Sat, Apr 18, 2015
A A A
Welcome asarmad
RSS

Sovereign Wealth Funds Briefing - Category | Market more

Saudi Arabia’s oil pain could become local SMSFs’ gain

Posted on 19 February 2015 by VRS  |  Email |Print

The drive to have self-managed funds and local communities become major funders of future infrastructure projects is gathering momentum. At the same time, there is a real chance that low oil prices will change the global infrastructure game. David Murray, the chairman of the Financial System Inquiry, along with many others, is watching closely developments in Saudi Arabia where the sovereign wealth fund has been a major investor in global infrastructure projects.
The Saudis continue to make big profits from the current oil price because of their low extraction costs but they have set up a society that requires a $US75 a barrel price to fund the country. That means that very soon the Saudi’s sovereign wealth fund will need to sell assets to cover the shortfall. At the same time, they will slash their support for new projects………………………………………..Full Article: Source

How will the oil crash affect Norway?

Posted on 18 February 2015 by VRS  |  Email |Print

Most of the surplus is due to the trade balance rather than the income earned from the assets held abroad by Norway’s sovereign wealth fund. The fund produces a large cash flow in absolute terms, but those receipts are far smaller than the export earnings from oil and gas. At the current oil price of about 400 krone per barrel, the government no longer runs a budget surplus and can’t add to the sovereign fund’s holdings: “measured as a share of GDP, the GPFG may have already reached the peak.”
If oil prices don’t rebound and the sovereign fund continues to earn around 3 per cent in real terms each year, Olsen thinks fiscal policy will have to be tightened significantly to offset the decline in petroleum revenues………………………………………..Full Article: Source

Temasek-controlled NOL sells $1.2b APL

Posted on 18 February 2015 by VRS  |  Email |Print

Neptune Orient Lines Ltd. is selling its profitable logistics business to a Japanese logistics-service provider for $1.2 billion, as the Singaporean firm narrows its focus on its struggling container-shipping business.
Neptune Orient Lines, or NOL, which is 65% owned by Singapore state-investment company Temasek Holdings Pte. Ltd., said it has agreed to sell APL Logistics Ltd. to Kintetsu World Express Inc., a company involved in air and ocean freight forwarding………………………………………..Full Article: Source

Khazanah signs up luxury hotel firm

Posted on 18 February 2015 by VRS  |  Email |Print

Khazanah Nasional Bhd unit Destination Resorts and Hotels Sdn Bhd (DRH) is set to venture into another luxury hotel development here, tying up with Thailand-based Minor Hotel Group. The two parties inked an agreement last week to set up the first Anantara luxury resort in Malaysia, at a location yet to be decided.
Minor Hotel chairman William Heinecke said in a statement that the Thai firm may open more than one Anantara hotel in Malaysia. “We believe there is a vast potential for growth in the tourism sector in this beautiful country.” DRH is now undertaking the development of Desaru Coast, the region’s first integrated destination resort located at the south eastern Johor coastline………………………………………..Full Article: Source

SOFAZ and Oil price

Posted on 18 February 2015 by VRS  |  Email |Print

Azerbaijan produced in 2014 some 41.9 million metric tons of oil and gas condensate as compared to 43.1 million metric tons of oil and gas condensate, produced in 2013. The revenues of Azerbaijan’s State Oil Fund (SOFAZ) in 2014 stood at 12,731 million AZN, expenses amounted to 10,117.2 million AZN.
SOFAZ said that as of Jan. 1, 2015, its assets increased by 3.42 percent compared with early 2014 ($35,877.5 million), and stood at $37,104.1 million.The main purposes of SOFAZ are the accumulation of funds and the placement of these fund’s assets abroad to minimize negative impact on the economy, and prevention of the “Dutch disease”………………………………………..Full Article: Source

ADIA Said to Oppose L&R in Bidding for Former UniCredit Milan HQ

Posted on 17 February 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority, the world’s second-biggest sovereign wealth fund, and London & Regional Properties Ltd. have bid for the former headquarters of UniCredit SpA in Milan, according to two people familiar with the matter.
Offers were between 280 million euros ($319 million) and 320 million euros, said the people, who asked not to be identified because the matter is private. ADIA is bidding with local partner Hines Italia SpA against U.K.-based London & Regional which is working with Milan-based real estate manager Prelios SpA, the people said………………………………………..Full Article: Source

