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Main work completes on Georgian section of Baku-Tbilisi-Kars railway

Posted on 29 September 2014 by VRS  |  Email |Print

A section between Marabda and Kartsakhi stations was constructed in Georgia as part of the Baku-Tbilisi-Kars (BTK) railway project, Azeryolservis JSC under the Azerbaijani Transport Ministry said. Its subdivision is the contractor of three of the four stages of the railway line construction on the territory of Georgia.
SOFAZ finances the project in accordance with the decree of the President of Azerbaijan ‘On the implementation of the activities of the Baku-Tbilisi-Kars project’ dated February 21, 2007………………………………………..Full Article: Source

Kazakh envoy meets with Director of Abu Dhabi Fund for Development

Posted on 26 September 2014 by VRS  |  Email |Print

On September 24, 2014 Ambassador of Kazakhstan to the UAE Kairat Lama Sharif met with Mr. Mohammed Saif Al Suwaidi, the Director General of the Abu Dhabi Fund for Development (ADFD. During the meeting Kairat Lama Sharif briefed on the process of reform of the “Samruk-Kazyna” Fund in several key areas, in accordance with the best international practices and advanced international experiences of sovereign wealth funds.
In addition, the Kazakh diplomat noted that currently transmission of the public assets and quasi-public sector’s assets to the competitive environment within the framework of second wave of privatization in Kazakhstan has begun. Mr. Mohammed Saif Al Suwaidi praised the efforts of Astana for sustainable economic growth of modern Kazakhstan………………………………………..Full Article: Source

Temasek arm signs 2nd LNG purchase contract

Posted on 25 September 2014 by VRS  |  Email |Print

Singapore state investor Temasek-owned Pavilion Energy has signed a second long-term contract to buy liquefied natural gas (LNG) for trading and supply to Asia, taking another step towards its goal of becoming a global company in the fuel.
Pavilion Energy said in a statement yesterday its wholly owned subsidiary Pavilion Gas Pte has struck a deal with BP under which the UK company will supply it with 0.4mn tonnes per year of LNG for 20 years from 2019. It did not say how much Pavilion would pay for the LNG………………………………………..Full Article: Source

Biggest Wealth Fund CEO Sticks to Norway in Own Investments

Posted on 25 September 2014 by VRS  |  Email |Print

As head of the world’s biggest sovereign wealth fund Yngve Slyngstad has invested in more than 80 countries. Yet when placing his own money, he sticks to his home country Norway.
The chief executive officer of Norges Bank Investment Management, the unit inside Norway’s central bank that manages the $870 billion fund, owns shares in 14 companies including Statoil ASA (STL) and Telenor ASA (TEL), according to information released by NBIM. Since heading the fund in 2008, Slyngstad has bought stock for 1.6 million kroner ($252,000) and sold shares for about 100,000 kroner………………………………………..Full Article: Source

Singaporean Fund Revs Up GBP2bln RAC Takeover

Posted on 24 September 2014 by VRS  |  Email |Print

A Singaporean state fund is in secret talks to lead a £2bn-plus takeover of the RAC, a move that would end the prospect of a stock market listing of the famous roadside recovery business. Sky News can reveal that the Government Investment Corporation of Singapore (GIC) is discussing with Carlyle, the RAC’s existing owner, a deal that could be struck within days.
GIC is understood to have been interested in participating in a takeover of the RAC, which has 8.2 million members, for some time, having been enticed by the company’s stable cashflows and growth prospects, according to a person close to the situation………………………………………..Full Article: Source

1MDB’s offering to push sukuk sales in Malaysia above RM50b

Posted on 24 September 2014 by VRS  |  Email |Print

The world’s biggest Islamic debt offering this year from Malaysia’s sovereign wealth fund will push the nation’s sukuk sales beyond RM50 billion for only the second time in 16 years. 1Malaysia Development Bhd (1MDB) plans to sell as much as RM8.4 billion of the notes, adding to the RM46.9 billion sold so far that’s almost double the amount a year earlier.
After 2012’s record issuance of RM95.8 billion, CIMB Group Holdings Bhd and Asian Finance Bank Bhd see RM100 billion as being achievable in the next few years………………………………………..Full Article: Source

