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Sovereign Wealth Funds Briefing - Category | Market more

The Future Fund emerges in Port of Melbourne bid

Posted on 27 June 2016 by VRS  |  Email |Print

The Future Fund, Australia’s $117 billion sovereign wealth fund, is believed to be seeking to buy a 20 per cent stake in the Australia’s largest shipping container terminal, the Port of Melbourne.
Street Talk understands The Future Fund is preparing to bankroll an offer from Australian infrastructure fund manager QIC, which is headed to Port of Melbourne’s auction alongside two offshore investors. While it is only early days, a 20 per cent stake is expected to be worth about $600 million, which would make it one of The Future Fund’s largest infrastructure investments………………………………………..Full Article: Source

Qatar shows its economic resilience and much more

Posted on 27 June 2016 by VRS  |  Email |Print

The amount raised in May is considered the biggest-ever bond issued by any government in the Middle East. Not surprisingly, the achievement serves as a vote of confidence by international investors concerning the Qatari economy’s prospects notwithstanding the oil prices.
On another front, it is still business as usual with regards to making use of sovereign wealth funds to purchase assets worldwide. Statistics released by the Sovereign Wealth Fund Institute estimates the Qatari SWF at $256 billion. Other sources put the value at nearly $300 billion………………………………………..Full Article: Source

Qatar fund buying Balmain shows Middle Eastern investors’ hunger for luxury labels

Posted on 27 June 2016 by VRS  |  Email |Print

The acquisition of Balmain, the Paris fashion house, by Mayhoola for Investments, a Qatar-based fund, is the latest sign of Middle Eastern investors’ appetite for luxury goods. The spree makes sense: that region’s market is probably the best suited to the industry’s business model and culture today.
Qatar itself has invested heavily in the luxury business through its sovereign wealth fund, buying 1 per cent of the French holding LVMH, 38 per cent of UK accessories brand Anya Hindmarch, 11.3 per cent of Tiffany, and controlling stakes in the French department store chain Printemps and London’s Harrods………………………………………..Full Article: Source

More public listings needed to boost growth - Norway’s wealth fund

Posted on 24 June 2016 by VRS  |  Email |Print

Developed economies must reverse a two-decade decline in stock market listings to attract investment and revive growth, Norway’s $870 billion sovereign wealth fund, the world’s largest, said on Wednesday.
Governments must convince firms to go public by offering tax breaks and slashing red tape, while bankers should cut the cost of initial public offerings and index providers must include more stocks in benchmarks, the chief investment officer of Norges Bank Investment Management (NBIM) told Reuters………………………………………..Full Article: Source

Fashion house Balmain sold to Qatar’s Mayhoola sovereign wealth fund

Posted on 23 June 2016 by VRS  |  Email |Print

The Qatari investment fund that owns the Italian Valentino label will take over the French fashion house Balmain, which has become a favourite of film stars, the adviser for the acquisition has announced.
“After completing this transaction Mayhoola for Investments will hold 100% of Balmain’s capital,” said the merger and acquisitions company Bucephale Finance. The French financial daily Les Echos in reporting on the acquisition said the Qataris offered €485m (£372m) for Balmain, which is 70% held by the heirs of the former CEO, Alain Hivelin, who died in December 2014, with the remaining 30% held by management………………………………………..Full Article: Source

World’s 2nd-Biggest Sovereign Fund Sees Oil Glut Until Mid-2017

Posted on 23 June 2016 by VRS  |  Email |Print

The global oil glut will probably persist until at least next summer as markets take time to absorb excess crude in storage, according to the head of research at the world’s second-largest sovereign wealth fund.
Supply and demand for oil are coming back into balance, and the response of shale producers to rising prices will help determine how high crude can go, Christof Ruehl, the global head of research at Abu Dhabi Investment Authority, said……………………………………….Full Article: Source

GIC said to be selling two Paris buildings

Posted on 23 June 2016 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC is in talks to sell two buildings in the Paris central business district valued at about €500 million (S$756 million) to Societe Generale’s insurance unit, according to people with knowledge of the discussions.
The adjacent properties, in Rue d’Astorg and Rue de la Ville- l’Eveque, include the French headquarters of law firm Clifford Chance, said the people, who asked not to be identified because the deal has not yet been completed and could still fall apart………………………………………..Full Article: Source

