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Malaysia’s troubled state fund gets Middle East help

Posted on 15 June 2015 by VRS  |  Email |Print

Heavily indebted 1Malaysia Development Bhd (1MDB), a strategic development company wholly-owned by the government of Malaysia and cooperating, among others, with Middle East investors such as Aabar Investments and Qatar Investment Authority (QIA), said on June 8 that it has repaid a $975mn loan to an international consortium of banks, a move that “proves its commitment to reducing its debt.”
The fund, which has amassed debt since its inception in 2009 that is said to stand at $11.4bn, has used a fresh $1bn cash injection paid on June 4 by Aabar Investments, a unit of Abu Dhabi’s International Petroleum Investment Company (IPIC), to repay the loan to the six-bank syndicate led by Deutsche Bank………………………………………..Full Article: Source

GIC Singapore scouts for more opportunities in West Bengal

Posted on 15 June 2015 by VRS  |  Email |Print

GIC Singapore, the sovereign wealth fund of the island nation, is trying to scout for more opportunities in West Bengal. “After investing USD 32.5 million in Kolkata Riverside, a 262-acre township, the fund is looking for more opportunities here,” Bengal Finance Minister Amit Mitra told PTI.
The GIC-invested PE fund, sponsored by HDFC Property and domiciled in Singapore, had signed a USD 32.5 million (Rs 200 crore) agreement with Hiland Group during the Bengal Summit inJanuary this year for Kolkata Riverside development………………………………………..Full Article: Source

State-owned assets: The neglected wealth of nations

Posted on 12 June 2015 by VRS  |  Email |Print

Governments have trillions of dollars in assets, from companies to forests. These are typically poorly managed, and often not even recorded at all (Greece, for instance, still has no proper land registry). Dozens of countries have asset-management agencies, but these tend to be run by government departments, not external experts. Only 1.5% of public assets are in politically insulated NWF-style funds with wide latitude to value them at market rates, restructure them, and keep, sell or merge them as they see fit.
How big is difficult to say due to gaps in the data, but the authors believe the pool of public “commercial” assets (lumpy stakes in companies, property and the like) is $75 trillion, twice the world’s total pension savings and ten times as big as the holdings of sovereign-wealth funds (which typically hold financial assets such as stocks and bonds.)……………………………………….Full Article: Source

GLP in talks to buy S$6b of US industrial property

Posted on 12 June 2015 by VRS  |  Email |Print

Global Logistic Properties (GLP), partly owned by Singapore sovereign wealth fund GIC, is in talks to acquire more than 200 warehouses in the United States valued at about US$4.5 billion (S$6.06 billion) as part of its push to expand in the world’s largest economy, a person with knowledge of the discussions said.
The talks with the owner of the properties, Industrial Income Trust, are preliminary and might not lead to an agreement, said the source, who asked not to be identified because the sales process is private. The assets under discussion total almost 58 million sq ft, the source added………………………………………..Full Article: Source

Revealed: The true scale of Tony Blair’s global business empire

Posted on 12 June 2015 by VRS  |  Email |Print

Abu Dhabi’s funding for the Palestinian Authority came from a “separate organisation” to Mubadala, the sovereign wealth fund that Tony Blair advises. Firerush Ventures Limited administers the funding for Mr Blair and his team’s work advising companies and sovereign wealth funds.
Around July, TBA strikes a lucrative deal to advise Abu Dhabi’s sovereign wealth fund, Mubadala, which has a portfolio worth more than £44 billion. Mr Blair also begins advising Liberia’s president Ellen Johnson Sirleaf through his AGI charity………………………………………..Full Article: Source

Winter Olympic Bid Cities Enter Home Stretch

Posted on 12 June 2015 by VRS  |  Email |Print

Delegations from Almaty and Beijing are delivering key presentations to the IOC this week. Tuesday marked the second day of the so-called technical briefing for IOC members on the 2022 candidate cities. Around the Rings editor Ed Hula says that Almaty 2022 is facing obstacles where accommodations and finances are concerned.
He adds, “They raised this idea that there is a $75 billion sovereign wealth fund in Kazakhstan, funded by the oil/petroleum revenues of the country. Almaty 2022 hopes the $75 billion sovereign wealth fund will be a way to ensure that everything promised in the bid can get done including building hotels and other facilities needed for the Games……………………………………….Full Article: Source

Middle East sovereign investors well prepared to meet funding challenges

Posted on 11 June 2015 by VRS  |  Email |Print

Middle East sovereign investors are well prepared to manage funding challenges arising out of steep fall in oil prices and potential withdrawals resulting from domestic economic compulsions, according to Global Sovereign Asset Management Study by Invesco.
“Funding is an issue for certain oil-rich sovereigns globally. Our study shows that the Middle East sovereign investors are better prepared to meet the sharp fall in oil prices than in the past although they could face increased withdrawal risks if the oil prices were to remain below $40 (Dh146) per barrel for more than two years,” Nick Tolchard, Chair of Invesco’s Global Sovereign Group & Head of Invesco Middle East, said………………………………………..Full Article: Source

