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Regional sovereign wealth funds rack up $5.6bln worth of deals

Posted on 18 March 2014 by VRS  |  Email |Print

Middle East sovereign wealth funds completed seven major direct property deals worth a total of US$5.6 billion last year – and more big ticket purchases are expected over the coming months. The deals involved commercial, retail and hotel properties.
According to the property broker JLL, the Kuwait Investment Authority sealed the largest middle Eastern sovereign wealth fund deal last year when St Martins, the property division of the Kuwait government, agreed to buy the 13-acre More London office and restaurant complex near London Bridge in London for $2.7bn………………………………………..Full Article: Source

AmEx will spin off business travel in $900 mln deal

Posted on 18 March 2014 by VRS  |  Email |Print

American Express Co. (AXP) agreed to sell a 50 percent stake in its business-travel division for $900 million to partners that include Qatar’s sovereign-wealth fund.
AmEx will create a joint venture with an investor group led by Certares International Bank LLC and Qatar Holding LLC, AmEx and the Qatari fund said today in separate statements. The business will use the American Express brand and be headed by Bill Glenn, the New York-based firm’s president of global commercial services, AmEx said. The consumer travel operation isn’t part of the deal………………………………………..Full Article: Source

Qatar Investment Authority mulls US opportunities

Posted on 14 March 2014 by VRS  |  Email |Print

The Qatar Investment Authority (QIA) has a ‘high priority’ to make further investments in the United States, US Secretary of Commerce Penny Pritzker said. She was addressing a special edition of the Distinguished Speaker Series organised by the American Chamber of Commerce in Qatar (AmCham Qatar) in partnership with the National US-Arab Chamber of Commerce (NUSACC). The high ranking US official said that her country offered a great opportunity for investors from all over the world, including Qatar.
Pritzker talked about her meeting with QIA officials and said she encouraged Qatar’s business leaders to take a closer look at the US for foreign direct investment………………………………………..Full Article: Source

Here’s why Singapore’s GIC is expanding investments in Brazil

Posted on 14 March 2014 by VRS  |  Email |Print

Despite headwinds of a presidential election, higher inflation, and the possibility of deep budget cuts and increased taxes, institutional investors like sovereign wealth funds and pensions are betting on Brazil’s long-term economic viability.For Latin America, sovereign funds are not terrified by short-term volatility.
Pensions and sovereign wealth funds center on consumer-oriented companies, counting on middle class expansion. According to World Bank data, in 2005, the poverty headcount ratio in Brazil was 30.8%. In 2009, the ratio lowered to 21.4%. Attractive sectors for public pensions and sovereign funds in Brazil run from, infrastructure, real estate, telecommunications and consumer goods like food………………………………………..Full Article: Source

GIC’s investment in Linx shows confidence in Brazil’s economy

Posted on 13 March 2014 by VRS  |  Email |Print

GIC Pte, Singapore’s sovereign wealth fund, is buying stakes in Brazilian companies in a sign of confidence the world’s second-largest emerging market will overcome slower growth.
GIC bought 5.02 percent of communications technology provider Linx SA (LINX3), according to a March 10 filing by Linx. This month, it increased its stake in Sao Paulo-based food processor BRF SA (BRFS3) and in October agreed to invest in water and sewage treatment company Aegea Saneamento e Participacoes SA………………………………………..Full Article: Source

Norway’s wealth eroding competitiveness

Posted on 13 March 2014 by VRS  |  Email |Print

Norway’s export industry is buckling under the weight of the country’s wealth. Prime Minister Erna Solberg says that Scandinavia’s richest nation now needs to rein in budget spending to stop eroding trade competitiveness.
Backed by a US$850 billion sovereign wealth fund, Norway is struggling to spur growth as wages that far exceed the European average hold back the economy. That’s killing jobs in a nation that has been accustomed to having one of Europe’s lowest unemployment rates………………………………………..Full Article: Source

