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Sovereign Wealth Funds Briefing - Category | Market more

GIC bids to cash in on hot sector with $900m sell-off

Posted on 26 March 2015 by VRS  |  Email |Print

The Government of Singapore Investment Corporation is undertaking preparations to bring its $900 million Australian industrial and logistics property portfolio to market as it looks to capitalise on the surge in values in the sector. The group is poised to launch a portfolio offering in mid-2015 that could span about 25 properties across Australia, making it the ­nation’s largest direct industrial property portfolio sale.
The scale would be topped only by corporate deals, such as the Goodman Group-led consortium, including the Canadian Pension Plan Investment Board, Dutch pension group APG and China Investment Corporation, buying the $2.5 billion ING Industrial Fund in 2010………………………………………..Full Article: Source

Sovereign wealth funds: What does it take to succeed?

Posted on 25 March 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the country’s collective bank account now valued at $1 trillion and built from off-shore oil reserves, is often held up as a prime example of how such funds can succeed. The usual rule: make prudent investments, stick to them, be transparent and watch the money grow exponentially.
But Norway’s Government Pension Fund, as it is formally called, is only one of an estimated 80 or so sovereign wealth funds worldwide that collectively hold $7 trillion US. These others probably also hold lessons for how governments can save wisely for future generations. Lessons that might apply to Alberta’s Heritage Savings Trust Fund, which began in 1976 with the best of intentions, but seems to have stalled out at roughly $17.2 billion. But rating these sovereign wealth funds, it turns out, is a subjective affair………………………………………..Full Article: Source

Qatar’s QIA to join Swiss travel retailer Dufry in bid for WDF

Posted on 25 March 2015 by VRS  |  Email |Print

Qatar Investment Authority and Swiss travel retailer Dufry are teaming up to bid for Italian travel retailer World Duty Free (WDF), which belongs to the Benetton family, two sources familiar with the matter told Reuters on Monday. “QIA and Dufry have a joint bid for WDF,” said a senior banker in Doha familiar with the matter.
He declined to give details but said the tie-up was a sign of a more conservative investment style adopted by the Qatari sovereign wealth fund recently; in the past, it might well have bid by itself. A second source confirmed the joint bid and said the deadline was now expected to be March 31, after a delay due to rival bidders - South Korea’s Lotte Group and China’s Sunrise Duty Free - asking for more time………………………………………..Full Article: Source

Norway’s Sovereign Wealth Fund Holds Lessons For Canada

Posted on 24 March 2015 by VRS  |  Email |Print

In Stavanger, a quaint, seaside city on Norway’s coast, a local newspaper publishes a series called “The Oil Kids” that reports on the lifestyles of wealthy second-generation beneficiaries of Norway’s offshore oil riches. “If you compare to our parents or grandparents which built this country, I think we’re a little bit spoiled,” admits Bjorn Knudsen, whose father worked for a large North Sea oil company.
Fifty years ago, Stavanger’s biggest industry was canning herring. Now, this city is the country’s de facto oil capital. “We are extremely lucky,” says Bjorn’s wife, Kristin Alne, a production engineer for Det Norske Olijeselsksap, an offshore oil company………………………………………..Full Article: Source

GIC, Exeter Property Group form European real estate partnership

Posted on 24 March 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC formed a €300 million ($328 million) real estate partnership with Exeter Property Group, said a joint news release from the fund and real estate manager. Exeter will “acquire and actively manage the assets and implement value-add strategies including development and redevelopment to generate stable, long-term income returns,” the news release said.
The partnership will target “logistics properties in European distribution hubs, which offer easy access to motorways, water ports, airport and rail nodes,” the release said. The growing trend of e-commerce, supply-chain reorganization and demand for third-party logistic providers will increase demand for these properties over the long term, Exeter and GIC predict………………………………………..Full Article: Source

Brigade, GIC Singapore acquire HUL’s property arm

Posted on 24 March 2015 by VRS  |  Email |Print

Brigade Group has acquired Brooke Bond Real Estate Pvt Ltd, which has 11.39 hectares of land in Bengaluru, though Brigade Properties, its joint venture with GIC Singapore, for an undisclosed amount. Brooke Bond Real Estate is a subsidiary of consumer goods company Hindustan Unilever Ltd (HUL).
Bengaluru-based Brigade Group will develop an IT special economic zone on the 11.39-hectares located in Whitefield, Bengaluru. One of the city’s major IT hubs is located in Whitefield. Brigade Enterprises Chief Financial Officer Suresh Kris said: “We got the property at a very competitive price.” He, however, refused to divulge financial details of the deal………………………………………..Full Article: Source

