Latest news with #FutureFund
Int'l Business Times
3 days ago
- Business
- Int'l Business Times
VIMB Expands Rural Infrastructure and Jobs Through Strategic Citizenship Investments
VIMB In a world where wealth buys access, the concept of "citizenship by investment" has often drawn criticism for fueling global inequality, commodifying nationality, and enabling the ultra-rich to circumvent borders. Yet in the Pacific archipelago of Vanuatu, one government-designated agent is rewriting that script—not by selling privilege, but by converting investor contributions into rural infrastructure, jobs, and long-term national assets. VIMB Services Limited , led by Managing Director Daniel Agius, is emerging as the architect of what some in the region call a "citizenship model that gives back." Through the Capital Investment Immigration Plan (CIIP) and its flagship vehicle—the CNO Future Fund—VIMB is channeling millions of dollars in investor capital into neglected agricultural communities and renewable energy infrastructure. This is more than marketing spin. In its first full year of operation, the fund processed 144 citizenship applications, raised $7.2 million in investment, and generated over $9 million in direct government revenue. But perhaps more critically, it has delivered tangible benefits to some of Vanuatu's most vulnerable regions—benefits that are beginning to alter the national development trajectory. Post-Earthquake Resilience Meets Economic Innovation Vanuatu's citizenship programs were paused for over three months in early 2025 as the government undertook a sweeping audit of CIIP agents. The result was a dramatic regulatory overhaul: stricter due diligence, a five-year lock-in period for investments, and mandatory quarterly and annual reporting from designated agents. Only a handful of firms emerged from the review with full compliance status. "The regulatory reforms weren't a hurdle—they were a validation of everything we've built," said Agius. "We designed the CNO Future Fund to be sustainable, transparent, and high-impact from day one." As other agents stumbled or folded, VIMB doubled down. And then, in December 2024, disaster struck. A magnitude-6.8 earthquake devastated infrastructure in Port Vila and beyond, crippling logistics, mills, and coconut production facilities. Instead of scaling back, the CNO Future Fund used the moment to demonstrate its resilience and its purpose. By Q1 2025, more than 70% of affected operations had resumed. Four new trucks had arrived to service rural routes, and over 55 new jobs had been created in logistics, milling, and plantation management. The fund's investments helped reopen aggregation hubs on Malekula and Ambrym islands, which are now serving as central nodes for processing, drying, and exporting coconut products. From Copra to Clean Energy The heart of the fund's strategy is coconut oil, specifically, converting copra (dried coconut kernel) into a viable source of clean energy. The CNO Future Fund's vision is aligned with Vanuatu's national goal of achieving 100% renewable energy by 2030. With state-of-the-art equipment and partnerships with local producers, the fund is driving a transition from raw commodity exports to a vertically integrated, value-added supply chain. As of Q1 2025, monthly production surpassed 230 tons, enough to power two 1MW base grid generators already acquired by the government. The roadmap includes the construction of additional mills in Santo and Malekula to ensure decentralization and seismic redundancy—lessons hard-learned from the December quake. Beyond electricity, the fund is also exploring coconut water bottling, copra meal exports to New Zealand, and revaluing dormant plantations into high-value timber. Its 30% equity stake in Vanuatu Baskets—the country's leading coconut oil producer—has further anchored its role in economic diversification. Financial Discipline, Social Return According to amended CIIP regulations, each designated agent must invest $50,000 per application into an approved fund. That investment must remain unencumbered, personally funded, and held in-country for a minimum of five years. To qualify, funds must submit detailed reports including financials, operational charts, and proof of employment and local spending. VIMB not only meets these standards; it exceeds them. Its Q1 2025 investor report details expenditures on replanting programs, mill upgrades, and earthquake recovery. Insurance claims totaling over 65 million Vatu are being reinvested into plant restoration. Over 65 rural bank accounts have been opened for new employees and producers. "This isn't just about mobility or tax efficiency," Agius noted. "It's about leaving something behind—something real." The fund's expansion into the kava and cocoa sectors further amplifies its role in community-driven development. Processing centers are being planned with end-to-end supply integration to enable local producers to export value-added goods, not just raw crops. These aren't isolated CSR gestures; they are systematic investments designed to build national resilience and inclusive growth. The Politics of Trust To critics of citizenship-by-investment schemes, Vanuatu's model has long stood on precarious ground. Concerns over due diligence, international scrutiny, and transparency have haunted the program since its inception. The government's regulatory crackdown and subsequent endorsement of only a handful of agents—including VIMB—has changed that equation. With the CIIP now anchored in law, compliance enforced, and investments traceable, the program's future and VIMB's role in it look stronger than ever. Still, challenges remain. The success of the CNO Future Fund depends on continued investor interest, geopolitical stability, and the ability of the government to maintain oversight without politicizing the program. But if the past year is any indication, VIMB has found a formula that works: one rooted not just in passports, but in people. "When you tie citizenship to responsibility and outcomes," said Agius, "you're not just offering access. You're building futures."
