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Temasek’s Indian unit InnoVen Capital to expand to Singapore

Posted on 15 July 2015 by VRS  |  Email |Print

InnoVen Capital, a Mumbai-based venture debt fund which recently got acquired by Singapore government-backed Temasek Holdings for INR 300 crore (under US$50 million), is planning to expand its operations to Singapore, says a report by The Economic Times, citing its Managing Director Vinod Murali.
InnoVen, which till date has backed around 40 companies that include Snapdeal, Practo, Myntra and FirstCry, is also looking at other Southeast Asian markets such as Indonesia and the Philippines to launch its operations………………………………………..Full Article: Source

Northern Trust and New Zealand Super Fund Extend Relationship

Posted on 15 July 2015 by VRS  |  Email |Print

The Guardians of New Zealand Superannuation (the Guardians), the manager of the NZ$29 billion New Zealand Superannuation Fund (the Fund) has appointed Northern Trust’s (Nasdaq: NTRS) international asset management arm, a leading provider of index, active and multi-manager solutions, to manage a Barclays Global Aggregate fixed income mandate, incorporating the Fund’s environmental, social and governance (ESG) exclusions.
The new mandate adds to the four passive global equity mandates awarded by the Guardians to Northern Trust in 2013. “We are pleased to grow our existing partnership with Northern Trust. The appointment is consistent with our desire to have fewer, deeper manager relationships, helping us manage the Fund’s portfolio as efficiently as possible,” said Matt Whineray, chief investment officer, New Zealand Superannuation Fund………………………………………..Full Article: Source

Abu Dhabi Investment Authority Unloads General Growth shares

Posted on 15 July 2015 by VRS  |  Email |Print

The General Growth Properties Inc’s insider Abu Dhabi Investment Authority unloaded – 110,000 shares of General Growth Properties Inc, based on the average price of stock which is $26.5 for each one share. This sale of shares currently has a value of approx. $2,915,770 U.S. Dollars.
The deal was revealed in a filing submitted with the U.S. Security & Exchange Commission on July 13, 2015, which is available for access here. And, It’s sure Abu Dhabi Investment Authority’s sell isn’t going to stay unnoticed as the insider right now is having ownership of 38.60 million shares……………………………………….Full Article: Source

Iran Deal Exacerbates Norway’s Oil Risks as Supply Set to Swell

Posted on 15 July 2015 by VRS  |  Email |Print

Norway, which has built the world’s biggest sovereign wealth fund from its oil riches, has also struggled to stop its commodity reliance from overheating the economy. It’s among the costliest places in the world to do business. Workers in its offshore industry were the best or second-best paid worldwide over the past five years, according to recruitment firm Hays Inc.
It costs more to drill a well off Norway than anywhere else, according to a government-commissioned report in 2012. “The most important focus for Norwegian producers now is to reduce costs to be competitive,” said Tommy Hansen, a spokesman for the Norwegian Oil and Gas Association, a lobby group representing companies from Statoil to Royal Dutch Shell Plc and ConocoPhillips………………………………………..Full Article: Source

SWFs evolving into competitors from clients

Posted on 14 July 2015 by VRS  |  Email |Print

Sovereign wealth funds continue to expand in-house management capabilities, a trend that could see them morphing — in the eyes of private markets money management firms — into competitors or collaborators from clients.
“Sovereign wealth funds are becoming scale direct investors,” a trend that’s seen them moving away from the fund and co-investment vehicles they focused on for past investments, said Suvir Varma, a Singapore-based partner with Bain & Co. SE Asia Inc.,……………………………………….Full Article: Source

S. Korea’s sovereign wealth fund buys into U.S. pet supplies retailer

Posted on 13 July 2015 by VRS  |  Email |Print

South Korea’s sovereign wealth fund said Monday that it has invested US$100 million into a U.S.-based pet supplies and services retailer chain as part of efforts to diversify its portfolio. The move, undertaken in cooperation with U.S. private equity fund BC Partners and GIC Private Ltd., Singapore’s state investment corporation, allows the partners to take over PetSmart Inc., Korea Investment Corp. (KIC) said.
KIC’s share in the company headquartered in Arizona stands at 5 percent, with the duration of the investment to be at least five years, the fund said. KIC said that PetSmart not only handles selling pet products, but also provides other various services to pet owners. The company controls some 41 percent of the North American market, making it the largest on the continent………………………………………..Full Article: Source

