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Sovereign Wealth Funds Briefing - Category | Market more

Sovereign wealth funds to become largest private equity allocator

Posted on 27 July 2016 by VRS  |  Email |Print

Sovereign wealth funds could overtake public pension funds as the most significant source of private equity capital in the next five years, David Rubenstein, co-founder and co-chief executive officer of Carlyle Group told attendees at the Private Equity Exclusive conference in Chicago on Monday.
U.S. public pension funds have historically been the biggest source of capital for private equity firms and today account for 30% to 35% of capital, Mr. Rubenstein. However, sovereign wealth fund assets are growing rapidly, expected to increase to $9 trillion by 2020 from $1 trillion in 2004, Mr. Rubenstein said, citing PricewaterhouseCoopers report on asset management in 2020………………………………………..Full Article: Source

Goldman Sachs’ 1MDB woes deepen on conflict of interest lawsuit

Posted on 27 July 2016 by VRS  |  Email |Print

Former client EON Capital claims fraudulent misrepresentations over Malaysian bank takeover. Goldman Sachs’ troubles stemming from the 1MDB scandal deepened on Tuesday, as the bank was sued for more than $500m by a shareholder of a former client claiming fraudulent misrepresentations and breaches of fiduciary duties.
The lawsuit, which was filed in New York State court, concerns advice that Goldman gave to a Malaysian bank, EON Capital, which was subject to a December 2009 bid by a domestic rival, Hong Leong Bank, to create the country’s fourth-biggest lender by assets………………………………………..Full Article: Source

Goldman Accused of Betrayal to Curry Malaysian PM’s Favor

Posted on 27 July 2016 by VRS  |  Email |Print

Goldman Sachs Group Inc. has another Malaysia problem. The New York-based bank, already under scrutiny by regulators over its fundraising for the embattled 1Malaysia Development Bhd, is now accused in a lawsuit of selling out a client to curry favor with Prime Minister Najib Razak, who controlled the billion-dollar state fund.
Goldman and former managing director Tim Leissner allegedly betrayed their duties as financial adviser of EON Capital Bhd, which was taken over by Hong Leong Bank Bhd. for $1.7 billion in May 2011. Goldman used EON’s confidential information to help the bank buy EON on the cheap knowing that Najib’s brother served as a board member and another brother chaired the investment firm advising the bank, Primus Pacific Partners 1 LP said in the complaint………………………………………..Full Article: Source

Deloitte Resigns as 1MDB Auditor

Posted on 27 July 2016 by VRS  |  Email |Print

The Malaysian government investment fund says Deloitte Touche Tohmatsu resigned in February. The departure of a second auditor for a Malaysian government investment fund is putting focus on another global company that apparently failed to raise questions about what investigators are calling a large-scale fraud.
The fund, 1Malaysia Development Bhd. or 1MDB, said Tuesday that its auditor, Deloitte Touche Tohmatsu Ltd., resigned in February. An earlier dispute over the fund’s accounts in 2013 led to the firing of 1MDB’s previous auditor, KPMG, according to a Malaysian auditor general’s report last year………………………………………..Full Article: Source

Singapore Vows Tougher Stance After 1MDB Dents Reputation

Posted on 26 July 2016 by VRS  |  Email |Print

Singapore’s regulatory chief vowed stronger action to address the reputational damage caused by anti-money laundering lapses at banks in the city linked to the troubled state investment fund 1Malaysia Development Bhd.
The shortcomings uncovered by the Monetary Authority of Singapore’s more than 15-month probes into fund flows linked to 1MDB are “simply unacceptable” and the city’s reputation has “taken a dent” as a result, the central bank’s Managing Director Ravi Menon said at a press briefing Monday………………………………………..Full Article: Source

Is 1MDB Malaysia’s defining moment?