The Advertiser
4 days ago
- Business
- The Advertiser
Trump speeds Future Fund's retreat from US markets
Australia's sovereign wealth fund will seek out more assets in places like Europe and Japan as President Donald Trump makes the US a less attractive place to invest. Although the diversification from US assets was already in train before Mr Trump's re-election, it has only increased the need for insurance against volatility, said Future Fund chair Greg Combet. "We are considering the need to build the physical portfolio in a more diversified way," the former Labor MP told a Committee for Economic Development of Australia event on Tuesday. The fund has already broadened its portfolio, with greater exposure to traditionally defensive currencies like the Euro and Japanese Yen, safehaven commodity gold, and domestic assets to hedge against inflation, higher interest rates and currency movements, Mr Combet said. "While there are still likely to be compelling opportunities in US dollar denominated asset markets, we will need to devote more time and resources to investigating other markets including Japan and the EU." On top of increased trade and security tensions as a result of Mr Trump's policies, the president's 'big beautiful bill' also threatens to drastically raise taxes for international investors, including the Future Fund. "In combination these policies and dynamics are making the US a more risky and uncertain investment destination," Mr Combet said. Depreciation of the greenback, which has fallen about 10 per cent this year against major currencies, further threatened the fund's investments, given the majority of its physical assets were in US dollars. The fund still managed a return of 7.9 per cent in the year to March 31, growing its assets to $240.8 billion. Mr Combet said the fund was continuing to perform solidly, despite the volatility created by Mr Trump's 'liberation day' tariffs and "other policy-induced disruptions". "It seems unlikely that even dramatic reversals of Trump policies would engender a return to a 'business as usual' approach from long-term investors now that investor doubt has been sown," he said. "And the trend towards deglobalisation, greater geopolitical tensions, and multi-polarity in world power pre-date President Trump and can be expected to post-date the Trump era. "We certainly do not think the dynamics I have spoken of will pass and return the world to the norms of yesteryear." Despite the uncertainty, opportunities remain for the Future Fund, which is hoping to leverage growth in demand for clean energy and data centres as artificial intelligence adoption accelerates. The fund recently added a 10 per cent stake in Transgrid, a key player in the federal government's push to expand electricity transmission infrastructure, as well as increasing its holding in data centre company CDC. "We have also committed capital - including long-dated capital expenditure programs - at the intersection of two of the big secular themes of our lifetime: the energy transition and the AI revolution," Mr Combet said. "Data centres, energy infrastructure and renewable generation all expose the Future Fund to what we will be a sustained growth story in the advancement and adoption of artificial intelligence. "Our view at the fund is that AI is coming faster than perhaps many anticipate." In a joint announcement in Seattle on Sunday, Prime Minister Anthony Albanese and global cloud computing giant Amazon revealed the company would increase its investment in Australian data centres over the next five years to $20 billion. Australia's sovereign wealth fund will seek out more assets in places like Europe and Japan as President Donald Trump makes the US a less attractive place to invest. Although the diversification from US assets was already in train before Mr Trump's re-election, it has only increased the need for insurance against volatility, said Future Fund chair Greg Combet. "We are considering the need to build the physical portfolio in a more diversified way," the former Labor MP told a Committee for Economic Development of Australia event on Tuesday. The fund has already broadened its portfolio, with greater exposure to traditionally defensive currencies like the Euro and Japanese Yen, safehaven commodity gold, and domestic assets to hedge against inflation, higher interest rates and currency movements, Mr Combet said. "While there are still likely to be compelling opportunities in US dollar denominated asset markets, we will need to devote more time and resources to investigating other markets including Japan and the EU." On top of increased trade and security tensions as a result of Mr Trump's policies, the president's 'big beautiful bill' also threatens to drastically raise taxes for international investors, including the Future Fund. "In combination these policies and dynamics are making the US a more risky and uncertain investment destination," Mr Combet said. Depreciation of the greenback, which has fallen about 10 per cent this year against major currencies, further threatened the fund's investments, given the majority of its physical assets were in US dollars. The fund still managed a return of 7.9 per cent in the year to March 31, growing its assets to $240.8 billion. Mr Combet said the fund was continuing to perform solidly, despite the volatility created by Mr Trump's 'liberation day' tariffs and "other policy-induced