MPs laud Khazanah’s outplacement centre for axed MAS staff

Posted on 23 September 2014 by VRS  |  Email |Print

Three members of parliament have lauded Khazanah Nasional’s plan to set up an “outplacement support” centre for some 6,000 Malaysia Airlines (MAS) staff to be axed as part of the airline’s restructuring programme.
The centre will focus on extending all relevant and required support to the employees leaving MAS, including professional, emotional, counselling and financial support to assist them in their transition to the next stage of their career………………………………………..Full Article: Source

Russia’s sovereign fund head struggles to stay above politics

Posted on 22 September 2014 by VRS  |  Email |Print

Kirill Dmitriev, the 39-year-old, boyish-looking head of Russia’s sovereign wealth fund, was supposed to change the face of Russian capitalism. Mr Dmitriev was going to overcome western funds’ reluctance to invest in a country many viewed as corrupt, prone to state meddling and plagued by a law-of-the-jungle legal system. In return, Russia’s economy would become more vibrant and less reliant on oil and gas.
At least that was the plan three years ago when President Dmitry Medvedev entrusted the Harvard and Stanford-educated former Goldman Sachs banker with $10bn of government cash to start the Russian Direct Investment Fund………………………………………..Full Article: Source

Nigeria’s SWF in an African context: a curate’s egg

Posted on 22 September 2014 by VRS  |  Email |Print

The growth in the number of sovereign wealth funds (SWFs) in Africa calls for an attempt to put Nigeria’s own arrangements into context. If we take a broad definition of a fund, more than 15 countries in Africa have one either in operation or on the drawing board. Kenya’s is the latest creation, and Botswana’s (Pula Fund) the oldest on the continent, established in 1993.
The largest is Algeria’s although it was once Libya’s before its substantial losses on positions in derivative products and the cost of the sizeable fees charged by household names in international investment banking for the related expertise………………………………………..Full Article: Source

Nigeria: Sovereign Wealth Fund: Between Legality and Desirability

Posted on 22 September 2014 by VRS  |  Email |Print

Nigeria’s Supreme Court will be entertaining a suit filed by the 36 states of the federation against the federal government on the legality of the Nigeria’s Sovereign Wealth Fund (SWF). But the legality and desirability of the institution of a SWF in Nigeria are not one and the same thing.
The legality and desirability of the institution of a Sovereign Wealth Fund (SWF) in Nigeria are not one and the same thing. While determination of the former is an exclusive preserve of the law court and at the moment sub judice, the latter which is not a subject of dispute before any adjudicating body is, however, the focus of this piece………………………………………..Full Article: Source

Goldman Sachs reveals ties to Gaddafi-era Libya fund

Posted on 22 September 2014 by VRS  |  Email |Print

Goldman Sachs has admitted in court documents to having used small gifts, occasional travel and an internship to cement its ties with Libya’s sovereign wealth fund under Muammar Gaddafi, the Financial Times reported today.
The details were in the investment bank’s defence to a lawsuit filed by the Libyan Investment Authority (LIA) in London in January, which accused Goldman Sachs of exploiting its position to make money on failed derivative trades………………………………………..Full Article: Source

Kuwait Investment Authority To Expand Germany Investments

Posted on 22 September 2014 by VRS  |  Email |Print

The Kuwait Investment Authority (KIA), one of the world’s largest sovereign wealth funds and a long-term investor in German auto maker Daimler AG, wants to ramp up investments in Europe’s largest economy.
Speaking at a ceremony in Stuttgart to celebrate the 40-year anniversary of Kuwait’s investment in Daimler, Anas K. Al-Saleh, minister of finance in Kuwait and chairman of the board of the Kuwait Investment Authority, said the KIA would continue to increase its investments in Germany………………………………………..Full Article: Source

1MDB planning ‘biggest bond sale’, say sources

Posted on 22 September 2014 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) plans to sell as much as RM8.4 billion of Islamic bonds, the world’s biggest offering of sukuk in 2014, said two people familiar with the matter.
The sovereign wealth fund, whose debt has tripled in two years, is seeking approval from the Securities Commission Malaysia (SC) for the sale, said the people who asked not to be named because the information is private. The proceeds will be used to help fund construction of a 2,000MW plant in Negri Sembilan, they said……………………………………….Full Article: Source