GIC-Brigade JV buys site in Bangalore to develop it into IT special economic zone

Posted on 24 March 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC’s joint venture with Indian property developer Brigade Group has acquired a landmark site in Brookefields, Whitefield in Bangalore and plans to develop it into an IT special economic zone of more than three million square feet.
The joint venture, Brigade Properties Pvt Ltd, has acquired 100 per cent of Brooke Bond Real Estate Pvt Ltd - which owns the Whitefield property - from Hindustan Unilever Ltd. The transaction has received the nod of the SEZ Board of Approvals, GIC and Brigade Group said in a joint release on Monday………………………………………..Full Article: Source

Sovereign wealth funds start to leak oil

Posted on 23 March 2015 by VRS  |  Email |Print

Norway’s $850bn oil fund has performed a remarkable impression of the proverbial 800-pound gorilla in the past decade. It snapped up 1.3 per cent of the world’s equity market capitalisation and 0.9 per cent of the fixed income market, as well as dabbling in property, as its assets surged sevenfold.
So any substantial change to the fund, or to the wider $7.1tn sovereign wealth fund sector, matters to markets. With $4.3tn of that $7.1tn dependent on revenue streams from oil and gas, according to the Sovereign Wealth Fund Institute, a slump in the oil price from $115 a barrel in June 2014 to $57 now, might be regarded as constituting a material change………………………………………..Full Article: Source

1MDB: So where did the money go?

Posted on 23 March 2015 by VRS  |  Email |Print

At its annual report launch last week, Bank Negara deputy governor gave a relatively healthy assessment of the country’s economy. So glowing was the report, however, that several members of the audience felt compelled to ask his opinion of 1MDB, the proverbial elephant in the room.
He essentially responded by saying that “sovereigns” (meaning government-backed entities) are not monitored as closely as are “corporates” (meaning the private sector) in their respective issuance of bonds and similar financial instruments. This is presumably because a bond or debt obligation issued by a government authority is usually assumed as low-risk, given that they are backed by the taxing power of the said government………………………………………..Full Article: Source

Imagining the world of Tony Blair, Middle East peace envoy

Posted on 19 March 2015 by VRS  |  Email |Print

The Arab street was in uproar at the shock news of the departure of its favourite peace envoy. Young men and women, holding pictures of Tony Blair, marched through Arab capitals demanding his return. A #bringbackTony Twitter campaign rapidly gathered momentum.
The Blair business acumen has also been appreciated. Kuwait and an Abu Dhabi sovereign wealth fund have been clients of his firm. Admiration for Mr Blair was enhanced in the aftermath of the Arab spring, when some leaders in the region felt abandoned by a western world that embraced democracy even if it benefited Islamists………………………………………..Full Article: Source

Kazakhstan, Azerbaijan, Georgia and Turkey to set up joint transport company

Posted on 19 March 2015 by VRS  |  Email |Print

Kazakhstan, Azerbaijan, Georgia and Turkey intend to set up a joint transport company for rail transport as part of TRACECA program, Ambassador of Kazakhstan to Azerbaijan Amangeldy Zhumabayev said. “The countries are currently preparing an agreement on transit transportation,” he said. “It will introduce a single tariff for the transportation of goods and simplify the registration of contracts to suppliers.”
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) finances the project in accordance with the Azerbaijani president’s decree ‘On the implementation of the Baku-Tbilisi-Kars project activities’ dated February 21, 2007………………………………………..Full Article: Source

Norges Bank adds support to movement for ‘three and three’ proxy access in US

Posted on 18 March 2015 by VRS  |  Email |Print

World’s largest sovereign wealth fund joins CalSTRS, BlackRock and ISS in push for proxy access. Norges Bank, which manages Norway’s $900 bn Government Pension Fund, has thrown its support behind a growing movement in favor of proxy access in the US under the so-called three-and-three guidelines, joining other heavyweight investors such as CalSTRS and proxy advisers such as ISS.
The world’s biggest sovereign wealth fund, which accounts for 1 percent of shares owned worldwide, says it will vote in favor of proxy access proposals in the US this year for shareholders that have owned at least 3 percent of a company’s shares for at least three years………………………………………..Full Article: Source

