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GIC Singapore scouts for more opportunities in West Bengal

Posted on 15 June 2015 by VRS  |  Email |Print

GIC Singapore, the sovereign wealth fund of the island nation, is trying to scout for more opportunities in West Bengal. “After investing USD 32.5 million in Kolkata Riverside, a 262-acre township, the fund is looking for more opportunities here,” Bengal Finance Minister Amit Mitra told PTI.
The GIC-invested PE fund, sponsored by HDFC Property and domiciled in Singapore, had signed a USD 32.5 million (Rs 200 crore) agreement with Hiland Group during the Bengal Summit inJanuary this year for Kolkata Riverside development………………………………………..Full Article: Source

GLP in talks to buy S$6b of US industrial property

Posted on 12 June 2015 by VRS  |  Email |Print

Global Logistic Properties (GLP), partly owned by Singapore sovereign wealth fund GIC, is in talks to acquire more than 200 warehouses in the United States valued at about US$4.5 billion (S$6.06 billion) as part of its push to expand in the world’s largest economy, a person with knowledge of the discussions said.
The talks with the owner of the properties, Industrial Income Trust, are preliminary and might not lead to an agreement, said the source, who asked not to be identified because the sales process is private. The assets under discussion total almost 58 million sq ft, the source added………………………………………..Full Article: Source

Qatar takes stake in Hong Kong energy trust

Posted on 12 June 2015 by VRS  |  Email |Print

Qatar Investment Authority (QIA) has ramped up exposure to Hong Kong stocks through its wholly-owned investment subsidiary with the acquisition of a stake in HK Electric Investments and HK Electric Investments Limited (collectively known as HKEI), an investment trust listed in the territory.
QIA, which is the State of Qatar’s sovereign wealth fund (SWF), has acquired a 16.53% stake in HKEI, backed by one of the two power producers in Hong Kong, for HK$7.68 billion (US$991 million) from Power Assets, which spun it off last year. In addition, it has bought a separate 3.37% stake in the trust from Cheung Kong Infrastructure, taking its total stake to 19.9%, according to a statement. Both sellers are companies controlled by Hong Kong tycoon Li Ka-shing………………………………………..Full Article: Source

GIC to more than double its stake in Franshion Properties to 6.54%

Posted on 11 June 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC will more than double its stake in Franshion Properties, after the latter placed 1.6 billion shares at HK$2.73 (S$0.50) per share as part of efforts to supplement the funding of its expansion and growth plan and broaden its shareholder base.
GIC, through the purchase of more than 425.9 million shares, will more than double its stake in the company, from 3.0 per cent to 6.54 per cent, making it the third-largest shareholder in the company. Meanwhile, New China Life Insurance Company will buy 1.014 billion shares, which will make it Franshion’s second-largest shareholder with a 9.5 per cent stake……………………………………….Full Article: Source

Middle East sovereign investors well prepared to meet funding challenges

Posted on 11 June 2015 by VRS  |  Email |Print

Middle East sovereign investors are well prepared to manage funding challenges arising out of steep fall in oil prices and potential withdrawals resulting from domestic economic compulsions, according to Global Sovereign Asset Management Study by Invesco.
“Funding is an issue for certain oil-rich sovereigns globally. Our study shows that the Middle East sovereign investors are better prepared to meet the sharp fall in oil prices than in the past although they could face increased withdrawal risks if the oil prices were to remain below $40 (Dh146) per barrel for more than two years,” Nick Tolchard, Chair of Invesco’s Global Sovereign Group & Head of Invesco Middle East, said………………………………………..Full Article: Source

Power Assets sells down stake in its Hong Kong electricity unit to Qatar sovereign wealth fund

Posted on 10 June 2015 by VRS  |  Email |Print

Power Assets Holdings, an international utilities firm controlled by tycoon Li Ka-shing, has sold a 16.5 per cent stake in HK Electric Investments (HKEI) to Qatar’s sovereign wealth fund for HK$7.68 billion. Power Assets will remain HKEI’s largest shareholder with a 33.37 per cent stake after the sale.
Together with a 3.37 per cent stake separately acquired earlier from Cheung Kong Infrastructure Holdings, Qatar Investment Authority will hold a 19.9 per cent stake in HKEI.“As we said at the time of HKEI’s initial public offering exercise, our intent has always been to maintain our stake in HKEI at between 30 per cent and 49.9 per cent,” said Power Assets chairman Canning Fok Kin-ning in a statement. “Placement of this 16.53 per cent stake is both consistent with that intent and allows us the opportunity to work closely with an important new strategic partner.”……………………………………….Full Article: Source

