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Abu Dhabi Investment Authority, General Growth Properties Inc’s insider Sold 42,489 Shares

Posted on 03 December 2015 by VRS  |  Email |Print

According to a legal document that was filled with the Washington-based Security and Exchange Commission on December 1, 2015, Abu Dhabi Investment Authority an insider in General Growth Properties Inc, made a sale of shares worth $1,097,181 USD in the public firm.
Abu Dhabi Investment Authority disposed 42,489 new shares, at average $25.8 per share. In the last 30 days, Abu Dhabi Investment Authority also sold shares that are worth $ USD. Abu Dhabi Investment Authority now has rights to 38.47 million shares or 10%+ of General Growth Properties Inc’s market cap………………………………………..Full Article: Source

BTG Pactual partners take control from jailed founder Esteves

Posted on 03 December 2015 by VRS  |  Email |Print

Founding partners in Grupo BTG Pactual SA took control of the Brazilian investment bank from jailed financier André Esteves on Wednesday in an attempt to distance the firm from the most sweeping corruption investigation in the country’s history.
The bank announced the sale of a 12 percent stake in Rede D’Or Sao Luiz SA, Brazil’s largest hospital chain, to Singapore sovereign wealth fund GIC Pte Ltd for about 2.4 billion reais ($619 million), confirming a Reuters report last week. GIC had bought a 16 percent stake in Rede D’Or in May………………………………………..Full Article: Source

Sovereign wealth fund pullback pull-back hits Aberdeen Asset Management

Posted on 02 December 2015 by VRS  |  Email |Print

The collapse in the price of oil has compounded the problems for Aberdeen Asset Management, with Europe’s third-largest listed fund house reporting its 10th consecutive quarter of net fund outflows.
The Scottish-based asset manager, which specialises in emerging market and Asian funds, has been battling with investor nervousness over the continued turmoil in those regions, but net redemptions have been exacerbated by oil-producing countries pulling money from their wealth funds to make up for a loss of export earnings………………………………………..Full Article: Source

Sovereign wealth fund pullback hits Aberdeen Asset Management

Posted on 01 December 2015 by VRS  |  Email |Print

The collapse in the price of oil has compounded the problems for Aberdeen Asset Management, with Europe’s third-largest listed fund house reporting its 10th consecutive quarter of net fund outflows. The Scottish-based asset manager, which specialises in emerging market and Asian funds, has been battling with investor nervousness over the continued turmoil in those regions, but net redemptions have been exacerbated by oil-producing countries pulling money from their wealth funds to make up for a loss of export earnings.
Aberdeen suffered net outflows of almost £13bn during the three months to the end of September, worse than analysts had expected. The company said the outflows were “compounded by a number of sovereign wealth funds reducing their market exposure in response to the low oil price”………………………………………..Full Article: Source

GIC to purchase additional 12% stake in Brazilian hospital chain for $633m

Posted on 01 December 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has entered an agreement to acquire Grupo BTG Pactual SA’s 12 per cent stake in Rede D’Or São Luiz SA, Brazil’s largest hospital chain. This increases its equity stake in the hospital chain to 28 per cent.
The consideration for this acquisition by GIC Pte Ltd amounts to almost 2.5 billion reais ($633 million), according to Reuters, which cited a source directly involved in the deal, who also claimed that an official announcement would be taking place………………………………………..Full Article: Source

Singapore Investment Fund Steps up Real Estate Acquisition

Posted on 30 November 2015 by VRS  |  Email |Print

GIC, which manages more than €95 billion of Singapore’s reserves, is “underinvested” in property and interested in transactions of scale even as it faces an increasingly difficult investment environment.
GIC has about 7% of assets in real estate, while it can invest 9% to 13%, GIC Real Estate president Goh Kok Huat said in his keynote speech at a conference organised by the Asia Pacific Real Estate Association………………………………………..Full Article: Source

1MDB: We broke even on investments in Edra

Posted on 30 November 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) said it has broken even on its investments in Edra Energy Global after it was sold to China General Nuclear Power Corporation (CGN). The sovereign fund said it will receive RM9.83 billion from the deal while CGN will take on Edra’s RM7.43 billion debt.
“Accordingly through cash receipts and debt transfer, 1MDB will achieve debt reduction of up to RM17 billion, which is well within the anticipated RM16 billion to RM18 billion range per the rationalisation plan. “Accordingly, 1MDB has essentially ‘broke even’ on its investment through an international tender process,” the state investment arm said………………………………………..Full Article: Source

