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Abu Dhabi SWF says ‘ready’ to buy more hotel assets

Posted on 28 July 2014 by VRS  |  Email |Print

The Abu Dhabi Investment Authority is ready to purchase more real estate hotel assets as the right opportunities appear, according to its head of hospitality.ADIA, one of the world’s largest sovereign wealth funds, continues to see the United States as a viable investment option, but is also looking elsewhere around the globe, said Mike Goodson.
Goodson was quoted as saying: “We’re always very likely to be a net investor as long as our overall fund keeps growing. Given the world situation, that should happen………………………………………..Full Article: Source

Singapore GIC invests almost $500 million in 2 Philippine companies

Posted on 28 July 2014 by VRS  |  Email |Print

Singapore GIC, one of the ten largest sovereign wealth funds in the world, manages more than US$100 billion in assets and has decided to invest a part of those assets in the Philippine market.
A report by Milbank, one of GIC’s financial advisers, reveals that the fund made an approximately US$77 million investment through its private equity arm in the form of an exchangeable loan in Century Canning Corp., parent company of Century Pacific Food (CNPF), one of the Philippine’s largest canned fish and meat dairy products. The investment is exchangeable for shares of CNPF that would give GIC a roughly 11% stake in the company………………………………………..Full Article: Source

New Zealand SWF to invest in catastrophe reinsurance

Posted on 25 July 2014 by VRS  |  Email |Print

The New Zealand Super Fund (NZSF) is looking to invest in catastrophe risk insurance due to the sector’s cyclical nature and strong liquidity, according to Pablo Matias Sosa, senior investment strategist at the $22 billion sovereign wealth fund (SWF).
Catastrophe reinsurance typically sees firms underwrite losses on large scale, tail-risk events, such as Hurricane Katrina, and Sosa said that this was an alternative investment the fund was considering diversifying into………………………………………..Full Article: Source

Temasek divests New China Life stake in block

Posted on 25 July 2014 by VRS  |  Email |Print

Singapore’s Temasek Holdings sold its stake in New China Life, China’s third largest insurer, on Thursday after launching a 78 million share block trade after the market close.
Joint leads Goldman Sachs and UBS marketed the deal at HK$27.30 to HK$27.85 per share before pricing towards the bottom of the range at HK$27.45. This represented a 5.5% discount to the stock’s HK$29.05 close. About 100 accounts placed orders in the $276 million deal but allocations were skewed towards a couple of large anchor accounts, which the leads had built the deal around………………………………………..Full Article: Source

Qatari Investment Authority weighs up Sainsbury swoop seven years after walking away from GBP10.6bn bid

Posted on 25 July 2014 by VRS  |  Email |Print

It’s almost seven years since the Qatari Investment Authority walked away from its £10.6bn or £6 a share indicative bid for J Sainsbury, blaming its retreat on credit markets which made raising funding more expensive. It retained a 26 per cent stake and has remained a loyal shareholder. Until now.
Rumours suggest the Qataris were underwhelmed with Mike Coupe’s appointment as chief executive to succeed Justin King, who was credited with turning the group around during an impressive 10-year tenure. But with the shares still languishing just above £3 a pop and the grocer continuing to suffer increasing pressure from foreign discounters Aldi and Lidl, the Qataris are believed to be ready to go on the offensive again………………………………………..Full Article: Source

Abu Dhabi Investment Authority Likely to Acquire State Tower Namsan

Posted on 25 July 2014 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA), one of the three largest sovereign funds in the world, is emerging as a promising candidate for the acquisition of the State Tower Namsan located in Seoul.
According to industry sources, Shinhan BNP Paribas Asset Management and Savills Korea, which are moving ahead with the sale of the office building, have interviews with the ADIA and IGIS Asset Management on July 24 in order to select a preferred bidder.The final candidates include the ADIA, IGIS Asset Management, RREEF under Deutsche Bank, and Ascendas of Singapore. The preferred bidder is selected late this month after overall evaluation of funding and asset management capabilities……………………………………….Full Article: Source