Qatar Fund Buys $1.2 Billion Stake in Hong Kong Utility

Posted on 10 June 2015 by VRS  |  Email |Print

Qatar Investment Authority, the Gulf state’s sovereign wealth fund, agreed to pay HK$9.3 billion ($1.2 billion) to buy a stake in Hong Kong billionaire Li Ka-shing’s electric utility as it boosts investments in Asia.
The fund’s Qatar Holding LLC unit will acquire a total 19.9 percent interest in HK Electric Investments & HK Electric Investments Ltd., controlled by Li’s Power Assets Holdings Ltd., according to a statement from the Hong Kong-based company………………………………………..Full Article: Source

Qatar fund buys $1.2 billion stake in Li’s Hong Kong utility

Posted on 10 June 2015 by VRS  |  Email |Print

Qatar Investment Authority, the Gulf state’s sovereign wealth fund, agreed to pay HK$9.3 billion (S$1.62 billion) to buy a stake in Hong Kong billionaire Li Ka-shing’s electric utility as it boosts investments in Asia. The fund’s Qatar Holding LLC unit will acquire a total 19.9 per cent interest in HK Electric Investments & HK Electric Investments Ltd, controlled by Li’s Power Assets Holdings Ltd, according to a statement from the Hong Kong-based company.
Qatar, which has invested in assets from German automaker Volkswagen AG to American Express Co’s business-travel division, plans to put as much as US$20 billion into Asia in the next five years and expand offices in Beijing and New Delhi………………………………………..Full Article: Source

GIC to increase stake in China’s Franshion Properties

Posted on 10 June 2015 by VRS  |  Email |Print

The Republic’s sovereign wealth fund GIC will invest around HK$1.16 billion (S$202 million) in Franshion Properties China to more than double its stake in the Chinese developer to around 6.5 per cent, from 3 per cent currently. This is according to a corporate filing by Franshion to the Hong Kong stock exchange on Tuesday (Jun 9).
Franshion, whose biggest shareholder is Sinochem Corp, will raise HK$4.37 billion by placing 1.6 billion shares to investors including GIC. It will use the proceeds for potential investments and debt financing. The placement price of HK$2.73 represents a 9.9 per cent discount to the last closing price. Following the placement, New China Life Insurance Co. will become Franshion’s second-largest shareholder with a 9.5 per cent stake, while Sinochem’s holding will be diluted to 54 per cent from 64 per cent. GIC will be the firm’s third-largest shareholder with around 6.5 per cent………………………………………..Full Article: Source

1MDB, Malaysia’s investment arm, repays USD975m debt

Posted on 10 June 2015 by VRS  |  Email |Print

Malaysia’s debt-ridden state investment company, 1Malaysia Development Bhd (1MDB), has settled a loan amounting to USD975m to a consortium of international banks led by Deutsche Bank AG. In a statement, 1MDB, which had racked up MYR41.9bn (USD11.1bn in debts as of 31 March 2014, said the repayment is part of its commitment to reduce its liabilities and in line with strategy approved by the Malaysian cabinet.
Malaysia’s The Start newspaper has quoted 1MDB president and group executive director Arul Kanda Kandasamy confirming the full repayment. Bloomberg has reported that the government said last month that funds to repay the loan would come from Abu Dhabi’s state-owned International Petroleum Investment Co. 1MDB, in a separate statement, said it is cooperating with authorities that are investigating the fund, which has been weighing on the local currency……………………………………….Full Article: Source

UK global leader for Sovereign Wealth Fund investment

Posted on 09 June 2015 by VRS  |  Email |Print

TheCityUK’s Sovereign Wealth Funds 2015 report, released today, reveals that SWFs have increased their presence in the UK, making it the global leader for direct SWF investments as well as the leading Western centre for the management of SWFs. While the UK and US each accounted for around 16% of the $800 billion invested by SWFs since 2007, in relation to the size of its economy, the UK attracted over five times more investment than the US.
According to the report, global assets under management of SWFs increased by 16% in 2014 to a record $7.1 trillion, with direct investments of SWFs amounting to $117 billion – the second highest annual amount invested on record………………………………………..Full Article: Source

SWFs show growing interest in emerging market infrastructure

Posted on 09 June 2015 by VRS  |  Email |Print

Sovereign funds are increasingly showing an interest in emerging market infrastructure, with an overweight to the specific asset class when compared with overall regional exposure. According to a survey of 50 sovereign wealth funds (SWFs) conducted by Invesco, the asset owners – worth more than $7trn (€6.3trn) – are showing an “affinity” for emerging markets, while their exposure to developed market property is also higher than their overall exposure to the same regions.
The asset manager’s third annual Global Sovereign Asset Management Study found that many of the risks associated with investing in emerging markets – such as corruption, regulatory risk and inadequate legal protection – fell away when investing in infrastructure………………………………………..Full Article: Source

