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Saudi state investment fund to set up new companies

Posted on 24 July 2014 by VRS  |  Email |Print

Saudi Arabia’s Public Investment Fund (PIF) aims to establish companies in areas including housing, petrochemicals and technology as it expands its investments locally and overseas, Finance Minister Ibrahim al-Assaf said.
His statement, quoted on Wednesday by the al-Sharq al-Awsat newspaper, was a fresh sign that Saudi authorities plan to use government-owned funds more actively to support economic reforms and development. The PIF was established in 1971 to help finance strategic economic projects. It has assets under management worth about $5.3 billion, according to the Sovereign Wealth Fund institute, which tracks state-run funds………………………………………..Full Article: Source

Qatar-backed retailers in war against fake goods

Posted on 23 July 2014 by VRS  |  Email |Print

From Harrods to Louis Vuitton, a number of iconic brands owned or part-owned by Qatar have recently come out in force against the increasing spread of fake goods. Qatar Holding bought Harrods, the Knightsbridge London store, in 2010 for a reported £1.5bn ($2.4bn) from Egyptian businessman Mohamed Al Fayed and has spent around £250m upgrading the legendary retailer.
LVMH was formed by the 1987 merger of fashion house Louis Vuitton with champagne and liquor maker Moët Hennessy. Sovereign wealth fund Qatar Holding holds a 1.03 percent interest in the company, which was valued at around €699m last year………………………………………..Full Article: Source

Major sovereign wealth fund investors to gather at Dubai event

Posted on 22 July 2014 by VRS  |  Email |Print

Over 100 institutional investors from around the world, such as sovereign wealth funds, pension funds and family groups, as well as senior management of major companies from the Middle East and Africa, will gather to discuss their growth funding and competitive strategies at an upcoming conference in Dubai.
Arqaam Capital, a specialist emerging markets investment bank, has announced that it is hosting the Arqaam Capital Gulf Cooperation Council and Africa Investors conference on September 22 and 23 at the Meydan Hotel in Dubai………………………………………..Full Article: Source

Malaysia Airlines ‘determined to rebuild trust’ after MH17 disaster

Posted on 22 July 2014 by VRS  |  Email |Print

Malaysia Airlines has pleaded with Australians not to desert it and says the Malaysian government will ensure its long-term future. The carrier has also defended itself after confirming that it diverted a London to Kuala Lumpur flight over Syrian airspace when its usual route over Ukraine was closed in the wake of last week’s shooting down of MH17.
Experts have suggested the airline may fail unless the Malaysian government steps in and there have been reports that Malaysia’s state investment fund and 69 per cent stakeholder, Khazanah Nasional, had been seeking to buy the rest of the company even before last week’s downing of MH17, and take it private………………………………………..Full Article: Source

Oman SWF mulling Bulgarian bank rescue

Posted on 21 July 2014 by VRS  |  Email |Print

Bulgarian finance ministry officials held talks on Friday with Oman’s sovereign wealth fund on the chances of recapitalising the fourth-largest Bulgarian bank, CCB, which is on the brink of collapse.
Finance Minister Petar Chobanov and the head of Oman’s fund Abdul Salam Al-Murshidi confirmed in a phone call “their readiness to find a working solution for the bank,” Chobanov’s office said in a statement. The Omani fund owns 30 percent of the Corporate Commercial Bank, which was shut on June 20 after media reports of alleged fraud sparked a three-day run on the bank………………………………………..Full Article: Source

Oman fund working to rescue Bulgaria’s Corpbank-source

Posted on 21 July 2014 by VRS  |  Email |Print

An Omani sovereign wealth fund and other shareholders in Bulgaria’s Corporate Commercial Bank are seeking to stabilise the troubled lender and hope a feasible plan will be put together within three months, a fund source told Reuters on Sunday.
Bulgarian Finance Minister Petar Chobanov spoke to the head of Oman’s State General Reserve Fund (SGRF) last week about the prospect of it helping out after a planned state bailout of the bank ran into opposition in Bulgaria’s parliament………………………………………..Full Article: Source