1MDB tells Mahathir: Stop slamming power-plant deal

Posted on 30 November 2015 by VRS  |  Email |Print

Malaysian state investment firm 1MDB took issue with former prime minister Mahathir Mohamad yesterday, saying of the “retired and former politician” that he “has failed in his numerous attempts to politicise the 1MDB issue”.
Responding to “false allegations” by Tun Dr Mahathir about the sale of its power assets, 1MDB said the sale of Edra Global Energy will help the state investor achieve a debt reduction of RM17 billion (S$5.6 billion), allowing it to “break even” in its energy investments………………………………………..Full Article: Source

FRR moves into infra investment

Posted on 30 November 2015 by VRS  |  Email |Print

French sovereign wealth fund Fonds de Reserve pour les Retraites (FRR) is broadening its investment strategy from purely fixed-income and equity to French illiquid assets, estate.
The fund plans to invest around €2bn ($2.1bn) across the infrastructure and real estate sectors over the next two years. According to Olivier Rousseau, a member of the fund’s executive board, the scheme started to study illiquid investments last year due to the low interest………………………………………….Full Article: Source

Markets cautiously ‘optimistic’ on 1MDB’s China sale

Posted on 27 November 2015 by VRS  |  Email |Print

The market reaction on scandal-ridden 1MDB selling its power assets, Edra Global Energy, to a state-owned Chinese company has been good, said the BBC in a report. The report said that it remains to be seen whether research houses can now finally continue to upgrade their forecasts for the Kuala Lumpur Stock Exchange, stuck in the doldrums for so long following the 1MDB scandal and a combination of other negative news and events.
For the moment at least, noted the report, the ringgit for one is bucking the trend and moving up against the US dollar while the rupiah and baht continue their downward slide. The ringgit has already fallen 18 per cent against the USD, a slight improvement from the 25 per cent at the lowest so far………………………………………..Full Article: Source

GloFo Sale: Report Says Abu Dhabi Holding Talks

Posted on 27 November 2015 by VRS  |  Email |Print

Abu Dhabi sovereign wealth fund Mubadala Development Co. has held talks with potential buyers for all or part of Globalfoundries Inc. according to a Bloomberg report that cited unnamed sources. The report added that the company might fetch $15 billion or $20 billion if a deal goes ahead but did not name any potential buyers.
However, it was reported back in September that Hua Capital Management, which looks after China’s national IC investment fund, had approached Globalfoundries over possible cooperation. Abu Dhabi is reviewing its state-owned companies, including Mubadala, for potential asset sales as the emirates finances come under pressure due to the current collapse in oil prices………………………………………..Full Article: Source

Malaysia’s scandal-hit 1MDB sells energy assets for $2.3B

Posted on 26 November 2015 by VRS  |  Email |Print

Malaysia’s beleaguered sovereign wealth fund 1Malaysia Development Berhad (1MDB) has sold its energy assets for 9.83 billion ringgit ($2.3 billion) to a Chinese nuclear power supplier, in a move that should help it cut its debt burden.
As part of the deal, which is expected to be completed in February 2016, China General Nuclear Power and its subsidiaries will acquire the Edra group of companies and assume all the relevant gross debt and cash. This transaction was a major milestone in the 1MDB rationalization plan that was presented to Malaysia’s cabinet on May 29, 1MDB said in a statement………………………………………..Full Article: Source

Kazakhstan’s national companies face major restructuring

Posted on 26 November 2015 by VRS  |  Email |Print

Kazakhstani national companies will soon be facing a major restructuring. Samruk Kazyna National Wealth Fund plans to cut expenditures by 519 billion tenge ($16.9 billion) by selling non-core assets to increase the company’s value after major changes. As the national wealth fund, Samruk Kazyna is bound to conduct various social projects. Yet, to increase the return, the fund plans to get rid of a number of companies that are currently part of the fund.
Samruk-Kazyna is a sovereign wealth fund and joint stock company in Kazakhstan which owns, either in whole or in part, many important companies in the country, including the national rail (Kazakhstan Temir Zholy) and postal service (KazPost), state oil and gas company KazMunayGas, state uranium company Kazatomprom, Air Astana, and numerous financial groups………………………………………..Full Article: Source