Sovereign funds extend move into infrastructure

Posted on 09 June 2015 by VRS  |  Email |Print

The sharp slide in oil prices and low yields on traditional investments has seen sovereign wealth funds keep increasing their exposure to alternative investments like infrastructure and take on a more direct asset management role, according to a new survey. Invesco’s 2015 Global Sovereign Asset Management Study also found the low oil price was having a bigger impact on flows into North American funds than on those in the Middle East, which are large enough to weather the short term volatility.
“In the Middle East the funds are well established, larger and many were caught out during the financial crisis and so have put in place more governance and risk management policies, including allowing for oil price to fluctuate,” said Nick Tolchard, chair of Invesco’s Global Sovereign Group and head of Invesco Middle East………………………………………..Full Article: Source

Lower oil price erodes sovereign wealth funds

Posted on 08 June 2015 by VRS  |  Email |Print

Sovereign wealth funds had their best ever year in 2014 in terms of asset increases, but the falling oil price is expected to slow the future growth of these funds substantially. The assets held by sovereign wealth funds, created to safeguard money for state expenses, increased by a record $1tn in 2014, taking total assets to a high of $7.1tn.
But with the growth of sovereign wealth funds tied closely to the price of oil — 60 per cent of their assets originate from commodity exports — asset growth is predicted to slow in 2015, according to figures from TheCityUK, the financial lobbying group. Assets of sovereign wealth funds grew by 12 per cent on average in the previous five years, but the lobby group predicted asset growth would decelerate to just 4 per cent in 2015………………………………………..Full Article: Source

ADIA manages more of its billions in-house

Posted on 08 June 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA), one of the world’s biggest sovereign wealth funds, managed more of its money in-house last year as it strengthened its capabilities and added staff in some areas, ADIA said on June 02. The proportion of its assets managed by external fund managers fell to 65 percent last year from 75 percent in 2013, the authority said in its annual review.
It said this was due to “our efforts over recent years to strengthen the organisation’s in-house investment and analytical expertise”. ADIA has 1,650 employees from 60 nationalities, the review said. ADIA did not disclose its total assets under management but the US-based Sovereign Wealth Fund Institute, which tracks the industry, estimates them at $773 billion……………………………………….Full Article: Source

Abu Dhabi wealth fund approved to invest US$1.5bn in A-shares

Posted on 08 June 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA), one of the largest sovereign wealth funds in the world, has been approved to invest US$1.5 billion in China’s A-share market, reports Beijing Youth Daily. The fund has collected almost US$4 billion overseas since last week. This is not the group’s first time’s investing in China’s stock market.
The fund is a shareholder of many Chinese companies like LiuGong Machinery, Tongling Nonferrous Metals, Jiuzhou Group, Sunlord Electronics, China Shipping Development, Zhongjin Gold, Zhejiang Huahai Pharmaceutical, Jin Jiang Intel Group, and China Communications Construction Company Group………………………………………..Full Article: Source

Norway sovereign wealth fund to divest billions of dollars of coal holdings

Posted on 08 June 2015 by VRS  |  Email |Print

Norway’s $US890 billion ($1.17 billion) government pension fund, considered the largest sovereign wealth fund in the world, will sell off many of its investments related to coal, making it the biggest institution yet to join a growing international movement to abandon at least some fossil fuel stocks.
Parliament voted Friday to order the fund to shift its holdings out of billions of dollars of stock in companies whose businesses rely at least 30 percent on coal. The decision - which could seem paradoxical, given that Norway is a major producer of oil and gas - is certain to add momentum to a push to divest fossil fuel stocks that emerged three years ago on college campuses………………………………………..Full Article: Source

Norwegian Parliament votes to divest $420M+ of Duke Energy stock

Posted on 08 June 2015 by VRS  |  Email |Print

Published reports say the 169-member Norwegian Parliament voted unanimously Friday to have the nation’s government pension fund divest all shares in companies that get significant revenue from coal operations. The divestiture, to take place by the start of 2016, will affect 122 companies worldwide, including Charlotte-based Duke Energy.
The Norwegian Government Pension Fund Global is the world’s largest sovereign wealth fund, with almost $900 billion in investments. It is one of Duke’s largest institutional shareholders………………………………………..Full Article: Source

EBRD invests in Kazakhstan’s first large-scale solar plant

Posted on 08 June 2015 by VRS  |  Email |Print

A landmark renewable energy project in Kazakhstan will be co-financed by the EBRD and the Clean Technology Fund (CTF) with loans of well over €80 million. EBRD President Suma Chakrabarti, said the EBRD has consistently supported sustainable energy projects in Kazakhstan, but Burnoye Solar is a particular landmark for the country’s Green Economy agenda. “It is a first in many crucial categories.
It will be the first commercial-scale solar park in Kazakhstan. It will be the first privately owned renewable energy generator in Kazakhstan. And it is the first use of a new project finance structure that will open the door to more private investment in renewables in the future.” The EBRD will lend 14.06 billion tenge (€70 million equivalent), and the CTF will lend €13.8 million to the project which is pioneering the use of a non-recourse project finance structure………………………………………..Full Article: Source