State Oil Fund seeks insurer and cleaner for its skyscraper in Baku

Posted on 21 July 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) is seeking for the insurer and the cleaner for its skyscraper in Baku. The Fund informs that two tender procedures have been announced for this purpose. Both tenders relate to the new SOFAZ administrative building at add: 111A, Heydar Aliyev Avenue, Baku (22 administrative floors, 2 technical floors and underground parking with total area of 35,834 sq m).
The selected insurer should ensure voluntary insurance of administrative complex’s real estate and mandatory liability insurance of its operation. Bids accompanied by a bank guarantee for 1% of the requested value will be accepted till 6 pm on 1 September. The tender will be held on 2 September at 11 am in the Fund’s current residence at 24, Neftchilar Avenue………………………………………..Full Article: Source

Japanese businessmen visit SOFAZ

Posted on 21 July 2014 by VRS  |  Email |Print

A delegation of Japanese businessmen led by head of the Shimada Sonjuku company and President of Chiba University of Commerce Haruo Shimada has visited the State Oil Fund of Azerbaijan Republic (SOFAZ), AzerTag reports.
Shahmar Movsumov, executive director of SOFAZ, gave an insight into the activity of the organization, management of its assets, investments, major projects financed by the fund………………………………………..Full Article: Source

Tanzanian gas failure

Posted on 18 July 2014 by VRS  |  Email |Print

Tanzania will probably miss an October 2015 deadline to present gas laws and legislation on a proposed sovereign wealth fund because of a dispute over the constitution and looming elections, Teneo Intelligence said.
The country plans to use some of the proceeds from the gas industry to create a sovereign wealth fund, which will partly finance the national budget………………………………………..Full Article: Source

Dubai suspends trading in Arabtec shares

Posted on 18 July 2014 by VRS  |  Email |Print

Dubai Financial Market has suspended trading in construction company Arabtec as the country’s regulator beefed up oversight of the company at the centre of the emirate’s rollercoaster ride over the past two months.
Aabar, a unit of an Abu Dhabi sovereign wealth fund, and Arabtec’s second largest shareholder, could buy part of Mr Ismaik’s stake to raise its holding in the builder to more than 30 per cent, Bloomberg reported………………………………………..Full Article: Source

Mubadala Petroleum signs Cooperation Agreement with Somalia

Posted on 18 July 2014 by VRS  |  Email |Print

Mubadala Petroleum has signed a cooperation agreement with the Ministry of Petroleum and Mineral Resources of the Federal Republic of Somalia. Mubadala Petroleum is and upstream oil and gas exploration and production company, a subsidiary of Mubadala Development Company and 100 percent owned by the Government of Abu Dhabi.
During the first half of 2014, a high level engagement took place between the U.A.E. and the Federal Government of the Republic of Somalia and its territories to consider ways in which they might work together to further the development of the Somali petroleum sector………………………………………..Full Article: Source

A world without water

Posted on 17 July 2014 by VRS  |  Email |Print

Norway’s huge $890bn oil fund, the world’s biggest sovereign wealth fund, is one of several large investors urging companies to improve their reporting. It cites what Jan Thomsen, its chief risk officer, has described as “increasing water scarcity and adverse water-related events” that could affect its long-term returns.
The fund is one of 530 investors with $57tn in assets that work with the Carbon Disclosure Project, an international environmental charity. On behalf of those investors, CDP asks large companies each year to disclose the risks and opportunities water poses for their business. Last year 70 per cent of the 180 FTSE Global 500 companies that responded said water was a substantive risk to their business, up from 59 per cent in 2011………………………………………..Full Article: Source

BRICS Making a Bank, RDIF Gets Involved

Posted on 16 July 2014 by VRS  |  Email |Print

The Russian Direct Investment Fund, or RDIF, will create a multi-billion dollar infrastructure investment fund together with sovereign wealth funds from the BRICS group of developing countries. he joint fund will invest in the equity capital of BRICS infrastructure projects, the RDIF said Monday on its website, adding that its international partners had pledged their support to the initiative. If final negotiations are successful, the RDIF said the fund should be active by the next BRICS summit in the Russian city of Ufa in summer 2015.
Created in 2011 to provide a partner for foreign investors looking for opportunities in Russia, the state-sponsored RDIF says it and its co-investors have invested $5 billion in Russian projects, and lured $12 billion of foreign capital to Russia through long term strategic partnerships………………………………………..Full Article: Source

