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Modi visit: UAE’s USD 800 bn sovereign wealth fund likely in talks

Posted on 13 August 2015 by VRS  |  Email |Print

A key focus area of talks during Prime Minister Narendra Modi’s visit to the UAE on August 16-17 is expected to be the Gulf country’s estimated $800 billion sovereign wealth fund that India will seek to tap for infrastructure projects.
The Abu Dhabi Investment Authority (ADIA) sovereign wealth fund is said to be the world’s second largest sovereign wealth fund. It is believed to be one of the investors in HDFC’s $1-billion offshore fund to finance affordable housing projects in India. Modi’s visit comes as the UAE has appointed Ahmad Sultan Al Falahi as the new trade attache at the United Arab Emirates embassy in New Delhi………………………………………..Full Article: Source

Indian PM Narendra Modi eyes UAE’s $800 billion sovereign fund to boost infrastructure spending

Posted on 13 August 2015 by VRS  |  Email |Print

Narendra Modi, whose foreign visits over the past year was aimed at attracting much needed foreign investment to boost the economy, would try to lure a share from $800-billion sovereign fund of the UAE for infrastructural needs as well as give momentum to Bilateral Investment Protection Agreements (BIPA) that has not functioned to its potential to attract investments.
Buoyed by the oil economy, UAE sovereign wealth fund is estimated at over $800 billion and Modi would like to attract part of this fund, imperative for the country’s infrastructural needs estimated at one trillion dollars, officials hinted. The Abu Dhabi Investment Authority (ADIA) is the sovereign wealth fund owned by Emirate of Abu Dhabi (in the UAE) founded for the purpose of investing funds on behalf of the Government of the Emirate of Abu Dhabi………………………………………..Full Article: Source

Top wealth fund says half its stock trades now outside exchanges

Posted on 13 August 2015 by VRS  |  Email |Print

Up to half of all shares traded by the world’s largest sovereign wealth fund are bought and sold outside of stock markets in a bid to cut transaction costs, a fivefold rise since 2010, a senior executive at Norges Bank Investment Management (NBIM) said.
The manager of Norway’s $873 billion oil fund is gradually moving away from automated trading in favor of a measured approach that even includes the services of stockbrokers, Chief Investment Officer for Asset Strategies Oyvind Schanke said. In a recent report, NBIM argued that global stock exchanges are failing to meet the needs of large institutional investors as the race towards ever faster buying and selling is both unnecessary and costly, benefiting only high-frequency traders………………………………………..Full Article: Source

Norway’s Sovereign Wealth Fund Pinched by Cheap Oil (Video)

Posted on 13 August 2015 by VRS  |  Email |Print

In today’s “Single Best Chart,” Bloomberg’s Brendan Greeley displays how the decline in oil revenues in Norway is impacting the nation’s budget and sovereign wealth fund investments. He speaks on “Bloomberg Surveillance.”.………………………………………Full Article: Source

Norway’s Sovereign Wealth Fund Blasts HFT

Posted on 13 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund suggests stock exchange operators should abandon the race for faster data systems and instead focus on innovating for a changing investor landscape. Norges Bank Investment Management (NBIM), which holds over $500 billion in global equities, called for a more fundamental revamp of trading on exchanges in a recent white paper.
NBIM, one of the world’s largest equity managers, in its white paper titled: “Role of exchanges in well-functioning markets” argues that stock exchanges are growing increasingly unsuited to modern trading because of the growth of institutional investment………………………………………..Full Article: Source

Macquarie advisers jump ship to Sovereign Wealth

Posted on 12 August 2015 by VRS  |  Email |Print

A senior Macquarie Private Wealth team has departed the bank’s Sydney office and is starting its own firm, Sovereign Wealth Partners, providing yet another example of the trend to boutiques. overeign Wealth will be majority-owned by advisers Jeffrey Wrightson, Stephen Thaxter, Chris Forrest and Nina Kazmierczak, while Bennelong Wealth Partners is taking a minority stake as it builds up its incubator business.
The advisers all exited after long stints at Macquarie including 15 years for Wrightson and 24 years for Thaxter. Macquarie is among firms overhauling private wealth divisions in the past six months following a review of remuneration, training and other factors. Sovereign Wealth, while at a smaller scale, follows the spin-offs of UBS Wealth Management and Wilson HTM from their parent companies………………………………………..Full Article: Source

