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AmEx will spin off business travel in $900 mln deal

Posted on 18 March 2014 by VRS  |  Email |Print

American Express Co. (AXP) agreed to sell a 50 percent stake in its business-travel division for $900 million to partners that include Qatar’s sovereign-wealth fund.
AmEx will create a joint venture with an investor group led by Certares International Bank LLC and Qatar Holding LLC, AmEx and the Qatari fund said today in separate statements. The business will use the American Express brand and be headed by Bill Glenn, the New York-based firm’s president of global commercial services, AmEx said. The consumer travel operation isn’t part of the deal………………………………………..Full Article: Source

Qataris climb aboard with Amex travel unit

Posted on 18 March 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund has stepped up its hunt for US assets by investing alongside BlackRock, Macquarie Capital and Certares in American Express’ global business travel unit.
The investors led by Certares – a New York-based boutique founded by Greg O’Hara, the former chief investment officer of JPMorgan’s Special Investors Group – spent $900m for a 50 per cent stake in the joint venture which will continue to operate under the Amex brand, the company said on Monday………………………………………..Full Article: Source

Temasek unit offers to buy Olam in $4.2 bln cash deal

Posted on 18 March 2014 by VRS  |  Email |Print

A unit of Singapore’s state-owned investment company offered to take over Olam International Ltd. in a deal that values one of the world’s top three coffee and rice traders at S$5.3 billion ($4.2 billion), reports Bloomberg.
The bid by Temasek Holdings Pte’s unit reflects growing interest in agricultural assets as rising global populations and emerging middle classes boost food demand. Breedens Investments Pte is offering S$2.23 cash per share, a 12 percent premium to Olam’s closing price of S$1.995 before the bid………………………………………..Full Article: Source

Temasek shows it’s more committed than peers with Olam offer

Posted on 18 March 2014 by VRS  |  Email |Print

Temasek Holdings Pte unit’s offer to take over Olam International Ltd. (OLAM) shows Singapore’s investment firm is more active compared with other state-owned investors, according to the Sovereign Investment Lab.
Breedens Investments Pte on March 14 said it proposed to purchase Olam in a deal that values one of the world’s top three coffee and rice traders at S$5.3 billion ($4.2 billion). Breedens is offering S$2.23 cash per share, a 12 percent premium to Olam’s closing price of S$1.995 before the bid………………………………………..Full Article: Source

Temasek unit’s offer for Olam is credit negative: Moody’s

Posted on 18 March 2014 by VRS  |  Email |Print

The offer by Temasek Holdings’s unit to take over Olam International is credit negative for the Singapore investment firm, Bloomberg news agency reported Moody’s Investors Service as saying.
The acquisition, which values one of the world’s top three coffee and rice traders at S$5.3 billion, will put pressure on Temasek’s “portfolio liquidity”, said Moody’s, which rates the investment firm at Aaa. Olam’s 2 per cent dividend yield in 2013 is also lower than Temasek’s return of about 3 per cent, it said………………………………………..Full Article: Source

GIC outlines investment principles

Posted on 17 March 2014 by VRS  |  Email |Print

GIC has offered insights into the five guiding principles it uses to ensure its investments achieve the best long-term returns for Singapore. The sovereign wealth fund also said it uses a “heat map” of the globe monitoring the way various markets are performing by using different colours on the map.
The insights were offered by GIC’s chief investment officer, Mr Lim Chow Kiat, when he spoke on Thursday at the Investment Management Association of Singapore annual conference at Raffles City Convention Centre. Even though there may be “short-term temptations”, GIC’s mission to safeguard and enhance the nation’s reserves for the long haul is never forgotten, he noted……………………………………….Full Article: Source

Temasek-led group offers $2.1 bln for remaining Olam shares

Posted on 17 March 2014 by VRS  |  Email |Print

A Temasek-led shareholders group has offered to pay $2.1 billion in cash for shares in Olam International Ltd (OLAM.SI) they don’t already own, putting the heft of the Singapore state investor behind the commodity trading firm’s weak balance sheet.
The proposal comes after a tumultuous stretch for Olam, one of the world’s leading traders in rice, coffee and cocoa, that saw it come under attack from short-seller Muddy Waters in late 2012 for its accounting practices………………………………………..Full Article: Source