Qatar could turn off tap on mining funding after investment review

Posted on 10 June 2015 by VRS  |  Email |Print

An investment review at Qatar’s wealth fund could lead to a cut in money allocated to the mining sector, potentially hitting ventures such QKR Corp, according to five sources familiar with the matter. Such a move would be the latest in a string of rethinks by sovereign funds and investment firms that have been badly burnt by bets in the natural resources sector, largely due to the recent pullback in oil, gas and metal prices.
Late last year, Qatar named ruling family member Sheikh Abdullah bin Mohamed bin Saud al-Thani as the new head of the Qatar Investment Authority (QIA), one of the top investors globally. Under the new management, the QIA has started to review its strategy, and the mining sector — under pressure from weaker metals prices and shrinking margins — is now seen as less attractive, said the sources, who declined to be identified because they are not authorised to discuss the matter publicly……………………………………….Full Article: Source

Power Assets sells down stake in its Hong Kong electricity unit to Qatar sovereign wealth fund

Posted on 10 June 2015 by VRS  |  Email |Print

Power Assets Holdings, an international utilities firm controlled by tycoon Li Ka-shing, has sold a 16.5 per cent stake in HK Electric Investments (HKEI) to Qatar’s sovereign wealth fund for HK$7.68 billion. Power Assets will remain HKEI’s largest shareholder with a 33.37 per cent stake after the sale.
Together with a 3.37 per cent stake separately acquired earlier from Cheung Kong Infrastructure Holdings, Qatar Investment Authority will hold a 19.9 per cent stake in HKEI.“As we said at the time of HKEI’s initial public offering exercise, our intent has always been to maintain our stake in HKEI at between 30 per cent and 49.9 per cent,” said Power Assets chairman Canning Fok Kin-ning in a statement. “Placement of this 16.53 per cent stake is both consistent with that intent and allows us the opportunity to work closely with an important new strategic partner.”……………………………………….Full Article: Source

Almaty unveil $75 billion sovereign wealth fund in bid to ease financial concerns surrounding 2022 Olympic bid

Posted on 10 June 2015 by VRS  |  Email |Print

A pledge to utilise a $75 billion (£49 billion/€67 billion) sovereign wealth fund formed a strong part of Almaty 2022’s message to the International Olympic Committee here (IOC) at today’s IOC Candidate City Briefing, with Kazakh Prime Minister Karim Massimov playing a starring role.
The former Kazakh capital was the first city to present to the membership today, with Beijing, their only rival in a two-horse race, now making a similar presentation, consisting of 45 minutes of speeches by a group of eight speakers followed by 45 minutes of questions and answers. Almaty, whose bid is focused around a compact and traditionally-wintry venue concept, is perceived as being more dependent on political and economic circumstances to pull off its bid than its Chinese rival, with their lack of experience in organising previous Games seen as a potential stumbling block………………………………………..Full Article: Source

UK global leader for Sovereign Wealth Fund investment

Posted on 09 June 2015 by VRS  |  Email |Print

TheCityUK’s Sovereign Wealth Funds 2015 report, released today, reveals that SWFs have increased their presence in the UK, making it the global leader for direct SWF investments as well as the leading Western centre for the management of SWFs. While the UK and US each accounted for around 16% of the $800 billion invested by SWFs since 2007, in relation to the size of its economy, the UK attracted over five times more investment than the US.
According to the report, global assets under management of SWFs increased by 16% in 2014 to a record $7.1 trillion, with direct investments of SWFs amounting to $117 billion – the second highest annual amount invested on record………………………………………..Full Article: Source

Dar seeks transparent expenditure of gas resources earnings

Posted on 09 June 2015 by VRS  |  Email |Print

The government will put in place transparent procedures on how to make decisions on expenditure of earnings from natural gas resources, including investing in sovereign wealth fund, the Parliament was told. Deputy Finance Minister, Mr Adam Malima, said in Parliament yesterday that the government will put in place the said procedures in a legal framework to govern exploitation of resources which is currently being prepared.
Mr Malima was responding to a question from Mr Athuman Mfutakamba (Igalula - CCM), who asked whether it is appropriate to invest in Sovereign Wealth Fund when Tanzania begins commercial exploitation of natural gas and petrol. Tanzania’s profile has been transformed from that of a least developed country to one of the hottest for the global energy industry, due to the discovery of offshore gas potential of 53.5 trillion cubic feet………………………………………..Full Article: Source

ADIA manages more of its billions in-house

Posted on 08 June 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA), one of the world’s biggest sovereign wealth funds, managed more of its money in-house last year as it strengthened its capabilities and added staff in some areas, ADIA said on June 02. The proportion of its assets managed by external fund managers fell to 65 percent last year from 75 percent in 2013, the authority said in its annual review.
It said this was due to “our efforts over recent years to strengthen the organisation’s in-house investment and analytical expertise”. ADIA has 1,650 employees from 60 nationalities, the review said. ADIA did not disclose its total assets under management but the US-based Sovereign Wealth Fund Institute, which tracks the industry, estimates them at $773 billion……………………………………….Full Article: Source

