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Sovereign Wealth Funds Briefing - Category | Market more

GIC adopts Omgeo ALERT to boost operational efficiency

Posted on 07 May 2015 by VRS  |  Email |Print

Omgeo, a wholly owned subsidiary of The Depository Trust & Clearing Corporation (DTCC) and the global standard for post-trade efficiency, announced that Singapore’s sovereign wealth fund GIC Private Limited (GIC) has adopted Omgeo ALERTSM, the industry’s largest and most compliant web-based global database for the maintenance and communication of account and Standing Settlement Instructions (SSIs). The firm adopted the solution to deliver further improvements in post-trade operational efficiency.
GIC wanted to enhance its enterprise trade lifecycle platform as part of a two-stage process. Phase one involved the importing of SSIs into ALERT, with a focus on fixed income instructions, in the third quarter of 2014. GIC is now embarking on the second phase of that project: loading SSIs for equity trades into ALERT. This is scheduled to go live in the second quarter of 2015. (Press Release)

Abu Dhabi-Backed Falcon Sees ‘Years of Gains’ for Europe Stocks

Posted on 07 May 2015 by VRS  |  Email |Print

Falcon Private Bank, the wealth manager owned by an Abu Dhabi sovereign wealth fund, says European stocks have “years of gains” to come as the region rolls out its stimulus plan, while the U.S. bull run is almost over.
Markets in the euro zone may take a “short pause” before the influx of liquidity from the European Central Bank’s quantitative easing program prompts increases, David Pinkerton, the Zurich-based chief investment officer for Falcon, said Wednesday in an interview at Bloomberg’s Dubai offices………………………………………..Full Article: Source

5 Risks Keeping Sovereign Wealth Funds Up at Night

Posted on 07 May 2015 by VRS  |  Email |Print

Sustained low prices of oil are affecting the funding input levels of commodity-based sovereign wealth funds. These current fossil fuel prices are economically squeezing countries like Russia, Saudi Arabia, Venezuela and Iran in harmful ways. Economists, pundits, energy CEOs and policymakers are trying to get a grasp on the long-term price of oil. Lao Tzu, a 6th Century BC Chinese Poet, wrote, “Those who have knowledge, don’t predict. Those who predict, don’t have knowledge.”
Commodity-based sovereign funds such as the Abu Dhabi Investment Authority (ADIA) and Kuwait Investment Authority (KIA), may face increased withdrawals to fund deepening fiscal deficits, while cash infusions have shrunk for wealth funds like Norway’s Government Pension Fund Global………………………………………..Full Article: Source

GIC in talks to buy stake in Brazil’s Rede D’Or for $980 million

Posted on 06 May 2015 by VRS  |  Email |Print

GIC Pte, Singapore’s sovereign wealth fund, is in talks to buy a stake worth as much as 3 billion reais ($980 million) in Brazilian medical-care provider Rede D’Or Sao Luiz SA, people with knowledge of the matter said.
GIC may acquire as much as 14 percent of the hospital operator, in equal shares from the company’s founding Moll family and Grupo BTG Pactual, the people said, asking not to be identified because the information is private. GIC could announce a deal for the stake within a month, the people said………………………………………..Full Article: Source

Raphael Arndt, CIO Future Fund on Coping with High Prices

Posted on 06 May 2015 by VRS  |  Email |Print

Founded in 2006, Australia’s A$117 billion ($93.4 billion) Future Fund is designed both to bolster government finances by offsetting future public-sector superannuation liabilities from 2020. It was funded by budget surpluses and the proceeds from the privatization of Telstra, a formerly government-owned telecommunications company.
Sovereign Wealth Center’s Victoria Barbary talked with CIO Raphael Arndt about what lies ahead for Future Fund. This is the first of a two part interview. The transcript has been edited for grammar space and context………………………………………..Full Article: Source

SOFAZ to sign MoU with Italian Strategic Fund

Posted on 06 May 2015 by VRS  |  Email |Print

“Memorandum of Understanding between the State Oil Fund of Azerbaijan (SOFAZ) and Italian Strategic Fund is about to be completed”, Italian Minister of Economy and Finance Pier Carlo Padoan told APA-Economics.
According to him, the document will provide implementation of several new long-term investment projects, as well as cooperation between both Funds. The document is expected to be signed in September, 2015………………………………………..Full Article: Source

