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Russian Minister Calls for Wealth-Fund Boost to Stem Ruble Gains

Posted on 03 July 2015 by VRS  |  Email |Print

Russia should start replenishing its Reserve Fund with proceeds from higher oil prices to stem the ruble’s appreciation, according to Finance Minister Anton Siluanov. The Finance Ministry proposes buying foreign currency for one of its two sovereign wealth funds if oil prices rise higher than $70 per barrel, Siluanov told reporters Thursday.
President Vladimir Putin has backed a weak-ruble policy as a lifeline to Russian producers struggling with a contracting economic amid U.S. and European Union sanctions over Ukraine. A rally in the ruble, the world’s best performer this year after losing almost half of its value in 2014, slowed after the Bank of Russia resumed foreign-currency purchases for its international reserves in mid-May………………………………………..Full Article: Source

Malaysia fund’s $4.5 bln rescue may weigh on Abu Dhabi’s IPIC

Posted on 03 July 2015 by VRS  |  Email |Print

The $4.5 billion rescue of a struggling Malaysian state fund is good news for the government in Kuala Lumpur but will load Abu Dhabi’s International Petroleum Investment Co with extra debt that may worry investors in its bonds.
Last month IPIC, an investment company owned by Abu Dhabi’s government, came to the aid of Malaysia’s loss-making 1MDB, whose poor record and $11.6 billion of debt are a source of political pressure on Prime Minister Najib Razak. IPIC agreed to provide 1MDB with $1 billion in cash, allowing the Malaysian fund to repay a $975 million loan to a global banking syndicate………………………………………..Full Article: Source

SWFs in Latin America and Middle East consider their first hedge fund allocations

Posted on 03 July 2015 by VRS  |  Email |Print

For any hedge fund manager, winning a mandate from a sovereign wealth fund (SWF) is the Holy Grail. These are the biggest institutional investors on the planet and also offer, potentially, the stickiest capital given their multi-year investment horizons.
One should therefore take encouragement from the fact that SWF allocations to hedge funds have steadily risen from 31 per cent in 2013 to 33 per cent today, according to the latest research by Preqin in their Hedge Fund Spotlight June report. But the fact remains that SWFs remain under-allocated to the asset class; 60 per cent do not invest at all. That is quite a contrast to the way they use other alternative assets………………………………………..Full Article: Source

Overseas investors demand new deal on fees to expand Heathrow

Posted on 03 July 2015 by VRS  |  Email |Print

Chinese, Qatari, Canadian and Spanish infrastructure investors could be the big winners from the recommendation by Sir Howard Davies to build a new £18bn runway at Heathrow. A handful of the world’s biggest investors have been buying stakes in Heathrow Airport in recent years, in anticipation of permission being granted to expand the London airport’s capacity.
Heathrow’s investors include an arm of the Chinese government, one of Canada’s biggest pension funds, the Singaporean sovereign wealth fund and the Qatari sovereign wealth fund, as well as the main pension fund of British universities………………………………………..Full Article: Source

SWFs emerge as winners of Airport Commission decision

Posted on 02 July 2015 by VRS  |  Email |Print

Chinese, Qatari, Canadian and Spanish infrastructure investors are set to become the big winners from the recommendation by Sir Howard Davies to build a new £18 billion runway at Heathrow.
Heathrow’s investors include an arm of the Chinese government, one of Canada’s biggest pension funds, the Singaporean sovereign wealth fund and the Qatari sovereign wealth fund, as well as the main pension fund of British universities. But the investors want a 20-year deal on the landing fees that the airport can charge owners, if they are to commit the billions of pounds of debt and equity that will be required to build Britain’s first new runway for more than 70 years………………………………………..Full Article: Source

ENGIE and China Investment Corporation (CIC) Signed MoU

Posted on 01 July 2015 by VRS  |  Email |Print

On the occasion of Chinese Premier Li Keqiang’s visit to France, Gérard Mestrallet, Chairman and CEO of ENGIE, signed a MOU with Ding Xuedong, Chairman and CEO of China Investment Corporation (CIC) in Paris. Premier Li and French Prime Minister Manuel Valls were present at the signing ceremony. Through their new agreement, ENGIE and CIC reinforce their cooperation in the following areas:
Co-investment in large energy projects, particularly renewable energy projects in fast developing countries; Cooperation in new technologies and in energy efficiency fields, especially in China. The cooperation between ENGIE and CIC started in 2011. It was notably marked by the establishment of a fruitful shareholder relationship in ENGIE’s exploration and production activities in which CIC holds a 30% ownership interest. (Press Release)