Kazakhstan, Azerbaijan, Georgia and Turkey to set up joint transport company

Posted on 18 March 2015 by VRS  |  Email |Print

Kazakhstan, Azerbaijan, Georgia and Turkey intend to set up a joint transport company for rail transport as part of TRACECA program, Ambassador of Kazakhstan to Azerbaijan Amangeldy Zhumabayev said.
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) finances the project in accordance with the Azerbaijani president’s decree ‘On the implementation of the Baku-Tbilisi-Kars project activities’ dated February 21, 2007………………………………………..Full Article: Source

Norwegian fund dumps Australian coal investments

Posted on 17 March 2015 by VRS  |  Email |Print

The world’s richest sovereign wealth fund has rid itself of investments in Australian coal companies, highlighting the environmental impact of the production of the commodity. Norges Bank, manager of the $US850 billion Norwegian Government Pension Fund, has outlined the divestment of its interests in 14 coal miners around the world in 2014.
Five Australian companies among them included Whitehaven Coal, owner of the Maules Creek project, which has been under constant scrutiny from green groups. The bank said when choosing to withdraw its investment in coal miners it paid particular attention to how heavily companies were exposed to the energy markets………………………………………..Full Article: Source

Adani, Whitehaven, Peabody sold by Norway

Posted on 17 March 2015 by VRS  |  Email |Print

Whitehaven Coal, America’s Peabody Energy and China’s Yanzhou Coal Mining are among a slew of coal mining and power companies dumped by Norway’s giant sovereign wealth fund during 2014. The divestments also include India’s Adani Power, which wants to build a giant coal mine in Queensland’s Galilee Basin, and large numbers of coal companies in developing India and Indonesia.
Norges Bank, manager of the $US850 billion Norwegian Government Pension Fund, said last month it made the divestments after intensfying its scrutiny of the pollution performance of sustainability of the coal industry and the wider mining sector………………………………………..Full Article: Source

Formula 1 owner and Singapore fund weighs Center Parcs deal

Posted on 17 March 2015 by VRS  |  Email |Print

Formula One owner CVC Capital partners and Singapore’s sovereign wealth fund GIC have launched a joint bid of around £2.5bn for leisure group Center Parcs. The pair are one of several parties circling the group after its private equity owner Blackstone said it was considering an ownership overhaul yesterday, including “private or public equity or debt capital markets”.
Abu Dhabi Investment Authority is also said to be interested in joining the bid with CVC and GIC, while Carlyle, the co-owner of RAC, is also said to be considering an offer. Center Parcs is run by Martin Dalby, who has been its chief executive since 2000. Blackstone took over the company in 2006………………………………………..Full Article: Source

Sovereign wealth a major GCC asset

Posted on 17 March 2015 by VRS  |  Email |Print

Despite the sharp decline in oil prices, especially during the second half of 2014, the GCC countries own huge sovereign wealth. It is remarkable that the wealth of Gulf sovereign wealth funds increased during the course of the year. According to Sovereign Wealth Fund Institute, which monitors sovereign wealth, sovereign wealth funds have registered steady growth during the past few years.
Oil wealth accounts for around 60 percent of global sovereign wealth. Based on the institute’s statistics, the value of sovereign wealth at present is around $7,111bn, rising from $7,057bn, $6,831bn, and $6,609bn in December, September, and June of 2014, respectively. This marks steady growth in the value of sovereign wealth during the oil price fall, which indicates investments outside the oil sector………………………………………..Full Article: Source

Wealth funds eye GBP2.5bn Center Parcs

Posted on 16 March 2015 by VRS  |  Email |Print

Singapore and Abu Dhabi’s sovereign wealth funds are thought to be among a group of institutions considering bidding for the holiday village operator Center Parcs. Blackstone, the American buyout group that has owned Center Parcs since 2006, has invited bids as it looks to offload the business.
The Abu Dhabi Investment Authority and GIC, the Singaporean sovereign wealth fund, are both reportedly interested in a bid for the company, which is valued at £2.5bn. Private equity groups including RAC owner Carlyle and Formula One owner CVC are also said to be looking………………………………………..Full Article: Source

Gulf sovereign wealth funds punching above their weight

Posted on 16 March 2015 by VRS  |  Email |Print

According to the Sovereign Wealth Fund (SWF) Institute, GCC-primarily based SWFs have a total of $two.six trillion (Dh9.54 trillion) in assets — about 37 per cent of total SWF assets worldwide. Close to 80 per cent of SWF assets in GCC states are accounted for by three main players — the Abu Dhabi Investment Authority with $773 billion, foreign holdings at the Saudi Arabia Monetary Authority (SAMA) at $757 billion and the Kuwait Investment Authority with $548 billion.
By assets, Adia and Sama are the second and third biggest SWFs globally. The UAE has seven big SWFs in total: four in Abu Dhabi, 1 each in Dubai and Ras Al Khaimah, although the last is a federal fund. By quantity of funds, this is more than any other nation in the GCC and globally, second only to the US which has numerous smaller sized-sized state-level SWFs………………………………………..Full Article: Source