Qatar Investment Authority mulls US opportunities

Posted on 14 March 2014 by VRS  |  Email |Print

The Qatar Investment Authority (QIA) has a ‘high priority’ to make further investments in the United States, US Secretary of Commerce Penny Pritzker said. She was addressing a special edition of the Distinguished Speaker Series organised by the American Chamber of Commerce in Qatar (AmCham Qatar) in partnership with the National US-Arab Chamber of Commerce (NUSACC). The high ranking US official said that her country offered a great opportunity for investors from all over the world, including Qatar.
Pritzker talked about her meeting with QIA officials and said she encouraged Qatar’s business leaders to take a closer look at the US for foreign direct investment………………………………………..Full Article: Source

Temasek unit offers to buy Olam in $4.2 bln cash deal

Posted on 14 March 2014 by VRS  |  Email |Print

A Temasek Holdings Pte unit offered to buy Olam International Ltd. in a bid that values the commodity trader at S$5.3 billion ($4.2 billion), about 16 months after it helped stave off an attack by short-seller Carson Block.
Breedens Investments Pte is offering S$2.23 cash per share, the Singapore-based company said today in a statement, a 12 percent premium to Olam’s last closing price of S$1.995. It is also making an offer for Olam’s outstanding bonds and warrants………………………………………..Full Article: Source

Temasek unit makes offer to buy Olam at $2.23 per share

Posted on 14 March 2014 by VRS  |  Email |Print

A unit of Singapore investment firm Temasek Holdings is making an offer to buy all the shares owned by minority shareholders in agri-commodities trader Olam International. It will pay $2.23 a share in cash, valuing the company at about $5.3 billion based on the number of outstanding shares.
Breedens Investments, an indirect wholly-owned subsidiary of Temasek, is also offering to buy all the outstanding convertible bonds and warrants issued by Olam, it said on Friday………………………………………..Full Article: Source

Here’s why Singapore’s GIC is expanding investments in Brazil

Posted on 14 March 2014 by VRS  |  Email |Print

Despite headwinds of a presidential election, higher inflation, and the possibility of deep budget cuts and increased taxes, institutional investors like sovereign wealth funds and pensions are betting on Brazil’s long-term economic viability.For Latin America, sovereign funds are not terrified by short-term volatility.
Pensions and sovereign wealth funds center on consumer-oriented companies, counting on middle class expansion. According to World Bank data, in 2005, the poverty headcount ratio in Brazil was 30.8%. In 2009, the ratio lowered to 21.4%. Attractive sectors for public pensions and sovereign funds in Brazil run from, infrastructure, real estate, telecommunications and consumer goods like food………………………………………..Full Article: Source

Carrefour seeks Brazil private stake sale; Diniz eyes deal

Posted on 14 March 2014 by VRS  |  Email |Print

France’s Carrefour SA could raise as much as 5 billion reais ($2.1 billion) from the sale of a stake in its Brazilian unit, with potential bidders including Brazilian tycoon Abilio Diniz and a sovereign wealth fund, a person with direct knowledge of the situation said on Thursday.
Another potential bidder is a sovereign wealth fund that the source would not name. While the structure of the deal is still under discussion, it could include the sale of a stake in Atacadão, Carrefour’s cash-and-carry wholesale unit, a second source said………………………………………..Full Article: Source

CIO of Singapore’s GIC sees added scope for opportunistic investments, alternatives

Posted on 13 March 2014 by VRS  |  Email |Print

The chief investment officer of Singapore sovereign wealth fund GIC Private Limited suggested Wednesday that the current low-yield outlook for traditional bond and equity investments has left the GIC taking a more tactical, opportunistic approach in managing its portfolio, and open to extending more mandates to alternative asset managers.
Lim Chow Kiat, GIC’s group CIO, said in the current environment expectations for the rewards of “simply holding diversified assets and waiting” have to be lowered………………………………………..Full Article: Source

