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SOFAZ not plans to up gold reserves

Posted on 10 February 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has no plans to increase its gold reserves in 2016, a source in the Fund told Trend. Currently, SOFAZ’s gold reserves portfolio includes 30,175 kilograms of gold, which accounts for about 3.5 percent of total assets.
“Under SOFAZ’s funds management rules, the portion of gold reserves in total assets shouldn’t exceed the five percent limit of the fund’s investment portfolio,” the source said, adding that the issue is not in the agenda of the Fund. The Fund recently started investing in real estate funds, as the share of investments that can be made in real estate has been increased from 5 to 10 percent………………………………………..Full Article: Source

India, UAE to scale up trade to $100 bn

Posted on 10 February 2016 by VRS  |  Email |Print

India and the UAE will be looking to majorly scale up their bilateral trade to $100 billion in the coming years during the visit of Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan to New Delhi beginning Wednesday. India is the UAE’s largest trading partner while the UAE is India’s third-largest trading partner. In the 1970s, trade was valued at $180 million annually.
The Abu Dhabi Investment Authority has a sovereign wealth fund of about $800 billion, which India is seeking to tap for its infrastructure sector. The UAE is the 10th biggest foreign investor and the biggest Arab investor in India, with investments of roughly $10 billion………………………………………..Full Article: Source

Sovereign Wealth Funds Draining Market Liquidity

Posted on 10 February 2016 by VRS  |  Email |Print

Most financial market observers point to liquidity from central banks as a prime reason stock markets have gone up so much in recent years. True enough… But there’s another huge source of global liquidity that also pushed up markets worldwide. It’s one that’s now reversed, and is draining liquidity from the global markets.
That source? Sovereign wealth funds (SWFs). The total assets of sovereign wealth funds, as of last March, were estimated at $7.3 trillion by the International Monetary Fund. That figure has doubled just since 2007. The IMF adds that at least $4.2 trillion of this wealth was energy-related. A nice chunk of this accumulated oil wealth was placed into global financial markets by countries like Saudi Arabia………………………………………..Full Article: Source

Sovereign wealth fund selling a major concern: Credit Suisse

Posted on 09 February 2016 by VRS  |  Email |Print

While sovereign wealth fund selling continues to be a major concern, US corporate earnings are not really helping investor sentiment either, says Robert Parker of Credit Suisse Asset Management.
Against this backdrop and the US non-farm payrolls data published on Friday, he sees another one or two moves by the US Federal Reserve this year. The US economy added 151,000 jobs in January, against economists’ expectations of a gain of 190,000. The unemployment rate, however, fell to 4.9 percent from 5 percent………………………………………..Full Article: Source

Sovereign funds peg back investments in India

Posted on 08 February 2016 by VRS  |  Email |Print

The fall in crude oil prices is affecting Indian stock markets in more ways than one. Sovereign Wealth Funds (SWF) that were built with the surpluses of oil-producing nations have been reducing their investments in India as their assets decline in tandem with the fall in crude oil prices.
SWFs have been one of the most important foreign investor classes investing in Indian markets in recent times. Some of the largest funds have been set up by oil-producing nations; among these are the Abu Dhabi Investment Authority (ADIA), which managed $773 billion in June 2015; the SAMA Foreign Holdings of Saudi Arabia (assets of $686 billion); the Kuwait Investment Authority ($592 billion); and the Qatar Investment Authority ($256 billion)………………………………………..Full Article: Source

India needs resources to fund its infrastructure needs

Posted on 08 February 2016 by VRS  |  Email |Print

A growing and developing economy requires infrastructure that makes inter-city transport faster and brings down transaction costs. India is in dire need of resources to fund its infrastructure needs. As of March 31 last year, 328 central infrastructure projects, each worth more than Rs100 crore, were running behind schedule.
Last year, the government announced the launch of the National Infrastructure Investment Fund (NIIF), a sovereign wealth fund that aims ‘to maximise economic impact through infrastructure development in commercially viable projects’. The government will have a 49% share in the fund and will provide an initial corpus of Rs 20,000 crore. The remaining Rs 20,000 crore is expected to be raised from overseas long-term funds such as sovereign endowments of other countries and wealth funds………………………………………..Full Article: Source