Posted on 26 July 2016 by VRS  |  Email |Print

The US government has accused Malaysian Prime Minister Najib Abdul Razak of having received hundreds of millions of US dollars into his personal banking accounts from money stolen from 1MDB. Najib has not refuted the allegation.
The US government has also accused officials and associates of 1MDB of having stolen more than US$3.5 billion from 1MDB, to which Najib has also failed to deny. What is most devastating to the prime minister personally is that among the millions of such stolen money in his banking accounts is the famous US$681 million which he claimed to be a donation from the Saudi royal family………………………………………..Full Article: Source

US says $1bn siphoned from 1MDB fund to finance gambling debts, private jet

Posted on 22 July 2016 by VRS  |  Email |Print

The plot behind the 1Malaysia Development Berhad (1MDB) state fund scandal has thickened with the intervention of the United States government. Gambling debts in Las Vegas, a private jet, and funding for Oscar-nominated movie ‘The Wolf of Wall Street’ are among the opulent expenses allegedly bankrolled by the Malaysian sovereign wealth fund in a scandal involving billions of dollars of taxpayers’ money.
Amid colossal allegations of transborder graft and money laundering, the U.S. Department of Justice is looking to seize more than $1 billion in assets that federal officials say were misappropriated from the 1Malaysia Development Berhad (1MDB) wealth fund………………………………………..Full Article: Source

Swiss seize Monet and Van Gogh paintings in 1MDB case

Posted on 22 July 2016 by VRS  |  Email |Print

The Swiss authorities, acting on United States request, have seized three rare paintings linked to an investigation into the scandal-hit Malaysian state fund 1MDB. A spokeswoman for the Federal Office of Justice said the paintings were Vincent van Gogh’s La maison de Vincent à Arles and Claude Monet’s Saint-Georges Majeur and Nympheas avec Reflets de Hautes Herbes.
She was confirming a report by the Neue Luzerner Zeitung newspaper. “The operation is not over yet so we will not comment at the moment on the location of the paintings,” she said………………………………………..Full Article: Source

How Will Goldman Sachs Stock Be Affected by Malaysian Fund Scandal?

Posted on 22 July 2016 by VRS  |  Email |Print

Goldman Sachs (GS) is under fire this morning after the U.S. government alleged that Malaysian sovereign wealth fund 1MDB diverted billions of company dollars from bond sales issued by Goldman Sachs for the personal use of 1MDB officials, Reuters reports.
In 2012 and 2013, Goldman assisted the fund in raising $6.5 billion in three separate bond sales to invest in energy projects and real estate. The investments were meant to boost the Malaysian economy………………………………………..Full Article: Source

3 Things Investors Should Know About Temasek’s Bid For SMRT Corporation Ltd

Posted on 22 July 2016 by VRS  |  Email |Print

SMRT Corporation Ltd has made two huge announcements in short order. Last Friday, the land transport services provider revealed that it plans to sell its rail operating assets to the Land Transport Authority (LTA) for S$1 billion. The sale, if it happens, would effectively change the company’s business model from asset-heavy to asset-light. It’s a deal that may change SMRT Corporation’s business significantly – you can find out more about the possible changes here.
Then, yesterday, SMRT Corporation announced that its largest shareholder, Temasek Holdings, has released a buyout offer. Temasek, which is one of the Singapore government’s investing arms, currently owns 54% of SMRT Corporation’s shares and it wants to buy the remaining 46% stake………………………………………..Full Article: Source

Temasek-backed Godrej Agrovet weighs IPO

Posted on 22 July 2016 by VRS  |  Email |Print

Adi Godrej is considering an IPO of his group’s animal-feed unit as business thrives in the biggest milk-drinking country in the world. Billionaire Adi Godrej is considering an initial public offering (IPO) of his group’s animal-feed unit, the largest producer in India, as business thrives in the biggest milk-drinking country in the world.
An IPO of the unit, which is partly owned by Singapore’s Temasek Holdings Pte, would be the first such deal for the 119-year old conglomerate — whose businesses range from locks to soaps, appliances and real estate — since 2010. It would also come as rising stock prices increase the number of initial share sales in the world’s fastest-growing major economy………………………………………..Full Article: Source

Sovereign funds take a liking to Indian IPOs

Posted on 22 July 2016 by VRS  |  Email |Print

Primary markets are emerging as a new route to raise exposure to Indian equities for sovereign wealth funds (SWFs). Prominent SWFs such as Abu Dhabi Investment Authority (ADIA), Kuwait Investment Authority (KIA), Government Pension Fund Global (GPFG) of Norway and Monetary Authority of Singapore (MAS) invested in about 30% of the initial public offerings (IPOs) in the past 18 months. Narayana Hrudayalaya, InterGlobe Aviation, Parag Milk, VRL Logistics and Alkem Labs were some of the prominent investment targets.
In Parag Milk Foods IPO of May 2016, SWFs of Abu Dhabi and Norway cumulatively subscribed to 8% of the total book and nearly 18% of the total anchor book………………………………………..Full Article: Source