2008 Was a Walk in the Park, But $50 Oil is Norway’s Worst Nightmare

Posted on 12 August 2015 by VRS  |  Email |Print

Scandinavia’s richest country may need to withdraw money from its sovereign wealth fund to plug its budget gap if the price of oil remains below $50 a barrel. Norway’s resource-rich economy escaped the worst of the 2008 financial crisis, with high oil prices ensuring robust growth.
However, with Norway’s oil and gas exports accounting for more than half of the country’s exports in 2014, worth around 500 billion kronor [$57 billion], the country may be forced to dip into its vaunted $900 billion sovereign wealth fund unless spending is cut. ……………………………………….Full Article: Source

2015: Strong Start for Sovereign Wealth Fund Deals

Posted on 11 August 2015 by VRS  |  Email |Print

Despite a possible future slowdown in the global economy, direct sovereign wealth fund transactions for the first half of 2015 conquered the first half of 2014. According to the Sovereign Wealth Fund Transaction Database (SWFTD), wealth funds generated US$ 64 billion worth of deals in the first half of 2015 versus US$ 52 billion in the first half of 2014. While this trend is promising in regard to wealth funds acquiring more in the first half of 2014, SWFI recorded 910 observations versus 833 observations in the first half of 2015.
These institutional investors became slightly more bullish in direct investing in developed markets in 2015. In Europe, the United Kingdom received the most wealth fund inflows of direct investment in the first half of 2015, some US$ 21.1 billion, trumping their peers. However, more sovereign investors embarked on investing in continental Europe real estate versus a strong preference toward London………………………………………..Full Article: Source

Norway might have to dip into its savings

Posted on 11 August 2015 by VRS  |  Email |Print

If the government has to withdraw money from its $875 billion sovereign wealth fund, it will be a historical step. It’s either that, or heavily rein in fiscal spending at a time when the country needs it most. The state’s spending could start to outstrip income from oil, which it pours into its wealth fund for future generations.
Taking money from the fund wasn’t planned for at least a few decades and no finance minister wants that to be their legacy. Approaching that withdrawal will spawn an ugly debate about what got Norway there faster than expected, and maybe even new legislation………………………………………..Full Article: Source

Temasek Keen to Build Bantaeng Port

Posted on 11 August 2015 by VRS  |  Email |Print

Temasek Holding, an investment firm from Singapore, is keen to build Bantaeng port in South Sulawesi which will cost about Rp4 trillion, Investor Daily reported this morning. he government of Bantaeng regency and Temasek will in near term sign the memorandum of understanding (MoU) for this project.
Consortium of PT Samudera Indonesia and Mitsubishi, also consortium of BTN Power (Malaysia), China Maschinery Engineering Corporation, and PT Terminal Borneo Indonesia have previously expressed their interest to build port and industrial area in Bataeng………………………………………..Full Article: Source

Stock exchanges must improve trading model - Norway wealth fund

Posted on 10 August 2015 by VRS  |  Email |Print

Global stock exchanges are failing to meet the needs of large institutional traders and are increasingly losing out to private equity when companies seek to raise cash, the world’s largest sovereign wealth fund said in a report published on Friday. The Norwegian Government Pension Fund Global, with assets of $875 billion, owns about 1.3 percent of listed shares globally and is also a large investor in bonds and real estate.
In a report on the role of stock exchanges, Norges Bank Investment Management (NBIM), which manages the fund, said while regulated markets are vital to investors, the focus should not only be on the speed of trade but also on how large trades are executed………………………………………..Full Article: Source

KSA may increase focus on nonoil revenue generation

Posted on 10 August 2015 by VRS  |  Email |Print

Pressure on Saudi Arabia’s state finances is mounting as oil prices fall but the latest official figures suggest the world’s top crude exporter still has at least several years before it faces a budget crunch. A study by a former SAMA official released last week said the world might have entered a sustained period of low oil prices, leaving Riyadh vulnerable down the road.
But data released by Saudi Arabian Monetary Agency (SAMA) last week showed the Kingdom still far from any fiscal crisis. Net foreign assets at the bank — the best indicator of Riyadh’s fiscal strength, since the bank acts as a sovereign wealth fund — fell $59.8 billion from the end of 2014 to $664.5 billion in June………………………………………..Full Article: Source

Can Putin Save Russia’s Struggling Companies?