India best for investment, says Temasek

Posted on 13 July 2015 by VRS  |  Email |Print

Temasek Holdings Pvt ltd which is one of the best firms for investment in Singapore government said today that India has a bright future for investment. India over the past one year has been an active player in the world of investments with the best potential for long-term return as well.
They also spoke about Prime Minister Narendra Modi government who was focusing on reviving investor-led growth, as per Ravi Lambah, co-head of India, Africa and the Middle East region at Temasek. They hope that investing in India would definitely give them long-term returns. India currently accounts for about four per cent of the Singapore investor’s portfolio………………………………………..Full Article: Source

KIC warns of pulling investment from Elliott

Posted on 10 July 2015 by VRS  |  Email |Print

Korea Investment Corp. (KIC), the country’s sovereign-wealth fund, said it will withdraw investment in Elliott Associates if the fund acts in such a way as to hurt the national interest. “If Elliott acts only for short-term investment gains and hurts the national interest, KIC will consider pulling its investment from the hedge fund,” a KIC executive said, Thursday.
He said KIC, which has about $85 billion in assets, has invested in the hedge fund since 2010. KIC has invested $2.6 billion in 20 different hedge funds, KIC said. It has so far invested about $50 million in the U.S. hedge fund with the profit margin reaching 40 percent………………………………………..Full Article: Source

Temasek participates in $2b Didi Kauidi funding round

Posted on 10 July 2015 by VRS  |  Email |Print

Temasek Holdings has participated in a $2 billion funding round in mainland Chinese Uber competitor Didi Kuaidi, which is present in more than 300 cities. This round of funding includes prior investors Alibaba Group and Tencent Holdings, as well as domestic funds Ping An Ventures and Capital International Equity fund.
The other international fund investing alongside Temasek Holdings is New York-based Coatue Management. Both firms are also investors in Singapore-based taxi booking service Grabtaxi. According to the official statements, capital from this round will be invested in research & development of their product, as well as financing subsidy incentives for drivers………………………………………..Full Article: Source

South Korean Sovereign Fund Is Invested in Samsung Opponent

Posted on 09 July 2015 by VRS  |  Email |Print

Korea Investment Corp., which has $85 billion in assets, invested money with Elliott Associates LP in October 2010, according to one of these people. The backing of South Korea’s state investment fund complicates the picture given by some in South Korea of Elliott as an outsider working against the national interest.
KIC’s investment means that it would stand to gain if Elliott profits from its recent investments in at least three Samsung Group companies, including construction-and-trading company Samsung C&T Corp., in which it has a 7.1% stake………………………………………..Full Article: Source

Should Temasek Be Worried About China Exposure?

Posted on 09 July 2015 by VRS  |  Email |Print

Temasek, Singapore’s state investment company, unveiled a stellar result earlier today: a 19.2% one-year return to the shareholder (there is, of course, only one shareholder), with a S$266 billion portfolio that was worth S$43 billion more on March 31 than it was a year earlier.
In the sometimes staid world of sovereign wealth funds, where targets are normally just a touch above inflation over the long term and rarely venture far above 5 or 6%, this reflects a great year. But is there a problem ahead?……………………………………….Full Article: Source

Saudis to invest $10 billion in Russian Federation despite Western sanctions

Posted on 09 July 2015 by VRS  |  Email |Print

Saudi Arabia plans to invest up to $10 billion in Russian Federation over the next five years in the latest bid by the kingdom to endear itself to a traditional energy rival. Saudi Arabia’s Public Investment Fund (PIF) signed a deal on Monday with the Russian Direct Investment Fund (RDIF) to invest $10bn in the country, in a possible sign of rapprochement.
The prince visited St. Petersburg with a large delegation during the economic forum and took part in President Vladimir Putin’s meeting with global investment fund heads. Seven projects have already received preliminary approval, with a total of 10 likely to be green-lighted by the end of the year, Dmitriyev said. PIF expressed interest in investing in agriculture, medicine, retail, logistics and real estate, says Dmitriev………………………………………..Full Article: Source

India invites Kazakh sovereign wealth fund to invest in manufacturing

Posted on 08 July 2015 by VRS  |  Email |Print

Prime Minister Narendra Modi today invited resource-rich Kazakhstan’s sovereign wealth fund as well as businesses to invest in India’s renewable energy, manufacturing and smart city project. He said businessmen of both the countries can work together in space, cyber security, health and infrastructure, stressing that India-Kazakhstan partnership is a “win-win situation”.
Modi, who is on a visit to Central Asia and Russia, made these comments while addressing a round-table interaction with CEOs and business leaders of Kazakhstan and India. “I believe the sovereign wealth fund and your companies can invest in these sector. They have scope for manufacturing sector which is a big requirement for India,” he said. ……………………………………….Full Article: Source