Wealth Funds Back More Startups, Locking in Matterport and Proterra

Posted on 01 July 2015 by VRS  |  Email |Print

Mountain View-based Matterport, a company that focuses on virtual reality, raised US$ 30 million in Series C financing from a group of investors. Leading the round was Qualcomm Ventures, a venture unit of Qualcomm Incorporated. Other investors are Singapore’s GIC Private Limited, Lux Capital, DCM Ventures, Felicis Ventures, Greylock Partners, Navitas Capital, AMD Ventures, AME Cloud Ventures, iGlobe Partners, Rothenberg Ventures, Luminari Capital, Sling Media founder Blake Krikorian, and Crate & Barrel founder Gordon Segal.
Matterport’s technology can be viewed on virtual reality platforms like Oculus Rift, Samsung Gear VR, and Google Cardboard, as well as through its browser-based application, called 3D Showcase………………………………………..Full Article: Source

Abu Dhabi Fund Boosts Mining Deals With Trafigura Venture

Posted on 30 June 2015 by VRS  |  Email |Print

Abu Dhabi-backed investment fund Mubadala Development Co. is buying a 50 percent stake in Trafigura Beheer BV’s Spanish copper business as part of an agreement to create a joint venture to invest in base metals mining.
Mubadala will purchase the stake in the commodity trader’s flagship Minas de Aguas Tenidas operations, which include three mines and processing facilities in southern Spain, the companies said Monday in a joint statement. Mubadala paid about $500 million, according to a person familiar with the matter, who asked not to be named because the price isn’t public………………………………………..Full Article: Source

Chinese Fund Vies for German Gas-Station Operator

Posted on 30 June 2015 by VRS  |  Email |Print

China Investment Corp. is in the running to buy a German highway rest-stop and gasoline-station company that could be valued at about €3 billion, or $3.35 billion, which would be by far the largest Chinese acquisition in Germany, according to people familiar with the matter.
The potential bid is the latest sign of the sovereign wealth fund’s ambitions to boost direct investments in overseas assets. U.K.-based private-equity firm Terra Firma Capital Partners bought Tank & Rast in 2004 for €1 billion from investors led by Allianz Capital Partners, Apax Partners and Lufthansa………………………………………..Full Article: Source

Temasek participates in Airbnb’s $1.5bn round

Posted on 30 June 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund (SWF) Temasek Holdings has participated in home-rental service Airbnb Inc’s latest venture round, in which it raised $1.5 billion from 12 private equity firms. The deal values Airbnb at $25.5 billion, according to the report from the Wall Street Journal.
This new valuation places Airbnb as third in value behind similar venture-capital backed corporations valued at $1 billion or higher, like Chinese smartphone maker Xiaomi Corp. and US-based transport firm Uber. Airbnb’s revenue is expected to exceed $900 million for FY2015 and projected to reach $10 billion by 2020. For comparison, FY2013 saw it earn revenues of $250 million………………………………………..Full Article: Source

Canada’s Ivanhoe invests in Chinese warehouses

Posted on 30 June 2015 by VRS  |  Email |Print

The real estate arm of Canada’s second-largest pension fund said on Monday it will invest up to $180 million in Chinese warehouse properties, joining other institutional investors that are seeking to profit from China’s burgeoning e-commerce sector.
Ivanhoe Cambridge, part of the C$225.9 billion ($182.49 billion) Caisse de depot et Placement du Quebec fund, said it has launched a venture with U.S. real estate investor CBRE Global Investments to invest in LOGOS China Logistics Club, which owns and develops warehouse properties in hubs serving large Chinese cities. The Caisse joins Singapore sovereign wealth fund GIC and the Canada Pension Plan Investment Board in targeting China’s growing, yet fragmented logistics market………………………………………..Full Article: Source

Swedish investors attack governance record of Norway’s oil fund

Posted on 29 June 2015 by VRS  |  Email |Print

Norway’s oil fund has come under attack from several of Sweden’s largest investors over concerns that the world’s biggest sovereign wealth fund is not applying rigorous oversight to the companies it invests in. The criticism levelled at Norges Bank Investment Management (NBIM), which manages the oil fund’s $912bn of assets, comes in response to its perceived indifference to one of the biggest financial scandals in Sweden in recent history.
The scandal, which has tarnished Sweden’s image as a haven for ethical business practices, revealed corruption around expense claims and the misuse of corporate jets at SCA, the paper company………………………………………..Full Article: Source