India eases foreign investment rules for airlines

Posted on 22 June 2016 by VRS  |  Email |Print

India eased rules for foreign investment in the country’s aviation sector in a bid to boost air travel and develop new airports in Asia’s third-largest economy. Indian carrier IndiGo’s CEO Akbar Al Baker had earlier said Qatar attempted to invest at the time of IndiGo’s IPO but government regulations and lack of time prevented the country’s sovereign wealth fund from doing so.
“We had to do it with our parent company, and our parent organisation, which is our sovereign fund, and to do that, we needed more time and the time was too short for us to move on this,” Al Baker said………………………………………..Full Article: Source

CCB shares little changed after Temasek cuts stake

Posted on 22 June 2016 by VRS  |  Email |Print

Shares of China Construction Bank (CCB) are moving in a narrow range on the Hong Kong stock market. Selling of CCB shares increased after the bank on Monday announced that Temasek Holdings, a Singapore sovereign wealth fund, has sold 555 million CCB shares, or 0.22% of the bank’s outstanding shares.
As a result, Temasek’s stake in CCB has dropped to 4.81% from 5.03%. CCB made the announcement after the end of the day’s trading, saying Temasek made the move to help balance its shareholdings………………………………………..Full Article: Source

What You Need to Know About Abu Dhabi’s Plan for a Megabank

Posted on 22 June 2016 by VRS  |  Email |Print

National Bank of Abu Dhabi PJSC and First Gulf Bank PJSC, the two largest banks in the oil-rich emirate of Abu Dhabi, said on Sunday that they’re in early stage merger talks. Given both NBAD and FGB’s ties to the government — NBAD is 69 percent owned by sovereign wealth fund Abu Dhabi Investment Council — political will is paramount to the deal’s successful conclusion.
The creation of a new regional banking powerhouse would also coincide with Abu Dhabi’s ambitions to boost its status as a finance hub. A combination would create a regional powerhouse with assets of about $170 billion and a larger market valuation than Deutsche Bank AG and Credit Suisse Group AG………………………………………..Full Article: Source

SOFAZ announces gold reserves portfolio

Posted on 21 June 2016 by VRS  |  Email |Print

Currently, Azerbaijan’s state oil fund SOFAZ has no plans to convert purchased gold to other assets, as well as purchase additional gold, the Fund said. As for gold investments strategy, SOFAZ said these investments have been chosen for strategic purposes, but not short-term speculative targets.
“As it is known, according to SOFAZ investment policy, up to 5% of investment portfolio may be invested in gold. Currently, gold reserves make 30,175 kilograms (970,146 troy ounces). Generally, investing in gold attaches importance in terms of diversification of investment portfolio as an insurance against factors such as economic collapse, exchange rate risks and inflation”, SOFAZ said………………………………………..Full Article: Source

Temasek sells 555 million shares in China Construction Bank

Posted on 21 June 2016 by VRS  |  Email |Print

Singapore’s state-owned investment firm Temasek Holdings Pte reduced its stake in the Hong Kong-listed shares in China Construction Bank Corp, according to a filing by the Chinese lender to the Shanghai stock exchange.
Fullerton Financial Holdings, an affiliate of Temasek, sold the shares at HK$5.01 apiece (87 Singapore cents) on June 16, according to the filing, valuing the block at HK$ 2.78 billion. Fullerton owned 5.88 per cent in China Construction Bank before the sale, reducing its stake to 5.66 per cent, according to data compiled by Bloomberg………………………………………..Full Article: Source

Malaysia fund threatens to fight back

Posted on 21 June 2016 by VRS  |  Email |Print

Troubled Malaysian state investment vehicle 1Malaysia Development Berhad (1MDB) said on Friday (June 17) it plans a “robust response” to an Abu Dhabi sovereign wealth fund’s move to seek US$6.5 billion (S$8.8 billion) via international arbitration of a debt dispute.
The Abu Dhabi fund, International Petroleum Investment Co (IPIC), said on Tuesday that it had submitted a request to the London Court of International Arbitration to intervene in the row. “1MDB will file a robust response to the RFA (request for arbitration)”, 1MDB, or 1Malaysia Development Berhad, said in a brief statement………………………………………..Full Article: Source