CIC eyes direct investments in the US and Europe

Posted on 08 July 2015 by VRS  |  Email |Print

China’s sovereign wealth fund is targeting infrastructure and real estate investments in the US and Europe as part of a long-term strategy being developed for its newly established subsidiary, says the fund’s chief executive.
China Investment Corporation (CIC) grew its total assets 14.3% last year to $746.7 billion, a rise of $93 billion from the $653.2 billion total in 2013. The fund’s investment return for the year was a rather modest 5.47%, down from 2013’s 9.33% and 2012’s 10.6%. The annualised return since inception in September 2007 is 5.66%, according to CIC’s annual report released on July……………………………………….Full Article: Source

Singapore’s Temasek Shrugs Off China Volatility

Posted on 08 July 2015 by VRS  |  Email |Print

Singapore’s state investment firm Temasek Holdings Pte. Ltd. on Tuesday played down concerns about slowing economic growth and volatile equity markets in China, its second-largest investment destination, as it reported a sharp jump in net profit for its most recent fiscal year.
Temasek said net profit rose to 14.5 billion Singapore dollars (US$11 billion) in the year ended March, up 32% from the year before, largely thanks to strong performance from its holdings in a range of domestic companies and Chinese banks. Its portfolio value grew 19% to a record S$266 billion, in the most active year for the company since the global financial crisis, when it bought stakes in high-profile Western banks such as Barclays PLC and Merrill Lynch………………………………………..Full Article: Source

Singapore’s giant wealth fund still bullish on China

Posted on 08 July 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund Temasek is sticking with its bets on China, looking past recent volatility to gradually increase its exposure. “We remain confident in the long term prospects of the Chinese economy,” Wu Yibing, head of China investments at the 266 billion Singapore dollar ($196.09 billion) fund, said at the press conference announcing the fiscal year results.
“The Chinese government is determined to foster the Chinese capital market into one of the most important capital markets in the world and we believe in that, as well that the Chinese economy would become one of the most important economies in the world.”……………………………………….Full Article: Source

Temasek portfolio value hits record high

Posted on 08 July 2015 by VRS  |  Email |Print

The state investment firm’s net portfolio value rose S$43 billion to a record S$266 billion for the financial year ending Mar 31. Temasek Holdings on Tuesday (Jul 7) announced its performance for the financial year ending Mar 31, during which its net portfolio value rose S$43 billion to a record S$266 billion.
The amount is more than double the firm’s portfolio value of S$103 billion a decade ago. Total shareholder return, which also measures the compounded annual returns to the Singapore Government, was 19.2 per cent – the highest in five years – on the back of strong performance in its Singapore and China portfolios. The firm’s net profit for the year ending Mar 31 was S$14.5 billion, up from S$11 billion the year before………………………………………..Full Article: Source

Temasek pumps $30b into new investments

Posted on 08 July 2015 by VRS  |  Email |Print

In its busiest year since the 2008 financial crisis, Temasek Holdings made $30 billion new investments and stepped up divestments to an all-time high of $19 billion. Temasek did this while global stock markets were still rallying to lock in gains for its financial year ended March 31.
Equities make up the bulk of the Singapore investment company’s portfolio, which had a net value of $266 billion, up $43 billion from the record high a year earlier. One-year shareholder return was 19.2 per cent. About half of its new investments was in growing Asia, and 43 per cent in the mature markets of North America and Europe, where it expects an economic recovery………………………………………..Full Article: Source

Temasek Holdings raises portfolio value to S$195b via equities

Posted on 07 July 2015 by VRS  |  Email |Print

Temasek Holdings has benefited from a surge in the value of global equities focused on developed markets, raising the value of its portfolio by an estimated 16-18 per cent, to a value of S$263 billion ($195 billion) as of 31 March 2015, according a Bloomberg report.
This is based on assessments from by the Institutional Investor’s Sovereign Wealth Center and CMC Markets, distinguishing it as the largest jump in assets in the past five years and pushing it beyond the S$223 billion in value, seen in 2014………………………………………..Full Article: Source