NSIA gets transparency upgrade

Posted on 16 July 2014 by VRS  |  Email |Print

The Nigeria Sovereign Investment Authority (NSIA) has received improved rating as a sovereign wealth fund by the Linaburg-Maduell transparency index administered by the Sovereign Wealth Institute. In the official statement announcing the second quarter 2014 ratings, the Institute singled out the NSIA for special mention stating that NSIA has been upgraded to nine points out of a possible 10 from a score of four in the previous rankings.
This rating translates into a leap from a position of joint 33rd to joint 2nd; the only African sovereign wealth fund so ranked. With the latest rankings, NSIA is in credible company alongside sovereign wealth funds from the USA, France, South Korea, Brazil and Malaysia………………………………………..Full Article: Source

The LIA and Libya’s struggle to move on

Posted on 15 July 2014 by VRS  |  Email |Print

News that Abdulmagid Breish has been removed from his position as chairman of the Libyan Investment Authority brings yet another tortuous diversion to the troubled institution’s management. But does it make much of a difference to the fund’s ambitions?
Breish was asked to leave his position because of an inquiry under Libya’s Political Isolation Law, a piece of legislation brought in last year that prohibits those who held high office with the Gaddafi administration from serving in senior roles in the post-revolutionary government………………………………………..Full Article: Source

Singapore’s wealth fund expands China holdings

Posted on 15 July 2014 by VRS  |  Email |Print

Temasek Holdings Pte Ltd has increased its exposure to Chinese markets over the past year, even as Asia holdings weighed on its performance and the Singaporean investor turned to the West for growth.
The sovereign wealth fund’s holdings of China assets rose to 25 percent in the fiscal year that ended March 31, up from 23 percent year-on-year, according to a statement it released on July 8. China continued to be the top destination for Temasek’s global portfolio after Singapore, which accounted for 31 percent of its portfolio………………………………………..Full Article: Source

Temasek, Blackstone Group bet on Chinese economy

Posted on 15 July 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund Temasek Holdings and American asset management firm Blackstone Group both maintain a positive outlook for the Chinese economy despites its slowing growth, reports the Shanghai Securities News. Both of the companies’ senior managers said markets have been overly concerned with China’s slower growth and predicted that a major financial crisis is unlikely to take place in the country.
Stephen Allen Schwarzman, Blackstone Group’s founder, said some investors have stopped or suspended their investments in the country after it shifted down the gears. However, his firm has seen it as a great opportunity and spent US$539 million to buy Chinese software company Pactera Technology International………………………………………..Full Article: Source

CIMB Merger Plans Puzzling

Posted on 15 July 2014 by VRS  |  Email |Print

CIMB’s plans to merge with RHB Capital and Malaysia Building Society to create Malaysia’s biggest bank by asset size, is a puzzling move. CIMB and RHB had previously ditched plans to merge because their businesses overlap.
CIMB’s chief executive Datuk Seri Nazir Razak is expected to step down to become the chairman of the bank. He will also be joining the board of Khazanah, Malaysia’s biggest sovereign wealth fund. Khazanah has 25 per cent of CIMB, and according to speculation would have a 20 per cent stake in the merged CIMB, RHB MBSB………………………………………..Full Article: Source

GIC Said to Have Backed Out of Lone Star’s Tokyo Property Sale

Posted on 14 July 2014 by VRS  |  Email |Print

GIC Pte, Singapore’s sovereign wealth fund, backed out of buying a Tokyo property from Lone Star Funds, according to people familiar with the transaction. GIC, which had entered exclusive negotiations with the U.S. fund, withdrew from pursuing Meguro Gajoen, an office and banquet hall complex in Tokyo, because of a dispute between two other parties involving land included in the sale, the people said, asking not to be identified because the information is private.
Both GIC and Hudson Japan K.K., a local unit of Lone Star, declined to comment. GIC’s withdrawal comes after Dallas-based Lone Star renewed efforts earlier this year to sell the property by including the land in the offer amid rising interest from investors in Japan’s property market………………………………………..Full Article: Source

