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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

Bengal Finmin meets GIC top brass to attract investment

Posted on 19 August 2014 by VRS  |  Email |Print

West Bengal Finance Minister Amit Mitra today met the top brass of Singapore-based global investment firm GIC to attract investments. A West Bengal government delegation headed by Chief Minister Mamata Banerjee is on a 5-day tour to Singapore to attract investment for the state. GIC is one of the world’s largest global investors.
“We met the top brass of GIC and the meeting is fruitful,” Mitra told a TV channel over phone from Singapore. He said the GIC team consisted of 11 members, including managing director, analysts, PE fund managers, economists among others while from the state government several officials including the Chief Secretary was present………………………………………..Full Article: Source

Hopeful of Singapore’s GIC Group investing in Bengal: Mitra

Posted on 19 August 2014 by VRS  |  Email |Print

After holding a “fruitful” meeting with Singapore’s leading investment fund - the GIC Group, West Bengal Finance Minister Amit Mitra on Monday exuded confidence of securing big ticket investment for the state. Led by Chief Minister Mamata Banerjee, a delegation of ministers, bureaucrats and entrepreneurs are camping in the city state scouting for investment.
“Quite aware of Bengal and looking at the list of those who are investing in our state, they ended the meeting with a positive intent. The biggest thing is they have asked us to send them projects and if they found them bankable, they will invest,” Mitra said after holding a meeting with GIC representatives………………………………………..Full Article: Source

Norway SWF Urged to Upgrade Oversight Before Diversifying

Posted on 19 August 2014 by VRS  |  Email |Print

The Labor Party in Norway has called for the $880 billion Government Pension Fund—Global to up its governance game before moving into private equity and infrastructure. Norway’s biggest political party has challenged the country’s $880 billion sovereign wealth fund to improve its governance before hiking exposure to riskier assets.
The Labor Party’s concerns centre on the fund’s purchase of a stake in Formula One prior to its planned IPO, initially planned for 2012. However, the listing was subsequently cancelled, leaving the Norway Government Pension Fund—Global with a private equity holding that its investment rules do not permit it to own………………………………………..Full Article: Source

Singapore’s investment funds blaze ecommerce trail

Posted on 18 August 2014 by VRS  |  Email |Print

Singapore’s two investment funds, GIC and Temasek, have emerged as the biggest state-backed investors in technology, telecoms and ecommerce in the past 12 months, ploughing a combined $3bn into the sectors. That dwarfs investment by their global peers, which have committed about $200m, says the Sovereign Wealth Center, which tracks sovereign wealth fund activity globally.
Moves include GIC’s investment last month in Flipkart, India’s largest eretailer, and Temasek’s purchase in May of a stake in China’s JD.com, an Amazon-like ecommerce site that competes head-to-head with Alibaba………………………………………..Full Article: Source

Temasek diversifies China bets

Posted on 18 August 2014 by VRS  |  Email |Print

Temasek Holdings has bought into two United States-listed Chinese technology firms, signalling its intent to continue its diversification away from bank holdings. Temasek, directly or through its units, bought 602,139 American Depositary Receipts (ADR) of China’s second-largest e-commerce site JD.com with a market value of US$17.2 million (S$21.4 million), showed a filing with the US Securities and Exchange Commission on Thursday.
It also purchased a net 603,764 ADRs in security software maker Cheetah Mobile, valued at US$12.8 million. Both companies were listed in May. The transactions help Singapore’s investment firm extend its reach in the world’s second-largest economy and ease its reliance on the nations’ banks. While two of Temasek’s six-biggest listed global holdings by market value are still Chinese lenders, it also acquired stakes in consumer-related firms this year and last………………………………………..Full Article: Source