Test for non-oil economy

Posted on 17 February 2015 by VRS  |  Email |Print

Oil prices have crashed from over $100 to sub-$60 a barrel in just five months. While this is good news for consumer countries, it also means only half the revenue for the energy producers, especially the Gulf Cooperation Council (GCC) countries. Hydrocarbon incomes are set to reduce from $743 billion in 2012 to about $410 billion in 2015. The bloc may, therefore, record a current account deficit for the first time since the late 1990s.
A massive sovereign wealth fund and billions in a ‘future generations fund’ means Kuwait plans to spend $155 billion on projects over the next five years despite the oil price plunge. And, Qatar’s infrastructure projects pipeline is set to soar with $30 billion worth of new project deals in 2015………………………………………..Full Article: Source

Singapore’s Temasek, JTC agree to merge 4 real estate subsidiaries

Posted on 17 February 2015 by VRS  |  Email |Print

Singapore state investor Temasek Holdings and JTC Corp, a government agency for infrastructure development, agreed to combine four of their real estate and urban planning units, to capitalise better on rapid urbanisation in emerging markets.
The merged group’s value would be worth about S$5 billion ($3.7 billion) based on the underlying entities, the two firms said. JTC’s Ascendas Pte and JURONG International Holdings Pte Ltd (JIH) will combine with Temasek’s Surbana International Consultants Holdings and Singbridge Group. The merger is expected to be completed within the first half of this year………………………………………..Full Article: Source

Temasek, JTC to merge units to create a S$5b entity

Posted on 17 February 2015 by VRS  |  Email |Print

Investment giant Temasek Holdings and industrial developer JTC Corp yesterday said they had entered into an agreement to merge four of their operating subsidiaries into a mega-entity worth about S$5 billion to tap opportunities from rapid urbanisation across Asia.
Plans for the merger, a bid to build scale and capacity to take on urban solutions and infrastructure projects in Asia and other markets, were first announced last September. Besides the estimated value revealed yesterday, more details about the new corporate structure were also unveiled………………………………………..Full Article: Source

China’s Silk Road dream falls into place with US$40b fund

Posted on 17 February 2015 by VRS  |  Email |Print

Beijing has launched its US$40 billion Silk Road infrastructure fund along the lines of a long-term private equity venture to boost businesses in countries and regions along the route, the central bank governor said. The announcement serves as a prelude to the publication of a blueprint that sheds light on the country’s ambitions to create the New Silk Road economic belt and the 21st-century maritime Silk Road.
The fund’s investors included China’s foreign-exchange reserves, Export-Import Bank of China, China Development Bank and the country’s sovereign wealth fund, the PBOC said………………………………………..Full Article: Source

1MDB says no Jho Low connections to company

Posted on 16 February 2015 by VRS  |  Email |Print

The Penang-born financier and businessman Jho Low has no connections to government investment company 1Malaysia Development Bhd, its chief executive told Mingguan Malaysia. Arul Kanda Kandasamy, in his first major newspaper interview since taking over as 1MDB boss, denied a front-page report in the New York Times last week which had linked Jho Low (Low Taek Jho) with 1MDB.
Jho Low is reported to have been instrumental in helping set up 1MDB’s forerunner, the Terengganu Investment Authority, and bringing in Middle Eastern investments through his high-placed connections………………………………………..Full Article: Source

World’s biggest wealth fund has peaked as oil sinks, Norway says

Posted on 16 February 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund has reached its peak amid a collapse in oil prices, according to the governor of Norway’s central bank. The development means western Europe’s biggest crude producer needs to get used to lower revenue from its petroleum industry, Governor Oeystein Olsen said in the text of a speech delivered in Oslo on Thursday.
“At an oil price of around US$60 per barrel, transfers to” the wealth fund “may come to a halt,” he said. As head of the central bank, Olsen oversees Norway’s US$860 billion Government Pension Fund Global………………………………………..Full Article: Source

Temasek unit gives local firm a shot in the arm

Posted on 13 February 2015 by VRS  |  Email |Print

A unit of Temasek Holdings has invested an undisclosed amount in local construction firm Deluge Fire Protection to allow it to expand further overseas. The capital injection by Heliconia, which focuses on helping local small and medium-sized enterprises, will underpin the firm’s expansion into Indonesia and the Philippines amid rapid urbanisation across the region.
The company has already moved abroad with offices in Malaysia, Myanmar, Thailand and Vietnam, along with a pre-fabrication factory in Johor. Deluge managing director Vincent Cheo said the investment could help the firm double its overseas revenue in the next three to five years……………………………………….Full Article: Source

