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Abu Dhabi fund IPIC says it didn’t receive billions in payments sent by Malaysia fund 1MDB

Posted on 12 April 2016 by VRS  |  Email |Print

The mystery over who controlled a British Virgin Islands-registered company that received $3.5 billion from Malaysia’s scandal-tainted state fund 1MDB deepened on Monday when a company in the Middle East with an almost identical name said the BVI firm did not belong to it.
Abu Dhabi’s sovereign wealth fund, International Petroleum Investment Co. (IPIC), and its subsidiary Aabar Investments PJS said in a joint statement the BVI firm with an almost identical name, Aabar Investments PJS Ltd., “was not an entity within either corporate group.”……………………………………….Full Article: Source

Mid-East company denies links to 1MDB

Posted on 12 April 2016 by VRS  |  Email |Print

A Middle Eastern company has denied any links to a British Virgin Islands (BVI)-registered firm with a similar name that had received US$3.5 billion (S$4.7 billion) from troubled Malaysian investment firm 1Malaysia Development Berhad (1MDB).
Abu Dhabi’s sovereign wealth fund, International Petroleum Investment Co (IPIC), and its subsidiary Aabar Investments PJS (Aabar), said in a joint statement the BVI firm that received Malaysia’s money, Aabar Investments PJS Ltd (Aabar BVI), “was not an entity within either corporate group”………………………………………..Full Article: Source

Envoy seeks Abu Dhabi funds for British cities

Posted on 12 April 2016 by VRS  |  Email |Print

Jim O’Neill, the Goldman Sachs economist who became a British Treasury minister, completed a doctoral thesis arguing that Opec oil producers did not put their savings to good use. Gulf sovereigns paid scant attention to rates of return, he wrote – and worse, made investment decisions on an “ad hoc basis”.
But now, 23 years later, Mr O’Neill is visiting the UAE to ask its sovereign wealth funds to invest their savings into Britain’s post-industrial northern cities, as part of an infrastructure initiative the UK government calls the “Northern Powerhouse”. The Abu Dhabi Investment Authority (Adia), for example, holds a significant property portfolio in London as well as stakes in hotels and UK utilities………………………………………..Full Article: Source

Sovereign wealth funds like what they see in U.S. middle market

Posted on 12 April 2016 by VRS  |  Email |Print

Sovereign wealth funds manage staggering sums of money. But that doesn’t mean they’re so big they only invest with the likes of Blackstone Group, Carlyle Group and Kohlberg Kravis Roberts & Co.
From the New Zealand Superannuation Fund to the Saudi Arabia General Organization for Social Insurance, from the Alaska Permanent Fund Corporation to the Abu Dhabi Investment Authority, sovereign wealth funds are channeling money into U.S. mid-market funds………………………………………..Full Article: Source

IMDB scandal-linked company closed down

Posted on 11 April 2016 by VRS  |  Email |Print

A tax haven company linked to a $450 million takeover bid involving central players in Malaysia’s 1MDB scandal has been quietly shut down, documents show. The Seychelles-registered company, PetroSaudi International (PSI), was used by Saudi businessman Tarek Obaid to buy Malaysian investment banking conglomerate UBG from its shareholders in 2010 in a transaction dubbed “Project Unicorn”.
One of the main beneficiaries of the deal was the Abu Dhabi-Kuwait-Malaysia Investment Corporation (ADKMIC), which owned more than half of UBG………………………………………..Full Article: Source

Alaska’s ongoing internal push

Posted on 11 April 2016 by VRS  |  Email |Print

Angela Rodell, chief executive of the $52 billion Alaska Permanent Fund Corporation (APFC) says increasing in-house management capability will be a priority at the fund in the coming year. “External investment will remain important, but we have become much more strategic and thoughtful about our in-house direction,” she says, speaking from APFC’s Juneau headquarters.
APFC already manages around 22 per cent of its assets internally across real estate, fixed income and infrastructure. A next step in the internal push will be to create passive and quasi-passive public equity portfolios focused on smart beta strategies………………………………………..Full Article: Source