Qatar-backed Volkswagen group to phase out more than 40 car models

Posted on 21 June 2016 by VRS  |  Email |Print

Volkswagen brand sales held broadly stable in May, with gains in Europe and China offsetting declines in the Americas, as the carmaker keeps battling its diesel emissions scandal. VW, which is 17 percent owned by the Qatar Investment Authority (QIA), has been largely on the defensive since US authorities revealed in September it had admitted rigging exhaust emission tests on some diesel-powered models.
For weeks, it volunteered little information about the extent of the cheating, instead reacting guardedly to a flood of revelations and allegations………………………………………..Full Article: Source

Investors seeking VW reform may be disappointed at AGM

Posted on 21 June 2016 by VRS  |  Email |Print

Investors hungry for reform at Volkswagen after the diesel emissions test-cheating scandal may be disappointed at the carmaker’s annual shareholder meeting on Wednesday.
Norway’s sovereign wealth fund, the world’s largest, said last month it planned to join the class-action lawsuits filed against Volkswagen. The California State Teachers’ Retirement System (CalSTRS) has also said it plans to participate in a German securities litigation suit against Volkswagen………………………………………..Full Article: Source

Russia sanctions to be lifted by year-end: Sovereign wealth fund chief

Posted on 20 June 2016 by VRS  |  Email |Print

European sanctions imposed on Russia two years may be lifted by the end of 2016, the chief executive of Russia’s sovereign wealth fund said. The U.S. and the European Union introduced sanctions against Russian companies and individuals with links to Moscow after Russia’s annexation of Crimea in 2014. The 28-country EU will meet next month to decide whether to renew them.
“We expect sanctions to be lifted by the end of the year,” Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF) told CNBC in Russia at the St. Petersburg International Economic Forum………………………………………..Full Article: Source

Flash Boys Hero Wins, Wealth Funds Rejoice

Posted on 20 June 2016 by VRS  |  Email |Print

On Friday June 17th, IEX Group Inc., the company founded by Brad Katsuyama, won SEC approval to run a U.S. stock exchange. IEX will be the 13th U.S. national stock exchange certified by the SEC. Before the approval, IEX ran as an alternative trading system. IEX garnered additional fame when it was included in Michael Lewis’ book “Flash Boys: A Wall Street Revolt.”
“We thank sovereign and domestic funds for the broad support they have provided throughout this process, which demonstrates that we are providing real value for the long-term investors that the markets are meant to serve. Getting approval as an exchange gives these investors and the millions of beneficiaries they represent an important new choice that puts their interests front and center.” John Ramsay, Chief Market Policy Officer at IEX said………………………………………..Full Article: Source

Temasek sets up panel of advisers for Americas

Posted on 17 June 2016 by VRS  |  Email |Print

Temasek Holdings announced the formation of an advisory panel yesterday that comprises some of the most eminent business figures in the Americas. The Temasek Americas Advisory Panel (TAAP), which held its first meeting this week in New York, has seven members, including PepsiCo chairman and chief executive Indra Nooyi, Honeywell International chairman and CEO David Cote, and former US treasury secretary Timothy Geithner, who also chairs TAAP.
The other members are former DuPont chairman and CEO Ellen Kullman; online education platform Coursera CEO Richard Levin; Mr Ronald Sugar, the former chairman and CEO of defence giant Northrop Grumman; and the former chairman and CEO of agribusiness Bunge, Mr Alberto Weisser………………………………………..Full Article: Source

LIC willing to be partner in India’s maiden sovereign wealth fund

Posted on 16 June 2016 by VRS  |  Email |Print

India’s largest insurer LIC on Wednesday said it is willing to participate in India’s maiden sovereign wealth fund National Investment and Infrastructure Fund (NIIF) as the state-owned company’s own core focus is also on infrastructure investment. “LIC has enough funds to invest in NIIF. LIC’s core focus is infrastructure investment. There is no problem in investment quantum,” LIC Chairman S K Roy said.
The government has set up the Rs.40,000 crore NIIF to facilitate funding in infrastructure projects. NIIF has already signed an MoU with Russia’s Rusnano, the Abu Dhabi Infrastructure Authority (ADIA) and the Qatar sovereign wealth fund, Quatar Investment Authority (QIA) to study investment opportunities in the Indian infrastructure sector………………………………………..Full Article: Source