World’s Biggest Wealth Fund Has Peaked as Oil Sinks, Norway Says

Posted on 13 February 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund has reached its peak amid a collapse in oil prices, according to the governor of Norway’s central bank. The development means western Europe’s biggest crude producer needs to get used to lower revenue from its petroleum industry, Governor Oeystein Olsen said in the text of a speech delivered in Oslo on Thursday.
“At an oil price of around $60 per barrel, transfers to” the wealth fund “may come to a halt,” he said. As head of the central bank, Olsen oversees Norway’s $860 billion Government Pension Fund Global………………………………………..Full Article: Source

Abu Dhabi Santiago Bernabeu: Oiling the wheels of footie

Posted on 13 February 2015 by VRS  |  Email |Print

The news that Abu Dhabi’s International Petroleum Investment Company has secured naming rights to Real Madrid’s home ground – turning it into the Abu Dhabi Santiago Bernabeu – represents an interesting branding exercise. Sovereign wealth funds rarely seek brand recognition: usually quite the reverse.
IPIC’s venture puts us in mind of another Abu Dhabi sovereign wealth fund’s brief engagement with international football, when the Abu Dhabi Investment Authority (Adia)’s shareholding in Manchester United reached a level where it had to be disclosed, back in 1998. Clearly, there was nothing wrong with that as an investment, but Adia reportedly exited it because of the unwelcome attention it was bringing, to the point where disgruntled fans would phone up the sovereign wealth fund if their team lost at the weekend………………………………………..Full Article: Source

Carlyle Group sees rise of sovereign wealth fund investment, decline in pensions

Posted on 12 February 2015 by VRS  |  Email |Print

Sovereign wealth funds are “a gigantic source of new investment” that are elbowing aside public pension funds in the private equity space, Carlyle Group co-CEO David Rubenstein said Wednesday. Such state-controlled funds increased to 37 percent of capital commitments at Carlyle last year, up from 17 percent a year earlier, Rubenstein said.
“I suspect that will continue. At the same time public pension funds are going down, relatively speaking. It was 28 percent; now it’s about 18 percent,” Rubenstein said during an investor conference call to announce the District-based firm’s 2014 financial results………………………………………..Full Article: Source

Credit Investors Spurn Oil Sovereigns

Posted on 12 February 2015 by VRS  |  Email |Print

As the oil tide recedes, oil-exporting sovereign entities have been treated with increasingly bearish sentiment by credit investors. Oil has seen its price halve since the end of July last year, from around $100 per barrel to around $50 today (WTI), compelling net exporters to rethink their budgets.
Large sovereign wealth funds look to have buoyed Norway and Saudi Arabia as their CDS spread sits largely unmoved………………………………………..Full Article: Source

Why Norway is not panicking about the oil price collapse

Posted on 11 February 2015 by VRS  |  Email |Print

The big advantage that Norway has is the US$860bn (£565bn) Norwegian Government Pension Fund Global into which the oil money is deposited. Intended as an investment for future generations, it is the largest sovereign wealth fund in the world.
Norway owns an estimated 1% of global stocks and is considered to be the largest state owner of European stocks. For a country with a population just over 5m, this is a position of remarkable economic strength – thanks primarily to petroleum. The revenue of the sector is not only important as an economic boost, but also as the foundation of the Norwegian welfare state………………………………………..Full Article: Source

East Timor’s Gusmao makes way for younger generation

Posted on 11 February 2015 by VRS  |  Email |Print

Oil and gas currently fund around 90 percent of the annual government revenue and also account for around 80 percent of GDP and 93 percent of exports. With the proceeds from gas extraction the government has established a sovereign wealth fund, hoping to ensure a more diversified economy and more widely distributed economic growth.
While East Timor’s sovereign wealth fund will likely provide a temporary buffer for the loss of oil and gas revenues, the size of the fund is still moderate, with an estimated 16.6 billion USD in assets, according to experts………………………………………..Full Article: Source

