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Sovereign Wealth Funds Briefing - Category | Investment more

Oman fund invests in Gujarat agrochem firm

Posted on 12 December 2014 by VRS  |  Email |Print

The Oman India Joint Investment Fund (OIJIF), a joint venture between State Bank of India (SBI) and Oman’s sovereign wealth fund State General Reserve Fund (SGRF), has invested Rs.95 crore in GSP Crop Science Pvt. Ltd, a Gujarat-based agrochemical company.
“We believe there is a huge potential for growth in agrochemical sector in India driven by growing awareness among farmers and favourable political impetus to increase farm productivity. With OIJIF’s investment and our internal resources, GSP aims to double its market share in coming three years,” said Kenal Shah, managing director of GSP Crop Science………………………………………..Full Article: Source

Angola sovereign fund allocates $1.6 bln to Africa projects

Posted on 11 December 2014 by VRS  |  Email |Print

Oil-rich Angola’s sovereign wealth fund has set aside $1.6 billion to back infrastructure and hotel projects across sub-Saharan Africa, though falling energy prices could slow future flows of new money into its coffers.
In an investment update for the three months to September 30, the Fundo Soberano de Angola (FSDEA) said on Wednesday its net value now stands at $4.95 billion, net of running costs taken out of the original $5 billion endowed by the government. The FSDEA said it is investing $1.1 billion in an infrastructure fund that will focus on investments in energy, transport and industrial projects in Angola and elsewhere in sub-Saharan Africa………………………………………..Full Article: Source

Angola Sovereign Fund Invests in Energy, Transport

Posted on 11 December 2014 by VRS  |  Email |Print

The sovereign wealth fund of Angola, Africa’s second-largest crude oil producer, is investing in infrastructure projects and hotels for high yields shielded from volatility, Chairman Jose Filomeno dos Santos said.
The $4.95 billion fund, managed by Zug, Switzerland-based Quantum Global Investment Management Ltd., is placing $1.1 billion with a fund that invests in equities tied to energy, transport and industrial developments across sub-Saharan Africa, dos Santos, son of Angola President Jose Eduardo dos Santos, said in an e-mailed statement today. The fund is investing $500 million in a separate hotel fund for Africa to train staff, he said………………………………………..Full Article: Source

Angola launches $1.6bn Africa infrastructure fund

Posted on 11 December 2014 by VRS  |  Email |Print

Angola’s sovereign wealth fund has launched $1.6bn African infrastructure and hotels funds to help diversify its portfolio as the slide in crude prices threatens the country’s oil-dependent economy.
The $5bn SWF, which was set up two years ago but only began to deploy its cash this year, is allocating $1.1bn to a fund that will invest in energy, transport and other infrastructure projects across sub-Saharan Africa………………………………………..Full Article: Source

Norway oil fund lifts investment ban on Dongfeng

Posted on 11 December 2014 by VRS  |  Email |Print

Norway’s $860 billion oil fund has lifted its investment ban on Dongfeng Motor Group Co and will no longer keep Randgold Resources Ltd. on observation for possible exclusion, the finance ministry said in a statement on Wednesday.
The government regularly reviews the oil fund’s investments and puts companies either on a watch list or excludes them from the fund’s portfolio if the ministry’s ethics council observes ethical violations in the firms’ operations………………………………………..Full Article: Source

Russian and Indian Funds to Invest $1 Billion in Hydro Power

Posted on 11 December 2014 by VRS  |  Email |Print

The Russian Direct Investment Fund (RDIF) will team up with an Indian partner to invest $1 billion in hydroelectric projects in Asia’s third-largest economy, the head of the Russian state fund said Wednesday.
The RDIF and India’s IDFC, a leading infrastructure investor, will each commit $500 million to projects under a deal to be signed on Thursday during Russian President Vladimir Putin’s visit to India. Prime Minister Narendra Modi wants to overcome India’s chronic power shortages, and the country has vast untapped hydroelectric potential in its northern Himalayan belt………………………………………..Full Article: Source

GLP Co-Invests with GIC on $8B IndCor Purchase

Posted on 11 December 2014 by VRS  |  Email |Print

Global Logistics Properties Ltd., the leading provider of logistics facilities in Asia and Brazil, is making a big move into the United States industrial market by taking a 55 percent stake in a deal with GIC, Singapore’s sovereign wealth fund, to buy IndCor Properties from Blackstone for $8.1 billion.
Blackstone announced last week it was skipping a planned IPO for IndCor, which is the second largest owner of industrial properties in the U.S. with a platform of 117 million square feet, and selling it to GIC. Although GLP was rumored to be part of the deal, the company would not confirm last week that it was joining with GIC on the largest industrial deal of the year………………………………………..Full Article: Source