Abu Dhabi wealth fund approved to invest US$1.5bn in A-shares

Posted on 08 June 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA), one of the largest sovereign wealth funds in the world, has been approved to invest US$1.5 billion in China’s A-share market, reports Beijing Youth Daily. The fund has collected almost US$4 billion overseas since last week. This is not the group’s first time’s investing in China’s stock market.
The fund is a shareholder of many Chinese companies like LiuGong Machinery, Tongling Nonferrous Metals, Jiuzhou Group, Sunlord Electronics, China Shipping Development, Zhongjin Gold, Zhejiang Huahai Pharmaceutical, Jin Jiang Intel Group, and China Communications Construction Company Group………………………………………..Full Article: Source

EBRD invests in Kazakhstan’s first large-scale solar plant

Posted on 08 June 2015 by VRS  |  Email |Print

A landmark renewable energy project in Kazakhstan will be co-financed by the EBRD and the Clean Technology Fund (CTF) with loans of well over €80 million. EBRD President Suma Chakrabarti, said the EBRD has consistently supported sustainable energy projects in Kazakhstan, but Burnoye Solar is a particular landmark for the country’s Green Economy agenda. “It is a first in many crucial categories.
It will be the first commercial-scale solar park in Kazakhstan. It will be the first privately owned renewable energy generator in Kazakhstan. And it is the first use of a new project finance structure that will open the door to more private investment in renewables in the future.” The EBRD will lend 14.06 billion tenge (€70 million equivalent), and the CTF will lend €13.8 million to the project which is pioneering the use of a non-recourse project finance structure………………………………………..Full Article: Source

Yuan Market Access Lags Sovereign Investor Demand, Invesco Says

Posted on 08 June 2015 by VRS  |  Email |Print

Sovereign investors’ access to China’s capital market is lagging behind demand, according to a survey. Some 43 percent of central banks and 35 percent of state investors surveyed in the Invesco Global Sovereign Asset Management Study 2015 said they are looking to invest in yuan assets. So far, only 30 percent of the monetary authorities and 10 percent of the sovereign funds have quotas to invest in the onshore market, according to the survey results released Monday.
Invesco interviewed 59 investors that oversee $7.09 trillion of assets, including central banks, sovereign wealth funds and pension funds. Of the entities surveyed, 15 had more than $100 billion of assets under management, according to the study, which didn’t name the investors………………………………………..Full Article: Source

M’sia’s ethical sukuk adds to market width but depth elusive

Posted on 05 June 2015 by VRS  |  Email |Print

Malaysia’s efforts to create a market for ethical Islamic bonds (sukuk) are the latest in a series of government-led initiatives to develop Islamic finance, but further expansion will require a greater buy-in from a sometimes reluctant private sector.
Last month, sovereign wealth fund Khazanah Nasional Bhd (Khazanah) launched the country’s first sustainable and responsible investment (SRI) sukuk, nearly two years after the format was first announced by the government. “Until now, nobody has done it. If we don’t take this challenge, then I don’t think anyone would be doing it,” Khazanah’s chief financial officer Mohd Izani Ghani said in a phone interview. “We have done many firsts before and it is always challenging,” said Izani. ……………………………………….Full Article: Source

Dr M: Abu Dhabi-based firm ‘effectively’ new 1MDB asset owner if Putrajaya accepts offer

Posted on 05 June 2015 by VRS  |  Email |Print

Former prime minister Tun Dr Mahathir Mohamad warned today the government was “effectively” selling off the country’s assets gained through 1Malaysia Development Berhad (1MDB) if it accepted an opaque US$1 billion (RM3.7 billion) offer by a foreign investment firm in a bid to settle the sovereign company’s debilitating debts.
In his latest blog post, Dr Mahathir said 1MDB would gain nothing, reasoning that the money offered by Abu Dhabi-based International Petroleum Investment Holding Co (IPIC) would be used to pay up the outstanding payments owed by the state investment fund to shrink its growing debt pile………………………………………..Full Article: Source

IDB ties up with Gabon Sovereign Wealth Fund

Posted on 05 June 2015 by VRS  |  Email |Print

The Islamic Development Bank (IDB) and the Fonds Gabonais d’Investissements Stratégiques (FGIS) signed a Memorandum of Understanding on the occasion of the first IDB Member Countries Sovereign Wealth Funds Investment Forum held in Jeddah recently. Chaired by IDB President Dr. Ahmad Mohamed Ali, the forum brought together various government investment funds to explore a range of direct investment opportunities in the IDB member countries. The Forum highlighted private investment deals supported and financed by IDB, Sovereign Wealth Funds and Pension Funds from IDB Member countries.
The Forum saw the participation of government entities such as the Public Pension Agency of Saudi Arabia, the Public Investment Fund of Saudi Arabia, Bahrain Mumtalakat Holding Company, The Oman Investment Fund, the State Oil Fund of the Republic of Azerbaijan and the Fonds Gabonais d’Investissements Stratégiques………………………………………..Full Article: Source

