Fri, Feb 12, 2016
A A A
Welcome tstroemlev
RSS

Sovereign Wealth Funds Briefing - Category | Market more

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

Posted on 20 January 2016 by VRS  |  Email |Print

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

Russia crisis is ‘controllable’: Wealth fund head

Posted on 20 January 2016 by VRS  |  Email |Print

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

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

Posted on 19 January 2016 by VRS  |  Email |Print

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

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

Posted on 18 January 2016 by VRS  |  Email |Print

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

ICD & Brookfield to launch $1bn DIFC project

Posted on 18 January 2016 by VRS  |  Email |Print

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

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

Posted on 15 January 2016 by VRS  |  Email |Print

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

Rebranding Malaysia Airlines not priority, says Khazanah boss

Posted on 15 January 2016 by VRS  |  Email |Print

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

Malaysia’s Khazanah to target foreign buys as asset growth slows

Posted on 14 January 2016 by VRS  |  Email |Print

Malaysian sovereign wealth fund Khazanah Nasional pledged on Wednesday to boost its international presence, including in China, as part of a strategy that in 2015 helped it post a small rise in asset value even as the domestic economy stumbled.
The fund is open to opportunities in China, Khazanah’s managing director Azman Mokhtar said at a press conference after it disclosed a 3.2 percent rise in its portfolio value to 150.2 billion ringgit ($34.29 billion) last year. “China is moving into a different phase of economic development. When such a giant economy moves, there will be dislocations but there will also be opportunities,” Azman said………………………………………..Full Article: Source

Khazanah says volatility isn’t ebbing after ‘rollercoaster’ 2015

Posted on 14 January 2016 by VRS  |  Email |Print

Khazanah Nasional Bhd said 2016 will continue to be challenging for the Malaysian sovereign wealth fund after a “rollercoaster” year which saw its assets decline amid turmoil in financial markets. The net asset value of Khazanah’s investments fell 1.6 per cent to 109 billion ringgit (Dh91.3 billion, $24.9 billion) at the end of 2015 from 110.7 billion ringgit a year earlier, the company said.
The local stock benchmark FTSE Bursa Malaysia KLCI Index slid 3.9 per cent in 2015. Khazanah owns stakes in some of Malaysia’s biggest listed companies, whose shares have dropped as global investors pulled 19.5 billion ringgit from the country’s stock market last year………………………………………..Full Article: Source

How was 1MDB saved without public funds, DAP asks Najib

Posted on 12 January 2016 by VRS  |  Email |Print

Datuk Seri Najib Razak must explain in Parliament how 1Malaysia Development Berhad’s (1MDB) financial woes were resolved without the use of public funds, says DAP. Its national publicity chief Tony Pua said today that failure to do so only proved that the prime minister had much to hide and did not dare answer the country’s supreme legislative body.
Najib said yesterday that public funds were not being used to resolve 1MDB’s financial issues. “What we are glad about is that we are resolving it not by way of a memorandum of understanding (MoU) but through an ‘agreement’, without touching any of the people’s money,” he said in a statement………………………………………..Full Article: Source

Norway to Review Oil Fund’s Equity Investment

Posted on 11 January 2016 by VRS  |  Email |Print

Norway’s government ordered a review Friday to determine whether the nation’s sovereign-wealth fund should increase its exposure to global equity markets in a bid to lift returns.
The move comes as the oil fund, managed by Norway’s central bank, considers slowing down the pace of its diversification into real estate because it can’t find enough attractive properties. The fund is also suffering from a period of weak bond returns………………………………………..Full Article: Source

Norway SWF blacklists China’s ‘corrupt’ ZTE

Posted on 08 January 2016 by VRS  |  Email |Print

Norway’s sovereign-wealth fund, the world’s largest, said Thursday it has excluded China’s ZTE Corporation from its portfolio after assessing corruption allegations made against the telecom equipment maker in several countries.
“The company is excluded based on an assessment of the risk of severe corruption,” said Norway’s central bank, which has the final word on ethically-based exclusions. The decision was based on an assessment by the fund’s Council on Ethics, which said the Chinese company is facing corruption allegations in 18 countries and is under formal investigation in 10 countries. In addition, the company has one conviction for corruption, it said………………………………………..Full Article: Source