Temasek eyes Crompton Greaves’ fan biz

Posted on 10 February 2015 by VRS  |  Email |Print

Singapore state fund Temasek Holdings is a frontrunner to buy a $200-million stake in the about to be demerged consumer products business of India-based Crompton Greaves, which is controlled by billionaire Gautam Thapar, a media report said, quoting ‘multiple sources directly familiar with the matter’.
According to the Times of India, the Singapore fund has entered into exclusive negotiations with Crompton Greaves’ promoter, to acquire around 20 per cent stake in the company, ahead of rivals such as General Atlantic Partners and Bain Capital………………………………………..Full Article: Source

Gulf institutional funds favor Japan, Asia, shun Europe

Posted on 09 February 2015 by VRS  |  Email |Print

Gulf institutional investors are putting their money into Asian equities, in particular Japanese stocks, but are shunning European shares after years of underperformance, the Middle East head of Pictet Asset Management said. Many of these Middle Eastern entities, including some of the world’s largest sovereign wealth funds, have traditionally been regarded as significant investors into European developed markets.
Qatar for example, through Qatar Investment Authority and its subsidiaries, has in recent years embarked on an aggressive expansion spree which has seen it buy up stakes in major companies such as Volkswagen and Siemens, as well as real estate and infrastructure on the continent………………………………………..Full Article: Source

Temasek tells S&P: S’pore is not debt-ridden Greece

Posted on 09 February 2015 by VRS  |  Email |Print

A plan by ratings agency Standard & Poor’s to overhaul the way it rates investment holding companies has drawn a strongly worded response from Temasek Holdings.The Singapore investment firm noted that the “confusing” proposal lumps Singapore together with countries such as Jamaica and even Greece, which is battling a debt crisis.
Temasek has issued bonds targeted at professional investors. It has previously said that it is also looking at offering retail bonds.Temasek spokesman Stephen Forshaw said a company should be rated based on its underlying credit quality, according to business and financial factors………………………………………..Full Article: Source

Temasek says Singapore not Greece in S&P critique

Posted on 06 February 2015 by VRS  |  Email |Print

Singapore’s Temasek Holdings has told Standard & Poor’s in 29 pages why it shouldn’t mess with the state-owned investor’s AAA rating. Temasek, which managed S$223 billion (US$165 billion) of assets as of last March, said the rating firm’s proposed new rules for grading investment holding companies lump Singapore with riskier nations such as Greece and Jamaica, according to a Feb 2 response to the changes.
S&P’s new criteria take into account the firms’ lack of direct ownership of assets, the challenges they face when selling in illiquid markets and volatility of assets they hold………………………………………..Full Article: Source

Russia’s ‘anti-crisis’ fund has little to spare

Posted on 06 February 2015 by VRS  |  Email |Print

As Russia grapples with plunging oil prices and Western sanctions, attention is focusing on a $74 billion National Wealth Fund used to help the country weather crises. The NWF was used heavily in 2009 to fund emergency measures for banks and companies during the economic downturn, and it has been tapped in recent months to help firms cope with sanctions imposed over the Ukraine conflict - leading some to dub it an “anti-crisis fund”.
Last week, Russia announced a $35 billion “anti-crisis” spending plan to help the economy. But conflicting government statements have sown confusion about how exactly Moscow will finance the new measures as the country heads for recession and companies struggle to refinance their debts………………………………………..Full Article: Source

Offer for Canary Wharf Owner Has Enough Support to Proceed

Posted on 06 February 2015 by VRS  |  Email |Print

Qatar’s sovereign wealth fund and Brookfield Property Partners said on Thursday that they had received enough support from investors to move ahead with their $3.9 billion offer for the owner of the Canary Wharf office and retail development.
Investors holding more than 94 percent of the outstanding shares of Songbird Estates have agreed to accept the offer, including a 28.6 percent stake held by the wealth fund, the Qatar Investment Authority. Songbird Estates is the controlling owner of Canary Wharf Group, which operates the complex in the east of London………………………………………..Full Article: Source

Australia’s $85 Billion Sovereign Fund Cuts Stocks to Add Cash

Posted on 05 February 2015 by VRS  |  Email |Print

Australia’s Future Fund, the country’s sovereign wealth manager, moved more of its A$109.2 billion ($85 billion) into cash and pared equity holdings in anticipation of continued volatility in global markets.
The Melbourne-based fund lowered its allocation to global stocks to 30.3 percent as of Dec. 31, down 2.8 percentage points from a year earlier, according to an e-mailed statement today. Cash holdings rose 3.8 percentage points to 12.8 percent. Private equity and property allocations also increased, while the fund reduced investments in debt and Australian shares. The Future Fund posted a 13.2 percent return in 2014………………………………………..Full Article: Source