IDB ties up with Gabon Sovereign Wealth Fund

Posted on 04 June 2015 by VRS  |  Email |Print

The Islamic Development Bank (IDB) and the Fonds Gabonais d’Investissements Stratégiques (FGIS) signed a Memorandum of Understanding on the occasion of the first IDB Member Countries Sovereign Wealth Funds Investment Forum held in Jeddah recently.
Chaired by IDB President Dr. Ahmad Mohamed Ali, the forum brought together various government investment funds to explore a range of direct investment opportunities in the IDB member countries. The Forum highlighted private investment deals supported and financed by IDB, Sovereign Wealth Funds and Pension Funds from IDB Member countries………………………………………..Full Article: Source

Abu Dhabi Approved to Invest $1.5Bln in Chinese Stock Market

Posted on 04 June 2015 by VRS  |  Email |Print

New reports are suggesting the Abu Dhabi Investment Authority has been granted approval to invest 1.5 billion US dollars in the Chinese A-share market. The report has yet to be confirmed by Chinese authorities.
If true, it will be the largest investment approved by China’s foreign exchange regulator under the Qualified Foreign Institutional Investor, or QFII, program. The Abu Dhabi Investment Authority is the sovereign wealth fund of Abu Dhabi……………………………………….Full Article: Source

Alberta should copy Alberta on oil royalties: former Norwegian finance minister

Posted on 04 June 2015 by VRS  |  Email |Print

A former Norwegian finance minister says Alberta’s new government should take inspiration on handling resource revenues from the same place her country found it — Alberta. “We were inspired by Alberta when we established our sovereign wealth fund,” said Kristin Halvorsen, who was Norway’s finance minister from 2005 to 2009 and led that country’s Socialist Left party in a coalition government.
“But there have been many differences in how we established the fund.” Alberta’s new NDP government has promised to review how the province’s oil royalties are raised and spent. That includes a look at the Heritage Savings Trust Fund, which was created by former premier Peter Lougheed in 1976 as a nest egg and repository for some of Alberta’s non-renewable resource revenues to prevent them from distorting annual budgets………………………………………..Full Article: Source

Abu Dhabi Wealth Fund Leans Less on Outside Fund Managers

Posted on 03 June 2015 by VRS  |  Email |Print

The chance for fund managers to help Abu Dhabi invest its oil fortune is getting slimmer by the year. Abu Dhabi Investment Authority, one of the world’s biggest sovereign wealth funds, said about 65 percent of its assets were managed by external fund managers last year, compared with 75 percent in 2013, according to its annual report. In 2011, outside investors managed about 80 percent of the fund’s assets.
Abu Dhabi, capital of the United Arab Emirates and home to about 6 percent of the world’s proven oil reserves, is seeking to diversify from crude exports with investments abroad. The sovereign wealth fund has posted gains of 7.4 percent annually over the past 20 years and is boosting in-house teams in areas such as real estate and private equity to increase returns………………………………………..Full Article: Source

Behind the Prologis-Norges Blockbuster

Posted on 03 June 2015 by VRS  |  Email |Print

Prologis U.S. Logistics Venture has teamed with Norges Bank Investment Management on the acquisition of KTR Capital Partners entire real estate assets and operating platform, consisting of three investment funds, for $5.9 billion.
“Consistent with the established pattern, a deep-pocketed foreign fund (in this case, Norway’s NBIM) has teamed with an industry leader with large-scale operations and management capacity to acquire a significant portfolio of U.S. real estate assets,” Andrew Maguire, a shareholder in the real estate group of McCausland Keen & Buckman said………………………………………..Full Article: Source

Japanese sovereign patent fund gains momentum with two big deals in the past week

Posted on 03 June 2015 by VRS  |  Email |Print

IP Bridge – Japan’s first state-funded patent aggregator, or sovereign patent fund (SPF) – announced two significant deals on Friday. As a result it will take ownership of several hundred patents and become a licensor for an MPEG-LA patent pool. IP Bridge will be assigned over 500 smartphone-related patents in the first of the transactions; a press release the assignor unnamed, but describes it as a “Japanese electronics company”.
The second deal consists of an unspecified number of patents transferred from Panasonic, which has been a consistent supplier of assets to – as well as an initial investor in – the aggregation fund operated by IP Bridge. It is noteworthy that this assignment will make IP Bridge a licensor for a video codec-related patent pool operated by MPEG-LA………………………………………..Full Article: Source