Norway’s oil fund to sell European bonds, buy real estate in 2015

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund will continue to sell down its European government debt portfolio and may spend all of its new cash inflow in 2015 on real estate investments, Chief Executive Yngve Slyngstad said on Friday.
“We are not enthusiastic about investing in European government bonds,” Slyngstad told Reuters on the sidelines of a press conference. “This year it may we be that we are using more than the inflow in real estate investment, so as such, yes, we’ll be selling other assets… European government bonds.”……………………………………….Full Article: Source

Norway’s Sovereign-Wealth Fund Reduces Exposure to Europe

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s sovereign-wealth fund, the world’s biggest, reduced its exposure to Europe to below 40% of its value last year, to balance risks and take advantage of growing markets elsewhere—adding that it has been allowed to invest more in China.
“The big picture is that we are where we want to be, strategically,” Yngve Slyngstad, chief executive of Norges Bank Investment Management, told The Wall Street Journal in an interview Friday. “We are less exposed to Europe in general, and what happens in Europe, and more exposed to the global economy.”……………………………………….Full Article: Source

Biggest Wealth Fund Loads Up on Spanish Bonds as Part of QE Bet

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund, the world’s biggest, has bought up Spanish government bonds in anticipation that European Central Bank debt purchases will drive up their value.
Holdings of Spanish government bonds rose by 67 percent to 46.7 billion kroner ($5.7 billion) in 2014, Norges Bank Investment Management said in its annual report on Friday. NBIM lowered its exposure to Spanish covered bonds after their valuation benefited from ECB purchases, Chief Executive Officer Yngve Slyngstad said………………………………………..Full Article: Source

Norway’s giant fund increases stake in oil and gas companies to £20bn

Posted on 16 March 2015 by VRS  |  Email |Print

The world’s richest sovereign wealth fund increased its stake in major oil and gas companies to £20bn in 2014, disappointing campaigners who argue it should continue to sell off its investments in the fossil fuels that drive climate change. Norway’s Government Pension Fund Global (GPFG), which rose to £531bn in total, revealed in February that it had shed 32 coal mining companies due to concerns that action on global warming would cut their value.
Analysis by the green NGO Future In Our Hands of official data released on Friday shows the fund holds financial stakes in 90 of the top 100 oil and gas companies, as ranked by the amount of carbon in their reserves………………………………………..Full Article: Source

Norway oil fund backs US board appointments push

Posted on 16 March 2015 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund has thrown its weight behind the push for shareholders in US companies to be allowed to propose their own candidates for boards of directors.
Norway’s $860bn oil fund on Friday published a position paper on so-called proxy access, which gives shareholders a formal right to propose their own director candidates alongside those named by the current board, writes Richard Milne, Nordic Correspondent. The fund said: A confident, well-functioning board will not fear the right of proxy access. We will not be supportive of directors who seek to undermine shareholder efforts to introduce proxy access rights………………………………………..Full Article: Source

Russia seeing ’surge’ of investment from China

Posted on 16 March 2015 by VRS  |  Email |Print

A slew of Chinese companies are investing in Russia, according to the CEO of Russia’s sovereign wealth fund, who said it was helping to negate the void caused by international sanctions.
Speaking at the Egypt Economic Development Conference (EEDC) in the resort of Sharm El-Sheikh, Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), underlined the importance of China’s relationship with Russia………………………………………..Full Article: Source

GCC SWF’s can absorb shocks from oil volatility

Posted on 16 March 2015 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) in Gulf Cooperation Council (GCC) countries are functioning as both diversification engines and shock absorbers during times when oil prices fall, according to Bruno Daher, chief executive officer of Credit Suisse in the Middle East and the Indian subcontinent.
The funds were created to provide future generations with a safety cushion, given the heavy reliance GCC economies have on oil. When oil prices are high, governments generate strong fiscal surpluses that are channelled into SWFs. But when prices fall below the fiscal budget break-even oil price, governments often dip into their reserves to fund the deficit………………………………………..Full Article: Source

