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Russia’s New SWF: National Welfare Fund

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Alexei Kudrin

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 some of that wealth into financial markets.

The official in Kudrin’s ministry who was until recently in charge of the stabilization fund, Deputy Finance Minister Sergei Storchak, remains in pre-trial detention on fraud and embezzlement charges. Investors have expressed concern over Storchak’s continued detention, seeing in the case a possible threat to Kudrin’s position and to his policy of using the Stabilization Fund to hedge against drastic falls in global demand for oil and gas.”

The National Welfare Fund will initially be invested very conservatively, with the following guidelines:

  • (i) All must be in foreign debt, denominated in USD, EUR or GBP, rated at least AA-, from Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Luxembourg, the Netherlands, Spain and the US.
  • (ii) At least 50% in foreign government debt, with the rest in foreign private/corporate debt.
  • (iii) Up to 30% in foreign agency debt and central bank debt.
  • (iv) Up to 15% in debt of international financial organizations (ADB, EIB, etc.).
  • (v) Up to 30% in foreign bank deposits.

ADIA Seeks to Sell KIC Headquarters

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The Abu Dhabi Investment Authority (ADIA) is seeking to sell the building that houses the headquarters of the Korea Investment Corporation (KIC). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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BMO and OTPP Test Blockchain Canadian Dollar Debt Deal

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The Bank of Montreal (BMO) and the Ontario Teachers’ Pension Plan (OTPP) participated in a landmark blockchain Canadian-dollar debt transaction. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Just Group Acquires Corinthian Pension Consulting

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Just Group plc acquired a 75% ownership stake in the holding company of Corinthian Pension Consulting Limited (Corinthian Pension Consulting). Operating in the institutional world for over 12 years, Corinthian Pension Consulting provides advisory services to defined-benefit pension scheme trustees and scheme sponsors undertaking bulk scheme exercises. The remaining 25% will be retained by current shareholders of Corinthian Pension Consulting. Robert MacGregor will continue to lead Corinthian Pension Consulting, as its Chief Executive Officer. Furthermore, Corinthian Benefits Consulting Limited and Corinthian Affinity Solutions Limited will continue to operate as before, becoming part of a newly formed holding company, Corinthian Group Holdings Limited.

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