Abu Dhabi Approved to Invest $1.5Bln in Chinese Stock Market

Posted on 04 June 2015 by VRS  |  Email |Print

New reports are suggesting the Abu Dhabi Investment Authority has been granted approval to invest 1.5 billion US dollars in the Chinese A-share market. The report has yet to be confirmed by Chinese authorities.
If true, it will be the largest investment approved by China’s foreign exchange regulator under the Qualified Foreign Institutional Investor, or QFII, program. The Abu Dhabi Investment Authority is the sovereign wealth fund of Abu Dhabi……………………………………….Full Article: Source

Japanese sovereign patent fund gains momentum with two big deals in the past week

Posted on 03 June 2015 by VRS  |  Email |Print

IP Bridge – Japan’s first state-funded patent aggregator, or sovereign patent fund (SPF) – announced two significant deals on Friday. As a result it will take ownership of several hundred patents and become a licensor for an MPEG-LA patent pool. IP Bridge will be assigned over 500 smartphone-related patents in the first of the transactions; a press release the assignor unnamed, but describes it as a “Japanese electronics company”.
The second deal consists of an unspecified number of patents transferred from Panasonic, which has been a consistent supplier of assets to – as well as an initial investor in – the aggregation fund operated by IP Bridge. It is noteworthy that this assignment will make IP Bridge a licensor for a video codec-related patent pool operated by MPEG-LA………………………………………..Full Article: Source

Companies plan to boost SWF targeting

Posted on 02 June 2015 by VRS  |  Email |Print

Twenty-eight percent of companies globally say they plan to increase their focus on sovereign wealth funds (SWFs) this year, according to the latest research from IR Magazine. The number looking to boost SWF targeting is at least 11 percentage points higher than those looking to increase their focus on ESG/SRI portfolios (17 percent), private banking portfolios (17 percent), family offices (15 percent) or hedge funds (12 percent). Just 2 percent of IROs state an intention to decrease SWF shareholder targeting, compared with a high of 11 percent for hedge funds.
Asian IROs are more likely than counterparts elsewhere to increase their focus on SWFs: 39 percent say they plan to increase targeting of these funds, compared with 27 percent in Europe and 21 percent in North America. At the cap size level, 23 percent of IR professionals at both small and mid-cap companies say they plan to increase their focus on SWFs, climbing to 34 percent and 35 percent at large and mega-cap companies, respectively………………………………Full Article: Source

Sovereign wealth fund sells stakes in two of China’s biggest banks

Posted on 01 June 2015 by VRS  |  Email |Print

A branch of China’s sovereign wealth fund, Central Hujin Investment, has sold RMB3.5 billion (US$565 million) in shares of Industrial & Commercial Bank of China and China Construction Bank, potentially paving the way for further reduction of government control of the country’s biggest banks, Bloomberg reported, citing filings to the Hong Kong Stock Exchange.
Hujin holds stakes in 19 of the biggest financial institutions in China, and had raised stakes in the country’s four largest banks in recent years to bolster valuations near record lows………………………………….Full Article: Source

State investment fund Central Huijin’s president steps down after large share sale

Posted on 01 June 2015 by VRS  |  Email |Print

State-owned Chinese investment company Central Huijin Investment Ltd., a unit of China’s sovereign wealth fund, said its president has left his post after the company’s share sale of State banks was cited by traders as a factor behind a plunge in China’s stock markets on Thursday. Xie Zhichun “will no longer serve as president of the company,” Central Huijin, a subsidiary of China’s sovereign wealth fund, said in a statement posted on Friday on its website.
Xie will also no longer serve as executive director of the company after approval from the State Council, or China’s cabinet, Central Huijin said. The company did not name his replacement. The company did not give a reason for Xie’s departure, which came three days after it sold a combined 3.5 billion yuan’s ($564.5 million) worth of mainland-listed shares in China Construction Bank (CCB) and Industrial and Commercial Bank of China (ICBC)………………………………….Full Article: Source

