kingdom of Bahrain. Unfortunately, Gulf Air will be a strain on the fund’s 2011 earnings. Gulf Air was negatively affected by the political unrest that swarmed the country. Management at Mumtalakat Holdings sees […]

Korea Investment Corp Reaffirms Commitment to Alternatives

Choi Chong-suk, the Korea Investment Corporation’s new CEO, believes the sovereign wealth fund must allocate a greater proportion to alternative and strategic investments in its portfolio. The Korea Investment Corporation (KIC) was founded in 2005 by the Korea Investment Corporation Act and the sovereign fund moved relatively faster compared to other newly-created sovereign funds in […]

Mongolia Wants To Emulate Western Resource Sovereign Models

Deep in Mongolia lies Tavan Tolgoi, otherwise known as Five Heads. It is located 550 kilometers from Mongolia’s capital Ulaanbaatar. Tavan Tolgoi is one the largest deposits of coal in the world. Sovereign wealth funds and other investors have been investing in several coal mining operations. Now that Mongolia has opened up Tavan Tolgoi allowing […]

SAFE Releases China’s International Investment Position for Year-End 2010

The press release states, “The SAFE recently released China’s International Investment Position for year-end 2010. The statistics reveal that at the end of 2011 China’s external financial assets reached USD4126 billion, up 19 percent over that at the end of 2009; external financial liabilities reached USD2335.4 billion, up 20 percent over that at the end […]

Dodd-Frank Ups Probability in Increased Swap Margin Requirements for SWFs

The Dodd-Frank Wall Street Reform and Consumer Protection Act is now a U.S. federal statute and signed into law by U.S. President Barack Obama.  Now that the law is in place, U.S. agencies such as the Commodities Futures Trading Commission (CFTC) and the Federal Reserve Board are drafting proposals under newly minted regulatory powers, especially […]

Hamilton Sundstrand Authorizes Mubadala Aerospace for Boeing 787 MRO

According to the press release, “Hamilton Sundstrand Corporation and Mubadala Aerospace have finalized a wide-ranging strategic agreement under which Mubadala Aerospace will be a key part of the support network for servicing Hamilton Sundstrand products and systems on the Boeing 787. The deal, a first for Hamilton Sundstrand, includes a licensing agreement for Mubadala Aerospace […]

Sovereign Wealth Funds and Faith in the USD

It is true that most sovereign wealth funds and global institutional investors have a high allocation to U.S. dollar-denominated assets. This has been the story for the past half century. Second, it has been a difficult time for the U.S. dollar this past decade. With the bailout of financial institutions, mounting federal and state governmental […]

Temasek Holdings Maintains Confidence in AgBank

Chinese state media reports that Temasek Holdings has no intention of reducing its position in the Agricultural Bank of China. Temasek Holdings, Kuwait Investment Authority, Qatar Investment Authority, and other governmental investors were cornerstone investors in Agricultural Bank of China’s $21 billion initial public offering. The bank is China’s third largest lender and they made […]

Colombia May Join Colleagues in Creating a Sovereign Wealth Fund

Many South American countries are facing the stress of unwanted appreciation in their currencies. Colombia is joining the chorus with Brazil. The Colombian President Juan Manuel Santos is against added interest rate increases by the Banco de la República de Colombia (Central Bank). The Colombian peso is gaining tremendous ground on the US dollar. The […]

AIMCo Desires More Flexibility on Use of Leverage

When properly implemented, leverage can be a financial tool to enhance total return. A number of sovereign wealth funds employ the use of leverage in a variety of investment strategies. AIMCo (Alberta Investment Management Corp), which manages a number of governmental funds including the Alberta Heritage Fund would like more control on the amount of […]

Hospital Authority Provident Fund Scheme Drops FRM

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Q&A with Israfil Mammadov, CIO to the SOFAZ

This interview appears in the 2Q Y2011 issue of the Sovereign Wealth Quarterly. ISRAFIL MAMMADOV IS CHIEF INVESTMENT OFFICER OF THE STATE OIL FUND OF THE REPUBLIC OF AZERBAIJAN (SOFAZ). Currently, SOFAZ ranks a 10 in the Linaburg-Maduell Transparency Index. 1. Is the current global market providing a positive investment environment for SOFAZ, and what […]

Temasek Holdings Releases Annual Performance Review

The press release states, “Temasek Holdings (Private) Limited (Temasek) today released its annual performance review, Temasek Review 2011 – Building for Tomorrow. Covering the financial year ended 31 March 2011, Temasek Review 2011 reports a record year end portfolio value of S$193 billion, up from S$186 billion in the previous year. Temasek continued its 2002 […]

One of Chile’s SWFs to Help Fund Proposed Education Fund

Chile’s President Sebastian Pinera stated during a televised national address about the proposed fund, “It’s time to stop the protests and recover the paths to dialogue and agreements.” There are several key reasons why countries create sovereign wealth funds. Sovereign wealth money can provide countries with a lifeline of benefits in times of need, whether […]

Temasek Holdings Sells US$ 3.63 Billion of CCB and Bank of China Shares

In the aggregate, Chinese bank stocks have fallen ever since Moody’s Investors Services released information that Chinese banks might have higher than expected exposure to local government debt.  There is tremendous concern that Chinese lenders will be incapable to absorb losses on defaults; however, a Chinese government plan to clean up the problem could alleviate […]