Posted on 07 August 2015 by VRS  |  Email |Print

The government and central bank are spending billions trying. The government says it’s prepared to spend as much as 60 percent of a $75 billion sovereign wealth fund to help provide financing for companies as well as major industrial and infrastructure projects. It’s also pressuring the central bank to expand its project finance program. Including the money in the sovereign wealth funds, the government has $358 billion in foreign currency reserves and gold. So why not put some to work aiding businesses?
If crude oil remains close to the current price of about $50 a barrel next year, the Kremlin is likely to deplete a $73 billion sovereign wealth fund it’s been using to fill a budget shortfall. In that case it would probably turn to the $75 billion wealth fund—originally intended to buttress the country’s pension system—now being tapped for corporate aid, says Dmitry Polevoy, chief Russia economist at ING Bank Eurasia in Moscow………………………………………..Full Article: Source

Singapore brings more connectivity to China

Posted on 06 August 2015 by VRS  |  Email |Print

China has good reasons to encourage more cooperation with Singapore. The Shanghai Stock Exchange has stumbled in the past few weeks. Nevertheless, Singaporean investment firms have not lost hope. The Singapore sovereign wealth fund, GIC, which manages over $US 344 billion in assets, has vowed to keep buying into China’s volatile stock market.
According to its July 21 filing, the world’s eighth largest sovereign wealth fund holds 52 listed stocks in China, valued at over $US 7 billion. “It did open up some opportunities for people like us, who take a longer term view and we don’t have such kinds of liquidity constraints,” Lim Chow Kiat, GIC chief investment officer, told CNBC business news. “That’s a clear positive.”……………………………………….Full Article: Source

India: Infratweets: Boosting infra companies

Posted on 05 August 2015 by VRS  |  Email |Print

The National Infrastructure and Investment Fund, proposed by finance minister Arun Jaitley in Budget 2015, mimics a Sovereign Wealth Fund with a domestic infrastructure bias. The National Infrastructure and Investment Fund, proposed by finance minister Arun Jaitley in Budget 2015, mimics a Sovereign Wealth Fund with a domestic infrastructure bias.
Over and above demonstrating the NDA government’s policy of creatively using off-budget resource raising measures, it is also a relevant vehicle to monetise the goodwill and channelise external investments from Prime Minister Narendra Modi’s very successful diplomatic outreach efforts………………………………………..Full Article: Source

India’s new ‘SWF’ faces project shortage, questions on accountability

Posted on 04 August 2015 by VRS  |  Email |Print

After stitching together the country’s first sovereign fund - National Investment & Infrastructure Fund or NIIF - the government might find it difficult to get projects that are commercially viable. While explaining the fund and its functions to scribes, the minister of state for finance, Jayant Sinha, said that in the present scenario there is ample capital available worldwide. However, he admitted that there is a paucity of projects.
According to Sinha, the government is in touch with several pension funds across the world, endowments, and sovereign funds along with development banks to pick up 51 per cent equity in the fund and infuse Rs 20,000 crore-odd in it (the government will provide Rs 20,000 crore annually for a 49 per cent stake)………………………………………..Full Article: Source

German investment professionals back launch of sovereign wealth fund

Posted on 04 August 2015 by VRS  |  Email |Print

Nearly three-quarters of German investment professionals would back the creation of a sovereign wealth fund (SWF) to help address the country’s infrastructure needs. The German Federation of Financial Analysts and Asset Management (DVFA) found that 68.6% of its members backed the creation of a SWF that could help with “targeted, direct investments”, according to the association.
It noted that the countries traditionally associated with such funds financed them by putting aside their budget surplus. The German federal government is not currently in surplus, but, in accordance with a new law, it will not take on any new debts this financial year………………………………………..Full Article: Source

India’s ‘Sovereign Wealth Fund’ ready by December

Posted on 03 August 2015 by VRS  |  Email |Print

The proposed $3.2 billion (Rs 20,000-crore) National Investment and Infrastructure Fund (NIIF) will function as a sovereign wealth fund like Singapore’s Temasek and operate at “arm’s length” from the government, Minister of State for Finance Jayant Sinha said.
To be operational by the year end, NIIF will primarily focus on fund infusion in infrastructure projects — greenfield, brownfield and the stalled ones. “It will be a commercially oriented enterprise and will be located in Mumbai and operate at arm’s length from government,” Sinha said………………………………………..Full Article: Source

Opportunities for Singapore’s GIC in China market turmoil

Posted on 03 August 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC is finding fresh opportunities to invest in the volatile China market amid restrictions imposed by the regulator on investors who own large stakes in Chinese companies. “It did open up some opportunities for people like us which take a longer-term view and we don’t have such kinds of liquidity constraints. That is a clear positive,” Lim Chow Kiat, group chief investment officer, told Reuters as the fund unveiled its annual report.
Lim said that in view of the restrictions, some investors were selling shares in which they had minority stakes due to redemption pressure, allowing long-term investors to step in………………………………………..Full Article: Source