Qatar’s SWF announces US push

Posted on 06 May 2015 by VRS  |  Email |Print

Qatar’s sovereign wealth fund (SWF), which manages about US$256 billion in assets, has announced that it will establish an office in the US as it increasingly seeks investment deals in the country. The Doha-based Qatar Investment Authority (QIA) said it will open an office in New York City on the back of its growing US investment portfolio, according to the Gulf state’s US ambassador, Mohammed bin Jaham Al Kuwari.
The SWF, which is heavily internationally focussed, did not give any further details on when the office would open, nor the extent of the assets it is currently managing in the US. The QIA has, however, sharpened its focus on international investments of late. In October last year, its private equity arm, Qatar Holding, agreed to purchase a 20% equity stake in Hong Kong mall operator Lifestyle International Holdings (LIH) for around US$616 million………………………………………..Full Article: Source

Malaysia Airlines begins selling off fleet

Posted on 05 May 2015 by VRS  |  Email |Print

Malaysia Airline System (MAS), parent of Malaysia Airlines, is already seeing significant changes to operations and fleet, following the May 1 start date for new CEO Christoph Mueller, who is former CEO of Aer Lingus.
MAS has been deciding whether to sell or lease its six A380s for some time, as Khazanah and Mueller concentrate on pushing through what Khazanah called “a recalibration and rationalization in aggregate capacity by more than 10% … as [we focus] on more profitable domestic and regional routes.”……………………………………….Full Article: Source

Temasek unit, Abu Dhabi fund said to plan sale of UAE firm Dunia

Posted on 05 May 2015 by VRS  |  Email |Print

Abu Dhabi fund Mubadala Development Co. and a unit of Singapore’s Temasek Holdings are among shareholders exploring the sale of U.A.E. consumer finance company Dunia, four people with knowledge of the plan said.
The shareholders, which also include Abu Dhabi-listed Waha Capital PJSC and family-owned Arenco Group, are seeking to hire a financial adviser for the sale shortly, according to the people. A full sale of Dunia may fetch about US$500 million, two of the people said, adding a formal process was yet to begin………………………………………..Full Article: Source

Qatar wealth fund to open New York office as US portfolio grows

Posted on 04 May 2015 by VRS  |  Email |Print

The Qatar Investment Authority, the Gulf Arab state’s acquisitive sovereign wealth fund, is setting up an office in New York to manage its growing portfolio in the United States, according to remarks carried by the state news agency.
The fund is one of the most active sovereign investors in the world, snapping up stakes in everything from real estate to luxury goods. It led a consortium this year to secure control of the company that owns London’s Canary Wharf financial district in a $4 billion deal………………………………………..Full Article: Source

Qatar Wealth Fund to Open New York Office Amid Hunt for Deals

Posted on 04 May 2015 by VRS  |  Email |Print

Qatar Investment Authority, the Gulf state’s sovereign wealth fund, is setting up an office in New York as it scouts for deals in the U.S., according to the country’s state news agency. The Doha-based fund, which controls more than $100 billion in investments, will open an office in New York to manage its growing investment portfolio in the country, Mohammed bin Jaham Al Kuwari, the agency cited Qatar’s ambassador to the U.S. as saying, at a banquet where he addressed representatives of 15 American companies operating in the Gulf Arab country.
Qatar, one of the world’s richest countries, will continue spending on projects such as health, infrastructure, railways and the 2022 Football World Cup, which it is hosting, the ambassador said………………………………………..Full Article: Source

New World Sells Hotels to Abu Dhabi Venture for $2.4 Billion

Posted on 04 May 2015 by VRS  |  Email |Print

New World Development Co., controlled by the family of Hong Kong billionaire Cheng Yu-tung, said it will sell three hotels to a joint venture with Abu Dhabi Investment Authority for HK$18.5 billion ($2.4 billion).
The developer will receive HK$10 billion in cash for the sale, it said in a statement to the Hong Kong stock exchange. A unit of New World will hold 50 percent of the venture, with Abu Dhabi Investment owning the rest, it said. The hotels include the Grand Hyatt in Hong Kong………………………………………..Full Article: Source

Oman fund to help finance Spanish companies abroad

Posted on 04 May 2015 by VRS  |  Email |Print

Oman’s largest sovereign wealth fund and Spain’s Compania Espanola de Financion del Desarollo have agreed to establish a fund, initially 200 million euros ($220 million) in size, to finance Spanish firms, the Omani fund said on Wednesday. The State General Reserve Fund (SGRF) said it had reached the agreement after talks between the Omani and Spanish governments. The SGRF is estimated to have assets of about $13 billion, according to the Sovereign Wealth Fund Institute, which tracks the industry.
Compania Espanola de Financion del Desarollo is a state- and private-owned firm which provides financial support to private direct investment projects in foreign countries where Spain has interests………………………………………..Full Article: Source