In Properties Targeted in 1MDB Case, a High-End House Tour

Posted on 21 July 2016 by VRS  |  Email |Print

The properties allegedly bought with funds misappropriated from a Malaysian investment fund would make for a stunning house tour of high-end real estate in New York and Los Angeles.
Besides flashy real estate, the U.S. government alleges that money from the fund, known as 1Malaysia Development Bhd. or 1MDB, was used to buy a $35 million private jet and a stake in EMI Music Publishing………………………………………..Full Article: Source

Temasek to buy out public transport operator SMRT for S$1.18b

Posted on 21 July 2016 by VRS  |  Email |Print

Public transport operator SMRT looks set to be privatised after Temasek Holdings announced a S$1.18 billion buyout offer at S$1.68 a share Wednesday (Jul 20). The offer from the Singapore state investment firm values SMRT at approximately S$2.565 billion, Temasek and SMRT said in a media statement. Once the acquisition is completed, SMRT will become a wholly-owned subsidiary of Temasek and will be delisted from the Singapore Exchange.
In their statement, Temasek and SMRT said that privatisation will provide SMRT with “greater flexibility to focus on its primary role of delivering safe and high quality rail service, without short term pressures of being a listed company, in the midst of its transition to a new regulatory framework under the new rail financing framework”………………………………………..Full Article: Source

Temasek Offers S$1.2 Billion to Buy Out SMRT 16 Years After IPO

Posted on 21 July 2016 by VRS  |  Email |Print

Singapore state investment firm Temasek Holdings Pte offered S$1.2 billion ($880 million) to buy out SMRT Corp., 16 years after the company became the first Asian subway operator outside of Japan to list shares.
The S$1.68 a share proposal, an 8.7 percent premium from the last traded price, values the rail operator at S$2.6 billion. The price is fair and final, Temasek President Chia Song Hwee said in Singapore Wednesday after the buyout, first reported by Bloomberg News this week, was made public………………………………………..Full Article: Source

Abu Dhabi Wealth Fund Says Long-Term Investment Gains Fell

Posted on 21 July 2016 by VRS  |  Email |Print

The Abu Dhabi Investment Authority, one of the world’s biggest sovereign wealth funds, said its long-term gains dropped in 2015. The fund’s 20-year annual rate of return slowed to 6.5 percent at the end of 2015, from 7.4 percent a year earlier, it said in its annual review. Over three decades, annual returns fell to 7.5 percent from 8.4 percent.
The sovereign wealth fund doesn’t disclose how much money it manages for the government. ADIA, as the fund is known, is bringing more investment management in-house and putting less assets in index-tracking funds as it seeks higher returns………………………………………..Full Article: Source

Adia renews faith in China and India’s growth prospects amid market tumult

Posted on 21 July 2016 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (Adia) remains focused on China’s and India’s long-term growth prospects, even after emerging markets were hit last year by a slowing global economy. The emirate’s main sovereign wealth fund said in its annual review, released on Wednesday, that long-term returns declined last year amid volatility in markets, although it said the lower rates were mainly caused by statistical averaging over the long periods it uses to measure returns.
The fund’s managing director, Sheikh Hamed bin Zayed, pointed to the continued long-term growth prospects of China and India, despite economic headwinds and the need for huge structural reforms undertaken by the former in the past couple of years………………………………………..Full Article: Source

Irish sovereign fund to take on construction risk amid housing push

Posted on 20 July 2016 by VRS  |  Email |Print

Ireland’s €7.9bn sovereign wealth fund will be asked to step in and take on construction risk as the country’s government attempts to ramp up the size of its house-building programme.
The Ireland Strategic Investment Fund’s (ISIF) role was confirmed as Simon Coveney, minister for housing and planning, launched the government’s Action Plan for Housing, which seeks to build 47,000 new homes with the help of €5.3bn in state assistance………………………………………..Full Article: Source