Flipkart in talks to raise up to $1 billion

Posted on 10 December 2014 by VRS  |  Email |Print

India’s largest e-commerce firm Flipkart is in advanced talks to raise between $700 million and $1 billion in fresh funds, barely four months after the company received a record $1 billion, according to three people familiar with the matter.
Qatar Investment Authority, the sovereign wealth fund of Qatar, is one of the new investors Flipkart is in discussions with, the two people said. Flipkart declined to comment. The Qatar Investment Authority, which has also invested in the US-based cab booking service Uber, didn’t respond to an email seeking comment………………………………………..Full Article: Source

Singapore Acquisitions Hit a Record High

Posted on 10 December 2014 by VRS  |  Email |Print

Heavy buying by Singapore companies, such as an $8.1 billion purchase in the U.S. by a consortium including sovereign-wealth fund GIC Pte. Ltd., has sent acquisitions to record highs this year. Buying by GIC and Temasek Holdings Pte. Ltd., the government’s two investment firms, accounts for more than a third of the total.
Together, GIC and Temasek have spent close to a record $21 billion, according to figures from Dealogic, a data-tracking company, more than double the $8.9 billion they spent last year. The total is more than the $19.8 billion they spent in 2007, when the state investment companies laid out billions of dollars to acquire stakes in banks such as Barclays PLC, Merrill Lynch and UBS AG………………………………………..Full Article: Source

Qatar Investment Authority participates in Uber’s $1.2B funding round

Posted on 10 December 2014 by VRS  |  Email |Print

US-based New Enterprise Associates (NEA) and Middle East sovereign wealth fund, Qatar Investment Authority, participated in online cab booking company Uber’s $1.2 billion investment round announced early this month, says a The Wall Street Journal report, quoting unnamed sources.
The round also saw participations from US-based Valiant Capital Partners and Lone Pine Capital. Earlier, Uber announced in an official blog post that it had secured $1.2 billion in fresh funding from a group of unnamed investors. Separate media reports said the company has been valued at $40 billion with the fresh funding round. Uber plans to use the fresh capital for growth, especially in the Asia-Pacific region………………………………………..Full Article: Source

Temasek to buy 10% stake in US high-speed trading firm Virtu

Posted on 09 December 2014 by VRS  |  Email |Print

Temasek Holdings will pay about US$180 million (S$238 million) for a minority stake in Virtu Financial, the United States high-speed trading firm that had postponed an initial public offering, said a person familiar with the transaction.
The investment company will buy a portion of the equity investment held by Silver Lake Partners, Virtu said yesterday in a statement, which did not give a price. Temasek bought about a 10 per cent stake, another person with knowledge of the transaction said, asking not to be named as that information is private………………………………………..Full Article: Source

Qatar fund buys stake in taxi app Uber - report

Posted on 09 December 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund has reportedly bought a stake in the controversial mobile taxi dispatching service Uber. Qatar Investment Authority (QIA) was among investors who participated in a $1.2 billion financing round, according to the Wall Street Journal. The newspaper did not detail the exact size of QIA’s investment.
Uber, which allows drivers and passengers to connect via a mobile phone app, has been controversial in many of the countries where it operates, including the UAE, because it can offer lower fees and bypass traditional taxi booking services………………………………………..Full Article: Source

Global Logistic Properties to partner GIC in US$8.1 billion IndCor investment

Posted on 09 December 2014 by VRS  |  Email |Print

Global Logistic Properties will be co-investing with Singapore sovereign wealth fund GIC to acquire one of the largest logistics real estate portfolios in the US for US$8.1 billion, confirming earlier speculation that it would be involved in the deal.
GIC had announced last week that it and other partners were set to buy over warehouse owner IndCor from private equity giant Blackstone. The transaction provides GLP with immediate scale in the US, the world’s largest economy and logistics market, as well as an experienced local management team that further strengthens GLP’s team……………………………………….Full Article: Source