Saudi Aramco Share Sale May Raise $106 Billion for Wealth Fund

Posted on 08 April 2016 by VRS  |  Email |Print

Saudi Arabia’s sovereign wealth fund could receive $106 billion in cash from the sale of a 5 percent stake in oil giant Aramco’s parent company, according to the Sovereign Wealth Fund Institute.
“Suitable investors in Aramco could be long-term institutional investors such as the Canadian pensions, or even Asian sovereign wealth funds,” the Las Vegas-based consultant and researcher said in a report released on Thursday. “If an Aramco deal goes through, it could be a blueprint for other Saudi state-owned entities to follow, thus, potentially increasing the cash pot of the Public Investment Fund, while enlarging domestic markets.”……………………………………….Full Article: Source

Saudi Arabian PIF may invest $40 bn more in S. Korean stocks

Posted on 08 April 2016 by VRS  |  Email |Print

South Korean stocks would benefit once a Saudi Arabian sovereign wealth fund increases its assets and adopts a more aggressive investment strategy, according to a Korean brokerage report that expects additional $40 billion from the fund would flow into the South Korean stock market starting as early as next year.
According to KDB Daewoo Securities Co. on Thursday, as the Middle Eastern country has decided to increase its sovereign wealth fund’s assets and adopt an aggressive investment strategy, tens of trillions of won worth money could flow in the Korean stock market from the country’s sovereign fund………………………………………..Full Article: Source

Khazanah frontrunner for stake in Sutures India

Posted on 08 April 2016 by VRS  |  Email |Print

Domestic private equity fund Kedaara Capital and Malaysian sovereign wealth fund Khazanah Nasional Bhd have emerged as likely buyers for a minority stake in surgical equipment maker Sutures India Pvt. Ltd, said two people familiar with the development.
The deal size is expected to be around Rs.400 crore, they said. US-based private equity fund TPG Growth owns 52% in Sutures and CX Partners holds 20%, while the rest is held by the promoters………………………………………..Full Article: Source

Sovereign wealth fund deals down 17 pct in first quarter

Posted on 07 April 2016 by VRS  |  Email |Print

Sovereign wealth funds made $19.2 billion worth of overseas acquisitions in the first quarter, down almost 17 pct from the previous quarter but rebounding from $4.8 billion a year earlier. Thomson Reuters data showed that SWFs, which invest windfall revenues from oil and other commodities for future generations, were involved in 46 deals, down five from the previous quarter.
Industry experts said this did not represent a meaningful drop off. “The number of deals is a little more indicative than the value, which can fluctuate depending on what’s on offer,” said Elliot Hentov, head of policy and research in the official institutions group at State Street Global Advisors………………………………………..Full Article: Source

Norway Proposes Changes to Sovereign-Wealth Fund Targets

Posted on 06 April 2016 by VRS  |  Email |Print

Norway’s government proposed on Tuesday to remove the 5% real-estate target from its sovereign-wealth fund and prohibit it from investing in infrastructure. The country’s $850 billion sovereign-wealth fund, the world’s largest, is currently mandated to invest 60% of its holdings in stocks, 35% in fixed income and 5% in real estate.
Removing the real-estate target, a move which requires parliamentary approval, would leave the responsibility to Norway’s central bank, which manages the fund, to decide how much it invests in property, within a 7% limit, the government said………………………………………..Full Article: Source

How the Future Fund stays fixed on the long term

Posted on 05 April 2016 by VRS  |  Email |Print

Every day short-term decisions taken on behalf of long-term investors risk destroying value. This is a structural flaw in the investment system that long-term investment institutions – superannuation funds, insurance companies, family offices and sovereign wealth funds like the Future Fund – are increasingly focused on fixing.
The problem arises because long-term investors typically rely on a series of relationships between principals and agents to achieve their objectives. These relationships form a series of links in an investment value chain from the management of investee companies through their boards, to fund managers, to institutional funds and on to beneficiaries who are seeking to achieve long-term objectives………………………………………..Full Article: Source

China’s central bank has emerged as a key player in the nation’s stock market rescue

Posted on 05 April 2016 by VRS  |  Email |Print

Although there are many counterparts who make up the so-called “national team” of investors, the two main bodies tasked with rescuing the market are China Securities Finance Corporation, owned by China’s securities regulator, the CSRC, and Central Huijin Investment, the domestic investment wing of the nation’s sovereign wealth fund, the China Investment Corporation (CIC).
According to analysis from Goldman Sachs, these entities spent a combined 1.8 trillion yuan on share purchases between June and November last year, buying heavily in an attempt to stymie mounting market losses………………………………………..Full Article: Source