Temasek may take SMRT private: Sources

Posted on 20 July 2016 by VRS  |  Email |Print

Three days after SMRT Corp unveiled the long-awaited details of a new rail plan that will turn it into an asset-light operator, its majority owner Temasek Holdings is doing the math for a possible takeover of the transport firm.
Sources say Temasek, which owns 54 per cent of SMRT, is mulling taking the company private. Speculation - as it remains so for now - pushed the rumour mill into overdrive on Monday………………………………………..Full Article: Source

Ipic-Mubadala merger does not have to follow a template

Posted on 19 July 2016 by VRS  |  Email |Print

Ipic and Mubadala, two major Abu Dhabi investment funds, have been mandated to merge. The outcome does not have to be a single company. In this article I will look at an innovative option for the Ipic-Mubadala merger to result in more than one company and how such a multi-result merger can support Abu Dhabi’s Economic Vision 2030.
I recently wrote in detail on what strategies the NBAD-FGB merger could take and in a subsequent article I delved into a major challenge such a merger might face. The detail was possible because both NBAD and FGB are listed companies and have strong disclosure requirements………………………………………..Full Article: Source

Temasek set to unveil buyout deal for struggling S’pore rail operator

Posted on 19 July 2016 by VRS  |  Email |Print

Singapore state investor Temasek Holdings is set to announce a deal this week to buy out the remaining nearly 46 percent of SMRT Corp that it doesn’t already own, two sources with knowledge of the matter said.
The deal caps a turbulent period for Singapore’s main rail operator. SMRT has come under heavy criticism in recent years after a series of train breakdowns led to public outcry in a country long known for an efficient and reliable public infrastructure. Temasek already owns 54.5 percent of SMRT, Thomson Reuters data shows………………………………………..Full Article: Source

Khazanah eyeing RM3.2b control of Hong Leong Financial Group

Posted on 19 July 2016 by VRS  |  Email |Print

Khazanah Nasional Bhd, the sovereign wealth fund, is reportedly considering a RM3.2 billion bid for control of billionaire Quek Leng Chan’s Hong Leong Financial Group, according to Bloomberg News. Quek, chairman of Hong Leong Financial, is Malaysia’s fifth richest person with a net worth of USD4.3 billion, according to the Bloomberg Billionaires Index.
Khazanah, which had net asset value of RM109 billion in investments at the end of December, may take Hong Leong Financial’s 70 per cent stake in Hong Leong Assurance Bhd and its 65 per cent stake in Hong Leong MSIG Takaful Bhd, according to sources. Japan’s Mitsui Sumitomo Insurance Co bought 30 per cent of Hong Leong Assurance in 2010. The next year, it bought 35 per cent of Hong Leong MISG………………………………………..Full Article: Source

Kuwait maintains its investment perspective

Posted on 18 July 2016 by VRS  |  Email |Print

Mixed sentiments keep emerging about the commercial and business sector in Kuwait. On a positive note, the much-awaited expansion of the airport is underway. Conversely, in an unprecedented move, a key rating agency assigned a negative outlook for the economy due to the phenomenon of low oil prices for two years now.
An essential part of the comfortable rankings relates to Kuwait’s strong external assets. The SWFI puts the value of the country’s sovereign wealth fund as managed by Kuwait Investment Authority (KIA) at $592 billion. Kuwait set up KIA in the 1950s, the first SWF within the GCC………………………………………..Full Article: Source

India’s sovereign wealth fund identifies first eight projects for investments

Posted on 15 July 2016 by VRS  |  Email |Print

India’s maiden sovereign wealth fund National Investment and Infrastructure Fund (NIIF) has identified the first eight projects it plans to invest in. These include the Konkan Railways project, a power transmission project in the north region, and a few road projects, said a senior official of India Infrastructure Finance Co. Ltd (IIFCL).
There has been a lot of interest from foreign investors for NIIF, but actual cheques are taking longer to come in, IIFCL’s deputy managing director Sanjeev Kaushik told Mint over the phone. IIFCL, which was appointed as the interim investment adviser to NIIF in December, has advised investments in a total of eight projects for the fund. Of these, the governing council in its meeting last month approved investment in the existing Konkan Railway project, Kaushik said………………………………………..Full Article: Source

