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Norway’s $830 billion wealth fund: Brexit not a significant risk

Posted on 10 March 2016 by VRS  |  Email |Print

Norway’s $830 billion sovereign wealth fund does not see the prospect of Britain leaving the EU as a significant risk to its investments, its chief executive told Reuters on Wednesday.
“We will continue to be a significant investor in the UK at about the same level as we are today and probably even increasing our investments there going forward no matter what happens,” Yngve Slyngstad said in an interview. “All changes entail some risk but we would not categorize it as a significant risk.”……………………………………….Full Article: Source

Falcon Private Bank says no business impact from Malaysia probe

Posted on 10 March 2016 by VRS  |  Email |Print

Falcon Private Bank has not seen an impact on its business following publicity about an investigation into the activities of a Malaysian sovereign wealth fund, the Swiss bank’s chief executive said. The Wall Street Journal reported last year that investigators had traced nearly $700 million from an account at Falcon Private Bank in Singapore to accounts in Malaysia they believed belonged to Malaysia’s Prime Minister Najib Razak.
Falcon, owned by Abu Dhabi sovereign wealth fund International Petroleum Investment Company, has said it is in contact with Singapore’s central bank and will cooperate with authorities. The Malaysian fund, 1Malaysia Development Berhad, is being investigated by several authorities, including Malaysia, Switzerland and the United States………………………………………..Full Article: Source

Singapore’s GIC makes first African investments

Posted on 09 March 2016 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has invested $100 million in two African-focused private equity players, Actis and RMB Westport, Deal Street Asia has reported. This is the first time that GIC, which has investment in the US, Europe and Asia, has invested in Africa. Its lack of direct presence on the continent could be one of the reasons why it decided to invest indirectly via Actis and RMB Westport, private equity portal PERE said.
The state-owned investment arm said it was investing in Actis Real Estate Fund III that seeks to raise $400 million and RMB Westport’s Real Estate Development Fund II that’s looking for up to $450 million………………………………………..Full Article: Source

Norway’s massive wealth fund had historically bad month

Posted on 08 March 2016 by VRS  |  Email |Print

Norway said on Friday it had, for the first time, drawn out more cash from its huge sovereign wealth fund in January than it paid in, as the oil-rich nation grapples with plummeting crude prices.” State oil revenues have fallen considerably, and for the first time in a long time have become less than the national budget deficit,” state secretary for finance Paal Bjornestad said in an email to AFP.
The government withdrew in January a net 6.7 billion kroner (€713 million, $780 million) from the fund — much more than the 4.9 billion kroner forecast last year by the right-wing government for the whole of 2016………………………………………..Full Article: Source

No End in Sight for Malaysia’s Power Struggle as 1MDB Scandal Deepens

Posted on 08 March 2016 by VRS  |  Email |Print

A new report by the Wall Street Journal (WSJ) alleges that deposits into the personal account of Malaysia’s Prime Minister Najib Razak topped $1 billion, thereby threatening to deepen an ongoing scandal surrounding the premier’s involvement in mismanaging money linked to a beleaguered state fund.
The WSJ report, just the latest in a series of damaging reports by the newspaper which started in July 2015, cites sources as saying that most of the money deposited into Najib’s account is linked to the 1 Malaysia Development Berhad (1MDB), a debt-ridden state investment fund at the center of a high-profile corruption scandal. Najib has denied using government funds for personal gain………………………………………..Full Article: Source

Carillion to partner with Oman’s sovereign wealth fund to build hospitals

Posted on 04 March 2016 by VRS  |  Email |Print

Contractor Carillion has signed an agreement with Oman’s sovereign wealth fund that could see the pair developing a number of hospital projects together across the Sultanate. In a note accompanying its full-year accounts for 2015, Carillion said there was “growing interest in private finance” across the Arabian Gulf.
“We have signed a memorandum of understanding with the Oman Investment Fund, a sovereign wealth fund of the Sultanate of Oman, to develop opportunities for Public Private Partnership projects in the healthcare sector, using our experience as a global market leader in this form of project finance,” the company said………………………………………..Full Article: Source

GIC to become shareholder in Railpool

Posted on 03 March 2016 by VRS  |  Email |Print

Singaporean sovereign wealth fund GIC joins funds managed by Oaktree Capital Management in investing in Railpool’s ongoing fleet expansion and becomes a 49% shareholder in the company. The combined shareholder group will enable Railpool to continue its successful growth, enter into new business areas and selectively make acquisitions.
“We are confident that we are now ideally positioned to capture the full potential the rolling stock leasing market offers. Oaktree gave us the possibility to upgrade our operations and successfully grow our business while the additional investment of GIC is now securing the continuation of locomotive fleet expansion as well as investing in other growth markets.”……………………………………….Full Article: Source