Sovereign wealth funds to collaborate with Hedge Fund Standards Board

Posted on 05 April 2016 by VRS  |  Email |Print

The global network of sovereign wealth funds has forged a relationship with the Hedge Fund Standards Board, in part to help to foster a constructive dialogue with hedge funds, and to give sovereign wealth funds a voice in the setting of hedge fund standards.
The relationship, between the HFSB and the International Forum of Sovereign Wealth Funds, will help to ensure that sovereign wealth funds are active participants in HFSB activities and in the process of setting standards for the hedge funds industry………………………………………..Full Article: Source

Saudi Arabia Post-Oil Era Fortified by PIF

Posted on 04 April 2016 by VRS  |  Email |Print

Saudi Deputy Crown Prince Mohammed bin Salman al-Saud revealed details on his future national economic plan, which is expected to be fully displayed over upcoming months. The plan aims at reducing Saudi economic oil dependence as an income source during the upcoming twenty years.
In a long conversation with Bloomberg, his Highness Prince Mohammed gave details on increasing Public investment to play a principal role in the governmental budget. His Highness explained that the steps towards increasing Public investment significance is to establish a public investment fund which includes important internal and external Saudi investments which cover Saudi Arabia’s Kingdom share in Saudi Aramco………………………………………..Full Article: Source

Libya urges UN to act to protect sovereign wealth fund

Posted on 04 April 2016 by VRS  |  Email |Print

Libya pressed the United Nations Security Council on Thursday to take urgent action to allow the managers of its sovereign wealth fund to move money between frozen accounts so the value can be protected and returns can be maximized.
Libya’s U.N. Ambassador Ibrahim Dabbashi told the council that he was “surprised” there had been no response to the government’s request last week for an exemption from U.N. sanctions for the Libyan Investment Authority so it can manage frozen assets while they remain under U.N. sanctions. Without an exemption, Dabbashi said, the council will be responsible “for all the losses recorded by the Libyan body.”……………………………………….Full Article: Source

Mirvac loses interest in Investa Office Fund

Posted on 04 April 2016 by VRS  |  Email |Print

The battle for Investa Office Fund has taken a new twist, with the interest of Mirvac Group — which last month emerged as an adviser to China’s sovereign wealth fund, China Investment Corporation, and private equity house Blackstone, on a potential tilt for the $2.5 billion trust — cooling.
Mirvac, led by Susan Lloyd-Hurwitz, had shown less interest in facilitating the play, and was instead focused on opportunities in its own office portfolio, including building two major Sydney office towers, executives said………………………………………..Full Article: Source

Authorities Investigating Malaysia’s 1MDB Fund Focusing on Bond Proceeds

Posted on 04 April 2016 by VRS  |  Email |Print

Investigators in three countries studying trail of cash from Malaysia to Abu Dhabi, offshore bank accounts. Authorities in three countries investigating a Malaysian government investment fund appear to be focusing on what happened to the proceeds of $3.5 billion in bonds sold by the fund in 2012, according to people familiar with the matter.
Investigators in the United Arab Emirates, Luxembourg and Switzerland are looking at the trail of cash from Malaysia to Abu Dhabi and to offshore bank accounts for a portion of the bond proceeds that appears to have gone missing, the people said………………………………………..Full Article: Source

Investigators believe money to finance ‘The Wolf of Wall Street’ came from a Malaysian state fund

Posted on 04 April 2016 by VRS  |  Email |Print

It took years for Leonardo DiCaprio and Marin Scorsese to make “The Wolf of Wall Street,” the 2013 adaptation of the book by former stock broker Jordan Belfort that highlighted his debauched exploits and the illegal actions that led to him going to prison for fraud.
Global investigators believe much of the movie’s $100 million budget was diverted from a Malaysian state fund that was established to spur local economic development. Investigators in two countries believe that 1Malaysia Development Bhd., or 1MDB, which was set up seven years ago by the prime minister of Malaysia, Najib Razak, moved $155 million into Red Granite Pictures, one of the production companies behind “The Wolf of Wall Street.”……………………………………….Full Article: Source