Mixed martial arts: Singapore investor Temasek enters the ring

Posted on 15 July 2016 by VRS  |  Email |Print

An arm of Singapore state giant Temasek Holdings is investing in Asian mixed martial arts (MMA) promoter One Championship, which is planning a share offer within three years, company officials said on Thursday (July 14).
One Championship chairman Chatri Sityodtong said an “eight-figure” US dollar sum will be injected into the Singapore-based firm by a consortium led by Heliconia Capital Management, a wholly-owned subsidiary of Temasek. “Potentially, our plan in the next two to three years is to go public through an IPO (initial public offering),” he told AFP………………………………………..Full Article: Source

Singapore’s Temasek looks to Silicon Valley for growth

Posted on 14 July 2016 by VRS  |  Email |Print

Temasek Holdings is increasingly turning its attention to U.S. technology companies in search of new growth, after the value of the Singapore government-owned investment company’s assets dropped for the first time in seven years amid China’s economic slowdown and cheaper oil prices.
The shift toward companies in areas such as financial technology and the so-called “sharing economy” is evident in Temasek’s annual performance report, released on July 7. In the year ended March, the sovereign wealth fund made new investments in online accommodation booking service provider Airbnb and digital payment platform PayPal, both based in California. Temasek also increased its investment in Beijing-based ride-hailing service Didi Chuxing, China’s answer to U.S.-based Uber………………………………………..Full Article: Source

Temasek subsidiary punches into MMA with ‘eight-figure’ One Championship deal

Posted on 14 July 2016 by VRS  |  Email |Print

Grappling with its first portfolio decline in 7 years, Singapore’s state-owned investment company Temasek Holdings is looking to mixed martial arts (MMA) to score a knockout amid a challenging economic climate.
Temasek’s wholly-owned subsidiary Heliconia Capital Management is leading a consortium to invest in Singapore-based MMA promoter One Championship. While the value of the deal was not disclosed, it was reported to be worth a “significant eight-figure sum” and could see One Championship grow beyond the $1 billion valuation mark………………………………………..Full Article: Source

Brexit unlikely to hit GCC sovereign wealth funds – Moody’s

Posted on 13 July 2016 by VRS  |  Email |Print

The UK’s vote to leave the European Union (EU) will have a “negligible” impact on GCC sovereigns’ credit ratings, Moody’s said in a statement on Tuesday. The rating agency said GCC sovereign wealth funds have limited trade exposure to the UK and their sheer size offers resilience against potential fluctuations in the value of their assets.
Its latest report, ‘Sovereigns – Brexit and the Gulf Cooperation’, said that sovereign wealth fund portfolios are typically large and well diversified, allowing them to absorb the impact of asset price and exchange rate movements associated with Brexit………………………………………..Full Article: Source

Kuwaiti investments in the UK may hit by Brexit

Posted on 13 July 2016 by VRS  |  Email |Print

Kuwaiti investments in the United Kingdom are expected to be hit by the United Kingdom’s decision to leave the European Union, although the impact of Brexit is expected to be “short-term and not large”, Undersecretary Khalifa Hamada said.
The KIA, through its London-based subsidiary Kuwait Investment Office, is understood to have substantial investments in the Britain, in particular in real estate and infrastructure. It was part of the consortium which bought London City Airport earlier this year………………………………………..Full Article: Source

Singapore’s Temasek Holdings Leads Investors in ONE Championship Startup

Posted on 13 July 2016 by VRS  |  Email |Print

Singapore’s state investment firm Temasek Holdings Pte Ltd is leading a round of investors in an Asian mixed martial arts startup. Heliconia Capital Management Pte. Ltd., an arm of Temasek that invests in Singapore-based small- and medium-size businesses, is heading a consortium pumping tens of millions of dollars into local mixed martial arts promoter ONE Championship, ONE’s founder and chairman Chatri Sityodtong said in an interview.
Details of the deal are expected to be announced Wednesday. ONE Championship is seeking to tap the sport’s growing popularity in Asia, and the deal comes on the heels of Ultimate Fighting Championship’s sale to a group led by U.S.-based talent agency WME-IMG for around $4 billion, highlighting the appeal of what has quickly become a mainstream entertainment event………………………………………..Full Article: Source