Sovereign funds sold equities across the board in 2015, fleeing broad indices

Posted on 02 March 2016 by VRS  |  Email |Print

Sales by sovereign wealth funds of $46.4 billion of assets in 2015 involved heavy redemptions of “passive” or index-tracking equity strategies in both developed and emerging markets, new data showed on Tuesday.
Following a report last week of the headline $46.4 billion outflows from external managers, research firm eVestment this week revealed a detailed breakdown. It shows sovereign wealth fund (SWF) withdrawals were concentrated in equities, largely indiscriminate, and from the most liquid segments of their investments………………………………………..Full Article: Source

Singapore GIC interested in buying stake: IDBI chief

Posted on 02 March 2016 by VRS  |  Email |Print

Public sector lender IDBI Bank on Tuesday said international institutions like CDC of England and GIC of Singapore have shown some interest in buying stake in the bank. There were media reports that the government was in talks with the International Finance Corporation (IFC), a World Bank Group member, to sell up to 15% up stake in the struggling infra-lender- turned commercial bank.
The government owns around 80% stake in IDBI Bank and Finance Minister Arun Jaitley while presenting the Budget on Monday had said the government was open to paring its stake in IDBI Bank below 50% through a strategic stake sale………………………………………..Full Article: Source

Blackstone, TPG, Temasek plan to acquire KIMS hospital chain

Posted on 02 March 2016 by VRS  |  Email |Print

Ascent Capital and OrbiMed Advisors will sell their combined 40% stake, while the promoters will dilute an additional 15-20% for a deal worth $300 million. Kerala Institute of Medical Sciences (KIMS), the hospital chain with a presence in India and West Asia, has been approached by 8-10 large buyout funds that want to acquire a majority stake in it.
Ascent Capital Pvt. Ltd and OrbiMed Advisors LLC, private equity (PE) investors in KIMS, will sell their combined 40% stake, while the promoters will dilute an additional 15-20% for a deal worth $300 million (Rs.2,050 crore), according to two people close to the development………………………………………..Full Article: Source

How GEJ handed Nigeria’s sovereign wealth fund to Blair

Posted on 02 March 2016 by VRS  |  Email |Print

The activities of the former prime minister of United Kingdom during the past administration led by Goodluck Jonathan, has been revealed. In an explosive new biography by investigative journalist, Tom Bower, Blair comes under the spotlight, Sahara Reporters reports.
Blair was said to have requested a one-on-one meeting with the former president, Jonathan in 2010, apparently to offer help in reconciling the country’s Muslims and Christians. Blair was said to have charmed the president and satisfied his ego………………………………………..Full Article: Source

New Zealand Superannuation Fund awards Ramius $200m mandate

Posted on 01 March 2016 by VRS  |  Email |Print

The NZ Super Fund has appointed a subsidiary of Ramius LLC, the global investment management business of Cowen Group, Inc., to manage a US$200 million merger arbitrage mandate. The mandate focuses on investment opportunities arising through merger and acquisition transactions, predominately in listed companies in North America and Europe.
This is the NZ Super Fund’s first investment in merger arbitrage, a strategy which aims to earn steady returns over the long-term by realising value from targeted merger and acquisition deals across a broad cross section of industries, and managing any risks, including the potential for any individual deal failure………………………………………..Full Article: Source

GIC to invest US$388 million in Indonesian retail operator

Posted on 29 February 2016 by VRS  |  Email |Print

Singapore’s sovereign wealth fund (SWF), GIC Private Limited (GIC), has entered into a partnership with PT Trans Retail, the main retail arm of Indonesian conglomerate CT Corp, to invest an aggregate of 5.2 trillion rupiah (US$388.33 million) in Indonesian leading retailer, Trans Retail.
Trans Retail mainly operates hypermarkets, supermarkets, and cash and carry stores under the Carrefour and TRANSmart brands. GIC said in a statement on February 24 that the collaboration would allow Trans Retail to capture the full potential of Indonesia’s modern retail market………………………………………..Full Article: Source