Foreign hand to aid Indian infrastructure

Posted on 05 February 2016 by VRS  |  Email |Print

In what could give a leg-up to the country’s efforts to find the elusive equity capital for its mammoth plans for infrastructure creation, at least four global sovereign wealth funds including the Abu Dhabi Investment Authority (ADIA), Singapore’s Temasek and Russian Direct Investment Fund have evinced interest in its National Infrastructure and Investment Fund.
The NIIF, to be set up with an initial corpus of Rs 40,000 crore, including half that from the government which will remain a minority partner, is expected to catalyse financing of infrastructure projects, by leveraging the same multiple times………………………………………..Full Article: Source

India wants to leverage NIIF equity to boost infrastructure

Posted on 04 February 2016 by VRS  |  Email |Print

How much can Rs 20,000 crore be leveraged to raise more equity? Through an appropriate yet conservative structure, say experts, about 10 times or roughly Rs 2 lakh crore. Sprinkle it a bit thin, and it could be multiplied to over Rs 4 lakh crore. That is the kind of multiplier structure that the Narendra Modi-led NDA government is plotting through the National Infrastructure Investment Fund (NIIF), to obtain the maximum bang out what it can spare from its budget resources, realising that India’s infrastructure development needs more equity or risk capital.
Announced in the budget for FY16 by finance minister Arun Jaitley, the NIIF has been in the works for a while.”We have been working on this for almost a year now. As part of that exercise, we have spoken to all the global experts of all the major consulting companies, all the major investment banks,” said minister of state for finance Jayant Sinha………………………………………..Full Article: Source

NIIF, Rusnano sign MoU to invest in high technology projects

Posted on 03 February 2016 by VRS  |  Email |Print

India’s maiden sovereign wealth fund NIIF on Tuesday signed an agreement with Russia’s Rusnano OJSC to set up a fund that will invest in high technology projects in India. “NIIF signs MoU (Memorandum of Understanding) with Rusnano of Russia for setting up India-Russia High Technology Fund. NIIF fast taking shape,” economic affairs secretary Shaktikanta Das tweeted.
Both NIIF and Rusnano will establish a joint working group with a view to further develop cooperation and work on the development of the definitive agreements. The High Technology Private Equity Fund, a finance ministry statement said, will invest in projects in India………………………………………..Full Article: Source

SWFs, pension funds keen to invest in NIIF

Posted on 03 February 2016 by VRS  |  Email |Print

The sovereign wealth funds of Singapore, Canada, Russia and Qatar along with several pension funds are said to be keen on participating in the National Investment and Infrastructure Fund, underscoring the growing interest in India as an investment destination with the global economy facing new headwinds.
Draft memoranda of understanding (MoUs) have been exchanged between NIIF and a number of funds, said two persons aware of the development. These could be finalised and signed soon after approvals are obtained. Singapore’s Temasek and GIC are said to be among those looking at investing in the fund………………………………………..Full Article: Source

MBSB-Bank Muamalat merger talks aborted

Posted on 03 February 2016 by VRS  |  Email |Print

Non-bank financial provider Malaysia Building Society Bhd (MBSB) has failed to strike a merger with Bank Muamalat Malaysia Bhd, its second botched merger attempt in recent times. Bank Muamalat is 70%-owned by DRB-Hicom, while Malaysia’s sovereign wealth fund Khazanah holds the remaining 30% interest.
MBSB said that it and the parties involved, namely, DRB-Hicom Bhd and Khazanah Nasional Bhd, have decided to end negotiations for the proposed merger to form the country’s biggest standalone Islamic bank after having failed to agree on the terms………………………………………..Full Article: Source

Singapore seizes bank accounts linked to Malaysia sovereign wealth fund

Posted on 03 February 2016 by VRS  |  Email |Print

The Singapore Commercial Affairs Department and the Monetary Authority of Singapore said Monday they have seized a “large number” of bank accounts linked to a money laundering investigation involving the Malaysia state investment fund 1MDB.
Their joint statement Monday said, Singapore does not tolerate the use of its financial system as a refuge or conduit for illicit funds. Since the middle of last year, the Commercial Affairs Department and the Monetary Authority of Singapore have been actively investigating possible money-laundering and other offenses carried out in Singapore……………………………………….Full Article: Source