Kuwait: Cabinet rejects prosecutions in the sovereign fund probe

Posted on 01 April 2016 by VRS  |  Email |Print

The Cabinet has rejected recommendations by members of parliament to prosecute officials of its sovereign wealth fund for allegedly violating regulations in managing the country’s oil wealth, Finance Minister Anas Al-Saleh said on Wednesday evening.
“I assert my confidence in those in charge of the Kuwait Investment Authority (KIA) until proven otherwise,” Saleh told reporters after a closed meeting of parliament to discuss an investigation of the KIA’s London arm, the Kuwait Investment Office (KIO). Kuwaiti MPs travelled to London last year to probe the KIO’s operations and check whether there was enough official oversight of it………………………………………..Full Article: Source

$1 trillion wasted on unneeded coal while Future Fund considers backing Adani

Posted on 01 April 2016 by VRS  |  Email |Print

There is almost $1 trillion in the pipeline for new coal developments, even as the sector is facing structural decline, a new report from The Sierra Club, Greenpeace and CoalSwarm has revealed. And in Australia, as investors back away from Adani’s controversial Galilee Basin coal mine and superannuation companies haemorrhage members’ money on fossil fuel investments, our $118 billion sovereign wealth fund, The Future Fund, is considering bankrolling the project.
There are too many coal plants in the world, but the fossil fuel industry is intent on building more anyway. That’s the contention of a new report released this week by The Sierra Club, Greenpeace and CoalSwarm, which estimates it would cost $981 billion to construct all the proposed coal developments in the world, even as the industry faces what many analysts say is a terminal decline………………………………………..Full Article: Source

Libya requests U.N. sanctions exemption for sovereign wealth fund

Posted on 31 March 2016 by VRS  |  Email |Print

Libya is asking the U.N. Security Council to approve a sanctions exemption for its blacklisted sovereign wealth fund to halt billion-dollar losses caused by ineffective management of frozen assets, according to a letter released on Wednesday.
The letter from Libya’s ambassador to the United Nations, Ibrahim Dabbashi, said the losses incurred at the Libyan Investment Authority (LIA) are the result of U.N. sanctions imposed in 2011 to prevent the government of former leader Muammar Gaddafi from spiriting away the country’s wealth………………………………………..Full Article: Source

Jaitley asks Australia’s sovereign wealth, pension funds to invest in India

Posted on 31 March 2016 by VRS  |  Email |Print

Promising better returns, Finance Minister Arun Jaitley today invited Australia’s sovereign wealth funds and pension funds to invest in India. During a bilateral meeting with Australian Treasurer Scott Morrison here today, Jaitley sought investments from the Future Fund, Australia’s sovereign wealth fund, as also from the Super Fund, the country’s multi-industry superannuation fund.
Jaitley also called for higher investments by Australian businesses in India, saying they can get better returns on their investments. He also said that India wants to benefit from the Australian experience in implementing GST, saying India is ready for GST rollout as hoped the new indirect taxation regime will soon become a reality………………………………………..Full Article: Source

India invites SWFs to invest in India

Posted on 30 March 2016 by VRS  |  Email |Print

India needs to further ease its business processes to boost investments, Finance Minister Arun Jaitley said Tuesday while inviting foreign sovereign wealth funds to be part of the country’s infrastructure, pension and insurance funds.
He also assured investors here that the government has resolved various legacy issues with regard to taxation and is gradually working to bring down the corporate tax rates to the global level of 25 percent from 30 percent currently………………………………………..Full Article: Source

Reports Future Fund viewed as ‘soft touch’ for Adani Funding

Posted on 30 March 2016 by VRS  |  Email |Print

Financial activist group Market Forces is calling on the Turnbull Government to clarify whether Australia’s sovereign wealth fund – the Future Fund – will be used to subsidise the controversial Adani mega-mine in the Galilee Basin. The call follows Indian media reports that Indian Finance Minister Arun Jaitley will ‘likely push for easy funding from the Australian Government and Future Fund Chair Peter Costello during his visit to Australia this week.
“Over a dozen banks worldwide have either backed away from the environmentally disastrous Carmichael mega coal mine, ruled out funding for it, or dismissed it as financially unviable”, said Market Forces Executive Director Julien Vincent………………………………………..Full Article: Source