disruptions". "It seems unlikely that even dramatic reversals of Trump policies would engender a return to a 'business as usual' approach from long-term investors now that investor doubt has been sown," he said. "And the trend towards deglobalisation, greater geopolitical tensions, and multi-polarity in world power pre-date President Trump and can be expected to post-date the Trump era. "We certainly do not think the dynamics I have spoken of will pass and return the world to the norms of yesteryear." Despite the uncertainty, opportunities remain for the Future Fund, which is hoping to leverage growth in demand for clean energy and data centres as artificial intelligence adoption accelerates. The fund recently added a 10 per cent stake in Transgrid, a key player in the federal government's push to expand electricity transmission infrastructure, as well as increasing its holding in data centre company CDC. "We have also committed capital - including long-dated capital expenditure programs - at the intersection of two of the big secular themes of our lifetime: the energy transition and the AI revolution," Mr Combet said. "Data centres, energy infrastructure and renewable generation all expose the Future Fund to what we will be a sustained growth story in the advancement and adoption of artificial intelligence. "Our view at the fund is that AI is coming faster than perhaps many anticipate." In a joint announcement in Seattle on Sunday, Prime Minister Anthony Albanese and global cloud computing giant Amazon revealed the company would increase its investment in Australian data centres over the next five years to $20 billion. Australia's sovereign wealth fund will seek out more assets in places like Europe and Japan as President Donald Trump makes the US a less attractive place to invest. Although the diversification from US assets was already in train before Mr Trump's re-election, it has only increased the need for insurance against volatility, said Future Fund chair Greg Combet. "We are considering the need to build the physical portfolio in a more diversified way," the former Labor MP told a Committee for Economic Development of Australia event on Tuesday. The fund has already broadened its portfolio, with greater exposure to traditionally defensive currencies like the Euro and Japanese Yen, safehaven commodity gold, and domestic assets to hedge against inflation, higher interest rates and currency movements, Mr Combet said. "While there are still likely to be compelling opportunities in US dollar denominated asset markets, we will need to devote more time and resources to investigating other markets including Japan and the EU." On top of increased trade and security tensions as a result of Mr Trump's policies, the president's 'big beautiful bill' also threatens to drastically raise taxes for international investors, including the Future Fund. "In combination these policies and dynamics are making the US a more risky and uncertain investment destination," Mr Combet said. Depreciation of the greenback, which has fallen about 10 per cent this year against major currencies, further threatened the fund's investments, given the majority of its physical assets were in US dollars. The fund still managed a return of 7.9 per cent in the year to March 31, growing its assets to $240.8 billion. Mr Combet said the fund was continuing to perform solidly, despite the volatility created by Mr Trump's 'liberation day' tariffs and "other policy-induced disruptions". "It seems unlikely that even dramatic reversals of Trump policies would engender a return to a 'business as usual' approach from long-term investors now that investor doubt has been sown," he said. "And the trend towards deglobalisation, greater geopolitical tensions, and multi-polarity in world power pre-date President Trump and can be expected to post-date the Trump era. "We certainly do not think the dynamics I have spoken of will pass and return the world to the norms of yesteryear." Despite the uncertainty, opportunities remain for the Future Fund, which is hoping to leverage growth in demand for clean energy and data centres as artificial intelligence adoption accelerates. The fund recently added a 10 per cent stake in Transgrid, a key player in the federal government's push to expand electricity transmission infrastructure, as well as increasing its holding in data centre company CDC. "We have also committed capital - including long-dated capital expenditure programs - at the intersection of two of the big secular themes of our lifetime: the energy transition and the AI revolution," Mr Combet said. "Data centres, energy infrastructure and renewable generation all expose the Future Fund to what we will be a sustained growth story in the advancement and adoption of artificial intelligence. "Our view at the fund is that AI is coming faster than perhaps many anticipate." In a joint announcement in Seattle on Sunday, Prime Minister Anthony Albanese and global cloud computing giant Amazon revealed the company would increase its investment in Australian data centres over the next five years to $20 billion. Australia's sovereign wealth fund will seek out more assets in places like Europe and Japan as President Donald Trump makes the US a less attractive place to invest. Although the diversification from US assets was already in train before Mr Trump's re-election, it has only increased the need for insurance