Malaysia’s 1MDB Scandal: Case Not Closed With Ongoing International Probes

Posted on 03 February 2016 by VRS  |  Email |Print

Investigations abroad continue to haunt the nation’s premier despite efforts to downplay the scandal at home. On February 1, the Commercial Affairs Department (CAD) and Monetary Authority of Singapore (MAS) announced that they had seized a “large number” of bank accounts over possible money-laundering offenses tied to debt-ridden state investment fund 1 Malaysia Development Berhad (1MDB).
The Singapore authorities also confirmed that the city-state was “cooperating closely” with relevant authorities in Malaysia, Switzerland, and the United States in the ongoing investigation of the so-called 1MDB scandal, which has implicated Malaysian prime minister Najib Razak………………………………………..Full Article: Source

Sovereign Wealth Funds Showing Interests In Nigeria’s $25bn Infrastructural Fund

Posted on 03 February 2016 by VRS  |  Email |Print

The Federal Government’s plan to raise a $25 billion Infrastructural Fund from the global community and establish long term bankable projects is gaining traction, Vice President, Prof. Yemi Osinbajo, has said.“We have seen considerable favorable interests from some sovereign wealth funds and other nations,” the VP said.
The VPsaid the Nigeria Sovereign Investment Authority (NSIA) which manages the country’s sovereign wealth fund is leading the project, adding that the Infrastructural Fund would create opportunity for commercial partners to participate in the building of the nation’s infrastructures alongside the Federal Government………………………………………..Full Article: Source

Sovereign funds drive turbulent trading

Posted on 03 February 2016 by VRS  |  Email |Print

Oil-rich Kazakhstan has raided its SWF. Asset managers have blamed outflows from sovereign wealth funds for one of the worst starts to the year for markets. The collapse in the price of oil resulted in state-backed investment vehicles becoming “forced sellers”.
The year began with a sharp drop in equity markets. UK and US stocks fell almost 10 per cent in the first few weeks of 2016 and emerging markets were hit even harder. Philippe Ferreira, a director at Lyxor Asset Management, the €116bn fund house, said sovereign wealth funds have been driving the turbulent trading conditions………………………………………..Full Article: Source

Selling By Sovereign Wealth Funds is a Huge Headwind for Stocks

Posted on 02 February 2016 by VRS  |  Email |Print

Market watchers continue to voice concern about sovereign wealth funds and their potential to impact global equity markets in 2016. SWFs, government-owned investment pools, sopped up petrodollars when oil prices were north of $100 a barrel. In turn, this money was pumped money into funds run by the world’s biggest asset managers.
But oil prices plunged in summer 2014 and continue to languish near $30 a barrel. That means governments that sat on comfortable budget surpluses are now projected to have deficits in the years ahead. SFWs, which own a lot of property and private equity investments, are prone to sell their liquid stuff (stocks and bonds) first………………………………………..Full Article: Source

Future Fund develops teams to match complex markets

Posted on 02 February 2016 by VRS  |  Email |Print

The Future Fund is focusing on building its internal capabilities to better handle increasing complexities in financial markets. Hiring has gone ahead across the organisation to ensure its investment functions are resourced to be nimble in identifying and taking up opportunities in niche areas (reflecting the competition for good investment opportunities) and in support functions, which are needed to implement investments.
David Neal, managing director of the Future Fund, said the fund had not only been working on the portfolio, but also on its team and processes. “The world only ever seems to get more complicated, with regulators changing the rules and the emergence of new types of asset classes constantly challenging our team. The competitive environment for assets at the moment is about as hot as it could be,” Neal said………………………………………..Full Article: Source

Norway wealth fund aims to keep outpacing global markets, chief says

Posted on 02 February 2016 by VRS  |  Email |Print

Norway’s $810-billion sovereign wealth fund, the world’s largest, will continue its bid to outperform global markets despite the added risks involved, the central bank official supervising the fund told Reuters.
The country’s rainy-day savings, worth more than twice its annual gross domestic product, are invested in foreign stocks, bonds and real estate to share the wealth from oil and gas production with future generations. The fund aims to have its returns exceed global equity and fixed income benchmarks by about a quarter percentage point per year by taking on risk it believes will pay off, including by picking stocks it expects to deliver long-term returns………………………………………..Full Article: Source