GIC’s investment in Linx shows confidence in Brazil’s economy

Posted on 13 March 2014 by VRS  |  Email |Print

GIC Pte, Singapore’s sovereign wealth fund, is buying stakes in Brazilian companies in a sign of confidence the world’s second-largest emerging market will overcome slower growth.
GIC bought 5.02 percent of communications technology provider Linx SA (LINX3), according to a March 10 filing by Linx. This month, it increased its stake in Sao Paulo-based food processor BRF SA (BRFS3) and in October agreed to invest in water and sewage treatment company Aegea Saneamento e Participacoes SA………………………………………..Full Article: Source

GIC will maintain price discipline in its investing decisions

Posted on 13 March 2014 by VRS  |  Email |Print

GIC will maintain price discipline in its investing decisions, said the sovereign wealth fund’s chief investment officer Mr Lim Chow Kiat, at the annual conference of the Investment Management Association of Singapore on Wednesday afternoon.
This is one of the five principles that guide GIC in making its asset allocation decisions. Although the global market may be volatile, GIC still remains focused on fundamentals when investing the nation’s wealth………………………………………..Full Article: Source

Australia funds eye liquid investments

Posted on 13 March 2014 by VRS  |  Email |Print

Australian fund managers are eying an increasingly liquid market: water. A state-run system giving farmers fixed allocations for river water flowing into the country’s agricultural heartland is tempting speculators to buy up those rights in anticipation of higher prices.
A specialist fund manager, Blue Sky Alternative Investments Ltd., recently raised 20 million Australian dollars (US$18 million) to pour into the fledgling market, following earlier moves by San Diego, Calif.-based Summit Global and VicSuper, one of Australia’s biggest pension funds………………………………………..Full Article: Source

Oil Fund: Southern Gas Corridor to demand from Azerbaijan $2.5 bln of annual investment until 2019

Posted on 13 March 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) begins forming the capital of the state company on the management of the Southern Gas Corridor project. SOFAZ executive director Shahmar Movsumov says that now the Fund’s Supervisory Board is considering a change in the SOFAZ budget for 2014 for payment of the capital of this company.
“$51 million to be financed for the gas project management company will be directed for the formation of its capital. These finances have not been envisaged in the Oil Fund’s budget, and will be directed as long-term investments,” Movsumov said………………………………………..Full Article: Source

It was a mistake to invest in F1, says world’s largest sovereign wealth fund

Posted on 12 March 2014 by VRS  |  Email |Print

Norway’s $840bn oil fund voices concerns over F1 owner Bernie Eccleston’s upcoming corruption trial. Norway’s $840bn oil fund, the world’s largest sovereign wealth fund, has admitted that investing in Bernie Ecclestone’s Formula One Group was a mistake.
In May, the fund paid $1.6bn for a 21.3pc share of the group in a consortium with two other funds, BlackRock and Waddell & Reed Financial. “Yes, we have made a mistake,” fund director Yngve Slyngstad told the business daily Dagens Naeringsliv, suggesting the fund may try to offload its stake………………………………………..Full Article: Source

Norwegians could look to offload F1 stake 11 March 2014

Posted on 12 March 2014 by VRS  |  Email |Print

The Norwegian sovereign wealth fund could decide to sell on its F1 stake if the sport cannot free itself from accusations of corruption. Norway’s sovereign wealth fund has confirmed that it will look to sell its stake in F1 should both its own problems and those affecting the sport in general not be addressed.
Questions were raised in the national parliament last week asking whether the fund had violated its remit by joining US-based investors BlackRock and Waddell & Reed in acquiring a $1.6bn stake in F1 last May. Although the purchase appeared to be in good faith at the time, F1’s decision to cancel its proposed stock market flotation put the fund’s holding in jeopardy as it is only permitted to acquire a stake in an unlisted company if it plans an initial public offering………………………………………..Full Article: Source

Norway may divest from fossil fuels – is it hypocrisy or pragmatism?