South Korea’s sovereign-wealth fund is bidding to buy a stake in Los Angeles Dodgers

Posted on 30 April 2015 by VRS  |  Email |Print

Efforts by South Korea’s sovereign-wealth fund to buy a minority stake in the Los Angeles Dodgers have helped put the Major League Baseball team’s ownership in play, said people with knowledge of the situation. “A number of organizations have expressed an interest in investing,” said a person close to the Dodgers, adding that “as of this point, none have gone beyond the point of discussion.”
The talks come at a time when private-equity practitioners and sovereign-wealth funds are increasingly interested in owning major-league sports franchises. Lucrative broadcast rights, merchandising opportunities, sponsorship revenue, and prospects to expand the teams’ presence in Asia help drive demand for such deals………………………………………..Full Article: Source

Norway Wealth Fund Has Record Gain as ECB Feeds Stock Surge

Posted on 30 April 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund gained a record 401 billion kroner ($53 billion) in the first quarter after unprecedented monetary stimulus drove up the value of its equity holdings. The 5.3 percent increase in the first three months of the year was driven by a 7.5 percent rise in its stock portfolio, the $900 billion fund said in Oslo on Wednesday. Its bonds returned 1.6 percent while real estate rose 3.1 percent.
“There were big price movements in the European market,” Yngve Slyngstad, chief executive officer of the fund, said in a statement. “After a weak return on European stocks last year, the market rallied in the first quarter.”……………………………………….Full Article: Source

Oman fund, Spanish firm to finance Spanish companies abroad

Posted on 30 April 2015 by VRS  |  Email |Print

Oman’s largest sovereign wealth fund and Spain’s Compania Espanola de Financion del Desarollo have agreed to establish a fund, initially 200 million euros ($220 million) in size, to finance Spanish firms, the Omani fund said on Wednesday.
The State General Reserve Fund (SGRF) said it had reached the agreement after talks between the Omani and Spanish governments. The SGRF is estimated to have assets of about $13 billion, according to the Sovereign Wealth Fund Institute, which tracks the industry………………………………………..Full Article: Source

Temasek raises bets on Indian pharma sector

Posted on 30 April 2015 by VRS  |  Email |Print

Temasek Holdings (Pvt.) Ltd, an investment firm based in Singapore, has invested more than $600 million to buy stakes in three Indian drug makers over the past six months, raising its bets on the Indian pharmaceutical industry that has given investors among the highest returns over the past few years.
Two of these deals were in publicly traded firms—Sun Pharmaceutical Industries Ltd and Glenmark Pharmaceuticals Ltd. The third investment was in Intas Pharmaceuticals Ltd. The three transactions were ranked among the top five private equity (PE) deals in the pharmaceutical sector over the last five years, according to data from researcher VCCEdge………………………………………..Full Article: Source

Netherlands and Azerbaijan do business

Posted on 29 April 2015 by VRS  |  Email |Print

The strength of Dutch–Azerbaijani relations was acknowledged during the inaugural Netherlands–Azerbaijan Business Forum on 23 April at the Maastricht School of Management (MSM), organised by MSM, The Province of Limburg, The European Azerbaijan Society (TEAS), AZPROMO and the Netherlands Council for Trade Promotion (NCH). Around 250 delegates attended the event, including more than 50 Azerbaijani business leaders drawn from all sectors of the country’s economy.
Shahmar Movsumov, CEO, State Oil Fund of the Azerbaijani Republic (SOFAZ), explained: “Natural resources can be both a blessing and curse. Azerbaijan is currently passing through its second oil boom. SOFAZ has created around $40bn of revenues, and is a global investor in all asset classes.”……………………………………….Full Article: Source

Sovereign Wealth Funds Spice Up Deal Activity in Asia

Posted on 28 April 2015 by VRS  |  Email |Print

Sovereign wealth funds continue to expand their reach in a variety of transactions across Asia. The Qatar Investment Authority (QIA) is competing against Goldman Sachs on the acquisition of the Keangnam Hanoi Landmark Tower. The 72-story tower is the tallest building in Hanoi and is worth an estimated US$ 1 billion. Korea-based Keangnam Enterprises, Ltd is the developer and seller of the tower.
Goldman Sachs’ offer would be assuming project-financing debt of US$ 900 million and formation of a special purpose vehicle to take over control of the tower. The QIA’s offer is to acquire the whole tower for US$ 800 million in cash. The New York office of Colliers International is the lead manager of the sale. Major companies such as KPMG, Standard Chartered and PwC have reserved space to setup offices in the tower………………………………………..Full Article: Source