Temasek-linked town planner Surbana Jurong says eyeing more acquisitions

Posted on 08 January 2016 by VRS  |  Email |Print

Surbana Jurong Pvt Ltd, an urban planning consultancy 51-per cent owned by Singapore state investor Temasek Holdings, is looking at acquisitions abroad including China, its group chief executive said, a move that will help raise overseas revenues.
“Besides China, we are looking at Australia, Japan as well as India,” Group Chief Executive Wong Heang Fine told Reuters. Emerging economies are seeing rapid urbanisation, and companies are getting more opportunities to provide planning and building services for projects such as economic zones, business parks, residences and hospitals………………………………………..Full Article: Source

Sovereign wealth funds: What is Santiago for?

Posted on 07 January 2016 by VRS  |  Email |Print

Despite signing up to the Santiago Principles, most sovereign wealth funds don’t observe them, nor do they have to. Isn’t it time the markets lost patience with their ‘I signed, therefore I am transparent’ approach?
Peter Costello faced a challenging gig. The chairman of the Australian Government Future Fund, better known to many as the country’s longest-serving treasurer, under John Howard’s government, was presenting a keynote speech at a sovereign wealth funds conference in Milan, but found himself addressing a room full of people milling around a buffet table………………………………………..Full Article: Source

Malaysia scrubs out half its sovereign fund stain

Posted on 07 January 2016 by VRS  |  Email |Print

The world’s most troubled sovereign fund is scrubbing itself clean. 1Malaysia Development Berhad has been at the centre of allegations of graft which have sparked investigations from Hong Kong to the United States. Now a $1.7 billion deal with a Malaysian-Chinese group over prime real estate in Kuala Lumpur means 1MDB’s financial woes are close to resolution.
Malaysian politics has been in turmoil since July, when it was revealed that almost $700 million had landed in the personal accounts of Najib Razak, the prime minister. Najib is chairman of 1MDB’s board of advisers. He denies taking any money from the energy-to-real estate portfolio for personal gain. The country’s anti-corruption commission has said the cash came from an unnamed donor………………………………………..Full Article: Source

Biggest no longer best in Qatar’s strategy for LNG wealth

Posted on 07 January 2016 by VRS  |  Email |Print

Qatar took 10 years to become the fuel’s largest producer in 2006 and even less time after that to build a $250-billion (U.S.) sovereign wealth fund. With a population of 2.4 million people, it tapped the third-biggest gas reserves to become the wealthiest nation per capita.
Qatar’s gross domestic product in 2014 was $134,182 for each resident compared with $49,537 in neighbouring Saudi Arabia, with a population 12 times as large, according to the World Bank………………………………………..Full Article: Source

Infra projects will get more money this year, says Jaitley

Posted on 06 January 2016 by VRS  |  Email |Print

Committing himself to increasing allocations for infrastructure projects such as rural roads, highways and the railways during 2016-17, Finance Minister Arun Jaitley said on Tuesday that public investments must lead the way during a global slowdown and India had an opportunity to spend more on infrastructure because of low oil, commodities and mineral prices.
Jaitley said funding infrastructure projects remained a big challenge, and the government was hopeful of partnering sovereign wealth funds and pension funds that evinced interest in the National Investment and Infrastructure Fund………………………………………..Full Article: Source

GIC enters joint venture to acquire US student housing portfolio

Posted on 05 January 2016 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has formed a joint venture with Canada Pension Plan Investment Board (CPPIB) and The Scion Group (Scion) to acquire a US student housing portfolio for approximately US$1.4 billion (S$2 billion), the Republic’s sovereign wealth fund announced on Monday (Jan 4).
Through the joint venture, GIC and CPPIB will each own a 47.5 per cent interest in the University House Communities Group (UHC). Scion, which will manage and operate the portfolio, will own the remaining 5 per cent. It added that the venture will also pursue opportunities “to acquire high-quality student housing assets primarily in Tier 1 university markets in the US”………………………………………..Full Article: Source

China Investment Corp. shifts investment focus from Canada to U.S.