against volatility, said Future Fund chair Greg Combet. "We are considering the need to build the physical portfolio in a more diversified way," the former Labor MP told a Committee for Economic Development of Australia event on Tuesday. The fund has already broadened its portfolio, with greater exposure to traditionally defensive currencies like the Euro and Japanese Yen, safehaven commodity gold, and domestic assets to hedge against inflation, higher interest rates and currency movements, Mr Combet said. "While there are still likely to be compelling opportunities in US dollar denominated asset markets, we will need to devote more time and resources to investigating other markets including Japan and the EU." On top of increased trade and security tensions as a result of Mr Trump's policies, the president's 'big beautiful bill' also threatens to drastically raise taxes for international investors, including the Future Fund. "In combination these policies and dynamics are making the US a more risky and uncertain investment destination," Mr Combet said. Depreciation of the greenback, which has fallen about 10 per cent this year against major currencies, further threatened the fund's investments, given the majority of its physical assets were in US dollars. The fund still managed a return of 7.9 per cent in the year to March 31, growing its assets to $240.8 billion. Mr Combet said the fund was continuing to perform solidly, despite the volatility created by Mr Trump's 'liberation day' tariffs and "other policy-induced disruptions". "It seems unlikely that even dramatic reversals of Trump policies would engender a return to a 'business as usual' approach from long-term investors now that investor doubt has been sown," he said. "And the trend towards deglobalisation, greater geopolitical tensions, and multi-polarity in world power pre-date President Trump and can be expected to post-date the Trump era. "We certainly do not think the dynamics I have spoken of will pass and return the world to the norms of yesteryear." Despite the uncertainty, opportunities remain for the Future Fund, which is hoping to leverage growth in demand for clean energy and data centres as artificial intelligence adoption accelerates. The fund recently added a 10 per cent stake in Transgrid, a key player in the federal government's push to expand electricity transmission infrastructure, as well as increasing its holding in data centre company CDC. "We have also committed capital - including long-dated capital expenditure programs - at the intersection of two of the big secular themes of our lifetime: the energy transition and the AI revolution," Mr Combet said. "Data centres, energy infrastructure and renewable generation all expose the Future Fund to what we will be a sustained growth story in the advancement and adoption of artificial intelligence. "Our view at the fund is that AI is coming faster than perhaps many anticipate." In a joint announcement in Seattle on Sunday, Prime Minister Anthony Albanese and global cloud computing giant Amazon revealed the company would increase its investment in Australian data centres over the next five years to $20 billion.
Sydney Morning Herald
4 days ago
- Business
- Sydney Morning Herald
The US has become a riskier place to invest: $240b taxpayer-owned fund
The chair of the $240.8 billion Future Fund, Greg Combet, has warned that the United States has become a riskier investment destination and is likely to attract a smaller share of global capital flows, saying the Trump administration has 'added layers of volatility and uncertainty' to financial markets. Reflecting on his first year chairing the taxpayer-owned fund on Tuesday, Combet said adjusting the Future Fund's portfolio to the Trump administration's policy changes, including its objective to depreciate the US dollar, was a key priority for the fund. Combet referred to several factors that the fund is focused on, including the US review of AUKUS, which Combet said 'reinforces the fact that traditional economic and security relationships with the US are now less certain'. He also cited relations between China and the US; the two countries' intent to dominate artificial intelligence capabilities; the growing US budget deficit; the status of the US Federal Reserve and a section of US president Donald Trump's 'big, beautiful bill' which would drastically increase tax rates for Australian investors. Loading Given that the majority of the Future Fund's physical assets are denominated in US dollars, he reiterated a need to increase its exposure to other currencies including the euro and yen, to include commodities such as gold to its portfolio, and finally, to prioritise Australian assets. 'It seems unlikely that even dramatic reversals of Trump policies would engender a return to a 'business as usual' approach from long-term investors now that doubt has been sown,' Combet told a Committee for Economic Development of Australia lunch in Sydney. He added he had doubts about relying on possible future Democratic presidencies to reverse the scale of Trump's changes. Combet, a former senior Labor minister, also underlined the growth in artificial intelligence (AI), saying Australia needed to embrace the changes triggered by the technology. He believes that estimates provided by Goldman Sachs that suggest generative AI could result in productivity growth of 16 per cent in Australia are conservative.