AGL, New Hope could be hit by Norway divestment drive but BHP and Rio safe

Posted on 29 May 2015 by VRS  |  Email |Print

AGL Energy and coal miner New Hope Corp could be the biggest casualties of a proposed directive by Norway’s parliament for the nation’s $US900 ($1.16 trillion) sovereign wealth fund to sell out of coal stocks. The plan would build on earlier steps by Norway’s Government Pension Fund Global (GPFG) to reduce its coal exposure and adds momentum to a global push for divestment from coal.
The GPFG is built on Norway’s oil wealth and the latest measure would capture power companies that depend on coal for more than 30 per cent of generation as well as miners that get 30 per cent of their revenues from thermal coal. The GPFG sold out of Whitehaven Coal last year. ……………………………..Full Article: Source

Singapore’s GIC Buys Stake in Brazil’s Hospital Operator Rede D’Or

Posted on 29 May 2015 by VRS  |  Email |Print

Singapore’s sovereign-wealth fund GIC Pte. Ltd. has agreed to buy an undisclosed stake in Brazilian hospital operator Rede D’Or São Luiz, investment bank BTG Pactual SA said on Thursday. BTG said GIC will pay 1.6 billion Brazilian reais ($508 million) for its shares in Rede D’Or.
According to Valor Economico newspaper, GIC agreed to acquire a total stake of 15.3% in Rede D’Or for 3.2 billion Brazilian reais, with the company’s founding Moll family and BTG selling equal stakes. A BTG spokesman declined to provide further details on Thursday. GIC and Rede D’Or representatives weren’t immediately available for comment………………………………Full Article: Source

Bahrain’s Mumtalakat sovereign wealth fund targets foreign acquisitions to fuel expansion

Posted on 28 May 2015 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund is targeting more acquisitions this year as it seeks to double its assets in the next five years. Mumtalakat, which posted net profit growth of 11 per cent last year to 91.6 million Bahraini dinars (Dh892.5m), plans to grow its assets, which reached US$7.2 billion at the end of June.
Profit rose despite a 64.6 per cent increase in impairments at 34.4m dinars, the wealth fund said. Revenue grew 11 per cent to 1.2bn dinars. “There are two ways that we grow our assets,” said Mahmood Al Kooheji, the chief executive. “Initially, the portfolio that we already have, there is potential to grow there. The other angle is that we are looking internationally and globally for new acquisitions to increase the value of the portfolio that we have.”………………………………..Full Article: Source

GIC Said to Pay $1 Billion for 15 Percent of Brazil’s Rede D’Or

Posted on 28 May 2015 by VRS  |  Email |Print

GIC Pte, Singapore’s sovereign wealth fund, paid about 3.2 billion reais ($1 billion) for a 15.2 percent stake in Brazilian medical-care provider Rede D’Or Sao Luiz SA, according to two people with direct knowledge of the matter.
GIC acquired half the stake from the company’s founding Moll family and the rest from Grupo BTG Pactual, the people said, asking not to be identified because the terms aren’t public. The deal was signed Wednesday, the people said……………………………………Full Article: Source

GIC & Blackrock among cornerstone investors in 3SBio Inc’s $712m HK IPO

Posted on 28 May 2015 by VRS  |  Email |Print

3SBio Inc., a Chinese producer of biopharmaceutical products, and its private-equity backer are seeking as much as $712 million from a Hong Kong initial public offering.
The company, based in the northeastern Chinese city of Shenyang, and an arm of Citic Private Equity Funds Management Co. are offering 606.1 million shares at HK$8.30 to HK$9.10 apiece, according to terms for the deal obtained by Bloomberg. New shares account for 80 percent of the sale, the terms show……………………………………Full Article: Source

Singapore’s Temasek reduces stake in Amyris Biotech

Posted on 28 May 2015 by VRS  |  Email |Print

Temasek Holdings has reduced its stake in Amyris Biotechnologies by 1.12 per cent, to 39,340,967 shares. The Singapore based fund now owns 36.12 per cent of the industrial bioscience materials company. Currently, Amyris has a market capitalisation of $160.65 million.
The company focuses on leveraging its bioscience technology to develop and provide renewable compounds for different industries. The firm applies an industrial bioscience technology platform to provide alternatives to select petroleum-sourced products that are used in the consumer care, specialty chemical and transportation fuel sectors……………………………………Full Article: Source

India: SWFs may get to buy stakes in highway projects

Posted on 27 May 2015 by VRS  |  Email |Print

The government is finalising a mechanism that will allow private equity firms and sovereign wealth funds, including Khazanah, Macquarie and Temasek to buy stakes in highway projects, freeing up resources for the sector. “There is a lot of interest…we are examining how best to leverage it…There are various options,” a road ministry official told ET, confirming that these three investors are among those that want to take over road projects in India and are waiting for a clear policy directive.
One option under consideration is a government-promoted special purpose vehicle that will pick up part of the equity in projects in which PEs and SWFs are interested. The Rs 20,000 crore National Investment and Infrastructure Fund, proposed by finance minister Arun Jaitley in his budget speech, could be tapped for this…………………………………..Full Article: Source