Uber’s Chinese Rival Nabs $7.3 Billion In Funding War

Posted on 16 June 2016 by VRS  |  Email |Print

Anything Uber can do, Didi can do better? That’s the message coming from the ongoing fundraising war among ride-sharing companies. Didi Chuxing (aka Didi Kuaidi) announced on Thursday morning in China that it has completed a $7.3 billion financing round, including debt.
The announcement comes on the heels of Uber’s recent financing of more than $5.5 billion from the likes of the Saudi Arabia sovereign wealth fund, car maker Toyota, investment funds like Tiger Global Management and T. Rowe Price, and private wealth clients at Morgan Stanley and Bank of America………………………………………..Full Article: Source

Libyan fund alleges Goldman took advantage of its inexperience

Posted on 15 June 2016 by VRS  |  Email |Print

Libya’s sovereign wealth fund, in a long-awaited trial that started on June 13, alleged Goldman Sachs took advantage of its lack of financial sophistication to draw it into losing trades. Emails in the case show Goldman executives saying that the Libyan fund had little experience in finance. “They are very unsophisticated – and anyone could ‘rape’ them,” one executive wrote in 2008.
In another internal email exchange, a Goldman executive wrote to a colleague that “you just delivered a pitch on structured leveraged loans to someone who lives in the middle of the desert with his camels”………………………………………..Full Article: Source

Kuwait fund intends to dispose of Areva stake

Posted on 15 June 2016 by VRS  |  Email |Print

Sovereign wealth fund Kuwait Investment Authority (KIA) has told French authorities that it wants to sell its stake in nuclear group Areva, according to a report. Areva, with its partner Électricité de France, is in the race to win the contract for the 9,600MW of SA’s new nuclear power. The fund is Areva’s second-biggest shareholder, with a 4.82% stake, according to ThomsonReuters data.
The La Lettre de l’Expansion weekly newsletter said the Kuwaiti fund had complained that its investment in Areva, which is majority-owned by the French government, was made based on incorrect company accounts………………………………………..Full Article: Source

Middle East sovereign funds sell assets as low oil bites -study

Posted on 14 June 2016 by VRS  |  Email |Print

Middle Eastern sovereign wealth funds liquidated or cancelled investments worth about 7 percent of their total assets last year, according to a study released on Monday by asset manager Invesco, in a sign of pressure from low oil prices.
State budgets in the six-nation Gulf Cooperation Council (GCC) and other oil exporters have fallen into deficit because of shrunken oil revenues, forcing governments to eat into their savings. “Outflows from Middle East funds are not surprising, given the volatility we have seen in the oil markets. However, sovereign investor confidence remains high despite the challenging funding environment and difficult market conditions,” said Alex Millar, head of institutional sales for the Middle East and Africa at Invesco………………………………………..Full Article: Source

Kuwait fund wants to sell French nuclear group Areva stake -media

Posted on 14 June 2016 by VRS  |  Email |Print

Sovereign wealth fund Kuwait Investment Authority (KIA) has told French authorities it wants to sell its stake in nuclear group Areva, La Lettre de l’Expansion reported on Monday.
KIA is Areva’s second-biggest shareholder with a 4.82 percent stake, according to ThomsonReuters data. The newsletter said the Kuwaiti fund had complained that its investment in Areva, which is majority owned by the French government, was made based on incorrect company accounts………………………………………..Full Article: Source

Norwegian oil fund draws up plans to protect assets from extreme political events

Posted on 14 June 2016 by VRS  |  Email |Print

The Norwegian oil fund has drawn up plans to protect its assets from extreme political events such as military invasion or coup. According to the Financial Times, the Norges Bank Investment Management said the oil fund had looked at various scenarios which represent a threat to the fund’s holdings.
It is understood the fun is helping other state-run entities to draw up protective policies to safeguard their assets in case of a similar threat. Sovereign wealth funds are looking to protect their assets following the outbreak of civil war in Libya, which led to questions over who is the rightful guardian of the country’s $66billion sovereign wealth fund………………………………………..Full Article: Source