F-1 backlash means biggest wealth fund faces new oversight

Posted on 13 March 2014 by VRS  |  Email |Print

Norway’s largest political party wants to look into revamping oversight of the nation’s $850 billion sovereign wealth fund amid questions around its handling of an investment in Formula One.
The opposition Labor Party is responding to local media reports questioning whether the state-run fund followed its mandate when it invested in the auto racing group ahead of a planned initial public offering. The fund can only buy private equity if a company is planning to sell shares to go public. Formula One’s IPO was subsequently canceled………………………………………..Full Article: Source

Qatari Diar to open American regional office

Posted on 13 March 2014 by VRS  |  Email |Print

Qatari Diar Real Estate Investment Company of Qatar Investment Authority is to open a regional office in Washington D.C. to pursue new strategic investments throughout the western hemisphere.
The office will be located in City Center D.C. complex, Qatari Diar ’s flagship North American development currently nearing completion in conjunction with Hines. Designed by Foster + Partners, City Center D.C. is a 148,000sqm urban redevelopment programme in the heart of downtown Washington D.C………………………………………..Full Article: Source

It was a mistake to invest in F1, says world’s largest sovereign wealth fund

Posted on 12 March 2014 by VRS  |  Email |Print

Norway’s $840bn oil fund voices concerns over F1 owner Bernie Eccleston’s upcoming corruption trial. Norway’s $840bn oil fund, the world’s largest sovereign wealth fund, has admitted that investing in Bernie Ecclestone’s Formula One Group was a mistake.
In May, the fund paid $1.6bn for a 21.3pc share of the group in a consortium with two other funds, BlackRock and Waddell & Reed Financial. “Yes, we have made a mistake,” fund director Yngve Slyngstad told the business daily Dagens Naeringsliv, suggesting the fund may try to offload its stake………………………………………..Full Article: Source

Norwegians could look to offload F1 stake 11 March 2014

Posted on 12 March 2014 by VRS  |  Email |Print

The Norwegian sovereign wealth fund could decide to sell on its F1 stake if the sport cannot free itself from accusations of corruption. Norway’s sovereign wealth fund has confirmed that it will look to sell its stake in F1 should both its own problems and those affecting the sport in general not be addressed.
Questions were raised in the national parliament last week asking whether the fund had violated its remit by joining US-based investors BlackRock and Waddell & Reed in acquiring a $1.6bn stake in F1 last May. Although the purchase appeared to be in good faith at the time, F1’s decision to cancel its proposed stock market flotation put the fund’s holding in jeopardy as it is only permitted to acquire a stake in an unlisted company if it plans an initial public offering………………………………………..Full Article: Source

OIDB could be turned into financial institution

Posted on 12 March 2014 by VRS  |  Email |Print

With no strategic pool of funds available for the oil sector, the Ministry of Petroleum and Natural Gas has proposed turning the Oil Industry Development Board (OIDB) into a financial institution for the petroleum sector similar to Power Finance Corporation for power sector. To provide funds for OIDB, it has also asked for a share in the oil cess.
The proposed sovereign fund is meant to provide insurance cover to Indian refineries using Iranian crude oil. OIDB is set to contribute around Rs 1,000 crore of this insurance pool, while the remaining amount would be contributed by public sector insurers. “For the insurance pool, we have already circulated a Cabinet note though a decision would only be taken after the new government comes to power,” said the official………………………………………..Full Article: Source

Norway’s PM Solberg cautious on wealth fund spending in 2015 budget

Posted on 11 March 2014 by VRS  |  Email |Print

Norway should not dig too deeply into its $850-billion sovereign wealth fund in the coming budget because this could overheat the economy and erode recent competitiveness gains, Prime Minister Erna Solberg told Reuters on Monday.
Her government, composed of the center-right Conservatives and the more radical right-wing Progress Party, begins today negotiations over next year’s budget, the first by the coalition since winning elections in September………………………………………..Full Article: Source