Posted on 04 January 2016 by VRS  |  Email |Print

China Investment Corp., a sovereign wealth fund with a mandate to invest mainland China’s reserves overseas, has shut its Toronto office and established a new North American base in New York. The state-owned company has been in Toronto for the last five years, but its investments, many of them in the energy sector, have plunged as commodity prices fell. Reuters estimates it invested $4.5 billion US in Canada.
CIC invested billions in oilsands companies, including Athabasca Oil Corp., Penn West Petroleum Ltd., Sunshine Oil Sands Ltd. and MEG Energy Corp., all of which have seen stock prices fall this year………………………………………..Full Article: Source

China Investment Corp retreats from Canada after mining, energy investments sour

Posted on 04 January 2016 by VRS  |  Email |Print

After a string of bad investments, China Investment Corp. (CIC) has shut down its Toronto office and is opening a new one in New York, part of a quiet retreat from Canadian natural resources by China’s state-controlled entities.
The decision ends a five-year presence by China’s sovereign wealth fund in the city, picked for its first and only overseas office to monitor investments in Canada’s mining and oil and gas sectors, a top Chinese priority when they were made. But with commodity prices tanking, partly because of slowing growth in China, and CIC’s Canadian buying spree long over, it is opening a new base in New York in the new year as part of a change in investment strategy, a source confirmed………………………………………..Full Article: Source

Global sovereign funds keen on investing in India: FM Arun Jaitley

Posted on 30 December 2015 by VRS  |  Email |Print

The first meeting of the governing council of National Investment and Infrastructure Fund (NIIF) was held on Tuesday, wherein it was decided to appoint a chief executive officer for the fund by January-end and rope in several sovereign and pension funds to invest in it. In the meeting, possible infrastructure projects that could be taken up by the fund were discussed, finance minister Arun Jaitley said adding that sovereign funds and pension funds from UAE, Singapore, UK and Russia have shown interest to invest in NIIF.
“Several sovereign funds and pension funds across the world have expressed their willingness to participate and cooperate in various manners with the NIIF so the progress with regard to the suggestions which have come from UAE, Singapore, UK and Russia were discussed,” Jaitley told reporters after the meeting………………………………………..Full Article: Source

Largest 10 Direct Sovereign Wealth Fund Deals of 2015

Posted on 29 December 2015 by VRS  |  Email |Print

Large real estate developments like Manhattan West and vast portfolios of industrial properties dominate as some of the biggest sovereign wealth fund transactions in 2015. Despite lingering low oil prices, sovereign wealth funds’ interest in direct deals shows very little signs of abating.
Wealth funds backing these monstrous deals are the China Investment Corporation (CIC), Abu Dhabi Investment Authority (ADIA), Norway’s sovereign wealth fund and the Qatar Investment Authority (QIA). Surprisingly, two large technology plays made the top 10 list this year. A few widely reported deals such as ADIA and CIC buying interests in Autobahn Tank & Rast Holding Gmbh failed to make the final cut. Some notable financial advisors in these deals are UBS, Morgan Stanley and CBRE………………………………………..Full Article: Source

Russia may extend National Wealth Fund deposits in VEB for 5 years

Posted on 29 December 2015 by VRS  |  Email |Print

Russia’s finance ministry has proposed to extend the National Wealth Fund’s deposits in state development bank Vnesheconombank (VEB) for five years, the ministry’s document showed on Monday.
The ministry also suggested that the government should extend the Fund’s deposits in VEB at an interest rate of no less than 0.25 percent with a three-year grace period, the document published on the website for official drafts showed………………………………………..Full Article: Source