Posted on 11 March 2014 by VRS  |  Email |Print

Norway’s $840 billion sovereign wealth fund is the biggest investment fund in the world. On average, it owns 1.3 per cent of every publicly listed company. Investors around the world watch its decisions. So when the Norwegian parliament voted late last month to look into selling off its holdings of fossil fuel companies, it was a big deal for both the financial and environmental community.
It’s estimated fossil fuel shares make up about 8.4 per cent of the fund’s portfolio – about $44 billion. Divestment would be a huge victory for the climate movement, which has encouraged institutional investors to get out of carbon-intensive companies on both moral and financial grounds………………………………………..Full Article: Source

Temasek’s pivot to private investment heralds billion-dollar listed asset sales

Posted on 11 March 2014 by VRS  |  Email |Print

Singapore’s Temasek Holdings is shedding the skin of a sprawling sovereign investment house, cutting stakes in big publicly listed companies as it puts more money into growing private companies and private equity firms in search of better returns.
Under the guiding hand of chief executive Ho Ching, the wife of Singapore’s prime minister, the $170 billion state investor is morphing into a leaner form. The firm’s returns have often lagged its own internal metric in recent years due to its focus on big stocks………………………………………..Full Article: Source

Singapore’s SWFs won’t opt for riskier bets

Posted on 10 March 2014 by VRS  |  Email |Print

A government official has said that the government of Singapore will not ask tis investment arm to take on riskier bets for higher returns. The official said that Singapore sovereign-wealth fund GIC Pte. Ltd., and the state investment company Temasek Holdings Pte. Ltd will not be asked to buy riskier investments to increase revenues even as government expects spending increases to be higher than revenue growth in the coming decade.
Josephine Teo, senior minister of state for finance said, “Our government spending needs will increase over time, but that should not drive the investment strategies of GIC and Temasek. If the government is in need of more revenues besides that obtainable the solution is not for our investment entities to take more risk in the hope of higher returns.”……………………………………….Full Article: Source

Biggest wealth fund called on to explain Formula One investment

Posted on 07 March 2014 by VRS  |  Email |Print

Norway’s $850 billion sovereign wealth fund, the world’s biggest, is being called on by lawmakers to prove it didn’t shirk its own rules with a 2012 investment in Formula One.
Politicians are responding to local media reports questioning whether the state-run fund followed its mandate when it invested in the auto racing group ahead of a planned initial public offering. The fund can only buy private equity if a company is planning to sell shares to the public. Formula One’s IPO was subsequently canceled………………………………………..Full Article: Source

OECD warns of overspending at Norwegian oil fund

Posted on 07 March 2014 by VRS  |  Email |Print

The Organisation for Economic Co-operation and Development (OECD) has warned Norway that spending down income from its national pension fund is hampering much-needed fiscal reforms.
The comments came in the OECD’s latest economic survey of Norway. Norway’s fiscal policy works within guidelines for the use of revenue from oil and gas production. All government revenues from oil and gas production are paid into the Government Pension Fund Global (GPFG)………………………………………..Full Article: Source

IDB, KIA units to invest in Morocco’s private sector

Posted on 07 March 2014 by VRS  |  Email |Print

Units of the Islamic Development Bank , a multilateral lender, and sovereign wealth fund Kuwait Investment Authority (KIA) have signed an agreement to invest jointly in Morocco’s private sector.
The partnership between the Jeddah-based Islamic Corporation for the Development of the Private Sector (ICD) and Casablanca-based Al Ajial Funds was signed on the sidelines of an investment conference in Morocco on Wednesday. The ICD supports its 51 member countries by financing private sector projects which follow Islamic principles; Al Ajial was created in 2006 by KIA to aid Morocco’s economic development………………………………………..Full Article: Source