GIC raises stake in Mumbai IT park Nirlon to 63.9% for $90M through open offer

Posted on 24 April 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has raised its holding in public listed Mumbai IT park firm Nirlon Ltd to 63.92 per cent by acquiring more shares in the open offer for Rs 568.32 crore ($90 million). This completes a rare control-style deal for a sovereign wealth fund in India. GIC had previously struck a deal to buy up to 39.2 per cent stake in the company last December last year. This was conditional upon the acceptance ratio in the open offer.
It had made an open offer to buy 28.4 per cent stake from the public and said if it is able to garner over 21.7 per cent stake through this route, it would buy only 5 per cent stake from the promoters for Rs 100 crore besides 29 per cent stake from two institutional investors for Rs 584 crore at Rs 222 a share each………………………………….Full Article: Source

Khazanah Nasional targets EU markets, new industries for investments

Posted on 24 April 2015 by VRS  |  Email |Print

Sovereign investment firm Khazanah Nasional Bhd will look into European markets, as well as “newer industries” locally to invest this year on. A new region Khazanah Nasional is looking to venture into is the UK and Europe, which it will open up a London office for by the end of this year. The firm already has four international offices in big cities like Beijing, Mumbai, Istanbul and San Francisco.
Managing director Azman Mokhtar said the firm is ready to open an office in London looking at opportunities post the currency crisis.”Previously, we didn’t think we were ready for that market but after the Eurozone crisis, we are ready to open our London office. It will be later in the year,” he said, “That loop of offices is complete for now, we don’t think we need more for the area we want to cover currently.”…………………………………Full Article: Source

Khazanah firm on its turnaround plan for MAS

Posted on 24 April 2015 by VRS  |  Email |Print

Khazanah Nasional Bhd, the owner of Malaysia Airlines, is firm on its decision to reduce the number of the airline’s employees by 6,000 people, even as it gives more time to incoming chief executive officer (CEO) Christoph Mueller to choose his team. The plan to retrench more than 25% of MAS’ workers is being protested by the airline’s workers’ unions.
“We have done our part in assessing MAS staff and the new company (newco) slated to be officially established on July 1 which will only need 14,000 workers in relation to our own projection of fleet size and operation as planned………………………………….Full Article: Source

MAS job cuts needed to avoid yet another rescue, says Khazanah

Posted on 24 April 2015 by VRS  |  Email |Print

The downsizing at Malaysia Airlines Bhd (MAB) cannot be avoided if the new national carrier is to be sustainable, controlling shareholder Khazanah Nasional Bhd said today amid complaints by staff unions.
According to Khazanah, MAB must trim 6,000 jobs to reach a more sustainable 14,000 headcount, but has tried its best to do the exercise properly and humanely by offering jobs elsewhere. “The point of NewCo is going to a new ship with a size and business practices that can work and be sustained,” Khazanah managing director Tan Sri Azman Mokhtar told reporters at the sidelines of Invest Malaysia 2015, using another name for MAB………………………………….Full Article: Source

What China Share Rally? Best-Performing China Fund Expects More

Posted on 24 April 2015 by VRS  |  Email |Print

China’s shares are at a seven-year high and Blackstone Group LP is warning of stock-market excess. The manager of the best-performing long-only fund investing in the nation’s equities disagrees and says there’s more to come.
Small capitalization stocks, whose prices have as much as tripled, will see a major correction “in the years ahead,” said Wong, who worked for Singapore’s sovereign wealth fund GIC Pte from 1981 until 1985. Founded in 1995, APS serves institutional investors such as pension funds, endowments, foundations, family offices, funds of funds, and sovereign wealth funds, Wong said. More than half of the investors are based in North America, with the remainder evenly split between Asia, Europe and Australia, he said………………………………….Full Article: Source

Samruk Kazyna Plans to Open Subsidiary in Silicon Valley

Posted on 24 April 2015 by VRS  |  Email |Print

The Samruk Kazyna Sovereign Wealth Fund plans to establish a subsidiary in Silicon Valley, California. A working group consisting of the heads of a number of Samruk Kazyna companies, led by Chairman of the organisation Umirzak Shukeyev, visited companies of Silicon Valley on April 9-10, where they were acquainted with the work of Stanford University, Berkeley, as well as such well-known innovative companies as Tesla Motors, SolarCity and other start-up companies.
“The sides discussed the possibility of cooperation in the development of clean energy, gas chemistry, transport, medicine, agriculture, education and IT. In particular, they considered the possibility of creating Samruk Innovation, a company based in Silicon Valley,” said a Samruk Kazyna press release………………………………….Full Article: Source