Alwaleed welcomes wealth fund deal

Posted on 29 June 2015 by VRS  |  Email |Print

A consortium of France’s big companies led by the CDCIC International Capital the International investment arm of Caisse des Depots France’s Sovereign Wealth Fund has announced that they have approved an investment in Kingdom Holding Company (KHC) which is chaired by Prince Alwaleed bin Talal.
The deal constitutes the acquisition of KHC’s shares with a minimum amount of 150 million (SR563 million) subject to increase. The number of shares and acquisition share price will be determined at a time closer to execution. The share price will be based on the trading price of the stock on the Saudi Stock Exchange (Tadawul)………………………………………..Full Article: Source

Does Sub-Saharan Africa Need A Sovereign Wealth Fund?

Posted on 26 June 2015 by VRS  |  Email |Print

On June 27, 14 African central bank governors will be meeting in Switzerland to discuss the formation of a sovereign wealth fund that they hope will help cushion member countries in times of commodity price weaknesses, Xinhua reported.
According to the forum organizer, the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) which operates in 14 African countries, the continent has for long been criticized for not taking advantage of its vast natural resource wealth to ensure sustainable growth in its economies and a sovereign fund was one way to ensure this. A sovereign wealth fund is a state-owned investment fund investing in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds………………………………………..Full Article: Source

Malaysia fund’s $4.5 bln rescue may weigh on Abu Dhabi’s IPIC

Posted on 26 June 2015 by VRS  |  Email |Print

The $4.5 billion rescue of a struggling Malaysian state fund is good news for the government in Kuala Lumpur but will load Abu Dhabi’s International Petroleum Investment Co with extra debt that may worry investors in its bonds.
Last month IPIC, an investment company owned by Abu Dhabi’s government, came to the aid of Malaysia’s loss-making 1MDB, whose poor record and $11.6 billion of debt are a source of political pressure on Prime Minister Najib Razak. IPIC agreed to provide 1MDB with $1 billion in cash, allowing the Malaysian fund to repay a $975 million loan to a global banking syndicate………………………………………..Full Article: Source

Super Fund kudos shows Govt folly

Posted on 26 June 2015 by VRS  |  Email |Print

JPMorgan’s hat tip to the New Zealand Superannuation Fund was PR manna from heaven after all the hoo-haa a few months back over its ill-fated Portuguese excursion. Research by JPMorgan Asset Management found the Super Fund has been the world’s best-performing sovereign wealth fund over the past five years, with annual investment returns of 17 per cent.
It was just what the doctor ordered after February’s revelation that the fund had written off a $200 million loan to Portugal’s Banco Espirito Santo, which collapsed last year. That announcement sparked the kind of bruising media coverage you would expect when a couple of hundred million taxpayer dollars disappear………………………………………..Full Article: Source

Fossil-fuel divestment: No smoking

Posted on 26 June 2015 by VRS  |  Email |Print

The critics are right that it is hard to detect much impact from divestment campaigns on firms’ cost of capital. The first recruits to the fossil-fuel campaign were charities and universities with relatively small investments. Its biggest coup came earlier this year, when Norway’s vast sovereign-wealth fund resolved to sell its investments in coal and the dirtiest forms of oil production.
A few big pension funds, such as PFZW of the Netherlands, have promised to reduce the carbon footprint of their holdings. But the consequences for the share prices or bond yields of the spurned firms, if any, are not discernible amid the far bigger swings attributable to changes in the price of oil, gas and coal……………………………………….Full Article: Source

Queen’s grant: Treasury still controls sovereign fund not Scots

Posted on 25 June 2015 by VRS  |  Email |Print

Edinburgh’s takeover of Scottish Crown Estate assets may rile the royal household worried for its purse, but a misdirected fight could feed Scots’ republican instincts. The royal household is annoyed and appears to be picking a fight with Scotland’s government over the Queen’s share of the UK’s largest and most valuable property portfolio, the Crown Estate.
The publicly owned property empire, which takes in Ascot racecourse, London’s West End, Highland estates, farms, shopping centres, leisure parks, mining operations and most of the UK’s seabed and coastline, as well as lucrative licences to install wind farms and wave energy machines on the seabed, is worth billions of pounds………………………………………..Full Article: Source