17 facts about Chinese investment in Australia

Posted on 27 May 2015 by VRS  |  Email |Print

What started as Chinese sovereign funds making exploratory investments in Australia has now proliferated into investment sprees by Chinese developers, banks, ultra high net worth individuals (UHNWI’s) and institutional investors such as insurance companies.
The attractiveness of mature gateway markets in the UK, US and Australia is pulling capital out of China, providing quality products and higher yield returns with diversification benefits and assisting institutions and developers build their brand internationally………………………………….Full Article: Source

SOFAZ to invest in Chinese Yuan in mid-year

Posted on 26 May 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, an entity that accumulates and manages Azerbaijan’s oil and gas revenues, plans to invest $500 million in bonds, denominated in Chinese Yuan in June of this year. The relevant agreement has already been signed with the Chinese Central Bank, SOFAZ Executive Director Shahmar Movsumov told Trend Agency last week.
“We already have an agreement with the Central Bank of China, and a few days ago our securities committees signed a document, after which we can start investing,” he noted. Last week the State Securities Committee of Azerbaijan and China Securities Regulatory Commission signed a memorandum aimed to ensure the investors’ protection and promote the integrity of securities and futures markets and other related investment instruments by expanding the scope of cooperation, strengthening the exchange of regulatory and technical information………………………………………..Full Article: Source

Future Fund dives in

Posted on 26 May 2015 by VRS  |  Email |Print

The Future Fund has taken a deeper plunge into European debt markets by snapping up a €705 million ($988.6m) portfolio of loans from Hayfin Capital Management. Hayfin lends to medium-sized European companies and the financier works across the full range of debt structures, originating most of its own deals from structured transactions to mezzanine and other subordinated debt instruments.
The move is the culmination of six years of involvement by the Future Fund, which backed Haymarket Financial, alongside luminaries including Lord Rothschild, to the combined tune of €450 million in the wake of the financial crisis, when the continent’s credit markets were frozen………………………………………..Full Article: Source

Wealthy Gulf investors should focus on Mena infrastructure, WEF’s Gordon Brown says

Posted on 25 May 2015 by VRS  |  Email |Print

Gordon Brown, the former UK prime minister and current head of the World Economic Forum’s infrastructure initiative, urged wealthy Arabian Gulf states and individuals to invest in much-needed infrastructure projects in the poorer parts of the Middle East. There is a huge spending deficit on infrastructure in the region compared to other parts of the world, Brown noted.
He added, there is an enormous amount of untapped wealth in the richer parts of the region – particularly Gulf sovereign wealth funds – that could be accessed if the right structures were in place. “If you bring together Miga with a Saudi sovereign wealth fund to finance a project to build telecoms infrastructure in Palestine, you are going to get it done no problem,” said Thierry Déau, the founder of Meridiam, a French government-supported long-term infrastructure investment company………………………………………..Full Article: Source

Sovereign wealth fund buys two North Hills hotels for $103M

Posted on 25 May 2015 by VRS  |  Email |Print

Kane Realty and Concord Hospitality Enterprises have sold two hotels at North Hills for nearly $103 million to the sovereign wealth fund of the government of Abu Dhabi. The Abu Dhabi Investment Authority paid $79.91 million for the 229-room Renaissance Raleigh North Hills and $22.945 million for the 137-room Hyatt House Raleigh North Hills, according to Wake County property records.
Abu Dhabi is the capital of the United Arab Emirates, an oil-rich nation in the Persian Gulf. ADIA is the largest sovereign wealth fund in the Middle East, according the Sovereign Wealth Fund Institute. The deal is the latest example of how attractive the Triangle real estate market has become to global institutional investors………………………………………..Full Article: Source

CIC subsidiary to focus on overseas targets

Posted on 25 May 2015 by VRS  |  Email |Print

The nation’s sovereign wealth fund has established a new subsidiary that will focus on overseas direct investment, a senior official said on Wednesday. Gu Dawei, head of the department of foreign capital and overseas investment of the National Development and Reform Commission, said the company’s total funds for investment may exceed the $40 billion Silk Road Fund, a new financing institution for projects involved in the “Belt and Road Initiative” to develop connectivity along the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
The new subsidiary, CIC Capital, “has started operation. It will support domestic enterprises to invest abroad and encourage the export of the country’s advanced industrial capacity”, said Gu………………………………………..Full Article: Source

Sovereign, public pension funds investing more in real estate and infrastructure: report