Why Arab funds are stepping up investments in Russia

Posted on 26 November 2015 by VRS  |  Email |Print

The sovereign investment fund of Kuwait, Kuwait Investment Authority, will invest an additional $500 million in the Russian economy. On Nov. 10, it signed an agreement to that effect with the Russian Direct Investment Fund (RDIF), a special investment fund set up by the Russian government in 2011 to attract foreign investment into the fast-growing sectors of the Russian economy.
Thus, the amount of Kuwaiti investment into Russian projects will double. The Kuwaiti fund had already invested $500 million in Russia in 2012. “The RDIF is the first and only fund to have raised over $20 billion worth of long-term investment into Russia from major Middle East sovereign funds,” a RDIF spokesman told RBTH………………………………………..Full Article: Source

SWF redemptions as a 2016 risk factor

Posted on 26 November 2015 by VRS  |  Email |Print

Remember the days when SWFs were considered the saviours of the universe? The white knights of the banking crisis? The clients every asset manager wanted to have. Well, fast-forward seven years or so and they’re bullet point number seven in Morgan Stanley’s “10 Surprises for 2016″ outlook piece. A bigger risk, they add, than retail mutual fund redemptions. Who’d have thought, eh?
From banking research team (our emphasis): SWF redemptions may prove more material than retail mutual fund withdrawals – but mutual fund stress tests will be introduced due to concerns on corporate bond market liquidity driving cost creep, whilst FCA competition review will add to regulatory uncertainties for UK based asset managers………………………………………..Full Article: Source

Abu Dhabi Fund Said to Be Exploring Sale of Globalfoundries

Posted on 25 November 2015 by VRS  |  Email |Print

Abu Dhabi’s investment arm is considering a sale of all or part of chipmaker Globalfoundries Inc. as the emirate explores asset disposals amid a slump in crude oil, people familiar with the matter said.
Sovereign fund Mubadala Development Co. has held early talks with potential acquirers, the people said, asking not to be identified as the information is private. No final decision has been made and discussions could still fall apart, the people said. A transaction could value the business at $15 billion to $20 billion, the people said………………………………………..Full Article: Source

Irish SWF to withdraw billions from asset managers

Posted on 25 November 2015 by VRS  |  Email |Print

Ireland’s government will take several billion dollars out of the Ireland Strategic Investment Fund, the country’s sovereign wealth fund (SWF), over the next five years to spend on helping boost the Irish economy, the Financial Times reports.
The fund, which has $8.4 bn in investable assets, will withdraw funds from global investment managers but continue to invest with asset managers that have funds focused on Ireland and in other areas it considers will help the Irish economy, the newspaper reports, citing fund director Eugene O’Callaghan………………………………………..Full Article: Source

The Sovereign Wealth Fund Discount: Evidence From Public Equity Investments

Posted on 25 November 2015 by VRS  |  Email |Print

Among state-owned investors, sovereign wealth funds (SWFs) play an especially prominent role, with investable assets estimated at over $4 trillion and growing faster than any other institutional investor group.
The rapid rise of SWFs begs a question: can state-sponsored funds, such as SWFs, ever act as objective, commercially driven long-term global investors, managing their nation’s wealth as investment fiduciaries of their citizens? Our paper addresses this issue by studying the impact of SWF investment on firm value………………………………………..Full Article: Source

Malaysia’s 1MDB to Sell Energy Assets to China Nuclear Firm

Posted on 24 November 2015 by VRS  |  Email |Print

A Malaysian government-investment fund struggling to dig itself out of a heavy debt load sealed a $2.3 billion deal to sell a collection of energy assets to a Chinese state-owned firm. China General Nuclear Power Corp. is purchasing all of the energy assets of 1Malaysia Development Bhd., or 1MDB, for 9.83 billion Malaysian ringgit ($2.3 billion) in cash.
Those assets, known as Edra, consist of 13 power plants across five countries from Malaysia to Egypt and Bangladesh. China General Nuclear will also assume an unspecified amount of debt as part of the deal………………………………………..Full Article: Source

Khazanah, GIC, Temasek in talks for stake in Sutures India

Posted on 23 November 2015 by VRS  |  Email |Print

India-focused private equity (PE) firm CX Partners is in talks with four global PE firms to sell its 20% stake worth some Rs.400 crore in surgical equipment maker Sutures India Pvt. Ltd, according to two people familiar with the development.
Malaysian sovereign wealth fund Khazanah Nasional Bhd, Singapore’s sovereign wealth fund GIC, Temasek Holdings Pte and Baring Private Equity Asia are in talks with CX Partners to acquire the stake, said the first person. The enterprise value of Sutures is $300 million (around Rs.2,000 crore), the second person said. Both declined to be named………………………………………..Full Article: Source