Noble shares rise on buyback and China shareholder’s support

Posted on 25 June 2015 by VRS  |  Email |Print

Shares of Noble Group rose after the company bought more stock and its second-largest shareholder, China’s sovereign wealth fund, voiced support for the company for the first time in the wake of criticism of its accounting practices.
“As a major shareholder of Noble Group, we will continue to support its business,” Xie Ping, executive vice president of China Investment Corp., said in a Noble statement on Wednesday morning announcing the appointment of a new director. Noble, Asia’s largest commodity trader, rose as much as 4.3 per cent and at 10:50 a.m. local time was up 2.9 per cent to 71.5 Singapore cents, outpacing Singapore’s benchmark index………………………………………..Full Article: Source

The state pension fund as a sovereign wealth fund

Posted on 25 June 2015 by VRS  |  Email |Print

Sovereign wealth funds have been very holistic in their approach to strategic asset allocation. These funds think about the true risks for their clients (citizens) which is associated with the consumption and revenue pattern of their country. They truly have to think about portfolios that can weather ‘bad times” or market downturns because they are investing their country’s wealth.
They have to account for demographics and the depletion of resources. There are a few states that have the same mandate as a sovereign wealth fund given revenues from natural resource extraction like Alaska, New Mexico, Texas, North Dakota, and Louisiana. These funds have to think about resource prices, cash flows, and how to make the money last over the long-term long even after the resources have been used………………………………………..Full Article: Source

Things are not looking good for the mining industry

Posted on 24 June 2015 by VRS  |  Email |Print

It is probably not news to most investors that the global mining industry is in trouble at this point. The Chinese, long one of the biggest buyers of mined commodities, are awash in steel, local debt, and ghost cities. Inevitably as sectors underperform, even the most stalwart investors will eventually get tired and jump ship. That appears to be happening now.
The Qataris are apparently tired of the poor returns in the mining industry and appear ready to throw in the towel on that market. The Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund, are reportedly shifting away from the mining sector. Qatar is not the first sovereign wealth fund to back out of commodities, and they probably won’t be the last………………………………………..Full Article: Source

Credit Suisse Fund Wary of Norway Risk Amid $4.4 Billion Spat

Posted on 23 June 2015 by VRS  |  Email |Print

A Credit Suisse Group AG-managed fund that is looking to invest in Norwegian wind farms said a recent $4.4 billion conflict over sudden changes to gas pipe regulations had made the Nordic country a riskier place to do business.
Investors including Allianz SE, Abu Dhabi’s sovereign wealth fund and Canadian pension funds sued the Norwegian government after it imposed cuts of as much as 90 percent to tariffs on future natural gas transportation through Norway’s Gassled offshore pipeline network………………………………………..Full Article: Source

S. Korea’s sovereign fund nixes plan to buy into LA Dodgers

Posted on 23 June 2015 by VRS  |  Email |Print

South Korea’s sovereign wealth fund has abandoned its plan to buy a stake in the Los Angeles Dodgers, a Major League Baseball club, as part of a broader move to diversify its investment portfolio, sources familiar with the matter said Sunday.
The Korea Investment Corporation (KIC), which manages assets entrusted by South Korea’s central bank, had been in talks to buy a 19-percent stake in the Dodgers from U.S.-based investment firm Guggenheim Partners since last year, a deal estimated at 400 billion won (US$361 million)………………………………………..Full Article: Source

Has WSJ exposed 1MDB as BN’s political ATM?

Posted on 22 June 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) was founded by Prime Minister Najib Razak to be a “a strategic enabler for new ideas and sources of growth” and was given the mission “to drive sustainable economic development by forging strategic global partnerships and promoting FDI”.
There were many, both within the government circles as well as out of it which questioned its establishment, given that Khazanah Nasional Bhd was already specifically set up to meet these objectives. Why create a separate competing entity? While we have been fully aware of the shenanigans taking place in 1MDB previously, it was only in recent weeks we are beginning to discover some of the hidden agenda and objectives behind the company’s set up………………………………………..Full Article: Source

Bye Bye SIDF?