Singapore’s GIC ramps up Brazil assets

Posted on 18 August 2014 by VRS  |  Email |Print

The Government of Singapore Investment Corporation (GIC) has acquired an 18.5% stake in Brazilian education company Abril Educacao for an undisclosed price, in its latest move to increase exposure to Latin American assets. Based on the closing share price of Abril, a leading player in the Brazilian primary and secondary education market, on August 14, the stake was worth about US$265 million.
Abril employs about 7,000 staff and operates schools in Sao Paulo and Rio de Janeiro, as well as publishing textbooks and providing learning systems. It focusses on the so-called K-12 segment, which covers primary and secondary education………………………………………..Full Article: Source

SOFAZ to invest in China’s market

Posted on 18 August 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ intends to invest in the Chinese market with the government debt securities, SOFAZ said. China as the second largest economy in the world remains an attractive market for the growing number of foreign investors. Prospects of the Chinese Yuan as an additional investment currency attract considerable interest of various categories of investors, including sovereign wealth funds.
“SOFAZ has recently applied to the People’s Bank of China to use broad investment opportunities in the Chinese market,” SOFAZ said………………………………………..Full Article: Source

Khazanah’s offer a good exit oppoturnity: Analyst

Posted on 15 August 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd’s bid to buy up shares in troubled national carrier Malaysian Airline System Bhd (MAS) it does not already own for 27 sen a piece represents a good exit opportunity for minority shareholders, analysts said.
Major shareholder Khazanah last Friday, announced that it plans to take MAS private in a bid to restructure the company away from the public eye. It had said that the de-listing is the first part of a detailed restructuring plan likely to be finalised by the end of the month………………………………………..Full Article: Source

Minorities group backs Khazanah plan for MAS

Posted on 14 August 2014 by VRS  |  Email |Print

The Minority Shareholder Watchdog Group (MSWG) has supported Malaysia Airlines’ (MAS) proposed privatisation by Khazanah Nasional Bhd, describing it as a reasonable option for minority shareholders to take their investment out of the ailing national carrier.
MSWG also hopes that those responsible for MAS’ poor financial performance will be made accountable, said its chief executive officer Rita Benoy Bushon. She said Khazanah’s offer price of 27 sen a share to acquire all MAS’ shares is a 12.5 per cent premium over its pre-suspension price of 24 sen last Thursday………………………………………..Full Article: Source

‘Khazanah Able To Rescue MAS’

Posted on 14 August 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd should be given the benefit of engineering the rescue of Malaysia Airlines (MAS), says MIDF Research head Zulkifli Hamzah. He said the delisting of MAS will accord Khazanah greater manoeuvrability to restructure the company and ensure its long-term viability.
Zulkifli also does not expect MAS to be declared bankrupt because of Khazanah’s strong backing. “This has not been attempted before. Thus, the government should be given the benefit of engineering the rescue of MAS, away from the prying eyes of the public, which can be distracting at times………………………………………..Full Article: Source

Dr M: Full Khazanah ownership will not revive MAS

Posted on 13 August 2014 by VRS  |  Email |Print

Former Malaysian prime minister Mahathir Mohamad yesterday criticised the takeover of Malaysia Airlines by Khazanah Nasional, the country’s sovereign wealth fund, saying full ownership of the beleaguered carrier was not likely to make a difference.
Last Friday, the state investment agency made an offer to take the airline private by paying 27 sen apiece or some RM1.4 billion (S$547 million) to buy the remaining shares it does not own. In the coming fortnight, it is expected to detail its proposed complete revamp of the airline………………………………………..Full Article: Source

Former PM criticises de-listing of Malaysia Airlines by sovereign wealth fund

Posted on 13 August 2014 by VRS  |  Email |Print

Influential former prime minister Mahathir Mohamad on Tuesday criticised the takeover of crisis-hit Malaysia Airlines by the country’s sovereign wealth fund as a recipe for more losses by the carrier. Sovereign fund Khazanah Nasional, which has controlled the airline for years via a 70 percent ownership stake, said last Friday it plans to buy all remaining shares, de-list the stock, and take the carrier private before undertaking a “complete overhaul”.
The fund acted after the double tragedies of flights MH370 and MH17 pushed Malaysia Airlines (MAS) — which had already been losing money for years — to the financial brink. “Khazanah has been in full control of Malaysia Airlines all this time. And all this time Malaysia Airlines has been bleeding profusely,” Mahathir, prime minister from 1981-2003, wrote on his blog………………………………………..Full Article: Source