Manulife to delay $620m listing in Singapore

Posted on 07 July 2015 by VRS  |  Email |Print

Manulife US Real Estate Management says it will delay a planned $US465 million ($620m) initial public offering in Singapore due to volatile market conditions, the latest firm to fall victim to weak investor sentiment.
It had also secured six cornerstone investors, who had agreed to take up units of the Singapore REIT ahead of the IPO. These included sovereign-wealth fund Oman Investment Fund, Nikko Asset Management and Malaysia’s Fortress Capital Asset Management. Cornerstone investors generally buy shares ahead of an IPO and having such investors helps bankers and the company market the deal to other institutional and retail investors………………………………………..Full Article: Source

How Xi Jinping’s aura of invincibility has been shaken by China’s stock market slide

Posted on 07 July 2015 by VRS  |  Email |Print

For nearly three years, President Xi Jinping of China has crushed opposition by silencing and often locking up anyone who dares defy the government. But that aura of invincibility has been shaken by stock market speculators who have made a mockery of efforts to halt a steep slide in share prices. On Sunday, the government brought in the central bank, the People’s Bank of China, and an investment arm of the country’s sovereign wealth fund to support the effort.
In addition, Central Huijin Investment, a company owned by the country’s sovereign wealth fund that usually invests in banks and other financial institutions, said on its website that it had recently bought into investment funds traded on the stock exchanges and would continue to play a role in “market operations.”……………………………………….Full Article: Source

1MDB and Greece: Double-whammy decks the ringgit

Posted on 07 July 2015 by VRS  |  Email |Print

Malaysia’s ringgit plunged Monday to levels not seen since the late 1990s Asian Financial Crisis, taking a double whammy from the dual dramas of domestic corruption allegations and Greece. “There’s global uncertainty, global risk aversion hurting the currency already,” Jesper Bargmann, head of trading for Asia at Nordea Markets, told CNBC.
But a continuing political scandal over controversial state investment fund 1Malaysia Development, or 1MDB, “is going to go on for quite some time to create even more uncertainty. So there’s not a lot of investor appetite for Malaysia right now.” “The 1MDB scandal — and it is still an unfolding scandal — shows the government has not come clean completely. They’re not transparent. There’s no clarity,” Wong Chen, a member of Malaysia’s parliament from an opposition party said………………………………………..Full Article: Source

China’s CIC sovereign fund says ready to work with AIIB

Posted on 06 July 2015 by VRS  |  Email |Print

China’s sovereign wealth fund China Investment Corp (CIC) is ready to work with the new Chinese-led Asian Infrastructure Investment Bank (AIIB) to invest in projects in the region, a senior official said on Friday.
With a focus on investing in the infrastructure and high-tech sectors this year, among others, Liu Fangyu, the head of the public relations and international cooperation department at CIC, said the fund was ready to support the AIIB where possible. The fund posted a 41 percent fall in its overseas investment returns in 2014 of 5.5 percent, due partly to falling commodity prices and foreign exchange losses incurred from a stronger U.S. dollar………………………………………..Full Article: Source

China’s sovereign wealth fund boosts exposure to equities

Posted on 06 July 2015 by VRS  |  Email |Print

China’s sovereign wealth fund, China Investment Corp, has shifted its exposure “moderately” from sovereign bonds to equities and is pursuing infrastructure investments in developed countries, according to its chairman. CIC released its 2014 annual report on Friday, revealing a 5.47 per cent return on its investments last year, down from 9.33 per cent in 2013. The fund was established in September 2007 and has some $740bn under management.
CIC’s net income rose 2.5 per cent to $89.1bn. Its largest portfolios are the controlling stakes it holds on behalf of the government in the country’s five largest banks. “In 2014 we moderately increased our exposure to equities and reduced it to sovereign bonds,” Ding Xuedong said in the report, adding that CIC saw “abundant opportunities for investment in the upgrading, rebuilding and privatising of infrastructure in developed countries”……………………………………….Full Article: Source

China Sovereign Fund Returns Drop on Dollar, Commodities

Posted on 06 July 2015 by VRS  |  Email |Print

China Investment Corp., the nation’s $740 billion sovereign wealth fund, said returns on its overseas investments fell for a second year as a strong dollar and weak commodity prices eroded the value of its portfolio.
The return dropped to 5.47 percent last year from 9.33 percent a year earlier, according to the Beijing-based company’s 2014 annual report released Friday. Net income at the fund, which holds government stakes in China’s biggest banks, rose 2.5 percent to $89.1 billion, the report showed………………………………………..Full Article: Source