Kuwait Investment Authority says to expand Germany investments

Posted on 19 September 2014 by VRS  |  Email |Print

The Kuwait Investment Authority (KIA), one of the world’s largest sovereign wealth funds and a long-term investor in German auto maker Daimler AG , wants to ramp up investments in Europe’s largest economy.
Speaking on Thursday at a ceremony in Stuttgart to celebrate the 40-year anniversary of Kuwait’s investment in Daimler, His Excellency Anas K. Al-Saleh, minister of finance of the State of Kuwait and chairman of the board of the Kuwait Investment Authority, said the KIA would continue to increase its investments in Germany……………………………………..Full Article: Source

Daimler and the Kuwait Investment Authority celebrate the anniversary of their 40-year partnership

Posted on 19 September 2014 by VRS  |  Email |Print

The Kuwait Investment Authority has been a shareholder of Daimler for the past 40 years. Partnership underscored at a ceremony featuring around 100 guests. His Highness Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah, the Prime Minister of the State of Kuwait: “Our celebration today reflects the concept of successful economic partnership, and clearly demonstrates the astuteness of the State of Kuwait in seeking to invest financial surplus in long term investments to assist future generations in facing the future confidently and with resolve.”
Dr. Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG: “During the last 40 years, Kuwait became Daimler’s most reliable partner despite all ups and downs in corporate history. We are grateful and deeply honored to have an outstandingly reliable partner who is willing to shape a bright future for Daimler together with us.”…………………………………….Full Article: Source

Kong Hee: Xtron was ‘like our own GIC’

Posted on 17 September 2014 by VRS  |  Email |Print

Xtron was set-up in 2003 by three church members to run the music career of pastor Kong Hee’s wife, Sun Ho, as well as to own and manage future properties the church could use. Court documents revealed the minutes of an extraordinary general meeting on 10 August 2008, in which church founder Kong described Xtron as being the church’s “own GIC”, Channel NewsAsia reported.
GIC is Singapore’s sovereign wealth fund that preserves and invests the country’s foreign reserves for the future. Kong added that Xtron was the result of church members “doing things for the purpose of wanting to fulfil the vision of [the] church”, and he also mentioned at that meeting that the company needed to be “friendly” towards the church, referring to the priority given to the church to rent buildings that Xtron owned…………………………………Full Article: Source

Bulgarian central bank says wants early talks on Corpbank rescue

Posted on 16 September 2014 by VRS  |  Email |Print

Vienna-based advisory firm EPIC, acting for Corpbank’s main shareholders and potential investors, is seeking to start work with the central bank this week on a rescue plan for Bulgaria’s fourth largest lender, shut since June 20 after a run on deposits.
EPIC has said it represents Bulgarian Tsvetan Vassilev, who owns 50.6 percent in Corpbank, an Omani sovereign wealth fund with a 30 percent stake and VTB Capital, controlled by Russia’s VTB Bank with about 9 percent………………………………………..Full Article: Source

State funds give mixed views on managers

Posted on 15 September 2014 by VRS  |  Email |Print

Appetite for alternative investments is only set to increase among institutional investors globally, with long-term contrarian external managers very hard to find. But while the evolution of institutional investment models falls into a similar pattern, starting with traditional public market exposures before expansion by geography and asset class, state funds’ views on the use of external managers varies markedly, speakers revealed at our China Investment Forum.
Addressing the audience during a panel discussion on best practices in international investing, Tomas Franzen, chief investment strategist for the second Swedish national pension fund (AP2), outlined how it plans to insource all its investments bar alternatives within the next two years………………………………………..Full Article: Source

Portfolios, investment funds performance still limited at KSE

Posted on 15 September 2014 by VRS  |  Email |Print

Financial analysts said the performance of the financial portfolios and the investment funds at the Kuwait Stock Exchange (KSE) is still limited, though they lead trading, either up or down. A host of control rules have to a great extent restricted the performance of investment funds, and that of portfolios is limited regarding the opportunities available on the market, said two analysts interviewed by KUNA.
The Kuwait Investment Authority (KIA) has been trying to revive the role of some funds, but with no real effect due to the lack of adequate funding and control measures imposed on them, together with absence of favorable opportunities………………………………………..Full Article: Source