1MDB Nearing Sale Of Power Assets To China/Qatar Consort

Posted on 23 November 2015 by VRS  |  Email |Print

1MDB is nearing the sale of its power assets to a consortium including Qatar’s Nebras Power and China General Nuclear Power Holding Corp, people familiar with the matter said on Friday, in a deal that would bring relief to the scandal-hit state fund.
1Malaysia Development Bhd (1MDB), currently at the centre of a political and financial scandal that has also embroiled Prime Minister Najib Razak, needs to shed assets to pare back $11 billion of debt. The people declined to disclose the deal value, but a person familiar with the matter previously told Reuters it could value the assets at about RM18 billion ($4.2 billion) including net debt………………………………………..Full Article: Source

NEC approves $150m NNLG fund for sharing by three tiers of government

Posted on 23 November 2015 by VRS  |  Email |Print

The National Economic Council rose from its monthly meeting on Thursday approving the sharing of $150 million among the three tiers of government. The money is part of the $400 million dividends paid by the Nigerian Liquefied Natural Gas. Vice President Yemi Osinbajo (SAN) chaired the meeting at the State House Council Chambers.
Briefing State House correspondents after the meeting, Governor Rauf Aregbesola of Osun State, flanked by his Enugu State counterpart, Ifeanyi Ugwuanyi, said the Council has also directed that the balance of $250 million from the NNLG dividend be invested in the Nigeria Sovereign Investment Authority………………………………………..Full Article: Source

Saudi Arabia SWF plans Fannie Mae-style mortgage company

Posted on 19 November 2015 by VRS  |  Email |Print

Saudi Arabia is working with the Boston Consulting Group to help start a state-owned mortgage firm similar to the US’s Fannie Mae and Freddie Mac as it seeks to develop a secondary market for home loans, people with knowledge of the plans said. Public Investment Fund, the kingdom’s sovereign wealth fund, will provide most of the approximately 10 billion riyals (Dh9.79 billion or $2.67 billion) of the institution’s capital, three people said, asking not to be identified because the plans aren’t public.
PIF is in the process of selecting an executive to lead the new company, according to two of the people. Saudi Arabia is seeking to boost home ownership amid one of the world’s lowest mortgage penetration rates. It approved a mortgage law in 2013 and is planning to tax undeveloped land within urban boundaries to boost the availability and affordability of homes…………………………………….Full Article: Source

Expect UAE Sovereign Fund to Invest in India Soon, says Jaitley

Posted on 19 November 2015 by VRS  |  Email |Print

The sovereign wealth fund of the United Arab Emirates should start investing in India soon, Finance Minister Arun Jaitley told Reuters on a visit to Dubai to drum up interest in Asia’s third-largest economy.
The first investment in India could be into India’s national infrastructure fund, Mr Jaitley said in an interview, adding that the government would put legal structures and tax predictability in place to attract sovereign wealth funds. ADIA’s first investment in India could be with the National Investment and Infrastructure Fund, set up in August with a mandate to co-invest with strategic partners and own 49% of projects……………………………………..Full Article: Source

Bahrain’s SWF signs Indian JV to build aluminium factory

Posted on 19 November 2015 by VRS  |  Email |Print

Mumtalakat and India’s Synergies Castings will build a $150 million downstream aluminium facility in Bahrain, the chief executive of the kingdom’s sovereign fund said on Wednesday. The aluminium casting and specialty alloy wheel manufacturing plant, will take around 18 months to build and is expected to open in late-2017, Mahmood al-Kooheji told Reuters.
“There is a secure channel for the products as they have the customer demand, which will make it very easy to make profits,” said Kooheji, adding that the joint venture was the first outside India for Synergies Castings, which supplies alloy wheels to car companies including General Motors, Ford and Toyota……………………………………..Full Article: Source

Kazakhstan plans IPOs for 43 large state firms in 2016-17

Posted on 19 November 2015 by VRS  |  Email |Print

Kazakhstan plans to sell stakes of at least 25 percent in 43 large state-owned companies via initial public offerings (IPOs) in 2016-17, the Samruk-Kazyna sovereign wealth fund said. The government faces a plunge in revenues from oil, Kazakhstan’s main export. President Nursultan Nazarbayev told a government meeting on Wednesday he wanted Kazakh businessmen and companies to take part in the privatisations.
The stakes will be sold on the floor of the oil-rich nation’s financial centre being built in the capital Astana, the fund said. The businesses to go public include oil and gas company KazMunaiGas, uranium company Kazatomprom, railway company Kazakhstan Temir Zholy and mining firm Tau-ken Samruk, it said……………………………………..Full Article: Source