Why Putin’s Raid on Wealth Fund Won’t Cure What Ails Russia

Posted on 11 July 2014 by VRS  |  Email |Print

President Vladimir Putin’s government is blowing a hole in Russia’s finances by unsealing one of its rainy-day funds, all for a growth spurt that will fizzle out, according to the Finance Ministry’s debt chief.
By tapping into the $88 billion stockpile to finance infrastructure, Russia is eroding the defenses that helped it weather a slump five years ago, Konstantin Vyshkovsky said. The tradeoff is that Russia will be at risk of “running on empty” after a “sharp and very brief acceleration,” he said………………………………………..Full Article: Source

Temasek’s portfolio gains include US$4b from government

Posted on 11 July 2014 by VRS  |  Email |Print

Temasek Holdings Pte’s performance was helped by a S$5 billion (RM112.78 billion) capital injection from Singapore’s Ministry of Finance, according to the state-owned investment firm’s annual report.
Temasek’s portfolio rose by S$8 billion to S$223 billion as of March 31, the company said in its review on July 8. The gain included the funds from the ministry, its only shareholder, “as part of their asset allocation decision,” it said………………………………………..Full Article: Source

Asian markets hit Temasek growth

Posted on 09 July 2014 by VRS  |  Email |Print

Assets of Singapore’s sovereign investment fund Temasek Holdings slowed in the year to March as Asian holdings weighed on the performance as it boosted its exposure to Europe and the US amid economic recoveries.
The value of Temasek’s holdings increased 3.7 per cent, less than half the growth the previous year, to a record $S223 billion ($US179 billion) compared with $S215 billion, it said in its latest annual report. Total shareholder return for the period, which includes dividends, shrunk to 1.5 per cent from 8.9 per cent in its previous fiscal year…………………………………..Full Article: Source

Temasek’s Good Heart

Posted on 09 July 2014 by VRS  |  Email |Print

No need to have a heart attack about China’s financial system, says Singapore state investment firm Temasek Holdings. The $192 billion investor loves banks, keeping nearly a third of its assets in financial firms. There are stakes in China Construction Bank and Industrial and Commercial Bank of China , not to mention big chunks of non-Chinese banks such as Standard Chartered and Singapore’s DBS.
Temasek had a subpar year, with a total return of just 1.5%, below its cost of capital, weighed down by Asia’s crummy stock markets. Temasek’s executives were sanguine Tuesday at the annual release of its results that China’s banks had ample capability to weather a financial storm. Nevertheless, it can’t hurt to hedge your bets…………………………………..Full Article: Source

1MDB’s power listing ‘will help unlock’ assets value

Posted on 08 July 2014 by VRS  |  Email |Print

Sovereign wealth fund 1Malaysia Development Bhd’s (1MDB) plan to raise some US$3 billion (RM9.6 billion) from the listing of its power generation assets exercise is “quite ambitious” and will help 1MDB to unlock the value of its power assets, says MIDF Amanah Investment Bank Bhd.
Its head of equity research Syed Muhammed Kifni said the listing exercise will allow access to the capital market and may help the group’s quest for more power assets and concessions in view of the nation’s growing power demand……………………………………..Full Article: Source

Abu Dhabi’s ADIA sells shares worth $70 mln in India’s Kotak Mahindra

Posted on 08 July 2014 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA), one of the world’s biggest sovereign wealth funds, sold 4.21 billion rupees ($70.2 million) worth of shares in India’s Kotak Mahindra Bank Ltd in stock market deals on Monday, exchange data showed.
ADIA sold about 4.8 million shares at 874.55 rupees a piece, according to data from the Bombay Stock Exchange. Kotak Mahindra shares ended down 1.3 percent at 870.90 rupees, while the main Mumbai market index rose 0.5 percent……………………………………..Full Article: Source