Goldman, ADIA Said to Weigh Joining Gavea in Snagged Fleury Deal

Posted on 25 July 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc’s private-equity arm and Abu Dhabi Investment Authority are considering joining Gavea Investimentos Ltda. in a bid for Brazilian medical-services company Fleury SA, people with knowledge of the matter said.
In joining Gavea, the two investors would be wading into a bid for a company that has been on the market for more than six months. Fleury, which has a market value of about 2.6 billion reais ($1.2 billion), said in March that it was in exclusive talks with Gavea………………………………………..Full Article: Source

Norway Fund’s Top Russia Holding Include VTB, GAZ Auto

Posted on 25 July 2014 by VRS  |  Email |Print

Norway’s $890 billion sovereign wealth fund, the world’s biggest, has said it’s reassessing its investments in Russia as the European Union considers expanding sanctions against the country.
The fund will make “the necessary adjustments” if its holdings were to be affected by sanctions against Russia that Norway backs, Runar Malkenes, a Finance Ministry spokesman, said this week. Below is a list of the fund’s 20 biggest stakes in Russian companies, ranked by percent of ownership, as of Dec. 31, according to data from the wealth fund’s website………………………………………..Full Article: Source

World’s Biggest Wealth Fund Among Reach Energy Investors

Posted on 24 July 2014 by VRS  |  Email |Print

Malaysia’s Reach Energy Bhd. has attracted investors including Norway’s $890 billion sovereign wealth fund in an initial public offering to fund its acquisitions of oil and gas fields. orges Bank Investment Management, the world’s largest sovereign wealth fund, is among cornerstone buyers in the 750 million-ringgit ($237 million) IPO of Reach Energy, Managing Director Shahul Hamid Mohd Ismail said in a July 21 interview.
State-run funds Koperasi Permodalan Felda Malaysia Bhd. and Lembaga Tabung Haji are also buying stakes in the so-called special-purpose acquisition company, Shahul said………………………………………..Full Article: Source

World’s biggest wealth fund reviews US$8 billion Russian holdings

Posted on 24 July 2014 by VRS  |  Email |Print

Norway’s US$890 billion (RM2.82 trillion) sovereign wealth fund, the world’s biggest, is reassessing its holdings in Russia as the European Union considers expanding sanctions against the country. Since the July 17 downing of Malaysia Airlines flight MH17 by a missile that the US says was probably supplied by the Russian military, sentiment toward assets based in Russia has soured further.
The government of Norway, which isn’t an EU member, said it’s ready to adjust the fund’s holdings to reflect the changing geopolitical climate. The European Commission will present proposals for more “targeted measures” to national officials……………………………………….Full Article: Source

Goldman, Khazanah among investors nearing Huarong deal

Posted on 24 July 2014 by VRS  |  Email |Print

Goldman Sachs and private equity firm Warburg Pincus are among the investors nearing a deal to buy an up to 20% stake in China Huarong Asset Management Ltd for about US$2bil (RM6.25bil), seeking a share in the profitable business of bad loan management in China.
Other investors preparing to buy into China’s biggest manager of non-performing loans include Malaysian state investor Khazanah Nasional Bhd, China state-backed CITIC Group, China International Capital Corp (CICC), conglomerate Fosun Group and China state-backed COFCO Corp, the people familiar with the matter told Reuters………………………………………..Full Article: Source

Qatar’s stake in Glencore in focus

Posted on 23 July 2014 by VRS  |  Email |Print

A curious stock exchange filing suggesting that Qatar Holding had trimmed its stake in Glencore drew attention to the FTSE 100 commodities giant. The sovereign wealth fund is the biggest shareholder in Glencore and played a key role in its takeover of Xstrata in 2012 when, as the bid target’s second-largest investor, it initially opposed the blockbuster deal.
On Tuesday, Qatar Holding was in focus once again as traders picked up on a filing that, on first read, caused some confusion about its Glencore stake………………………………………..Full Article: Source