Chinese car-hailing app Didi Chuxing receives $600 mn investment

Posted on 14 June 2016 by VRS  |  Email |Print

The latest fund-raising comes with China’s top ride-hailing company locked in a struggle to fend off its global rival’s march into China. Uber raised $3.5 billion from Saudi Arabia’s sovereign wealth fund in new resources earlier this month.
Chinese car-hailing app Didi Chuxing said on Monday it had received an investment of about $600 million from China Life Insurance Co Ltd, boosting resources to fund its battle with Uber just a month after it raised $1 billion from Apple Inc………………………………………..Full Article: Source

Sovereign funds rethink strategies

Posted on 13 June 2016 by VRS  |  Email |Print

Having gone from bumper cash inflows to redemptions in just two years, many sovereign wealth funds have been forced to shake up their investment strategies to embrace both super-liquid safe assets with more esoteric illiquid plays to bolster returns.
If the price of retaining easy-to-sell assets to meet sudden government cash calls is near-zero yields in cash deposits or Western government debt, then the $6.5 trillion sovereign fund sector will have to claw back returns by simultaneously moving deeper into riskier, less-liquid territory………………………………………..Full Article: Source

Trinidad makes $375m withdrawal from sovereign wealth fund

Posted on 13 June 2016 by VRS  |  Email |Print

Trinidad & Tobago, the Caribbean’s largest oil and natural gas producer, joined Qatar, Russia and other energy-rich nations by tapping its sovereign wealth fund after low oil prices left the government with a budget shortfall, Finance Minister Colm Imbert said Friday.
The twin-island country, located off the coast of Venezuela, dipped into its $5.5 billion (Dh20.2 billion) Heritage and Stabilisation Fund for the first time since it was created in 2007, withdrawing $375 million. “The purpose of this fund is to offset serious shortfalls in revenue in periods of depressed petroleum prices,” Imbert said during a session of Parliament in Port of Spain………………………………………..Full Article: Source

NIIF in MoU with Qatar sovereign wealth fund

Posted on 10 June 2016 by VRS  |  Email |Print

After Abu Dhabi Investment Authority, another sovereign wealth fund from West Asia, the Qatar Investment Authority (QIA), has showed interest in India’s National Investment and Infrastructure Fund (NIIF).
After Abu Dhabi Investment Authority, another sovereign wealth fund from West Asia, the Qatar Investment Authority (QIA), has showed interest in India’s National Investment and Infrastructure Fund (NIIF). During Prime Minister Narendra Modi’s visit to the Gulf country on June 5, the NIIF entered into a memorandum of understanding (MoU) with QIA, Qatar’s sovereign wealth fund, to facilitate it to study investment opportunities in the infrastructure sector in India………………………………………..Full Article: Source

Microsoft Accelerator partners Singapore state fund Temasek to aid startups

Posted on 10 June 2016 by VRS  |  Email |Print

The accelerator arm of global information technology (IT) major Microsoft and Singapore’s state investment major Temasek Holdings have entered into a strategic partnership to drive the growth of startup ventures.
In a blog post, the general manager of Microsoft Accelerator, Scott Coleman, shared: “Microsoft and Temasek have agreed to collaborate on deal flow in four of our accelerator locations – Berlin, Seattle, Tel Aviv, and Bangalore – with six of its portfolio companies — Ascendas, InnoVen Capital, Quann, ST Engineering, CapitaLand Limited, and Fullerton Financial – on board as partners. We believe this partnership will help startups in our accelerator program scale significantly and quickly reach global markets.”……………………………………….Full Article: Source

Slowly but surely, hanky panky in 1MDB will see light

Posted on 08 June 2016 by VRS  |  Email |Print

Any fool can smell a rat when someone demands immediate cash payment of US$3 billion to finance a long-term property development project that has not even taken off the ground. Worse, when that mountain of cash is dumped into a little known private bank, against all norms.
How could a world’s leading investment bank with a wealth of experience in such financing, fail to detect something gravely wrong was taking place in a client which happened to be the sovereign wealth fund of a country? Wall Street Journal report provided a connection between the US$3 billion bond urgently raised by 1MDB in March 2013 and the US$681 million (the infamous RM2.6 billion) that landed in PM Najib Razak’s personal AmBank account………………………………………..Full Article: Source