Samruk Kazyna’s Campaign to Celebrate 70th Anniversary of World War II Victory

Posted on 05 February 2015 by VRS  |  Email |Print

The national Samruk Kazyna Sovereign Wealth Fund has allocated about 600 million tenge (US$3.3 million) to implement an action plan and campaign to celebrate the 70th anniversary of the victory in World War II. The programme includes creation of a unified information online platform containing the history of the war, contribution of the Kazakh people to the victory, description of the feats of heroes and information about Kazakh veterans.
Using Internet platform, plans are being considered to hold a charity campaign to raise funds for veterans, whose goals and needs will be identified and agreed with the Organisation of Veterans of Kazakhstan………………………………………..Full Article: Source

India courts sovereign funds to finance infra

Posted on 04 February 2015 by VRS  |  Email |Print

The government on Tuesday made a strong bid before 20-odd sovereign wealth funds and pension funds to finance large infrastructure projects, given that they are looking to deploy large amounts of long-term capital and seek high returns in emerging market economies like India.
Sources said a team of ministers and officials led by finance minister Arun Jaitley made the pitch during a closed-door meeting, India Investor Summit, organized by Blackrock and the finance ministry. They added railway minister Suresh Prabhu, for instance, listed out possible investments in nearly half-a-dozen railway PSUs and suggested that they were attractive propositions as they have capacity to raise more resources in terms of debt……………………………………….Full Article: Source

Raub MP: 1MDB has lied to Malaysians

Posted on 04 February 2015 by VRS  |  Email |Print

Raub MP Ariff Sabri Abdul Aziz declares in his latest blog posting that 1MDB has lied to Malaysians. “It is not a responsible borrower anymore,” he says. Referring to the company’s recent announcement that it has redeemed funds parked in the Cayman Islands and a subsequent news report that tycoon Ananda Krishnan is lending it RM2 billion, he points out that the two developments, taken together, are puzzling.
“It says it has fully redeemed money from the Cayman Islands. If it did, why must it borrow from Ananda? We don’t know what the terms of the loan were. Did it come with promises that Ananda will be the bigger owner of the soon to be listed energy company?……………………………………….Full Article: Source

Sovereign wealth funds in talks to back $15 billion O2 deal

Posted on 03 February 2015 by VRS  |  Email |Print

Some of the world’s biggest sovereign wealth funds are in talks to provide financial backing for Hutchison Whampoa’s (0013.HK) acquisition of Telefonica’s (TEF.MC) British mobile business, the Telegraph newspaper reported, citing unidentified sources.
The 10 billion pound ($15 billion) move by Li Ka Shing’s Hutchison to merge its Three Mobile network with Telefonica’s O2 UK will make the group the top mobile operator in the country. The Telegraph said sovereign wealth funds including China Investment Corporation, Singapore’s Temasek and GIC, and one of Qatar’s big government-sponsored vehicles were in talks to provide a significant portion of the financing………………………………………..Full Article: Source

Bidders line up for $5bn port contest

Posted on 02 February 2015 by VRS  |  Email |Print

Global Infrastructure Partners has teamed up with Queensland Investment Corporation and ­Borealis in the contest to buy the Port of Melbourne, which could sell for as much as $5 billion. The consortium, advised by Credit Suisse and Gresham, will compete with other parties for Australia’s busiest container and cargo port, being sold by advisers Morgan Stanley and Flagstaff.
Other bidders known to be ­preparing to compete in the sales process are IFM, advised by JPMorgan, and Hastings Funds Management together with Wren House, which are advised by Royal Bank of Canada and UBS. Wren House is the infrastructure arm of sovereign wealth fund Kuwait ­Investment Authority………………………………………..Full Article: Source