Temasek Surfs Worldwide Equity Rally as Assets to Reach New High

Posted on 06 July 2015 by VRS  |  Email |Print

Temasek Holdings Pte rode a rally in global equities with a focus on developed markets that probably helped the Singapore state-owned investor’s assets reach a record. Assets at the firm, which releases results this week, may have increased 16 percent to 18 percent to as much as S$263 billion ($195 billion) in the year to March 31, according to estimates by Institutional Investor’s Sovereign Wealth Center and CMC Markets. That would be the biggest jump in assets in five years and surpass last year’s all-time high of S$223 billion.
“They had a great year for their equity investments,” said Nicholas Teo, a Singapore-based strategist at CMC Markets who has been following Temasek’s annual results over the last 10 years. “It shows how aggressive their investment style is compared to other state investors.”……………………………………….Full Article: Source

Russian Minister Calls for Wealth-Fund Boost to Stem Ruble Gains

Posted on 03 July 2015 by VRS  |  Email |Print

Russia should start replenishing its Reserve Fund with proceeds from higher oil prices to stem the ruble’s appreciation, according to Finance Minister Anton Siluanov. The Finance Ministry proposes buying foreign currency for one of its two sovereign wealth funds if oil prices rise higher than $70 per barrel, Siluanov told reporters Thursday.
President Vladimir Putin has backed a weak-ruble policy as a lifeline to Russian producers struggling with a contracting economic amid U.S. and European Union sanctions over Ukraine. A rally in the ruble, the world’s best performer this year after losing almost half of its value in 2014, slowed after the Bank of Russia resumed foreign-currency purchases for its international reserves in mid-May………………………………………..Full Article: Source

Malaysia fund’s $4.5 bln rescue may weigh on Abu Dhabi’s IPIC

Posted on 03 July 2015 by VRS  |  Email |Print

The $4.5 billion rescue of a struggling Malaysian state fund is good news for the government in Kuala Lumpur but will load Abu Dhabi’s International Petroleum Investment Co with extra debt that may worry investors in its bonds.
Last month IPIC, an investment company owned by Abu Dhabi’s government, came to the aid of Malaysia’s loss-making 1MDB, whose poor record and $11.6 billion of debt are a source of political pressure on Prime Minister Najib Razak. IPIC agreed to provide 1MDB with $1 billion in cash, allowing the Malaysian fund to repay a $975 million loan to a global banking syndicate………………………………………..Full Article: Source

SWFs in Latin America and Middle East consider their first hedge fund allocations

Posted on 03 July 2015 by VRS  |  Email |Print

For any hedge fund manager, winning a mandate from a sovereign wealth fund (SWF) is the Holy Grail. These are the biggest institutional investors on the planet and also offer, potentially, the stickiest capital given their multi-year investment horizons.
One should therefore take encouragement from the fact that SWF allocations to hedge funds have steadily risen from 31 per cent in 2013 to 33 per cent today, according to the latest research by Preqin in their Hedge Fund Spotlight June report. But the fact remains that SWFs remain under-allocated to the asset class; 60 per cent do not invest at all. That is quite a contrast to the way they use other alternative assets………………………………………..Full Article: Source

Overseas investors demand new deal on fees to expand Heathrow

Posted on 03 July 2015 by VRS  |  Email |Print

Chinese, Qatari, Canadian and Spanish infrastructure investors could be the big winners from the recommendation by Sir Howard Davies to build a new £18bn runway at Heathrow. A handful of the world’s biggest investors have been buying stakes in Heathrow Airport in recent years, in anticipation of permission being granted to expand the London airport’s capacity.
Heathrow’s investors include an arm of the Chinese government, one of Canada’s biggest pension funds, the Singaporean sovereign wealth fund and the Qatari sovereign wealth fund, as well as the main pension fund of British universities………………………………………..Full Article: Source

SWFs emerge as winners of Airport Commission decision

Posted on 02 July 2015 by VRS  |  Email |Print

Chinese, Qatari, Canadian and Spanish infrastructure investors are set to become the big winners from the recommendation by Sir Howard Davies to build a new £18 billion runway at Heathrow.
Heathrow’s investors include an arm of the Chinese government, one of Canada’s biggest pension funds, the Singaporean sovereign wealth fund and the Qatari sovereign wealth fund, as well as the main pension fund of British universities. But the investors want a 20-year deal on the landing fees that the airport can charge owners, if they are to commit the billions of pounds of debt and equity that will be required to build Britain’s first new runway for more than 70 years………………………………………..Full Article: Source

