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VRS - who has written 15018 posts on Opalesque Sovereign Wealth Funds Briefing.


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Kuwait sovereign fund to resume selling stakes in local firms

Posted on 24 October 2014

The Kuwait Investment Authority (KIA) has decided to resume selling stakes in major local companies to the public, planning to offer its stake in Kuwait Investment Co in the first half of 2015, state news agency KUNA reported.

Kuwait Wealth Fund to Sell $5.4 Billion of Company Stakes

Posted on 24 October 2014

Kuwait Investment Authority, the sovereign wealth fund which started as a Bank of England account dedicated to receiving oil money, will sell stakes in three local companies worth 1.56 billion dinars ($5.4 billion).

QIA assets rise to $450bn

Posted on 24 October 2014

The size of Qatar Investment Authority ’s ( QIA ) assets has touched $450bn. The QIA has invested its fund in a wide range of sectors including banks, real estate, tourism, agriculture; both inside and outside Qatar, Al Sharq reported. The major focus of QIA ’s foreign investments is on West European countries like the [...]

Tanzania: Special fund to cater for natural resource earnings

Posted on 24 October 2014

The government is planning to establish an investment fund, Sovereign Wealth Fund (SWF), to serve as a catalyst for national development by diversifying the economy through the use of revenues from such natural resources as oil and gas. Deputy Energy and Minerals Minister Stephen Masele said in Dar es Salaam on Wednesday that the ministry [...]

China’s CIC suffers CEO reshuffle, again

Posted on 24 October 2014

China’s sovereign wealth fund CIC has been hit with another senior management setback with news that its chairman and CEO, Ding Xuedong, has been named to replace Jin Liqun as head of investment bank CICC.

China’s CICC says chairman resigns, to be replaced by head of sovereign wealth fund

Posted on 24 October 2014

China International Capital Corp (CICC) said on Thursday its Chairman Jin Liqun resigned from his post and will be replaced by the head of the country’s sovereign wealth fund. China Investment Corporation’s current Chairman and Chief Executive Ding Xuedong has been appointed as the new CICC chairman, the investment bank said in a statement.

Why super funds aren’t sold on infrastructure

Posted on 24 October 2014

As China pushes to set up a regional infrastructure bank to lend for major projects, it’s worth revisiting just who will invest in the bulging pipeline of Australian infrastructure assets coming to market in the next 12 months. The obvious candidates are Australia’s superannuation funds, which manage some $1.8 trillion in assets but remain heavily [...]

Tory Peer Proposes Sovereign Wealth Fund Amendment to UK Infrastructure Bill

Posted on 24 October 2014

Lord Hodgson of Astley Abbotts, a Tory peer, proposed an amendment to the UK infrastructure bill. In it, Hodgson entails the formation of a soverign wealth fund being funded by shale gas revenue. Hydraulic fracturing, also known as fracking, could provide the UK with a boom in energy revenue.

The first in the history VTB Bank Supervisory Council meeting outside of RF held in Baku

Posted on 24 October 2014

The first in the history of VTB Bank Supervisory Council meeting outside of RF was held in Baku. According to the State Oil Fund of Azerbaijan (SOFAZ), the meeting was held on October 22.

SSC: stock surveillance system adapted even to such mega deals as issue of bonds of Southern Gas Corridor

Posted on 24 October 2014

The State Securities Committee of Azerbaijan declares that its system of supervision over the operations with securities adapted even to mega deals, including subscription of the State Oil Fund (SOFAZ) for bonds of CJSC Southern Gas Corridor (Cənub Qaz Dəhlizi, CQD).

Investors Can Learn From Sovereign Wealth Fund Painful Lessons

Posted on 24 October 2014

In recent years I’ve been watching the mismanaged investments of another class of supposedly savvy investors—sovereign wealth funds. These emerging heavyweight investors—new to Wall Street—seem to be making all the wrong moves, such as blindly trusting the same old investment powerhouses that have proven to most Americans they can’t be trusted.

Korea Investment Corp. Learns Hard Lesson

Posted on 23 October 2014

Korea Investment Corp. , South Korea’s $72 billion sovereign-wealth fund, found out the hard way that cutting out the middleman isn’t always easy. The fund began doing deals on its own, or “direct investing,” in the late 2000s, a shift from its practice of using private-equity firms to handle the deal making.