Angola’s sovereign wealth fund expands its horizons

Posted on 02 June 2015 by VRS  |  Email |Print

Alternative assets are the name of the game for Angola’s sovereign wealth fund, as it steps in where local banks fear to tread. Confidence is not a word easily associated with Angola of late. The oil price plummet has left a gaping hole in the government’s budget, the value of the kwanza is volatile, and the country still needs significant levels of investment to remedy deficiencies in healthcare, education, infrastructure and agriculture.
Yet while these problems play out, the horizons of the country’s sovereign wealth fund, the Fundo Soberano de Angola (FSDEA), are expanding. “We believe we are now in an exciting stage in our development, and we are in good shape to make slightly more complex investments,” says its chairman, José Filomeno dos Santos, who is the son of the current Angolan president. “It is true that we are a relatively new fund and that we have a long way to go to fully establish ourselves as a leader in the sovereign wealth fund area. But, we have a clear investment mandate and much scope for growth.”……………………………..Full Article: Source

Companies plan to boost SWF targeting

Posted on 02 June 2015 by VRS  |  Email |Print

Twenty-eight percent of companies globally say they plan to increase their focus on sovereign wealth funds (SWFs) this year, according to the latest research from IR Magazine. The number looking to boost SWF targeting is at least 11 percentage points higher than those looking to increase their focus on ESG/SRI portfolios (17 percent), private banking portfolios (17 percent), family offices (15 percent) or hedge funds (12 percent). Just 2 percent of IROs state an intention to decrease SWF shareholder targeting, compared with a high of 11 percent for hedge funds.
Asian IROs are more likely than counterparts elsewhere to increase their focus on SWFs: 39 percent say they plan to increase targeting of these funds, compared with 27 percent in Europe and 21 percent in North America. At the cap size level, 23 percent of IR professionals at both small and mid-cap companies say they plan to increase their focus on SWFs, climbing to 34 percent and 35 percent at large and mega-cap companies, respectively………………………………Full Article: Source

Fortune Lost: The short, brutal and costly ride of China Investment Corp. in Canada

Posted on 01 June 2015 by VRS  |  Email |Print

As May 19th, 2015 approached, China Investment Corp. was faced with a scenario that every pension or sovereign wealth fund dreads: whether to allow one of its key investments to live or die. SouthGobi Resources Ltd. has become a sad story in Canada’s mining sector. The Vancouver-based company, which operates in Mongolia, is almost entirely out of cash. Its operations are deep in the red. Its CEO recently resigned. And a Mongolian court this year fined the company US$18.2 million in a very dubious tax-fraud case.
SouthGobi had a US$7.9 million interest payment coming due to China Investment Corp. (CIC) on the 19th that it was in no position to pay. State-owned CIC had two options, neither very attractive: call the loan and potentially force SouthGobi into creditor protection, or defer the payment and let the company stagger along for another couple of months trying to seek rescue funding. Not surprisingly, CIC chose the latter………………………………….Full Article: Source

China stocks plunge 6.5% after sovereign fund cuts stakes in banks

Posted on 29 May 2015 by VRS  |  Email |Print

Chinese stocks fell the most in four months on Thursday, as a selloff swept the financial sector after a unit of China’s sovereign-wealth fund reportedly cut its stakes in state-owned banks for the first time. The Shanghai Composite Index sank 6.5% to 4,620.27, pulling back from a seven-year closing high after a seven-day bull run.
That also marked its steepest daily percentage decline since Jan. 19, when the index dived 7.7% after China tightened up margin-trading rules. Hong Kong’s Hang Seng Index HSI, -0.20% also declined 2.2%, falling the most in more than five months. The mainland-China-tracking Hang Seng China Enterprises was down 3.5%………………………………Full Article: Source

China’s Sovereign Wealth Fund Sold Bank Shares: Why Is It Such A Big Deal?

Posted on 29 May 2015 by VRS  |  Email |Print

The Shanghai stock market dived 6.5% yesterday after the Hong Kong Stock Exchange disclosed that China’s domestic sovereign wealth fund Huijin had sold some of its bank holdings. Why is this news clip such a big deal? Huijin is the major shareholders of the Big Four banks and this is its FIRST divestment.
Since 2008, Huijin has bought altogether 855 million shares of ICBC (1398.Hong Kong) and 561 million shares of China Construction Bank (939.Hong Kong in five rounds. “Its actions were largely seen as a symbolic support to both the market and the banking sector,” wrote Deutsche Bank analyst Tracy Yu and team this morning………………………………Full Article: Source

Temasek arm set to start new home loan company in India

Posted on 29 May 2015 by VRS  |  Email |Print

Fullerton India Credit Co. Ltd, the non-banking financial company owned by Singapore’s state-run investment firm Temasek Holdings Pte Ltd, will set up a new home finance company to lend to people in the so-called affordable housing segment, buoyed by its recent success in retail lending in India.
“So far, we have kept away from housing finance because competition was tough and we could not compete with the banks on pricing. But now, with the network we have built, we think we can compete on pricing and also take advantage of the high returns this sector offers,” Shantanu Mitra, managing director and chief executive said on Thursday………………………………Full Article: Source

