Archive | February, 2012

Norway to Purchase NOK 350 Million Daily in Foreign Exchange for GPFG in March

Money is flowing into the Norwegian Government’s coffers as energy prices rise. Norway is the eighth largest oil exporter on the globe and has generated wealth for its citizens through its mega sovereign fund. The sovereign wealth fund is the largest in Europe. The Norwegian Ministry of Finance regulates the amount of the monthly allocations […]

Q&A with Jim O’Neill, Chairman of Goldman Sachs Asset Management

This interview will appear in the 1Q Y2012 issue of the Sovereign Wealth Quarterly. This is a Q&A with Jim O’Neill, Chairman of Goldman Sachs Asset Management. Previously, Mr. O’Neill was Head of Global Economics, Commodities and Strategy Research for Goldman, Sachs & Co., where he managed the firm’s economics, strategy and commodity research teams. […]

Hillary Clinton Remarks on State Capitalism and SWFs

On February 19, 2012, U.S. Secretary of State Hillary Rodham Clinton made some remarks about state capitalism and sovereign wealth funds at the G-20 Ministerial in Los Cabos, Mexico. Hillary Clinton stated, “Second, I would like to talk candidly about the challenges countries face from the emergence of what has been called “state capitalism”—the rise […]

Bridgewater and Strategic Investing, American Public Pensions are Becoming More Innovative

Public markets have taken a beating in 2011 and treasuries are producing low yields. Public investors across the United States have had board conversations to reduce their target rate of return. There has been a significant shift of more American public pensions of either moving towards alternatives or growing existing exposure. A number of public […]

The Caisse De Depot Et Placement Du Quebec Gets a 4% Return for 2011

The press release states, “The Caisse de dépôt et placement du Québec announced that its weighted average return on depositor funds was 4.0% for the year ended December 31, 2011. The Caisse’s net assets stood at $159.0 billion at the end of 2011, compared to $151.7 billion as at December 31, 2010. This growth is […]

Diversification Leads OMERS to Positive Investment Return in 2011

According to the press release, “OMERS, one of Canada’s largest pension plans, ended 2011 with an all-time high of $55.1 billion in net assets. Net assets of the Plan, which administers pensions and invests pension assets for almost 420,000 members, have increased by almost $12 billion since the 2008 global credit crisis. “Our view of […]

Q&A with Joncarlo Mark, Founder of Upwelling Capital Group

This interview will appear in the 1Q Y2012 issue of the Sovereign Wealth Quarterly. This is a Q&A with Joncarlo Mark, Founder of Upwelling Capital Group. Prior to forming Upwelling Capital Group, Joncarlo was a Senior Portfolio Manager in the Alternative Investment Management (AIM) Program at the California Public Employees Retirement System (CalPERS), with approximately […]

Parliament Passes PNG SWF Bill

The National Parliament of Papua New Guinea just passed a bill to establish a sovereign wealth fund (SWF). The first vote on the bill was presented by Prime Minister Peter O’Neill and it passed 80-0. The second result was 78-0. The fund will protect and increase government surplus wealth from mineral, oil, and gas exports.

Sovereign Wealth Funds Could be Growing Even Faster in 2012

Commodity-based sovereign wealth funds could see assets under management grow at a faster pace compared to 2011. In 2011, sovereign wealth assets grew by an estimated US$ 422 billion. The year before, sovereign assets grew by US$ 384 billion. The mechanized funding amounts of commodity-based wealth funds are vulnerable to the volatility in oil, mineral, […]

Nigerian Sovereign Wealth Funds and the Future

Last year, Nigeria, the biggest oil producer in sub-Saharan Africa, replaced its Excess Crude Account (ECA) with three sovereign wealth funds, Future Generations Fund, Nigerian Infrastructure Fund and Stabilization Fund, under the management of the Nigerian Sovereign Investment Authority (NSIA). The future generations fund will focus on providing and generating income for the country’s citizens. […]

CME Group and Oman Investment Fund Increase Investment in Dubai Mercantile Exchange

The press release states, “CME Group, the world’s leading and most diverse derivatives marketplace, and Oman Investment Fund, a sovereign wealth fund of the Sultanate of Oman, today announced that they will increase their investments in the Dubai Mercantile Exchange to enable it to continue growing its business. As part of the restructuring of the […]

Reserve Managers Scout for Credible Alternatives

Central banks and official reserve institutions are in change mode. Investment returns are ranked lower on criteria as compared to safety and liquidity. For some central banks, liquidity has a higher priority than capital preservation. Reserve managers face a tough dilemma, find a safe haven to park funds but be concerned about the U.S. credit […]

Swedish AP1 Embraces Active Stance for 2012

AP1 (Första AP-fonden) is one of fiver buffer funds within the Swedish national pension system. At the end of 2010, AP1 had net assets under management of SEK 218.8 billion. AP1 has been working diligently to reduce equity volatility in its portfolio. A major segment of public investors exposed to high amounts of equity had […]

GPFG Highlights: Norges Bank Governor Øystein Olsen Annual Address in Oslo

We are highlighting a section of Norges Bank Governor Øystein Olsen’s annual address in Oslo. The address was given to the Supervisory Council of Norges Bank and invited guests on February 16, 2012. To view the whole address, click here. “Norway invests a large proportion of its petroleum revenues in international equity, bond and real […]

People’s Bank of China to Lower RRR by 50 BPS

China is trying to plan for a gentle landing for the economy as growth slows and inflation remains high. The People’s Bank of China said it will decrease the reserve requirement ratio by 50 basis points from February 24, 2012. This is the first announced cut in three years, reversing a policy of ratio increases. […]

Singapore’s Project Finance Company

The Government of Singapore wants to advance the course of its local industries to emerging markets and transforming economies. Many countries assist local corporations expand through cross-border financing through state-owned export-import banks (EXIMs) and export credit agencies (ECAs). The United States has the Export-Import Bank of the United States. Japan has the Japan Bank for […]

Public Release – 4Q 2011 Linaburg-Maduell Transparency Index Ratings

Abu Dhabi’s IPIC which was included in the 3rd quarterly rankings rapidly improved their LMTI ranking. Abu Dhabi Investment Authority (ADIA) moved up to a 5 rating. Kazakhstan National Fund moved up to an 8. China’s SAFE Investment Company moved to a 4. The Libyan Investment Authority (LIA) dropped to a 1. Read more Linaburg-Maduell […]

CPPIB Agrees to 45% JV Interest with Westfield in Mall Portfolio

The press release states, “The Canada Pension Plan Investment Board (CPPIB) announced today an agreement to form a joint venture with the Westfield Group. The joint venture will consist of interests in 10 regional malls and two redevelopment sites located in the United States. The properties are currently owned and managed by Westfield and have […]

Possible South Australia Sovereign Wealth Fund

South Australia is in the midst of a giant mining boom, especially in uranium, copper, and iron ore. Plans have been developed for a bipartisan committee in the parliament of South Australia to look at the establishment of a future fund on a state level. The future fund would derive its funds from mining royalties […]

Brunei’s SWF Focuses in on Labuan

The Brunei Investment Agency (BIA) is looking to invest in several industries in the Labuan Federal Territory and in Kampung Baru, including oil & gas. Labuan Federal Territory is a duty-free island located in East Malaysia. It is off the coast of the state of Sabah. In fact, the capital Victoria is known for an […]