Take that campaign promise to the bank — in 2020

Posted on 24 April 2015 by VRS  |  Email |Print

On Wednesday, Premier Paul Davis announced that in 2020 the government will start a “Generations Fund” — basically, a sovereign wealth fund, with a name that was probably tested in focus groups.
I’ve been asking about a sovereign wealth fund for at least four years now, and I remember then finance minister Tom Marshall always insisting that the government must first pay down the debt to a manageable level, and then put some of the oil revenue into a savings account………………………………….Full Article: Source

Norway SWF is primed to become Africa’s biggest investor

Posted on 22 April 2015 by VRS  |  Email |Print

World’s biggest Sovereign Wealth Fund (SWF), Norway’s Government Pension Fund Global (GPFG), last year added five African states to the number of countries it approves as marketplaces for trading in equities. It is keen to take advantage of the pace of economic growth across Africa to garner profitable returns on equity investments.
The Norwegian fund’s investment in Africa has now been extended to Kenya, Tunisia, Ghana, Mauritius and Nigeria. Its investments in Nigeria, as at the end of 2014 was 497 million kroner ($63 million), which included stocks in companies listed on the Nigerian Stock Exchange (NSE). The fund’s investment is highest in Zenith Bank, Nigeria’s largest bank, at 23.5 percent. This is followed by another lender, Guaranty Trust Bank at 21 percent. Access Bank has so far received the least investment from the wealth fund (3.2 percent)…………………………………..Full Article: Source

CEO of biggest wealth fund turns to Africa for profit growth

Posted on 20 April 2015 by VRS  |  Email |Print

Norway’s sovereign-wealth fund is pouring a bigger share of its cash into Africa in a bid to capture some of the fastest growth in the global economy. The $890 billion fund, which is already in South Africa, is spreading its investments to the north and west of the continent in search of opportunities, Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which manages the fund, said in an interview on Wednesday at Bloomberg’s headquarters in New York.
“What’s new is that we have crept north - Kenya and Nigeria - we’re looking at quite a few west African countries,” he said. “In North Africa, for quite some time, we’ve been invested in Morocco and Egypt, there are also some investments coming in Tunisia.”…………………………………….Full Article: Source

World’s Biggest Wealth Fund Says Monetary Risks at Historic High

Posted on 20 April 2015 by VRS  |  Email |Print

For Norway’s $890 billion sovereign-wealth fund, the investment risks stemming from monetary policy have never been greater. Like most global investors, the Oslo-based fund is trying to navigate uncharted terrain as central banks across the world push out stimulus to protect economic growth and spur inflation.
“Monetary policy does affect pricing in today’s market to such an extent that monetary policy itself has been a risk you have to watch,” Yngve Slyngstad, chief executive officer of the fund, said in an interview on Wednesday at Bloomberg’s New York headquarters. “Investors are focused more on monetary policy changes than has been generally the case, than at any time, as far as I can remember.”…………………………………….Full Article: Source

ADIA sells 6.6% Deutsche Annington stake after stock climbs

Posted on 20 April 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA) sold its 6.6 per cent stake in Deutsche Annington Immobilien SE, according to an emailed statement. ADIA, the world’s second-biggest sovereign wealth fund, sold 23.5 million shares there were offered at €30.80 (Dh121.01, $32.91) to market price each, according to a term sheet obtained by Bloomberg.
Deutsche Annington is Germany’s biggest residential landlord, with 350,000 apartments in cities including Berlin and Dortmund. Bank of America Corp was the sole bookrunner on the share sale, the terms showed. Sovereign wealth funds are among the biggest investors in Germany’s housing sector. They have sought to take advantage of rising home prices and rents……………………………………..Full Article: Source

Ritz locks farmers out, hands CWB keys to Bunge and Saudi king’s fund

Posted on 20 April 2015 by VRS  |  Email |Print

Agriculture Minister Gerry Ritz announced that G3, a joint venture owned by two foreign corporations, Bunge and the Saudi investment company SALIC, is the beneficiary of CWB privatization. With this, the Conservative government has accomplished the biggest transfer of wealth away from farmers in the history of Canada,” said Jan Slomp, National Farmers Union (NFU) President.
“The CWB’s physical assets, its commercial relationships, and its good name have all been given away. The “buyers” of the CWB actually get to keep the $250 million pittance they are “paying” for it. Bunge’s 2014 sales totalled $58 billion and multi-billion dollar SALIC is a subsidiary of the Saudi sovereign wealth fund, PIF……………………………………..Full Article: Source