Why it makes sense for Norway to sell its fossil fuel shares

Posted on 11 March 2014 by VRS  |  Email |Print

The Norwegian government’s sovereign wealth fund, which owns part of almost every listed company in the world, is considering selling out of its investments in carbon-intensive firms.
Given that the $840 billion fund, the world’s largest, invests the proceeds from the country’s oil and gas industry, this would be a stunning move. But the Norwegian Government Pension Fund does not have to look far for sound business reasons to take this step………………………………………..Full Article: Source

Ireland: Reinventing a national pension scheme

Posted on 11 March 2014 by VRS  |  Email |Print

It has been used to bail out the banking system and will soon change its name as part of a reorientation to support Ireland’s domestic economy with private equity and direct investments.
The NPRF, a so-called mini sovereign wealth fund managed by Ireland’s National Treasury Management Agency, was first set up by the Irish government in 2001 to deal with the prospect of an ageing population. Charlie McCreevy, Ireland’s minister for finance at the time, estimated that Ireland’s social welfare and public service pensions costs would rocket from 4.7% of gross domestic product to 12.4% by 2050………………………………………..Full Article: Source

Temasek’s pivot to private investment heralds billion-dollar listed asset sales

Posted on 11 March 2014 by VRS  |  Email |Print

Singapore’s Temasek Holdings is shedding the skin of a sprawling sovereign investment house, cutting stakes in big publicly listed companies as it puts more money into growing private companies and private equity firms in search of better returns.
Under the guiding hand of chief executive Ho Ching, the wife of Singapore’s prime minister, the $170 billion state investor is morphing into a leaner form. The firm’s returns have often lagged its own internal metric in recent years due to its focus on big stocks………………………………………..Full Article: Source

Taiwan sovereign fund would help asset revitalization

Posted on 10 March 2014 by VRS  |  Email |Print

An SWF can give fresh impetus to the local economy and increase the nation’s influence on the global economy and finance. There are quite a few examples of how an SWF can work to raise a nation’s political and economic clout and boost national income. There are more than 30 such funds in the world today.
Besides the more famous ones in Brunei, Kuwait, Norway and Singapore, mainland China in September 2007 used some of its foreign exchange reserves to set up China Investment Corp. France also set up an SWF in the wake of the 2008 financial crisis out of considerations of national economic security………………………………………..Full Article: Source

Biggest wealth fund called on to explain Formula One investment

Posted on 07 March 2014 by VRS  |  Email |Print

Norway’s $850 billion sovereign wealth fund, the world’s biggest, is being called on by lawmakers to prove it didn’t shirk its own rules with a 2012 investment in Formula One.
Politicians are responding to local media reports questioning whether the state-run fund followed its mandate when it invested in the auto racing group ahead of a planned initial public offering. The fund can only buy private equity if a company is planning to sell shares to the public. Formula One’s IPO was subsequently canceled………………………………………..Full Article: Source

Reformed Irish SWF to act as alternative source of project finance

Posted on 07 March 2014 by VRS  |  Email |Print

The Irish government has said it is “essential” the Ireland Strategic Investment Fund (ISIF) act as an alternative source of financing for a broad range of projects – from agriculture, to construction and technology ventures.
Minister for finance Michael Noonan said he was hopeful Parliament would pass a yet-unpublished bill by “the middle of the year” to formally establish the ISIF, allowing the €6.8bn held within the National Pensions Reserve Fund’s (NPRF) discretionary portfolio to be deployed………………………………………..Full Article: Source

Bahrain fund targets foreign deals for first time since McLaren

Posted on 06 March 2014 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund expects this year to make its first international acquisition since buying a 30 percent stake in carmaker McLaren Automotive Ltd in 2007.
Mumtalakat, as the fund is called, is looking at more than one foreign company, chief executive officer Mahmood Al Kooheji said today in an interview in Manama. “We have more than one deal in the pipeline and they are at various stages of development,” he said………………………………………..Full Article: Source

NSIA targets power, healthcare, real estate, motorways, agric for infrastructure financing