SWFs Team Up on Big Deals

Posted on 16 March 2015 by VRS  |  Email |Print

Sovereign wealth funds have been collaborating on some massive deals this week. On Tuesday we learned that a consortium of investors — reported to include the Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC, as well as Dutch pension fund PGGM and London-based private equity firm TDR Capital — was preparing a $3 billion bid for Netherlands-based car-leasing company LeasePlan Corp.
ADIA has a history of teaming up with other sovereign wealth funds on innovative deals, and seems to be developing a particularly close relationship with GIC: the two funds are also rumored to be preparing a joint $7 billion bid alongside other investors for a Swedish electricity distribution business, one of several big European infrastructure deals that sovereign wealth funds are getting involved in………………………………………..Full Article: Source

Twin ghosts haunt Malaysia’s sovereign fund

Posted on 13 March 2015 by VRS  |  Email |Print

Malaysia’s 1MDB faces a daunting task. The six year-old sovereign fund was set up to finance big national projects but expanded too fast, took on heavy debts and is now at the centre of a growing controversy. An ambitious restructuring brings both political and financial risks. The fund which counts Prime Minister Najib Razak as chairman of its board of advisors has pledged to dismantle itself following a strategic review led by new chief executive Arul Kanda.
It plans to stop making new investments and raise cash through an initial public offering of Malaysia’s second largest independent power producer. Selling unused land and finding equity partners for real estate projects that include a new financial centre in Kuala Lumpur and a development built around the terminus for a planned high-speed rail link with Singapore should bring in additional funds………………………………………..Full Article: Source

GIC part of PGGM-led consortium in $3.2b LeasePlan deal

Posted on 13 March 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC is part of the consortium led by PGGM, the Dutch public sector pension fund, that is in talks to buy the world’s largest vehicle-leasing business from Volkswagen in a deal worth estimated around €3 billion ($3.2 billion), Sky News said in report.
The report said that the funds have been in talks with Volkswagen ‘for several weeks now’ to acquire the Netherlands-based LeasePlan, and added the consortium also included Abu Dhabi Investment Authority (ADIA) and London-based TDR Capital. Earlier this week, LeasePlan announced that it was in talks with potential investors for diluting its stake, without disclosing additional details………………………………………..Full Article: Source

Sovereign Fund Looks to Emerging Markets

Posted on 13 March 2015 by VRS  |  Email |Print

China’s $653 billion sovereign-wealth fund is looking to invest more in emerging markets, according to an infrastructure-investing official at the fund, China Investment Corp.
CIC, which has made several high-profile investments in the U.S. and Europe in recent years, is targeting emerging countries where there is less competition, more opportunity to tap growth and a greater need for capital, the executive said………………………………………..Full Article: Source

Super funds lament lack of local infrastructure opportunities

Posted on 13 March 2015 by VRS  |  Email |Print

Industry super funds have highlighted a lack of local infrastructure opportunities that is driving them to look offshore as their jointly owned fund manager IFM Investors spent $7.2 billion buying a US toll road out of bankruptcy. In its biggest equity investment to date, IFM Investors paid out banks and hedge funds that controlled the Indiana Toll Roadway, formerly owned by Macquarie Group and Spain’s Cintra.
The 253km toll road linking the US Midwest to Chicago is the latest in a string of offshore purchases by IFM, including debt and equity in a US liquefied natural gas export terminal development, a US east coast oil pipeline, a stake in the Vienna Airport in Austria and the Manchester Airports Group in Britain………………………………………..Full Article: Source

Russia’s well for corporate bailouts appears to be running dry

Posted on 12 March 2015 by VRS  |  Email |Print

Facing Western sanctions and low oil prices, Russian companies are lining up for subsidies from the government. But the demand for bailouts is quickly outstripping the supply of money, raising the prospect of an economic crisis here if the funds run out. “Quite a large number of companies have access to no other source of funding,” said Vladimir Tikhomirov, the chief economist at BCS Financial Group.
But the sovereign wealth fund, the National Wellbeing Fund, might not have enough to cover their needs. The fund had $75 billion in reserves at the beginning of the month. About a quarter of the money is held in illiquid assets, so it can’t be parceled out for the bailout program. Some of the money is also allocated for infrastructure. In all, the illiquid assets, the infrastructure works and bailout requests amount to at least $82 billion………………………………………..Full Article: Source