Failure to create sovereign wealth fund ‘real missed opportunity’: NDP

Posted on 08 June 2016 by VRS  |  Email |Print

The Saskatchewan government’s failure to act on a three-year-old report recommending the establishment of a sovereign wealth fund is a “real missed opportunity,” according to the interim leader of the Opposition NDP.
“It’s frankly unacceptable that we’ve come through a decade-long period of record revenues without having any long-term savings,” said Trent Wotherspoon, who was appointed interim leader of the Saskatchewan NDP in April. In 2013, Premier Brad Wall commissioned former University of Saskatchewan president Peter MacKinnon to investigate sovereign wealth funds — large investment vehicles funded by profits from natural resource extraction………………………………………..Full Article: Source

Qatar state fund buys Singapore office tower that is home to Google in US$2.45 billion deal

Posted on 07 June 2016 by VRS  |  Email |Print

Asia Square Tower One is being sold by BlackRock in the largest single-tower real estate transaction in the Asia Pacific to date. Qatar Investment Authority, the country’s sovereign wealth fund, has agreed to buy the Asia Square Tower One office complex in Singapore for a reported US$2.45 billion from investment firm BlackRock, in the largest single-tower real estate transaction in the Asia Pacific to date.
Real estate consultancy JLL, who advised on the deal, said in a media release that the transaction was also the second-largest single-tower deal globally………………………………………..Full Article: Source

Temasek Left Out of Fundraising Deal for China’s WeBank

Posted on 07 June 2016 by VRS  |  Email |Print

Foreign investors have been excluded from investing in internet bank after China’s banking regulator expressed concerns about foreign ownership. Foreign investors have been excluded from investing in a Chinese internet bank backed by social-network giant Tencent Holdings Ltd. after China’s banking regulator expressed concerns about foreign ownership, people familiar with the situation said.
Earlier this year, U.S. private-equity firm Warburg Pincus and Singapore state-owned investment firm Temasek Holdings Pte. Ltd. were near a deal to lead a $450 million investment round for WeBank, which would have valued the online bank at roughly $5.5 billion………………………………………..Full Article: Source

QIA, NIIF pact to boost infra investment: Finance Ministry

Posted on 06 June 2016 by VRS  |  Email |Print

The agreement between National Investment and Infrastructure Fund (NIIF) and Qatar Investment Authority will boost infrastructure investments, Finance Ministry said. “MoU signed between NIIF and Qatar Investment Authority (QIA) during Prime Minister’s visit. Will facilitate investments in infra projects,” Economic Affairs Secretary Shaktikanta Das tweeted.
This is the third MoU of NIIF after those with Rusnano of Russia and ADIA of Abu Dhabi. “Things taking shape. NIIF to play big role in infra sector,” Das added. He said the government keenly working on enhancement of infra investments………………………………………..Full Article: Source

India is hoping to tap Qatar sovereign wealth fund

Posted on 06 June 2016 by VRS  |  Email |Print

India and Qatar signed seven agreements, including on investment and tourism promotion, following delegation level talks headed by Prime Minister Narendra Modi and Qatar Emir Tamim bin Hamad Al Thani. India is hoping to tap the Gulf nation’s sovereign wealth fund, estimated at $300 billion, for infrastructure projects.
According to one memorandum of understanding (MoU), Qatar will invest in India’s National Investment and Infrastructure Fund (NIIF). The government had set up the Rs400 billion NIIF last year for enhancing infrastructure financing in India………………………………………..Full Article: Source

African SWFs to meet in New York

Posted on 06 June 2016 by VRS  |  Email |Print

Africa investor (Ai), a leading international investment and communications group, announced recently that global institutional investors and US pension fund leaders will meet with African pension and sovereign wealth funds (SWFs) and capital market leaders at the Ai Pension and Sovereign Wealth Fund Forum in New York in September.
In May of this year, Africa investor convened African institutional investors (comprising Africa’s largest and most active pension and sovereign wealth fund investors) to engage and explore ways to encourage and promote pension and SWF investing in African infrastructure investment opportunities, as well as co-investments amongst African and international pension and SWFs………………………………………..Full Article: Source