China wealth fund eyes Thai stake

Posted on 01 February 2016 by VRS  |  Email |Print

China has expressed interest in investing in the Thailand Future Fund (TFF), according to Finance Minister Apisak Tantivorawong. The interest comes from the China Investment Corporation (CIC), a sovereign wealth fund responsible for managing part of China’s foreign exchange reserves.
The CIC has over US$740 billion in global assets under management, said Mr Apisak. Mr Apisak led a delegation to Beijing over the weekend to meet a group of leading Chinese investors, both state enterprises and large private companies………………………………………..Full Article: Source

NZ Super Fund keeps $200mn reinsurance allocation stable in 2015

Posted on 01 February 2016 by VRS  |  Email |Print

The New Zealand Super Fund kept its reinsurance allocation steady at about $200mn in the financial year to 30 June 2015. The sovereign wealth fund yesterday (27 January) reported a 6.5 percent gain over the 2015 calendar year, taking its total portfolio to NZ$29.5bn ($19.2bn).
The fund’s most recent annual report listed a combined allocation of about $200mn as at 30 June last year to its two ILS managers, Leadenhall Capital Partners and Elementum Advisors………………………………………..Full Article: Source

Switzerland names the companies ‘linked to 1MDB scandal’

Posted on 01 February 2016 by VRS  |  Email |Print

The Swiss attorney general’s announcement that $4 billion may have been misappropriated from Malaysian state-owned companies opened a new front in the troubles facing 1Malaysia Development Bhd., or 1MDB, the state-investment fund set up by Prime Minister Najib Razak in 2009. Switzerland’s top prosecutor on Friday named a number of firms in Malaysia, Saudi Arabia and Abu Dhabi in relation to the matter, but gave no details of their roles, if any.
The attorney general’s office said it is examining allegations of criminal activity from 2009 to 2013 relating to PetroSaudi International Ltd., a Saudi oil company; SRC International Sdn Bhd, a unit of Malaysia’s Finance Ministry; Malaysian companiesGenting Group and Tanjong PLC; and a joint venture between 1MDB and an Abu Dhabi sovereign-wealth fund called the Abu Dhabi Malaysia Investment Company………………………………………..Full Article: Source

Norway’s parliament to back broader investment brief for wealth fund

Posted on 01 February 2016 by VRS  |  Email |Print

Norway’s lawmakers are expected to grant the country’s $800 billion sovereign wealth fund a broader investment brief to better spread risk, the leader of the parliamentary finance committee said.
The central bank, which manages the fund, last month recommended it should be allowed to invest in unlisted infrastructure projects and put a higher share of its assets into real estate, changes representing the biggest shift in strategy since it was permitted to buy property in 2010. The fund currently invests about 60 percent of its value in stocks, 35 percent in bonds and up to five percent in real estate, all outside Norway………………………………………..Full Article: Source

Norway accepts hostile takeover by Vonovia

Posted on 29 January 2016 by VRS  |  Email |Print

Norway said its $800billion sovereign wealth fund has accepted Vonovia’s hostile takeover bid for rival Deutsche Wohen. The fund holds 4.6% of the shares in Vonovia and 6.9% in Deutsche Wohen.
A spokeswoman for the Sovereign Fund said it thought the move was in “the best interest” of the shareholders. She said: “The rationale behind this is that we see advantages of scale, as well as cost benefits.”……………………………………….Full Article: Source

Should you follow the Future Fund into cash?

Posted on 29 January 2016 by VRS  |  Email |Print

At the Future Fund’s quarterly portfolio update, the fund’s chairman and founder Peter Costello expressed his pride that the fund had been recognised by the Central Banking Journal as the sovereign investor of the year.
Australia’s $118 billion sovereign wealth fund has built a reputation as one of the most astute investment firms in the world and the award recognised the fund’s conservatism at a time when low returns compelled many investors to take more risk………………………………………..Full Article: Source

Are sovereign wealth funds big sellers in Indian stocks?