SWFs’ Hedge Fund Portfolios Top Peers — With Room to Grow

Posted on 11 March 2015 by VRS  |  Email |Print

Sovereign wealth funds allocate just a sliver of their assets to hedge funds, according to a major new survey. That’s still enough make them big-time industry investors. State-owned investors are stingy when doling out money to hedge funds, allocating far less on a percentage basis than public or private pensions. Even so, given their vast scale, the amount they do invest is sufficient to make their hedge fund portfolios bigger than those of any of their institutional peers on an absolute basis.
That seeming curiosity is one finding from Deutsche Bank’s Thirteenth Annual Alternative Investment Survey. The bank in December canvassed 435 global hedge fund allocators who together manage or advise $28.2 trillion in assets and $1.8 trillion in hedge fund assets………………………………………..Full Article: Source

Russia’s Well for Corporate Bailouts Appears to Be Running Dry

Posted on 10 March 2015 by VRS  |  Email |Print

With the economy flailing, the Russian government set up a corporate bailout program last year, tapping one of the country’s sovereign wealth funds. Almost immediately, companies started applying. The state-owned oil giant Rosneft has requested $21.3 billion. Gazprom, the dominant natural gas player, has asked for $3.2 billion for a subsidiary.
The list goes on: Russia’s railroad monopoly, which is also the largest employer in the country; an owner of Moscow’s airports; a venture capital firm investing in nanotechnology; and a company exporting Russian nuclear power plants. But the sovereign wealth fund, the National Wellbeing Fund, might not have enough to cover their needs. The fund had roughly $75 billion in reserves at the beginning of the month………………………………………..Full Article: Source

Korean and Dubai SWFs pen landmark deal

Posted on 09 March 2015 by VRS  |  Email |Print

The sovereign wealth funds (SWFs) of Korean and Dubai have signed an agreement that will see them jointly invest in opportunities around the world, in a rare case of two such institutions opting to directly team up. In a statement, the Investment Corporation of Dubai (ICD), which manages about US$70 billion, said it had signed a memorandum of understanding (MoU) with the Korea Investment Corporation (KIC), which has about $85 billion in assets.
The ICD said that the MoU “facilitates communication between the two organisations, while empowering them to jointly explore investment opportunities in the United Arab Emirates (UAE), South Korea and other countries”………………………………………..Full Article: Source

Korea, Qatar to bolster economic partnership

Posted on 09 March 2015 by VRS  |  Email |Print

Leaders of South Korea and Qatar agreed to expand cooperation in infrastructure, investment, energy and medical services during a summit on Sunday, an event expected to open business opportunities for Korean firms in the Gulf state, the host of the 2022 FIFA World Cup.
The two sides also agreed to make joint investments in global markets. Qatar Investment Authority and Korea Investment Corporation have agreed to jointly establish a fund worth $2 billion for this purpose, they said. The Qatari agency also expressed its interest in six projects in Korea, raising the possibility that the Gulf state would start making substantial investments in Asia’s fourth-largest economy. QIA ranks ninth in terms of the asset size. It currently holds about $256 billion worth of assets, according to officials………………………………………..Full Article: Source

Nigeria: Where Are We?

Posted on 09 March 2015 by VRS  |  Email |Print

UAE, Norway, Brazil among others have built up their Sovereign Wealth Funds to secure the economic future of their nations and have done so by ensuring very low corruption in their oil and gas sectors. The UAE has a sovereign wealth fund to the tune of $ 817bn; it exported its first cargo of crude in 1962, it’s the 7th largest oil-producing nation but has so diversified its economy that oil now contributes only about 30% of its GDP.
Brazil a developing nation like Nigeria made concerted efforts to reduce its oil imports from 70% to practically nothing. Brazil moved from a debt –ridden nation status to become World 6th largest economy and an international net creditor, it built its sovereign wealth fund of $5.6bn from non- commodity sources which it established in 2008 to cushion the economy from future shocks………………………………………..Full Article: Source

Future Fund goes haute couture, investing in fashion website Moda Operandi

Posted on 06 March 2015 by VRS  |  Email |Print

The Future Fund is flexing its muscles as one Australia’s largest venture capital investors, tipping funds into a high-end fashion website as it seeks to take more direct stakes in promising technology start-ups.
The nation’s $109 billion sovereign wealth fund has been revealed as a late-stage investor in the website Moda Operandi in a deal that closed late last year. Moda Operandi was founded in 2010 in New York City and allows women to pre-order the latest high-end fashion trends straight off the runways of Paris, New York and Milan - and the red carpets of Los Angeles………………………………………..Full Article: Source