India woos Sovereign Wealth Funds from UAE

Posted on 18 November 2015 by VRS  |  Email |Print

Indian Finance Minister Arun Jaitley on Tuesday invited sovereign wealth funds of the UAE to invest in National Infrastructure and Investment Fund (NIIF), saying it will provide good return. NIIF will attract good return on the investment made by the Sovereign Wealth Funds, the Finance Ministry said in a statement.
“It’s a great opportunity for UAE Sovereign Wealth Funds and Pension Funds to make best use of it and make big investment in India,” it said. Abu Dhabi Investment Authority, or Adia, has shown keen interest in making investment on NIIF……………………………………….Full Article: Source

Bahrain sovereign fund to buy 49% of Spanish firm

Posted on 18 November 2015 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund is likely to invest in an European building materials producer. Mumtalakat reportedly intends to buy 49% stake in Spain’s Aleastur. The Spanish firm is a producer of aluminium products, and also works within the steel sector.
Joseph Kirikian, head of industries and services at Mumtalakat, said the investment comes in light of Aleastur’s expansion plans. “We are taking a minority stake and helping the company to expand into the Gulf,” Kirikian said, according to Reuters. While he did not reveal the total value of the investment, Kirikian said he hopes the deal would “close soon”………………………………………..Full Article: Source

Oman-India investment fund to raise $300mln

Posted on 18 November 2015 by VRS  |  Email |Print

Oman-India Joint Investment Fund (OIJIF) is planning to raise a total US$300mn for its second investment vehicle. The fund, a 50:50 joint venture between sultanate’s sovereign wealth fund State General Reserve Fund (SGRF) and India’s largest lender State Bank of India (SBI), has already recieved commitments from both the anchor investors for US$200mn for the new fund, Indian newspaper the Economic Times reported on Monday.
“We are in talks with several reputed third-party institutional investors based in India and abroad. We target to make a first close in first quarter 2016,” said Srinath Srinivasan, CEO of OIJIF. OIJIF’s first vehicle did not raise money from outside investors………………………………………..Full Article: Source

NZ: Energy puts pension funds in tricky spot

Posted on 17 November 2015 by VRS  |  Email |Print

One of the architects of the world’s biggest sovereign wealth fund says pension plans face increasingly complex decisions over responsible investment, particularly in energy. Martin Skancke, now board chairman of the United Nations Principles for Responsible Investment, helped devise the framework for the oil-fuelled Norwegian pension fund in the mid-1990s.
The fund has grown to the equivalent of $1.25 trillion and owns about 1.3 per cent of equities around the world - including in New Zealand - and is branching into real estate. Its holdings include a 25 per cent share of all of Regent St in London. Skancke, in Auckland for a briefing on responsible investment, said energy companies were challenging for pension funds which adhered to principles of responsible investment……………………………………….Full Article: Source

S’pore chip firm faces funding test after split from Temasek

Posted on 17 November 2015 by VRS  |  Email |Print

Stats ChipPac, Southeast Asia’s biggest semi-conductor assembler, is seeking to refinance US$400 million (S$570 million) of debt in the first test of its credit strength without the implicit AAA backing of the Singapore Government.
It plans to sell US dollar-denominated debt that is due in five years to help repay part of an US$890 million bridge loan, Stats ChipPac CEO Woo Kwek Kiong said. The company is currently seeking a US$500 million syndicated loan to pare the bridge loan from DBS Group Holdings……………………………………….Full Article: Source

Korea Investment Corp Increased Fireeye Inc by $12.38 Million as Shares Declined

Posted on 17 November 2015 by VRS  |  Email |Print

Korea Investment Corp increased its stake in Fireeye Inc by 1042.56% based on its latest Q3 2015 regulatory filing with the SEC. Korea Investment Corp bought 399,300 shares as the company’s stock declined 34.41% while stock markets rallied. The institutional investor held 437,600 shares of the technology company at the end of Q3, valued at $13.92 million, up from 38,300 at the end of the previous reported quarter.
Korea Investment Corp who had been investing in Fireeye Inc since many months, is probably bullish the $3.57B market cap company. The stock increased 0.09% or $0.02 on November 13, hitting $22.25. About 5.44 million shares traded hands. FireEye Inc has declined 46.72% since April 14, 2015 and is downtrending. It has underperformed by 43.25% the S&P500……………………………………….Full Article: Source