Posted on 22 June 2015 by VRS  |  Email |Print

If the St. Government heeds the advice of the IMF it could do away with channeling revenues from the sale of citizenships from the controversial SIDF into another type of fund. The IMF has recommended managing CBI revenue savings through an alternative investment vehicle such as a Sovereign Wealth Fund, which would have parliamentary oversight.
This is according to Ahmed El Ashram, IMF Economist for the Western Hemisphere, speaking at the inaugural Caribbean Region Citizenship By Investment Programs Meeting in St. Kitts on June 15. He gave a comprehensive presentation outlining how best St. Kitts-Nevis, and other countries in the region could manage the revenues gained from the CBI programs………………………………………..Full Article: Source

CFAs thrive in Abu Dhabi as sovereign wealth funds trump Wall Street banks

Posted on 22 June 2015 by VRS  |  Email |Print

Abu Dhabi wealth funds are recruiting and creating more holders of the Chartered Financial Analyst designation than any other employer in the Middle East as they seek greater control over how the emirates’ wealth is managed.
The Abu Dhabi Investment Authority employs about 130 CFAs, a person with knowledge of the matter said, asking not to be identified as the information is private. Abu Dhabi Investment Company has at least 51. That makes them the two largest employers of CFAs in the region, according to rankings provided by the Charlottesville, Virginia-based CFA Institute………………………………………..Full Article: Source

UK trains sights on Abu Dhabi sovereign funds for HS2 high-speed rail project

Posted on 22 June 2015 by VRS  |  Email |Print

The UK government has approached Abu Dhabi sovereign wealth funds seeking investment in major infrastructure projects. Dominic Jermey, the chief executive of UK Trade and Investment and former UK ambassador to the UAE, last week met executives from Mubadala and the Abu Dhabi Investment Authority (Adia) to try to drum up investment in projects including the controversial high-speed rail project HS2, and in the UK government’s Northern Powerhouse initiative – a plan to restore economic dynamism to Britain’s struggling post-industrial regions.
Offering the chance to get involved in “the biggest programme of railway building in the United Kingdom since the time of Queen Victoria”, Mr Jermey said that the UK government would “love to see sovereign wealth fund money” invested in HS2, and in efforts to build new infrastructure in Manchester, Birmingham, Sheffield and Leeds………………………………………..Full Article: Source

The investment elephant in the room

Posted on 22 June 2015 by VRS  |  Email |Print

Central banks and sovereign wealth funds are one of the most significant investor groups in global financial markets today — rivaling institutional investors like pension funds and sovereign wealth funds as to their size. Central banks alone (excluding sovereign wealth funds) manage around US$12 trillion of assets — a decent amount of money by anyone’s standards.
The amount of reserves under management has grown dramatically over the course of the last quarter century and of course much of the increase in sovereign reserve accumulation has taken place in Asian economies. Sovereign reserves are the “elephant in the room” for financial markets — a large, powerful bloc of funds that has the potential to influence various financial markets………………………………………..Full Article: Source

Norway Wealth Fund Ponders If China Sell-Off Sign of Larger Risk

Posted on 19 June 2015 by VRS  |  Email |Print

Is the sudden shift in Chinese stocks a sign something is fundamentally wrong in the world’s second-biggest economy? That’s what Yngve Slyngstad, chief executive officer of Norway’s $890 billion sovereign wealth fund, is trying to figure out right now.
“You have to spend time thinking about both the valuation issues but also the wider ramifications of this price move,” he said in an interview after a speech in Oslo. “Whether it’s a symptom of something more fundamental going on.”……………………………………….Full Article: Source

CFAs Dominant in Abu Dhabi as Wealth Funds Trump Banks

Posted on 19 June 2015 by VRS  |  Email |Print

Abu Dhabi wealth funds are recruiting and creating more holders of the Chartered Financial Analyst designation than any other employer in the Middle East as they seek greater control over how the emirate’s wealth is managed.
The Abu Dhabi Investment Authority employs about 130 CFAs, a person with knowledge of the matter said, asking not to be identified as the information is private. Abu Dhabi Investment Company has at least 51. That makes them the two largest employers of CFAs in the region, according to rankings provided by the Charlottesville, Virginia-based CFA Institute………………………………………..Full Article: Source

Rwanda’s sovereign wealth fund (Video)

Posted on 19 June 2015 by VRS  |  Email |Print

To help raise awareness on socio-economic development, the Rwandan government has introduced various initiatives over the recent years. One such initiative is Rwanda’s first Sovereign Wealth Fund, known as the Agaciro Fund that has now been incorporated into the national budget and will see up to 5 per cent stake of any privatized venture go into contribution to this fund. CNBC Africa’s George Ndirangu files the report.……………………………………….Full Article: Source