Wealth fund’s investment circuit breaker

Posted on 13 July 2016 by VRS  |  Email |Print

A leading Philippine power-generation corporation has effectively been blacklisted from access to the world’s biggest sovereign wealth fund, Norway’s Government Pension Fund Global (GPFG), an oil fund with assets of US$847.6 billion.
Aboitiz Power Corp. (APC), a subsidiary of Aboitiz & Company, is one of 52 firms which have been sidelined by the fund’s operator, Norges Bank Investment Management (NBIM), the investment arm of the Norwegian central bank………………………………………..Full Article: Source

Azerbaijan’s SOFAZ exploring possibilities of investing in Turkey

Posted on 13 July 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ is exploring the possibilities of making investments in Turkey, Shahmar Movsumov, executive director of SOFAZ, said. “We constantly explore the possibilities of investing in the countries with favorable conditions,” said Movsumov. “Currently, we are exploring the opportunities for making investments in Turkey. It is a neighboring country and is of interest for us.”
The geography of SOFAZ’s asset allocation is as follows: 60.46 percent - European countries, 20 percent - North America, 3.62 percent - Australia, 11.80 percent - Asia and the Pacific region, 0.63 percent - the Middle East, 0.27 percent - South America, 3.21 percent - international financial institutions, 0.01 percent – Africa………………………………………..Full Article: Source

SOFAZ not affected by Brexit - executive director

Posted on 13 July 2016 by VRS  |  Email |Print

Investments of State Oil Fund of Azerbaijan (SOFAZ) in pound sterling remained unchanged after Brexit referendum, SOFAZ Executive Director Shahmar Movsumov on Tuesday. He said SOFAZ was not affected by Brexit.
“The main reason for investing 5% of the portfolio in pounds sterling is diversification. We are attaching great importance to it. We save our money in different currencies for the portfolio not to be affected by the changes. Many people say the pound sterling devalued. However, if the pound sterling devalued, it means other currency overvalued. Here we mean dollar. Fifty percent of our portfolio is at USD. Thus, the portfolio overvalued 50%………………………………………..Full Article: Source

Singapore Wealth Funds Keen To Invest In India

Posted on 12 July 2016 by VRS  |  Email |Print

Prominent wealth funds of Singapore have shown keen interest in investing in India, a senior Indian official said. “Lot of interest and deep appreciation in Singapore about reforms and policy initiatives in India,” Economic Affairs Secretary Shaktikanta Das said in a tweet about his ongoing visit to Singapore.
Describing his meeting with Singapore government-owned wealth funds, Das said in another tweet: “Had very good meetings with GIC, Temasek and other investors in Singapore. Big interest to invest in India continues.”……………………………………….Full Article: Source

Tishman Speyer teams up with Qatari fund for $700M LIC project

Posted on 12 July 2016 by VRS  |  Email |Print

Tishman Speyer is moving ahead with the construction of a 1.1 million s/f office and retail project in Long Island City. For the project, the company has formed a partnership with Qatari Diar, a sovereign wealth fund based in Lusail.
The site, located in 28-10 Queens Plaza South, is expected to have two 27-story towers connected by a four-story podium containing a food hall, restaurant and parking garage. Currently, more than 800,000 s/f of office space has been pre-leased for the $700M project. Shared office provider WeWork, which has agreed to take 250,000 s/f of space, is set to be the project’s anchor tenant………………………………………..Full Article: Source

How Brexit impacted the sovereign wealth fund universe (Video)

Posted on 11 July 2016 by VRS  |  Email |Print

Investments during the first half of 2016 dropped 42 percent on-year to $73 billion, says Michael Maduell of the Sovereign Wealth Fund Institute.……………………………………….Full Article: Source

NZ Super Fund names head of reinsurance mandates

Posted on 11 July 2016 by VRS  |  Email |Print

The New Zealand Superannuation Fund has named a new head of its reinsurance mandates, with Rishab Sethi taking the position of manager for listed mandates and external partnerships.
After four years as a senior research economist at the Reserve Bank of New Zealand, Sethi had a one-year stint at the NZ Super Fund in 2008 as a strategist before leaving to complete a Masters in Public Administration. He rejoined the sovereign wealth fund in 2014 as a senior adviser………………………………………..Full Article: Source