Sovereign wealth funds interested in buying a stake in the merged O2 and Three

Posted on 02 February 2015 by VRS  |  Email |Print

A group of the world’s biggest sovereign wealth funds are interesting in acquiring shares in a merged O2 and Three – which is expected to become the largest British mobile phone operator. Hutchison Whampoa, a Hong Kong conglomerate, announced its intention to take over O2 for £10.25 billion and merge it with Three UK, the smallest mobile network that it currently owns.
According to Sky News, investors from China, Singapore and the Middle East have been in talks with Hutchison Whampoa about purchasing shares in the new merged company. The talks are at an early stage, but reports say that there have been approaches from the Government Investment Corporation of Singapore and various Canadian pension funds………………………………………..Full Article: Source

Qatari sovereign wealth fund buys Canary Wharf for $4bn

Posted on 29 January 2015 by VRS  |  Email |Print

A joint venture between Qatar’s sovereign wealth fund and Canadian developer Brookfield Property Partners is poised to take control of Canary Wharf for $4bn after the three largest shareholders in the present owner, Songbird Estates, accepted the deal.
Songbird conceded defeat after New York investor Simon Glick, the China Investment Corporation and Morgan Stanley said they would support the deal. As the Qatar Investment Authority (QIA) is the largest shareholder with 29% of Songbird’s shares, the deal had 86% support………………………………………..Full Article: Source

How China SWF views the state of the global economy

Posted on 27 January 2015 by VRS  |  Email |Print

China isn’t the only one facing a “new normal”, according to the head of China’s sovereign wealth fund, who tips a period of weak growth, divergence and instability for the global economy.
“China says its economy has entered a ‘new normal’. I think the same can be applied to the world economy,” Ding Xuedong, chairman and CEO of China Investment Corporation, the world’s fourth-largest sovereign wealth fund, told CNBC on the sidelines of the annual World Economic Forum in Davos, Switzerland………………………………………..Full Article: Source

Shahmar Movsumov: “Low oil price means decline of SOFAZ assets by $3 bln”

Posted on 27 January 2015 by VRS  |  Email |Print

Low oil price means decline of SOFAZ assets by $3 bln, Executive Director of the State Oil Fund of Azerbaijan (SOFAZ) Shahmar Movsumov said. According to him, eh raw material prices will probably be stabilized in the second half of 2015: “It’s clear that no one expects rebound of these prices as in 2009-2010, however it will exceed the current level”.
Though economic development weakened due to oil price decline, Azerbaijan could keep its exchange rate: “GDP growth made 2.8% in 2014 in connection with decline of oil production over 2%, while it was 5.8% in 2013. Central Bank spent $1.13 bln from its financial resources to keep exchange rate of manat stable in December”……………………………………….Full Article: Source

Rosy outlook for regional M&A, SWF active

Posted on 27 January 2015 by VRS  |  Email |Print

Regional mergers and acquisitions (M&A) activity is forecast to remain as buoyant this year as 2014 despite the oil price drop as governments continue to spend, corporates focus on growth and international investor interest in the energy-rich region rises, M&A advisors say.
Sovereign wealth funds, which are mandated to invest the oil dollar surplus for future generations, will continue to be active, as they were in 2014. Last year saw sovereign wealth funds eyeing international investments, which helped outbound M&A activity rise 74 per cent to US$26bn, led by investments from Qatar. The Qatar Investment Authority, the country’s sovereign wealth fund, last year led a bid to acquire Songbird Estates, the owner of the Canary Wharf financial district in London for about $4bn. It was the biggest announced M&A deal in the Middle East last year………………………………………..Full Article: Source

Russians party on in Davos as vodka flows, Ukraine in havoc

Posted on 26 January 2015 by VRS  |  Email |Print

VTB Bank isn’t letting a bad year get in the way of a good party. Executives at the state-controlled Russian bank, which has cut hundreds of employees following U.S. and European Union sanctions, are betting a little jazz and vodka with the world’s elite will dull the pain.
Kirill Dmitriev, the CEO of Russia’s main sovereign-wealth fund, plans to be fully involved with the week’s events. Dmitriev’s Russian Direct Investment Fund is one of the sponsors of a dinner for sovereign-wealth funds. The executive plans to give a speech and use the event to build relationships with “funds from Asia, the Middle East, and Latin America.”……………………………………….Full Article: Source