Saudi Arabia invested $3.5 billion in Uber. That could be bad news for the global economy

Posted on 03 June 2016 by VRS  |  Email |Print

Uber has raised an astonishing $3.5 billion from Saudi Arabia’s sovereign wealth fund. It’s one of the biggest venture capital investments in history and brings Uber’s overall fundraising haul to $11 billion. But while Uber is bragging about the investment, it could reveal a troubling trend in investment trends overall.
In the long run, economic growth depends on our ability to convert cash into productive assets like factories, trucks, machinery, or computer software. But for the most part, recent “investments” in Uber aren’t like that. Uber is planning to use its billions to fund brutal, zero-sum price wars with competitors around the world………………………………………..Full Article: Source

Uber Raises $3.5 Billion from Saudi Arabia’s Sovereign Wealth Fund

Posted on 02 June 2016 by VRS  |  Email |Print

Uber Technologies Inc. raised $3.5 billion from the investment arm of Saudi Arabia, part of an arms race over the future of transportation that is attracting the world’s largest technology companies and auto makers.
The investment from Saudi Arabia’s Public Investment Fund extends a fundraising that totals $5 billion, the largest single investment for a venture-backed company. Including the latest contribution, Uber is valued at close to $68 billion, some $20 billion more than General Motors Co., the nation’s largest auto maker………………………………………..Full Article: Source

Future Fund’s David Neal to seek lower return target

Posted on 02 June 2016 by VRS  |  Email |Print

David Neal, head of the nation’s sovereign wealth fund, has confirmed the independent body will press Canberra for a lower return target as “elevated risks” present themselves across the globe. In a wide-ranging speech yesterday, Mr Neal also hit out at the financial sector, saying it had failed to generate the kind of trust required to make customers feel at ease.
The $117 billion Future Fund has a mandate to achieve 4.5-5.5 per cent annual growth above inflation and while it has met this target since its inception, on average, its chairman Peter Costello recently told The Australian a 2-3 per cent target might be more reasonable in the current environment………………………………………..Full Article: Source

Najib says foreign investors keen on Malaysia despite “noise”

Posted on 02 June 2016 by VRS  |  Email |Print

Prime Minister Najib Razak said on Wednesday that investor confidence in Malaysia is high and blamed the rising “noise levels” for a negative perception of the country, where a state-owned fund is at the centre of graft probes across the world.
Malaysia’s economy and markets have been rattled by a slowdown in China, slumping oil prices and a burgeoning financial scandal around 1Malaysia Development Berhad (1MDB), whose advisory board Najib had chaired. Companies and banks linked to 1MDB are being investigated for money-laundering in at least six countries, a big embarrassment for Najib who welcomed hundreds of business and political leaders to Kuala Lumpur for the World Economic Forum on ASEAN 2016………………………………………..Full Article: Source

Future Fund’s David Neal warns of ‘elevated risks’

Posted on 01 June 2016 by VRS  |  Email |Print

The head of the nation’s Future Fund has warned of “elevated risks” as the world struggles to fully recover from the global financial crisis, further explaining the fund’s big move into cash over the past year.
David Neal, managing director of Australia’s sovereign wealth fund, said policymakers were not in a position to respond should economic conditions take a turn for the worse, promoting caution at the fund. “What is different today is the world is ill-equipped to cope with a shock,” Mr Neal said……………………………………….Full Article: Source

Azerbaijan’s State Oil Fund sells $50M at auction to local banks

Posted on 01 June 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $40 million to three banks through an auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said May 31. Meanwhile, CBA acquired $10 million at the auction.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

GIC consortium said among bidders for stakes in Philippine power plants

Posted on 31 May 2016 by VRS  |  Email |Print

A group including Singapore’s sovereign wealth fund GIC is among suitors that have submitted bids for Sithe Global Power’s stakes in two Philippine power plants, people with knowledge of the matter said.
The consortium, including an infrastructure investment fund managed by Macquarie Group and Malaysian power company Malakoff Corp, submitted a non-binding offer for the stakes, the people said. The Blackstone Group-owned company’s sale could fetch more than US$1 billion, they said, asking not to be identified as the process is private………………………………………..Full Article: Source