PNG think tank slams government handling of sovereign wealth fund

Posted on 23 October 2014

Papua New Guinea’s National Research Institute has raised serious concerns about the level of secrecy they says surrounds the creation of the country’s Sovereign Wealth Fund. The NRI says there needs to be more open debate on how the fund will operate, and on how it will be accountable if all Papua New Guineans are [...]

1MDB striving for strategic development

Posted on 23 October 2014

1MDB is a company that can’t seem to keep itself out of the news. Everyone, from politicians and business figures to the man on the street, seems to have a view on it and the impending initial public offering (IPO) of its energy business is only likely to increase the scrutiny the company faces. For [...]

TIH acquires $129 million of assets from Temasek

Posted on 23 October 2014

Singapore-listed private equity fund TIH has completed a $129 million acquisition of assets from Temasek Holdings. The move is part of TIH’s new strategy to move beyond private equity and venture capital investments, TIH chairman Kin Chan said in a statement.

IFC may invest up to $75M in Temasek’s local NBFC arm Fullerton India through NCDs

Posted on 23 October 2014

International Finance Corporation (IFC), the private sector investment arm of the World Bank, may put in up to Rs 450 crore ($73.6 million) in Mumbai-based Fullerton India Credit Company Ltd (FICCL), a financial services firm owned by Singapore’s sovereign wealth fund Temasek, it said on Tuesday.

NZ Super Fund encouraged to establish derivatives policy

Posted on 23 October 2014

The New Zealand Superannuation Fund, which was set up to partially cover the cost of a ballooning baby boomer pension bill, has been encouraged to bed in a series of organisational changes over the past few years, and implement a new policy managing its investment in derivative products.

Rosneft Asks for $49 Billion From State Welfare Fund to Survive Sanctions

Posted on 23 October 2014

State-owned oil major Rosneft has requested more than 2 trillion rubles ($49 billion) from one of Russia’s oil-revenue-funded, rainy-day reserves to help it weather Western sanctions, Finance Minster Anton Siluanov told news agency RIA Novosti on Wednesday.

Russia’s energy companies may seek aid from National Welfare Fund — Dvorkovich

Posted on 23 October 2014

Russian oil and gas companies may seek financial aid from the country’s National Welfare Fund (NWF) amid Western sanctions, Deputy Prime Minister Arkady Dvorkovich said on Wednesday. “The government is ready to consider proposals on projects in the oil and gas sector,” Dvorkovich said at the national oil and gas forum.

FG, states share $2.7bn from Excess Crude Account

Posted on 23 October 2014

The country’s revenue fell by N99.55bn in the month of September, thereby causing the three tiers of government on Wednesday to share N2.7bn that should have been transferred to the Excess Crude Account.

KIA resumes share transfer program to private sector

Posted on 23 October 2014

The Board of Directors of Kuwait Investment Authority has approved resumption of its program regarding transferring its shares from local companies to the private sector, KIA stated Wednesday.

Sovereign wealth funds: Stash or spend?

Posted on 22 October 2014

Resource-rich regions have various ways of sharing the wealth. Some are more jovial than others. On October 2, every person living in Alaska was given $1,884. Although the amount was, as Time magazine noted, enough to buy a trip someplace warmer, the state’s cash-for-residency deal is just as likely to sell one-way tickets going north.

Nigeria’s Sovereign Wealth Fund: Investment plans unaffected by falling oil prices

Posted on 22 October 2014

Nigeria’s sovereign wealth fund said its investment programme over the next six months, including on infrastructure, will go ahead, even as revenues that provide its capital are hit by falling oil prices.

Zambia needs wealth fund

Posted on 22 October 2014

In the 2015 national budget Government, through the Ministry of Finance, has set aside K100 million towards the creation of a sovereign wealth fund. Minister of Finance Alexander Chikwanda has proposed that the fund be housed by Zambia’s nascent investment vehicle, the Industrial Development Corporation (IDC).

Sweet deal for GlobalFoundries and Mubadala

Posted on 22 October 2014

IBM is paying GlobalFoundries $1.5 billion to acquire IBM’s global commercial semiconductor technology business, including intellectual property, world-class technologists and technologies related to IBM Microelectronics. The acquisition is a win for GlobalFoundries and for Abu Dhabi.

SOFAZ budget revenues exceed 10 bln manats

Posted on 22 October 2014

The budget revenues of Azerbaijan’s state oil fund SOFAZ reached 10.131 billion manats in the third quarter of 2014. This comes as the fund’s budget expenditures constituted 8.041 billion manats during the same period of time.