Mubadala is said to explore SR Technics sale, Satellite IPO

Posted on 29 February 2016 by VRS  |  Email |Print

Mubadala Development Co, the Abu Dhabi investment fund, is considering the sale of Swiss aircraft-maintenance business SR Technics and an initial public offering of Yahsat Satellite as the emirate reviews its largest state- owned companies, according to four people with knowledge of the matter.
The government-backed fund has held talks on the possible transactions with banks and any deal will depend on market conditions, the people said, asking not to be identified because the talks are private. Mubadala is also seeking the sale of a stake in US chipmaker Globalfoundries Inc, one of the people said………………………………………..Full Article: Source

ICD in talks to fund new Atlantis hotel, DIFC tower – report

Posted on 29 February 2016 by VRS  |  Email |Print

State-owned Investment Corporation of Dubai (ICD) is talking to banks to raise around $1.1 billion in loans to build two major projects in the emirate, Bloomberg has reported. The newswire, which cited three people with knowledge of the plan, said that ICD is seeking a $700 million, 10-year loan to fund the construction of a second Atlantis resort on the Palm Jumeirah.
Announced at the beginning of February, the Royal Atlantis Resort and Residences is expected to take two years to complete. Master developer Nakheel has already signed building contracts with Ssanyong Engineering & Construction, China State Construction Engineering Corporation and Six Construct………………………………………..Full Article: Source

“Samruk-Kazyna” supported the FIS Ski Jumping World Cup

Posted on 29 February 2016 by VRS  |  Email |Print

“Samruk-Kazyna” Sovereign Wealth Fund is the general partner for FIS Ski Jumping World Cup which is held on 27-28 february in Almaty. Samruk-Kazyna was founded in 2008. The key purpose of “Samruk-Kazyna” is to manage shares (interests) of national development institutions, national companies, and other legal entities it owns to maximize their long-term value and competitiveness in the world markets.
Sovereign Wealth Fund Samruk-Kazyna is established in order to enhance competitiveness and sustainability of national economy and prevent any potential negative impact of changes in the world markets on economic growth of the country………………………………………..Full Article: Source

S&P lowers Kazakh Sovereign Wealth Fund’s rating

Posted on 26 February 2016 by VRS  |  Email |Print

Standard & Poor’s Ratings Services lowered its long- and short-term foreign and local currency issuer credit ratings on sovereign wealth fund and joint stock company Samruk-Kazyna to ‘BBB-/A-3′ from ‘BBB/A-2′. The outlook is negative, the agency said Feb. 25.
S&P also lowered our Kazakhstan national scale rating on the company to ‘kzAA’ from ‘kzAA+’. At the same time, S&P lowered our ratings on Samruk-Kazyna’s senior unsecured debt to ‘BBB-’ from ‘BBB’. The downgrade follows a similar action on the sovereign, the statement said………………………………………..Full Article: Source

Canadian pension funds and Kuwait to buy London City Airport

Posted on 26 February 2016 by VRS  |  Email |Print

Three Canadian pension funds and the Kuwait Investment Authority have won the takeover battle for London City Airport with an offer of about £2bn. A consortium made up of Ontario Teachers’ Pension Plan (OTPP), Borealis, AIMCo and Wren House, an infrastructure investment vehicle owned by the sovereign wealth fund of Kuwait, are understood to have struck a deal to buy the airport from Global Infrastructure Partners (GIP), the giant private equity firm.
The group saw off stiff competition for the site, including bids from Chinese airlines owner HNA and Cheung Kong Infrastructure Holdings, the firm controlled by Li Ka-Shing, Asia’s richest man………………………………………..Full Article: Source

GIC expands Indonesia exposure, buys into retail

Posted on 25 February 2016 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC has increased its exposure to Indonesia’s growing middle class by investing 5.2 trillion rupiah ($385 million) in Trans Retail, the main retail arm of conglomerate CT Corp. CT Corp’s businesses span television and online media to retail, banking and amusement parks.
Its retail arm Trans Retail, formerly a local unit of French retail group Carrefour, currently runs 86 hypermarkets and supermarkets in the country under the Carrefour and TRANSmart brands. GIC said in a press release on Wednesday that Trans Retail is taking advantage of the rapidly expanding consumer class as Indonesia’s retail scene shifts from traditional mom-and-pop stores to modern trade formats………………………………………..Full Article: Source

Abu Dhabi Crown Prince visits ADIA

Posted on 25 February 2016 by VRS  |  Email |Print

His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, yesterday paid a visit to the Abu Dhabi Investment Authority (ADIA). During the visit, Sheikh Mohamed met with members of the ADIA’s Board of Directors, heads and senior officials.
Sheikh Mohamed was received by Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, Sheikh Hamed Bin Zayed Al Nahyan, Chief of the Abu Dhabi Crown Prince’s Court and Managing Director of Abu Dhabi Investment Authority (ADIA), Sheikh Mohammed Bin Khalifa Al Nahyan, Executive Council Member and a number of officials of the ADIA………………………………………..Full Article: Source