NP’s Nordic model dream just a fantasy

Posted on 13 August 2014 by VRS  |  Email |Print

It is true that Norway is a bit more like the socialist paradise that the Scottish Nationalists imagine. But only a bit. Norway has donned its own version of a golden straitjacket by ensuring that it puts its oil wealth in a gigantic sovereign wealth fund (valued at about £508 billion) rather than spending it on infrastructure or welfare.
Norway is opening its welfare-state to welfare entrepreneurs: the new hospital in Oslo is being built with private money. It is also doing everything it can to promote private-sector entrepreneurs: private companies are selling Norway’s oil extraction skills across the world………………………………………..Full Article: Source

Angola SWF joins London-based international forum

Posted on 12 August 2014 by VRS  |  Email |Print

Angola’s sovereign wealth fund, the Fundo Soberano de Angola (FSDEA), has become a member of the International Forum of Sovereign Wealth Funds (IFSWF), the international body for sovereign investors, which relocated from Washington, DC, to London last month.
The FSDEA has endorsed the IFSWF’s voluntary code of conduct, the Santiago Principles, the forum said. FSDEA was established in 2012 with a seed capital of $5 billion, and a mandate to invest Angolan surplus revenues from hydrocarbons “to promote growth, prosperity and social and economic development across Angola”……………………………………Full Article: Source

SWFs sidestep fund managers with more direct deals

Posted on 12 August 2014 by VRS  |  Email |Print

The world’s sovereign wealth funds (SWFs) are allocating the highest volume of assets via direct deals and co-investing since the global financial crisis, research showed, as the mega-rich institutional investors increasingly bypassed fund managers.
A report from the SWF Institute showed that direct deals and transactions by SWFs topped US$50.02 billion in value during the first half of 2014, or 23.1% higher than the equivalent period a year earlier. This was the highest first half on record since the first six months of 2008, which yielded $51.05 billion worth of direct investment, much of which was attributable to banking bailouts, the SWF Institute said……………………………………Full Article: Source

Mega Financial attracts interest of sovereign funds

Posted on 12 August 2014 by VRS  |  Email |Print

Several foreign sovereign funds have voiced an interest in investing in Mega Financial Holding Co, attracted by the state-run conglomerate’s stable profitability, company chairman Mckinney Tsai said.
Sovereign funds from Canada, Singapore, Norway, Malaysia and Abu Dhabi have all expressed an interest, with some having paid three visits, Tsai said. That would give the bank-focused group the necessary capital to acquire peers at home and abroad, in line with its aim to grow into a regional player, Tsai said……………………………………Full Article: Source

Sovereign wealth fund could help Macao overcome gambling dependency, IMF says

Posted on 11 August 2014 by VRS  |  Email |Print

Central bank could manage new sovereign wealth fund as Macao authorities seek higher return on booming reserves; IMF encourages idea in staff report. The Macao authorities are “willing to contemplate” establishing a sovereign wealth fund (SWF) according to the International Monetary Fund (IMF), as they chase a higher return on their reserves.
Macao overtook Las Vegas as the largest gaming centre in the world in 2005, and started rapidly accumulating foreign exchange reserves as a result. A decade-long gaming boom pushed reserves to $30 billion in January 2014 – nearly 60% of GDP - and, according to the IMF, the authorities are now considering handing some of the pot to a new SWF…………………………………Full Article: Source

Norway’s sovereign wealth fund to reveal voting intentions to improve shareholder transparency