Alaska Permanent Fund invests $418mln in UK RE via LaSalle

Posted on 07 March 2014 by VRS  |  Email |Print

The Alaska Permanent Fund Corp. on Thursday expanded its relationship with LaSalle Investment Management by agreeing to give it £250 million ($418 million) to invest in U.K. real estate, the companies said Thursday.
The permanent fund, which recently hit $50 billion under management for the first time, sees opportunities across all U.K. property types between £50 million and £150 million, according to LaSalle. This will be APFC’s first series of European real estate investments………………………………………..Full Article: Source

NSIA targets power, healthcare, real estate, motorways, agric for infrastructure financing

Posted on 06 March 2014 by VRS  |  Email |Print

Amidst criticisms over non-accretion to fiscal savings such as the foreign reserves and the Sovereign Wealth Fund, even under current account surpluses, the Nigeria Sovereign Investment Authority (NSIA) has established five subsidiaries in a renewed approach to foster multi-sectoral investments in infrastructure, BusinessDay has gathered.
The NSIA, managers of the nation’s $1.5 billion Sovereign Wealth Fund, (SWF), under the new dispensation to ensure accountability for the common wealth of Nigerians, introduced the NSIA Motorways Company Limited, Power investment, Healthcare and Real Estate investments, some of which have commenced operations………………………………………..Full Article: Source

Future Fund makes $1bln US push

Posted on 06 March 2014 by VRS  |  Email |Print

Australia’s $97 billion Future Fund has upped its exposure to the recovering US real estate market, teaming with Dallas-based group Hillwood, which is controlled by Ross Perot Jr, for a $US1bn ($1.11bn) industrial property partnership.
The pair, which have worked together before, are advancing plans to make direct and indirect investments in industrial real estate, mainly large warehouses, across North America………………………………………..Full Article: Source

NSIA targets power, healthcare, real estate, motorways, agric for infrastructure financing

Posted on 05 March 2014 by VRS  |  Email |Print

Amidst criticisms over non-accretion to fiscal savings such as the foreign reserves and the Sovereign Wealth Fund, even under current account surpluses, the Nigeria Sovereign Investment Authority (NSIA) has established five subsidiaries in a renewed approach to foster multi-sectoral investments in infrastructure, BusinessDay has gathered.
The NSIA, managers of the nation’s $1.5 billion Sovereign Wealth Fund, (SWF), under the new dispensation to ensure accountability for the common wealth of Nigerians, introduced the NSIA Motorways Company Limited, Power investment, Healthcare and Real Estate investments, some of which have commenced operations………………………………………..Full Article: Source

Norway to study pulling wealth fund investment from oil, gas, coal

Posted on 04 March 2014 by VRS  |  Email |Print

Norway’s ruling parties have agreed to study whether its US$840-billion wealth fund, itself built on oil revenues, should pull out of investing in oil, gas and coal for environmental reasons, the Progress Party said on Friday.
The minority government and two small opposition parties agreed to set up an independent panel to study the issue and present its findings next year, potentially heralding one of the biggest changes for the fund since it was set up in 1990………………………………………..Full Article: Source

NZ Super sells forestry stake to iwi group

Posted on 04 March 2014 by VRS  |  Email |Print

The New Zealand Superannuation Fund (NZ Super) has sold a 2.5% stake in Kaingaroa Timberlands, New Zealand’s largest forestry business, to a collective of six iwi organisations.
NZ Super remains the largest stakeholder in the business, with a 38.75% share. Other major stakeholders include Canadian pension fund, Public Sector Pension Investment Board at 30%, and an affiliate of the President and Fellows of Harvard College at 28.75%………………………………………..Full Article: Source

Norway oil fund set to increase company stakes

Posted on 03 March 2014 by VRS  |  Email |Print

Norway’s sovereign-wealth fund, the world’s biggest, is set to invest in larger ownership positions in more companies even as its chief executive expects a cooling of equity markets following a strong performance in 2013.
The $840 billion oil fund posted returns of 15.9% in 2013, or the second-best in its 18-year history, with the strength of its massive stock portfolio countering flat bond returns. The U.S. Federal Reserve’s liquidity actions were cited as a key reason for strong equities……………………………………….Full Article: Source