Posted on 29 January 2016 by VRS  |  Email |Print

Are sovereign wealth funds (SWFs) big sellers in Indian stocks? The conventional answer to that question is a yes, but data points to another intriguing trend — the rising share of direct sovereign fund investments in India. Assets under management (AUM) of SWFs in Indian equities climbed 14% to Rs 1.74 lakh crore in December 2015 from Rs 1.53 lakh crore a year ago, data compiled by ETIG shows.
An increase in SWF assets at a time of poor market returns shows that they have been buying Indian equities directly though they are sellers in foreign funds where they have parked their money………………………………………..Full Article: Source

Oman fund, Iran’s Khodro sign MoU for $200 mln auto venture

Posted on 28 January 2016 by VRS  |  Email |Print

An Omani sovereign wealth fund has signed an understanding with Iran’s biggest auto maker, Iran Khodro Industrial Group, to study a proposal for a $200 million auto plant in Oman, a fund official said on Wednesday.
The memorandum of understanding is one of the first signed between a major Iranian company and a Gulf Arab state since international sanctions against Iran were lifted earlier this month. Traditionally, Oman has had closer ties to Iran than its Arab neighbors………………………………………..Full Article: Source

Oxford, Abu Dhabi Investment Authority face off on EB-5

Posted on 28 January 2016 by VRS  |  Email |Print

Two of the largest foreign investors in New York City real estate are at odds over the value of EB-5 investment, a funding vehicle popular among developers that provides foreign investors a path to U.S. citizenship. Tom Arnold, head of real estate in the Americas for the Abu Dhabi Investment Authority, warned against falling into “quick assumptions” about the program’s benefits, calling it a “cheap ticket” to American citizenship.
“This EB-5 thing is really controversial,” Arnold, whose employer has invested more than $2 billion in Manhattan real estate according to Real Capital Analytics, said at a Wednesday conference hosted by the ULI New York. “It’s up there with abortion and global warming.”……………………………………….Full Article: Source

Bad News For Stocks As Sovereign Wealth Funds Feel Pinch Of Cheap Oil

Posted on 28 January 2016 by VRS  |  Email |Print

Investors are facing stiff challenges in 2016, as the year opened with an explosion of selling, as if someone flipped a switch at the end of 2015 and released an onslaught of angry bears. While markets are often emotional, the fundamentals have not changed.
The simple question everyone is asking is, “Why?” If you look at the standard answers in the media and from many in the financial world you will see the same explanations: China growth uncertainty, extensive declines in oil and commodity prices, the Federal Reserve tightening, global geopolitical uncertainties, and a number of additional irritants like the strength of the U.S. dollar……………………………………….Full Article: Source

Are sovereign wealth funds big sellers in Indian stocks?

Posted on 28 January 2016 by VRS  |  Email |Print

Are sovereign wealth funds (SWFs) big sellers in Indian stocks? The conventional answer to that question is a yes, but data points to another intriguing trend — the rising share of direct sovereign fund investments in India. Assets under management (AUM) of SWFs in Indian equities climbed 14% to Rs 1.74 lakh crore in December 2015 from Rs 1.53 lakh crore a year ago, data compiled by ETIG shows.
An increase in SWF assets at a time of poor market returns shows that they have been buying Indian equities directly though they are sellers in foreign funds where they have parked their money. Most SWFs have no direct presence in Indian equities but those that do have been increasing their exposure to the country………………………………………..Full Article: Source

Norway’s oil fund backs Vonovia bid for Deutsche Wohnen

Posted on 28 January 2016 by VRS  |  Email |Print

Norway’s $800 billion sovereign wealth fund, the world’s largest, has accepted Vonovia’s hostile takeover bid for rival Deutsche Wohnen , it said on Wednesday.
“We have accepted the offer from Vonovia, which we think is in the best interest of the shareholders. The rationale behind this is that we see advantages of scale, as well as cost benefits,” a spokeswoman for the fund told Reuters, adding that it would also reduce the competition between the two companies………………………………………..Full Article: Source

Aberdeen Sees Sovereign Assets Shrink $19 Billion in Two Years

Posted on 28 January 2016 by VRS  |  Email |Print

Aberdeen Asset Management Plc has seen sovereign wealth-fund assets shrink by about 13 billion pounds ($19 billion) since a peak in 2013 as clients from oil-dependent countries cashed out and markets slumped.
Chief Executive Officer Martin Gilbert said SWF’s now represent about 2.5 percent, or 7 billion pounds, of Aberdeen’s total assets under management. That’s down from 10 percent two years ago. Aberdeen rose Wednesday after the company said outflows slowed in the first quarter and more cost cuts were announced………………………………………..Full Article: Source

