Severn Trent Plc (SVT), the U.K.’s second-largest publicly traded water company, rejected a takeover approach from Kuwait’s sovereign wealth fund and a Canadian infrastructure investor.
The proposal “completely fails to recognize the existing and potential value of Severn Trent,” the company said in a statement. Severn Trent, which supplies water to 7.7 million people, has a market value of 5 billion pounds ($7.6 billion)……………………………………Full Article: Source

Severn Trent (SVT) has rejected an initial offer for its shares following a meeting with the consortium including a Kuwaiti sovereign wealth fund and Canadian pension fund as it “completely fails” to recognise the value of the water utility.
The deal only serves to highlight once more the attractiveness to overseas investors of UK utility companies, with their inflation-linked revenue streams and record low costs of debt on large national infrastructure asset bases……………………………………Full Article: Source

Severn Trent has rejected an approach from a consortium of Canadian and Kuwaiti investors, saying the £5.3bn proposal is too low. The FTSE 100 company, which supplies water to more than 4.2m households, met with Canada’s Borealis, the Kuwait Investment Office and the Universities Superannuation Scheme yesterday, causing Severn Trent’s shares to jump 14pc.
“At that meeting, a conditional proposal was tabled by the Consortium at only a modest premium to the share price before the announcement of May 14. The board of Severn Trent has reviewed the proposal with its advisers and concluded that it completely fails to recognise the existing and potential value of Severn Trent,” the company said………………………………………..Full Article: Source

Kuwait’s sovereign wealth fund and a Canadian infrastructure investor are discussing a bid for Severn Trent Plc (SVT), the U.K.’s second-largest publicly traded water company that’s valued at almost 5 billion pounds ($7.6 billion).
The Kuwait Investment Office, Borealis Infrastructure Management Inc. and Britain’s Universities Superannuation Scheme approached the utility regarding a possible takeover, Coventry, U.K.-based Severn Trent said today in a statement………………………………………..Full Article: Source

The Norwegian Government Pension Fund Global (GPFG) is the largest sovereign wealth fund in the world and individuals could learn a great deal from it.
After discovering its first oilfield in 1969, Norway has created this Fund that received its first sum of money of about $300m in 1996. Now (May 13, 2013), it has a value of more than $750b (NOK 4,313b). The strategy and the philosophy underlying the asset allocation could be used by any individual investor with a portfolio of merely $ 50,000………………………………………..Full Article: Source

A consortium led by China’s Citic Capital and Singapore’s sovereign wealth fund Temasek Holdings today agreed to buy US-listed Chinese telecom software firm Asiainfo-Linkage Inc for about $900 million.
The consortium that includes Asiainfo-Linkage founder Edward Tian has offered to pay $12 per share, a premium of 2.8 per cent to the company’s closing price of $11.68 on 10 May………………………………………..Full Article: Source

Canary Wharf Group Plc and Qatar’s sovereign-wealth fund won planners’ support to build 877 homes and about 76,000 square meters (820,000 square feet) of offices at the site of Royal Dutch Shell Plc’s London headquarters on the banks of the River Thames.
Planning officials recommended that Lambeth Borough Council approve the project by Braeburn Estates Ltd., a joint venture between the Qatari Diar Real Estate Investment Co. unit of the sovereign-wealth fund and Canary Wharf, the developer that controls the financial district of the same name, according to a filing published on the council’s website………………………………………..Full Article: Source

While they continue to reduce dependence on energy resources, GCC countries are increasingly spending locally and redirecting a greater portion of foreign investments back into the region. According to a report by KPMG specialists released on Thursday, the shift is due to the debt problems afflicting the European Union and the Arab Spring, among other factors.
Invesco’s Middle East Asset Management study for 2012 suggests that the value of assets allocated to sovereign wealth funds (SWFs) invested locally have increased by 10 per cent from 2011. Although GCC economies’ revenues increased by nearly 30 per cent and as the West are looking to tap into state-owned funds in the region, assets allocated to SWFs that invest abroad have declined by 1 per cent……………………………………Full Article: Source