Bulgaria speaks to shareholder Oman about Corpbank rescue

Posted on 21 July 2014 by VRS  |  Email |Print

Bulgaria’s finance minister spoke to the head of Oman’s sovereign wealth fund on Friday about help for Corporate Commercial Bank and said the government now hoped to engineer a private rescue rather than a state bailout of the failing bank.
Corpbank, was forced into the control of Bulgaria’s central bank in June after depositors unnerved by reports of shady deals by the bank’s main owner withdrew more than a fifth of its total deposits. A subsequent audit showed activities at the bank “incompatible with the law and good banking practices” according to the central bank………………………………………..Full Article: Source

Abu Dhabi wealth fund eyes local hotel assets

Posted on 18 July 2014 by VRS  |  Email |Print

One of the world’s largest sovereign wealth funds, the Abu Dhabi Investment Authority, could be searching for more property in Australia, according to the head of its hotel investments division.
Mike Goodson, visiting Sydney for the first time since concluding a record-breaking $800 million purchase of Australia’s largest hotel owner, Tourism Asset Holdings in September last year, said his phone was ringing regularly………………………………………..Full Article: Source

Qatar’s outward FDI increases to $8.02bn

Posted on 17 July 2014 by VRS  |  Email |Print

Qatar’s outward foreign direct investment (FDI) flow surged to a huge $8.02bn last year, accounting for 14 percent of the country’s gross fixed capital formation or GFCF compared to 3.4 percent a year ago.
SWFs are also expanding their investment in real estate markets in developed countries. For example, in early 2014, the Abu Dhabi Investment Authority and Singapore’s GIC purchased an office building in New York for $1.3bn, and China’s CIC spent £800m for an office area in London. In December 2013, GIC and Kuwait’s government real estate company bought office buildings in London for £1.7bn………………………………………..Full Article: Source

New Zealand Superannuation Fund Invests In Manuka Health

Posted on 15 July 2014 by VRS  |  Email |Print

The New Zealand Superannuation Fund (NZSF), via Waterman Capital, in May 2012 took a stake in natural health products company Manuka Health New Zealand Ltd. Waterman Capital is a private equity investor contracted by NZSF – the New Zealand Government’s sovereign investment fund – to invest in New Zealand’s most promising companies. Watermans owns 20% of Manuka Health.
Kerry Paul, Manuka Health’s Chief Executive, said Waterman’s investment was a welcome acknowledgement of Manuka’s strong growth path………………………………………..Full Article: Source

New Zealand Superannuation Fund Invests in Manuka Health

Posted on 14 July 2014 by VRS  |  Email |Print

The New Zealand Superannuation Fund (NZSF), via Waterman Capital, has taken a 20% stake in natural health products company Manuka Health New Zealand Ltd. Waterman Capital is a private equity investor contracted by NZSF – the New Zealand Government’s sovereign investment fund – to invest in New Zealand’s most promising companies.
Kerry Paul, Manuka Health’s Chief Executive, said Waterman’s investment was a welcome acknowledgement of Manuka’s strong growth path. “It’s great that New Zealanders, via this investment, will benefit from the development of this natural New Zealand resource………………………………………..Full Article: Source

Masraf Al-Rayan sells Seef Lusail stake to govt fund

Posted on 14 July 2014 by VRS  |  Email |Print

Masraf Al-Rayan, Qatar’s largest Islamic bank by market value, said on Sunday it had agreed to sell its 50 percent stake in Seef Lusail Real Estate Development Co. to the real estate arm of the Gulf state’s sovereign wealth fund.
The bank, which did not disclose the sale price in its statement, had previously owned the company equally with Qatari Diar Infrastructure Company. Under the agreement, it will divest a 49 percent stake to its joint venture partner, with the remaining 1 percent sold to Qatari Diar Real Estate Investment Company. Both are units of Qatari Diar, owned by the Qatar Investment Authority………………………………………..Full Article: Source