Temasek said to discuss potential sale of Keppel stakes in M1, Keppel Reit

Posted on 27 January 2016 by VRS  |  Email |Print

Temasek Holdings is discussing options for portfolio companies Keppel Corp and Sembcorp Industries, ranging from divesting their non-core assets to selling shares, as the two Singaporean rig builders grapple with the oil-price slump, people with knowledge of the matter said.
Temasek is weighing the possibility of Keppel selling its 19.1 per cent stake in wireless operator M1 and paring its 44.6 per cent interest in office landlord Keppel Reit, the people said, asking not to be identified as the information is private. Keppel’s holdings in the two firms are worth a combined S$1.6 billion at current market prices, according to data compiled by Bloomberg……………………………………….Full Article: Source

Kazakh sovereign fund prepares for weaker oil, tenge

Posted on 27 January 2016 by VRS  |  Email |Print

Kazakh Samruk-Kazyna sovereign wealth fund expects the country’s tenge currency to weaken further this year along with oil prices, its chief financial officer told Reuters on Tuesday.
“An optimistic scenario for our companies would be $35 per barrel and … an exchange rate of up to 380 tenge per dollar (on average in 2016),” Yelena Bakhmutova, managing director in charge of finance and operations, said in an interview. “The baseline scenario is $25 per barrel and 400 tenge per dollar, a stress one is $20 and 420 tenge per dollar.”……………………………………….Full Article: Source

China Investment Corporation a new force in Asciano race

Posted on 26 January 2016 by VRS  |  Email |Print

A new name has surfaced in the $9 billion race for Asciano, potentially leading to a formal offer from ASX-listed Qube in coming weeks. State-owned China Investment Corporation (CIC) revealed to the market last night that it had joined the Asciano register, tagging onto the near 20 per cent stake owned by Global Investment Partners (GIP) and Qube.
The latter two groups have been working with Canada Pension Plan Investment Board on an acquisition of Asciano (AIO). The ASX release disclosed an agreement between CIC affiliate Shunrong and GIP in particular, which would see them bid together for the in-demand logistics giant………………………………………..Full Article: Source

Europe well placed to weather the turmoil

Posted on 26 January 2016 by VRS  |  Email |Print

There are many reasons to be concerned about the economic outlook for Europe. Risks are arising from political instability in Spain and Portugal, a looming standoff between Greece and its creditors, a possible British decision to quit the EU and fallout from the potential unravelling of Europe’s Schengen passport-free travel zone.
But all signs point to this market slide — which began mysteriously on the last trading day of 2015 without any obvious news to trigger the rout — as having been a liquidity-driven event most likely sparked by a New Year change in investment strategy by a major, or several major, investors, perhaps a sovereign-wealth fund looking to liquidate assets to make up for budgetary shortfalls arising from low oil prices………………………………………..Full Article: Source

The sovereign wealth ruling class

Posted on 25 January 2016 by VRS  |  Email |Print

It’s always good to have deep pockets, but few institutional investors carry checkbooks backed by entire nations. Yet point to one of New York City’s recent big-ticket real estate deals and there’s a good chance a sovereign wealth fund was one of the buyers.
Through the first 11 months of 2015, sovereign wealth funds spent more than $22.6 billion on real estate in the United States, up from about $9.8 billion in 2014, according to research firm Real Capital Analytics. “If you need billions of dollars for a project, where are you going to go?” said Savills Studley executive managing director Woody Heller, who heads the brokerage’s capital markets group………………………………………..Full Article: Source

How Nigeria can survive economic downturn, by NLC, NES, others

Posted on 25 January 2016 by VRS  |  Email |Print

The establishment of a Stabilisation Fund can help the country get out of its economic downturn, a report has said. The report, which was put together by a group, which includes the Nigeria Labour Congress (NLC) and the Nigeria Economic Society (NES), added that Nigeria is occupying the 55th position of 69 nations rated for savings and investment.
The depletion of the Excess Crude Account (ECA) when oil prices were high was also said to have contributed to the financial meltdown which the nation is facing. These facts are contained in a report by 43 groups under the auspices of the Citizens Wealth Platform(CWP)………………………………………..Full Article: Source

What will sovereign wealth funds do with stocks?

