Professional Documents
Culture Documents
Unlocking The Mystry of Sovereign Funds - MBA
Unlocking The Mystry of Sovereign Funds - MBA
• Concentration Risk .
• SWF Sourced by Fiscal Surplus are likely to be
influenced by changes in government budgets
and political issues that may change the whole
investment criteria .
• Some countries have no fiscal or Commodity
surplus …!
• SWF Sourced by Fiscal Surplus are likely to be
influenced by changes in government budgets
and political issues that may change the whole
investment criteria .
• Some countries have no fiscal or Commodity
surplus …!
• Issuing Bonds
• Issuing Sukuk
• Investment Certificate .
• Sovereign : STATE (Government ) to set the
legal basis in which sovereign wealth funds
could be created in a professional and legal
manner .
• Wealth : Long Term Investment
• Fund : Well Structured , Audited and
Transparent .
• State could Establish one Main Fund and Sub
funds
• Each sub fund could have a specific
Investment Objective , Issue Investment
Certificates ,Sukuk , Bonds . i.e.: Renewable
energy
• Return on Capital is 20%
• Egyptian regulation …???
• Capital Protected Fund ….???
• Volvo Case ..( Sold to Gelly Chinese Car
Manufacturing..Imagine that SWF of Egypt
acquired Volvo ..!
• Transferring car manufacturing technology to
Egypt .
• Could manufacture cars locally with low price .
• Export to African Market and other market .
• Increase Capital Inflow of USD and release the
pressure on the Egyptian Pound
• Other Opportunities in Drugs and Medicine
Industry .
• Transparency
• Audited by top tier external auditor
• Regulated .
• Sovereign Wealth Fund could Support The
Economy of Egypt by :
• SWFs may reduce government borrowing costs.
• SWFs may limit exchange rate Fluctuations.
• SWFs may help in reducing inflation.
• SWFs may boost transparency.