Posted on 22 May 2015 by VRS  |  Email |Print

Sovereign wealth funds and public pension funds have been moving aggressively into real estate and infrastructure to offset low returns in traditional markets, raising the risk of asset bubbles, said the Global Public Investor 2015 (GPI 2015) report. The survey of 500 global public-sector institutions across 180 countries found that central banks, on the other hand, continue their purchases of equities.
Total assets under management, including gold, of these 500 public sector asset managers rose 1.8 per cent or US$520 billion in 2014 to US$29.7 trillion. Growth was primarily driven by public pension and sovereign funds. The Official Monetary and Financial Institutions Forum (OMFIF), the global research and advisory group behind the report, estimates that 9.1 per cent or US$2.7 trillion of the total assets held by the 163 central banks, 89 sovereign funds and 248 public pension funds surveyed lie in real estate and infrastructure………………………………………..Full Article: Source

Why Long-Term Investing Can Be Dangerous

Posted on 22 May 2015 by VRS  |  Email |Print

Personally, I agree that, in general, large sovereign funds and pensions should invest for the long-term. There are scores of reasons why and thousands of papers produced by asset managers, think tanks and professors who believe so. Nearly every institutional investor with over US$ 100 billion in assets subscribes to the “long-term investor” philosophy.
Will the Canary Wharf deal be a positive in the long-run for the Qatar Investment Authority (QIA) given the price paid and resources allocated? Incorrect expectations based on a shaky premise can lead to money being stuck in an underperforming asset (this is especially the case with sizable illiquid investments)………………………………………..Full Article: Source

Australia’s Future Fund Acquires €705 Portfolio from Hayfin

Posted on 20 May 2015 by VRS  |  Email |Print

Major backers of Hayfin Capital Management have reduced their stakes in the direct lender after it offloaded a €705 million portfolio of loans to Australian sovereign wealth fund The Future Fund, one of its existing investors.
Hayfin, a €6 billion direct lender backed by TowerBrook Capital Partners, will continue to manage the assets alongside more than €5 billion worth of third-party funds and separate accounts, according to two people familiar with the matter. The firm will use the proceeds to return capital to TowerBrook and co-investors including Canada’s Public Sector Pension Investment Board and the Ontario Municipal Employees Retirement System………………………………………..Full Article: Source

Australia’s Future Fund picks Elementum for reinsurance debut

Posted on 19 May 2015 by VRS  |  Email |Print

Australia’s A$117bn sovereign wealth fund has hired ILS specialist manager Elementum Advisors to manage a reinsurance portfolio on its behalf.
The Future Fund declined to disclose the size of the mandate allocated to Elementum, but said that the portfolio had the flexibility to invest in collateralised reinsurance as well as catastrophe bonds. “We will continue to engage with the (re)insurance sector while remaining cautious about the pricing environment,” a spokesman said………………………………………..Full Article: Source

GIC, CPPIB to acquire Seoul mall for S$348m

Posted on 19 May 2015 by VRS  |  Email |Print

Sovereign wealth fund GIC and Canada Pension Plan Investment Board (CPPIB) will be acquiring the D-Cube retail mall in Seoul in a joint venture for US$263 million (S$348 million). As part of a joint venture partnership, GIC and Canada Pension Plan Investment Board will each own a 50 per cent stake in the mall next to Sindorim Station in Seoul.
In a joint media release on Monday (May 18), GIC and CPPIB said they will each own a 50 per cent stake in the mall following the acquisition from Daesung Industires. D-Cube, which was completed in 2011, is situated next to Sindorim Station, a major transportation hub connecting Seoul with Incheon and other major metropolitan cities near the capital………………………………………..Full Article: Source

Qatar is interested in investment in transport infrastructure, energy and agriculture

Posted on 19 May 2015 by VRS  |  Email |Print

Sheikh Faisal bin Saud Al Thani, Head of Business Development - Qatar Holding at Qatar Investment Authority declared interest in investment in transport infrastructure, energy and agriculture. Representatives of the Holding met with Bulgarian Prime minister Boyko Borisov and Bulgarian ministers who pay an official visit to Doha, the governmental information service announced.
During the talks Qatar state officials reaffirmed their interest in operating of Doha-Varna line. A Qatari delegation is to visit Bulgaria to examine specific opportunities for development of Varna seaport. Qatar also showed keen interest in training and experience exchange with Bulgarian specialist in the field of air traffic management………………………………………..Full Article: Source

Aussies set to buy Pendolino owner

Posted on 18 May 2015 by VRS  |  Email |Print

An Australian pensions giant and Abu Dhabi’s sovereign wealth fund are part of a consortium closing in on a takeover of a third of Britain’s trains. The clutch of international investors, led by Australia’s AMP Capital, is leading the race to buy Angel Trains, which was recently put up for sale by its owners. AMP already owns 25% and has the right to match any offer.
Britain’s three rolling stock companies, or roscos, — Angel, Porterbrook and Eversholt — were formed two decades ago with the privatisation of British Rail. They have attracted huge interest from pension and sovereign wealth funds eager to snap up infrastructure assets with stable earnings………………………………………..Full Article: Source