ADIA, Portuguese insurer garner bulk of QFII quota awards for December

Posted on 29 December 2015 by VRS  |  Email |Print

China’s State Administration of Foreign Exchange extended another $1 billion in quota capacity to the Abu Dhabi Investment Authority on Dec. 25, lifting the sovereign wealth fund’s total under the state’s qualified foreign institutional investor program to $2.5 billion, according to SAFE’s latest monthly listing of QFII quotas Monday.
The Christmas top-up leaves ADIA on par with Norges Bank and the Hong Kong Monetary Authority as the QFII participants with the biggest quotas, $2.5 billion apiece………………………………………..Full Article: Source

Samruk-Kazyna announces six agreements at Kazakhstan-China Business Council

Posted on 28 December 2015 by VRS  |  Email |Print

Samruk-Kazyna, the sovereign wealth fund of the Republic of Kazakhstan, has announced memorandums of understanding and agreements for five projects totaling US$4bn around the 3d meeting of the Kazakhstan-China Business Council (KCBC).
The agreements reached at the KCBC demonstrate the deepening relationship between Kazakh and Chinese business, the two nations at the heart of the New Silk Road. Attended by more than 350 representatives from governments and business of both countries, the event included key note remarks from Kazakhstan’s Prime Minister Karim Massimov, Samruk-Kazyna’s CEO Umirzak Shukeyev………………………………………..Full Article: Source

Russian SWFs have shown investment interest in NIIF: FinMin

Posted on 28 December 2015 by VRS  |  Email |Print

Stressing that Russian companies want to be part of ‘Make in India’, Finance Ministry today said Russian sovereign wealth funds, including Rusnano, have shown keen interest to invest in National Investment and Infrastructure Fund (NIIF).
“Very positive discussions in India Russia CEOs meeting. Great interest from Russian side to invest in India and be part of Make in India,” Economic Affairs Secretary Shaktikanta Das tweeted. Hard selling India as an attractive investment destination, Prime Minister Narendra Modi has invited Russian CEOs to invest in sectors like infrastructure, aerospace and diamond………………………………………..Full Article: Source

Abu Dhabi sovereign fund looks beyond trophy sites and major cities

Posted on 21 December 2015 by VRS  |  Email |Print

The four-star Renaissance hotel in Raleigh, N.C., and the cluster of 75 residential apartments in east London called Fizzy Canning Town have little in common except that they share a landlord based in a Middle Eastern desert thousands of miles away.
That landlord—the Abu Dhabi Investment Authority, or ADIA—has become one of the largest property owners in the world. Increasingly, its army of Persian Gulf-based deal makers is looking beyond the trophy properties that have attracted sovereign-wealth funds in the past to a broader range of cities and buildings………………………………………..Full Article: Source

Consortium closes in on City Airport

Posted on 21 December 2015 by VRS  |  Email |Print

A huge consortium including the sovereign wealth fund of Kuwait has been short-listed to bid for the airport. A mega-consortium of some of the world’s most powerful sovereign wealth and pension funds is among the leaders in the £2bn race to buy London City Airport.
A team made up of five suitors, including Wren House Infrastructure, which is an arm of the Kuwait Investment Authority, is believed to be on a shortlist of bidders that will be invited to make second-round offers for the airport in February. The group also includes Canadian funds Ontario Teachers’ Pension Plan (OTPP), Borealis Infrastructure, AIMCo and Hermes, the British investment manager………………………………………..Full Article: Source

1MDB’s love affair with the Arab world

Posted on 21 December 2015 by VRS  |  Email |Print

When it was first set up as Terengganu Investment Authority (TIA) in early 2009, 1Malaysia Development Bhd (1MDB) set out to drive strategic development of national interests. After it was taken over by the federal government by mid-2009, however, the meaning of ‘strategic’ seems to have taken an Arabic flavour.
The company’s board of advisers, for starters, count two prominent Middle Easterners as advisers - former Qatar prime minister Sheikh Hamad Bin Jassim Bin Jabr Al-Thani as special adviser while adviser Khaldoon Khalifa Al Mubarak is CEO of Mubadala Development Co, an investment company owned by the Abu Dhabi emirate in the United Arab Emirates………………………………………..Full Article: Source