Bahrain’s SWF plans to buy stake in Spanish aluminium firm

Posted on 17 November 2015 by VRS  |  Email |Print

Mumtalakat plans to buy a 49 percent stake in Spanish aluminium products group Aleastur, an executive at the Bahraini sovereign fund said on Monday. “We are taking a minority stake and helping the company to expand into the Gulf,” Joseph Kirikian, head of industries and services at Mumtalakat, told Reuters on the sidelines of an aluminium conference.
He declined to give a value for the investment but said the deal would hopefully close soon……………………………………….Full Article: Source

Norway’s Wealth Fund buys a stake in Tokyo Cement

Posted on 17 November 2015 by VRS  |  Email |Print

Norway’s Norges Bank, which manages the world’s biggest sovereign wealth fund, has bought a stake in Tokyo Cement of Sri Lanka, the company’s interim filed in Colombo Stock Exchange shows. Norges Bank has bought 2,078,857 voting shares of Tokyo Cement, amounting to a 0.93 percent stake, and 6,269,466 non-voting shares or a 5.63 percent stake, according to the firm’s September quarter results.
The Norges Bank bought 7.5 million shares in knit fabric maker Textured Jersey Lanka, in the month of October this year. Norges Bank Investment Management has close to a trillion dollars invested in global assets, a fund built from the country’s oil revenues. The fund is currently valued at 7.2 trillion Norwegian Kroner, or 835 billion dollars……………………………………….Full Article: Source

Australia fund set to sell its Southern Water stake

Posted on 16 November 2015 by VRS  |  Email |Print

Australia’s sovereign wealth fund is looking for a buyer for its stake in Southern Water, the water and sewerage company recently fined for discharging raw sewage into the sea. Future Fund, set up by the Australian government to take on civil servants’ pensions, has mandated Macquarie Capital to review whether it should keep or sell its 23.4% stake.
Macquarie Capital is an advisory arm of the Sydney-based bank. Southern provides water and wastewater services for 4.6 million people in Kent, Sussex and Hampshire. It was fined £160,000 two months ago for dumping raw sewage into the sea near Worthing in 2012………………………………………..Full Article: Source

1MDB explains Brazen Sky fund unit redemptions

Posted on 16 November 2015 by VRS  |  Email |Print

At the Forum Perdana in PWTC (on Saturday), Arul Kanda, the president and group executive officer of 1MDB, provided a detailed briefing on 1MDB and replied without reservation to various pointed and pertinent questions raised by the audience. This briefing was open to all Malaysians and covered by various media organisations, including alternative media.
1MDB regrets to note that one wrong headline relating to financial costs by The Malaysian Insider (which was subsequently corrected), appears to have been widely and wrongly circulated, including in an Instagram posting that appears to have originated from one Dato’ Sri Nazir Razak. Further, 1MDB notes that a number of online news portals and certain bloggers have in the course of today raised queries relating to the Brazen Sky fund unit redemptions, which was another topic covered at the briefing………………………………………..Full Article: Source

SWF assets to decline further due low oil prices -Moody’s

Posted on 16 November 2015 by VRS  |  Email |Print

Sovereign wealth fund (SWF) assets will grow more slowly or even decline as governments are forced to tap funds to finance budget deficits resulting from persistently low oil prices, credit ratings agency Moody’s said on Thursday. The $4.5 trillion SWF industry has grown rapidly over the last decade but with 73 percent of SWF assets funded from oil and gas revenues, countries like Russia, Saudi Arabia and Norway have already begun tapping into their reserves.
These drawdowns have been prompted by a fall of over 50 percent in global oil prices, with Brent crude futures plunging from $115 a barrel in June 2014 to around $45 a barrel today. With the oil supply glut persisting, the situation is not expected to change soon………………………………………..Full Article: Source

Sovereign Wealth Funds Have Buffers Against Oil Shock: Moody’s

Posted on 16 November 2015 by VRS  |  Email |Print

As a November 12th report from Moody’s Investors Service highlights, both the number and the AUM of global sovereign wealth funds (SWFs) have grown rapidly over the last decade and change. Moreover, SWFs are becoming a crucial part of the international financial system, and were an important stabilizing force in the financial crisis a few years ago.
Finally, as Elena H. Duggar and the rest of the Moody’s team note: “SWFs facilitate the intergenerational transfer of proceeds from nonrenewable resources, allow for greater portfolio diversification than traditional central bank reserves, and contribute to exchange rate stability by managing excess inflows. SWFs also increasingly fund investments in infrastructure.”……………………………………….Full Article: Source