Kazakh fund Samruk-Kazyna puts 14 companies on sale

Posted on 12 September 2014 by VRS  |  Email |Print

Samruk-Kazyna group of companies concludes assets presale preparation scheduled to be transferred in the private sector in September 2014, the deputy chairman of the Samruk-Kazyna National Welfare Fund Elena Bakhmutova told Trend Sept. 10. “The fund plans to auction 14 companies in September 2014. Assessment procedure on the current assets is being finalized,” Bakhmutova said, speaking to reporters in Astana.
However, she noted that nine companies will be put on the sale as part of Kazakhstan Temir Joly NC JSC, two companies of Kazakhstan Engineering NC JSC, a subsidiary of KazMunaiGas NC JSC and two companies of Samruk-Kazyna………………………………………..Full Article: Source

Oman SWF Working With Bulgaria To Solve Corpbank Problem

Posted on 12 September 2014 by VRS  |  Email |Print

Corpbank, in which Oman’s SGRF is the second-biggest shareholder with a stake of about 30 per cent, was hit by a run on deposits in June. Oman’s biggest sovereign wealth fund, the State General Reserve Fund (SGRF), is working with the Bulgarian government to try to resolve problems at Corporate Commercial Bank (Corpbank), the SGRF’s chairman said on Wednesday.
Corpbank, in which the SGRF is the second-biggest shareholder with a stake of about 30 percent, was hit by a run on deposits in June, prompting the Bulgarian central bank to seize control and shut down its operations, pending the outcome of an audit due to completed next month. SGRF Chairman Darwish Al Balushi, who is also Oman’s minister for financial affairs, did not give details of any rescue plan for the Bulgarian bank in brief remarks to reporters………………………………………..Full Article: Source

Jose Dos Santos: Angolan wealth fund chief and president’s son (Video)

Posted on 11 September 2014 by VRS  |  Email |Print

Angola has announced that it has identified direct investments in sub-Saharan Africa, and is poised to start deploying up to a third of its $5bn (£3.1bn) sovereign wealth fund to start developing them. The fund was set up in 2012 to invest Angola’s oil wealth and ensure a steady income for future generations.
But the fund has also been accused of lacking transparency after President Eduardo dos Santos’ 36-year-old son Jose, was made its head. Jose dos Santos spoke to the BBC’s Focus on Africa about his appointment and whether the fund will be used to improve the country’s infrastructure………………………………………..Full Article: Source

Oman fund says working with Bulgaria to solve Corpbank problems

Posted on 11 September 2014 by VRS  |  Email |Print

Oman’s biggest sovereign wealth fund, the State General Reserve Fund (SGRF), is working with the Bulgarian government to try to resolve problems at Corporate Commercial Bank (Corpbank), the SGRF’s chairman said on Wednesday.
Corpbank, in which the SGRF is the second-biggest shareholder with a stake of about 30 percent, was hit by a run on deposits in June, prompting the Bulgarian central bank to seize control and shut down its operations, pending the outcome of an audit due to completed next month………………………………………..Full Article: Source

Nigeria SWF to buy stake in gas processing plant

Posted on 11 September 2014 by VRS  |  Email |Print

The Nigeria Sovereign Investment Authority (NSIA) will in a couple of weeks announce a major investment in gas processing plants with the aim of solving the problem of gas in the power sector of the economy, says Uche Orji, chief executive, NSIA, managers of the nation’s sovereign wealth fund.
“In the next three weeks, a big investment in gas processing will be announced by the NSIA,” said Orji. Orji, who spoke in Lagos at the launch of “The Nigerian Banking Sector Report” by Afrinvest, said that the investment would be made out of the $200million for gas to power by the federal government………………………………………..Full Article: Source

Kazakh fund Samruk-Kazyna puts 14 companies on sale

Posted on 11 September 2014 by VRS  |  Email |Print

This month, the state holding “Samruk-Kazyna” intends to sell 14 companies, the press office of the Fund informs. “In September 2014 the fund plans to auction 14 companies”, the press-service of the state holding reported citing the deputy chairman of the Board of “Samruk-Kazyna” Elena Bakhmutova.
List for sale includes 9 companies as part of “Kazakhstan Temir Zholy” JSC, 2 of “Kazakhstan Engineering” JSC, 1 subsidiary of “KazMunayGas” JSC and 2 of “Samruk-Kazyna”. Information about on-sale objects is promptly updated on the site of the State Property Committee of the Ministry of Finance………………………………………..Full Article: Source

Tanzania: Angola’s growth set to rally after dip in oil output - IMF staff report