Temasek’s portfolio gains include US$4b from government

Posted on 11 July 2014 by VRS  |  Email |Print

Temasek Holdings Pte’s performance was helped by a S$5 billion (RM112.78 billion) capital injection from Singapore’s Ministry of Finance, according to the state-owned investment firm’s annual report.
Temasek’s portfolio rose by S$8 billion to S$223 billion as of March 31, the company said in its review on July 8. The gain included the funds from the ministry, its only shareholder, “as part of their asset allocation decision,” it said………………………………………..Full Article: Source

Kazkom Completes BTA Purchase

Posted on 11 July 2014 by VRS  |  Email |Print

Kazkommertsbank (KKB), one of the largest banks in Central Asia, has announced it has completed the acquisition of BTA Bank, the Times of Central Asia reports. On June 30, 2014, as per their earlier agreements, Kazkommertsbank and Kenes Rakishev, a 34-year-old businessman and venture investor, each bought a 46.5% share in BTA Bank from Kazakhstan’s Samruk-Kazyna Sovereign Wealth Fund, KKB said.
Simultaneously, Samruk-Kazyna handed over its remaining 4.26% share in BTA Bank to KKB, according to the Trust Agreement. This provided KKB with over 50% of voting rights and operational control of BTA………………………………………..Full Article: Source

Qatar sells $443 mln of LSE shares at 1915p - source

Posted on 11 July 2014 by VRS  |  Email |Print

Sovereign wealth fund Qatar Holding has sold 260.1 million pounds ($442.6 million) worth of shares in London Stock Exchange Group (LSE), a source familiar with the matter said on Thursday, ahead of the LSE’s impending $1.6 billion rights issue.
Qatar sold the shares at 1,915 pence each as part of its portfolio management, the source said, adding that Qatar remained a supportive shareholder of the LSE. The disposal leaves Qatar with a stake of around 10.3 percent in the company………………………………………..Full Article: Source

NZ Super Fund - I’m invested in what?

Posted on 11 July 2014 by VRS  |  Email |Print

K9 Natural’s chief executive, Calvin Smith, says the Super Fund’s expansion capital strategy is a no-brainer, as there is a serious funding gap in New Zealand for high growth companies.
“The Super Fund is all about growth and yield over the long term … and if you look at our economy, it’s the small- to medium-sized businesses that are growing the fastest so they should be offering the best investment return.”……………………………………….Full Article: Source

Qatar to sell down stake in LSE

Posted on 10 July 2014 by VRS  |  Email |Print

The Qatar Investment Authority is to sell down a third of its stake in the London Stock Exchange Group ahead of the bourse’s $1.6bn rights issue to help purchase Frank Russell, the US index compiler.
The sovereign wealth fund has instructed Bank of America Merrill Lynch and Citigroup to sell a near 5 per cent stake in an accelerated bookbuild, said two people familiar with the situation. The QIA is expected to retain a 10 per cent stake in the LSE, with the deal announced on Thursday morning………………………………………..Full Article: Source

Abu Dhabi Said to Explore $2 Billion Sale of Fund Stakes

Posted on 10 July 2014 by VRS  |  Email |Print

Abu Dhabi Investment Authority, one of the world’s largest sovereign-wealth funds, is said to be considering selling as much as $2 billion in private-equity fund stakes.
ADIA, which invests on behalf of the government of Abu Dhabi, hired Cogent Partners to advise on the sale, two people with knowledge of the deal said. The portfolio consists mostly of positions in buyout funds, said the people, who asked not to be identified because the information is private………………………………………..Full Article: Source

Bahrain fund open to McLaren stake sale

Posted on 10 July 2014 by VRS  |  Email |Print

The chief executive of Bahrain’s sovereign wealth fund, Mumtalakat Holding Company, has confirmed that while there were no talks with Honda about buying its stake in U.K. automaker McLaren, a sale of the luxury sports car group was still an option.
“Our stake in McLaren, you know, we are happy to have it there. If there is a business opportunity for somebody to buy from us we look at it commercially, but there is no talk at the moment directly with them (Honda) no,” Mahmood Al Kooheji said………………………………………..Full Article: Source