Malaysian sovereign wealth investor Khazanah Nasional Berhad is among six cornerstone investors planning to back China Galaxy Securities’ $1.37bn Hong Kong IPO.
Khazanah plans to commit up to $100m to the IPO after it as priced at between HK$4.99 and HK$6.77 per share. Another $260m is expected to be committed by former Khazanah portfolio company AIA, China Life Insurance, China General Technology, China Cinda Asset Management and Sino Life……………………………………Full Article: Source

Neiman Marcus Group Inc. is planning overtures to a handful of sovereign-wealth funds about a possible buyout of the luxury retailer, said people familiar with the deliberations.
Dallas-based Neiman plans to contact funds including the Government of Singapore Investment Corp., the Kuwait Investment Authority and the Qatar Investment Authority to gauge interest in buying the century-old department-store chain, the people said. The plans are at an early stage, the people said, and a sale may not materialize……………………………………Full Article: Source

With a steady availability of capital, Qatar’s sovereign wealth fund has been making opportunistic investments around the world, especially in Europe. Qatar Investment Authority (QIA), actively involved in making opportunistic investments, has future aims of acquiring more trophy assets and diversifying its portfolio, a report finds.
According to a report issued this week by KPMG detailing the sovereign wealth fund management trends in countries like UAE, Qatar and Kuwait, QIA’s investment strategy was described as “multi-dimensional” with the sovereign wealth fund boasting significant acquisition of assets in industries like hospitality, real estate, financial services, commodities and retail………………………………….Full Article: Source

Katara Hospitality is in talks to buy “iconic” hotels in London and Rome as the unit of Qatar’s sovereign-wealth fund seeks to more than double its properties by 2030, said Chief Operating Officer Christopher R.J. Knable.
Katara, which bought Le Royal Monceau in Paris in 2012, will open the 16th-century Peninsula Paris this year after renovations are complete, Knable said in an interview in Dubai. He wouldn’t be more specific about the hotels the company may buy. Katara Hospitality, which is owned by Qatar Holding LLC, has also signed agreements with the governments of Gambia and Maldives to develop properties………………………………….Full Article: Source

China Investment Corporation (CIC), the country’s biggest sovereign wealth fund, has returned to the debt markets to seek to leverage last year’s acquisition of Winchester House in the City seeking around £160m in senior debt. CIC acquired the 310,000 sq ft Winchester House from KanAm, the German open-ended property fund manager, for £245m last November with agreed financing term sheets from Wells Fargo and Deutsche Pfandbriefbank (PBB).
At the 11th hour, CIC dropped the Wells Fargo-led circa £150m five-year ticket, opting instead to hold the asset on an all-cash basis, given the sovereign wealth fund’s low cost of capital………………………………….Full Article: Source

The Future Fund has released its portfolio update for March and overall it is an impressive result, with the fund gaining 3.4% for the quarter and increasing 10.6% for the nine months to 31 March 2013. Since being created by the Howard government in May 2006, the Future Fund has returned a respectable 5.7% per annum.
Over the period since its establishment the Future Fund also achieved a more balanced allocation of assets compared with what was initially a significant skew to domestic equities. This was partially due to the fund’s seeding with Telstra shares………………………………………..Full Article: Source

The Government of Singapore Investment Corp (GIC) has taken a stake in the third-largest private equity deal of the year. The investment firm is among a group of investors that will pay US$6.9 billion (S$8.5 billion) in cash to buy American company BMC Software and take it private, according to a statement released by BMC.
The price per share works out to US$46.25, less than 2 per cent over BMC’s closing price of US$45.42 on the Nasdaq exchange last Friday………………………………………..Full Article: Source

Sunshine Oilsands, a developer of oil sands projects in Canada, plans to raise C$300 million (HK$2.3 billion) this year by issuing debt to fund expansion. The Hong Kong and Toronto-listed firm is 30.9 per cent owned by China Petroleum & Chemical (Sinopec), sovereign wealth fund manager China Investment Corp, and the Hong Kong asset management arms of Bank of China and China Life Insurance.
It is developing the West Ells project in northern Alberta, which is expected to produce 5,000 barrels of oil daily by October. An expansion scheduled to be commissioned early next year will double output………………………………………..Full Article: Source