Posted on 06 March 2014 by VRS  |  Email |Print

Amidst criticisms over non-accretion to fiscal savings such as the foreign reserves and the Sovereign Wealth Fund, even under current account surpluses, the Nigeria Sovereign Investment Authority (NSIA) has established five subsidiaries in a renewed approach to foster multi-sectoral investments in infrastructure, BusinessDay has gathered.
The NSIA, managers of the nation’s $1.5 billion Sovereign Wealth Fund, (SWF), under the new dispensation to ensure accountability for the common wealth of Nigerians, introduced the NSIA Motorways Company Limited, Power investment, Healthcare and Real Estate investments, some of which have commenced operations………………………………………..Full Article: Source

Sovereign wealth funds body moves to London

Posted on 06 March 2014 by VRS  |  Email |Print

The International Forum of Sovereign Wealth Funds announced that it is switching its headquarters from Washington to London. “The decision further reinforces IFSWF’s position as a significant global institution,” said the group, which represents the world’s top sovereign wealth funds.
Sovereign wealth funds are investment vehicles typically controlled by rich countries with trillions of dollars at their disposal ready to invest abroad. The IFSWF was founded in 2009 in Kuwait and brings together 26 leading funds from countries including Australia, Azerbaijan, China, New Zealand, Norway and the United Arab Emirates………………………………………..Full Article: Source

BHP boss Andrew Mackenzie warns against ban on fossil fuel investment

Posted on 05 March 2014 by VRS  |  Email |Print

A ban on fossil fuel investment would ‘’seriously” slow global economic growth, and many of the people advocating such measures were speaking from northern hemisphere points of view, according to BHP Billiton chief executive Andrew Mackenzie.
Speaking in the wake of Norway’s decision to investigate whether its sovereign wealth fund should be banned from investing in coal, oil and gas, Mr Mackenzie said such debates often failed to properly understand the realities of life in poorer and developing countries, where 20 per cent of the world’s population still does not have access to reliable forms of energy………………………………………..Full Article: Source

Norway’s oil fund caught between the devil and deep blue sea

Posted on 04 March 2014 by VRS  |  Email |Print

On the very day last week when Norway’s parliament discussed banning its sovereign wealth fund from investing in coal miners, Store Norske, the country’s state-owned coal miner, opened a mine on the Arctic island of Svalbard. Hypocrisy was the word on the lips of environmentalists.
Now that charge has gained even more resonance. In the early hours of Friday, the two governing centre-right parties in Norway and two of their allies killed off the plans for an immediate ban on coal investment. Instead, they agreed something far more ambitious. An expert group will be set up to see whether Norway’s oil fund – the world’s largest sovereign wealth fund with assets of $840bn – should stop investing in any companies related to fossil fuels – not just coal, but oil and gas, too………………………………………..Full Article: Source

1Malaysia wins bid to build power plant

Posted on 04 March 2014 by VRS  |  Email |Print

Sovereign wealth fund 1Malaysia Development Bhd (1MDB) has won a major government tender to build a power plant, which will help make an up to US$2 billion IPO of its power assets more attractive to investors.
The news came just after sources said that 1MDB, chaired by Prime Minister Najib Razak, had shortlisted at least six investment banks to make final presentations for the IPO. A decision on the winning bidder for the US$3.6 billion coal-fired power plant had been delayed after bids from 1MDB and YTL Power International came in too close to call………………………………………..Full Article: Source

Norway oil fund set to increase company stakes

Posted on 03 March 2014 by VRS  |  Email |Print

Norway’s sovereign-wealth fund, the world’s biggest, is set to invest in larger ownership positions in more companies even as its chief executive expects a cooling of equity markets following a strong performance in 2013.
The $840 billion oil fund posted returns of 15.9% in 2013, or the second-best in its 18-year history, with the strength of its massive stock portfolio countering flat bond returns. The U.S. Federal Reserve’s liquidity actions were cited as a key reason for strong equities……………………………………….Full Article: Source