Singapore’s Investment Firm Buys Health-Care, Consumer Firms to Tap New Growth

Posted on 10 July 2014 by VRS  |  Email |Print

Temasek Holdings Pte is increasing investments in consumer, technology and health-care companies as Singapore’s state-investment firm becomes less reliant on financial assets.
The value of its holdings increased 3.7 percent to a record S$223 billion ($179 billion) in the 12 months to March 31 from the previous year, while total shareholder return, including dividends, shrunk to 1.5 percent from 8.9 percent, it said in its annual review yesterday. The value of its holdings rose 8.6 percent in the year to March 2013………………………………………..Full Article: Source

Temasek Ramps Up New Investments

Posted on 09 July 2014 by VRS  |  Email |Print

Temasek Holdings Pte. Ltd. increased its investments in the year ended in March to the highest since the global financial crisis, even as weaker markets in Asia slowed the growth of its portfolio, which touched a record 223 billion Singapore dollars (US$179 billion).
Singapore’s state-investment company invested S$24 billion, up 20% from the preceding year, as it capitalized on opportunities from an uneven global economic recovery, according to its latest annual report released Tuesday…………………………………..Full Article: Source

Here’s What Temasek Bought Over the Past Year

Posted on 09 July 2014 by VRS  |  Email |Print

Singapore state fund Temasek Holdings Pte. Ltd. released its performance review for the 2014 fiscal year on Tuesday. The firm has a lot of influence as one of Asia’s biggest investors. So, what did it get up to over the past year?
Temasek says it made S$24 billion (about US$19.2 billion) of new investments and divested S$10 billion in the year through March, writing that it sought “to take advantage of market weakness in Asia.” It invested the most in the financial services, life sciences and energy sectors, according to the review…………………………………..Full Article: Source

Temasek remains keen on Chinese lenders

Posted on 09 July 2014 by VRS  |  Email |Print

Singapore’s sovereign investor Temasek Holdings Pte Ltd said yesterday it intends to keep investing in Chinese banks even as it reported a slowdown in its portfolio growth due to a drop in the value of some of its bank holdings.
Temasek, headed by Ho Ching, the wife of Prime Minister Lee Hsien Loong, owns a six per cent stake in China Construction Bank and a two per cent stake in Industrial and Commercial Bank of China. It also has holdings in other banks, including a stake of just under 18 per cent in British bank Standard Chartered…………………………………..Full Article: Source

Khazanah units in JV to develop ’smart city’

Posted on 03 July 2014 by VRS  |  Email |Print

Telekom Malaysia Bhd (TM) has entered into a deal with UEM Sunrise Bhd and Iskandar Investment Bhd (IIB) to form a joint venture (JV) company that will offer and operate smart services in Nusajaya, Johor. TM will hold a controlling stake of 51% in the JV at a cost of RM31 million.
Khazanah Nasional Bhd is the major shareholder of UEM Sunrise via its wholly owned subsidiary, UEM Group Bhd, as well as being the major shareholder of TM and IIB, and Khazanah is deemed to be interested in the proposed JV………………………………………..Full Article: Source

Russian state fund attracts western investors for Moscow Exchange deal

Posted on 03 July 2014 by VRS  |  Email |Print

Several investors, including those from Europe and the US, have partnered with a Russian state-owned fund to invest in the Moscow stock exchange, despite rising tensions with the west over Russia’s annexation of the Ukrainian region of Crimea earlier this year.
The Russian Direct Investment Fund, a $10 billion vehicle set up in 2011 to help attract foreign investment into the country, said on Wednesday that it has teamed up with a consortium of unnamed institutional investors from the UK, Germany, US, China, Singapore, United Arab Emirates and Qatar to buy part of the Moscow Exchange being sold by the Central Bank of Russia………………………………………..Full Article: Source

Adia increases focus on EMs, China, credit

Posted on 03 July 2014 by VRS  |  Email |Print

Abu Dhabi’s sovereign wealth fund sees global growth driven increasingly by emerging markets, with China assuming a much greater role in the cycle, and is positioning its portfolio accordingly.
When an investor of such size - with an estimated $773 billion under management - makes such a call, it is likely to have big implications for world markets. One example of what Abu Dhabi Investment Authority (Adia) has in mind: it received approval to raise its allocation to China A-shares under the country’s qualified foreign institutional investor programme to $1 billion from $500 million………………………………………..Full Article: Source