Norway’s $840 bln oil fund to review mining investments

Posted on 03 March 2014 by VRS  |  Email |Print

Norway’s $840 billion sovereign fund, the world’s biggest equity investor, has cut its investments in gold and coal miners due to environmental concerns and will review the entire mining sector this year, it said on Friday.
The fund, which grew by $200 billion in 2013 alone and owns about 1 percent of all global stocks, exited its investments in 27 gold and coal miners in 2013 and cut its stakes in others. The wider sector review potentially heralds one of the biggest changes since it was set up as a sovereign wealth fund in 1998………………………………………..Full Article: Source

Kazakhstan to launch new domestic airline

Posted on 03 March 2014 by VRS  |  Email |Print

Kazakhstan is to launch a new domestic airline, the oil-rich country’s sovereign wealth fund has announced. The airline, to be called Ar Kazakhstan, will likely be based on a fleet of regional Bombardier planes and aims to rival the existing carrier Air Astana.
President Nursultan Nazarbayev said during a meeting with Bombardier CEO Pierre Beaudoin on Wednesday that Kazakhstan was pursuing a contract with the Canadian company to supply planes for the service. Umirzak Shukeyev, the head of the Samruk-Kazyna fund, said the new regional airline was being created to improve flight safety. It would both cooperate and compete with Air Astana………………………………………..Full Article: Source

Nigeria: SWF mulls N16bln investment in power assets

Posted on 03 March 2014 by VRS  |  Email |Print

The Nigeria Sovereign Investment Authority (NSIA), has said it is considering investing up to $100 million (N16billion) in generation or distribution companies just as it has committed $200 million (N32 billion)to gas-to-power infrastructure to boost supply of electricity across the country.
The agency noted that the $100 million being proposed for the power assets is part of the $400 million Nigeria Infrastructure Fund, which represents 40 per cent of the $1 billion under its management. The NSIA Managing Director, Mr. Uche Orj explained that the agency would buy existing power assets with a view to enhancing the infrastructure………………………………………..Full Article: Source

Sovereign wealth funds buying more Japanese stocks

Posted on 03 March 2014 by VRS  |  Email |Print

The Nikkei is carrying an article today headlines “Sovereign wealth funds buying more Japanese stocks” Sovereign wealth funds are stepping up their purchases of shares of Japanese companies Seen as having raised their growth potential due to continued restructuring and the economic policies of Prime Minister Shinzo Abe Government.
Pension Fund of Norway, held about 3.7 trillion yen ($35.9 billion) in Japanese shares at the end of last year, double the level of a year earlier, according to a recent report from Norges Bank, the country’s central bank, which manages the fund………………………………………..Full Article: Source

Consider future fund to price qantas: Mark Carnegie

Posted on 03 March 2014 by VRS  |  Email |Print

Former Qantas shareholder activist Mark Carnegie has called on the ­government to consider the Future Fund to price any debt guarantee it considers for the ailing airline and warned against propping up companies at below ­market rates.
In an interview with the Nine Network’s Financial Review Sunday , Mr Carnegie, who was part of a ­consortium with former Qantas executives Geoff Dixon and Peter Gregg that tried to shake up the airline’s strategy a year ago, said the debate needed to be shifted beyond whether the government props up the national carrier………………………………………..Full Article: Source

Super Fund sells slice of forest to iwi

Posted on 03 March 2014 by VRS  |  Email |Print

The New Zealand Superannuation Fund has sold a 2.5 per cent stake in New Zealand’s largest forestry business Kaingaroa Timberlands to six central North Island iwi. The deal, which was done at an undisclosed price, will see the super fund reduce its stake in the business from 41.25 per cent to 38.75 per cent.
The six iwi which include Ngati Rangitihi, Ngati Whakaue Assets and Te Arawa River Iwi Limited Partnership, Ngati Whare, Raukawa, Te Arawa Group Holdings Limited and Tuwharetoa, have formed Kakano Investment Limited Partnership to buy the stake………………………………………..Full Article: Source

