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Sovereign Wealth Funds: The Cyprus link

01 November, 2013

Of the 20 biggest sovereign wealth funds, 12 are based on revenues from the oil and gas sector that are invested in other sectors, with Norway’s Government Pension Fund topping the list at 785.2 bln dollars in assets. Next is Saudi Arabia’s SAMA Foreign Holdings with 675.9 bln, followed by the UAE’s Abu Dhabi Investment Authority with 627 bln dollars in assets.
The rest, according to the Sovereign Wealth Fund Institute’s rankings of funds, are a mix of oil and gas-based revenues, minerals and commodities (diamonds, copper, etc.), and non-commodity based investments such as the China Investment Corporation ($575.2 bln in assets) and the Government of Singapore Investment Corporation ($285 bln in assets). The smallest sovereign wealth fund is the Ghana Petroleum Funds with 70 mln dollars in assets. To date, there are 73 sovereign wealth funds.
With Cyprus EEZ untapped resources estimated to be worth about 400 bln euros over a life span of 25 years, the government has yet to determine how it will invest its revenues after 2020, initially at 900 mln euros a year and rising incrementally to 4 bln at full production rate.
Norway’s Oljefondet fund, established in 1990, is a sovereign wealth fund where the surplus from the Norwegian petroleum income is held. With a population of 5.06 mln, the wealth per ca[pita is estimated at 155,177 dollars.

See related story by Fiona Mullen:
Troika to look at Cyprus gas sovereign wealth fund
http://www.financialmirror.com/news-details.php?nid=31402