Russian State Fund May Step In to Help Big-Box Retailers

Posted on 09 December 2014 by VRS  |  Email |Print

As Russia’s worsening economic situation crimps investment, the state-run Russian Direct Investment Fund (RDIF) is negotiating with major retail chains to finance construction of new stores, the Vedomosti newspaper reported Monday, citing sources close to the negotiations.
Major retail chains like French hypermarket group Auchan require large-scale financing for store expansions, but access to cheap credit has been drying up as the falling price of oil and Western sanctions over Moscow’s role in the Ukraine crisis isolate Russia from global sources of capital and propel the economy toward recession………………………………………..Full Article: Source

Temasek buys stake in U.S. electronic trading firm Virtu

Posted on 08 December 2014 by VRS  |  Email |Print

Singapore state investor Temasek Holdings has agreed to buy a minority stake in Virtu Financial Inc, the New York-based electronic dealing firm said on Monday, in a bet on the growth of automated trading globally.
Temasek is buying a portion of U.S. private equity giant Silver Lake Partners’ stake in the company, Virtu said in a statement. Virtu did not disclose the terms of the deal. A spokesman for Temasek confirmed the investment, but declined to comment on the size of the deal………………………………………..Full Article: Source

Global Logistic to Take 55% Stake in GIC Led Venture

Posted on 08 December 2014 by VRS  |  Email |Print

Global Logistic Properties Monday said it would take a 55% stake in a venture led by Singapore’s sovereign- wealth fund that is acquiring industrial properties worth US$8.1 billion from Blackstone Group. Global Logistic will pay US$1.8 billion as its share in the venture, that will be 45% owned by GIC Pte. Ltd., the property firm said in a statement to Singapore Exchange, outlining its involvement in the deal first announced by Blackstone last week.
The Singapore firms are buying SHYIndCor Properties from Blackstone, which will bring 117 million square feet of industrial property across the U.S. under their control. The venture signifies a big bet by GIC on the American economy, where growth of online shopping is fueling demand for warehouses and distribution centers………………………………………..Full Article: Source

Canary Wharf owner Songbird rejects Qatar fund and partner’s raised offer

Posted on 08 December 2014 by VRS  |  Email |Print

Songbird Estates, the owner of London’s Canary Wharf financial district, has rejected a raised joint bid from Qatar’s sovereign wealth fund and a North American investor that values the company at 2.6 billion pounds ($4.07 billion).
Songbird said on Friday the 350 pence per share offer by Qatar Investment Authority (QIA) and Brookfield Property Partners made on Thursday “does not reflect the full value of the company, its unique position and future growth potential.”……………………………………….Full Article: Source

Uber’s Investor Club Adds Two Hedge Funds, Qatar’s Sovereign Wealth Fund

Posted on 08 December 2014 by VRS  |  Email |Print

The elite club of Uber shareholders just added a few new members. New investors in the ride-sharing startup’s $1.2 billion round of funding included Middle East sovereign wealth fund Qatar Investment Authority and two hedge funds, Valiant Capital Partners and Lone Pine Capital, according to people familiar with the matter.
One of the world’s oldest and largest venture-capital firms, New Enterprise Associates, also bought shares in the round, people briefed on the deal said. Qatar is one of several foreign investors with whom Uber has discussed a strategic investment as the startup seeks to build ties with powerful allies who can help ease its expansion into new geographic regions………………………………………..Full Article: Source

Singaporean sovereign wealth fund seals initial investment in Emperador

Posted on 05 December 2014 by VRS  |  Email |Print

In a disclosure to the Philippine Stock Exchange, the listed brandy maker owned by billionaire Andrew Tan said Arran Investment Private Limited “completed today its initial investment in Emperador Inc of P17.6 billion comprising the purchase of common shares and equity-linked securities convertible to common shares and an option to invest additional amount of P4.4 billion.”
Arran Investment is an affiliate of GIC, Singapore’s sovereign wealth fund. GIC will own up to 11.76 percent of Emperador if the equity-lined shares are converted into common shares and if the fund exercises its option to buy more shares in the Philippine firm. Emperador had said GIC’s investment will strengthen its capital position to enhance its leading industry position and expand its business in both local and global markets………………………………………..Full Article: Source