ENGIE and China Investment Corporation (CIC) Signed MoU

Posted on 01 July 2015 by VRS  |  Email |Print

On the occasion of Chinese Premier Li Keqiang’s visit to France, Gérard Mestrallet, Chairman and CEO of ENGIE, signed a MOU with Ding Xuedong, Chairman and CEO of China Investment Corporation (CIC) in Paris. Premier Li and French Prime Minister Manuel Valls were present at the signing ceremony. Through their new agreement, ENGIE and CIC reinforce their cooperation in the following areas:
Co-investment in large energy projects, particularly renewable energy projects in fast developing countries; Cooperation in new technologies and in energy efficiency fields, especially in China. The cooperation between ENGIE and CIC started in 2011. It was notably marked by the establishment of a fruitful shareholder relationship in ENGIE’s exploration and production activities in which CIC holds a 30% ownership interest. (Press Release)

Wealth Funds Back More Startups, Locking in Matterport and Proterra

Posted on 01 July 2015 by VRS  |  Email |Print

Mountain View-based Matterport, a company that focuses on virtual reality, raised US$ 30 million in Series C financing from a group of investors. Leading the round was Qualcomm Ventures, a venture unit of Qualcomm Incorporated. Other investors are Singapore’s GIC Private Limited, Lux Capital, DCM Ventures, Felicis Ventures, Greylock Partners, Navitas Capital, AMD Ventures, AME Cloud Ventures, iGlobe Partners, Rothenberg Ventures, Luminari Capital, Sling Media founder Blake Krikorian, and Crate & Barrel founder Gordon Segal.
Matterport’s technology can be viewed on virtual reality platforms like Oculus Rift, Samsung Gear VR, and Google Cardboard, as well as through its browser-based application, called 3D Showcase………………………………………..Full Article: Source

Abu Dhabi Fund Boosts Mining Deals With Trafigura Venture

Posted on 30 June 2015 by VRS  |  Email |Print

Abu Dhabi-backed investment fund Mubadala Development Co. is buying a 50 percent stake in Trafigura Beheer BV’s Spanish copper business as part of an agreement to create a joint venture to invest in base metals mining.
Mubadala will purchase the stake in the commodity trader’s flagship Minas de Aguas Tenidas operations, which include three mines and processing facilities in southern Spain, the companies said Monday in a joint statement. Mubadala paid about $500 million, according to a person familiar with the matter, who asked not to be named because the price isn’t public………………………………………..Full Article: Source

Chinese Fund Vies for German Gas-Station Operator

Posted on 30 June 2015 by VRS  |  Email |Print

China Investment Corp. is in the running to buy a German highway rest-stop and gasoline-station company that could be valued at about €3 billion, or $3.35 billion, which would be by far the largest Chinese acquisition in Germany, according to people familiar with the matter.
The potential bid is the latest sign of the sovereign wealth fund’s ambitions to boost direct investments in overseas assets. U.K.-based private-equity firm Terra Firma Capital Partners bought Tank & Rast in 2004 for €1 billion from investors led by Allianz Capital Partners, Apax Partners and Lufthansa………………………………………..Full Article: Source

Temasek participates in Airbnb’s $1.5bn round

Posted on 30 June 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund (SWF) Temasek Holdings has participated in home-rental service Airbnb Inc’s latest venture round, in which it raised $1.5 billion from 12 private equity firms. The deal values Airbnb at $25.5 billion, according to the report from the Wall Street Journal.
This new valuation places Airbnb as third in value behind similar venture-capital backed corporations valued at $1 billion or higher, like Chinese smartphone maker Xiaomi Corp. and US-based transport firm Uber. Airbnb’s revenue is expected to exceed $900 million for FY2015 and projected to reach $10 billion by 2020. For comparison, FY2013 saw it earn revenues of $250 million………………………………………..Full Article: Source

Canada’s Ivanhoe invests in Chinese warehouses

Posted on 30 June 2015 by VRS  |  Email |Print

The real estate arm of Canada’s second-largest pension fund said on Monday it will invest up to $180 million in Chinese warehouse properties, joining other institutional investors that are seeking to profit from China’s burgeoning e-commerce sector.
Ivanhoe Cambridge, part of the C$225.9 billion ($182.49 billion) Caisse de depot et Placement du Quebec fund, said it has launched a venture with U.S. real estate investor CBRE Global Investments to invest in LOGOS China Logistics Club, which owns and develops warehouse properties in hubs serving large Chinese cities. The Caisse joins Singapore sovereign wealth fund GIC and the Canada Pension Plan Investment Board in targeting China’s growing, yet fragmented logistics market………………………………………..Full Article: Source