Azerbaijan’s state oil fund SOFAZ has agreed to invest around $500 million in a new share offering by VTB, Russia’s second-largest bank, the fund said in e-mailed comments to Reuters.
VTB says it has already received firm orders for all of the 2.5 trillion shares it is selling in Moscow at 4.1 kopecks apiece, raising 102.5 billion roubles ($3.3 billion) to bolster its capital. Jamala Aliyeva, head of public relations at SOFAZ, said the fund had been investing in Russian money market instruments, fixed-income securities and commercial real estate since 2012. The VTB investment marked a further step to strengthen its presence in Russia………………………………………..Full Article: Source

Billions of pounds of investments in major UK infrastructure projects are at risk because of a rift in relations with the Chinese government.
The Daily Telegraph understands that China’s sovereign wealth fund will not be able to invest in long-term British projects until a solution to the diplomatic stand-off, caused by David Cameron’s meeting with the Dalai Lama last year, has been reached………………………………………..Full Article: Source

Sovereign wealth funds must be encouraged to invest in emerging markets, to make up for the drought of long-term investment. The ADB and other multilateral development banks need to “catalyze” money from sovereign wealth funds (SWFs) in order to tap into a rich seam of wealth that could help close the threatened funding gap for infrastructure and other long-term projects, a private equity specialist said.
Assets of the world’s half dozen or so major SWFs have now grown to a massive $4.6 trillion and this will soon exceed $5 trillion, according to Arvind Mathur, former head of capital markets in the ADB’s private sector department and now head of his own Indian private equity firm………………………………………..Full Article: Source

House of Fraser has held talks with Qatari investors about a potential takeover of the UK department store chain, in further indication that the retailer is amenable to a sale. Qatari investors have a record of buying prestigious department stores in Britain, such as the 2010 acquisition of Harrods by Qatar Holding, the direct investment arm of the Qatar Investment Authority.
Qatar Holding, which owns about a quarter of the J Sainsbury supermarket chain, is not believed to be involved in any talks over House of Fraser, those familiar with the situation say………………………………………..Full Article: Source

Singapore’s principal sovereign wealth fund is close to sealing a $500m (£320m) deal to buy a stake in Markit Group, one of Britain’s fastest-growing financial services companies. I understand that Temasek Holdings, which is among the most powerful state-backed funds in the world, is now in advanced negotiations about acquiring the shareholding ahead of a US flotation of Markit.
Sky News revealed the talks between Temasek and Markit about a deal in February. It is unclear whether the Singaporean fund would acquire shares held by management or Markit’s institutional investors, but it is likely that a transaction would value the financial data provider at more than £3bn. The exact percentage that Temasek will own is yet to be determined………………………………………..Full Article: Source

Singapore’s sovereign wealth fund Temasek is set to take a stake worth around $500m (£320m) in Markit, the UK financial data provider. The state-backed fund is now in advanced negotiations about acquiring the shareholding ahead of a US flotation of Markit, according to a Sky News report.
The percentage of Markit’s equity Temasek will acquire has not been disclosed. The deal is likely to value Markit at more than £3bn………………………………………..Full Article: Source

Norway’s sovereign wealth fund, one of the world’s largest investors, urged China to open its domestic markets to foreign investors, saying it was keen to pour billions of dollars into the world’s second-biggest economy.
The head of the fund, which invests Norway’s revenues from oil and gas production for future generations, said on Tuesday it had only around $1 billion invested in China out of total holdings of $735 billion………………………………………..Full Article: Source

The Qatar Investment Authority, a sovereign wealth fund, has big stakes in Agricultural Bank of China Ltd., Barclays Plc, Credit Suisse Group AG and Tiffany & Co. It owns London department store Harrods outright.
As Qatar’s government has spread its financial wings, the country’s biggest financial institution, Qatar National Bank, has been at its side. Under Ali Shareef Al Emadi, its chief executive officer since 2005, QNB has become the largest lender in the Middle East and one of the most profitable. Even as the bank has expanded, Al Emadi has maintained QNB’S capital base and aversion to risk………………………………………..Full Article: Source

France’s FSI sovereign-wealth fund said it had bought a stake in Technicolor to support the digital video specialist’s plan to cut debt and boost cash flow by 2015.The FSI fund gave no financial details, but said in a statement on Monday that it and state bank Caisse des Depots together now held 7.5 percent of Technicolor’s share capital.Caisse des Depots owned 6.3 percent of Technicolor as of March 20, implying the FSI has purchased a 1.2 percent stake.
Technicolor is in the midst of a strategic plan to cut its 1 billion-euro ($1.31 billion) debt pile and boost earnings by investing in new products including consumer media-sharing applications and digital ad services………………………………………..Full Article: Source