Norway’s sovereign wealth fund accused of ‘pretend divestment’

Posted on 29 May 2015 by VRS  |  Email |Print

World’s richest sovereign wealth fund increased its investments in coal despite high-profile pledge to dump fossil fuels, financial analysis shows. The world’s richest sovereign wealth fund has sunk more money into coal just three months after a high-profile pledge to dump fossil fuels as part of its commitment to responsible investing, according to financial analysis by three environmental groups.
Instead of reducing its overall exposure to businesses based on coal, the Norwegian Government Pension Fund (GPF) increased its holdings by 3bn Norwegian kroner to NOK 85.8bn ($11bn/£7.3bn) by the end of last year, the report Still Dirty, Still Dangerous said………………………………Full Article: Source

Bahrain’s Mumtalakat sovereign wealth fund targets foreign acquisitions to fuel expansion

Posted on 28 May 2015 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund is targeting more acquisitions this year as it seeks to double its assets in the next five years. Mumtalakat, which posted net profit growth of 11 per cent last year to 91.6 million Bahraini dinars (Dh892.5m), plans to grow its assets, which reached US$7.2 billion at the end of June.
Profit rose despite a 64.6 per cent increase in impairments at 34.4m dinars, the wealth fund said. Revenue grew 11 per cent to 1.2bn dinars. “There are two ways that we grow our assets,” said Mahmood Al Kooheji, the chief executive. “Initially, the portfolio that we already have, there is potential to grow there. The other angle is that we are looking internationally and globally for new acquisitions to increase the value of the portfolio that we have.”………………………………..Full Article: Source

Abu Dhabi Staffs Up with US Equity Hire

Posted on 28 May 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA) has hired its first head of US equities for its internal team, the sovereign wealth fund has announced. John Pandtle joined from Eagle Asset Management where he was a portfolio manager. He spent five years at the Florida-based fund manager, and previously worked at its parent company Raymond James.
At ADIA Pandtle oversees a new team of US equity managers and is responsible for strategy within this sector of ADIA’s internal equities department. He has relocated from Florida to Abu Dhabi, and reports to Greg Eckersley, global head of internal equities. Pandtle’s appointment is the third significant equities hire made by ADIA in two years. Brian Tipple joined the sovereign wealth fund in September to oversee its third-party managers, while Suresh Sadasivan was appointed in August 2013 to run Asian equities……………………………………Full Article: Source

India: SWFs may get to buy stakes in highway projects

Posted on 27 May 2015 by VRS  |  Email |Print

The government is finalising a mechanism that will allow private equity firms and sovereign wealth funds, including Khazanah, Macquarie and Temasek to buy stakes in highway projects, freeing up resources for the sector. “There is a lot of interest…we are examining how best to leverage it…There are various options,” a road ministry official told ET, confirming that these three investors are among those that want to take over road projects in India and are waiting for a clear policy directive.
One option under consideration is a government-promoted special purpose vehicle that will pick up part of the equity in projects in which PEs and SWFs are interested. The Rs 20,000 crore National Investment and Infrastructure Fund, proposed by finance minister Arun Jaitley in his budget speech, could be tapped for this…………………………………..Full Article: Source

Putting aside billions – Africa’s sovereign wealth funds

Posted on 27 May 2015 by VRS  |  Email |Print

Sovereign wealth funds are sprouting across Africa – 15 countries have created funds in the last 20 years, managing a total of $159bn at the end of September 2014. Angola, Nigeria, Senegal and Ghana all started funds in the last 3 years and and funds are discussed, expected or being born in: Kenya, Liberia, Mauritius, Mozambique, Namibia, Niger, Uganda, Sierra Leone, South Sudan, Tanzania, Uganda, Zambia and Zimbabwe.
A key research event at Chatham House in September 2014 identified some principles of African SWF Demand, Development and Delivery. Funds with strict rules should limit politicians’ discretion and they can ensure that money is earmarked for public investments. For instance Ghana has a rule that oil revenues must fund “development-related expenditures”. In many cases this funding can be done through the governments’ budget and oversight systems, which otherwise funds might undermine and bypass………………………………….Full Article: Source

SOFAZ to invest in Chinese Yuan in mid-year

Posted on 26 May 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, an entity that accumulates and manages Azerbaijan’s oil and gas revenues, plans to invest $500 million in bonds, denominated in Chinese Yuan in June of this year. The relevant agreement has already been signed with the Chinese Central Bank, SOFAZ Executive Director Shahmar Movsumov told Trend Agency last week.
“We already have an agreement with the Central Bank of China, and a few days ago our securities committees signed a document, after which we can start investing,” he noted. Last week the State Securities Committee of Azerbaijan and China Securities Regulatory Commission signed a memorandum aimed to ensure the investors’ protection and promote the integrity of securities and futures markets and other related investment instruments by expanding the scope of cooperation, strengthening the exchange of regulatory and technical information………………………………………..Full Article: Source