Trott Says Goldman Sought Sovereign Wealth Financing in 2008

Posted on 12 November 2015 by VRS  |  Email |Print

Byron Trott, the former Goldman Sachs Group Inc. banker who arranged a deal in 2008 for billionaire Warren Buffett to inject capital in the firm, said the bank also sought financing from a sovereign wealth fund at the depths of the credit crisis.
“There was a second leg of that deal that never got done,” Trott said Wednesday at an event in New York celebrating Buffett’s 50 years running Berkshire Hathaway Inc. “We were trying to get, actually, a sovereign wealth fund to write Goldman Sachs a $10 billion line of credit behind it.”……………………………………….Full Article: Source

1MDB explains solar ties with US firm

Posted on 12 November 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB), in a joint statement today with DuSable Capital Management LLC, said while the two entities had discussed working together to jointly develop a proposed 50MW solar power plant in Kedah, no definitive agreement was ever reached about the project or any other solar power projects.
According to the statement titled Factual Clarification on 50MW solar power plant in Kedah, Malaysia, 1MDB engaged US private equity firm DuSable in 2013 to assist with project development of utility-scale grid connected solar power generation capability, “for which DuSable was remunerated US$506,000 for costs and expenses”………………………………………..Full Article: Source

Khazanah Nasional And Baidu, China’s Biggest Internet Company Poised For Showdown In New Delhi

Posted on 11 November 2015 by VRS  |  Email |Print

Khazanah Nasional Bhd, Malaysia’s sovereign investment fund and Baidu, China’s biggest internet company are poised for a showdown in a bid for control of Mydala.com, India’s largest discount marketing firm.
Baidu, which trades on the US stock exchange Nasdaq ,and has a market capitalization of US$69.2 billion is believed to have offered US$100 million for a majority stake in Mydala, which is mostly owned by Kinobeo Software. It is believed that Khazanah is prepared to offer a price which is closer to Kinobeo’s own valuation which is between US$150 million and US$200 million………………………………………..Full Article: Source

Adia closes London office

Posted on 11 November 2015 by VRS  |  Email |Print

One of the world’s most powerful sovereign wealth funds is bucking the trend towards global expansion among its peers by shutting its office in the UK. The London office of the Abu Dhabi Investment Authority, its only international hub, is closing down after more than 20 years. “This has no impact on our investments in, and commitment to, the UK, which will continue as before,” Adia spokesman Erik Portanger said.
The fund doesn’t disclose its total assets, which are estimated to be in the hundreds of billions of dollars. In the UK, Adia owns stakes in the operator of Gatwick Airport, water utility Thames Water, train-leasing company Angel Trains and hotels including the high-end Lanesborough in London………………………………………..Full Article: Source

Dar meets Kuwait Fund MD

Posted on 11 November 2015 by VRS  |  Email |Print

Minister for Finance Mohammad Ishaq Dar, who is currently in Kuwait to attend the High Level Global Islamic Finance Conference, Tuesday held a meeting with Abdulwahab Al-Bader, Managing Director of Kuwait Fund for Arab Economic Development (Kuwait Fund) and reviewed progress of various projects being financed by the Fund. Senior officials of the Fund and Pakistan’s Ambassador to Kuwait Muhammad Aslam Khan also participated in the meeting, said a message received here from Kuwait.
The minister thanked Abdulwahab for the important role that Kuwait Fund has played as a reliable development partner, contributing to several important development projects in the energy, infrastructure, human resource development and other sectors. During the meeting, progress of various projects being financed by Kuwait Fund in Pakistan was reviewed………………………………………..Full Article: Source

Mubadala’s Aerospace and Engineering Portfolio to Feature at DAS 2015

Posted on 11 November 2015 by VRS  |  Email |Print

Abu Dhabi’s diverse Mubadala Development Co. is to exhibit several companies from its aerospace and engineering portfolio at the Dubai Airshow this week. Al Yah Satellite Communications Company (Yahsat), Piaggio Aerospace, Nibras Al Ain Aerospace Park, Sanad, SR Technics, Strata Manufacturing and Turbine Services and Solutions Aerospace (TS&S Aerospace) will all feature in Mubadala’s presence at the show.
“The Dubai Airshow has become one of the world’s premier events for the aviation industry, and Mubadala along with its partners plays a key role in showcasing the potential of this industry to the region and the world,” said Homaid Al Shemmari, CEO of Aerospace and Engineering Services at Mubadala………………………………………..Full Article: Source