Posted on 11 August 2014 by VRS  |  Email |Print

The sovereign wealth fund of Norway will begin to reveal how it intends to vote ahead of companies’ annual general meetings (AGM) from next year, in a move to improve transparency. The $860 billion (£515bn) pension fund is one of the world’s largest investors and its decision could represent a significant shift in shareholder activities.
The move by the fund, which is managed by the Norges Bank Investment Management (NBIM), is chiefly an effort to improve transparency. The fund has said it also aims to expand its involvement in some of the companies it invests in, including engaging on environmental, social and governance (ESG) issues…………………………………Full Article: Source

Malaysia Airlines to be delisted after €320m offer

Posted on 11 August 2014 by VRS  |  Email |Print

Malaysia Airlines will be delisted after sovereign wealth fund Khazanah Nasional offered to buy out minority shareholders in a restructuring plan for the national carrier that suffered two disasters this year.
Khazanah will pay 27 sen a share for a total of 1.38bn ringgit (€320m) to buy the remaining 30.6pc it doesn’t own. The airline will need “substantial funding requirements” for the next few years to sustain operations, the company said. Malaysian Prime Minister Najib Razak said the revamp will involve “painful steps and sacrifices”. The carrier is struggling to stem losses and repair its image after the downing of Flight 17 in Ukraine last month compounded woes from the disappearance of a jet in March…………………………………Full Article: Source

Sovereign-Wealth Funds Pump Near Record Amount of Cash in Deals

Posted on 08 August 2014 by VRS  |  Email |Print

Sovereign-wealth funds are putting more money to work through direct investing than at any time since 2008, as investors look to boost returns and bypass fees charged by fund managers.
According to a report from the Sovereign Wealth Fund Institute -an organization which tracks the activity of state funds-the value of global direct deals by sovereign-wealth funds hit $50.02 billion in the first half of 2014. This was a 23.1% increase on comparable transactions in the first half of last year, and up from roughly $35 billion put to work in the first half of 2012………………………………………..Full Article: Source

SWFs go direct to pass $50bn

Posted on 08 August 2014 by VRS  |  Email |Print

Sovereign wealth funds are putting more money to work through direct investing than at any time since 2008, as giant state-investment funds look to bypass fees charged by fund managers. Figures from the Sovereign Wealth Fund Institute show that levels of direct investment hit over $50 billion during the first half of the year, up 23% on a year ago and just shy of the previous six-month record set in 2008.
That year a number of state funds from Asia and the Middle East took large stakes in banks, including the UK’s Barclays, which were rushing to raise funds as the financial crisis took hold. Since then, sovereign wealth funds and other large, sophisticated investors have been looking to bypass fees charged by the fund managers and private equity funds with whom they have traditionally allocated money………………………………………..Full Article: Source

SWF buys hit near-decade level

Posted on 06 August 2014 by VRS  |  Email |Print

Acquisitions by global sovereign wealth funds (SWF) total US$15.2 billion in 2014 YTD, down 4 percent from 2013 year-to-date (US$15.7 billion) and the lowest YTD level since 2005 (US$8.5 billion), according to figures from data specialist Dealogic. Singapore is the top acquiring nation for SWF acquisitions with US$8.8 billion in 2014 YTD, up 69 percent from 2013 YTD and the highest YTD level since 2009 (US$10.8 billion). China and United Arab Emirates follow with US$2.6 billion and US$1.5 billion, respectively.
Temasek Holdings’ US$5.7 billion acquisition of a 25 percent stake of AS Watson Holdings announced in March is the largest global SWF M&A deal in 2014 YTD and the eighth-biggest global SWF M&A transaction on record………………………………………..Full Article: Source