Kazkommertsbank, BTA Bank complete merger in Kazakhstan

Posted on 08 July 2014 by VRS  |  Email |Print

Kazkommertsbank (KKB), one of the largest banks in Kazakhstan and Central Asia, has announced the completion of the acquisition of BTA Bank shares. In accordance with previous agreements, on 30 June, 2014, Kazkommertsbank and Kenes Rakishev, a 34-year-old entrepreneur and venture investor from Kazakhstan, each acquired 46.5% of BTA Bank’s shares from Kazakhstan’s state-owned Sovereign Wealth Fund Samruk-Kazyna, KKB said.
Simultaneously, Samruk-Kazyna transferred its remaining 4.26% stake in BTA to KKB in accordance with the Trust Agreement. This provided KKB with more than 50% of voting rights and operational control of BTA……………………………………..Full Article: Source

Temasek Set to Show Slower Asset Growth on Banks

Posted on 07 July 2014 by VRS  |  Email |Print

Temasek Holdings Pte’s assets probably grew at a slower pace in the year to March because of losses on some of its biggest financial assets.
Singapore’s state-owned investment company, which releases its annual review tomorrow, may have increased the value of its holdings by about 4 percent to a record S$224 billion ($180 billion) in the year to March 31, according to CIMB Research Pte and Institutional Investor’s Sovereign Wealth Center. That compares with an 8.6 percent gain in the previous year………………………………………..Full Article: Source

Khazanah: Privatisation of MAS mere speculation

Posted on 04 July 2014 by VRS  |  Email |Print

Malaysia Airlines (MAS) shares went up two sen on reports suggesting that the airline may be privatised by Khazanah Nasional Bhd. But in a late press statement yesterday, Khazanah dismissed the reports as “speculative”.
“A comprehensive review of restructuring options for MAS is being undertaken and evaluated,’’ it said. “The resolution of this review will be made after due consideration and after respective approvals from the relevant parties and authorities, including the approval of the special shareholder, Minister of Finance, Incorporated.”……………………………………….Full Article: Source

Khazanah, govt to decide on privatisation, says MAS

Posted on 04 July 2014 by VRS  |  Email |Print

Malaysia Airlines (MAS) says it is up to its major shareholder and the government to decide if it should be taken private. However, it said on Thursday: “As of now, the company is not aware of any decision that has been made by both of them on this matter”
MAS was responding to a report that “MAS may be taken private for restructuring”. At Bursa Malaysia on Thursday, MAS closed two sen higher to 23 sen and it was the most active with 194.19 million shares done………………………………………..Full Article: Source

Khazanah units in JV to develop ’smart city’

Posted on 03 July 2014 by VRS  |  Email |Print

Telekom Malaysia Bhd (TM) has entered into a deal with UEM Sunrise Bhd and Iskandar Investment Bhd (IIB) to form a joint venture (JV) company that will offer and operate smart services in Nusajaya, Johor. TM will hold a controlling stake of 51% in the JV at a cost of RM31 million.
Khazanah Nasional Bhd is the major shareholder of UEM Sunrise via its wholly owned subsidiary, UEM Group Bhd, as well as being the major shareholder of TM and IIB, and Khazanah is deemed to be interested in the proposed JV………………………………………..Full Article: Source

Abu Dhabi’s SWF eyes Chinese growth

Posted on 03 July 2014 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA), the Persian Gulf sovereign wealth fund (SWF) with an estimated US$773 billion in assets, has hinted that China may play a growing role in its portfolio amid major economic and structural reforms in the country.
In its 2013 annual report, which offers a rare glimpse into ADIA’s investment strategy, the SWF said that emerging markets, including China, were playing a larger role in the global growth cycle than ever before. ADIA currently has a QFII quota of $1 billion. “China is in the midst of a historic shift in its economic governance that will likely result in a loosening of administrative controls and allow markets to play a larger role in allocating capital,” wrote Hamed Bin Zayed Al Nahyan, managing director, ADIA, in his foreword to the report………………………………………..Full Article: Source