Dexus Adds Cash Distribution to Sweeten Investa Office Fund Deal

Posted on 30 March 2016 by VRS  |  Email |Print

Dexus Property Group has sweetened its offer for Investa Office Fund, which said it wasn’t aware of a competing bid from a consortium that’s speculated to include Blackstone Group and China Investment Corp.
Dexus added a cash distribution of 7 Australian cents to its existing offer, taking the total to A$4.24 a unit or A$2.6 billion ($2 billion), Investa Office Fund said in a statement to the stock exchange Wednesday. Dexus cited a A$19 million drop in transaction costs largely due to reduced financing costs for the special distribution………………………………………..Full Article: Source

Mahmoud Kassem: Lessons learned from interviews with Abu Dhabi’s wealth fund

Posted on 29 March 2016 by VRS  |  Email |Print

Over the past two weeks, the Abu Dhabi Investment Authority (Adia), one of the world’s biggest sovereign wealth funds, gave The National unprecedented access to mark its 40th anniversary, offering interviews with several of its former and current leaders, including Hareb Al Darmaki, an adviser to the managing director and the fund’s longest-serving employee, and Jean-Paul Villain, its top strategist.
My conversations with these investment gurus provided a fascinating insight into the inner workings of a fund estimated to have as much as US$800 billion under management. They also helped to reinforce important lessons that are relevant to all investors, whether you have billions of dirhams or simply a few thousand to sock away for the future………………………………………..Full Article: Source

KKR, Chinese sovereign wealth fund reportedly hungry for Yum! China investment

Posted on 29 March 2016 by VRS  |  Email |Print

KKR & Co. and sovereign fund China Investment Corp. are among potential suitors studying investments in Yum! Brands Inc.’s Chinese business, people with knowledge of the matter said. Baring Private Equity Asia is also exploring a potential minority stake purchase, and the three funds might decide to team up for a joint investment, according to the people.
Yum is considering the sale of a 20% holding in its Chinese business, which could value the unit around $10 billion, the people said, asking not to be identified as the information is private. CIC’s Beijing press office didn’t immediately respond to an e-mail seeking comment. The Wall Street Journal reported KKR’s interest in a minority stake in Yum China earlier, citing unidentified people………………………………………..Full Article: Source

CPGI, Singapore’s GIC acquire Shakey’s PH

Posted on 29 March 2016 by VRS  |  Email |Print

Local tuna canner Century Pacific Group Inc. (CPGI) has partnered with Singapore’s sovereign wealth fund GIC Private Ltd. to acquire the Philippine franchise holder of US-based popular pizza chain Shakey’s. In a statement, CPGI said it is acquiring International Family Food Services Inc., operator of Shakey’s pizza chain in the Philippines which, in turn, is owned by the Prieto family.
Under the purchase agreement, a new entity to be owned by CPGI and GIC will acquire the majority interest of the pizza business from the Prieto family. The Prieto family, under the deal, will continue to hold a minority stake in Shakey’s………………………………………..Full Article: Source

Singapore’s GIC sovereign fund expects low US stock returns

Posted on 24 March 2016 by VRS  |  Email |Print

GIC expects below-average returns from U.S. stocks over the next five to 10 years, but the Singapore sovereign wealth fund still sees the U.S. as an important source of investment opportunities.
“The greatest strength of the U.S. is the private sector. If that continues to be the case, we are not concerned,” said Lim Chow Kiat, GIC Private Ltd’s chief investment officer. “We find a lot of investment opportunities in the U.S.,” he said. “A lot of exciting things are coming out of the private sector on a daily basis.”……………………………………….Full Article: Source

Peter Costello’s indefensible legacy

Posted on 24 March 2016 by VRS  |  Email |Print

On Friday, Peter Costello used Fairfax to tell us how handsome he is and how splendidly the Future Fund he chairs is performing. He was responding to fellow establishment figure Howard Mitchell’s comparing its returns against the Alaska Permanent Fund. The whole debate was probably a Tory setup. They do odd things like that.
Alaska’s fund is a poor model to emulate. The gold standard of sovereign wealth funds is Norway’s Government Pension Fund Statens pensjonsfond Utland, established in 1990 and worth around 900 billion Australian dollars. In early January 2014, every Norwegian became a crown millionaire, thanks to the fund. That is about 156,000 Australian dollars each. You can look at it’s market value here………………………………………..Full Article: Source