Temasek launches first ever TV ad

Posted on 03 August 2015 by VRS  |  Email |Print

Singapore’s 266 billion-dollar government investment firm Temasek Holdings has launched an SG50 ad campaign to assure Singaporeans it is looking after their future and wants “to leave no one behind.” The ad is the company’s first ever TV commercial.
A 77-seconds ad uploaded to Temasek’s YouTube channel yesterday, called ‘Growing with our nation’, begins with a young girl getting her parents out of bed. “Every day brings us the promise of discovery and endless possibilities. This is the beauty of the future,” the narrator in the commercial says………………………………………..Full Article: Source

SG SWFs betting on or shoring up PRC stock markets?

Posted on 03 August 2015 by VRS  |  Email |Print

When Europe called, Singapore put in the money. When US called, Singapore put in the money. Then, the financial tsunami hit US, spreading to Europe, and wiped a huge chunk off our nation’s assets … Harry Lee Kuan Yew (also known as Old Fart) quickly came out with some lousy excuses: our SWFs adopted a long term view!
Unlike Warren Buffett who had staff salaries and office rental to pay for and thus the need to dispose his investments at loss prices, Old Fart claimed that our SWFs did not have such costs to worry! First and foremost, in the long term everyone is dead! In fact, the Old Fart has been dead since March this year – and the values of the nation’s investments have not returned to the ORIGINAL COSTS of investments!……………………………………….Full Article: Source

Indonesia: The petroleum-fund concept confuses fuel price-floating

Posted on 03 August 2015 by VRS  |  Email |Print

Minister of Energy and Mineral Resources Sudirman Said suddenly came out last week with a strange petroleum-fund concept to defend the government’s inconsistency in the implementation of its fuel price-floating policy. The price-floating policy was launched earlier this year to gradually phase out the wasteful spending of taxpayer money on energy subsidies.
The main objectives of oil funds, which in most countries have become giant sovereign wealth funds, usually include the preservation of macroeconomic stability, ensuring fiscal-tax discipline, decreasing the dependence on future oil revenues and stimulating the development of renewable energy and providing inter-generational equality by retaining oil revenues for future generations………………………………………..Full Article: Source

Singapore’s GIC sees opportunities in China market turmoil

Posted on 31 July 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC is finding fresh opportunities to invest in the volatile China market amid restrictions imposed by the regulator on investors who own large stakes in Chinese companies. “It did open up some opportunities for people like us which take a longer-term view and we don’t have such kinds of liquidity constraints. That is a clear positive,” Lim Chow Kiat, group chief investment officer, said.
Lim said that in view of the restrictions, some investors were selling shares in which they had minority stakes due to redemption pressure, allowing long-term investors to step in………………………………………..Full Article: Source

Singapore’s GIC shifted focus from Europe to India, China & Southeast Asia in FY15

Posted on 31 July 2015 by VRS  |  Email |Print

Singapore’s GIC, one of the most active sovereign wealth funds in India, raised its exposure to Asia (outside Japan), making the continent its second-biggest geographical bet behind Americas last year, it said in its annual report.
In the previous year ended March 31, 2014, GIC had bet on European recovery with Europe being the sole region where it had hiked its exposure. The Americas region, including the United States (34 per cent), Latin America (4 per cent) and others (4 per cent), accounted for 42 per cent of its portfolio in the year to March 2014, against 44 per cent in FY13………………………………………..Full Article: Source

Bahrain’s Mumtalakat says seeking aviation acquisitions

Posted on 31 July 2015 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund plans to create a new subsidiary to invest in the aviation sector and hold assets such as beleaguered national airline Gulf Air. The proposed company, Falcon Holding, would aim to consolidate key aviation assets and implement government plans to increase activity in what it views as a lucrative sector.
Mumtalakat will continue to be the 100% owner of existing aviation assets – Gulf Air, Bahrain Airport Company and Gulf Aviation Academy – and provide “strategic guidance and support”, its chief executive Mahmood Al Kooheji told Gulf Daily News………………………………………..Full Article: Source