Myanmar: Caution urged over a sovereign wealth fund

Posted on 05 August 2014 by VRS  |  Email |Print

Sweeping reforms have increased the opportunity for foreign investors to develop Myanmar’s 11.8 trillion cubic feet of natural gas and 50 million barrels of crude oil, potentially worth more than US$60 billion over the next 30 years. This anticipated influx of investment in the petroleum sector raises concerns that Myanmar should implement resource management strategies to mitigate problems generally associated with the “resource curse”.
The resource curse is a paradox that refers to countries with an abundance of natural resources counterintuitively experiencing negative economic growth for a variety of reasons, including government mismanagement and declining economic competitiveness………………………………………..Full Article: Source

Temasek bets on India, says will continue to be active here

Posted on 05 August 2014 by VRS  |  Email |Print

Singapore government-owned investment firm Temasek Holdings is bullish on India story. The firm is learnt to have been scouting for unlisted companies, especially in consumer goods and healthcare sectors.
According to Temasek, the last year was one of the best years after the financial crisis in terms of investments that it made. Media reports suggest that with new government at the Centre, focused to revive growth, Temasek too, like other foreign funds, could pump in more money into the country this fiscal than in the past year……………………………………….Full Article: Source

Singapore’s GIC issues market warning

Posted on 05 August 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund has for a second consecutive year undershot two performance indicators and forecast a decade of weak financial market returns. The Government Investment Corporation’s (GIC) annualised nominal return in US dollars was 12.4% over five years, 7% over 10 years and 6.5% over 20 years in the financial year to March 31.
Although the 10-year return was 30 basis points higher versus a reference portfolio used to indicate performance, the five-year return undershot by 150 basis points and the 20-year return was 70 basis points lower………………………………………..Full Article: Source

CalPERS and UBS Global Asset Management Announce USD 500 Million Infrastructure Partnership

Posted on 05 August 2014 by VRS  |  Email |Print

California Public Employees’ Retirement System (CalPERS) and UBS Global Asset Management (Americas) Inc. (UBS” have formed a strategic infrastructure partnership, Golden State Matterhorn, LLC (GSM LLC), to pursue infrastructure investment opportunities across core, OECD markets. CalPERS and UBS have made capital commitments of USD 485 million and USD 15 million, respectively, to the partnership.
UBS will be the managing member and it will utilize the services of Infrastructure Asset Management (IAM), an investment area within UBS Global Asset Management’s Infrastructure and Private Equity business unit. IAM originates and manages direct investments in infrastructure assets globally on behalf of institutional investors from around the world. The team includes senior executives who have been active in the infrastructure and related sectors since the early 1990s. (Press Release)

Singapore to increase investment in China

Posted on 04 August 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund has signalled its confidence in China’s structural reforms by increasing its allocation to the country, as part of a push to boost its emerging markets exposure.
GIC, which has more than $100bn under management, said 14 per cent of its assets were invested in north Asia, which includes China, Hong Kong, Taiwan and South Korea. While this does not represent a sharp swing from the 13 per cent weighting last year, GIC emphasised its commitment to long-term investments………………………………………..Full Article: Source

Azerbaijan’s oil funds turning into Chinese Yuan

Posted on 01 August 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ which is in charge of accumulating and managing the country’s oil and gas revenues have taken some measures to include Yuan in its currency portfolio. SOFAZ Deputy Executive Director Israfil Mammadov said the fund has appealed to the People’s Bank of China to obtain quotes on indirect investment in the Chinese yuan onshore market with a view to diversify its investment portfolio.
The fund, established in 1999 aimed at transforming rising hydrocarbon reserves into financial assets, started investing in new asset classes such as equities, real estate, and gold, as well as diversifying its currency portfolio toward the Turkish lira, Russian ruble, and Australian dollar, from 2012………………………………………..Full Article: Source

Azerbaijan determines broker on placement of Southern Gas Corridor second issue of bonds