Danish bank, Norway’s sovereign fund own stakes in Romania’s oil carrier-Report

Posted on 24 March 2016 by VRS  |  Email |Print

The top 10 shareholders of the Romanian oil carrier Conpet Ploiesti include Norway’s sovereign fund, which owns 0.24% of the company, and the largest Danish lender Danske Bank, with a stake of 0.14%, according to the latest reports recorded on Bloomberg.
The Romanian state controls the company through the Energy Ministry, which has a majority stake of 58.7%, and Romanian investment fund Fondul Proprietatea has a 6% stake, reports local Ziarul Financiar. The NN private pension funds have a combined stake of 3.29% in the company and local investment fund SIF Banat-Crisana bought a stake of 1% in the carrier in the third quarter of last year………………………………………..Full Article: Source

UOB-Temasek fund lends to Thai, Malaysian startups

Posted on 23 March 2016 by VRS  |  Email |Print

United Overseas Bank, Singapore’s third-largest bank, and Singaporean sovereign wealth fund Temasek Holdings have signed two financing agreements with Southeast Asian startups through their joint venture. InnoVen Capital signed venture debt financing deals totaling $5 million with Malaysia-based KFit Holdings, an e-commerce health and fitness company and Thailand-based Pomelo Fashion.
Last year, UOB and Temasek Holdings signed a deal to provide venture debt financing of $500 million for startups in China, India and Southeast Asia. So far, they have each committed up to $100 million in paid-up capital to InnoVen to help finance Asian venture companies………………………………………..Full Article: Source

Philippines’ Century Pacific, Singapore’s GIC to buy Shakey’s Philippines

Posted on 23 March 2016 by VRS  |  Email |Print

Philippines’ conglomerate Century Pacific Group said on Wednesday it teamed up with Singapore’s sovereign investor GIC to acquire the domestic operator of the Shakey’s Pizza restaurant chain without disclosing financial terms of the deal.
The move to buy the local operation of U.S.-based Shakey’s, with close to 170 stores in the Philippines at end-2015, is the second deal between Century Pacific’s controlling Po family and GIC. In May 2014, the Singaporean fund converted a 3.38 billion pesos ($73 million) loan into a 10 percent stake in Century Pacific Food Inc, the group’s canned goods maker………………………………………..Full Article: Source

Danish bank, Norway’s sovereign fund own stakes in Romanian oil carrier

Posted on 23 March 2016 by VRS  |  Email |Print

The top 10 shareholders of the Romanian oil carrier Conpet Ploiesti include Norway’s sovereign fund, which owns 0.24% of the company, and the largest Danish lender Danske Bank, with a stake of 0.14%, according to the latest reports recorded on Bloomberg.
The Romanian state controls the company through the Energy Ministry, which has a majority stake of 58.7%, and Romanian investment fund Fondul Proprietatea has a 6% stake, reports local Ziarul Financiar………………………………………..Full Article: Source

Saudi Arabia, Egypt to sign $8bn investment deal Sunday

Posted on 22 March 2016 by VRS  |  Email |Print

Saudi Arabia’s sovereign wealth fund, Public Investment Fund PIF) will sign a preliminary agreement Sunday to invest up to 30 billion Saudi riyals ($8 billion) in Egypt’s energy, tourism, and housing sectors. The agreement will be signed by Egyptian Minister of Investment Ashraf Salman.
The planned investments are part of Saudi King Salman’s announcement made last December about the kingdom’s plans to increase investments in Egypt. Public Investment Fund is a sovereign wealth fund of the Government of Saudi Arabia. It seeks to invest through equity, loans or guarantees, and through allocations of public funds to specific projects………………………………………..Full Article: Source

UOB-Temasek JV invests US$5m in e-commerce startups from Southeast Asia

Posted on 22 March 2016 by VRS  |  Email |Print

A joint venture between United Overseas Bank (UOB) and Temasek, InnoVen Capital, on Monday announced it has signed two venture debt financing agreements valued at US$5 million with e-commerce startups in South-east Asia.
In the first quarter this year, InnoVen signed financing deals with Malaysia-based KFit Holdings, an e-commerce health and fitness company, and Thailand-based Pomelo Fashion, an e-commerce fashion company. Both companies will be using the venture debt loans, totalling US$5 million, to develop their business in the region………………………………………..Full Article: Source