Singapore fund completes P22-B investment in Emperador

Posted on 05 December 2014 by VRS  |  Email |Print

Arran Investment Pte. Ltd., an affiliate of Singapore sovereign wealth fund GIC Pte. Ltd., has completed its P22 billion investment in the Andrew Tan-led Emperador Inc.In a disclosure to the Philippine Stock Exchange (PSE), liquor firm Emperador said, “Arran Investment Private Limited, an affiliate of GIC Private Ltd., Singapore’s sovereign wealth fund, has completed today its initial investment in Emperador of P17.6 billion comprising the purchase of common shares and equity-linked securities convertible to common shares and an option to invest additional amount of P4.4 billion.”
Emperador said this was in line with its definitive agreement with the Singaporean wealth fund in November to capture certain interests in Emperador. The completed transaction has given Arran a total stake of 11.76 percent in Emperador, including the additional investment option………………………………………..Full Article: Source

Russian investment fund eyeing more joint ventures with Turkey

Posted on 04 December 2014 by VRS  |  Email |Print

Defying rising pressure on Ankara from Western powers to join economic sanctions against Moscow, Turkey and Russia have taken yet another bold step toward deepening their joint investment cooperation. The move has prompted a top executive of the state-run $10 billion Russian Direct Investment Fund (RDIF) to express his admiration for Turkey’s “entrepreneurial spirit.”
“Right now, what is interesting is some investors don’t invest in Russia and wait. Other investors see there is actually an opportunity to invest when other people are not investing. So we have quite a bit of interest from China and the Middle East to invest, from Turkey and frankly, those countries are taking away some of the positions that other countries had,” Kirill Dmitriev, CEO of the sovereign wealth fun RDIF, said ……………………………………….Full Article: Source

Two foreign funds vying for Ssangyong E&C

Posted on 04 December 2014 by VRS  |  Email |Print

Four bidders, including two foreign funds, are in talks to acquire South Korean builder Ssangyong Engineering & Construction Co., industry sources said on Wednesday. Dubai’s sovereign wealth fund and a Singaporean private equity fund were selected as qualified bidders for the takeover of Korea’s 19th-largest building firm by construction capacity, sources said. The other two domestic bidders are Samra Midas Group and Steel & Resources.
Ssangyong E&C, which has been under a debt workout program since early this year due to a credit crunch, is expected to be sold for around 300 billion won ($269 million)………………………………………..Full Article: Source

Singapore’s GIC Fund Wagers on U.S. Property

Posted on 04 December 2014 by VRS  |  Email |Print

Singapore’s sovereign-wealth fund is making a big bet on U.S. industrial property, as a strengthening American economy and the growth of online shopping fuel demand for warehouses and distribution centers.
A venture led by GIC Pte. Ltd. is buying IndCor Properties from Blackstone Group LP for $8.1 billion. The deal, announced Monday, is one of the biggest sales of industrial property ever and would put IndCor’s 117 million square feet under GIC’s control………………………………………..Full Article: Source

GIC beefs up real-estate portfolio with US$8.1b purchase of IndCor

Posted on 03 December 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC has confirmed news that its affiliates will buy US industrial property company IndCor Properties Inc from Blackstone Group LP for US$8.1 billion, making it yet another major real-estate investment for the fund. A GIC spokesman confirmed the purchase on Tuesday, following Blackstone’s announcement of the deal.
The move gives GIC and its affiliates a significant presence in the US warehousing space, thanks to Chicago-based IndCor’s ownership of some 117 million square feet of industrial real estate throughout the country………………………………………..Full Article: Source

Blackstone selling IndCor Properties to Singapore’s GIC for $8.1B

Posted on 03 December 2014 by VRS  |  Email |Print

Steve Schwarzman’s Blackstone Group said it would sell its US industrial platform IndCor Properties to affiliates of Singapore sovereign wealth fund GIC for $8.1 billion. As a result of the deal, IndCor will no longer pursue an initial public offering filed in September, Blackstone said in a statement.
Reuters reported in November that GIC was leading a consortium to buy IndCor from Blackstone in a deal valued at about $8 billion including debt. Chicago-based IndCor was formed in 2010 as a portfolio company of Blackstone. It owns about 117 million square feet of buildings in 29 markets, according to Bloomberg News, which said the deal enables Blackstone to exit a major investment at a profit as it invests a new series of property funds………………………………………..Full Article: Source

