Connect with us

Could Europe Create an Alternative for SWIFT?

Published

on

Germany’s foreign minister, Heiko Josef Maas, has publicly criticized his country’s monetary alliance with the United States. Maas published an op-ed in Germany’s Handelsblatt newspaper suggesting that independent payment channels should be created to counter U.S. political and economic influence in Iran. The move was made in retaliation for the U.S. government’s decision to withdraw from the Obama-era Joint Comprehensive Plan of Action nuclear deal with Iran. As a consequence, Iran will face the old, and entirely new, U.S. sanctions. However, Iran, France, Germany, and Britain are still committed to the JCPOA.

Maas wrote that “Europe should not allow the US to act over our heads and at our expense. For that reason it’s essential that we strengthen European autonomy by establishing payment channels that are independent of the US.” The current international payment model involves routing transactions through the Society for Worldwide Interbank Financial Telecommunications, or SWIFT, international payment network. SWIFT allows financial organizations to securely communicate financial orders through a coded language. Competitors include Ripple and CHIPS, though SWIFT is the leader in the space. SWIFT was founded in Brussels in 1973 and runs two data centers – one in the United States and the other in the Netherlands. In October, SWIFT executives were in Washington, D.C., holding meetings with U.S. President Trump’s administration officials to persuade Iran retains its access to the international banking system. During President Obama’s term, SWIFT disconnected Iran due to sanction threats. However, a key part of the 2015 Iran nuclear deal was that Iran be given access to SWIFT. Some people argue politicizing SWIFT would drive Europe closer to Russia and China in terms of adopting alternative currencies.

EU Seeks to Decrease U.S. Financial Legal Power

While some are skeptical about Germany’s ability and determination to threaten the global reserve currency, the European Union has also declared that member states were creating a payment system that would free oil companies and businesses to trade directly with Iran. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Heliconia Capital Management Plans to Invest in Asian Healthcare Specialists

Published

on

Singapore-based Asian Healthcare Specialists Limited signed a deal with Vanda 1 Investments, an entity controlled by Heliconia Capital Management. Helconia Capital Managed is owned by Temasek Holdings. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

BlackRock Experiences Outflows Among Institutional Investors

Published

on

Is BlackRock at peak earnings? BlackRock disclosed its third quarter 2018 results showing a growth of assets under management at US$ 6.4441 trillion at the end of September 2018 versus US$ 5.976892 trillion at September 2017. However, a large portion of the AUM growth has been in the ETF business, iShares, which tends to be very low in fees. The iShares business saw an inflow of US$ 33.7 billion for the quarter.

For the third quarter, BlackRock experienced US$ 24.8 billion in institutional investor outflows, with US$ 23.6 billion being on the index side, while US$ 1.2 billion being on the active side. Institutional investors such as pensions, insurers, and hedge funds withdrew from passive equity strategies. BlackRock saw US$ 4.745 billion in outflows in active equity on the institutional side, but seeing inflows of US$ 2.471 billion in multi-asset institutional and inflows of US$ 1.468 billion in alternatives institutional.

Continue Reading

GIC Buys Large Stake in Nordic Aviation Capital

Published

on

Singapore’s GIC Private Limited, a yield-hungry sovereign investor, invested in Denmark-based Nordic Aviation Capital A/S, becoming a significant minority shareholder. Other shareholders in Nordic Aviation Capital include EQT VI Limited fund, KIRKBI Invest (wealth origins tied to Legos), and Martin Møller, the founder of Nordic Aviation Capital. EQT VI will remain the largest shareholder of Nordic Aviation Capital. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.