Norway Oil Fund Plans Infrastructure Foray in 2017

Posted on 18 December 2015 by VRS  |  Email |Print

Yngve Slyngstad, chief executive of Norway’s oil fund, one of Europe’s largest investors, said Thursday that the fund would be ready to buy infrastructure around 2017 if mandated by the Norwegian parliament, but it would proceed more slowly than it did with real estate.
“We are signaling a relatively slow buildup,” Mr. Slyngstad told The Wall Street Journal in an interview. “It took a little bit more than a year from [when] we got the mandate to invest in real estate until we made our first investment, and that will clearly also be the case for infrastructure.”……………………………………….Full Article: Source

Azerbaijan’s Oil Fund: part of trade & office center ‘Actor Gallery’ rented for long term

Posted on 18 December 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has clarified the information of several Russian mass media about the closure of SOFAZ-owned commercial & office center “Actor Gallery” for reconstruction. SOFAZ reports that part of this center (add: 16, Tverskaya Street, Moscow) will be rented for a long term.
“Please be informed that centre’s 3-storey part with shopping facilities will be rented for a term of 32 years to one of the famous brands. This will have a positive impact on the cost of the building and profitability of investments made by SOFAZ at the time of its purchase,” the Fund said in a statement………………………………………..Full Article: Source

$850M 1MDB payment sent to Virgin Island firm: WSJ

Posted on 18 December 2015 by VRS  |  Email |Print

A deeply indebted Malaysian investment fund may have sent as much as $850 million to a British Virgin Islands entity set up with a name closely resembling one owned by an Abu Dhabi sovereign wealth fund, the Wall Street Journal reported, citing documents and people familiar with the matter.
Last year, a unit of 1Malaysia Development Bhd., or 1MDB, transferred funds to an entity called “Aabar Investments PJS Ltd.,” which has a name closely resembling Aabar Investments PJS, a subsidiary of Abu Dhabi’s International Petroleum Investment Co. (IPIC), the WSJ said………………………………………..Full Article: Source

1MDB sent $ 850 mil to entity set up to appear owned by Abu Dhabi wealth fund

Posted on 18 December 2015 by VRS  |  Email |Print

A troubled Malaysian state investment fund sent at least $850 million last year to an offshore entity set up to appear that it was owned by an Abu Dhabi sovereign-wealth fund, a transfer which deepens the mystery over billions of dollars that are unaccounted for, according to documents reviewed by The Wall Street Journal and people familiar with the matter.
The 1Malaysia Development Bhd. fund, or 1MDB, set up by Malaysian Prime Minister Najib Razak in 2009 to promote economic development, is under investigation in at least six countries over a broad array of allegations that money was siphoned off for political spending and for personal gain. One focus of investigation is $2.4 billion in payments that 1MDB said it made to a unit of Abu Dhabi’s International Petroleum Investment Co., or IPIC, as part of a deal involving the Malaysian fund’s purchase of power plants………………………………………..Full Article: Source

Temasek will wait before deciding on StanChart stake

Posted on 18 December 2015 by VRS  |  Email |Print

Standard Chartered got a boost from a report that a sovereign wealth fund was willing to give it more breathing room to successfully complete its turnaround, before deciding what to do with its stake in the lender. Reuters reported that, for the moment, Singapore´s SWF, Temasek, would hold off from deciding the fate of its approximately £2.6bn stake in the Asia-focused lender.
In a vote of confidence for the bank, in a research note sent on 16 December analysts at JP Morgan said that following the recent successful $5.2bn rights issue and after the Bank of England´s stress tests, in their view investors´ capital concerns had been adressed………………………………………..Full Article: Source