Qatar Holding, the Gulf country’s rich sovereign wealth fund, has made a “binding” commitment to invest in VTB Bank’s $3bn public share offering, according to the Russian lender.
VTB, Russia’s second largest lender, is issuing 2.5 trillion new shares to help boost its equity capital and strengthen its shareholder base with new strategic investors. It is expected to raise RUB102.5bn ($3.28bn)………………………………………..Full Article: Source

VTB Bank, Russia’s second largest lender by assets, has secured firm commitments from three sovereign wealth fund investors for its Secondary Public Offering (SPO) worth 102.5 billion rubles ($3.3 billion), the lender said on Monday.
“VTB Bank has received firm and binding commitments from a group of investors comprising existing and new shareholders, including three prominent sovereign wealth funds: Norges Bank Investment Management (the Kingdom of Norway); Qatar Holding LLC (the State of Qatar); and the State Oil Fund of Azerbaijan, SOFAZ (the Republic of Azerbaijan), to subscribe for the entire amount of the offering,” VTB said in a statement………………………………………..Full Article: Source

Russia’s second-largest lender VTB Bank said Monday its secondary public offering, scheduled for May, attracted demand from the sovereign wealth funds of energy giants Norway, Qatar and Azerbaijan.
VTB said in a statement it received “firm and binding commitments” from existing and new shareholders, including bids from Norges Bank Investment Management, Qatar Holding LLC and the State Oil Fund of Azerbaijan.VTB is planning to issue 2.5 trillion of new ordinary shares worth 102.5 billion rubles ($3.23 billion) to meet capital adequacy targets and provide funding for the continued growth of the business………………………………………..Full Article: Source

State Oil Fund of Azerbaijan, Qatar Sovereign Fund and Norway Sovereign Fund were selected as strategic investors in placement of additional share emission of VTB Bank.According to APA-Economics, the volume of the issue is RR 102.5 bln (quantity – 2.5 trilions, face value – RR 0.041).
Note that the emission has already been registered by Russian Bank. The prices are 9% lower than market quotations………………………………………..Full Article: Source

On April 26, 2013, the Supervisory Board of VTB Bank announced that it had resolved to attract new capital in amount of up to Rub 102.5bn through the issuance of 2.5 trillion new ordinary shares (”New Shares”) by way of an open subscription at a price of Rub 0.041 per Share (the “Offering”), VTB said.
The Bank of Russia has registered the decision on issue of the New Shares and the Russian prospectus on April 26, 2013………………………………………..Full Article: Source

Bahrain sovereign fund Mumtalakat said on Monday that it has no plans to sell stakes in domestic companies and could even increase its investments – but not in Gulf Air.
One of the smaller sovereign wealth funds in the Gulf region with USD$7.1 billion of assets under management at the end of September, the fund holds stakes in 40 firms in the state’s non-oil sector, including Bahrain Telecommunications and Aluminium Bahrain (Alba).Last year, chief executive Mahmood al-Kooheji said Mumtalakat could divest stakes in these firms to raise cash to invest in Bahrain’s economy, such as through public share sales - Alba was listed in 2010, for example………………………………………..Full Article: Source

VTB Group (VTBR), Russia’s second-largest lender, received enough orders from investors including sovereign wealth funds in Norway and Azerbaijan to cover a $3.3 billion share sale, said a person with knowledge of the matter.
VTB got a firm commitment to buy new shares from Norges Bank Investment Management, the world’s largest sovereign fund, as well as from Azerbaijan’s State Oil Fund and other investors, said the person, who declined to be identified as the information is private. Qatar’s wealth fund has also bought shares, Prime newswire service reported late yesterday, citing an unidentified person close to the Russian state bank’s supervisory board………………………………………..Full Article: Source