Posted on 10 September 2014 by VRS  |  Email |Print

Lower oil production is set to cut Angola’s economic growth in 2014, before a rebound in the oil industry boosts growth next year, the International Monetary Fund (IMF) said Tuesday in its latest assessment of the southern African nation’s economy.
“Inflation is at historic lows, international reserves are adequate, and the country has started to save part of its oil wealth for future generations through Angola’s Sovereign Wealth Fund,” IMF staff said in the report, noting that authorities in Angola had restored macroeconomic stability after the country was hit hard by the global economic crisis………………………………………..Full Article: Source

Tsunami of sovereign funds threatens world markets, say investors

Posted on 09 September 2014 by VRS  |  Email |Print

With returns on government bonds at rock-bottom prices, sovereign wealth funds are muscling into stock markets and other higher-yielding assets like real estate at a rate that private investors warn could destabilise the world economy.
Since central banks cut interest rates to record lows in a bid to shore up flagging economic growth, world governments have had to look further afield to grow public pension money or central bank currency reserves. But the resulting tide of money is in danger of distorting markets, causing prices to reflect political priorities rather than financial reality, insiders say. It’s also threatening to inflate the very price bubbles that central bank teams globally are working so hard to prevent, experts suggest……………………………………….Full Article: Source

Close down MAS and overhaul Khazanah, says veteran newsman

Posted on 09 September 2014 by VRS  |  Email |Print

A veteran journalist today suggested that Malaysia’s sovereign fund Khazanah Nasional Bhd should be restructured while Malaysia Airlines (MAS) should be closed down. In his latest blog posting, Datuk A. Kadir Jasin questioned Khazanah’s ability to manage Malaysia Airlines and revive the fortunes of the ailing national carrier.
Kadir wrote that the recent proposed privatisation of Malaysia Airlines has resulted in Khazanah having to come up with RM6 billion. “Prior to this, Khazanah has sunk RM7 billion into Malaysia Airlines which came to naught as various restructurings failed to turn the company around.”……………………………………….Full Article: Source

$5.5 Tril. Global Investment Consultation Body “CROSAPF” to Set Sail

Posted on 08 September 2014 by VRS  |  Email |Print

A government-led investment consultative group called the “Co-investment Roundtable of Sovereign and Pension Funds” (CROSAPF) that encompasses sovereign wealth funds, pension fund firms, and global public funds will be formed soon. Hosted by Korea Investment Corporation, a sovereign wealth fund, and sponsored by Korea EximBank, CROSAPF is Korea’s first global-level co-investment consultation body.
The total number of organizations within the body is 31 including China Investment Corporation (China), the Abu Dhabi Investment Authority (the United Arab Emirates), Temasek Holdings and GIC Private Limited (Singapore), Government Pension Investment Fund (Japan), and the Asian Development Bank. Its total assets under management will be about 5.5 trillion won………………………………………..Full Article: Source

Temasek, JTC to merge 4 units into mega-entity

Posted on 05 September 2014 by VRS  |  Email |Print

As urbanisation picks up pace across China, India and South-east Asia, investment giant Temasek Holdings and industrial developer JTC Corp are planning a merger of four of their operating subsidiaries into a single mega-entity, in an unprecedented move that will tap the opportunities resulting from this rapid development.
The two government-owned companies said advisers and consultants have been engaged to provide a fair market valuation of the four units: Temasek’s urbanisation consulting company Surbana International Consultants Holdings, and its Singbridge Group, which specialises in urban solutions, particularly in China, as well as JTC’s business space solutions provider Ascendas and its Jurong International Holdings (JIH), which offers expertise for the built environment………………………………………..Full Article: Source

Angola’s SWF ready to invest

Posted on 05 September 2014 by VRS  |  Email |Print

Six years after it was announced, Angola’s sovereign wealth fund is fully underway. It has received the final instalment of its $5bn initial endowment and has begun to take its funds out of cash and put them into longer-term investment.
In an interview with FT beyondbrics, José Filomeno Dos Santos, chairman of the Fundo Soberano de Angola (FSDEA), said that one third of the fund’s assets would be allocated to highly liquid securities such as cash, bonds and listed equities, one third into alternative investments in sub-Saharan Africa, and one third into what he called “opportunistic investments internationally: distressed assets that the fund could take advantage of, spin around and refocus.”……………………………………….Full Article: Source