Norway’s Sovereign Fund retains 2.6 % investment in Italy

Posted on 16 April 2015 by VRS  |  Email |Print

Norway’s Sovereign Wealth Fund manager and Central Bank governor, Oystein Olsen, said he intended to keep investments in Italy unchanged. “At the moment we’re not planning to increase our investments in Europe, which will remain at 40 percent of our global investments”, Mr Olsen told reporters in Rome.
He spoke after he was asked if he intended to increase investments in Italy. He was in Italy to attend the workshop promoted by the FeBAF, the Italian Banking, Insurance and Finance Federation, at the headquarters of ABI, the Italian Banking Association………………………………………..Full Article: Source

Kazakhstan may establish an innovation company in the Silicon Valley

Posted on 16 April 2015 by VRS  |  Email |Print

Kazakhstan’s Sovereign Wealth Fund Samruk-Kazyna is considering establishment of a daughter company, Samruk Innovation, in the Silicon Valley in the United States. The Fund reported that the possibility of creating such a company was considered within the framework of the visit of working group leaders of a number of companies Samruk-Kazyna to Silicon Valley under the chairmanship of the Fund Umirzak Shukeyev held on April 9-10.
The working group familiarized itself with the work of Stanford University, University of California, Berkeley, as well as such well-known innovative companies, as Tesla Motors, SolarCity and other start-up companies. The sides discussed the possibilities of cooperation in the development of clean energy, gas chemistry, transport, medicine, agriculture, education, and IT………………………………………..Full Article: Source

Temasek is single-largest foreign investor in Chinese banks: report

Posted on 16 April 2015 by VRS  |  Email |Print

Singapore’s Temasek Holdings is the single-largest foreign investor in Chinese banks, data from SNL Financial showed on Tuesday. And this comes as Chinese banks have outdone their peers in the region, according to indices from SNL. Its SNL China Bank index gained 34.71 per cent in the one year through March 31, far outperforming the SNL Asia-Pacific Bank index, which rose 7.56 per cent. These regional banks would include those from Japan and Australia.
The data on foreign investments in Chinese banks includes all classes of publicly traded common shares, but excludes investments reported before Jan 1, 2014. The market value of each investor’s stake in a company was calculated based on the March 31, 2015 closing price………………………………………..Full Article: Source

Singapore’s GIC to acquire Shriram SEZ

Posted on 16 April 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC is in advanced talks to acquire Shriram Group’s nearly 2 million sqft IT SEZ in Chennai for Rs 860 crore ($136 million), marking its third big-ticket commercial office purchase in the last five months in India.
With this deal, GIC would have cumulatively invested about Rs 2,000 crore in buying office spaces in Mumbai, Bengaluru and Chennai since December last year. These investments exclude GIC’s commitments in the country’s residential real estate market. Big global peers Blackstone and Brookfield Asset Management bought commercial assets collectively worth over $ 2 billion in the country last year………………………………………..Full Article: Source

Sovereign Wealth Funds Increase CRE Allocations, Falling Oil Prices or Not

Posted on 16 April 2015 by VRS  |  Email |Print

In spite of concerns about how falling oil prices might affect sovereign wealth funds’ investment strategies, the funds’ have been steadily growing their assets under management well into March of this year, according to a report from London-based research firm Preqin. In fact, the proportion of sovereign wealth funds investing in real estate assets has grown to 59 percent in 2014, from 54 percent the year before.
For example, when private equity giant Blackstone closed its $14.5 billion real estate fund last month, the New Mexico State Investment Council was among the investors, with a $75 million stake. The fund manages the state’s permanent endowment fund and counts 19 government agencies among its clients………………………………………..Full Article: Source

Angola Sets Up Five Venture Capital Funds Worth $1.4 Billion

Posted on 15 April 2015 by VRS  |  Email |Print

The Angola Sovereign Fund has set up five venture capital funds for high-growth industries and the economic and social development of Angola and sub-Saharan Africa, the fund said in a statement sent to Macauhub.
The statement, issued Monday, said that the five funds have starting capital of US$ 1.4 billion to be invested in venture capital investments over the next three to five years in projects in the mining, logging, agriculture and health sectors. The fifth fund, called “Mezzanine Fund” is intended to support entrepreneurs where financing through traditional debt does not apply, providing US$250 million over the next five years………………………………………..Full Article: Source

Sovereign wealth funds driving Middle East deals

Posted on 15 April 2015 by VRS  |  Email |Print

Barclays sees local firms and sovereign wealth funds driving Middle East deals after advising on about $15 billion (R180bn) of equity and mergers and acquisition (M&A) transactions in the first quarter.
“M&A will continue to be active and there will be some interesting outbound deals,” Makram Azar, the chairman for the bank in the Middle East and North Africa, said. “Unlike in the past, sovereign wealth funds from the region will look at more return-generating assets such as… infrastructure, favouring annual cash returns.”……………………………………….Full Article: Source