NZ malls’ ownership under review

Posted on 02 July 2014 by VRS  |  Email |Print

Rumours are flying as to whether the new owner of Westfield’s shopping malls might sell half or more of its New Zealand portfolio. Scentre Group listed on the ASX yesterday after being created out of a restructure of Westfield’s New Zealand and Australian retail assets.
The rumours were that Singapore’s sovereign wealth fund, GIC, and Canadian pension fund CPPIB were keen to acquire a stake, he said………………………………………..Full Article: Source

Norway Sovereign Wealth Fund Unveils “New Strategy” - Buy 5% Of Every European Stock

Posted on 26 June 2014 by VRS  |  Email |Print

Having learned last week that the world’s central banks are their sovereign wealth proxies have secretly pumped over $29 trillion into markets in the last few years, it is not entirely surprising to hear from one of the largest - Norway $888 billion oil fund - that it is buying stocks with bond hands and feet.
As The Financial Times reports, Yngve Slyngstad, chief executive of Norway’s sovereign wealth fund, is hiring aggressively to manage its real estate portfolio and while the oil fund already owns 2.5% of every listed European company on average, it plans to go above 5%. Phew, bagholder found………………………………………….Full Article: Source

Russia: Minister Proposes Splurging Welfare Fund on Infrastructure Projects

Posted on 26 June 2014 by VRS  |  Email |Print

Russia should take all of the money from a fund earmarked to cover future pension deficits and invest it in profitable infrastructure projects to generate good returns, Economic Development Minister Alexei Ulyukayev told the Vedomosti business daily in an interview published Wednesday. The government earlier this month raised the cap on spending from the National Welfare Fund, which collects revenue from oil and gas sales, the country’s biggest exports.
It now allows 60 percent of the fund to be spent on domestic infrastructure projects, up from an earlier 40 percent. The fund, designated to cover the future pension deficit of the country’s rapidly aging population, was $87 billion at the beginning of the month………………………………………..Full Article: Source

Temasek takes stake in Santander custody business

Posted on 26 June 2014 by VRS  |  Email |Print

Singaporean SWF joins with private equity firm Warburg Pincus to buy half of Santander’s custody business - giving the Spanish bank’s balance sheet a welcome boost. Singaporean sovereign wealth fund Temasek has partnered with private equity firm Warburg Pincus to buy 50% of Santander’s custody business in Spain, Brazil and Mexico, in a move set to make the Spanish bank “a leader in the custody business”, Santander said.
Santander already looks after €738 billion in assets under custody in the three countries. The transaction values the business at €975 million and will generate a net capital gain for the Santander Group of approximately €410 million, which will be used to strengthen the balance sheet, the bank said………………………………………..Full Article: Source

KKR Joins Sovereigns Seeking Seoul Skyline Yields

Posted on 26 June 2014 by VRS  |  Email |Print

KKR & Co. bought an skyscraper in downtown Seoul, within walking distance from blocks owned by wealth funds of Azerbaijan and Singapore, as falling bond yields and a revived economy spurs a search for higher returns.
The private-equity firm run by Henry Kravis and George Roberts acquired the K Twin Towers in Seoul this month, after Azerbaijan’s state oil fund spent $447 million for a building in April. Seoul office prices rose 11 percent in the year to April 30, with yields of 5.67 percent, according to Real Capital Analytics Inc. Five-year sovereign yields fell almost half a percentage point to 2.9 percent in 12 months………………………………………..Full Article: Source