With oil at $30-$40, SWFs may pull $404 bln from stocks in 2016

Posted on 24 February 2016 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) might take a further $404 billion out of global listed equities in 2016 if oil prices stay between $30 and $40 a barrel, after pulling out about half that amount last year, a research organisation said on Monday.
The largest SWFs, accounting for about 89 percent of managed assets, sold $213.37 billion of listed equities in 2015, the Sovereign Wealth Fund Institute (SWFI) said, after an oil price crash triggered massive fund redemptions and relentless selling of foreign currency reserves by producers………………………………………..Full Article: Source

Sovereign Wealth Funds May Sell $404 Billion of Equities

Posted on 23 February 2016 by VRS  |  Email |Print

Sovereign wealth funds may withdraw $404.3 billion from global stock markets this year if crude prices stay between $30 to $40 per barrel as oil-rich nations seek to shore up their finances, according to the Sovereign Wealth Fund Institute.
The value of listed equities held by the world’s largest wealth funds will probably drop to $2.64 trillion this year, from about $3.04 trillion at the end of 2015, the Las Vegas-based SWFI said in an e-mailed report sent Monday. Withdrawals are set to approximately double from last year, when sovereign funds sold about $213.4 billion of equities, it said………………………………………..Full Article: Source

SWFs of oil-rich countries are selling stocks big time

Posted on 23 February 2016 by VRS  |  Email |Print

Sovereign wealth funds of oil-rich countries like Norway, Saudi Arabia, Russia and Qatar sold more than $213 billion worth of stocks in 2015, a report by Sovereign Wealth Fund Institute said. With oil prices staying low, the global sell-off is likely to continue in 2016. Wealth funds could withdraw more than $404 billion from global stock markets if oil prices remain between $30 and $40 per barrel this year, the SWFI said.
Crude prices collapsed more than 70% in the last 18 months. The plunge means many oil countries are facing growing holes in their budgets. Rather than raising taxes or cutting spending, many have resorted to tapping their rainy day funds………………………………………..Full Article: Source

Are $7 Trillion Sovereign Wealth Funds Behind Market Plunge?

Posted on 23 February 2016 by VRS  |  Email |Print

2016 has featured a poorly explained stock market plunge. Without a clear explanation, investors are at a loss about how to make intelligent decisions. If oil is the culprit, should investors buy now that OPEC and others are getting together to freeze production? If markets China’s slowing growth and debt woes are the cause, should they cheer now that China has replaced its markets regulator or will its markets continue to lurch awkwardly?
Since these stories are blasted around the world, it is hard to see how they could give an investor any advantage in trying to beat the market. I think that the real reason for market movements — the ebb and flow of capital to and from equities — is considered protected speech by securities regulators………………………………………..Full Article: Source

SOFAZ sells about $177M to Azerbaijani banks Feb. 22

Posted on 23 February 2016 by VRS  |  Email |Print

Azerbaijani state oil fund SOFAZ sold $177.45 million to 13 local banks through auctions held by Azerbaijan’s Central Bank (CBA) Feb. 22. “Despite that SOFAZ offered $200 million for sale through auctions, $177.45 million were sold to the banks,” the fund has said.
Thus, SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to Azerbaijani state budget, which are envisaged to stand at six billion Azerbaijani manats in 2016………………………………………..Full Article: Source

Here’s How Sovereign Wealth Funds Can Save Yahoo

Posted on 23 February 2016 by VRS  |  Email |Print

The board of directors at Yahoo! Inc. made it public they formed an independent committee to begin looking at strategic alternatives for the fabled internet company. One such alternative is spinning off its core business. Yahoo announced that a new committee of directors would reach out to potentially interest parties and make recommendations on any proposed deals.
Assisting Yahoo in this strategic process are Goldman Sachs, JPMorgan & Chase and PJT Partners. Cravath, Swaine & Moore LLP was hired by Yahoo as a legal advisor regarding this situation. Yahoo continues to move forward on its plans to split its core business from its 15% stake in Alibaba Group. Yahoo’s CEO Marissa Mayer still believes the company can turn itself around……………………………………….Full Article: Source