Future Fund dives in

Posted on 26 May 2015 by VRS  |  Email |Print

The Future Fund has taken a deeper plunge into European debt markets by snapping up a €705 million ($988.6m) portfolio of loans from Hayfin Capital Management. Hayfin lends to medium-sized European companies and the financier works across the full range of debt structures, originating most of its own deals from structured transactions to mezzanine and other subordinated debt instruments.
The move is the culmination of six years of involvement by the Future Fund, which backed Haymarket Financial, alongside luminaries including Lord Rothschild, to the combined tune of €450 million in the wake of the financial crisis, when the continent’s credit markets were frozen………………………………………..Full Article: Source

Emirates Global Aluminium to spend $5bn boosting capacity

Posted on 26 May 2015 by VRS  |  Email |Print

State-owned Emirates Global Aluminium (EGA) is spending US$5.2 billion to boost capacity at its smelter in Dubai and build an alumina refinery in Abu Dhabi. EGA is a joint venture between the Abu Dhabi sovereign wealth fund Mubadala Development and the Dubai sovereign wealth fund Investment Corporation of Dubai.
EGA, the world’s fifth-largest aluminium producer, was formed last year with the merger of Abu Dhabi’s Emirates Aluminium (Emal) and Dubai Aluminium (Dubal)………………………………………..Full Article: Source

Your Student Loan Could Be Backed by Sovereign Funds

Posted on 26 May 2015 by VRS  |  Email |Print

The search for yield in an environment of low interest rates are pushing institutional investors such as U.S. pensions and wealth funds indirectly into the U.S. student loan market. These public investors have allocated swaths of capital to alternative investment firms like Apollo Global Management LLC through credit-related investment mandates.
For credit managers seeking yield, student loans seem attractive, especially high-quality consumer borrowers. Backing these Apollo funds are sovereign wealth funds, life insurance companies, endowments and pensions. The U.S. student loan market has mushroomed in size, as more young people attend university and tuition cost continues to increase. As of October 2014, the U.S. student loan market amounted to US$ 1.3 trillion which counts private loans without government guarantees………………………………………..Full Article: Source

With oil cheap, public pressure grows on Gulf sovereign funds

Posted on 25 May 2015 by VRS  |  Email |Print

Running sovereign wealth funds in the Gulf has become an awkward business in the era of cheap oil, as their managers face growing pressure from politicians and the public to prove they’re investing national reserves wisely.
When oil prices were high, the Gulf funds – which include some of the largest in the world – came under little public scrutiny. Government coffers were awash with energy revenues and the financial futures of the Gulf Arab states seemed secure. But with Brent crude now at little more than half last June’s level, the countries may be entering their toughest fiscal times since the 1990s, and this has changed the political climate………………………………………..Full Article: Source

Wealthy Gulf investors should focus on Mena infrastructure, WEF’s Gordon Brown says

Posted on 25 May 2015 by VRS  |  Email |Print

Gordon Brown, the former UK prime minister and current head of the World Economic Forum’s infrastructure initiative, urged wealthy Arabian Gulf states and individuals to invest in much-needed infrastructure projects in the poorer parts of the Middle East. There is a huge spending deficit on infrastructure in the region compared to other parts of the world, Brown noted.
He added, there is an enormous amount of untapped wealth in the richer parts of the region – particularly Gulf sovereign wealth funds – that could be accessed if the right structures were in place. “If you bring together Miga with a Saudi sovereign wealth fund to finance a project to build telecoms infrastructure in Palestine, you are going to get it done no problem,” said Thierry Déau, the founder of Meridiam, a French government-supported long-term infrastructure investment company………………………………………..Full Article: Source

CIC subsidiary to focus on overseas targets

Posted on 25 May 2015 by VRS  |  Email |Print

The nation’s sovereign wealth fund has established a new subsidiary that will focus on overseas direct investment, a senior official said on Wednesday. Gu Dawei, head of the department of foreign capital and overseas investment of the National Development and Reform Commission, said the company’s total funds for investment may exceed the $40 billion Silk Road Fund, a new financing institution for projects involved in the “Belt and Road Initiative” to develop connectivity along the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
The new subsidiary, CIC Capital, “has started operation. It will support domestic enterprises to invest abroad and encourage the export of the country’s advanced industrial capacity”, said Gu………………………………………..Full Article: Source

CIC Launches Overseas Investment Fund Arm

Posted on 22 May 2015 by VRS  |  Email |Print

China’s sovereign wealth fund, China Investment Corporation (CIC), has created a new direct investment arm with US$5 billion in seed capital to help Chinese companies invest overseas, according to statements made by a senior government official quoted by Chinese media.
Gu Dawei, a director in charge of overseas investment at China’s National Development and Reform Commission, implied during a press conference yesterday in Beijing that the new investment entity could eventually be as large as over US$40 billion. “(The fund) will be large, potentially larger than the Silk Road Fund,” says Gu, referring to an investment fund established in November 2014 to invest in infrastructure projects in Asia to upgrade trade and transportation networks between China, Central Asia and Europe………………………………………..Full Article: Source