China CIC Sets Up Direct Investment Unit to Boost Efficiency

Posted on 06 March 2015 by VRS  |  Email |Print

China Investment Corp., the nation’s $653 billion sovereign wealth fund, set up a company in January to focus on direct equity investments, a senior executive said.The new unit, which will integrate CIC’s existing direct investment operations, will seek to work with Chinese companies looking for overseas investment opportunities, Zhao Haiying, a member of executive committee of the Beijing-based fund, said in an interview.
The establishment of CIC Capital will help the fund improve the efficiency of its direct investments, Zhao said in Beijing. CIC’s returns on its overseas portfolio dropped last year amid “complicated” global economic conditions, she said, without being specific………………………………………..Full Article: Source

POSCO to Accelerate Entry to Middle East Partnering with Saudi Arabia’s Sovereign Wealth Fund

Posted on 06 March 2015 by VRS  |  Email |Print

POSCO is to forge a comprehensive partnership with Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, in many areas including the construction and automobile industries. POSCO Chairman Kwon Oh-joon, who has been a member of an economic mission accompanying President Park Geun-hye on her trip to the four Middle Eastern countries, met with PIF Secretary General Abdulrahman Almofadhi and signed a Memorandum of Understanding (MOU) on March 4.
Under the agreement, the PIF will invest more than US$1 billion (1.1 trillion won) into POSCO Engineering & Construction, which possess construction technologies for new cities, railways, and infrastructure. It will also consider establishing a joint venture with POSCO to proceed with joint projects in the social overhead capital (SOC) sector and automobiles………………………………………..Full Article: Source

Dubai and South Korean sovereign wealth funds in landmark cooperation deal

Posted on 05 March 2015 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD), the government investment group, has struck a landmark deal with the sovereign wealth fund of South Korea to cooperate on financial opportunities around the world. The deal – signed in Dubai – involves ICD and Korea Investment Corporation (KIC) developing a platform that “facilitates communication between the two organisations, while empowering them to jointly explore investment opportunities in the UAE, South Korea and other countries”, ICD said.
ICD holds valuable stakes in assets such as Emirates Airline, Emirates NBD, and the Dubai Electricity and Water Authority. It has assets valued at US$160 billion, according to a bond prospectus issued last year………………………………………..Full Article: Source

Exec reveals how Brookfield, Qatar conquered Canary Wharf

Posted on 05 March 2015 by VRS  |  Email |Print

Brookfield Property Partners’ chief executive has lifted the lid on the three-month long battle for Canary Wharf, which culminated in the largest UK property deal for a decade. Canada’s Brookfield and the Qatar Investment Authority (QIA), the state’s sovereign wealth fund, first launched their £2.6bn bid for Songbird, the estate’s owner, in November.
But, if it was be successful, the pair would need to get one of Songbird’s three major shareholders on board. This meant they needed China Investment Corporation, Morgan Stanley or New York billionaire Simon Glick. “Going into this, we knew China Investment Corporation and Morgan Stanley would be sellers. Simon Glick was a bit of an unknown,” Ric Clark, chief executive of Brookfield, told the Wall Street Journal………………………………………..Full Article: Source

Saudi Arabia sovereign fund to invest in POSCO E&C

Posted on 05 March 2015 by VRS  |  Email |Print

Public Investment Fund, Saudi Arabia’s sovereign wealth fund, is forecast to take a big stake in POSCO Engineering & Construction. “The deal is included in a comprehensive partnership agreed between PIF and POSCO,’’ a company official said on Wednesday.
Both parties signed a memorandum of understanding to form a joint partnership at a meeting on the sidelines of President Park Geun-hye’s visit to Saudi Arabia with leaders of South Korean businesses. The deal is valued at around 1.5 trillion won ($1.36 billion), as there is speculation that the steelmaker is seeking to sell a 40 percent stake in its construction arm to raise funds to improve its financial health, capital market watchers said………………………………………..Full Article: Source

JTC, Temasek to merge urban solutions units

Posted on 05 March 2015 by VRS  |  Email |Print

JTC Corporation, the Singapore government agency responsible for the development of industrial infrastructure, and Singapore investment company Temasek have entered into an agreement to merge four of their operating subsidiaries into an integrated platform for sustainable urban development.
Subject to relevant regulatory approvals, the merger between Ascendas Pte Ltd, Singbridge Group Pte Ltd, Jurong International Holdings Pte Ltd (JIH), and Surbana International Consultants Holdings Pte Ltd is expected to be completed by the first half of 2015. JTC and Temasek began exclusive talks to explore the merger in September 2014. The merged group will be jointly owned by JTC and Temasek through a 49:51 partnership………………………………………..Full Article: Source