Oman Fund Held Talks With Bulgaria About Corpbank Rescue

Posted on 26 June 2014 by VRS  |  Email |Print

Oman’s sovereign wealth fund held talks with the Bulgarian government and central bank on Tuesday about recapitalising Corporate Commercial Bank (Corpbank), Oman’s honorary consul in Sofia told Reuters on Wednesday.
Bulgaria plans to nationalise the bank, which suffered a run on deposits last week and was subsequently taken over by the central bank, if talks with shareholders including Oman fail. That prospect looked the most likely outcome after Prime Minister Plamen Oresharski said on Tuesday that shareholders were “unlikely” to rescue the country’s fourth-largest lender………………………………………..Full Article: Source

Norway’s oil fund to take bigger stakes in companies

Posted on 25 June 2014 by VRS  |  Email |Print

Norway’s $890bn oil fund is accelerating its push to become a more active investor as the world’s biggest sovereign wealth fund said it would double the number of companies it owned big stakes in over the next three years.
In its 2014-2016 strategy published on Tuesday, Norges Bank Investment Management, the manager of the oil fund, showed how it would deal with the challenges of its ever-increasing size, having tripled its assets since 2007………………………………………..Full Article: Source

Norway’s SWF Lays Out Three-Year Strategic Plan

Posted on 25 June 2014 by VRS  |  Email |Print

Norway’s $888 billion sovereign wealth fund plans to bring more of its real estate portfolio under in-house management as part of a move to broaden its portfolio. Laying out its plan for 2014-16 in a strategy report published this morning, Norges Bank Investment Management (NBIM)—the group responsible for the management of the Government Pension Fund Global—said it would add “new frontier markets” to its equity portfolio, as well as include more currencies in its fixed income allocation and take larger stakes in companies.
NBIM said it planned to invest 1% of the fund a year—roughly equal to $9 billion according to the fund’s current size—into private real estate markets between 2014 and 2016. The group also stated its intention to take on full ownership of more property investments………………………………………..Full Article: Source

World’s largest sovereign wealth fund to hike NYC holdings

Posted on 25 June 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund, already a major investor in New York City real estate, is looking to grow its sizable property portfolio over the next three years. The world’s largest sovereign wealth fund plans to invest 1 percent of its overall portfolio, or about $9 billion, in the private real estate market in each of the next three years, the New York Times reported.
Real estate now accounts for roughly 1.2 percent of the fund’s overall portfolio. But under Norway’s current government guidelines, that portion can be expanded to as much as 5 percent. The planned investment expansion will be concentrated in New York, Washington and Boston in the U.S., as well as Paris, the fund told the Times………………………………………..Full Article: Source

Sovereign wealth funds: Investing for the unforeseeable future

Posted on 24 June 2014 by VRS  |  Email |Print

Sovereign wealth funds control about $30tn, so knowing what they are doing or planning to do is very important for asset managers. Acquiring that information is difficult, however, since hugely rich entities mostly accountable only to their national governments do not tend to be particularly chatty.
The second annual Invesco sovereign asset management survey offers a few insights, in particular that sovereign funds are expecting strong flows of new money as government surpluses allow increased contributions. They also expect to use that new money to build their strategic asset allocations………………………………………..Full Article: Source

Middle East investors target old Scotland Yard hotel as next trophy asset

Posted on 23 June 2014 by VRS  |  Email |Print

Sovereign wealth funds from Kuwait and Qatar are in talks with a London developer over the acquisition of the original Scotland Yard headquarters, which is being transformed into a £10,000-a-night luxury hotel.
The Galliard Group confirmed to The Telegraph that its chief executive, Stephen Conway, has met individuals from the Middle East over the last few months, who have shown interest in buying the historic building once construction has been completed in 2016, thought to be worth £200m………………………………………..Full Article: Source

China SWF’s Latest Investment Pick: Agriculture, Food

Posted on 20 June 2014 by VRS  |  Email |Print

China Investment Corp. (CIC), China’s $650 billion sovereign wealth fund, is shifting some of its allocation to agriculture. “We believe the agriculture sector offers stability, a way of hedging against inflation and a device for spreading risk,” CIC’s CEO Ding Xuedong wrote in the Financial Times.
“We are keen to invest more across the entire value chain—in partnership with governments, multilateral organizations and like-minded institutional investors—in areas that will help to unlock the industry’s potential, increase the food supply and offer attractive returns.”……………………………………….Full Article: Source