Adia increases focus on EMs, China, credit

Posted on 03 July 2014 by VRS  |  Email |Print

Abu Dhabi’s sovereign wealth fund sees global growth driven increasingly by emerging markets, with China assuming a much greater role in the cycle, and is positioning its portfolio accordingly.
When an investor of such size - with an estimated $773 billion under management - makes such a call, it is likely to have big implications for world markets. One example of what Abu Dhabi Investment Authority (Adia) has in mind: it received approval to raise its allocation to China A-shares under the country’s qualified foreign institutional investor programme to $1 billion from $500 million………………………………………..Full Article: Source

Italy’s FSI and Kuwait’s KIA create investment firm with $2.98 bln in assets

Posted on 02 July 2014 by VRS  |  Email |Print

Italian state-backed private equity fund Fondo Strategico Italiano (FSI) and Kuwait Investment Authority (KIA) have created an investment company with assets and commitments worth 2.185 billion euros ($2.98 billion), FSI said on Tuesday.
The new company, FSI Investimenti, will be 77 percent owned by FSI and 23 percent owned by KIA, it added. “The agreement is consistent with FSI strategy of increasing its capital to 7 billion euros, also by attracting foreign investments in Italy,” FSI said in the statement………………………………………..Full Article: Source

Temasek Cares initiative to help children from families at risk

Posted on 02 July 2014 by VRS  |  Email |Print

Beginning with help for a pregnant mother — such as prenatal care and job support — to support for a child even before he or she enters pre-school, a new programme by Temasek Cares aims to assist children from families at risk, so they start life on a better footing.
The programme, which will be launched within the next few months, is one of several new initiatives announced yesterday by Temasek Cares, the philanthropic arm of Temasek Holdings, which yesterday pledged an additional endowment of S$60 million. This would bring the total endowment to S$289 million………………………………………..Full Article: Source

Morocco fund seeks partners for joint deals

Posted on 02 July 2014 by VRS  |  Email |Print

Wessal Capital, the €2.5 billion Moroccan private equity-style vehicle backed by five sovereign-linked investors, is seeking private equity partners for ­co-investments in the country. Tarik Senhaji, chief executive of the Moroccan Fund for Tourism and a board member of Wessal Capital, said that the firm was in talks with US-based private equity firms but would also look for European buyout firms to partner with on investments in Morocco.
The firm, set up in 2010 via a memorandum of understanding, has backing from a club of Gulf Cooperation Council sovereign-linked heavyweights. Abu Dhabi’s sovereign wealth fund Aabar Investments, the Al-Ajial fund of the Kuwait Investment Authority, Qatar Holding and the Saudi Arabian Public Investment Fund each contributed €500 million alongside the Moroccan Fund for Tourism Development………………………………………..Full Article: Source

Abu Dhabi Sovereign Wealth Fund Targets Chinese Growth

Posted on 01 July 2014 by VRS  |  Email |Print

The Abu Dhabi Investment Authority, one of the world’s biggest sovereign wealth funds, kept target asset-allocation ranges constant last year as it projected a continuation of emerging-market growth and slow recovery in the developed world.
ADIA, which is estimated by the Sovereign Wealth Fund Institute to hold $773 billion in assets, added staff last year on its real estate, infrastructure and private equities teams, but gave few clues in an annual review about how it is realigning itself to confront challenges in the global economy………………………………………..Full Article: Source

Abu Dhabi Wealth Fund Boosts Equities in Europe to South Africa

Posted on 01 July 2014 by VRS  |  Email |Print

Abu Dhabi Investment Authority, one of the world’s biggest sovereign wealth funds, said internal money managers allocated more assets to European and South African equities last year.
The fund generated annualized returns of 7.2 percent over the two decades through 2013, down from 7.6 percent a year earlier, ADIA said in its annual report published today. The return over 30 years was 8.3 percent. The authority, which allocates 75 percent of its funds to external managers, doesn’t disclose the value of its assets………………………………………..Full Article: Source