Angola’s sovereign fund allocates further $1.4 billion to Africa projects

Posted on 14 April 2015 by VRS  |  Email |Print

Angola’s sovereign wealth fund said on Monday it was allocating $1.4 billion to five new vehicles that will invest in sectors such as mining, timber, agriculture and healthcare within the country and elsewhere in Africa.
The Fundo Soberano de Angola (FSDEA) said vehicles focused on mining, timber and agriculture will each have $250 million to invest, while a healthcare fund will have $400 million. A fifth Mezzanine Investment fund is being set up to provide financing to entrepreneurs who do not have access to traditional debt funding, with a further $250 million, the FSDEA said………………………………………..Full Article: Source

New Mexico State Investment Council’s Vince Smith On Diversification

Posted on 14 April 2015 by VRS  |  Email |Print

The New Mexico State Investment Council, with more than $20 billion in assets under management, is the second largest sovereign wealth vehicle in the U.S. It traces its history back to land grants in the late nineteenth century. Today it oversees four separate funds and a widely diversified asset base.
The [New Mexico State Investment] Council is still in the midst of a very large, multi-year redeployment of its assets, we’re moving from a publicly-traded portfolio — mostly equity investments — to a more diversified portfolio mix, with a large allocation to the private markets. Previously the Council had been very heavily equity-oriented; the exposure to stocks was as much as 85 percent………………………………………..Full Article: Source

Temasek is single-largest foreign investor in Chinese banks: report

Posted on 14 April 2015 by VRS  |  Email |Print

Singapore’s Temasek Holdings is the single-largest foreign investor in Chinese banks, data from SNL Financial on Tuesday showed. The data includes all classes of publicly traded common shares, but excludes investments reported before Jan 1, 2014. The market value of each investor’s stake in a company was calculated based on the March 31 closing price.
Temasek emerged top with a combined stake valued at US$18 billion, driven by holdings in three Chinese banks. It has a 6 per cent stake in China Construction Bank Corp, worth US$12 billion as at March 31. It is also invested in Industrial & Commercial Bank of China, holding US$5.76 billion of shares………………………………………..Full Article: Source

New bank will not enhance China’s global power at America’s expense

Posted on 13 April 2015 by VRS  |  Email |Print

When China set up its sovereign-wealth fund in 2007, many feared that it would take control of strategic resources, acquire sensitive technology and disrupt global financial markets. But the China Investment Corporation, which controlled US$575 billion (S$787 billion) last year, has been struggling with losses, partly because of mismanagement, according to China’s National Audit Office.
Beijing set up a sovereign-wealth fund and bought US Treasuries because it needed to find a safe and profitable way to invest its vast foreign-exchange reserve, which kept expanding thanks to the country’s growing exports. China’s move today to set up the AIIB is yet another rational response to the economic challenges it faces at the moment………………………………………..Full Article: Source

The 1MDB: Tragedy or farce?

Posted on 13 April 2015 by VRS  |  Email |Print

The Malaysian government’s ambitious investment experiment, 1Malaysia Development Bhd (1MDB), has turned into a political and financial minefield for Prime Minister Datuk Seri Najib Razak and his ministers. In recent months, the debt-laden sovereign wealth fund has made domestic and international headlines with explosive allegations of corruption, widespread mismanagement of public funds, serious political misbehaviour and opaque corporate dealings.
The relentless attacks on 1MDB – which have included public disclosures of confidential e-mail trails highlighting opaque transactions for highly dubious investments – have not only come from the country’s feisty opposition, but also former prime minister Tun Dr Mahathir Mohamad, who in recent days has publicly called for Najib’s resignation………………………………………..Full Article: Source

3 Large Sovereign Fund Cross-Border Bids Shaping the Industry

Posted on 10 April 2015 by VRS  |  Email |Print

Bidders are quietly lining up as Australia’s New South Wales (NSW) government pushes forward on a plan selling leases on select infrastructure. NSW Premier Michael “Mike” Baird won a late March election, giving him a mandate to move forward with the lease sales. Essentially, the state government seeks to lease A$ 20 billion worth of infrastructure which includes nearly 50% of its electricity network, port leases and a water desalinization plant.
The sales process has been in the works. In 2014, NSW government hired Deutsche Bank and UBS Group AG as financial advisers regarding the sale of a 99-year lease to operate Transgrid, Australia’s biggest electricity transmission network. Other distribution network leases for sale are Ausgrid (50.4%) and Endeavour Energy (50.4%)………………………………………..Full Article: Source