The sovereign wealth fund of Norway, amongst the world’s biggest investors, has said that it wants to participate more actively in the management of firms it has heavy investments in, such as Volvo and other firms.
The fund has under its management totalling US$728 billion and said it is aiming to become active participants of company activities such as election of board members.According to the fund’s CEO Yngve Slyngstad, “It means having an ownership in the order of 5 percent and that we find ourselves among the top five investors. Our ownership should be significant, in the order of $1 billion,”……………………………………….Full Article: Source

The Kuwait Investment Authority (KIA), the sovereign wealth fund, has long been known both for its integrity and cautious approach to investment. But several recent initiatives point to the growing difficulty of being conservative in a world of virtually zero interest rates and modest yields — and a world in which inflation is low today but may be much higher tomorrow.
The KIA recently joined forces with real estate developer Steve Ross’s Related Companies and with Oxford Properties, to provide equity in the first stage of the $15 billion Hudson Yards project in Manhattan………………………………………..Full Article: Source

The head of China’s $500 billion sovereign wealth fund criticized the U.S. process of reviewing foreign investment, calling it a slap in the face, at a conference in Washington Thursday.
Gao Xiqing, head of China Investment Corp ., said that China is “singled out” for challenge by the U.S. and isn’t regarded as an ordinary member of the international community………………………………………..Full Article: Source

The government’s fiscal reserve has managed to squeeze a return of less than 1.75 percent out of its billion-dollar investments in its first year. University of Macau public economics professor Jenny Huang Bihong said the return was “too low, much lower than inflation”.
“As such its value is essentially declining.” The average rate of inflation for same period, the 12 months ending February 28, was 6.16 percent. Ms Huang told Business Daily that Macau should establish a sovereign wealth fund similar to Singapore’s Temasek Holdings (Private) Ltd. But another scholar disagrees, warning that such a move might not improve return on investment………………………………………..Full Article: Source

Azerbaijan’s $34 billion state oil fund plans to spend about $1 billion on real estate abroad this year, mainly in Asia and Australia, as it further diversifies a broad portfolio of foreign assets.
The state oil fund uses investment proceeds to help finance social spending and infrastructure projects. It transferred 7.04 billion manats ($9 billion) to the Azeri state budget in the first nine months of last year. The fund spent $600 million on real estate in Europe in 2012, buying office blocks in central London and Paris and a shopping complex in Moscow………………………………………..Full Article: Source

Norway’s sovereign wealth fund is looking into selling off shares in oil firms that work in Equatorial Guinea, where oil revenue does nothing to relieve abject poverty, the fund’s ethics council said, a list that includes Exxon Mobil. The Norwegian Pension Fund Global was Exxon Mobil’s tenth-largest shareholder at end-2012 with some 16 billion crowns ($2.7 billion) worth of shares, or a stake of 0.81 percent.
The fund, whose investments totalled $725 billion on Wednesday, invests Norway’s revenues from oil and gas production for future generations. Exxon Mobil was its tenth-largest equity holding at end-2012, according to its annual report………………………………………..Full Article: Source

Samruk-Kazyna National Welfare Fund plans to implement 83 investment projects worth over $51 billion, Tengrinews.kz reports citing the fund’s press-service.“The fund is currently taking part in implementation of 100 investment projects worth over $82 billion via its major branches. The fund is additionally considering implementation of another 83 investment projects worth $51.7 billion,” the message states.
According to the press-service, the fund is currently focusing on investment in the projects with high growth potential. They include alternative energy, chemistry and oil chemistry, transport, infrastructure, engineering, IT technologies and projects with innovative component and transfer of advanced technologies………………………………………..Full Article: Source

The Kuwait Investment Authority, the sovereign wealth fund, has long been known both for its integrity and cautious approach to investment.
But several recent initiatives point to the growing difficulty of being conservative in a world of virtually zero interest rates and modest yields – and a world in which inflation is low today but may be much higher tomorrow…………………………………………..Full Article: Source

Market attention is now shifting to the Government Pension Investment Fund in Japan. This giant asset manager has Y111.9trn ($1.19trn). It is not a sovereign wealth fund, however its size is likely to exceed established sovereign wealth funds globally. Currently, GPIF has around 60% of its assets in Japanese government and state FILP bonds.
In contrast, less than 13% of its assets are in Japanese stock, while foreign assets account for about 23% of funds. GPIF reports into the Ministry of Health, Labor and Welfare………………………………………..Full Article: Source