Qatar’s PSG named the best paid team in world sport

Posted on 22 May 2015 by VRS  |  Email |Print

Qatar-owned Paris Saint-Germain are the best paid team in world sport according to Sportingintelligence’s new Global Sports Salaries Survey (GSSS) for 2015. The average first-team pay at the French football club has been calculated at £5.3 million ($8.3 million) per year, or £101,898 ($159,797) per week in the period under review.
PSG have just completed a hat-trick of league titles in France’s top division, adding the 2014-15 crown to those won in 2013-14 and 2012-13 on the back of a takeover by the oil-funded Qatar Sports Investments (QSI) in 2011. Qatar’s sovereign wealth fund, which draws from the same resources that fund PSG’s owners QSI, has an estimated $304 billion under investment. The sovereign wealth fund of Abu Dhabi, which includes City’s owner Sheikh Mansour on its board of directors, has assets estimated at $773 billion………………………………………..Full Article: Source

Sovereign, public pension funds investing more in real estate and infrastructure: report

Posted on 22 May 2015 by VRS  |  Email |Print

Sovereign wealth funds and public pension funds have been moving aggressively into real estate and infrastructure to offset low returns in traditional markets, raising the risk of asset bubbles, said the Global Public Investor 2015 (GPI 2015) report. The survey of 500 global public-sector institutions across 180 countries found that central banks, on the other hand, continue their purchases of equities.
Total assets under management, including gold, of these 500 public sector asset managers rose 1.8 per cent or US$520 billion in 2014 to US$29.7 trillion. Growth was primarily driven by public pension and sovereign funds. The Official Monetary and Financial Institutions Forum (OMFIF), the global research and advisory group behind the report, estimates that 9.1 per cent or US$2.7 trillion of the total assets held by the 163 central banks, 89 sovereign funds and 248 public pension funds surveyed lie in real estate and infrastructure………………………………………..Full Article: Source

Lord Hutton: Ministers must not turn LGPS into a sovereign wealth fund

Posted on 21 May 2015 by VRS  |  Email |Print

There are better ways to improve the local government pension scheme (LGPS) than merging it into one big sovereign wealth fund, according to Labour peer Lord John Hutton. He warned it is a “mistake” for ministers to look at the LGPS as a future UK sovereign wealth fund (SWF) that could boost investment in infrastructure projects.
The former Labour minister said it could be a mistake to create what would be the fifth largest pension fund in the world and said we have to “tread carefully” with fund mergers. “It’s a mistake to look at LGPS in that way as we have pension liabilities to pay out. But I do think this appetite for reform among ministers has not waned over the past few months. They’re just waiting for the opportunity to get going with it.”……………………………………….Full Article: Source

GIC, CPPIB to acquire Seoul mall for S$348m

Posted on 19 May 2015 by VRS  |  Email |Print

Sovereign wealth fund GIC and Canada Pension Plan Investment Board (CPPIB) will be acquiring the D-Cube retail mall in Seoul in a joint venture for US$263 million (S$348 million). As part of a joint venture partnership, GIC and Canada Pension Plan Investment Board will each own a 50 per cent stake in the mall next to Sindorim Station in Seoul.
In a joint media release on Monday (May 18), GIC and CPPIB said they will each own a 50 per cent stake in the mall following the acquisition from Daesung Industires. D-Cube, which was completed in 2011, is situated next to Sindorim Station, a major transportation hub connecting Seoul with Incheon and other major metropolitan cities near the capital………………………………………..Full Article: Source

POSCO to Finalize Cooperation Deal with Saudi Fund

Posted on 19 May 2015 by VRS  |  Email |Print

POSCO Co., South Korea’s largest steelmaker, likely will sign a comprehensive cooperation deal with South Arabia’s sovereign wealth fund next month that includes the sale of a stake in its construction unit, industry sources said.
POSCO was supposed to complete the deal with the Public Investment Fund (PIF) earlier last month to sell a 38 percent stake in POSCO Engineering & Construction for about US$1 billion. The process, however, has been in limbo since the prosecution launched an investigation into POSCO E&C on charges of creating a slush fund in mid-March………………………………………..Full Article: Source

Kazakhstan Privatizing Transtelecom

Posted on 19 May 2015 by VRS  |  Email |Print

Around 49 percent of the shares in Transtelecom, the large Kazakh communications operating firm, have been sold as part of a new privatization program, the Samruk-Kazyna National Welfare Fund has said, according to Kazinform.
The sovereign wealth fund noted in its statement that the national railways carrier, NC Kazakhstan Temir Zholy JSC was the seller of the stake. Presently, Temir Zholy retains 51 percent of the Transtelecom shares………………………………………..Full Article: Source

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