Posted on 31 July 2014 by VRS  |  Email |Print

The new issue of Canub Qaz Dehlizi’s bonds (”Southern Gas Corridor”) to the amount of $1.2 billion was put for mass sale at the Baku Stock Exchange (BSE). “InvestAZ” company was chosen the broker of the acquirer, InvestAZ said on July 30. The total volume of the issue is $1,246,355. Its prospectus has been recently registered by the Azerbaijani State Securities Committee.
The State Oil Fund of Azerbaijan (SOFAZ) has been instructed to provide equity financing for the CJSC, which is under direct state ownership. The funds remitted to the CJSC for financing the equity will provide a long-term return on investment………………………………………..Full Article: Source

Temasek bets big on Indian e-commerce

Posted on 31 July 2014 by VRS  |  Email |Print

Unlike several foreign equity investors who have been struggling to exit from India investments, Temasek Holdings Pvt. Ltd, the investment arm of the Singapore government, is focusing on new investments in the country’s e-commerce sector. In India, Temasek has investments in traditional firms such as Bharti Airtel Ltd, GMR Energy Ltd, Tata Teleservices Ltd and National Stock Exchange Ltd.
After investing an undisclosed amount in Snapdeal.com in May, the firm is ready to stay invested in the e-commerce sector in India for the long term even as several firms jostle for the top slot. Snapdeal raised about $100 million from Premji Invest, Temasek and BlackRock Inc………………………………………..Full Article: Source

Temasek expects more deals in India

Posted on 31 July 2014 by VRS  |  Email |Print

Singapore government-owned sovereign fund Temasek remains optimistic on India and it expects more deals in current financial year. The firm believes the change in the Indian government will drive more investments to the country as the hurdles in decision making are expected to be removed.
Temasek, one of the more active sovereign wealth funds in India, did not make many fresh investments in FY14; it put in more money in its existing portfolio firm Tata Sky and invested in Star Agri-warehousing and Collateral Management, an agri-solutions company. It had made a co-investment in e-commerce marketplace Snapdeal. Temasek is also in discussions to acquire ChrysCapital’s stake in Intas Pharmaceuticals………………………………………..Full Article: Source

Temasek Holdings scouts for unlisted companies, may focus on consumer goods, healthcare sectors

Posted on 31 July 2014 by VRS  |  Email |Print

Singapore government-owned investment firm Temasek Holdings is bullish on the India story and is scouting for unlisted companies, particularly in consumer goods and healthcare sectors, senior company officials said.
With the new government at the Centre seeking to revive growth, Temasek, like other foreign funds, could pump more money into the country this fiscal than in the past year………………………………………..Full Article: Source

Abu Dhabi SWF says ‘ready’ to buy more hotel assets

Posted on 28 July 2014 by VRS  |  Email |Print

The Abu Dhabi Investment Authority is ready to purchase more real estate hotel assets as the right opportunities appear, according to its head of hospitality.ADIA, one of the world’s largest sovereign wealth funds, continues to see the United States as a viable investment option, but is also looking elsewhere around the globe, said Mike Goodson.
Goodson was quoted as saying: “We’re always very likely to be a net investor as long as our overall fund keeps growing. Given the world situation, that should happen………………………………………..Full Article: Source

Malaysia Airlines considers rebranding

Posted on 28 July 2014 by VRS  |  Email |Print

A government-led review of Malaysia Airlines – the carrier reeling from the disappearance of one aircraft and the alleged shooting down of another – is examining the case for renaming the company.
Two people familiar with the situation said the Malaysian government – which through the country’s sovereign wealth fund has a 69 per cent stake in Malaysia Airlines – was looking at a rebranding alongside other potentially far-reaching options to safeguard the carrier’s future. The review is also expected to consider the case for Khazanah Nasional, the sovereign wealth fund, reducing its stake in Malaysia Airlines, thereby allowing more private investors to buy shares………………………………………..Full Article: Source