Its official: GIC to buy Blackstone’s industrial property arm for S$10.6 billion

Posted on 03 December 2014 by VRS  |  Email |Print

GIC is acquiring IndCor, the industrial real estate arm of American investment giant Blackstone Group, for US$8.1 billion (S$10.6 billion), the Singapore sovereign wealth fund said yesterday as demand for warehouses and other logistics facilities in the United States climbs from Web retailers and other customers.
“GIC confirms the investment in IndCor,” a company spokesperson said in response to a query from TODAY after Blackstone announced the sale. GIC did not give further details. Blackstone started building IndCor in 2010 when the plunge in property values after the global financial crisis created opportunities to acquire assets from distressed sellers. Chicago-based IndCor now owns about 117 million sqf in gross floor area in 29 markets across the US………………………………………..Full Article: Source

Norway’s $870 Billion Fund Closer to Expanding Asset Pool

Posted on 03 December 2014 by VRS  |  Email |Print

Norway moved a step closer to deciding whether its sovereign wealth fund, the world’s largest, will be allowed to broaden its investments to include infrastructure as part of a strategy to increase returns.
The government will ask the $870 billion fund’s Strategy Council to assess whether the Government Pension Fund Global — the fund’s official name — should invest in unlisted infrastructure, the Finance Ministry said today. It will also look into raising the 5 percent cap on real estate investments………………………………………..Full Article: Source

Norway Considers Investing Oil Fund in Infrastructure

Posted on 03 December 2014 by VRS  |  Email |Print

Norway is assessing whether to allow its sovereign-wealth fund to invest in unlisted infrastructure, potentially including railways, pipelines and power plants, a move that would expand its asset universe from stocks, bonds and real estate.
The country’s Ministry of Finance, which oversees the $870 billion fund, said it would ask an expert group, the Strategy Council, to make an assessment of allowing infrastructure investments. It would be the first expansion of the fund’s asset classes since a 2010 decision to allow it to invest up to 5% of its value in real estate………………………………………..Full Article: Source

Russian fund eager for joint investment with Turkey in media, TV series

Posted on 03 December 2014 by VRS  |  Email |Print

“Turkish television series are very popular in Russia,” Kirill Dmitriev said on Dec. 1 during a speech on diversifying fields of bilateral cooperation in joint investments with Turkey in areas such as engineering, infrastructure and logistics, in addition to the existing cooperation in construction field.
“All of my friends are watching it,” said Dmitriev, who runs Russia’s sovereign wealth fund, the $10 billion Russian Direct Investment Fund (RDIF), referring to the popular TV series “Muhteşem Yüzyıl” (The Magnificent Century). Turkey’s experience in media is significant, Dmitriev said. “Turkish television series are very popular in Russia and frankly one of the most popular television series is coming from Turkey to Russia. So I think it is also possible to grow joint media projects.”……………………………………….Full Article: Source

Lazada Group Raises $249 Million, Led by Singapore’s Temasek

Posted on 02 December 2014 by VRS  |  Email |Print

E-commerce startup Lazada Group just got a financial boost as it seeks to dominate online shopping in Southeast Asia. The company said in a statement that it has secured 200 million euros (US$249 million) in new funds lead by Temasek Holdings, marking the first contribution from the Singapore state investment company.
The new money brings total funding for the Singapore-based Lazada Group, which was founded in 2012 and operates in six Southeast Asian countries, to about 520 million euros ($647 million), the company says………………………………………..Full Article: Source

Singaporean Fund Backs Branson Cruise Venture

Posted on 02 December 2014 by VRS  |  Email |Print

A Singaporean sovereign wealth fund is to back Sir Richard Branson’s attempt to break into the global cruise market. Sky News has learnt that the Government Investment Corporation of Singapore (GIC) will join the buyout firm Bain Capital as a founding shareholder in Virgin Cruises.
GIC, which has amassed a portfolio of interests in large British companies, including the RAC roadside recovery service, is expected to inject a substantial sum into the venture. At least one Middle East sovereign wealth fund and a number of family offices and high net worth individuals are also believed to be investing, according to private equity sources………………………………………..Full Article: Source

Middle East Wealth Funds To Actively Invest In 2015

Posted on 01 December 2014 by VRS  |  Email |Print

Sovereign wealth funds in the region are investing more in emerging markets such as Africa and China as they shift away from Western markets. Sovereign wealth funds (SWFs) in the Middle East are looking to invest actively in an effort to generate better returns for their shareholders, according to a new study by auditing and consulting firm KPMG. The report also found that there has been a shift in the last two years on how SWFs allocate their assets.
“While the majority of SWFs continue to deploy their funds in bonds and global equities, a relatively low interest rate environment, continually evolving investment strategies and a growing appetite for alternative asset classes are resulting in a shift away from what has typically been a passive investment philosophy,” said Vikas Papriwal, KPMG partner and head of markets………………………………………..Full Article: Source