Biggest wealth fund forced to sell stocks as limit breached

Posted on 03 March 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, gained 692 billion kroner ($115 billion) last year as stocks rallied, forcing it to pare its equity holdings for the first time ever to comply with risk mandates.
The Government Pension Fund Global returned 15.9 percent in 2013, after rising 13.4 percent the year before, the Oslo-based investor said today. The $840 billion fund’s stocks returned 26.3 percent, while its bond investments climbed 0.1 percent. Real estate investments gained 11.8 percent………………………………………..Full Article: Source

Norways giant oil fund likes everyone else’s whipping boy

Posted on 03 March 2014 by VRS  |  Email |Print

Norway’s oil fund, the world’s biggest sovereign wealth fund, has just announced that it had its second-best year ever. Norges Bank Investment Management, the arm of the central bank that manages the fund, said gains were driven by bouncy equity markets while bond markets barely returned anything at all.
Among the interesting nuggets in the presentation: a particular enthusiasm for emerging markets debt—the whipping boy of 2013. Last year was pretty grim for developing countries. Concerns over an unwinding of monetary stimulus by the Fed as well as economic weakness sent investors scurrying out of emerging markets. Currencies tumbled and bond yields surged in many regions………………………………………..Full Article: Source

Kazakhstan to launch new domestic airline

Posted on 03 March 2014 by VRS  |  Email |Print

Kazakhstan is to launch a new domestic airline, the oil-rich country’s sovereign wealth fund has announced. The airline, to be called Ar Kazakhstan, will likely be based on a fleet of regional Bombardier planes and aims to rival the existing carrier Air Astana.
President Nursultan Nazarbayev said during a meeting with Bombardier CEO Pierre Beaudoin on Wednesday that Kazakhstan was pursuing a contract with the Canadian company to supply planes for the service. Umirzak Shukeyev, the head of the Samruk-Kazyna fund, said the new regional airline was being created to improve flight safety. It would both cooperate and compete with Air Astana………………………………………..Full Article: Source

Zimbabwe is willing to negotiate mining royalties, minister says

Posted on 03 March 2014 by VRS  |  Email |Print

Zimbabwe’s government is willing to negotiate royalties with mining companies, Finance Minister Patrick Chinamasa said after the government proposed channeling a quarter of the levies into a planned sovereign wealth fund.
“We are aware that we shouldn’t kill the goose that lays the golden egg, but equally the goose mustn’t take the entire egg,” Chinamasa said. The planned wealth fund would receive royalties from gold, diamond, platinum and other mining operations under a bill outlined by the government in November………………………………………..Full Article: Source

Sovereign wealth funds buying more Japanese stocks

Posted on 03 March 2014 by VRS  |  Email |Print

The Nikkei is carrying an article today headlines “Sovereign wealth funds buying more Japanese stocks” Sovereign wealth funds are stepping up their purchases of shares of Japanese companies Seen as having raised their growth potential due to continued restructuring and the economic policies of Prime Minister Shinzo Abe Government.
Pension Fund of Norway, held about 3.7 trillion yen ($35.9 billion) in Japanese shares at the end of last year, double the level of a year earlier, according to a recent report from Norges Bank, the country’s central bank, which manages the fund………………………………………..Full Article: Source

Mubadala, Trafigura complete acquisition of 65pct of Porto Sudeste in Brazil

Posted on 28 February 2014 by VRS  |  Email |Print

Commodity trading company Trafigura Group and Abu Dhabi’s sovereign wealth fund have completed their acquisition of a controlling stake in a major Brazilian port from troubled Brazilian tycoon Eike Batista.
Trafigura and Abu Dhabi’s Mubadala Development Co. will own a combined 65% of Porto Sudeste while MMX Mineracao e Metalicos SA, an iron-ore miner controlled by Mr. Batista, will retain the remaining 35%, the companies said in a statement. In exchange, Trafigura and Mubadala will take on 1.3 billion Brazilian reais ($553 million) in debts owed by one of MMX’s mining subsidiaries, and will also invest $400 million in the port, according to the statement………………………………………..Full Article: Source