Petrodollars And Sovereign Wealth Funds

Posted on 18 December 2015 by VRS  |  Email |Print

Discussion of sub-$50 crude oil on SWFs (Sovereign Wealth Funds) and the resulting reversal in flows to equity, bond, commodity, capital and asset markets. Brief discussion of ED, or “euro/dollar,” liquidity. Brief discussion of the effects of a potential dollar melt up.
Funded by oil revenues, mostly, it is estimated that sovereign wealth funds have amassed at least $7 trillion in assets, and quite likely significantly more than that…. That sets up a sort of petro-stock flow, operating in an almost direct manner exactly as the wrongly characterized petro-dollar is thought to………………………………………..Full Article: Source

IMF Says Ukraine Bond Owned by Russia Is Official Sovereign Debt

Posted on 17 December 2015 by VRS  |  Email |Print

The International Monetary Fund’s executive board ruled that a bond sold by Ukraine to Russia should be considered official sovereign debt, putting pressure on Ukrainian officials to start restructuring talks with their Russian counterparts.
The bond was acquired by and is held by Russia’s National Wealth Fund, an agency acting on behalf of the Russian government, according to a staff paper considered by the board. Russia bought a $3 billion bond from the government of former Ukrainian President Viktor Yanukovych in 2013………………………………………..Full Article: Source

Tabling of A-G’s final 1MDB report tomorrow postponed, says PAC head

Posted on 17 December 2015 by VRS  |  Email |Print

The final report of the Auditor-General on 1Malaysia Development Berhad (1MDB) which is expected to be tabled to the Public Accounts Committee (PAC) tomorrow has been postponed to include the latest updates.
“The final report was postponed as it has to be updated,” said PAC chairman Datuk Hasan Arifin when contacted by Bernama. He however did not mention any new dates for the tabling of the report. Earlier, Hasan was reported as saying the Auditor-General’s final report on 1MDB was expected to be tabled to PAC on December 17………………………………………..Full Article: Source

After glory days, cheap oil forces sovereign funds to retreat

Posted on 16 December 2015 by VRS  |  Email |Print

The glory days of some oil-based sovereign wealth funds could be behind them now that cash-strapped governments are raiding the coffers to plug yawning budget gaps, with investment returns too weak to make up the shortfall. This is forcing some funds to sell assets to find ready cash, raising concerns that if this process accelerates, it could drive down the price of equities and other assets - creating a vicious circle.
Over the past two decades, sovereign wealth fund (SWF) assets have grown to as much as $7 trillion, according to Morgan Stanley, including everything from direct stakes in companies to luxury property assets. But those funds that rely on their governments’ oil export revenues for their main source of new money - such as in Saudi Arabia, Russia or Norway - now face a double whammy………………………………………..Full Article: Source

China to Move Wealth Fund HQ to N.Y., Signaling Increased Focus on U.S.

Posted on 15 December 2015 by VRS  |  Email |Print

China Investment Corp, the government’s $747bn (£493.2bn) sovereign wealth fund, is shifting its focus to US investments and broader global ambitions as it prepares to move its North American headquarters to New York from Toronto early next year, according to reports.
With its major Canadian investments in the red as energy and mining companies reel from tumbling oil and metal prices, CIC is looking to cut its exposure, and could move to New York as early as March 1, it is claimed. It came as China joined the European Bank for Reconstruction and Development, handing the world’s second biggest economy investment routes into Europe, Africa and Middle East………………………………………..Full Article: Source

S&P affirms AAA rating, stable outlook for Temasek

Posted on 15 December 2015 by VRS  |  Email |Print

Ratings agency Standard & Poor’s (S&P) affirmed Temasek Holdings’ AAA long-term credit rating and stable outlook yesterday. It made the finding on the basis that the firm will continue to adhere to strict investment guidelines that support the “strong credit characteristics” of its assets portfolio.
S&P’s report said Temasek’s limited debt supports its investment capabilities, allowing it to mobilise “substantial funds on a timely basis to seize opportunities”. Its affirmation of Temasek’s corporate credit ratings also took into account its view of an “extremely high” likelihood of extraordinary support from the Singapore Government, if necessary………………………………………..Full Article: Source