Managing Libya’s $67bn Sovereign Wealth Fund

Posted on 31 July 2015 by VRS  |  Email |Print

Libya is complicated. With two rival governments, controlling rival armies that themselves contain competing factions, it’s hardly surprising that control of one of Libya’s biggest assets, its $67-billion sovereign wealth fund, is also contested. To some extent, the battle for control of the Libyan Investment Authority (LIA) mirrors the divisions within Libya itself, while the seemingly random bag of assets that it owns could be a metaphor for the chaos afflicting so many aspects of Libyan society.
Attempting to bring some structure and direction to the fund is the Chairman of the Board of Directors at the LIA’s Tripoli headquarters, AbdulMagid Breish (pictured); also claiming to chair the company is Malta-based Hassan Bouhadi — more on this power struggle later………………………………………..Full Article: Source

Test train launched via Baku-Tbilisi-Kars in Turkey

Posted on 31 July 2015 by VRS  |  Email |Print

A test train has been launched via the Baku-Tbilisi-Kars (BTK) railway on the territory of Turkey, Turkish President Recep Tayyip Erdogan said at the Chinese-Turkish business forum in Beijing, TRT Haber TV channel reported July 30.
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) finances the project in accordance with the Azerbaijani president’s decree ‘On the implementation of the Baku-Tbilisi-Kars project activities’ dated February 21, 2007. President Erdogan also stressed the importance of the BTK project in the field of cargo transportation. Earlier it was reported that the railway construction project is planned to be implemented in 2015………………………………………..Full Article: Source

Singapore’s GIC sees opportunities in China market turmoil

Posted on 30 July 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC is finding fresh opportunities to invest in the volatile China market amid restrictions imposed by the regulator on investors who own large stakes in Chinese companies. “It did open up some opportunities for people like us which take a longer-term view and we don’t have such kinds of liquidity constraints. That is a clear positive,” Lim Chow Kiat, group chief investment officer, told Reuters as the fund unveiled its annual report.
Lim said that in view of the restrictions, some investors were selling shares in which they had minority stakes due to redemption pressure, allowing long-term investors to step in. China’s securities regulator earlier this month took the drastic step of banning shareholders with stakes of more than 5 percent from selling shares for the next six months in a bid to halt a plunge in stock prices………………………………………..Full Article: Source

CIC Launches Subsidiary to Invest in Overseas Projects

Posted on 30 July 2015 by VRS  |  Email |Print

China’s sovereign wealth fund has launched a subsidiary to handle investment in overseas infrastructure projects as part of government efforts to expand business abroad to shore up growth. China Investment Corp. held a ceremony to launch its new subsidiary, CIC Capital Corp., on July 27. The subsidiary will focus on infrastructure, agricultural, forestry and fishery projects abroad.
CIC Capital, which showed the government it had capital of US$ 5 billion to get a business license, is the result of expanding an old CIC unit that oversaw infrastructure investment abroad, the company said. A slowing economy has prompted the government to be aggressive in looking for business opportunities for state-backed businesses in foreign countries since 2013………………………………………..Full Article: Source

CIC Capital Officially Launched, Targets $100bln In Total Capacity

Posted on 30 July 2015 by VRS  |  Email |Print

An overseas direct investment fund launched by China Investment Corporation earlier this year has officially begun operation, and plans to reach US$100 billion in total investment capacity eventually, according to Chinese media reports.
The new investment platform, named CIC Capital Corporation, was registered in January with US$5 billion in capital. It will be responsible for making direct investments in markets outside of China in partnership with Chinese companies wishing to expand internationally………………………………………..Full Article: Source

LAP preparing ‘‘aggressive’’ rescue plan for LAP GreenN: to invest in new technology and growth

Posted on 30 July 2015 by VRS  |  Email |Print

The Libya Africa Portfolio (LAIP or LAP) is preparing an aggressive rescue plan for its troubled African telecoms subsidiary LAP GreenN, Libya Herald has learnt. LAIP is a wholly-owned subsidiary of the Libyan Investment Authority (LIA), Libya’s main sovereign wealth fund entity.
Sources have informed this publication that the shareholders of LAP GreenN are working on a restructuring plan. The plan will find solutions for the company to ensure its continuity and its ability to deliver better service and value for money for businesses and individuals across the countries where LAP GreenN has investments in the African market………………………………………..Full Article: Source

Southern Gas Corridor’s capitalization increases by over 7 times

Posted on 30 July 2015 by VRS  |  Email |Print

The Southern Gas Corridor CJSC’s registered capital increased up to $725 million upon the decisions of the Supervisory Board and the Shareholders’ Meeting, the State Oil Fund of Azerbaijan (SOFAZ) said. The company’s initial capital amounted to $100 million. But its capital increased to $300 million in February 2015 as a result of changes in the nominal share of the company.
“SOFAZ transferred $318.75 million to the treasury account of the country’s Ministry of Economy and Industry in the first half of 2015,” the statement said. “As a result, the share of the fund’s capital of the company has reached $369.75 million (51 percent).”……………………………………….Full Article: Source