Khazanah Eyes Investment Opportunities In Eastern Europe

Posted on 04 September 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd is considering broader investment opportunities in Eastern Europe, following the opening of its office in Istanbul, Turkey, last November. Executive Director and Chief Financial Officer Mohd Izani Ghani said the office was established to tap investment opportunities around Turkey, North Africa and Eastern Europe.
He, however, said Khazanah planned to issue a foreign currency sukuk in the region but this cannot be realised yet as it had no assets in Eastern Europe. “We haven’t quite covered Europe yet as an investment haven………………………………………..Full Article: Source

China’s No.1 in the stock market

Posted on 04 September 2014 by VRS  |  Email |Print

Chinese money has been pouring into the domestic stock market, with investors net purchasing 1.9 trillion won ($1.86 billion) in shares this year to surpass the United States as the No. 1 foreign country investing in Korea. Capital inflow from China comes in three ways: its sovereign wealth fund, the social security fund and QDIIs.
Among sovereign wealth funds worldwide, China’s are growing fast with three in the top 10: China Investment Corporation (CIC) in fourth place at $652.7 billion, the State Administration of Foreign Exchange (SAFE) fifth at $567.6 billion and the National Social Security Fund (NSSF) ninth at $201.6 billion. About 40 percent of CIC’s funds is in stocks………………………………………..Full Article: Source

Oil tax: Norway could teach Australia a thing or two about managing wealth

Posted on 04 September 2014 by VRS  |  Email |Print

Thanks to natural resources, Norway is a country of five million trustifarians – with each person theoretically being a millionaire. In Australia, mining benefits a selected few. Norway’s government Pension Fund Global was created in 1990 to make the most of the windfall of striking oil in the North Sea. Companies looking to extract Norwegian oil pay handsomely for the privilege.
The Norwegian government sums up the fund with the rather lengthy fortune cookie-like phrase “One day the oil will run out, but the return on the fund will continue to benefit the Norwegian population.” The bulging sovereign wealth fund, managed by the Norwegian government, is set to top $1trn within this decade. At the end of 2013, its value stood at 5.2trn kroner – that’s $903.4bn………………………………………..Full Article: Source

Khazanah’s restructuring hits at right target for MAS

Posted on 03 September 2014 by VRS  |  Email |Print

Khazanah Nasional’s recovery plan for Malaysia Airlines (MAS) may be the start of the new beginning for the airline, says RHB Research. It said on Tuesday the plan raised key concerns which had always weighed on MAS’ performance while showing the commitment of the related parties to revive the airline.
“Effective execution is key. We advise minority shareholders to accept the 27 sen offer price from Khazanah. Maintain Neutral,” said the research house. Khazanah’s revamp plan for MAS involved a RM4.6bil capital injection (after privatisation), ii) a 30% cut in workforce, and iii) review of routes and renegotiation of supply contracts………………………………………..Full Article: Source

GIC joins 2 lead investors to fund North Sea oil firm

Posted on 02 September 2014 by VRS  |  Email |Print

The Republic’s sovereign wealth fund, GIC, is investing in a new North Sea oil-and-gas exploration and production company, Siccar Point Energy Limited. Affiliates of heavyweights - Blue Water Energy and Blackstone Energy Partners - are pumping in an initial investment of up to US$500 million in the new firm, making it one of the largest ever private equity investments in North Sea oil.
The deal includes funding from GIC, which is investing alongside Blue Water Energy. Scotland-based Siccar Point Energy will participate across the full value chain, from exploration through to production………………………………………..Full Article: Source

Khazanah unveils Malaysia Airlines’ 12-point restructuring plan

Posted on 02 September 2014 by VRS  |  Email |Print

Malaysia Airlines majority shareholder, Khazanah Nasional Berhad, has outlined its proposed 12-point restructuring plan aimed at developing a new, profitable, market-driven airline by 2017. The announcement came just a day after Malaysia Airlines posted a second-quarter net loss of MYR305.7million (USD95.1million) exacerbated by the MH17 and MH370 tragedies.
“At its core, the plan involves the creation of a new company (“NewCo”), which will house the “New MAS” and the migration of the right-sized workforce and work practices and contracts into the NewCo,” the Malaysian sovereign wealth fund said. “It also includes details of the strict conditionality attached to restructuring into current MAS and further Khazanah investment into NewCo, amounting to up to MYR6billion (USD976.67million) on a staggered and conditional basis over a three-year period.”……………………………………….Full Article: Source