China enables national pension to invest more assets offshore

Posted on 01 December 2014 by VRS  |  Email |Print

China has relaxed rules around foreign investment for its national pension fund, raising expectations within the international asset management community of potential future business wins. China’s State Council last week released an announcement clarifying rules governing its National Social Security Fund, the fifth-largest pension fund in the world, with $205bn of assets.
Stewart Aldcroft, Asia chief executive of CitiTrust, Citigroup’s securities and funds services business, who is based in Hong Kong, said: “International fund managers are constantly trawling these funds for more money to manage on their behalf. It is estimated there are more than 120 international mandates now given out by mainland [Chinese] institutions and [China’s sovereign wealth fund]. There is always an opportunity.”……………………………………….Full Article: Source

SOFAZ considers all risks while investing abroad

Posted on 28 November 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ takes into account all possible risks while planning to invest in various financial instruments abroad, in particular in the Russian market which is going through a difficult period. SOFAZ made the statements commenting on the possible impact of the progressive devaluation of the Russian ruble and the stock market decline on the fund’s revenues from assets management in Russia during the third quarter, Trend Agency said.
SOFAZ owns a real estate in Russia, and is one of the shareholders of VTB Bank. As part of its new investment policy, pursued since 2012, SOFAZ purchased Gallery Actor, a mixed-use office and retail complex located on Pushkin Square in Moscow for $133 million…………………………………..Full Article: Source

Macquarie Group, Kuwait’s Sovereign-Wealth Fund to Buy E.On’s Spanish Assets

Posted on 28 November 2014 by VRS  |  Email |Print

German power utility E.ON SE has agreed to sell its Spanish assets to Australia’s Macquarie Group and Kuwait’s sovereign-wealth fund in a deal worth €2.5 billion ($3.1 billion), according to people familiar with the matter. E.ON’s supervisory board is set to meet Friday to approve the deal, the people said.
The sale is part of an orderly but costly retreat by the German utility giant from Southern Europe’s electricity market, hard hit by a six-year economic downturn and sweeping regulatory changes that lowered the profitability of energy firms in Spain. E.ON is also in the final stage of selling its assets in Italy…………………………………..Full Article: Source

Russian Investment Grade Seen at Risk by S&P on Fund Raid

Posted on 27 November 2014 by VRS  |  Email |Print

Russia has limited room for tapping one of its sovereign wealth funds before jeopardizing its investment-grade debt rating, according to Standard & Poor’s.
“If money is spent to support the economy, to support specific companies — that would lead to a decline of those fiscal buffers beyond what we currently expect,” S&P analyst Christian Esters said in an interview in Moscow yesterday. The rainy-day funds “are strong mitigating factors for the stresses Russia has been experiencing.”……………………………………Full Article: Source

Was China Ready to Bail Out AIG?

Posted on 27 November 2014 by VRS  |  Email |Print

Was China’s sovereign wealth fund poised to save U.S. taxpayers from the risk they took in bailing out American International Group Inc.—but then-Treasury Secretary Henry Paulson rebuffed the Chinese help? That is one of the key assertions in the lawsuit brought by Maurice R. “Hank” Greenberg, the global insurer’s former long-time chief executive. Testimony ended Monday in the 37-day bench trial, and a review of court transcripts helps to shed light on what the Chinese did and didn’t do.
Mr. Greenberg’s suit maintains the government coerced AIG’s board into accepting its harsh terms—including the handover of a 79.9% equity stake to the U.S. —by quashing AIG’s other financing alternatives. The alleged motive: funneling bailout money through AIG to Wall Street firms and overseas banks in “backdoor bailouts.”……………………………………Full Article: Source

Was a Chinese sovereign wealth fund willing to immediately write a check?