Posted on 22 January 2016 by VRS  |  Email |Print

Norway owns the world’s largest sovereign wealth fund with $780 billion of the country’s oil wealth invested in global markets. In fact, officials who supervise the $780 billion fund haven’t even discussed the possibility of shifting strategy, according to Egil Matsen, who this week started as the new deputy central bank governor in charge of oversight of the investor.
“There’s no indication that we need to sell assets now, not at all,” Matsen said in an interview in Oslo Thursday. “The governance structure around our sovereign wealth fund is actually designed to live through such periods.”……………………………………….Full Article: Source

Permanent Fund value takes a $2.5 billion hit as stock markets dive

Posted on 22 January 2016 by VRS  |  Email |Print

The value of the Alaska Permanent Fund portfolio decreased by billions of dollars in the first two weeks of this year, as U.S. and global stock markets plummeted. While the fund was worth an estimated $51.8 billion on New Year’s Day, according to the fund spokeswoman Laura Achee, that value dropped by $2.5 billion drop as of Jan. 15.
The slide has continued this week, with the value dipping to $48.9 billion on Tuesday when the Alaska Legislature’s 90-day lawmaking session began. “It is a bit unusual,” Gov. Bill Walker said in an interview. “Typically, when the price of oil is down, the stock market is up because the cost of doing business is significantly less.”……………………………………….Full Article: Source

Shares sell-off by sovereign wealth funds hurting markets

Posted on 21 January 2016 by VRS  |  Email |Print

When the price of crude was riding high at about $120 a barrel, oil-rich countries seemed to have plenty of cash to go around. Money was invested in shares and other assets around the world, not just by individuals, but by the sovereign wealth funds (SWFs).
But with the oil price sinking to around a 12-year low, there are signs that SWFs are having to dump assets to raise money. And that is exacerbating the turmoil on world markets. SWFs are a bit like a savings account for a country, with money put aside for a rainy day. The money was spent buying shares, currencies, property or other assets………………………………………..Full Article: Source

Are Sovereign Wealth Fund Liquidations Responsible for Current Market Turmoil?

Posted on 21 January 2016 by VRS  |  Email |Print

The plunge continues apace. The S&P is now well below its August 24 panic lows, with the Nasdaq knocking on the door within 100 points of that critical support zone. The Dow Jones is about 300 to 400 points away.
With some blaming the rout on the possibility of more Federal Reserve rate hikes and others looking towards China, the real answer may actually be oil. The first Fed rate hike has not even remotely affected credit levels, so its effect on stocks can only be psychological and temporary. The December rate hike only served to neutralize excess bank reserves by $250 billion, and with $2.12 trillion (see table 2 column 1) in excess to go, there is plenty of room to hike rates further without affecting the credit supply at all………………………………………..Full Article: Source

Brookfield plans $1-billion office tower in Dubai finance centre

Posted on 21 January 2016 by VRS  |  Email |Print

Brookfield Property Partners LP plans to start building the first commercial tower to be developed in Dubai’s financial district since the global credit crisis seven years ago.
The New York-based company and Dubai’s sovereign wealth fund, Investment Corporation of Dubai, will split the cost of the 53-storey tower in the Dubai International Financial Centre, the companies said in joint press conference Wednesday………………………………………..Full Article: Source

Shrinking Sovereign Wealth Funds Are Ducking Davos

Posted on 20 January 2016 by VRS  |  Email |Print

In the days of the commodity boom a few years ago, oil-rich nations and their petrodollar wealth were the darlings of the World Economic Forum. A panel that included Kuwaiti, Saudi and Russian sovereign-wealth fund officials was one the hottest tickets at Davos in January 2008, just before oil prices surged to $150 a barrel.
It was a time when crude producers were accumulating billions of dollars in debt and equities, plus real estate, sports teams and other trophy assets. So influential were the fund managers that a group of bank chiefs told them behind closed doors at the Swiss resort to become more transparent, or risk antagonizing American legislators………………………………………..Full Article: Source