Investment Corporation of Dubai takes stake in luxury US and South African hotels

Posted on 10 April 2015 by VRS  |  Email |Print

Investment Corporation of Dubai, the emirate’s main investment vehicle, has strengthened its presence in the global hospitality business with the acquisition of stakes in three luxury hotels. ICD has purchased the W Hotel in Washington DC, a majority holding in the Mandarin Oriental in New York, and a minority in the One & Only resort in Cape Town, South Africa.
The purchase price was not announced. “Building on our strong domestic growth in the hospitality and tourism sectors, this strategic move reinforces ICD as a serious contender in the global luxury hospitality space,” said Mohammed Al Shaibani, the executive director and chief executive of ICD………………………………………..Full Article: Source

Promise and Pitfalls for Sovereign Wealth Funds

Posted on 09 April 2015 by VRS  |  Email |Print

Sovereign wealth funds are turning to smart beta strategies to boost returns and lower volatility. Here’s what managers should know about the potential and perils for the popular strategy. Enhanced indexes, alternative beta, strategic beta, or factor-based investing. Whatever the term of art, smart beta is drawing sovereign wealth funds and other institutions.
MSCI, the New York-based index and research firm, estimates assets devoted to such strategies have risen from $20 billion just five years ago to $500 billion today. The word “bubble” springs to mind. Relax — but not too much. Smart beta, after all, is not an asset class, like the internet stocks of 2000 or subprime real estate in 2008………………………………………..Full Article: Source

Advent teams up with Temasek to scoop up Crompton’s consumer business

Posted on 09 April 2015 by VRS  |  Email |Print

A group of investors led by bulge-bracket private equity firm Advent International along with Temasek, the investment company of the government of Singapore, are set to buy the consumer business of Crompton Greaves, said multiple sources who are directly involved in the deal.
They will be acquiring the business from billionaire Gautam Thapar and his family, the promoters of the diversified Avantha Group, ending months of negotiations that saw several large global investors and PE funds as well as domestic competitors jostle for the asset. ET reported March 5 that Advent had emerged as frontrunner. A formal announcement is expected as early as next week………………………………………..Full Article: Source

Gulf Air losses to fall sharply

Posted on 08 April 2015 by VRS  |  Email |Print

Gulf Air’s losses this year are expected to be less than a quarter of what they were just three years ago. Transportation and Telecommunications Minister Kamal Ahmed told MPs yesterday that was due to a major restructuring exercise launched in early 2013.
Ahmed was responding to a question on the losses of Bahrain Mumtalakat Holding Company, Bahrain’s sovereign wealth fund which oversees a portfolio of 36 companies including Gulf Air. The minister, who is also Mumtalakat chairman, also urged MPs to stop trying to portray the sovereign wealth fund as ‘corrupt’……………………………………….Full Article: Source

KIC’s possible investment in LA Dodgers called into question

Posted on 07 April 2015 by VRS  |  Email |Print

A possible deal by South Korea’s sovereign wealth fund to buy some 19 percent of the Los Angeles Dodgers baseball team could entail much risk and end in failure, market observers said Monday. The Korea Investment Corporation (KIC), which manages assets entrusted by South Korea’s central bank, has been in talks to buy the stake from U.S.-based investment firm Guggenheim Partners, according to sources familiar with the matter.
The KIC will make a final decision on the Dodgers investment in the near future as it recently completed due diligence, said the sources. According to the sources, the deal includes sharing profits from admissions and broadcasting rights with Guggenheim Partners and a guarantee for an annual return rate of more than 3 percent, they noted………………………………………..Full Article: Source

NSIA to invest N7.8bn in infrastructure

Posted on 07 April 2015 by VRS  |  Email |Print

The Nigerian Sovereign Investment Authority plans a $40m (N7.88bn) investment to improve the infrastructural facilities in critical sectors such as education, healthcare and environment. This was confirmed to our correspondent by the Managing Director, NSIA, Mr. Uche Orji, on Friday.
The NSIA is the agency of government currently managing the $1bn Sovereign Wealth Fund which was set up in 2012 by the Federal Government. It is made up of three funds – the Future Generation Fund, the Nigeria Infrastructure Fund and the Stabilisation Fund. Orji said “We all know healthcare is a very important focus for Nigeria; and some of the Memorandums of Understanding we have signed with hospitals, we will activate a few of them in 2015………………………………………..Full Article: Source

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