Warburg, Temasek Buying 50% of Banco Santander’s Custody Business

Posted on 20 June 2014 by VRS  |  Email |Print

Grupo Financiero Santander Mexico, S.A.B. de C.V. announced that its parent company, Banco Santander, S.A. has entered into a definitive agreement with FINESP Holdings II B.V, an affiliate of Warburg Pincus, a private equity firm focused on growth investing, to create a leader in the custody business.
As per the terms of the agreement, which is conditional upon legal and regulatory approvals, the group which will also include Temasek, a Singapore based investment company, will acquire a 50% stake in Santander’s current custody operations in Spain, Mexico and Brazil. The remaining 50% will be owned by Santander. The transaction is expected to close in the fourth quarter of 2014………………………………………..Full Article: Source

Chinese sovereign wealth fund mismanaged investments

Posted on 19 June 2014 by VRS  |  Email |Print

China Investment Corp failed to conduct adequate due diligence on overseas investments which led to losses, the mainland’s auditor finds. The mainland’s US$575 billion sovereign wealth fund mismanaged some of its overseas investments between 2008 and last year that led to losses, the National Audit Office said yesterday without specifying the size of the loss.
It said some employees of China Investment Corp (CIC) did not conduct adequate due diligence before investing in 12 overseas projects in the past six years. And they subsequently also failed to track the performance of those investments, it said………………………………….Full Article: Source

Korea sovereign fund looks to lift Australian investments

Posted on 18 June 2014 by VRS  |  Email |Print

Australian infrastructure and real estate investment will be a target for South Korea’s $US405 billion ($433.4 billion) sovereign pension fund over the next five years as the fund significantly cranks up its offshore investments.
The head of investment strategy at the National Pension Service (NPS), Yoon Pyo Lee, said the fund planned to lift its total offshore investments by $US159 billion to $US237 billion over the next five years. NPS is the fourth-biggest sovereign pension fund in the world. More importantly it sets the investment allocation benchmark for all other large pension funds in Korea……………………………………….Full Article: Source

What should China buy with its $3.9 trillion reserves?

Posted on 18 June 2014 by VRS  |  Email |Print

China’s foreign exchange reserves rose to $3.948 trillion at the end of the first quarter. The figure in 1978 was $167 million, and in November 1996 it surpassed $100 billion for the first time. The change has been amazing.
There have been many thoughts about how we in China can make use of the forex reserve, ranging from buying assets abroad to using it as leverage in diplomatic talks. What needs emphasizing is that the reserve is not a free buffet. It corresponds to the central bank’s debt in yuan and costs dearly to maintain………………………………………..Full Article: Source

Why do Gulf sovereign funds not invest in Egypt?

Posted on 17 June 2014 by VRS  |  Email |Print

The Gulf’s support for the Egyptian economy after the dismissal of former President Mohamed Morsi on July 3, 2013, has taken several forms including bank deposits into the Central Bank of Egypt, petroleum derivatives, long-term loans and non-refundable grants. Initially it was announced that the size of this support was $12 billion.
However, during his presidential campaign Al-Sisi told the media that this support reached more than $20 billion in just 10 months. This support rescued many economic indicators of Egypt, such as that seen in the stability of the foreign exchange reserves at $17.2 billion at the end of May 2014, and the relative maintenance of the price of the Egyptian pound from a dramatic collapse………………………………………..Full Article: Source

ChrysCapital-GIC team emerges as front-runner in race to buy Destimoney from New Silk Route

Posted on 16 June 2014 by VRS  |  Email |Print

A consortium of private equity fund ChrysCapital and Singapore government’s sovereign wealth fund GIC has emerged as the front-runner to purchase growth capital fund New Silk Route’s (NSR) 100% stake in retail financial services and distribution company Destimoney.
“ChrysCapital has teamed up with GIC to bid for the financial services company. They seem to have gained a clear edge over rival bidders,” said a person directly involved with the transaction………………………………………..Full Article: Source

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