Kazakhstan to create regional airline with Bombardier planes

Posted on 28 February 2014 by VRS  |  Email |Print

Kazakhstan will create a new airline to serve domestic routes and has entered a partnership agreement with Canada’s Bombardier Inc on delivery of its first 10 planes, the oil-rich country’s sovereign wealth fund said on Thursday.
President Nursultan Nazarbayev met Bombardier Chief Executive Officer Pierre Beaudoin on Wednesday and told him that the company would perform domestic flights and be called Air Kazakhstan. “We must register the new company by May, attract an operator, and we already know who it will be, and buy these planes and deliver them by the end of this year,” Umirzak Shukeyev, head of the Samruk-Kazyna state investment fund said………………………………………..Full Article: Source

Alaska Permanent Fund looks to North Dakota

Posted on 28 February 2014 by VRS  |  Email |Print

The Alaska Permanent Fund is joining the rush to the Bakken, the new North Dakota shale oil play that has had Alaska leaders fearful and envious.
Anger at being surpassed by North Dakota in oil production was used by those challenging Alaska’s former ACES oil tax law in recent years, and it helped win passage of Senate Bill 21, an oil-tax rollback championed by the state’s oil industry and Gov. Sean Parnell………………………………………..Full Article: Source

Sovereign wealth fund partners Julius Berger on 2nd Niger bridge

Posted on 27 February 2014 by VRS  |  Email |Print

The Nigeria Sovereign Investment Authority (NSIA) said it has signed an agreement with Julius Berger (JB) Nigeria Plc, under its Motorways investment, for the construction of the Second Niger Bridge. The project, which is projected to cost N117 billion, would be constructed with an additional 39-kilometre dual carriageway along the Onitsha-Enugu axis.
The Managing Director/Chief Executive of the NSIA, Mr Uche Orji, who disclosed this while briefing journalists in Abuja on the progress made so far with the fund, said it has invested the sum of $10 million out of the Sovereign Wealth Fund into the Nigerian Mortgage Refinancing Company (NMRC) which was launched by President Goodluck Jonathan last month………………………………………..Full Article: Source

Global wealth funds buy ‘trophy’ hotel properties away from big brands

Posted on 27 February 2014 by VRS  |  Email |Print

Global sovereign wealth funds and high-net-worth individual investors are steadily acquiring big-ticket hotel “trophy” assets around the world, and experts say the trend is likely to continue. While Middle Eastern investors have had the strongest presence recently among such buyers, cash-laden investors are now emerging from China to Norway to Latin America.
Major players such as Starwood Hotels & Resorts Worldwide and Marriott International have sold multiple luxury properties to overseas buyers in recent months, particularly Middle Eastern individual investors and sovereign wealth………………………………………..Full Article: Source

Azerbaijan creates company on Shah Deniz projects’ management and gas delivery to Europe

Posted on 26 February 2014 by VRS  |  Email |Print

Azerbaijani President Ilham Aliyev has signed a decree on Feb. 25 establishing a closed joint-stock company (CJSC) for effective management of projects within the second phase of Shah Deniz gas and condensate field’s development, expansion of the South Caucasus Pipeline, Trans-Anatolian Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).
State Oil Fund of Azerbaijan (SOFAZ) has been instructed to provide an equity financing for the CJSC, which is under direct state ownership. The funds to be provided to the CJSC for financing the equity will provide a long-term investment on return conditions. CJSC’s proceeds received from all projects will be transferred to SOFAZ, until all of funds invested in the joint stock company are repaid………………………………………..Full Article: Source

The hidden giant: Abu Dhabi’s oil IPIC is emerging stronger than ever

Posted on 26 February 2014 by VRS  |  Email |Print

The government of Abu Dhabi created IPIC to leverage the energy expertise embedded in the Abu Dhabi Investment Authority, or ADIA, the largest sovereign wealth fund in the Middle East and Adnoc, with its network of joint ventures with the world’s leading energy supermajors.
Abu dhabi’s International Petroleum Investment Co, or IPIC, one of the Gulf’s leading oil and gas multinational corporations, was founded by the late UAE President Shaikh Zayed bin Sultan Al Nahyan in 1984 to invest in energy upstream/downstream projects worldwide from exploration and production, pipelines refining, trading shipping, crude oil, natural gas………………………………………..Full Article: Source