Sovereign wealth fund to Invest $10 mln in NMRC

Posted on 28 February 2014 by VRS  |  Email |Print

Sovereign Wealth Fund will invest $10 million in the Nigerian Mortgage Refinancing Company (NMRC) to improve its market position. As per Mr. Uche Orji, Chief Executive of Nigeria Sovereign Investment Authority, the current investment in NMRC has been planned as a core equity investor by SWF.
The Nigerian government provided additional funding of $550 million to SWF two weeks back. The current portfolio of Sovereign Wealth Fund is worth $1.55 billion………………………………………..Full Article: Source

Global wealth funds buy ‘trophy’ hotel properties away from big brands

Posted on 27 February 2014 by VRS  |  Email |Print

Global sovereign wealth funds and high-net-worth individual investors are steadily acquiring big-ticket hotel “trophy” assets around the world, and experts say the trend is likely to continue. While Middle Eastern investors have had the strongest presence recently among such buyers, cash-laden investors are now emerging from China to Norway to Latin America.
Major players such as Starwood Hotels & Resorts Worldwide and Marriott International have sold multiple luxury properties to overseas buyers in recent months, particularly Middle Eastern individual investors and sovereign wealth………………………………………..Full Article: Source

Sovereign wealth funds boost real assets in February

Posted on 27 February 2014 by VRS  |  Email |Print

In recent times, sovereign wealth funds and public pensions have boosted exposure to real assets. According to research by the Sovereign Wealth Fund Institute, more large public investors will augment allocation to real assets while lowering allocations to domestic equity and fixed income.
For example, near the end of 2013, Australia’s Future Fund has planned to expand real asset allocation from just over 10% to barely under 20%. Embracing infrastructure, the sovereign fund’s chief investment officer, David Neal, was involved on them acquiring a stake in Perth airport……………………………………….Full Article: Source

Sovereign wealth fund from Malaysia and Qatar eyes hospitality asset in India

Posted on 26 February 2014 by VRS  |  Email |Print

In one of the biggest deals in the Indian hospitality industry, sovereign wealth funds of Abu Dhabi, Qatar and Malaysia are vying with each other to acquire two of India’s marquee properties for about US$322 million, said a news report. All the three funds are big time investors in leisure and tourism assets. Abu Dhabi Investment Authority, the world’s third biggest sovereign fund with US$627 billion of assets, recently bought Australia’s largest owner of hotels, Tourism Asset Holdings.
Similarly, Qatar Investment Authority, which owns luxury department store Harrods, plans to expand the brand into hotels. And Khazanah Nasional owns themed resorts in Malaysia……………………………………….Full Article: Source

1MDB’s ‘fantastic’ investment strategy?

Posted on 25 February 2014 by VRS  |  Email |Print

1MDB said it had “invested the proceeds with regulated and licensed international fund managers. These fund managers adopt an absolute return strategy of which the primary investment objective is to achieve long-term capital appreciation and/or steady income through investments in listed and/or unlisted companies”.
“A total of US$200 million (RM658.9 million) has been remitted from the fund to the 1MDB group in Malaysia to service repayment. Out of this, US$134 million (RM430 million) is from the 5.76 percent cash dividend generated within the first year of the investment period.”……………………………………….Full Article: Source

GMR Infra to give preferred shares to Temasek, IDFC consortium

Posted on 25 February 2014 by VRS  |  Email |Print

GMR Group has offered a clutch of private equity investors a small stake in its flagship company to compensate for a delay in facilitating their exit in one of GMR’s units. The Bangalore-based infrastructure company said on Friday that Singapore’s state-owned investment firm Temasek Holdings Pte Ltd, and a consortium of investors led by Indian private equity (PE) firm IDFC Alternatives have agreed to restructure their investments in GMR Energy Ltd (GEL).
It said GMR Infrastructure Ltd, the flagship company of GMR Group, will give convertible preferred shares (CCPs) worth Rs.788.8 crore to Temasek and CCPs worth Rs.347.8 crore to the IDFC consortium………………………………………..Full Article: Source