Unrest, Muted SWFs Slow Middle East M&A Activity

Posted on 27 June 2014 by VRS  |  Email |Print

Most investment bankers in Dubai’s financial center will tell you their pipeline – the transactions they are working on – is robust and that the Middle East’s post-crisis deal climate is improving. However, data for the first six months of 2014 suggest the regional dealmaker’s optimism is still premature.
The value of Middle Eastern mergers and acquisitions sunk to its lowest level in almost a decade, Dealogic data show. Transactions involving a Mideast buyer or seller fell to $23.6 billion in the first six months of this year to date, down 13% compared to the same period in 2013. Europe, by contrast, saw deal activity rebound in the same period………………………………………..Full Article: Source

Norway’s $880bn SWF to target frontier markets like Nigeria

Posted on 27 June 2014 by VRS  |  Email |Print

Norway’s $880 billion sovereign wealth fund, the world’s largest, will expand its scope of investments to target “frontier markets” and add more currencies to generate higher returns. Frontier markets, also called pre-emerging markets, have equity markets that are less established than in emerging markets.
These include countries such as Nigeria, Argentina, Ukraine and Kazakhstan, according to MSCI Inc. The MSCI Frontier Market Index is up 16 percent this year compared with a 5 percent gain for the MSCI World Index of developed market shares. Nigerian equities made up 20 percent of the MSCI FM index as of June 2014………………………………………..Full Article: Source

Azerbaijan plans to gain financial benefit from replacement of Oil Fund allocations with the loans from foreign markets

Posted on 26 June 2014 by VRS  |  Email |Print

Replacement of the State Oil Fund (SOFAZ) allocations with the loans from foreign markets promises to provide a financial benefit for Azerbaijan. According to the informed sources, Azerbaijan’s government plans to take advantage of such loans’ benefits.
“Today the markets demonstrate profitable financial conditions and this effect is enhanced by Azerbaijan’s financial stability and solvency. Many lenders and investors are ready to provide finances to Azerbaijan. In this regard, governmental experts believe that today it’s quite possible to get foreign loans at the rate of LIBOR level or LIBOR +0…% and we should take this opportunity”, - the source said………………………………………..Full Article: Source

India: New measures on card to attract sovereign wealth funds

Posted on 26 June 2014 by VRS  |  Email |Print

Looking to attract larger inflows from sovereign wealth funds and foreign pension funds, central government and financial sector regulators have renewed their efforts to make Indian markets, especially government bonds, much more appealing to such investors.
The government and regulators are of the view that overseas investments by sovereign wealth funds, multilateral agencies, endowment funds, pension funds, insurers and foreign central banks are much more stable in nature, as compared to institutional investors and hedge funds………………………………………..Full Article: Source

KKR Joins Sovereigns Seeking Seoul Skyline Yields

Posted on 26 June 2014 by VRS  |  Email |Print

KKR & Co. bought an skyscraper in downtown Seoul, within walking distance from blocks owned by wealth funds of Azerbaijan and Singapore, as falling bond yields and a revived economy spurs a search for higher returns.
The private-equity firm run by Henry Kravis and George Roberts acquired the K Twin Towers in Seoul this month, after Azerbaijan’s state oil fund spent $447 million for a building in April. Seoul office prices rose 11 percent in the year to April 30, with yields of 5.67 percent, according to Real Capital Analytics Inc. Five-year sovereign yields fell almost half a percentage point to 2.9 percent in 12 months………………………………………..Full Article: Source

Mideast SWFs To Boost Emerging Markets Exposure

Posted on 26 June 2014 by VRS  |  Email |Print

Buoyed by oil prices above $100 a barrel and a growing confidence in the global economy, sovereign wealth funds in the Middle East expect to receive more funding this year, providing them with extra financial firepower to raise their investments into emerging markets and asset classes such as private equity and real estate, according to an Invesco study.
Latin America, Africa and China are likely to be the main beneficiaries of the continuing shift towards emerging markets by the world’s sovereign funds despite their historical preference for developed markets such as the United Kingdom, Invesco said in its survey of 52 sovereign investors who collectively manage $5.7 trillion in assets………………………………………..Full Article: Source