Qatar SWF Said to Plan Overhaul of $304B Portfolio

Posted on 19 June 2015 by VRS  |  Email |Print

The opaque sovereign wealth fund is reportedly seeking to introduce asset allocation targets for the first time. The Qatar Investment Authority (QIA) is said to be planning a wide-ranging overhaul of its estimated $304 billion portfolio, according to a report. The QIA will set out target asset allocation levels for the first time and restructure its decision-making processes, Reuters reported, citing several anonymous sources.
An update to the sovereign wealth fund’s website introduced a link labelled “QIA Review—Coming Soon”, but no more information has been made available. The fund is already reviewing some of its mining assets, Reuters’ sources said. One banker working with the QIA said “it makes much more sense to take a more institutionalized approach” as the fund grows in size………………………………………..Full Article: Source

Oman fund targets stakes in tourism to shipping

Posted on 19 June 2015 by VRS  |  Email |Print

Oman is considering taking equity stakes in logistics, shipping and tourism as its sovereign wealth fund seeks to diversify government income from crude. Oman Investment Fund , which has holdings in Italy to Vietnam and is a shareholder of the Dubai Mercantile Exchange, wants to invest in companies in Oman and abroad that are mainly outside the oil industry, Dr Fabio Scacciavillani, chief economist at the state-owned fund, said in an interview in Dubai on Wednesday.
The fund is focusing on logistics, shipping and tourism as those industries are areas in which Oman has an advantage given its location on shipping routes connecting Europe and the Americas to Asia, he said. He didn’t disclose details on future investments………………………………………..Full Article: Source

Future Fund payout will go to members: AusSuper

Posted on 19 June 2015 by VRS  |  Email |Print

A long-running dispute between AustralianSuper and the Future Fund over shares in Perth Airport has resulted in a $7 million settlement that the industry fund says will be used to compensate its members. Yesterday after a battle in the Federal court that spanned two years the Future Fund agreed to pay AustralianSuper $7 million in an out-of-court settlement.
The claim related to the Future Fund’s $875 million acquisition of a shareholding in Perth Airport as part of an agreement in 2012 to acquire $2 billion of airport assets from Australian Infrastructure Fund (AIX). The superannuation fund said the Future Fund had inflated the price of a number of AIX assets it purchased………………………………………..Full Article: Source

China securities firm chief dismissed over graft allegations

Posted on 18 June 2015 by VRS  |  Email |Print

The chairman of China Investment Securities, a brokerage owned by China’s sovereign wealth fund China Investment Corporation, has been removed from his post following a corruption investigation, the communist party’s graft watchdog said on Wednesday.
Long Zenglai is the first senior executive at a securities firm to be caught up in China’s wide-ranging anti-corruption campaign. Long is alleged to have spent thousands of yuan on organizing banquets at luxury restaurants since 2013. He also used public funds to pay for rounds of golf and spent company money to finance the publication of his poetry, said the Central Commission for Discipline Inspection on its website………………………………………..Full Article: Source

‘QIA keen on investing’ in Cardiff Airport transport, logistics hub

Posted on 18 June 2015 by VRS  |  Email |Print

The Qatar Investment Authority (QIA) has expressed keen interest in the proposed development of a logistics and transport hub around Cardiff Airport in South Wales, UK Trade & Investment chief executive Dominic Jeremy told Gulf Times.
Jeremy, who met with the QIA, Qatari Diar, and other investors in Doha, said the meeting revolved around the development of Cardiff Airport, which is part of the “northern powerhouse,” a proposal to drive economic growth in the north of England by the 2010-15 coalition government and the 2015-20 Conservative government in the UK………………………………………..Full Article: Source

‘QIA keen on investing’ in Cardiff Airport transport, logistics hub

Posted on 17 June 2015 by VRS  |  Email |Print

The Qatar Investment Authority (QIA) has expressed keen interest in the proposed development of a logistics and transport hub around Cardiff Airport in South Wales, UK Trade & Investment chief executive Dominic Jeremy told Gulf Times. Jeremy, who met with the QIA, Qatari Diar, and other investors in Doha, said the meeting revolved around the development of Cardiff Airport, which is part of the “northern powerhouse,” a proposal to drive economic growth in the north of England by the 2010-15 coalition government and the 2015-20 Conservative government in the UK.
“We were talking about an investment proposition around Cardiff Airport that the Welsh government owns, including both the land and infrastructure around the airport. They’re pulling together quite a powerful proposition for a combined logistics, business, and transport hub based around Cardiff Airport………………………………………..Full Article: Source