Only 4.4% of SOFAZ investment portfolio intended for active investment

Posted on 22 October 2014

The State Oil Fund of Azerbaijan (SOFAZ), known for its conservatism, intended no more than 4.4% of its investment portfolio or about $1.639 bn for active investment instruments.

GIC buys office space in Tokyo

Posted on 22 October 2014

Singapore sovereign wealth fund GIC has acquired an office component within a building in central Tokyo, estimated to cost about 170 billion yen (S$2 billion). The 32-storey high Pacific Century Place Marunouchi was acquired through a GIC affiliate, said GIC in a statement today (Oct 21).

Investors in Japanese Property Look Beyond Tokyo

Posted on 22 October 2014

When it costs nearly $2 billion to buy just part of a building in a prime Tokyo location, it is no wonder some investors in Japanese property are looking farther afield. Singapore sovereign-wealth fund GIC Pte. Ltd. said Tuesday it bought 24 floors of Pacific Century Place Marunouchi, a building next to Tokyo Station, in [...]

GIC Buys Tokyo Building in Bet on Rising Property Prices

Posted on 21 October 2014

GIC Pte, Singapore’s sovereign wealth fund, bought a building next to Tokyo Station in a bet that the city’s real estate values will continue to rise. GIC paid $1.7 billion for the property, according to a person familiar with the purchase who asked not be named because the information isn’t public. The fund, which declined [...]

Libya-Goldman clash sheds light on formerly secretive fund

Posted on 21 October 2014

In 2008, Catherine McDougall was a young Australian lawyer seconded to the Libyan Investment Authority’s offices in Tripoli to assist its legal team and review financial transactions conducted by Goldman Sachs. She was “shocked” by what she learnt, according to her witness statement detailed in a London court earlier this month.

QIA, Lau mull Lifestyle takeover

Posted on 21 October 2014

Qatar Investment Authority (QIA) and Hong Kong’s Lau family are considering options, including a full takeover of department store operator Lifestyle International Holdings Ltd, after the sovereign wealth fund bought a minority stake, according to people with knowledge of the matter.

Qatar Fund to Pay $616M for Stake in Hong Kong Retailer

Posted on 21 October 2014

Qatar Investment Authority agreed to pay about HK$4.78 billion ($616 million) for a stake in a Hong Kong department store operator as the sovereign wealth fund diversifies its global portfolio.

Can Nigeria Achieve A $6.3bn Excess Crude Account?

Posted on 21 October 2014

At the recently concluded IMF/World Bank Annual Meetings, the World Bank, arguably prompted by recent global trends such as the drop in oil prices, had advised the Nigerian Federal Government to increase its fiscal buffers by raising the excess crude account from $4.1 billion to $6.3 billion, a 54 percent increase.

State Oil Fund of Azerbaijan does not buy physical gold for 2 quarter at a run

Posted on 21 October 2014

The State Oil Fund of Azerbaijan (SOFAZ) has not bought physical gold for two quarters (Q2 and Q3 of 2014) at a run. The Fund informs that as of 1 October it had physical gold in the amount of $1.18 bn that was equivalent to 3.2% of its investment portfolio ($37.265 bn.

Oil Fund’s assets for Jan-Sept exceed $37.305 bn

Posted on 21 October 2014

The State Oil Fund of Azerbaijan (SOFAZ) increased its assets by 3.98% for Jan-Sept 2014. According to SOFAZ, over the past 9 months of the year Oil Fund’s assets grew from $35.877 bn in early 2014 up to $37.305 bn. “During the first 9 months of 2014 Oil Fund’s revenues totaled AZN 10.1 bn and [...]

Mainstream media gloss over GIC’s $269 million capital loss

Posted on 21 October 2014

GIC had actually bought the property in June 2007 when the British pound was very strong against our currency at about 1GBP=$3.06. When converted into local currency, the purchase price would be a whopping $1.469 billion. GIC had therefore made a capital loss of about $269 million, a huge embarrassment to the government.

SWFs and pensions diversify into new markets and asset classes

Posted on 21 October 2014

In Asia Pacific, sovereign wealth funds (SWFs) and pension funds have been diversifying their investments into new markets and asset classes. Alternatives are now playing a larger role in their investment portfolios. According to Dan McNicholas, head of alternative investment sector solutions, Asia Pacific, at State Street, these are more complex investment strategies.