Abu Dhabi Investment Authority proposes to close London office

Posted on 10 November 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority is considering the closure of its London office. “Adia is proposing to close its London office. This has no impact on our investments in, and commitment to, the UK, which will continue as before,” a spokesman for the fund said on Monday. The decision is expected to affect fewer than 20 jobs, Sky News reported.
“Insiders” said that the move was unrelated to the oil price slump and was instead motivated by a review of the fund’s operations, which had concluded that the London office was “non-core”. Adia ranks second behind Norway as the largest fund in the world, according to the Sovereign Wealth Fund Institute. In June, Adia said that its long-term returns last year rose as world equity and bond markets climbed amid low interest rates and a recovering global economy………………………………………Full Article: Source

London Office Closure Won’t Impact UK Investment

Posted on 10 November 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority, the world’s second largest wealth fund, is planning to close its office in London. The decision won’t impact the fund’s investments and commitment to the U.K., a spokesman for the fund said in e-mailed comments Monday.
ADIA ranks second behind Norway as the largest such fund in the world at $773 billion, according to the Sovereign Wealth Fund Institute. ADIA itself doesn’t disclose assets under management. The fund has been investing the emirate’s oil wealth since 1976 and counts on external fund managers to manage about 65 percent of its assets………………………………………Full Article: Source

China’s oldest investment bank CICC jumps in HK trading debut

Posted on 10 November 2015 by VRS  |  Email |Print

China International Capital Corp (CICC) shares jumped up to 11 percent in their Hong Kong debut on Monday, as investors snapped up China’s oldest domestic investment bank on optimism over mainland equity activity despite this year’s market rout.
CICC’s strong start was helped by China’s decision on Friday to resume IPOs after a four-month halt, a move likely to boost investment banks’ revenues, and sets a positive benchmark for a host of other companies queued up to list. “The timing of the reopening had been a closely monitored exercise by the market. There are hundreds of companies keen to go public,” said Ringo Choi, Asia-Pacific IPO leader at consulting firm EY in Hong Kong………………………………………Full Article: Source

My Turn: A plan to end a regressive entitlement

Posted on 09 November 2015 by VRS  |  Email |Print

After 11 months of budget uncertainty, Gov. Bill Walker has taken the helm to offer a realistic solution to our fiscal crisis. His Sovereign Wealth Fund proposal should end the boom and bust budget cycles dependent on the price of oil before the state depletes its Constitutional Budget Reserve. The challenge for the Legislature will be to set aside political ideologies and give this idea serious consideration.
If the plan is accepted and implemented, every Alaskan can expect to see our Permanent Fund Dividend cut in half. That could lead to voter backlash against Walker and any legislator who supports it. However, people need to recognize this recommendation is not about taking the easy way out………………………………………..Full Article: Source

Kazakh Sovereign Wealth Fund Seeks $106 Million Solar Expansion

Posted on 06 November 2015 by VRS  |  Email |Print

A unit of Kazakhstan’s sovereign wealth fund agreed to double capacity of a solar power plant to 100 megawatts at a cost of about $106 million. TOO Samruk-Kazyna Invest signed a deal with United Green Group to expand the capacity of their venture in the Zhambyl region of southern Kazakhstan, the Astana-based fund said by e-mail on Wednesday. Samruk-Kazyna didn’t say how the expansion will be financed.
Last year, Kazakhstan’s government set tariffs for energy produced by renewables in a bid to get 3 percent of electricity from cleaner sources by 2020. Kazakhstan, the largest oil producer in Central Asia, has sought development of renewable energy, including investment in solar panel production by state-run uranium producer Kazatomprom………………………………………..Full Article: Source

Abu Dhabi Investment buys 2.53 Lk shares of eClerx Services

Posted on 06 November 2015 by VRS  |  Email |Print

On November 05, 2015 Anjan Malik sold 1,68,000 shares of eClerx Services at Rs 1,760.05 and Mundhra Priyadarshan sold 2,50,000 shares at Rs 1,760.38 on the BSE. However, Abu Dhabi Investment Authority bought 2,53,533 shares at Rs 1,760.05.
On Thursday, eClerx Services ended at Rs 1,771.85, down Rs 93.55, or 5.02 percent on the BSE. The share touched its 52-week high Rs 1,949.15 and 52-week low Rs 1,218 on 23 October, 2015 and 10 December, 2014, respectively………………………………………..Full Article: Source

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