Sovereign investors’ M&A deals fall 26 percent by value in second quarter

Posted on 11 July 2016 by VRS  |  Email |Print

Sovereign investors, including wealth funds, made $14.1 billion worth of acquisitions in the second quarter, down 26 percent from the first three months of the year but underpinned by a rebound in real estate deals. Data compiled by Thomson from Reuters shows sovereign investors, a category that can include everything from state pension funds to oil-backed investment vehicles, were involved in 39 deals between April and June, six fewer than in the first quarter.
The single biggest deal was the $4.5 billion funding round for Ant Financial Services Group, an affiliate of China’s biggest e-commerce company, Alibaba Group Holding, which attracted China’s CIC Capital, amongst others………………………………………..Full Article: Source

Singapore’s Temasek assets decline on China rout

Posted on 08 July 2016 by VRS  |  Email |Print

Temasek Holdings Pte’s portfolio declined for the first time in seven years as its holdings, a quarter of which are in Chinese equities, were battered by last year’s market rout. The value of Temasek’s stakes decreased 9% to S$242bil (US$179bil) in its fiscal year ended March 31.
Assets fell from a record S$266bil in the prior fiscal year and dropped for the first time since the 12 months ended March 2009. As global growth has slowed and the markets have been whipsawed by volatility, Temasek is reshaping its portfolio and tempering expectations for future returns………………………………………..Full Article: Source

‘Short-term’ brexit volatility had ‘fairly modest’ impact: Temasek

Posted on 08 July 2016 by VRS  |  Email |Print

Temasek said on Thursday (July 7) that market volatility post-Brexit had only a “fairly modest” impact on its portfolio, and that it was not overly concerned about the short-term gyrations in the markets, given that its focus is on the long term.
As of March 31 this year, Europe accounted for about 8 per cent of the firm’s S$242 billion portfolio. It did not reveal its direct exposure to the United Kingdom, but said that it was “even smaller” and predominantly through its holdings in Standard Chartered bank………………………………………..Full Article: Source

Temasek’s S$30 Billion in Deals Span Tire Makers to Pharma Firms

Posted on 08 July 2016 by VRS  |  Email |Print

Temasek Holdings Pte disclosed that it made S$30 billion ($22 billion) in new investments in the 12 months through March, matching the previous year’s pace, while divesting of a record S$28 billion as it re-balances its portfolio. Here are some of the investments made by Singapore’s state firm during the period:
Increased position in U.S. logistics sector: $450 million investment in Univar Inc., a distributor of commodity and specialty chemicals………………………………………..Full Article: Source

Sahara sells 3 hotel stakes to Qatar Investment for $1.6bn

Posted on 08 July 2016 by VRS  |  Email |Print

Qatar Investment Authority has agreed to buy Indian diversified group Sahara’s stake in three overseas hotels for a whopping $1.6 billion, said a report. According to a report on CNBC-TV18, the agreement to buy stakes in Grosvenor House (London), New York Plaza and Dream Downtown (NY) nears a close after a 24-month long negotiation period.
Out of the total money, Sahara is expected to pay $995 million to Reuben brothers, its prime lender. The Indian group is looking to move the Supreme Court tomorrow for its approval………………………………………..Full Article: Source

Abu Dhabi mergers have similar causes but different purposes

Posted on 07 July 2016 by VRS  |  Email |Print

In response to two recent Abu Dhabi mergers – National Bank of Abu Dhabi with FGB (a combined market value of US$30 billion) and the International Petroleum Investment Company with Mubadala Development Company (with combined assets of $127bn) – one may wonder: why, and why now?
While the prevailing state of oil prices has been correctly characterised as a driving factor, a deeper look exposes subtle yet important differences between the two mergers, with implications for what lies in the future. Traditionally, the primary function of a sovereign wealth fund is to transfer wealth from current to future generations in a low-risk manner by buying assets from across the entire globe………………………………………..Full Article: Source

Russia to empty one of its sovereign funds next year

Posted on 06 July 2016 by VRS  |  Email |Print

Russia will exhaust one of its two sovereign funds next year, according to a finance ministry proposal seen by Reuters, having by that point run through $87 billion since the beginning of 2014 to fill holes in the budget left by a slump in oil prices.
Russia will also spend over the next three years about a third of another of its funds on covering the budget shortfall, the proposal showed, even though that fund was originally intended to cover long-term deficits in the pension system. The finance ministry proposal, which contains recommendations on spending, has been submitted to the government for its consideration but not yet approved………………………………………..Full Article: Source