Qatar’s sovereign wealth fund to restructure, say sources

Posted on 17 June 2015 by VRS  |  Email |Print

Qatar Investment Authority, one of the world’s most aggressive sovereign wealth funds, will set asset allocation targets for the first time and restructure internal decision-making, sources say, in response to a drop in oil prices that has crimped available funds as competition for assets grows.
In a cryptic reference on QIA’s website, a tab saying ‘QIA Review - Coming Soon’ leads to a page which does not yet exist. The sources, who all either work in Qatar or for foreign institutions which work with the QIA, said the review process was currently ongoing………………………………………..Full Article: Source

KEO reveals Kuwait Investment Authority HQ designs

Posted on 17 June 2015 by VRS  |  Email |Print

The past prosperity of Kuwait – symbolised by the pearl diving dhows which sailed the Arabian Gulf – and its prospects for a bright future based on finances and investment come together in a design by KEO which is set to become a “beacon for the city”.
The practice is working on a new headquarters for the Kuwait Investment Authority in the country’s capital city, the design for which is inspired by four elements based on traditional Islamic design – the courtyard, sustainability, the mashrabiya and traditional geometric shapes………………………………………..Full Article: Source

CITI: If governments stopped focusing on debt and ‘unlock the value’ of assets, it will solve the global debt problem

Posted on 17 June 2015 by VRS  |  Email |Print

What many would refer to as a sovereign wealth fund and the authors call a national wealth fund (NWF). Free of political interference the NWF structure “maximizes economic value consistent with the principles of corporate governance,” Detter and Fölster say.
It’s an ambitious plan, but one that even if partially realised can change the shape of the global economy and change the conversation around sovereign debt and deficits to one much more positive. That has to be good for the global economy………………………………………..Full Article: Source

IMF allows that SOFAZ assets can increase

Posted on 17 June 2015 by VRS  |  Email |Print

IMF allows that the assets of the State Oil Fund of Azerbaijan (SOFAZ) can increase.
According to IMF forecasts, in 2015 the SOFAZ assets will decrease from $37.032 bn to $34.855 bn. In 2016 the assets will start to restore up to $36.195 bn………………………………………..Full Article: Source

Russian to Greeks: Look to sovereign wealth funds

Posted on 16 June 2015 by VRS  |  Email |Print

As the Greek debt negotiations lurch from one bruising round to the next, perhaps it’s time for Athens to broaden its search for funding. At least that’s the suggestion from Kirill Dmitriev, the head of Russia’s sovereign wealth fund.
“Well, frankly, I believe there is tremendous opportunity to work with the world’s best sovereign funds. They have lots of capital and they’re starting to become even more energetic and even more innovative in their approaches, so thinking of how countries can work with them, how they can attract capital and strike deals that will win yields, I think it’s a very important aspect, and I think Greece can definitely do that…” Dmitriev, the CEO of the Russian Direct Investment Fund (RDIF), said……………………………………….Full Article: Source

Opportunity knocks for all if we can tap into our shared wealth

Posted on 16 June 2015 by VRS  |  Email |Print

We need to think big when it comes to the West Midlands’ public and private assets. I hope it isn’t a side issue. It can actually be the real driving force for the whole region. I suspect we need to be much more ambitious than a ’single investment vehicle’. How about we aim for a West Midlands Regional Sovereign Wealth Fund?
I have been arguing in articles, books and blogs for years now (and here in the Birmingham Post) that we need to be much more innovative and creative about our assets in Birmingham and the West Midlands. They are mostly unmined, unexploited and unsweated. They sit as a wasted network of resources which should be unlocked and exploited. Their assets (often physical buildings, as it happens) joined within a wider sovereign wealth fund which recognises the wider economic impact of the arts can of themselves be part of a new wider way of generating arts funding………………………………………..Full Article: Source

Qatar’s sovereign fund to set asset allocation targets

Posted on 16 June 2015 by VRS  |  Email |Print

Qatar Investment Authority, one of the world’s most aggressive sovereign wealth funds, will set asset allocation targets for the first time and restructure internal decision-making, sources say, in response to a drop in oil prices that has crimped available funds as competition for assets grows.
In a cryptic reference on QIA’s website, a tab saying “QIA Review — Coming Soon” leads to a page which does not yet exist. The sources, who all either work in Qatar or for foreign institutions which work with the QIA, said the review process was currently ongoing. A spokesman for the QIA, which is estimated by industry tracker the Sovereign Wealth Center to have $304 billion of assets, declined to comment………………………………………..Full Article: Source