Alaska Permanent Fund Corp, which oversees the American state’s oil wealth portfolio, has increased its investment in Indian stocks to over Rs. 1,000 crore with increased holdings in bluechips like ICICI Bank, Infosys, HDFC and Reliance Industries Ltd.
The global fund, that oversees $46 billion worth assets invested across 70 nations, had equity investments worth about $190 million (over Rs. 1,000 crore) across shares of at least 75 listed Indian companies at the end of fiscal 2012-13 ended last month, shows its latest portfolio………………………………………..Full Article: Source

Government-owned investment agency Khazanah Nasional Bhd is expected to announce the buyer of its entire 45 per cent stake in TIME Engineering Bhd next month.
A source said Khazanah is in the final lap of evaluating the three shortlisted companies, which are Skali Group, Censof Holdings Bhd and MyEG Services Bhd………………………………………..Full Article: Source

The Federal Ministry of Works is to partner with the Nigerian Sovereign Investment Authority (NS on the Lagos-Ibadan Expressway and an additional 39-kilometer road linking the Second Niger Bridge.
The Minister of Works, Mike Onolememen, an architect, disclosed this when a delegation from the organization led by its Managing Director, Mr. Uche Orji paid him a courtesy call, in his Mabushi Office. The Federal Government owned authority established Sovereign Wealth Fund (SWF) with an initial funding of US$1 billion………………………………………..Full Article: Source

The study by A Capital is the most comprehensive investigation yet into Chinese investment in Europe. The private equity firm itself counts the Chinese government among its investors, in the form of the China Investment Corporation (CIC).
Chinese firms have caused a furor in the past for their partial or complete takeovers of German flagship companies like concrete pump manufacturer Putzmeister, warehouse equipment maker Kion and consumer electronics manufacturer Medion…………………………………….Full Article: Source

Qatar’s aggressive sovereign wealth fund is focusing its investment strategy in Germany on companies selling in emerging markets as well as real estate, an executive board member of the Qatar Investment Authority has said.
The QIA, the most active Middle East sovereign wealth fund in recent years, is estimated to be worth around $200bn and has bought stakes in companies ranging from German sports car maker Porsche to Barclays…………………………………….Full Article: Source

Sovereign wealth funds (SWFs) are not new to the continent. Botswana’s Pula Fund dates back to 1994, Algeria formed its Revenue Regulation Fund in 2000 and in Tripoli the government created the Libyan Investment Authority (LIA) in 2006.
Chad, Mauritania, Gabon, Namibia and São Tomé e Príncipe also have SWFs, though information on their assets and investment targets is harder to come by.So, if you are an African finance minister with a windfall to invest, what do you choose?……………………………………Full Article: Source

Canada-based Sun Life Financial and Khazanah Nasional in Kuala Lumpur have completed the acquisition of CIMB Aviva Assurance and CIMB Aviva Takaful after receiving regulatory approvals in Malaysia and Canada.
CIMB Aviva Assurance is a Malaysian life insurance firm, whereas CIMB Aviva Takaful is a Malaysian takaful company. Both Canadian and Malaysian companies have acquired 49% stake of the both companies from Aviva International and CIMB Group, respectively, with CIMB Group holding a 2% share in the companies………………………………………..Full Article: Source

The Kuwait Investment Authority is investing in the $15bn Hudson Yards office property project in Manhattan in a deal that illustrates how conservative sovereign wealth funds are taking on greater risk in the pursuit of higher returns. Sovereign wealth funds typically buy premier buildings for their rental yields or invest in real estate funds managed by private equity groups.
But with rental yields hovering around 4 per cent, sovereign wealth funds are now taking on development and construction risk on new buildings in the hope of earing double-digit returns on such investments………………………………………..Full Article: Source

Experts say the country’s sovereign wealth fund is only focussed on investments with high returns. Bankers and politicians touting their countries’ wares have to work hard to get the attention of Qatar’s sovereign wealth fund, such is the range of its interests, from banks to cars to soccer clubs, and its exacting requirement for returns.
With estimated assets of about $200 billion, and more than a dozen potential deals on its radar every week, the state-run firm has no time for less than compelling investment opportunities and hopes to make more than 17 per cent on its book this year, according to one banker close to the fund………………………………………..Full Article: Source