Posted on 27 November 2014 by VRS  |  Email |Print

As the 37-day bench trial regarding the U.S. government’s forced bailout of American International Group Inc wraps up, a big question is: did the government disregard a valid offer from a Chinese sovereign wealth fund that could have bailed out AIG? Maurice R. “Hank” Greenberg, AIG’s legendary CEO and largest shareholder, brought the lawsuit against the government.
The suit essentially makes two claims: The large Wall Street banks essentially received favorable bailout terms while AIG was harshly punished – an argument that is hard to dispute. The second charge, and the one that could play into the trial more significantly, is that AIG had a valid offer from the China Investment Corp. (CIC), sovereign wealth fund, to purchase the firm and the government dismissed that offer out of hand…………………………………….Full Article: Source

Temasek, Capital International eye Avantha’s consumer biz stake

Posted on 27 November 2014 by VRS  |  Email |Print

Leading global private equity (PE) companies such as US-based Capital International Private Equity, Singapore’s sovereign fund Temasek and Bain Capital are keen to acquire a minority stake in Crompton Greaves Consumer Products - the proposed de-merged consumer business division of Avantha Group - sources said.
On Monday, Crompton Greaves, part of Gautam Thapar-promoted Avantha had said Avantha Holdings would sell a part of its 42.7 per cent stake in Crompton Greaves Consumer Products. Avantha Holdings directly owns 40.84 per cent stake with the rest held by other investment entities…………………………………….Full Article: Source

What the Nordic states can teach us about investing mining wealth

Posted on 26 November 2014 by VRS  |  Email |Print

The government formed the Petroleum Fund, into which money began to be deposited in 1996. In 2006 this became the Government Pension Fund – Global (Statens Pensjonsfond). It is commonly referred to by Norwegians as the Oljefondet (oil fund), while it is often referred to in other parts of the world as Norway’s “sovereign wealth fund”.
The fund is fully owned by the Norwegian state through the Ministry of Finance. It is managed by Norway’s central bank (Norges Bank). It has grown to be worth more than 5000 billion Norwegian kroner — some $800 billion. The fund takes in all the considerable revenues which the government receives from Norway’s oil and gas, including taxes, ownership shares and dividends from Statoil………………………………..Full Article: Source

KIC to retain BOA stake for time being: chief

Posted on 26 November 2014 by VRS  |  Email |Print

The head of South Korea’s sovereign wealth fund on Monday apologized for its botched investment in Bank of America (BoA) but stressed it plans to retain the stake for the time being to minimize losses.
“I believe that it was a poor investment and apologize to the people of Korea. I promise that Korea Investment Corp. (KIC) will remember the painful lesson from the Merrill Lynch investment and become a global sovereign wealth fund,” KIC chief executive Ahn Hong-chul told reporters in a news conference. KIC has been facing strong backlash from opposition party lawmakers for its US$2 billion investment in Merrill Lynch in 2008 before the financial firm was merged with BoA………………………………..Full Article: Source

SWF Apologizes to Citizens for Merrill Lynch Investment

Posted on 26 November 2014 by VRS  |  Email |Print

The head of South Korea’s $77 billion sovereign wealth fund has apologized to the country’s citizens for its disastrous $2 billion investment in Merrill Lynch, made shortly before the corporation merged with Bank of America.
“I believe that it was a poor investment and apologize to the people of Korea,” Hongchul Ahn, CEO of the Korea Investment Corporation (KIC), told reporters in a news conference Monday. “I promise that Korea Investment Corporation will remember the painful lesson from the Merrill Lynch investment and become a global sovereign wealth fund.”……………………………….Full Article: Source

NZ Super Fund’s Orr says responsible investing now a groundswell globally

Posted on 26 November 2014 by VRS  |  Email |Print

NZ Superannuation Fund chief executive Adrian Orr said long-term and responsible investing has become a groundswell globally, rather than a ripple. Speaking at today’s Responsible Investment Association of Australasia conference in Auckland, Orr said globally it had reached a tipping point where more asset owners were now having regard for responsible investment drivers such as environmental, social and governance issues.
The latest report from the RIAA showed in 2013 assets managed responsibly in New Zealand increased by 20 percent to just over $27 billion, around 40 percent of total assets under management, much of that due to the Super Fund………………………………..Full Article: Source

Bajaj Corp sells 8% stake to Temasek: Sources

Posted on 26 November 2014 by VRS  |  Email |Print

Bajaj Corp has sold 8 percent stake in the company to Temasek, CNBC-TV18 learns from sources. The stake sale has been done to close equity funding for Bajaj Corp’s 2,000 MW power plant in Uttar Pradesh.
This power plant has been based on BHEL’s technology and is expected to go live in January next year, sources add. It is further learnt that any further stake sale is unlikely………………………………..Full Article: Source