Swedish investors attack governance record of Norway’s oil fund

Posted on 29 June 2015 by VRS  |  Email |Print

Norway’s oil fund has come under attack from several of Sweden’s largest investors over concerns that the world’s biggest sovereign wealth fund is not applying rigorous oversight to the companies it invests in. The criticism levelled at Norges Bank Investment Management (NBIM), which manages the oil fund’s $912bn of assets, comes in response to its perceived indifference to one of the biggest financial scandals in Sweden in recent history.
The scandal, which has tarnished Sweden’s image as a haven for ethical business practices, revealed corruption around expense claims and the misuse of corporate jets at SCA, the paper company………………………………………..Full Article: Source

Alwaleed welcomes wealth fund deal

Posted on 29 June 2015 by VRS  |  Email |Print

A consortium of France’s big companies led by the CDCIC International Capital the International investment arm of Caisse des Depots France’s Sovereign Wealth Fund has announced that they have approved an investment in Kingdom Holding Company (KHC) which is chaired by Prince Alwaleed bin Talal.
The deal constitutes the acquisition of KHC’s shares with a minimum amount of 150 million (SR563 million) subject to increase. The number of shares and acquisition share price will be determined at a time closer to execution. The share price will be based on the trading price of the stock on the Saudi Stock Exchange (Tadawul)………………………………………..Full Article: Source

Does Sub-Saharan Africa Need A Sovereign Wealth Fund?

Posted on 26 June 2015 by VRS  |  Email |Print

On June 27, 14 African central bank governors will be meeting in Switzerland to discuss the formation of a sovereign wealth fund that they hope will help cushion member countries in times of commodity price weaknesses, Xinhua reported.
According to the forum organizer, the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) which operates in 14 African countries, the continent has for long been criticized for not taking advantage of its vast natural resource wealth to ensure sustainable growth in its economies and a sovereign fund was one way to ensure this. A sovereign wealth fund is a state-owned investment fund investing in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds………………………………………..Full Article: Source

Malaysia fund’s $4.5 bln rescue may weigh on Abu Dhabi’s IPIC

Posted on 26 June 2015 by VRS  |  Email |Print

The $4.5 billion rescue of a struggling Malaysian state fund is good news for the government in Kuala Lumpur but will load Abu Dhabi’s International Petroleum Investment Co with extra debt that may worry investors in its bonds.
Last month IPIC, an investment company owned by Abu Dhabi’s government, came to the aid of Malaysia’s loss-making 1MDB, whose poor record and $11.6 billion of debt are a source of political pressure on Prime Minister Najib Razak. IPIC agreed to provide 1MDB with $1 billion in cash, allowing the Malaysian fund to repay a $975 million loan to a global banking syndicate………………………………………..Full Article: Source

Super Fund kudos shows Govt folly

Posted on 26 June 2015 by VRS  |  Email |Print

JPMorgan’s hat tip to the New Zealand Superannuation Fund was PR manna from heaven after all the hoo-haa a few months back over its ill-fated Portuguese excursion. Research by JPMorgan Asset Management found the Super Fund has been the world’s best-performing sovereign wealth fund over the past five years, with annual investment returns of 17 per cent.
It was just what the doctor ordered after February’s revelation that the fund had written off a $200 million loan to Portugal’s Banco Espirito Santo, which collapsed last year. That announcement sparked the kind of bruising media coverage you would expect when a couple of hundred million taxpayer dollars disappear………………………………………..Full Article: Source

Fossil-fuel divestment: No smoking

Posted on 26 June 2015 by VRS  |  Email |Print

The critics are right that it is hard to detect much impact from divestment campaigns on firms’ cost of capital. The first recruits to the fossil-fuel campaign were charities and universities with relatively small investments. Its biggest coup came earlier this year, when Norway’s vast sovereign-wealth fund resolved to sell its investments in coal and the dirtiest forms of oil production.
A few big pension funds, such as PFZW of the Netherlands, have promised to reduce the carbon footprint of their holdings. But the consequences for the share prices or bond yields of the spurned firms, if any, are not discernible amid the far bigger swings attributable to changes in the price of oil, gas and coal……………………………………….Full Article: Source