Egypt: Sovereign fund ready soon

Posted on 16 June 2015 by VRS  |  Email |Print

The legal framework for a proposed 5 billion Egyptian pound (R8bn) sovereign investment fund would be complete within four months, Egypt’s state news agency quoted the planning minister as saying yesterday. The government on Thursday approved a proposal to set up the “Amlak” fund, which will act as the state’s investment arm and is intended to encourage diversification and support sustainable economic and social development.
The fund would have a board of trustees headed by the prime minister and would be managed by investment banks in order to attract private sector investors to the projects it will fund, Planning Minister Ashraf al-Arabi said, according to the state news agency………………………………………..Full Article: Source

POSCO Sells Builder’s Stakes to Saudi Sovereign Fund

Posted on 16 June 2015 by VRS  |  Email |Print

South Korea’s largest steelmaker POSCO said on June 16 that chairman Kwon Oh-joon signed a deal with the Gulf state’s Public Investment Fund (PIF) secretary-general Abdulrahman al Mofadhi, selling the 38 percent stake of POSCO Engineering and Construction (E&C) for 1.24 trillion won (US$1.12 billion).
The deal was known to be a move aimed at intensifying cooperation in infrastructure projects in the Middle East country as well as accelerating the corporate restructuring. The deal with Saudi Arabia’s sovereign wealth fund PIF includes a 26 percent stake owned by POSCO and a 12 percent share that POSCO E&C will get from issuing new shares………………………………………..Full Article: Source

Global Sovereign Wealth Funds Buy Into Chinese Brokers

Posted on 16 June 2015 by VRS  |  Email |Print

Are brokers a good way to buy into China’s sizzling hot stock market? Last week, Citic Securities said the National Council for Social Security Fund agreed to buy 640 million shares of the broker’s Hong Kong-listed stocks at 18 Hong Kong dollars each, in a deal that totals HK$11.5 billion ($1.5 billion). On Monday night, Citic Securities raised another $3.5 billion in a private placement, attracting sovereign wealth funds from around the world.
The Kuwait Investment Authority agreed to take up $476 million worth of the offering, while Malaysia’s state-owned investment fund Khazanah and Singapore’s Temasek each pledged $300 million. GIC, another sovereign fund from the city-state, agreed to purchase $249 million worth of shares in the mainland securities house………………………………………..Full Article: Source

China’s CIC Outbids Europeans for $1.2 Bil French Mall

Posted on 16 June 2015 by VRS  |  Email |Print

China Investment Corporation (CIC) is close to making the first major Chinese investment in French real estate, after submitting a $1.2 billion bid for a portfolio of shopping malls belonging to CBRE Global Investors.
The $653 billion sovereign wealth fund is reported by Paris’ Le Figaro to have outbid French commercial property company Unibail-Rodamco and Dutch real estate investment firm, Weredlhave for the fleet of 10 shopping centres in France and Belgium………………………………………..Full Article: Source

Top sovereign wealth fund puts €1.2bn bet on corporate Ireland

Posted on 15 June 2015 by VRS  |  Email |Print

The Government Pension Fund of Norway, the world’s biggest sovereign wealth fund, has built up a $1.34bn (€1.19bn) stake in Irish companies. The $916bn fund, which is financed by the sale of the country’s vast oil and gas reserves, has invested in 24 different Irish companies.
Norway is western Europe’s biggest oil exporter and levels up to 80pc tax rates on the profits from the sale of its oil and gas reserves. The fund, which is often referred to as the Oil Fund, invests abroad to avoid stoking inflation and pushing up interest rates and the krone. The largest of the fund’s Irish investments is a $486m stake in Smurfit Kappa, giving it control of a tenth of the paper and packaging business………………………………………..Full Article: Source

Risks of Sovereign Wealth Funds

Posted on 15 June 2015 by VRS  |  Email |Print

Foreign currency earnings began to flow into the region and - to mop up this flood of capital - governments set up sovereign wealth funds, or SWFs. These funds were, in principle, intended to act as banks of last resort for oil producers in the region by investing petrodollars overseas during periods of high prices. Were revenue from oil sales to decline, then these investments could be sold to provide hard currency at short notice to support economic growth.
In theory, these SWFs were glorified pension funds, but in practice they provided the rulers of these countries with an insurance policy against political risk, both at home and abroad. However, the problem has become that the SWF system, which over the years has provided bankers in the City with a healthy stream of fees for managing the vast pools of money, has historically proved vulnerable to abuse………………………………………..Full Article: Source

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