Sovereign wealth fund from Malaysia and Qatar eyes hospitality asset in India

Posted on 26 February 2014 by VRS  |  Email |Print

In one of the biggest deals in the Indian hospitality industry, sovereign wealth funds of Abu Dhabi, Qatar and Malaysia are vying with each other to acquire two of India’s marquee properties for about US$322 million, said a news report. All the three funds are big time investors in leisure and tourism assets. Abu Dhabi Investment Authority, the world’s third biggest sovereign fund with US$627 billion of assets, recently bought Australia’s largest owner of hotels, Tourism Asset Holdings.
Similarly, Qatar Investment Authority, which owns luxury department store Harrods, plans to expand the brand into hotels. And Khazanah Nasional owns themed resorts in Malaysia……………………………………….Full Article: Source

Singaporean fund manager Fullerton to set up London office

Posted on 26 February 2014 by VRS  |  Email |Print

Temasek Holdings’ fund management arm, Fullerton, is to open an office in London to build up its business with European investors, Britain’s finance ministry said on Tuesday.
Fullerton Fund Management, which specialises in Asian and emerging markets and manages about S$12 billion in assets, cited Britain’s initiative, launched last year, to improve tax and regulatory competitiveness as a major draw………………………………………..Full Article: Source

1MDB’s ‘fantastic’ investment strategy?

Posted on 25 February 2014 by VRS  |  Email |Print

1MDB said it had “invested the proceeds with regulated and licensed international fund managers. These fund managers adopt an absolute return strategy of which the primary investment objective is to achieve long-term capital appreciation and/or steady income through investments in listed and/or unlisted companies”.
“A total of US$200 million (RM658.9 million) has been remitted from the fund to the 1MDB group in Malaysia to service repayment. Out of this, US$134 million (RM430 million) is from the 5.76 percent cash dividend generated within the first year of the investment period.”……………………………………….Full Article: Source

Abuja to host regional summit on sovereign wealth funds

Posted on 25 February 2014 by VRS  |  Email |Print

Africa Investor (AI), a leading international investment and communications group, has announced that Nigeria will host African pension and sovereign wealth funds at the Africa investor CEO Infrastructure Investment Summit, taking place in Abuja on May 6-7.
The Sovereign Wealth and Pension Fund Leaders Dialogue on Investing in Africa’s Infrastructure will be the first of its kind to engage Africa’s pension and sovereign wealth funds on investing in the continent’s wealth of bankable infrastructure investment opportunities………………………………………..Full Article: Source

Crisis puts sovereign funds under pressure to keep assets liquid

Posted on 24 February 2014 by VRS  |  Email |Print

Caught in an emerging market storm, some resource-rich states may keep more windfall income in liquid assets, ready to aid their economies, rather than locked up in strategic investment for future generations.
Kazakhstan’s move last week to dip into its National Fund to slash banks’ bad loans and - to some extent - Russia’s plan to tap into its wealth fund to bail out Ukraine reduce a potential pool of funds that otherwise could have been invested in capital-heavy projects such as infrastructure………………………………………..Full Article: Source

Korea Investment Corporation–Re-imaging the state in the global sphere

Posted on 24 February 2014 by VRS  |  Email |Print

At about $64 billion (2013), the sovereign wealth funds managed through the Korea Investment Corporation is among the smaller funds. As a member of the International Forum of Sovereign Wealth Funds, the KIC shares certain characteristics with the larger SWFs, grounded on the GAAP of the Santiago Principles.
The KIC is also a relatively new fund. It was established in 2005 under the Korean Investment Corporation (KIC) Act No. 7393 (2005) as a non-commodity fund; or better put, as a government owned investment management company that specializes in overseas investment (Sovereign Wealth Fund Institute, South Korea)………………………………………..Full Article: Source