Khazanah Temasek JV project to be ready in 2017

Posted on 30 May 2016 by VRS  |  Email |Print

The integrated Marina One and Duo developments, jointly-owned by Malaysia’s strategic investment fund, Khazanah Nasional Bhd and Singapore’s investment company, Temasek Holdings Pte Ltd, are set for completion in 2017.
“We are happy to share that both Marina One and DUO are on track for completion in 2017,” said Kemmy Tan, chief executing officer of M+S Pte Ltd, the project developer. Marina One has a gross development value (GDV) of S$7bil (RM20.72bil), while the overall DUO project has a GDV of S$4bil (RM11.84bil). Both projects were launched in mid-2012………………………………………..Full Article: Source

Will Temasek convert Iculs in SAM Engineering?

Posted on 30 May 2016 by VRS  |  Email |Print

Minority shareholders of SAM Engineering & Equipment (M) Bhd are likely to get a bounty dividend if the company’s major shareholder decides to convert a large chunk of its loan stocks.
The company, which manufacturers parts for aeroplanes and equipment for the semiconductor industry and ultimately owned by Singapore’s Temasek Holdings (Pte) Ltd, has consistently seen its dividend pay-out grow in the last three years. According to an investor, it only makes sense for Temasek to convert the Iculs because the dividends will give it higher returns than the 4% which the loan stock pays………………………………………..Full Article: Source

GIC among bidders for Sithe power assets

Posted on 30 May 2016 by VRS  |  Email |Print

A group including Singapore’s sovereign wealth fund GIC Pte is among suitors that have submitted bids for Sithe Global Power’s stakes in two Philippine power plants, people with knowledge of the matter said.
The consortium, including an infrastructure investment fund managed by Macquarie Group and Malaysian power company Malakoff Corp, submitted a non-binding offer for the stakes, the people said. The Blackstone Group-owned company’s sale could fetch more than $1bn, they said, asking not to be identified as the process is private. Aboitiz Power president Tony Moraza declined to comment, as did representatives for GIC and Marubeni………………………………………..Full Article: Source

The Take-Off of the Nigeria Sovereign Wealth Fund

Posted on 30 May 2016 by VRS  |  Email |Print

Professor Gordon L. Clark and Dr. Ashby Monk are two researchers known for their extensive work on Sovereign Wealth Funds (SWFs). Regular publications arising from their distilling research initiatives on different aspects/issues affecting sovereign wealth funds in all parts of the world get posted on the Oxford SWF Project website.
Policy makers, practitioners and other researchers regularly enrich their knowledge and understanding on the SWF subject matter by visiting this website from time to time. Under recent publications on this website is a paper jointly authored by Professor Gordon L. Clark and Dr. Ashby Monk and published with the link titled; Modernity, Institutional Innovation and the Adoption of Sovereign Wealth Funds in the Gulf States………………………………………..Full Article: Source

Kazakh sovereign fund seeks over $6b from privatisations

Posted on 30 May 2016 by VRS  |  Email |Print

Kazakh sovereign wealth fund Samruk-Kazyna plans to raise more than $6 billion from privatisations over the next five years, using the proceeds to help its companies repay debt, the fund’s managing director told Reuters on Thursday.
The sale will start with small companies. Public offerings of stakes in the fund’s crown jewels, such as national oil company KazMunayGaz, will be the last deals to happen and will take place after 2018, Berik Beisengaliyev said in an interview. “The balance sheet value of those assets (earmarked for privatisation) is between $6.0-7.3 billion at the current exchange rate,” Beisengaliyev said………………………………………..Full Article: Source

Saudi wealth fund PIF said to mull $8bn bid for Riyadh hub

Posted on 27 May 2016 by VRS  |  Email |Print

Saudi Arabia’s Public Investment Fund, the wealth fund headed by Deputy Crown Prince Mohammed bin Salman, is likely to make an offer next month to buy Riyadh’s unfinished financial hub as the government attempts to rehabilitate a project plagued by delays and cost overruns.
The fund may pay about 30bn riyals ($7.9bn) – the amount already spent on the King Abdullah Financial District by the Saudi Public Pension Agency – plus the cost of undeveloped plots, a person with knowledge of the matter said, asking not to be identified as discussions are private. The plan includes a new company to oversee the project’s completion and management………………………………………..Full Article: Source

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