Sovereign wealth needs risk management
Academic findings contradict the widespread view of sovereign wealth funds as relatively free agents, instead they adopt a dynamic liability management approach
Sovereign Funds
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State-backed investors seeking higher returns on their capital are buying western company shares, but the move has provoked a mixture of protectionism, anger and mistrust
Qatar in Europe push with Siemens stake
The Gulf state has taken a stake of just over 3% in the industrial group, continuing a phase of investments in a series of European blue-chip groups
Investors warn on RBS ‘sweetheart deal’
The government was warned against a possible sale of Royal Bank of Scotland shares to an overseas sovereign wealth fund at a cutdown price
Dubai set for tie-up with Samsung Life
Emirate to sign partnership with South Korea life insurer amid efforts to create launch pad for Asian companies moving into Africa and the Gulf
Qatar wealth fund buys stake in Shell
Departure for wealth fund which has tended to diversify its holdings into western financial services, manufacturers and luxury goods
Qataris target 10% Xstrata stake
If wealth fund continues building its stake – currently 8% – it would be more difficult for dissenting voices to mount a blocking vote
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DBS / Bank Danamon
The Singaporean state investment agency has swapped stakes in its partly owned banks to make an even bigger bet on Indonesia
CIC: world tour
China’s sovereign wealth fund’s interest in Italian assets should not be read as a vote of confidence, but rather as fund managers trying to expand their turf
After Gaddafi: A spent force
Behind the facade of the Libyan Investment Authority lies an opaque organisation beset by poor investment decisions, write Lina Saigol and Cynthia O’Murchu
Temasek Holdings
The Singaporean sovereign wealth fund’s recent returns have been more like a mutual fund, but its middling performance is not a problem
Société Générale’s Libya deal revealed
Documents unearthed by the Financial Times reveal how top SocGen derivatives bankers brokered a huge $1bn transaction with the LIA that amounted to a massive long bet on the bank’s share price
How to deal with sovereign funds
Difficulties arise where their activities are non-transparent and where the fund seeks a large or even a controlling influence in target companies
Sovereign sheep in wolves’ clothing
Sovereign wealth funds benefit developing and developed countries alike. As long-term investors, they offer liquidity when others pull out of the market
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