Yonhap: KIC to retain BOA stake for time being: chief

Posted on 25 November 2014 by VRS  |  Email |Print

The head of South Korea’s sovereign wealth fund on Monday apologized for its botched investment in Bank of America (BoA) but stressed it plans to retain the stake for the time being to minimize losses. “I believe that it was a poor investment and apologize to the people of Korea. I promise that Korea Investment Corp. (KIC) will remember the painful lesson from the Merrill Lynch investment and become a global sovereign wealth fund,” KIC chief executive Ahn Hong-chul said.
KIC has been facing strong backlash from opposition party lawmakers for its US$2 billion investment in Merrill Lynch in 2008 before the financial firm was merged with BoA…………………………………Full Article: Source

QIA building top-end hotel portfolio worldwide

Posted on 24 November 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund, Qatar Investment Authority (QIA), is building a global top-end hotel portfolio. QIA displayed strong interests in global hotels and tourism facilities last year, according to a new report.
“QIA confirmed its appetite for trophy-assets and luxury brands by acquiring via its specialised subsidiary Constellations Hotels Holding nothing less than the InterContinental flagship hotels in London and New York; l’Hotel du Louvre in Paris; and the Four Seasons Hotel in Florence. In a separate 100m pounds deal it also acquired the freehold from the Crown Estate, the property company that controls the assets of the Crown in the UK…………………………………..Full Article: Source

Is the Future Fund falling behind the divestment curve?

Posted on 24 November 2014 by VRS  |  Email |Print

When questioned in Parliament on Thursday about why the Future Fund has not divested from fossil fuels, Chairman Peter Costello was quick to respond that the fund’s only mandate is to deliver investment returns.
Costello’s response is typical of a generation of money managers who don’t yet appreciate the enormous risk that climate change poses to financial markets. So far, it has fallen largely upon the shoulders of environmentalists to draw investors’ attention to this risk, however the issue is now rapidly spreading to the senior levels of global money managers like Goldman Sachs and the world’s largest fund manager, BlackRock…………………………………..Full Article: Source

QIA plans to invest up to $20bn in ‘Greater Asia’ over five years

Posted on 21 November 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund plans to invest up to $20bn in “Greater Asia” over the next five years as part of portfolio diversification, said Qatar Investment Authority chief executive officer, HE Ahmed al-Sayed.
“In the region we plan to invest (initially) between $15bn and $20bn… it could be more… it could be less. It depends on the time. The timing and market situation will govern our final decision to execute investments. But we have a good appetite. That will give us good diversification of our portfolio as a global fund,” al-Sayed, also the Minister of State told reporters on the sidelines of the 6th annual meeting of the International Forum of Sovereign Wealth Funds (IFSWF) at the Ritz-Carlton………………………………….Full Article: Source

Qatar in talks to fund UK high-speed rail plan

Posted on 21 November 2014 by VRS  |  Email |Print

Qatar is interested in investing billions of dollars in infrastructure around the north of England, the Financial Times reported on Tuesday. The report claimed the Qatari royal family has informed British ministers it is interested in investing in infrastructure opportunities around the new HS2 high-speed rail line, which will link London to Birmingham, then Leeds and Manchester.
The opportunity was discussed last month when the Emir, Sheikh Tamim bin Hamad Al Thani, met with British Prime Minister David Cameron. “The Prime Minister … encouraged the Emir to consider more opportunities across the country, particularly the government’s plan to establish a Northern Powerhouse by connecting our great Northern cities and the development of high speed rail,” a statement issued after the Emir’s visit said………………………………….Full Article: Source

SWFs’ Doha meeting adopts three-year strategic plan to enhance investments

Posted on 21 November 2014 by VRS  |  Email |Print

World’s leading sovereign wealth funds (SWFs) yesterday unanimously agreed upon a “Doha Agreement”, adopting a three-year strategic plan to ensure free flow of long-term global capital and strong real returns for the progeny; even as they asked recipient countries to be more transparent.
Moreover, 21 more countries are planning to establish SWFs; these were disclosed by the International Forum of SWFs (IFSWF), which held its sixth annual meeting here, hosted by the Qatar Investment Authority (QIA). The strategic plan, agreed by IFSWF, seeks to leverage those strengths to work towards becoming an important global reference on the governance, investment and operational practices of IFSWF-member SWFs………………………………….Full Article: Source

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