Change font size:   

 
Country risk index

Country risk index

Bi-annual survey monitoring political and economic stability of 185 sovereign countries

The best private banks in 2008

The best private banks in 2008

An informative guide for high net-worth individuals on the range of service providers that are available

Wednesday, April 9, 2008

Sovereign wealth funds

An in-depth look at the state-owned sovereign wealth funds that are now dominating the attention of the world's financial markets. Read Euromoney's unrivalled guide to the different strategies and investment styles of these hugely important funds – and learn how investment banks are trying to maximise their business with them.




Sovereign wealth funds on euromoney.com

Latin America round-up: Brazil to manage $20 billion
Euromoney June 2008
Brazil plans a sovereign wealth fund.


April 9th's FT carries an article "WORLD NEWS: Chile to invest $5.9bn surplus in new sovereign fund ", reporting on Chile's new investment programme for its two reserve funds.

Euromoney's 'Copper lifts Chile’s reserves', published 3 April, addresses this news in detail.

Subscribers to Euromoney with an active password can access this story now.

Sovereign wealth funds: Copper lifts Chile’s reserves
Funds move to more aggressive investment strategies.



Euromoney is the leading source for information about sovereign wealth funds. In April 2006 we were the first magazine to gain access to ADIA, and the facts and figures revealed in that story are used by many other information providers to this day. Get up to speed on Adia and the wealth funds today on euromoney.com.


Sovereign wealth funds: Sovereigns sets sights on property 

 

Liquid real estate Issue 05
Having bailed out the US investment banks in their hour of need, sovereign wealth funds are also turning their vast pools of cash towards real estate. Industry experts predict a doubling of investments by these funds to $10 billion within five years.




 
  

China Investment Corporation (CIC): Too early to fear China’s sovereign wealth fund
February 2008 
Managers are still learning the ropes.

Korea Investment Corp: Korea joins the sovereign wealth fund adventurers
February 2008 
Korea Investment Corp has broken new ground for the country by investing $2 billion in Merrill Lynch.

  

Sovereign wealth funds: Help when help is needed
January 2008
With capital markets fragile and expensive, sovereign wealth funds are playing an important role in recapitalizing banks.

Sovereign wealth funds: Qatar invests in Indonesia
January 2008
Qatar’s sovereign wealth fund is to invest $850 million in Indonesia and has set up a joint venture with the local government to do so.


UBS bailout will make The Government of Singapore Investment Corporation (GIC) biggest shareholder
January 2008
Pays SFr10 billion for a 9% stake in the Swiss bank.


  "If the shoe was on the other foot, if these were sovereign wealth investors in France, Germany, the UK or the US earning fabulous returns, reducing national deficits, funding social security costs and investing into the rest of the world, would they think it was an issue? I suspect not"

Simon Israel, executive director of Temasek, takes critics of the sovereign wealth funds head on (see The new rulers of finance and the Temasek interview)



Sovereign wealth funds: The new rulers of finance 

 Sovereign wealth funds: The new rulers of finance

Euromoney December 2007
State-owned, cash-rich and increasingly influential, sovereign wealth funds have emerged as the most controversial players in the financial markets. All the constituents – banks, private equity, corporates, hedge funds – want a slice of their action. Just how powerful will the funds become?

Getting the basics right
It is one thing to want a sovereign wealth fund but to actually set one up is a long and challenging process.

Financial institutions weigh up the opportunities
The proliferation of sovereign wealth funds is an opportunity and challenge for investment banks and asset managers. The opportunity is clear: potential business.

Fight on for Aussie’s future prizes
The Future Fund, created last year to cover long-term pension liabilities for the Australian federal public sector, is very much in its infancy but is finally managing money.

Temasek: A fund apart?
In a world of increasingly powerful and mistrusted sovereign wealth funds, Temasek, the investment arm of the Singapore state, stands apart in terms of governance, openness and performance, claims Simon Israel, its executive director.




 
   

Qatar Investment Authority: Minister says sovereign funds are transparent 

 Yousef Hussein Kamal, Qatar Investment Authority

November 2007 
A senior official in the Qatar government has hit back at claims that sovereign wealth funds lack transparency. Finance minister Yousef Hussein Kamal says that his country’s fund, Qatar Investment Authority, is an open, long-term investor, which should be welcomed by other governments.

  

DIC looks to spread its investment wings 

 Sameer Al Ansari, Dubai International Capital

Euromoney April 2007
Simon Brady speaks to Sameer Al Ansari (SA), executive chairman, Dubai International Capital, and Rabih Khoury (RK), DIC’s head of Middle East and North Africa Investments about the strategies of the international investment arm of conglomerate Dubai Holding and how it fits in the Dubai Investment Group.

Dubai International Capital and Istithmar: Dubai flexes its buying muscle
Dubai’s investment agencies might not have the scale of their counterparts from other parts of the Middle East but they are becoming voracious buyers of assets. Who are they and what are their plans? Sudip Roy and Simon Brady profile the people and strategies behind Dubai International Capital and Istithmar as they join the ranks of the world’s most powerful investors.

Dubai World's Istithmar: The new kid on the block
In less than four years Istithmar, the investment arm of conglomerate Dubai World, has become one of the most influential private and public equity and real estate financiers in the world. Its blue-chip holdings include Time Warner, Standard Chartered Bank and large swathes of Manhattan real estate. Sudip Roy reports from Dubai on how the fund has risen to prominence so quickly.


Money and mystery: Adia unveils its secrets 

 Adia unveils its secrets

Euromoney April 2006
Abu Dhabi Investment Authority is one of the world’s biggest institutional investors. It is also one of the most guarded. It publishes no numbers. It seldom makes any public statements. In a rare interview, two of its most senior officials lift the lid on the organization, revealing the reasons for its success. Sudip Roy reports from Abu Dhabi.

A breeding ground for talent | Abu Dhabi makes big waves  
Conservative ethos | External managers | Beta dominance | Market views | Avoidance techniques

 
 
The rise of sovereign wealth funds
Estimated size of the 10 biggest sovereign wealth funds
Country Fund Launch year Size ($bln) Growth rate (%) estimated p.a.
UAE Abu Dhabi Investment Authority 1976 625 10
Norway Government Pension Fund – Global 1990 360 28
Singapore GIC 1981 215 9.5
Kuwait Kuwait Investment Authority 1953 213 30
China China Investment Corporation 2007 200 N/A
Russia Stabilization Fund 2004 127.5 96
Singapore Temasek 1974 108 35
Qatar Qatar Investment Authority 2005 60 N/A
US Permanent Reserve Fund (Alaska) 1976 40.2 18
Sources: Standard Chartered, Oxford Analytica, Norges Bank

 

Where sovereign wealth funds invest
Varying investment objectives and risk profiles of sovereign wealth funds

                                                                                                                   Source: Citi

 

 










I’ve reluctantly discarded the notion of my continuing to manage the portfolio after my death – abandoning my hope to give new meaning to the term ‘thinking outside the box

The 84-year old Warren Buffett announces in February’s annual letter to Berkshire Hathaway shareholders that he has identified to the board four potential candidates who could take over from him

Ruromoney Jobs Post a job