Moody’s affirms Botswana’s outlook stable

Posted on 15 December 2015 by VRS  |  Email |Print

Moody’s Investors Service has affirmed Botswana’s A2 government bond and issuer ratings with a stable outlook. The sovereign wealth fund, the Pula Fund, had more than $5 billion, or 36.9 per cent of GDP forecast for 2015, at end-September 2015. Moody’s expects that the economic stimulus package the government considers will be limited in size and hence will neither significantly reduce the Pula Funds’s large assets, nor raise Botswana’s government debt-to-GDP ratio.
Low government debt and the large foreign asset positions of the Bank of Botswana (BoB) put the sovereign in a strong net creditor position of about 40% of GDP at the end of 2014. In 2014, the Pula Fund’s foreign assets were twice as high as the government’s outstanding debt………………………………………..Full Article: Source

RAM Ratings reaffirms Qatar’s ratings

Posted on 15 December 2015 by VRS  |  Email |Print

RAM Ratings has reaffirmed Qatar’s respective global- and ASEAN-scale sovereign ratings of gAA3(pi)/stable and seaAAA(pi)/stable. Besides having the lowest fiscal breakeven oil price in the GCC region after Kuwait, Qatar’s huge sovereign wealth – accumulated from past fiscal surpluses – and reserves totalling 172 per cent of GDP underpin its credit strength and should help it weather a period of low oil and gas prices.
As the downtrend in LNG prices lags that of oil, Qatar is still expected to record a current account surplus of 4.6 per cent of GDP in 2015 (2014: 26 per cent of GDP). Although diversification efforts over the long term (in line with the 2030 Qatar National Vision) has strengthened the State’s resilience, depressed oil prices have led to delays and a re-prioritisation of development projects………………………………………..Full Article: Source

Oil still accounts for 93% of Kuwaiti income despite price slump

Posted on 15 December 2015 by VRS  |  Email |Print

Oil will still account for 93 percent of Kuwait’s revenues during 2015-16, despite the lower price, Industrial Bank of Kuwait chairman Abdulmohsen Al Hunaif reportedly said .Despite analysts including the International Monetary Fund warning for several years that the country’s fiscal position was weak and it needed to diversify, the Kuwaiti government has made little progress.
Instead, its sovereign wealth fund is reportedly considering selling assets. Al Anba newspaper reported in October that the Kuwait Investment Authority (KIA), which is estimated to have more than $500bn of assets, was studying whether to liquidate assets that generate annual returns of below 9 percent, potentially generating $30bn in sales………………………………………..Full Article: Source

Can aluminium boost non-oil revenues in the GCC?

Posted on 14 December 2015 by VRS  |  Email |Print

Firstly, Bahrain’s sovereign wealth fund, Mumtalakat, announced a fresh set of funding plans for the metal industry during the month. ver two consecutive days, reports stated Mumtalakat would invest in Spanish materials producer, Aleastur, as well as form a joint venture with India’s Synergies Castings.
In a Reuters report dated 17 November, Joseph Kirikian, head of industries and services at Mumtalakat, said the Aleastur investment comes in light of the Spanish company’s expansion plans. “We are taking a minority stake and helping the company to expand into the Gulf,” Kirikian said………………………………………..Full Article: Source

Sovereign funds’ M&As drive surge in capital market deals: Duff & Phelps

Posted on 11 December 2015 by VRS  |  Email |Print

Mergers and acquisitions (M&As) by sovereign wealth funds drove an almost doubling of capital market deals in Singapore in 2015, according to a report by corporate finance adviser Duff & Phelps. There were 685 M&A, private-equity, venture-capital and initial public offering deals worth US$103.8 billion in Singapore this year, according to the report. That was almost twice the US$55.4 billion of deals in 2014.
M&A transactions accounted for US$101.2 billion of the 2015 total, which was twice the US$50.7 billion for 2014. The US$37 billion acquisition of Broadcom Corp by Singapore and California-based Avago Technologies was the biggest deal of the year, but Singapore government-controlled investors GIC and Temasek and companies linked to them were involved in the next six biggest M&A deals in Singapore………………………………………..Full Article: Source