Abu Dhabi fund signals committed to Brazilian investments

Posted on 21 March 2016 by VRS  |  Email |Print

Abu Dhabi state fund Mubadala Development signalled on Friday that it was committed to investments in Brazil despite political protests, economic crisis and a graft probe there. Mubadala has opened an office in Rio de Janeiro to manage and grow its Brazilian assets after restructuring a $2 billion investment in collapsed EBX Group, the fund said in a statement.
The Abu Dhabi fund launched the restructuring in early 2013 as EBX, a group controlled by former Brazilian billionaire Eike Batista, ran into severe financial difficulties. Under the restructuring, the Abu Dhabi fund received $300 million in cash plus equity stakes in former EBX companies and other international assets, Mubadala said on Friday, adding that the total value of those assets exceeded the amount of the original investment………………………………………..Full Article: Source

Azerbaijan’s Oil Fund sold $34.3 million through Central Bank’s foreign exchange auction

Posted on 21 March 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has take part in today’s foreign exchange auction of the Central Bank as a seller. According to SOFAZ, today it applied for sale of $100 million and sold $34.3 million through the CBA auction.
“Two banks were among the buyers,” SOFAZ said. At the previous auction on 16 March the Fund sold $39.1 million to eight banks through auction. SOFAZ promises to continue currency sales through CBA auctions………………………………………..Full Article: Source

Sovereign wealth funds: Australia is not Alaska

Posted on 21 March 2016 by VRS  |  Email |Print

Last weekend Harold Mitchell explored the Future Fund’s investment performance. As Australia’s sovereign wealth fund, investing over $133 billion in five different public asset funds on behalf of future generations of Australians, we welcome interest in what we do.
Mitchell applauds the creation of the Future Fund in 2006 as a means of helping to offset the pressures of an ageing population and strengthening Australia’s long-term financial position. Given its long-term purpose, it is right for last week’s commentary to focus on the long-term performance of the portfolio………………………………………..Full Article: Source

Norway’s deal with EU could be a model for Britain

Posted on 18 March 2016 by VRS  |  Email |Print

Yet many believe Norway, which has grown rich thanks to oil and gas before the recent price fall, is better off outside the EU. The Oslo government has built a vast $835-billion (U.S.) sovereign wealth fund, the world’s biggest. It holds about $160,000 for each of Norway’s 5.2 million people.
“It would be a great inspiration if Britain leaves,” said Kathrine Kleveland, head of Norway’s “No to the EU” group. Still, the issue is on the back burner for now because of the two “No” votes. And no poll since 2005 has shown a majority in favor of EU membership………………………………………..Full Article: Source

Norway’s $834 billion wealth fund defends active management strategy

Posted on 17 March 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, defended on Wednesday its strategy of chasing returns greater than market benchmarks, arguing the benefits outweighed the associated risk and cost. The $834 billion fund, worth more than twice the country’s annual gross domestic product, is invested in foreign stocks, bonds and real estate to share the wealth from oil and gas production with future generations.
Managed by a unit of the central bank, the fund aims to beat global equity and fixed income indexes by a quarter percentage point a year by taking on added risk. That includes picking stocks it expects to deliver long-term returns………………………………………..Full Article: Source

Norway taps rainy day fund, will Texas?

Posted on 17 March 2016 by VRS  |  Email |Print

Norway’s conservative government has tapped the Scandinavian nation’s $819 billion sovereign wealth fund for the first time since it’s creation 20 years ago, citing lower tax revenues and an economy struggling with low oil prices.
Norway started pouring oil revenues into a rainy day fund in 1996 as a way to cushion the blow when the nation’s oil runs out. The account is now the largest sovereign wealth fund in the world, even after the government pulled $781 million out in January………………………………………..Full Article: Source