Sovereign wealth funds pick up in popularity

Posted on 30 July 2015 by VRS  |  Email |Print

In recent years, sovereign wealth funds have grown in popularity, and subsequently, so too have their investment credentials. First appearing around the midpoint of last century, sovereign wealth funds (SWFs) have long occupied a significant space in financial markets. However it’s only in recent years that these rainy-day funds have come into their own.
Speaking at the 68th CFA Institute Annual Conference in May, the former CIO of the Korea Investment Corporation (South Korea’s SWF) Scott Kalb offered up some choice statistics on what he called an “active and powerful” opportunity. First was that at the end of 2014 the world’s 74 highest ranking SWFs held a colossal $7.7trn in assets, $3.3tn greater than in 2010 and significantly more than the $500bn held in 1990, according to the IMF………………………………………..Full Article: Source

Will Goodman bear the cost of China’s $2.45bn Investa swoop?

Posted on 29 July 2015 by VRS  |  Email |Print

China Investment Corporation’s $2.45 billion outlay on Investa’s portfolio of Australian skyscrapers has revived expectations the ­sovereign wealth fund will shed its $1bn-plus exposure to listed warehouser Goodman Group. While the Chinese heavyweight is not short on capital — its total assets under management climbed by $US93bn ($127bn) to $US750bn last year — the fund dislikes stakes in publicly owned property managers.
In 2012, CIC offloaded a 6.9 per cent slice in Sydney-based Goodman Group, crystallising a profit on its initial and much larger investment, which was made in the midst of the global financial crisis. The sovereign wealth fund, which proved a white knight for Goodman Group, also helped prop up Morgan Stanley when the developed world’s financial system threatened to collapse………………………………………..Full Article: Source

Investa acquisition just another day at the office for CIC

Posted on 29 July 2015 by VRS  |  Email |Print

It may be the biggest direct real estate transaction in Australia ever but China Investment Corporation’s acquisition of the $2.45 billion Investa portfolio of office towers is just the latest purchase in a $7 billion global property spend by the Chinese sovereign fund this year alone.
The Australian Financial Review first reported on Monday night that the CIC International had won the Investa Property Group portfolio of office towers with a bid just shy of $2.5 billion. It is the biggest direct real estate transaction in Australia to date and represents an extremely sharp initial yield of 5 per cent. But CIC, which was set up in 2007 to manage China’s foreign exchange reserves, has been making headlines all year for its property acquisitions………………………………………..Full Article: Source

China’s CIC wins $2.45b Investa office portfolio

Posted on 28 July 2015 by VRS  |  Email |Print

Chinese sovereign wealth fund China Investment Corporation (CIC) has won Investa Property Group’s portfolio of nine office towers with a knockout bid of more than $2.45 billion, making it the biggest direct real estate transaction in Australia’s history.
As foreshadowed by The Australian Financial Review, CIC’s acquisition will show an extremely sharp initial yield of 5 per cent, which could trigger a re-rating of the office sector. An agreement was struck early Monday evening. The deal marks the finish of one part of the long-running sale of the $9 billion Investa Property Group. Handled by UBS and Morgan Stanley, it is the biggest sell-side property transaction globally so far in 2015………………………………………..Full Article: Source

No pressure on Temasek to offload NOL, Drewry says

Posted on 28 July 2015 by VRS  |  Email |Print

Singapore’s Temasek may be interested in offloading some of its underperforming companies such as NOL, but there is no pressing need for the immense state investor to do it on the cheap through a distressed sale, Drewry says.
The analyst noted in its Container Insight Weekly that NOL’s prolonged period of losses have not put a scratch on the Temasek juggernaut, which is under no pressure to enter into a fire sale. Temasek owns around 67 percent of NOL, the listed holding company of container carrier APL………………………………………..Full Article: Source

Saudis to Boost Investment in Russia

Posted on 27 July 2015 by VRS  |  Email |Print

On 7 July, Saudi Arabia’s Public Investment Fund (PIF),the sovereign wealth fund of the Kingdom of Saudi Arabia declared its intent to follow through in co-investing up to $10 billion in the Russian Direct Investment Fund (RDIF). This is following up on a 21 June 2015 signing of a memorandum of understanding between the institutional partners.The RDIF was formed in 2011 in order to drive investment in high-growth sectors of Russia.
It can be seen as a part of former President Dmitry Medvedev’s plan to diversify the economy of Russia. The concept is centered around driving inward foreign direct investment by providing co-investment with other countries’ Sovereign Wealth Funds………………………………………..Full Article: Source