Queen’s grant: Treasury still controls sovereign fund not Scots

Posted on 25 June 2015 by VRS  |  Email |Print

Edinburgh’s takeover of Scottish Crown Estate assets may rile the royal household worried for its purse, but a misdirected fight could feed Scots’ republican instincts. The royal household is annoyed and appears to be picking a fight with Scotland’s government over the Queen’s share of the UK’s largest and most valuable property portfolio, the Crown Estate.
The publicly owned property empire, which takes in Ascot racecourse, London’s West End, Highland estates, farms, shopping centres, leisure parks, mining operations and most of the UK’s seabed and coastline, as well as lucrative licences to install wind farms and wave energy machines on the seabed, is worth billions of pounds………………………………………..Full Article: Source

Noble shares rise on buyback and China shareholder’s support

Posted on 25 June 2015 by VRS  |  Email |Print

Shares of Noble Group rose after the company bought more stock and its second-largest shareholder, China’s sovereign wealth fund, voiced support for the company for the first time in the wake of criticism of its accounting practices.
“As a major shareholder of Noble Group, we will continue to support its business,” Xie Ping, executive vice president of China Investment Corp., said in a Noble statement on Wednesday morning announcing the appointment of a new director. Noble, Asia’s largest commodity trader, rose as much as 4.3 per cent and at 10:50 a.m. local time was up 2.9 per cent to 71.5 Singapore cents, outpacing Singapore’s benchmark index………………………………………..Full Article: Source

The state pension fund as a sovereign wealth fund

Posted on 25 June 2015 by VRS  |  Email |Print

Sovereign wealth funds have been very holistic in their approach to strategic asset allocation. These funds think about the true risks for their clients (citizens) which is associated with the consumption and revenue pattern of their country. They truly have to think about portfolios that can weather ‘bad times” or market downturns because they are investing their country’s wealth.
They have to account for demographics and the depletion of resources. There are a few states that have the same mandate as a sovereign wealth fund given revenues from natural resource extraction like Alaska, New Mexico, Texas, North Dakota, and Louisiana. These funds have to think about resource prices, cash flows, and how to make the money last over the long-term long even after the resources have been used………………………………………..Full Article: Source

Things are not looking good for the mining industry

Posted on 24 June 2015 by VRS  |  Email |Print

It is probably not news to most investors that the global mining industry is in trouble at this point. The Chinese, long one of the biggest buyers of mined commodities, are awash in steel, local debt, and ghost cities. Inevitably as sectors underperform, even the most stalwart investors will eventually get tired and jump ship. That appears to be happening now.
The Qataris are apparently tired of the poor returns in the mining industry and appear ready to throw in the towel on that market. The Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund, are reportedly shifting away from the mining sector. Qatar is not the first sovereign wealth fund to back out of commodities, and they probably won’t be the last………………………………………..Full Article: Source

Credit Suisse Fund Wary of Norway Risk Amid $4.4 Billion Spat

Posted on 23 June 2015 by VRS  |  Email |Print

A Credit Suisse Group AG-managed fund that is looking to invest in Norwegian wind farms said a recent $4.4 billion conflict over sudden changes to gas pipe regulations had made the Nordic country a riskier place to do business.
Investors including Allianz SE, Abu Dhabi’s sovereign wealth fund and Canadian pension funds sued the Norwegian government after it imposed cuts of as much as 90 percent to tariffs on future natural gas transportation through Norway’s Gassled offshore pipeline network………………………………………..Full Article: Source

S. Korea’s sovereign fund nixes plan to buy into LA Dodgers

Posted on 23 June 2015 by VRS  |  Email |Print

South Korea’s sovereign wealth fund has abandoned its plan to buy a stake in the Los Angeles Dodgers, a Major League Baseball club, as part of a broader move to diversify its investment portfolio, sources familiar with the matter said Sunday.
The Korea Investment Corporation (KIC), which manages assets entrusted by South Korea’s central bank, had been in talks to buy a 19-percent stake in the Dodgers from U.S.-based investment firm Guggenheim Partners since last year, a deal estimated at 400 billion won (US$361 million)………………………………………..Full Article: Source

Has WSJ exposed 1MDB as BN’s political ATM?

Posted on 22 June 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) was founded by Prime Minister Najib Razak to be a “a strategic enabler for new ideas and sources of growth” and was given the mission “to drive sustainable economic development by forging strategic global partnerships and promoting FDI”.
There were many, both within the government circles as well as out of it which questioned its establishment, given that Khazanah Nasional Bhd was already specifically set up to meet these objectives. Why create a separate competing entity? While we have been fully aware of the shenanigans taking place in 1MDB previously, it was only in recent weeks we are beginning to discover some of the hidden agenda and objectives behind the company’s set up………………………………………..Full Article: Source

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