Olam eyes potential of Africa’s growing demand

Posted on 17 March 2016 by VRS  |  Email |Print

Olam International, one of the world’s largest food traders, is seeking more investments in Africa as it looks to benefit from the continent’s increasing appetite for everything from instant noodles to lollipops.
The agribusiness giant controlled by Temasek Holdings is already established in 24 sub-Saharan countries. It aims to expand its market share across a continent rich in agricultural resources including coffee and cocoa………………………………………..Full Article: Source

Asciano backs US$6.8b takeover

Posted on 16 March 2016 by VRS  |  Email |Print

Astralian logistics giant Asciano said it was recommending a US$6.8 billion takeover deal between two rival local and international suitors, breaking up the company’s ports and rail assets. Yesterday’s announcement ended a bidding war for Asciano between a consortium led by Canada’s Brookfield Infrastructure Group and a group led by Australia’s Qube that includes a Chinese sovereign wealth fund.
Qube will split the ports business with Brookfield, whose consortium members include government wealth fund the Qatar Investment Authority. Another grouping, which includes China’s CIC Capital Corp, Singapore’s state investment fund GIC, the Canada Pension Plan Investment Board, investment group Global Infrastructure Partners, and the British Columbia Investment Management Corp, will acquire the rail operations………………………………………..Full Article: Source

Qatar-backed consortium completes $6.8bn takeover of Australian freight giant Asciano

Posted on 16 March 2016 by VRS  |  Email |Print

Australia’s Asciano Ltd on Tuesday agreed to a A$9.1 billion ($6.8 billion) buyout by two global consortia after a seven-month bidding war for the port and rail giant, although doubts persist over anti-trust and foreign ownership issues.
In its third takeover endorsement in nine months, Australia’s largest ports and rail operator said it now supported a joint bid from local rival Qube Holdings Ltd, Canada’s Brookfield Asset Management Inc and a host of backers from China to Qatar………………………………………..Full Article: Source

Azerbaijan’s Oil Fund sold $11.9 million through Central Bank’s foreign exchange auction

Posted on 15 March 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has appeared today on the foreign exchange auction of the Central Bank as a seller. According to SOFAZ, today it has applied for sale of $150 million and sold $11.9 million through the auction.
“Nine banks were among the buyers,” SOFAZ said. At the previous auction on 11 March the Fund sold $68.4 million to 25 banks through auction. SOFAZ promises to continue selling currency through the CBA auctions………………………………………..Full Article: Source

Alibaba Affiliate Cainiao Attracts GIC, Temasek as Investors

Posted on 15 March 2016 by VRS  |  Email |Print

Alibaba Group Holding Ltd.’s delivery affiliate attracted investments from Malaysia and Singapore, including Temasek Holdings Pte, in its first round of external fundraising since its creation in 2013.
Zhejiang Cainiao Supply Chain Management Co. also gained funding from GIC Pte. and Khazanah Nasional Bhd to bankroll its expansion, according to an e-mailed statement on Monday. The company didn’t specify the amount raised or its valuation………………………………………..Full Article: Source

Sovereign wealth funds to invest $50 bn in India’s infra

Posted on 15 March 2016 by VRS  |  Email |Print

Global pension funds and sovereign wealth funds may invest up to $50 billion in India’s infrastructure sector over the next five years, a report by investment bank Ambit Corporate Finance and the UK’s City of London said.
The estimate comes at a time when long-term global investors are looking to invest in new geographies and promoters of many infrastructure companies are looking to sell assets. India has attracted the attention of sovereign wealth funds, global pension funds and insurance firms looking for a majority stake in operational infrastructure assets. Such investors could come to the rescue of Indian firms struggling with huge debts and a liquidity crunch………………………………………..Full Article: Source

Norwegian oil fund dumps Pimco and BTG Pactual

Posted on 14 March 2016 by VRS  |  Email |Print

Norway’s $830 billion oil fund has severed ties with Pimco, the bond house, and BTG Pactual, the Brazilian bank, as part of an overhaul of how the world’s largest sovereign wealth fund is run. The oil fund, which is considered one of the world’s most prestigious investors and which has become a prized client for big asset management companies, has invested with Pimco since at least 2013.
The sovereign fund pulled its money from the Californian bond house last year after widespread investor fears took hold about underperformance at some of Pimco’s largest fixed income funds and the acrimonious departure of its founder, Bill Gross, in late 2014………………………………………..Full Article: Source

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