Samruk-Kazyna cuts spendings by $1.83 bln in 2015

Posted on 23 January 2015 by VRS  |  Email |Print

Samruk-Kazyna will reduce its spending by 337 billion tenge ($1.83 billion) in 2015, Tengrinews reports citing the press service of the company. The National Welfare 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 and postal service, the state oil and gas company KazMunayGas, the state uranium company Kazatomprom, Air Astana airlines, and numerous financial groups.
The state is the sole shareholder of the fund. Umirzak Shukeyev is Chief Executive Officer and Chairman of the Management Board of Samruk-Kazyna. Independent directors are Alexander Mirtchev, Sir Richard Harry Evans and Nigel John Stapleton………………………………………..Full Article: Source

Russia prepares RUB1.375 trillion anti-crisis plan

Posted on 23 January 2015 by VRS  |  Email |Print

Russia’s President Vladimir Putin has approved the provisional version of an anti-crisis plan drawn up by the government. According to media reports, the plan involves recapitalisation of banks, provision of state guarantees, support measures for state development bank VEB and diverse sectors, changes to state procurement laws and procurement to facilitate import substitution, support for small business, and tax rebates.
In 2009, the budget deficit ran to 5.9% of GDP, financed from Russia’s sovereign wealth funds. A significant amound of funding for the anti-crisis plan will come from these planned budget cuts, say analysts. Funds will also be drawn down from the National Welfare Fund, a sovereign wealth fund………………………………………..Full Article: Source

What Nicolas Maduro Should Learn From Africa

Posted on 23 January 2015 by VRS  |  Email |Print

For many years Africa has been susceptible to the volatile nature of the commodities markets, resulting in long periods of economic stagnation, accompanied by reductions in social spending and living standards. To counteract these effects, countries like Botswana have created sovereign wealth funds to better manage the revenue from the extractive industries and invest in long-term development.
Policy instruments like deploying sovereign wealth funds might seem obvious to adopt but many governments often face opposition to their creation, even if they are a proven mechanism to better distribute the surplus of the extractive industries. The creation of a sovereign wealth fund directly affect such elites as the revenues of the national natural resources are more transparently and better distributed amongst the population………………………………………..Full Article: Source

Temasek building icons to pay it forward

Posted on 22 January 2015 by VRS  |  Email |Print

Big-Ticket deals have been the calling card of Temasek Holdings but a shift in strategy could be under way and you only have to go to the zoo to see it. The zoo might not be the most obvious place one can think of to observe the operations of one of the corporate world’s biggest beasts. But, in fact, the investment firm’s latest undertaking illustrates how its game plan is evolving.
The high-profile deal involves Temasek partnering the Singapore Tourism Board (STB) to develop the Mandai area, which includes the Singapore Zoo, Night Safari, River Safari and Jurong Bird Park. It makes perfect sense on one level: Temasek holds a majority stake in Wildlife Reserves, the entity that owns the attractions, so that alone should give it first dibs on any future development………………………………………..Full Article: Source

Investment portfolio of the State Oil Fund of Azerbaijan for 2015 limited to AZN 28.2 bn

Posted on 22 January 2015 by VRS  |  Email |Print

The major areas (investment program) for the use of the SOFAZ means in 2015 have been approved by the decree on SOFAZ budget issued by Ilham Aliyev, President of Azerbaijan. In accordance with the program, the Fund should pursue the investment policy aimed to get maximum high revenue with minimization of risks from assets loss.
At the same time, the investment portfolio of SOFAZ can be divided into the following components: debt commitments and money market instruments – 80% of funds, stocks – 10%, real estate – 5%, physical gold – 5%. The profitability benchmark for the debt/money component is the rate not lower than LIBOR for 3 months and for the stock component - MSCI World Index………………………………………..Full Article: Source

Alberta has no reason to panic, at least not yet

Posted on 22 January 2015 by VRS  |  Email |Print

A dramatic fall in oil prices, predicted to reduce provincial government resource revenues in Alberta by $7 billion — a drop of at least 16 per cent — has generated intense speculation regarding public expenditure cuts, tax changes and, of course, the introduction of a general sales tax.
This type of precipitous price drop has happened before. And as before, the calls inevitably arise that more resource revenues should be saved in the Heritage Fund and used to stabilize government revenues during these negative commodity price shocks. But the real culprit is the Alberta government’s tendency to use an upturn in resource prices to enrich spending rather than build up a sovereign wealth fund………………………………………..Full Article: Source