1MDB must explain Cayman Islands fund

Posted on 21 February 2014 by VRS  |  Email |Print

National sovereign wealth fund 1Malaysia Development Bhd (1MDB)’s failure to file its audited accounts for the financial year ending March 2013 with regulators has raised questions over its transparency. Petaling Jaya Utara MP Tony Pua said this is even so when coupled with 1MDB’s decision to replace KPMG - its auditors since its inception - with rival firm Delloite.
Pua said the change of auditors “rings the loudest alarm” as there are many unanswered questions over 1MDB’s US$2.32 billion fund in the Cayman Islands………………………………………..Full Article: Source

Ruble slides third day as wealth fund top-up plan stokes concern

Posted on 20 February 2014 by VRS  |  Email |Print

The ruble weakened for a third day on bets a Finance Ministry plan to replenish one of Russia’s wealth funds will blunt central bank steps to slow the local currency’s fall.
The ruble lost 0.5 percent to 41.6355 against Bank Rossii’s target basket of dollars and euros by 11:54 a.m. in Moscow. The yield on the government’s bonds due February 2027 rose six basis points, or 0.06 percentage point, to 8.38 percent………………………………………..Full Article: Source

Temasek seeks SingTel as buyer for $3.1 bln Shin Corp stake

Posted on 18 February 2014 by VRS  |  Email |Print

Singapore state investor Temasek Holdings Pvt Ltd is seeking to sell its $3.1 billion stake in Thai telecom company Shin Corp, according to people familiar with the matter, and has approached its SingTel unit as a possible buyer.
Temasek, which owns 41.6 percent of Shin Corp through a subsidiary, held talks with Singapore Telecommunications Co, as SingTel is formally known, late last year, but those discussions have since stalled, said the people, who declined to be identified as the information is not public………………………………………..Full Article: Source

QIA says open to global partnerships

Posted on 18 February 2014 by VRS  |  Email |Print

Ahmad al Sayed, the CEO of Qatar Investment Authority (QIA) has said the country’s sovereign wealth fund is open to partnerships across the world and not limited or restricted to a specific area or a country.
“We are a global fund. We invest globally, we diversify our assets geographically and by asset classes, and we have asset allocations so we will invest whenever the opportunity comes,” said al Sayed………………………………………..Full Article: Source

Sovereign wealth fund from Malaysia, Qatar eyes hospitality asset in India

Posted on 17 February 2014 by VRS  |  Email |Print

In one of the biggest deals in the Indian hospitality industry, sovereign wealth funds of Abu Dhabi, Qatar and Malaysia are vying with each other to acquire two of India’s marquee properties for about US$322 million, said a news report.
All the three funds are big time investors in leisure and tourism assets. Abu Dhabi Investment Authority, the world’s third biggest sovereign fund with US$627 billion of assets, recently bought Australia’s largest owner of hotels, Tourism Asset Holdings………………………………………..Full Article: Source

Phillipines: Salvaging the Malampaya Fund

Posted on 17 February 2014 by VRS  |  Email |Print

The objective of the sovereign wealth fund, however, is not to be a stagnant financial reserve. Norway, the country with the largest sovereign wealth fund in the world, has avoided the “resource curse” by not spending its oil revenues.
However, Jens Stoltenberg… states, “The problem in Europe with the deficits and the debt crisis is that many European countries have spent money they don’t have. The problem in Norway is that we don’t spend money we do have.”……………………………………….Full Article: Source

For a better fund!

Posted on 17 February 2014 by VRS  |  Email |Print

Saudi Arabia’s SAMA (which is the country’s central bank), has foreign holding assets totaling $679.5 billion, while Abu Dhabi Investment Authority’s (ADIA) assets are estimated at around $627 billion. Kuwait Investment Authority, known as KIA, is estimated at around $386 billion, while the Qataris, through their powerful Qatar Investment Authority (QIA), are estimated to have $170 billion worth of assets.
All of these powerful financial institutions clearly have a wide mandate from their government to invest and diversify the base of their respective national economies. However, they dramatically differ in the strategies and approaches………………………………………..Full Article: Source

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