Atlantia, CIC, Macquarie, Allianz bidding for Tank&Rast

Posted on 24 July 2015 by VRS  |  Email |Print

Italian motorway operator Atlantia, Chinese sovereign wealth fund CIC, Australian infrastructure investor Macquarie and a consortium led by insurer Allianz are vying for Germany’s Tank&Rast, according to several people familiar with the deal. The four different groups are expected to hand in final bids of up to 3.5 billion euros ($3.84 billion) for the motorway service station group by a deadline set for next week, the sources added.
Terra Firma, run by British financier Guy Hands, is selling Tank&Rast, which operates 350 petrol stations and 390 service stations, with the help of Deutsche Bank and JP Morgan……………………………………….Full Article: Source

Leaked cables on the failed leadership transition of Temasek Holdings

Posted on 24 July 2015 by VRS  |  Email |Print

6 years ago, the intended leadership transition of the Temasek’s Chief Executive Officer between former BHP Billiton chief Charles ‘Chip’ Goodyear and Mdm Ho Ching came to an abrupt stop when the private investment company announced the departure of Goodyear due to differences between him and the board of directors regarding certain strategic issues that could not be resolved.
“Four months into the leadership transition, the Temasek Board and Mr Goodyear have concluded and accepted that there are differences regarding certain strategic issues that could not be resolved.”……………………………………….Full Article: Source

The Future Fund takes risk off the table

Posted on 23 July 2015 by VRS  |  Email |Print

The revelation that the Future Fund has ramped up its cash holdings amid what it sees as an overpriced asset environment should resonate with smaller investors. The Fund is one of the nation’s most sophisticated investors, using a blend of outsourced managers and in-house specialists to generate mandated returns of 4.5 per cent over CPI — easy enough in the bull market years when the Fund was established by then Treasurer Peter Costello, not so easy in a low-rate world.
The Fund’s executives, including now chairman Costello, have been warning for some time that it is taking risk off the table as global financial markets approach the first rate increase by the Federal Reserve in close to a decade. The managers have tried to make the fund’s $117 billion portfolio as robust as possible to the range of scenarios that might play out once the Fed starts raising interest rates, and other central banks eventually follow suit. Fed officials have lately recommitted to a September increase………………………………………..Full Article: Source

Future Fund bets on cash

Posted on 23 July 2015 by VRS  |  Email |Print

Australia’s sovereign wealth fund has dramatically ramped up its allocation to cash in the past quarter, as it struggles to find value in expensive asset markets. At the same time, the $117 billion Future Fund has trimmed the cash it holds on deposit with the country’s four major banks, because of concerns about overexposure to the banking sector.
James Waldron, a manager in the debt and alternatives team at the Future Fund, told a fixed income conference today the Fund’s holding of cash has risen to about 18 to 19 per cent, the highest it has been in at least five years. “We are pushing $20bn in cash, which is very significant,” he said………………………………………..Full Article: Source

Saudi Arabian sovereign wealth fund eyes big return on Russia investments

Posted on 23 July 2015 by VRS  |  Email |Print

The Saudi Arabian government’s sovereign wealth fund said it was investing $10 billion in Russia this year. The fund will work in partnership with the Russian Direct Investment Fund (RDIF). The Saudi Arabia Public Investment Fund is investing $10 billion in Russia, and will create a partnership with the Russian Direct Investment Fund (RDIF), a state-controlled investment fund supporting promising projects in Russia.
Vedomosti cited RDIF Chief Executive Kirill Dmitriev as saying the amount would be invested over a period of four to five years. According to Dmitriev, the partners have already approved seven projects, and they plan to increase this number to ten by the end of 2015. It is still unclear what these projects are. The partners say the funds will basically be directed towards infrastructure, agriculture, retail, medicine, and real estate………………………………………..Full Article: Source

Alaska Permanent Fund scouting for special opportunities portfolio manager

Posted on 23 July 2015 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, is searching for a special opportunities portfolio manager, a new position, said spokeswoman Laura Achee in an e-mail. The $54 billion sovereign wealth fund’s special opportunities portfolio includes absolute return, real return and multiasset strategies that seek market inefficiencies.
The portfolio manager will report to David Fallace, director of investments, special opportunities. The deadline for applicants is Aug. 17. APFC also has recently posted a job listing for the position of executive director. Mike Burns, the previous executive director/CEO, retired in May because of health concerns. Valerie Mertz, chief financial officer, is the acting executive director/CEO. Applications received by 8 a.m. Alaska time on Aug. 10 will be put under the initial review………………………………………..Full Article: Source