Temasek to participate in Chinese bank’s stake sale

Posted on 11 December 2015 by VRS  |  Email |Print

Temasek Holdings, the biggest foreign investor in Chinese banks, will raise its profile in the country’s financial sector by taking part in Postal Savings Bank of China’s (PSBC) private fund-raising exercise. PSBC will sell 16.92% of its stake to 10 global strategic partners, including financial institutions, such as JP Morgan Chase, UBS Group, Temasek Holdings and Alibaba-owned Ant Financial.
The stake sale, raising US$7.06 billion ($9.93 billion), comes ahead of a planned initial public offering by the Chinese lender, which is expected to take place in Hong Kong next year………………………………………..Full Article: Source

Angola: Sovereign Fund With High Transparency Rate

Posted on 11 December 2015 by VRS  |  Email |Print

The Angolan Sovereign Fund (FSDEA) has received very positive review from the Linaburg-Maduell rating agency, in regard to the second quarter of the year 2015, with its transparency level placed high by the Sovereign Wealth Fund Institute (SWFI).
According to a note from the institution, which reached ANGOP in Luanda last Wednesday, the Angolan Sovereign Fund (FSDEA) got an 8 out of 10 rate, which means the FSDEA stands among the world’s most transparent sovereign funds. The SWFI is a renowned international rating agency focussed on monitoring the performance of sovereign funds all over the world………………………………………..Full Article: Source

K Law acts on GMR’s 2000 Crore fund raise via FCCB

Posted on 11 December 2015 by VRS  |  Email |Print

GMR Infrastructure Ltd has raised Rs. 2,000 Crore ($300 million) by selling foreign currency convertible bonds (FCCBs) to Kuwait Investment Authority (KIA), a sovereign wealth fund. This is the first transaction under the new regime for long-term external commercial borrowings notified by the Reserve Bank of India.
K Law acted as the legal counsel to GMR Infrastructure Limited. The team was led by Partners – Ajay Sawhney and Gautam Srinivas, along with Associate Partner Milind Jha. Clifford Chance acted as international legal counsel. The Clifford Chance team was led by Partner Rahul Guptan………………………………………..Full Article: Source

Temasek to take part in Chinese bank’s stake sale

Posted on 10 December 2015 by VRS  |  Email |Print

Singapore investment firm Temasek, the biggest foreign investor in Chinese banks, will further raise its profile in the country’s financial sector by taking part in Postal Savings Bank of China’s (PSBC) private fund-raising exercise.
PSBC will sell 16.92 per cent of its stake to 10 global strategic partners, including financial institutions such as JP Morgan Chase, UBS Group, Temasek Holdings and Alibaba-owned Ant Financial. The stake sale, raising US$7.06 billion (S$9.93 billion), comes ahead of a planned initial public offering (IPO) by the Chinese lender………………………………………..Full Article: Source

Alaska SWF Backs New SSgA Smart Beta Funds

Posted on 10 December 2015 by VRS  |  Email |Print

Increasingly, sovereign wealth funds and pensions are embracing the usage of factor-based investing or smart beta. State Street Global Advisors (SSgA) has US$ 81 billion in assets under management when it comes to smart beta offerings. SSgA developed new exchange-traded funds (ETF) with input from the Alaska Permanent Fund Corporation (APFC).
The APFC has been contemplating smart beta strategies for well over a year, according to SWFI Compass - an opportunity tracking service. In return, the AFPC is investing US$ 1 billion across the three new smart beta ETFs. The three ETFs are broken out by yield, momentum and low volatility………………………………………..Full Article: Source

banner
February 2016
M T W T F S S
« Jan    
1234567
891011121314
15161718192021
22232425262728
29