Temasek, IDFC Alternatives among others to swap investment worth $183mln in GMR Energy

Posted on 24 February 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund Temasek, IDFC Alternatives among other private investors in GMR Energy are swapping bulk of their investment in the firm with a stake in the listed parent GMR Infrastructure, as per a stock market disclosure.
This comes at a time when GMR Energy is looking to float an IPO. However, the primary market in the country is not conducive for fresh issues, partly due to outflows from emerging markets. These investors had put in Rs 1,395 crore in GMR Energy through Compulsorily Convertible Preference Shares (CCPS) in 2010………………………………………..Full Article: Source

Blackstone, GIC invest in Kronos

Posted on 21 February 2014 by VRS  |  Email |Print

A team of Blackstone Group and GIC Private Ltd. reached a deal to take a minority stake in Kronos Inc. that values the human-resources software company at around $4.5 billion, including debt, said people close to the negotiations.
Blackstone, the world’s largest private-equity firm, and GIC, a sovereign-wealth fund owned by the Singapore government, are together investing about $750 million in Kronos, the people said. That will give the pair a roughly 44% stake in Kronos, one of the people said. The deal values Kronos equity at about $1.7 billion………………………………………..Full Article: Source

Goldman-backed Rothesay Life to buy MetLife U.K. unit

Posted on 20 February 2014 by VRS  |  Email |Print

Rothesay Life Ltd., the insurer run by former Goldman Sachs Group Inc. Managing Director Addy Loudiadis, agreed to buy a U.K. annuity business with about 3 billion pounds ($5 billion) of assets under management from MetLife Inc. (MET)
Rothesay, whose investors include Goldman Sachs, Blackstone Group LP and Singapore’s sovereign wealth fund, has been expanding in the retirement business as U.K. employers turn to insurers to handle obligations to former employees………………………………………..Full Article: Source

CIC portfolio strategy

Posted on 20 February 2014 by VRS  |  Email |Print

China Investment Corp., in a major shift in strategy, is selling energy and commodities holdings while seeking to capitalise on recovering US and European economies.
Since late last year, the $600bn Chinese sovereign wealth fund has unloaded more than $1.5bn of shares in companies including US utility AES and Hong Kong-listed green energy firm GCL-Poly Energy, according to regulatory filings by the companies. CIC has also sold positions in two other Hong Kong-traded wind-power companies, according to filings………………………………………..Full Article: Source

Temasek invests in Chinese online education start-up

Posted on 19 February 2014 by VRS  |  Email |Print

Singapore state investor Temasek Holdings (Private) Ltd , together with Chinese e-commerce giant Alibaba Group and venture-capital firm Qiming Venture Partners, has invested nearly US$100 million in TutorGroup, an online education start-up based and headquartered in Shanghai.
TutorGroup, in an announcement on Monday, said it will use this latest Series B funding to expand its presence in Asia and the Americas, where it now runs real-time, interactive and personalised language-learning programmes………………………………………..Full Article: Source

Chinese group spends $2.5 bln to buy into Singapore’s GLP

Posted on 19 February 2014 by VRS  |  Email |Print

A group of Chinese investors has made a bet on the nation’s growing demand for warehouses with a $2.51 billion investment in Singapore’s Global Logistic Properties. GLP is 37% owned by Singapore sovereign-wealth fund GIC Pte. Ltd.
The group, which includes Bank of China Group Investment and private-equity firm Hopu Funds, will invest $2.35 billion in GLP China, giving it a 34% stake in the mainland unit of GLP, and $163 million in the Singapore-listed unit. Another member of the group is a large Chinese insurer, whose identity wasn’t disclosed………………………………………..Full Article: Source

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