Over $6t sovereigns to drive home market growth

Posted on 26 June 2014 by VRS  |  Email |Print

Invesco first Invesco Global Sovereign Asset Management Study, an in-depth report offers insight into the complex investment behaviour of sovereign investors across the globe.
The unique study, which provides a framework to help understand the investment preferences and strategy of these funds, shows that the biggest growth story among global sovereigns today is an increase in a so-called ‘public-private partnership’ investment approach. An approach, which sees commercially, minded sovereigns seeking direct strategic investment in private companies to support GDP, job creation and skills transfer………………………………………..Full Article: Source

Norway’s $890 Billion Fund Gears Up to Expand in Real Assets

Posted on 25 June 2014 by VRS  |  Email |Print

Norway’s $890 billion sovereign wealth fund, the world’s biggest, is building up its organization and preparing for a move into infrastructure and private equity, its chief executive officer said.
The fund, in a strategy document released yesterday, revealed it was boosting its staff by about 60 percent over the next three years to tackle increased investments in real estate and said it’s preparing for more investments in assets “with income streams that grow in line with the global economy.”……………………………………….Full Article: Source

Norway’s oil fund to take bigger stakes in companies

Posted on 25 June 2014 by VRS  |  Email |Print

Norway’s $890bn oil fund is accelerating its push to become a more active investor as the world’s biggest sovereign wealth fund said it would double the number of companies it owned big stakes in over the next three years.
In its 2014-2016 strategy published on Tuesday, Norges Bank Investment Management, the manager of the oil fund, showed how it would deal with the challenges of its ever-increasing size, having tripled its assets since 2007………………………………………..Full Article: Source

Emerging markets pull in sovereign investors

Posted on 24 June 2014 by VRS  |  Email |Print

Invesco’s new study reveals that sovereign funds are increasingly attracted to alternatives and markets such as Africa and Latin America. Sovereign investors are increasing their allocations to emerging markets and alternatives, according to a new study by Invesco.
The Invesco Global Sovereign Asset Management Study, which is in its second year, is based on surveys with more than 50 sovereign investors including central banks, sovereign wealth funds and government pension funds………………………………………..Full Article: Source

Middle East investors target old Scotland Yard hotel as next trophy asset

Posted on 23 June 2014 by VRS  |  Email |Print

Sovereign wealth funds from Kuwait and Qatar are in talks with a London developer over the acquisition of the original Scotland Yard headquarters, which is being transformed into a £10,000-a-night luxury hotel.
The Galliard Group confirmed to The Telegraph that its chief executive, Stephen Conway, has met individuals from the Middle East over the last few months, who have shown interest in buying the historic building once construction has been completed in 2016, thought to be worth £200m………………………………………..Full Article: Source

Philippines DTI courts Norway SWF and investors

Posted on 20 June 2014 by VRS  |  Email |Print

The trade department has invited Norwegian businessmen to increase investments in the Philippines. “We [Department of Trade and Industry officials] met with Norwegian government officials that manage the fund and we encouraged them into investing more here and increase their exposure in the Philippines,” said Trade Secretary Gregory L. Domingo in a chance interview with reporters on Wednesday.
Domingo noted that Norway possesses the largest sovereign wealth fund, the Norwegian Government Pension Fund-Global (SPU), and the Philippines stands to gain from more investments as the Nordic country already has substantial investments in blue-chip companies, through the said fund………………………………………..Full Article: Source

Alaskan Fund Ups Commitment to Single-Family Rental Purchases

Posted on 20 June 2014 by VRS  |  Email |Print

The Alaska Permanent Fund Corp. entered into a limited liability company agreement with American Homes 4 Rent to form American Homes 4 Rent II LLC (to acquire, renovate and lease additional single-family residential properties in the United States.
The fund has an 80% capital interest in the new company with American Homes the remaining 20%. The two will initially fund the new firm with $50 million. The maximum term of the new company is six years at which time any unsold properties will be sold………………………………………..Full Article: Source

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