GIC Invests in Sulekha

Posted on 18 May 2015 by VRS  |  Email |Print

Sulekha.com, India’s leading digital platform for local services, today announced that GIC, the sovereign wealth fund of Singapore, and Norwest Venture Partners, a top-tier global investment firm, have invested $ 28 M into the company. Sulekha.com will use the capital to further expand its platform that connects one of the largest bases of users and local service providers, and invest in technology and branding.
Satya Prabhakar, Founder and CEO of Sulekha.com, said, “Sulekha was founded in Austin as a tiny website serving Indians in US and this investment by GIC and Norwest is a powerful endorsement of the vast potential of the local services opportunity and Sulekha’s ability to prosecute it successfully both within and outside of India………………………………………..Full Article: Source

Cofco Joins With China Wealth Fund to Create Global Grain Trader

Posted on 15 May 2015 by VRS  |  Email |Print

Cofco Corp., China’s largest food company, joined forces with the country’s $650 billion sovereign wealth fund to create a global grain trading house. Cofco and China Investment Corp. set up a joint venture named Cofco International as a “platform for international agriculture investment,” the food company said Thursday in a statement. Cofco owns 80.1 percent and CIC the rest, it said, without giving financial details.
The partnership will help Cofco to integrate the trading businesses it acquired last year, when it snapped up 51 percent stakes in Noble Group Ltd.’s grain arm and the Netherlands’ Nidera BV. The acquisitions, giving Cofco large operations in Latin America and eastern Europe, will allow the state-owned company to compete with the biggest grain suppliers………………………………..Full Article: Source

Sovereign wealth funds increase appetite for longer term investments

Posted on 12 May 2015 by VRS  |  Email |Print

Historically government fixed income has been an asset allocation staple of sovereign wealth funds (SWF). However, these unprecedented, low bond yields have pushed them to reassess their weightings and readjust their portfolios.Patrick Thomson, global head of Sovereigns, JP Morgan Asset Management, looks at the changing asset preferences of SWFs.
Central bank monetary policy across the globe is significantly impacting markets around the world. In the Eurozone alone, more than a quarter (26%) of European government bonds are trading on a negative yield, over half (54%) of Germany Bunds are trading on a negative yield – with some 23% yielding less than the -20 basis points threshold for European Central Bank (ECB) bond buying eligibility……………………………………….Full Article: Source

Bandhan raises funds from Singapore’s GIC

Posted on 12 May 2015 by VRS  |  Email |Print

Bandhan Financial Services has raised Rs 1020 crore equity from International Finance Corporation, Singapore’s sovereign wealth fund GIC and Small Industries Development Bank of India, its chairman and managing director Chandra Shekhar Ghosh told ET Monday.
GIC has invested Rs 640.87 crore while IFC has pumped in Rs 344 crore into Bandhan, India’s first microfinance lender to get an in-principle approval to set up a bank. Sidbi has invested Rs 35 crore afresh. GIC is first time investor in Bandhan while IFC’s shareholding in the company will raised from 10.9%. Ghosh did not divulge the latest shareholding structure. Sidbi is also an existing shareholder………………………………………..Full Article: Source

GIC and CPPIB join deal for Hutchison UK units

Posted on 12 May 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund (SWF) GIC Private Limited (GIC) and the Canada Pension Plan Investment Board (CPPIB) led the way in a co-investment worth as much as £3.1 billion (US$4.8 billion) into the UK telecom business of Hutchison Whampoa, controlled by Hong Kong billionaire Li Ka-shing.
GIC and CPPIB agreed to each contribute £1.1 billion to invest in an entity which will be created by merging the businesses of O2 UK and Three UK, two of the country’s major mobile service providers, owned by the Hong Kong-based conglomerate. The combined business will become the number one mobile operator in the UK with nearly 33 million customers, according to a statement by CPPIB. The Canadian pension fund will end up owning an approximate 12% stake in the entity………………………………………..Full Article: Source

GIC set to invest $2.2b in British telcos

Posted on 11 May 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC is set to invest £1.1 billion (S$2.2 billion) in British mobile phone giants O2 and Three. GIC is teaming up with four other institutional investors to acquire one-third of the two telcos - which are poised for a mega merger - in a deal worth £3.1 billion in total.
The seller is Hutchison Whampoa, controlled by Hong Kong tycoon Li Ka Shing. The other institutional investors are the Canada Pension Plan Investment Board, Canadian public pension fund Caisse de depot et placement du Quebec, a subsidiary of the Abu Dhabi Investment Authority and Brazilian investment bank BTG Pactual……………………………………….Full Article: Source

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