Qatari banks’ rising foreign liabilities not an ‘immediate concern’, says EIU

Posted on 06 July 2016 by VRS  |  Email |Print

Rapidly rising foreign liabilities of commercial banks in Qatar will not be an “immediate concern” as those can be “easily covered” by the sizeable assets held by the central bank (QCB) and the Qatar Investment Authority (sovereign wealth fund), shows a report by The Economist Intelligence Unit.
A widening gross external financing shortfall, amid low hydrocarbons revenue and tightening domestic liquidity, poses risks to the sovereign rating. Nevertheless, large stocks of foreign reserves at the Qatar Central Bank (QCB) and the Qatar Investment Authority (QIA) the sovereign wealth fund), should enable Qatar to honour its debt obligations even over a “prolonged period” of low oil prices………………………………………..Full Article: Source

President should address nation on planed Sovereign Wealth Fund

Posted on 06 July 2016 by VRS  |  Email |Print

The recent announcement of the confirmation of a major oil reserve for Guyana via a second well is welcome news for all Guyanese, it gives us all hope that the ‘better life’ will soon materialize.
It also gives us all worry that the culture of corruption that has ensnared our political class from the first day of independence to this present day will suck our hopes and dreams down its bottomless vortex and we become a nation of few mega-rich families and a massive class of under-privileged citizens. Our every effort must be to seek to avoid this fate………………………………………..Full Article: Source

Temasek invests in French asset manager Tikehau Capital Partners

Posted on 05 July 2016 by VRS  |  Email |Print

Singapore’s state-owned investment firm Temasek Holdings Pte has invested in French asset manager Tikehau Capital Partners as it expands investments in Europe. Temasek was among investors injecting a total of 510 million euros ($567 million) in Tikehau Capital Partners and its holding company as part of two capital increases, the Paris-based firm said in a statement.
The Singapore investor now holds a stake of more than 5 percent in the holding company, Tikehau Capital Advisors. Julien Sanson, a spokesman for Tikehau, declined to comment on the exact stake of Temasek in both firms. Stephen Forshaw, a spokesman for Temasek, confirmed the transaction and declined to comment further………………………………………..Full Article: Source

CICC, China Investment Securities Said to Be in Merger Talks

Posted on 05 July 2016 by VRS  |  Email |Print

Investment bank China International Capital Corp. and brokerage China Investment Securities Co., firms with 186 billion yuan ($28 billion) of assets last year, are in talks on a possible merger, people familiar with the matter said.
China Investment Securities is 100 percent owned by Central Huijin Investment Ltd., according to the brokerage’s website. Huijin, a unit of China’s sovereign wealth fund, owns 28.4 percent of CICC, according to CICC’s website………………………………………..Full Article: Source

A Look at Bahrain’s International and Domestic Investment Strategies

Posted on 04 July 2016 by VRS  |  Email |Print

Started in 2006, Bahrain’s $11.2 billion sovereign wealth fund (whose name means “assets” in Arabic) has endured numerous restructuring programs. To reduce operating costs and increase its ability to procure top international talent to the firm, Mumtalakat has cut jobs. In 2009 the firm’s CEO, Mahmood Hashim al-Kooheji, brought in consultants from McKinsey and Co., who produced advantageous results in highlighting and mitigating inefficiencies, as well as fostering greater transparency.
Through the help of the advisers, Mumtalakat spotted government corruption and bribery, which amounted to $400 million in lost profits of one of the firm’s top producers, Alba. Last year, the sovereign wealth fund received a ten out of ten in the Linaburg-Maduell Transparency Index, which surveyed 52 funds with only 11 receiving top scores………………………………………..Full Article: Source

Maltese passport fund falls short of ‘committed’ figure

Posted on 04 July 2016 by VRS  |  Email |Print

Citizenship sales have so far generated €76 million for a special development fund, a figure far short of the €1.5 billion that passport scheme operators Henley and Partners have said are already ‘committed’.
Regulations set out that 70 per cent of the contributions received by Identity Malta from the IIP shall be paid to the National Development and Social Fund. Acting as a sovereign wealth fund, the money it holds will not be included as income for public finance purposes………………………………………..Full Article: Source

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