The Age
4 days ago
- Business
- The Age
The US has become a riskier place to invest: $240b taxpayer-owned fund
The chair of the $240.8 billion Future Fund, Greg Combet, has warned that the United States has become a riskier investment destination and is likely to attract a smaller share of global capital flows, saying the Trump administration has 'added layers of volatility and uncertainty' to financial markets. Reflecting on his first year chairing the taxpayer-owned fund on Tuesday, Combet said adjusting the Future Fund's portfolio to the Trump administration's policy changes, including its objective to depreciate the US dollar, was a key priority for the fund. Combet referred to several factors that the fund is focused on, including the US review of AUKUS, which Combet said 'reinforces the fact that traditional economic and security relationships with the US are now less certain'. He also cited relations between China and the US; the two countries' intent to dominate artificial intelligence capabilities; the growing US budget deficit; the status of the US Federal Reserve and a section of US president Donald Trump's 'big, beautiful bill' which would drastically increase tax rates for Australian investors. Loading Given that the majority of the Future Fund's physical assets are denominated in US dollars, he reiterated a need to increase its exposure to other currencies including the euro and yen, to include commodities such as gold to its portfolio, and finally, to prioritise Australian assets. 'It seems unlikely that even dramatic reversals of Trump policies would engender a return to a 'business as usual' approach from long-term investors now that doubt has been sown,' Combet told a Committee for Economic Development of Australia lunch in Sydney. He added he had doubts about relying on possible future Democratic presidencies to reverse the scale of Trump's changes. Combet, a former senior Labor minister, also underlined the growth in artificial intelligence (AI), saying Australia needed to embrace the changes triggered by the technology. He believes that estimates provided by Goldman Sachs that suggest generative AI could result in productivity growth of 16 per cent in Australia are conservative.
Perth Now
4 days ago
- Business
- Perth Now
Trump speeds Future Fund's retreat from US markets
Australia's sovereign wealth fund will seek out more assets in places like Europe and Japan as President Donald Trump makes the US a less attractive place to invest. Although the diversification from US assets was already in train before Mr Trump's re-election, it has only increased the need for insurance against volatility, said Future Fund chair Greg Combet. "We are considering the need to build the physical portfolio in a more diversified way," the former Labor MP told a Committee for Economic Development of Australia event on Tuesday. The fund has already broadened its portfolio, with greater exposure to traditionally defensive currencies like the Euro and Japanese Yen, safehaven commodity gold, and domestic assets to hedge against inflation, higher interest rates and currency movements, Mr Combet said. "While there are still likely to be compelling opportunities in US dollar denominated asset markets, we will need to devote more time and resources to investigating other markets including Japan and the EU." On top of increased trade and security tensions as a result of Mr Trump's policies, the president's 'big beautiful bill' also threatens to drastically raise taxes for international investors, including the Future Fund. "In combination these policies and dynamics are making the US a more risky and uncertain investment destination," Mr Combet said. Depreciation of the greenback, which has fallen about 10 per cent this year against major currencies, further threatened the fund's investments, given the majority of its physical assets were in US dollars. The fund still managed a return of 7.9 per cent in the year to March 31, growing its assets to $240.8 billion. Mr Combet said the fund was continuing to perform solidly, despite the volatility created by Mr Trump's 'liberation day' tariffs and "other policy-induced disruptions". "It seems unlikely that even dramatic reversals of Trump policies would engender a return to a 'business as usual' approach from long-term investors now that investor doubt has been sown," he said. "And the trend towards deglobalisation, greater geopolitical tensions, and multi-polarity in world power pre-date President Trump and can be expected to post-date the Trump era. "We certainly do not think the dynamics I have spoken of will pass and return the world to the norms of yesteryear." Despite the uncertainty, opportunities remain for the Future Fund, which is hoping to leverage growth in demand for clean energy and data centres as artificial intelligence adoption accelerates. The fund recently added a 10 per cent stake in Transgrid, a key player in the federal government's push to expand electricity transmission infrastructure, as well as increasing its holding in data centre company CDC. "We have also committed capital - including long-dated capital expenditure programs - at the intersection of two of the big secular themes of our lifetime: the energy transition and the AI revolution," Mr Combet said. "Data centres, energy infrastructure and renewable generation all expose the Future Fund to what we will be a sustained growth story in the advancement and adoption of artificial intelligence. "Our view at the fund is that AI is coming faster than perhaps many anticipate." In a joint announcement in Seattle on Sunday, Prime Minister Anthony Albanese and global cloud computing giant Amazon revealed the company would increase its investment in Australian data centres over the next five years to $20 billion.