Korea’s $200B Plan for the Sovereign Fund Major League

Posted on 20 January 2016 by VRS  |  Email |Print

New CEO Sung-Soo Eun wants to overhaul processes at Korea Investment Corporation to ensure it can compete on the world stage. Korea’s $84.7 billion sovereign wealth fund (SWF) will overhaul its “culture, processes, and behaviors” under its new CEO in response to government and public criticism.
The Korea Investment Corporation (KIC) yesterday announced the appointment of former World Bank Executive Director Sung-Soo Eun as its CEO. He replaces Hongchul Ahn, who quit in November………………………………………..Full Article: Source

Russia crisis is ‘controllable’: Wealth fund head

Posted on 20 January 2016 by VRS  |  Email |Print

Russia’s economy is seen shrinking another 1 percent this year, but the head of the $10 billion Russian Direct Investment Fund (RDIF) told CNBC the situation was under control.
Kirill Dmitriev, the CEO of RDIF since 2011, said that while Russia was in “crisis,” due to the slump in oil prices and the international sanctions on the country, he remained optimistic and saw the situation as an opportunity to restructure. “It could have been much worse (the forecast decline); we believe it is sort of okay,” Dmitriev told CNBC………………………………………..Full Article: Source

Qatar seeks to develop cooperation with Russia in gas, investment areas

Posted on 19 January 2016 by VRS  |  Email |Print

Qatar is striving to develop, political, gas, investment and humanitarian cooperation with Russia, Emir Sheikh Tamim bin Hamad al Thani said on Monday at a meeting with speaker of Russia’s State Duma Sergey Naryshkin.
Qatar’s emir drew attention to the fact that the Russian-Qatari political ties were developing as well as cooperation in the gas sector and investment sphere. “Good dialogue has been established through the Gas Exporting Countries Forum and also between the Russian Direct Investment Fund and the Qatar Investment Authority,” he said. “We see good progress in this area.”……………………………………….Full Article: Source

China Investment Corp approaches Mirvac on $3.5b Investa Office Fund

Posted on 18 January 2016 by VRS  |  Email |Print

China’s sovereign wealth fund China Investment Corporation is considering a bid for the $3.5 billion Investa Office Fund. The negotiations are still in developing stages but sources have told Street Talk that several documents with some preliminary metrics have already been drawn up.
A tilt from CIC makes sense given it bought the $2.5 billion unlisted Investa Property Trust office portfolio from Morgan Stanley Real Estate Investing last year. Adding most of IOF’s $3.5 billion portfolio to its holdings would give it significantly more scale………………………………………..Full Article: Source

ICD & Brookfield to launch $1bn DIFC project

Posted on 18 January 2016 by VRS  |  Email |Print

Dubai’s sovereign wealth fund, the Investment Corporation of Dubai (ICD), and Brookfield Asset Management are set to launch their first project in Dubai.
The two organisations plan to build a $1bn development, scheduled for completion in 2018, within the Dubai International Financial Centre free zone. The projecty will be the first construction development in the area since the property crash in 2008, according to Arabian Business………………………………………..Full Article: Source

The World’s Largest SWF Bans a Stock. Does It Matter?

Posted on 15 January 2016 by VRS  |  Email |Print

The Norwegian sovereign fund has dropped one of the world’s 10 biggest smartphone manufacturers over “severe corruption” concerns. Amid a chaotic start to the year for investors in Chinese equities, one of the country’s biggest telecoms companies, ZTE Corporation, saw its share price fall nearly 14%.
On the surface, the only surprise was that traders found enough time to sell that much—short-lived circuit breakers on the Shanghai Stock Exchange kicked in so quickly that only 29 minutes of trading took place on January 7………………………………………..Full Article: Source

Rebranding Malaysia Airlines not priority, says Khazanah boss

Posted on 15 January 2016 by VRS  |  Email |Print

Rebranding troubled Malaysia Airlines Berhad (MAB) is of secondary concern to fixing the airline’s operations and finances, Khazanah chief Tan Sri Azman Mokhtar said. Azman, managing director of Khazanah Nasional Berhad, said MAB’s recovery plan was on track, and that he was confident it will be able to meet its five-year deadline in 2018.
“In terms of rebranding, I was asked this question on 29 August 2014 when we first announced (the restructuring plan). To be honest, I don’t think it was a priority then and I don’t think it’s a priority now………………………………………..Full Article: Source

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