SWC Talks to Panama’s SWF on New Equity Strategies

Posted on 05 March 2015 by VRS  |  Email |Print

The Panama Canal is a renowned feat of engineering — but by the early 2000s its century-old infrastructure was creaky, and it was struggling to meet demand. In 2006, the Panamanian government started a project to renovate the canal and double capacity. Anticipating a big increase in revenue, Panama in 2012 created a new sovereign wealth fund, the Fondo de Ahorro de Panam’a (FAP) , to collect and manage future proceeds from the widened waterway.
Abdiel Santiago, technical secretary of the FAP, is responsible for day-to-day management of the fund. FAP inherited a $1.3 billion portfolio of cash and government bonds from an earlier investment vehicle, and Santiago is implementing a more ambitious strategy that will add stocks and corporate bonds to the fund’s portfolio. He spoke to the Sovereign Wealth Center’s David Evans about how FAP is sifting pricey markets for opportunities amid record low yields. The transcript is edited for grammar, space and context………………………………………..Full Article: Source

Norway Pushed to Review Oversight of World’s Biggest Wealth Fund

Posted on 04 March 2015 by VRS  |  Email |Print

Norway’s $880 billion sovereign wealth fund is facing new calls for tighter oversight as the government prepares its annual strategy document. Labor, Norway’s largest political party, wants to use the process to reassess the supervision framework as the fund’s rapid growth and expanding investment universe may require “more comprehensive management,” said Torstein Tvedt Solberg, who sits on parliament’s Finance Committee.
Tvedt Solberg said the fund’s ambitions to become a more active investor and expand into new assets add pressure to the oversight structure. “There’s a need to do a thorough review of this system,” he said……………………………………….Full Article: Source

Dubai to build $1bn financial zone development

Posted on 04 March 2015 by VRS  |  Email |Print

Dubai’s sovereign wealth fund is to build a $1bn development in the heart of the emirate’s financial district, the first new construction project there since the real estate crash of 2008. The development, next to the core cluster of Dubai International Financial Centre buildings, is also the first project by a joint venture between Investment Corporation of Dubai and Brookfield, the Canadian asset manager.
ICD Brookfield Place is a vote of confidence from the government in continued growth in its financial centre amid increasing competition from neighbouring hubs, including a new free zone in the richer emirate of Abu Dhabi……………………………………….Full Article: Source

MAS turnaround takes off with Khazanah’s $603m boost

Posted on 04 March 2015 by VRS  |  Email |Print

Sovereign wealth fund Khazanah Nasional said yesterday it will kick-start the immensely challenging task of turning around flag carrier Malaysia Airlines (MAS) with a RM1.6 billion (S$603 million) injection and cost savings through contract reviews.
MAS has been badly hurt financially after the disappearance of Flight MH370 on March 8 last year, and the shooting down of MH17 over Ukraine four months later. Both disasters prompted some travellers to avoid MAS. Its last reported quarter (July to September last year) showed planes were 11.3 per cent less full compared to the number a year ago……………………………………….Full Article: Source

Temasek faces new normal as Singapore eyes funds

Posted on 04 March 2015 by VRS  |  Email |Print

Temasek Holdings’s long-term investing strategy will have to include more short-term and liquid assets after the Government opened up the option to draw more funds from the state-owned investment company.
Singapore’s Government is “now ready” to include part of Temasek’s capital gains in its annual budget as the country spends more on its subway network, airport, education and social security to support an ageing population, Finance Minister Tharman Shanmugaratnam said in his Budget Statement on Feb 23……………………………………….Full Article: Source

Kuwait sovereign fund turning its focus from US to EU investments

Posted on 03 March 2015 by VRS  |  Email |Print

The Kuwait Investment Office (KIO), the London branch of Kuwait’s sovereign wealth fund, is gradually cutting its exposure to the United States in favour of Europe, its chief executive said. The KIO a unit of the Kuwait Investment Authority (KIA), is boosting its investments in Europe because of the bond-buying programme in euro zone countries known as quantitative easing (QE), which is expected to flood the 19-member currency union with liquidity and inflate asset prices.
The KIA manages US$548 billion in assets and is the world’s sixth largest sovereign wealth fund, according to the Sovereign Wealth Fund Institute. “This year we are starting to implement an overweight for the European markets and gradually decreasing our overweight to the US markets,” said Osama Al Ayoub………………………………………..Full Article: Source

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