Zeti: Malaysia’s fundamentals still intact

Posted on 21 January 2015 by VRS  |  Email |Print

Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz did not give away any indication that there is going to be a hike in the current overnight policy rate of 3.25%, as it is still accommodative for the country’s economic growth.
Zeti said short-term investors might have fled from the domestic market but the country had other long-term investors such as pension funds, sovereign wealth funds and other central banks………………………………………..Full Article: Source

Azerbaijani President approves revenues and expenditures of State Oil Fund budget for 2015

Posted on 20 January 2015 by VRS  |  Email |Print

President Ilham Aliyev has signed a decree on the budget of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for 2015.
According to APA-Economics, with the decree, revenues of the budget of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for 2015 were approved as AZN 10 246 611,9 thousand, and expenditures as AZN 11 813 909,2 thousand………………………………………..Full Article: Source

Nigeria: Oil Price Crash and the CBN Response

Posted on 20 January 2015 by VRS  |  Email |Print

Little is there in the Sovereign Wealth Fund (which is a replacement for the Excess Crude Account with three separate funds: stabilization fund, infrastructure fund and future generations fund has only $1 billion as initial take-off capital in 2011) (the Nigerian sovereign wealth fund is the third-largest in sub-Saharan Africa, after the $6.9bn Botswana and $5bn Angola funds, although these are tiny compared to those of oil producers such as Saudi Arabia,
Norway and Abu Dhabi, which each have more than $600bn in assets) to act as reliable and sustainable buffer for the economy – unlike other countries like Qatar, UAE, Saudi Arabia and Russia. This is one of the economicides committed by the Nigerian State against itself by the very manner of its budgetary expenditure profile. Nigeria never plans for the future………………………………………..Full Article: Source

SOFAZ reduces 2015 expenditures up to AZN 500 mln

Posted on 16 January 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) will reduce its 2015 expenditures. APA-Economics reports that SOFAZ will reduce its expenditures AZN 491 mln to AZN 11.814 bln. According to budget package for 2015, Fund’s incomes were amounted to AZN 10.246 bln, expenditures – to AZN 12.305 bln. Fund’a budget deficit was forecasted ay AZN 2.1 bln.
Reduction of expenditures caused decline of deficit to AZN 1.6 bln. 88% or AZN 10.388 bln f expenditures will be transferred to the budget. Moreover, AZN 33.3 mln will be spent to management of the Fund. Remaining AZN 1.393 bln is intended for Fund’s projects………………………………………..Full Article: Source

Copper price fall bad news for Chile, but not disaster

Posted on 16 January 2015 by VRS  |  Email |Print

Public finances remain fairly healthy, key for President Michelle Bachelet’s government, which is pressing forward with a reform drive despite the slowdown and does not want to renege on its promises to increase public spending. Chile’s coffers include $14.8 billion (as of November) stashed away in a sovereign wealth fund.
So the government may be tapping that savings fund soon. “That’s precisely the role of the sovereign wealth fund, you save during the good years to use in years like this one,” said Alberto Ramos, co-head of Latin America economic research at Goldman Sachs………………………………………..Full Article: Source

The Oil Fund of Azerbaijan is not able to finance the national program “fiber to home”

Posted on 15 January 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan Republic (SOFAZ) is not able to finance implementation of the national program for development of fiber-optic network “fiber to home”. According to Elmir Velizadeh, Deputy Minister of Communications and High Technologies, the Ministry is trying to raise funds from other sources including loans to implement this project.
“We will try to implement the project using loan facilities. Previously we expected that the project would be financed by SOFAZ”, - Velizadeh said. Earlier the SOFAZ budget provided for allocation of AZN 100 million for that project but the financing had never been opened………………………………………..Full Article: Source

Aviva share price steady as Norwegian fund backs Friends Life deal

Posted on 15 January 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund has significantly increased its stakes in Aviva Plc and Friends Life Group since the £5.1 merger between the two companies was unveiled at the end of last year, the Financial Times has reported. Norway’s $860 billion oil fund has bought about £100 million worth of shares in the two FTSE 100 insurers.
Aviva’s share price has added about 0.3 percent in London so far today, outperforming the broader market, with the FTSE 100 index having lost just under one percent in morning trading. Friends Life’s share price is also about 0.3 percent up………………………………………..Full Article: Source

banner
banner
April 2015
M T W T F S S
« Mar    
 12345
6789101112
13141516171819
20212223242526
27282930