New Zealand SWF to invest in catastrophe reinsurance

Posted on 25 July 2014 by VRS  |  Email |Print

The New Zealand Super Fund (NZSF) is looking to invest in catastrophe risk insurance due to the sector’s cyclical nature and strong liquidity, according to Pablo Matias Sosa, senior investment strategist at the $22 billion sovereign wealth fund (SWF).
Catastrophe reinsurance typically sees firms underwrite losses on large scale, tail-risk events, such as Hurricane Katrina, and Sosa said that this was an alternative investment the fund was considering diversifying into………………………………………..Full Article: Source

Khazanah denies MAS-AAX merger

Posted on 25 July 2014 by VRS  |  Email |Print

Speculation of Malaysian Airline System Bhd (MAS) being merged with a budget long haul carrier has been dismissed by Khazanah Nasional Bhd, which has a 69.4% stake in the ailing national carrier.
“Khazanah Nasional wishes to state that media reports of a possible merger between MAS and AirAsia X Bhd (AAX), are unfounded and speculative,” it said in a statement………………………………………..Full Article: Source

Qatari Investment Authority weighs up Sainsbury swoop seven years after walking away from GBP10.6bn bid

Posted on 25 July 2014 by VRS  |  Email |Print

It’s almost seven years since the Qatari Investment Authority walked away from its £10.6bn or £6 a share indicative bid for J Sainsbury, blaming its retreat on credit markets which made raising funding more expensive. It retained a 26 per cent stake and has remained a loyal shareholder. Until now.
Rumours suggest the Qataris were underwhelmed with Mike Coupe’s appointment as chief executive to succeed Justin King, who was credited with turning the group around during an impressive 10-year tenure. But with the shares still languishing just above £3 a pop and the grocer continuing to suffer increasing pressure from foreign discounters Aldi and Lidl, the Qataris are believed to be ready to go on the offensive again………………………………………..Full Article: Source

Norway’s State-Run Investment Fund May Sell $8B Of Russian Assets

Posted on 25 July 2014 by VRS  |  Email |Print

Norway, whose government-managed investment fund is worth more than $900 billion, is considering selling its Russian-based investments, totaling as much as $8 billion, as the European Union mulls new sanctions against Russia following the downing of Malaysia Airlines Flight MH17 last week.
Bloomberg News reported on Thursday that Norway, which is not an EU member country said it’s prepared to make the changes and quoted Runar Malkenes, a Finance Ministry spokesman, saying “If the oil fund’s investments become affected by economic sanctions against Russia that Norway supports,” the fund “will need to make the necessary adjustments to accommodate the new situation.”……………………………………….Full Article: Source

Western Threats Mean Little to Putin

Posted on 25 July 2014 by VRS  |  Email |Print

Russia has become deeply unpopular, even toxic. Europe and the U.S. are working non-stop on new economic sanctions, the world’s biggest sovereign wealth fund is thinking of cutting its $8 billion Russia investment, and in Holland some people are calling for the deportation of Russian President Vladimir Putin’s daughter.
Not even the intention of Norway’s $890 billion sovereign wealth fund to review its $8 billion investment in 65 Russian financial instruments, the biggest of which is a 4.6 percent stake in VTB, is a serious threat: The fund can’t sell all its holdings at once and will protect its investment unless forced to act otherwise by some extra-severe sanctions, the likes of which are not even under discussion………………………………………..Full Article: Source

World’s biggest wealth fund reviews US$8 billion Russian holdings

Posted on 24 July 2014 by VRS  |  Email |Print

Norway’s US$890 billion (RM2.82 trillion) sovereign wealth fund, the world’s biggest, is reassessing its holdings in Russia as the European Union considers expanding sanctions against the country. Since the July 17 downing of Malaysia Airlines flight MH17 by a missile that the US says was probably supplied by the Russian military, sentiment toward assets based in Russia has soured further.
The government of Norway, which isn’t an EU member, said it’s ready to adjust the fund’s holdings to reflect the changing geopolitical climate. The European Commission will present proposals for more “targeted measures” to national officials……………………………………….Full Article: Source

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

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