Khazanah denies RM6 billion as bailout in MAS turnaround

Posted on 01 September 2014 by VRS  |  Email |Print

The RM6 billion to be injected into troubled Malaysia Airlines (MAS) is not a bailout, said state national fund Khazanah Nasional Berhad, as it unveiled a massive revamp today to turn the national carrier around. Khazanah managing director Tan Sri Azman Mokhtar said the money can be recovered when the flag carrier is projected to attain profitability by the end of 2017, and when it prepares for relisting between 2018 and 2020.
“The RM6 billion is not a bailout and can be recovered,” he said after announcing details of the restructuring plan. Over the last ten years, Khazanah had pumped RM7 billion into the ailing airline, with RM5.7 billion alone in the last five years through three rights issues………………………………………..Full Article: Source

Khazanah okays MAS plan, awaits Cabinet approval

Posted on 28 August 2014 by VRS  |  Email |Print

State asset manager Khazanah Nasional Bhd has approved the comprehensive restructuring plan for the loss-making Malaysia Airlines that will see up to 6,000 jobs disappear, say sources. The plan will be discussed by the Cabinet, a day after the Khazanah board had a meeting chaired by the sovereign wealth fund’s chairman Prime Minister Datuk Seri Najib Razak.
“The plan has been approved, now its up to the Cabinet,” a source said. The centrepiece of the plan will include shaving off thousands of jobs, as well as putting in place opportunities for re-training and placing out staff members, and drawing up retrenchment packages in the loss-making flag carrier………………………………………..Full Article: Source

Khazanah prepares to swing axe?

Posted on 28 August 2014 by VRS  |  Email |Print

Malaysia Airlines (MAS) is reported to be considering axing up to 5,000 staff as part of its restructuring under sovereign wealth fund, Khazanah Nasional. This would amount to around a quarter of the carrier’s staff. The carrier is widely considered to be overstaffed, and was struggling well before the twin tragedies of this year.
Loss making routes, including flights to China and Frankfurt, are also reported to be in the firing line, and the airline is also said to be reviewing its fleet plans………………………………………..Full Article: Source

Khazanah okays MAS plan, awaits Cabinet approval

Posted on 27 August 2014 by VRS  |  Email |Print

State asset manager Khazanah Nasional Bhd has approved the comprehensive restructuring plan for the loss-making Malaysia Airlines that will see up to 6,000 jobs disappear, say sources. The plan will be discussed by the Cabinet today, a day after the Khazanah board had a meeting chaired by the sovereign wealth fund’s chairman Prime Minister Datuk Seri Najib Razak.
“The plan has been approved, now its up to the Cabinet,” a source said. The centrepiece of the plan will include shaving off thousands of jobs, as well as putting in place opportunities for re-training and placing out staff members, and drawing up retrenchment packages in the loss-making flag carrier………………………………………..Full Article: Source

Norway’s soaring oil fund gives government more spending power for 2015

Posted on 27 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund is growing far faster than expected, potentially leaving the government with more money to spend in next year’s budget, financial daily Dagens Naeringsliv reported on Tuesday.
The fund’s value could hit almost 6 trillion Norwegian crowns ($973 billion) by the end of the year, according to a new government forecast cited by the paper. That compares with a year-end estimate of 5.48 trillion crowns made in May. The newspaper gave no explanation for the discrepancy, but the fund invests heavily in foreign stock markets, many of which have been trading around multi-year highs………………………………………..Full Article: Source

How Norway has avoided the ‘curse of oil’

Posted on 26 August 2014 by VRS  |  Email |Print

For while other countries have struck oil and then binged on the revenues, by contrast Norway is continuing to invest its oil and gas money in a giant sovereign wealth fund. The fund, worth about $800bn (£483bn), owns 1% of the entire world’s stocks, and is big enough to make every citizen a millionaire in the country’s currency, the kroner. In effect, it is a giant savings account.
And most Norwegians are seemingly very content with this - according to a 2012 study by New York’s Columbia University Norway is one of the world’s happiest countries. “We had to invest a lot of money before we could spend anything,” says Prof Alexander Cappelen, from the Norway School of Economics, explaining why the country has apparently avoided the pitfalls of vast wealth………………………………………..Full Article: Source