Qatar fund to buy stake in HK department store operator for $616 mln

Posted on 20 October 2014

Qatar Holding LLC has agreed to pay $616 million for about one fifth of Lifestyle International Holdings, a department operator in Hong Kong and mainland China - the latest addition of a high-end retail brand to the sovereign wealth fund’s portfolio.

Qatar eyes $15bn Greater China spending spree

Posted on 20 October 2014

Qatar’s purchase of a stake in a Hong Kong department store chain is the beginning of a potential $15bn spending spree targeting Greater China, according to people familiar with the Gulf state’s plans. Qatar Holding, which owns stakes in Harrods, Barclays, Credit Suisse and Canary Wharf Group among others, on Monday said it would pay [...]

How Qatar funds extremists across the Middle East

Posted on 20 October 2014

Qatar is the richest country in the world per capita - and has made significant investments into various iconic London landmarks. Its sovereign wealth fund owns Knightsbridge department store Harrods and its property arm has invested substantially in the development of Chelsea Barracks. It also owns the Shard - currently the tallest building in the [...]

TIH wraps up S$129m in acquisitions from Temasek Holdings

Posted on 20 October 2014

Private equity fund TIH Limited’s subsidiary TIHT Investment Holdings has completed a S$129 million acquisition of assets from Temasek Holdings. This comprises a minority interest in CEI Contract Manufacturing Limited and the assignment of beneficial ownership in a minority interest of Mitsui Life Insurance Company Limited.

SOFAZ revenues more than $2 bn from “Shah Deniz”

Posted on 20 October 2014

The reserves are estimated at 1.2 trl of cubic meters of gas. As of October 1, 2014, since 2007 the revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project of gas condensate field “Shah Deniz” in the Azerbaijani sector of the Caspian Sea amounted to $2,006 m.

As IPO markets stumble, private equity buyers prepare to swoop

Posted on 20 October 2014

Across Europe, companies hoping to list are having their plans dashed by plunging equity prices. But what’s bad for public stock markets may be good for private equity firms. Having started the year with a record $1 trillion cash pile, private equity funds have found few chances to spend it, despite pressure from investors wanting [...]

Watch Out Banks: BAML Steps Up Game on Sovereign Wealth Funds

Posted on 20 October 2014

Bank of America Merrill Lynch (BAML) is seeking to expand ties into the Middle East and Asia, while some European banks struggle to get their houses in order. The bank was recently the global coordinator for Jimmy Choo’s initial public offering in which an Asian sovereign wealth fund became the second largest shareholder in [...]

Foreign interests trying to exploit my fragile nation, says Timor PM Xanana Gusmao

Posted on 20 October 2014

Foreign interests are trying to “dominate” East Timor, exploiting the fragility of the tiny nation to deny its rightful share of the oil and gas revenues in the Timor Sea and sow unrest, its Prime Minister says. Xanana Gusmao made the remarks as the fledgling state is embroiled in bitter fights with the Australian government [...]

1MDB not national sovereign wealth fund? What is it, then?

Posted on 17 October 2014

Prime Minister Datuk Seri Najib Razak’s controversial pet cash cow spin, 1Malaysia Development Berhad (1MDB), has denied that it is the country’s second national Sovereign Wealth Fund (SWF), after Khazanah Nasional. In an Oct 9 posting on its webpage titled “Frequently asked questions (FAQ) about 1MDB”, it reiterated that 1MDB was a strategic development company, [...]

Future Fund focuses on finding the best people

Posted on 17 October 2014

Australia’s sovereign wealth fund, the A$101 billion Future Fund, has just upped the stakes in not only attracting the best co-investment deals from fund managers, but in its bid to attract the world’s best investment professionals. Two months ago the fund’s long serving chief investment officer, David Neal, become chief executive in name (following the [...]

Citycon acquires GIC’s ownership stake in the Iso Omena shopping centre

Posted on 17 October 2014

Citycon has today agreed to acquire GIC’s 40 per cent stake in the Iso Omena shopping centre in the Helsinki region. After this transaction, Citycon owns 100 per cent of the existing shopping centre. The purchase price is in line with the current fair value of Iso Omena. GIC has been a co-investor in [...]

Temasek-Penang project seeks global names as tenants

Posted on 17 October 2014

The upcoming mixed-use development in Penang by Temasek and Penang Development Corporation (PDC) is targeting international companies as tenants in a bid to bolster Penang’s role as a major business process outsourcing (BPO) hub.

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