Libyan investment chief: We need to manage frozen assets

Posted on 22 July 2015 by VRS  |  Email |Print

The Libyan Investment Authority (LIA) is drafting a proposal to the United States and European Union seeking management of its assets despite challenges from its former chairman who says that the country is too unstable for such a move.
The LIA’s international assets, which constitute a third of the $67 billion (Dh245.9 billion) sovereign wealth fund, have been frozen since 2011 when the country overthrew dictator Muammar Gaddafi. The Libyan government had an option to unfreeze the assets a year later, however, it decided to stick with the status quo………………………………………..Full Article: Source

Chinese investment bank files for up to $1 bln HK flotation

Posted on 22 July 2015 by VRS  |  Email |Print

China International Capital Corp (CICC), the country’s top domestic investment bank, has filed for an initial public offering in Hong Kong that could be worth up to $1 billion, people with direct knowledge of the plans said. The filing sets the ball rolling for a flotation expected to take place as early as September, Thomson Reuters publication IFR reported.
A Beijing-based spokeswoman for CICC declined to comment. CICC itself and ABC International are leading the offering. The company has as its majority shareholder Central Huijin Investment Ltd, a unit of China’s $747 billion sovereign wealth fund………………………………………..Full Article: Source

Neptune: No Decision on Container Shipping Line Sale

Posted on 21 July 2015 by VRS  |  Email |Print

Container-ship operator Neptune Orient Lines Ltd. said it hasn’t yet made any decision regarding a potential sale and is focused on returning its core liner business to profitability. The Wall Street Journal had reported last week that Singapore state-investment company Temasek Holdings Pte. Ltd. had put the struggling $1.7 billion container-shipping company up for sale, citing people familiar with the situation.
“The company has a duty to consider its options to maximize shareholder value as part of its conduct of normal business,” Neptune said in a filing to Singapore Exchange late on Sunday………………………………………..Full Article: Source

Korean Sovereign Fund Drops Bid to Buy L.A. Dodgers Stake

Posted on 20 July 2015 by VRS  |  Email |Print

South Korea’s sovereign-wealth fund says it is no longer pursuing a stake in the Los Angeles Dodgers. The Wall Street Journal reported in April that Korea Investment Corp. was interested in purchasing a minority stake in the Major League Baseball team. The Dodgers’ owners also had held discussions with a number of other interested organizations, the Journal reported at the time.
KIC is no longer pursuing a deal after conducting due diligence, said people with knowledge of the matter. These people didn’t say why KIC, which manages about $85 billion in assets, walked away. Korean news reports earlier had cited some Korean law makers’ criticism of the involvement of KIC’s chairman and chief executive, Hongchul Ahn, in the deal………………………………………..Full Article: Source

The leadership battle at the top of Libya’s sovereign wealth fund

Posted on 20 July 2015 by VRS  |  Email |Print

The fund is supposed to manage the nation’s oil wealth for the good of its war-torn people, but is itself driven by leadership rivalries. “Do you see any bruises on my face? I just came from Tripoli yesterday. There is no violence in Tripoli.” It is a bracing start to an interview about the usually reserved world of sovereign wealth funds. But AbdulMagid Breish is no ordinary fund manager, and his situation is unusually complicated.
In a country riven by civil war and rival governments, the Libyan Investment Authority is itself torn by competing factions. Mr Breish has an office in Tripoli where he says he is chairman of LIA, while another man, Hassan Bouhadi, runs another LIA head office from Malta, also claiming to be chairman………………………………………..Full Article: Source

Eating The Nigerian Nationalcake And Having It

Posted on 20 July 2015 by VRS  |  Email |Print

Governors are always eager to share the nationalcake as soon as possible. It would be recalled Amaechi led Nigeria Governors Forum(NGF) dragged Federal Government to court over Sovereign Wealth Fund and Excess Crude Account. NGF disagreed with federal government on plan to set aside fund in Sovereign Wealth Fund Account.
Governors always pressurized FG to share available resources without making provision for future. president Muhammadu Buhari recently ordered CBN to release over N600billion bailout fund for states to pay backlog of workers’ salaries. Many states were unable to pay salaries due to drop in oil revenue which led decline in their monthly allocation………………………………………..Full Article: Source

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