MAS Urged With Khazanah For Smooth Takeover

Posted on 25 August 2014 by VRS  |  Email |Print

A Member of Parliament (MP) today appeals to Malaysia Airlines’ (MAS) workers especially its employees unions to give their full cooperation to Khazanah Nasional Bhd to ensure the takeover of MAS by Khazanah can proceed smoothly. Anuar Manap, MP of Sekijang, said it was critical for all interested parties in an effort to revive MAS to be in consensus, united and think of one objective – what is the best method to save MAS which is a symbol of national pride.
“The full support is not only demanded of the rakyat, but definitely from those in MAS itself. Through the restructuring process by Khazanah, I am confident MAS will get out of the financial turmoil it is facing now via a rejuvenation process that is truly effective,” he told Bernama………………………………………..Full Article: Source

World’s biggest wealth fund takes focus off emerging markets

Posted on 22 August 2014 by VRS  |  Email |Print

Norway’s €663bn sovereign wealth fund, the world’s largest, is slowing its expansion into emerging markets as it scales back a two-year mission to tap into the fastest growing markets. “We are gradually picking up some new markets but at a less rapid pace than we did at the beginning of the year,” Yngve Slyngstad, the fund’s chief executive officer, said in Oslo.
The fund has been accelerating its investment into emerging markets since 2012, when it won permission to realign large parts of its portfolio away from developing markets to help boost returns. At the time, the government approved a plan to reduce holdings in Europe to 41pc from 54pc of the total portfolio………………………………………..Full Article: Source

Russia Tensions May Hurt Norway Oil Fund Earnings

Posted on 21 August 2014 by VRS  |  Email |Print

The effect on European equities of tensions between Russia and the West could pose a challenge to Norway’s $890 billion sovereign-wealth fund, its chief executive said Wednesday. Yngve Slyngstad also told The Wall Street Journal that the fund has retained its holdings in Russian banks and oil companies despite the tensions, and U.S. and European sanctions against Russia.
“The biggest challenge regarding Russia is of course how it leads to a pricing of other assets, first and foremost our European stockholdings, and we have a huge share of our equity holdings in Europe,” he said………………………………………..Full Article: Source

JP Morgan targets hedge funds and SWFs in new sales push

Posted on 21 August 2014 by VRS  |  Email |Print

JP Morgan has set up a dedicated equities salesforce in London to serve its hedge fund clients and sovereign wealth funds, as part of the bank’s push to become a top three cash equities house globally.
Simon Taylor, who re-joined the bank in 2012 after a stint as head of equity sales trading at Royal Bank of Scotland, has been tasked with leading the new 10-strong cash equity hedge fund sales team. He will report to Michael Wilson, head of equity sales in Europe, the Middle East and Africa………………………………………..Full Article: Source

Invest Corp of Dubai, Korea’s Kexim sign deal

Posted on 20 August 2014 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD), the sovereign wealth fund of the Emirate of Dubai, and the Export-Import Bank of Korea (Kexim) have signed a Memorandum of Understanding (MoU) to form an alliance to explore international investment and export finance opportunities in Asia, the Middle East and Africa.
Kexim is the official trade finance agency of the Republic of Korea with a remit to provide export finance or support international investments in which Korean parties participate………………………………………..Full Article: Source

Dubai and South Korea sign joint investments deal

Posted on 19 August 2014 by VRS  |  Email |Print

Dubai and South Korea are teaming up to fund joint investments as the emirate cements its role as the business launch pad for the Middle East and Africa.
Investment Corporation of Dubai, the emirate’s state holding company, on Monday signed a memorandum of understanding (MoU) for an alliance with the Export-Import Bank of Korea, the official trade finance agency of South Korea………………………………………..Full Article: Source

Mubadala Trafigura’s Brazil iron ore terminal will start this year

Posted on 19 August 2014 by VRS  |  Email |Print

Trading firm Trafigura and Abu Dhabi sovereign wealth fund Mubadala said that their Brazilian port for exporting iron ore will start this year, in response to a steelmaker with a contract to use the port that said the opening could be pushed back to 2015. Mr Eugenio Mamede chief operating officer for the port, said that Porto Sudeste is on track to start operation in the beginning of the last quarter of 2014.
Trafigura owns a controlling stake in the port with Abu Dhabi government investment fund Mubadala Development Company. The export terminal located in Rio de Janeiro state will be able to handle 50 million tonnes of iron ore per year, and could expand to 100 million tonnes………………………………………..Full Article: Source

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