Here’s why sovereign wealth funds are selling stocks

Posted on 22 February 2016 by VRS  |  Email |Print

The world’s capital markets have been roiled this year by rumors that sovereign wealth funds of oil-dependent states are selling foreign assets to redirect money home to plug budget deficits and repatriate capital. Some institutions, such as Malaysia’s large pension funds and the Saudi Arabian Monetary Agency, the kingdom’s central bank, are indeed answering calls by their governments to help bolster their domestic economies in different ways.
It appears, however, that the markets are also worried that major sovereign savings funds like the Abu Dhabi Investment Authority (ADIA) and the Kuwait Investment Authority may be major sellers of stocks, suggesting that they are pulling out of the markets because they are being called upon to fund government spending plans in the face of low oil prices………………………………………..Full Article: Source

Bain, GIC, Advent buy $350m stake in Quest

Posted on 19 February 2016 by VRS  |  Email |Print

US private equity giant Bain Capital, Singapore’s GIC and Advent International have invested $350 million to buy minority stakes in Bengaluru-based engineering services company Quest Global.
The trio have completely bought out the shares held by global private equity firm Warburg Pincus that had invested $75 million in Quest for a 26% stake in 2010. Other sellers included some angel and minority investors. There was no fresh issue of shares, and therefore no infusion of funds into the company. TOI was the first to report the imminent deal in its edition on December 24 last year………………………………………..Full Article: Source

Future Fund: Oaktree bears brunt of $1bn cull

Posted on 19 February 2016 by VRS  |  Email |Print

US investment powerhouse, Oaktree Capital, has borne the brunt of the Future Fund’s recent $1 billion cull of its private equity portfolio as the nation’s sovereign wealth fund expands its cash holdings amid heightened ­concerns about the health of the global economy.
In a rare insight into the $118.4bn vehicle’s investment moves, The Australian can reveal that close to 3.5 per cent of the fund was allocated to Oaktree, although this exposure spanned the LosAngeles-based firm’s various alternative asset classes, which include distressed debt and high yield bonds. At the end of last year the Future Fund trimmed back this holding, skimming close to $500m from its near $4bn investment mandate with the firm………………………………………..Full Article: Source

Norway to tap rainy day fund

Posted on 19 February 2016 by VRS  |  Email |Print

Norway’s central bank can continue to cut interest rates and the government should use short-term fiscal spending to lift the economy as the boom of the last two decades grinds to a halt, the country’s central bank chief said. He also said more than $9 billion would be taken from Norway’s sovereign wealth fund this year, the first net withdrawal from the rainy day account.
Economic growth in Norway, Western Europe’s top oil and gas producer, hit a six-year low in 2015 while unemployment rose to a 10-year high as the price of crude tumbled, Governor Oeystein Olsen said in his annual policy address to business leaders, politicians and academics………………………………………..Full Article: Source

Here’s why sovereign wealth funds are selling stocks

Posted on 19 February 2016 by VRS  |  Email |Print

The world’s capital markets have been roiled this year by rumors that sovereign wealth funds of oil-dependent states are selling foreign assets to redirect money home to plug budget deficits and repatriate capital. Some institutions, such as Malaysia’s large pension funds and the Saudi Arabian Monetary Agency, the kingdom’s central bank, are indeed answering calls by their governments to help bolster their domestic economies in different ways.
It appears, however, that the markets are also worried that major sovereign savings funds like the Abu Dhabi Investment Authority (ADIA) and the Kuwait Investment Authority may be major sellers of stocks, suggesting that they are pulling out of the markets because they are being called upon to fund government spending plans in the face of low oil prices………………………………………..Full Article: Source

Norway’s Giant Sovereign Wealth Fund is Buying the Bank-Stock Dip

Posted on 17 February 2016 by VRS  |  Email |Print

Sovereign wealth funds, pressured by stubbornly low oil prices, have been roundly blamed as one culprit in the recent rout across global markets. These funds, government-owned investment pools, have reportedly been forced to sell some of their stocks and bonds. One analyst noted recently estimated that financial shares look most vulnerable to sovereign wealth fund selling, with global stocks possibly coming under $80 billion of selling in 2016, assuming that oil prices stick around $30 a barrel.
Against this fraught backdrop, news that Norges Bank, Norway’s SWF and the largest in the world, is buying banks stocks has been warmly received. Bloomberg’s Jeffrey Voegeli noted that Norges Bank boosted its stake in Credit Suisse (CSGN) as they plunged in recent weeks………………………………………..Full Article: Source

Middle East funding for Indian roads

Posted on 17 February 2016 by VRS  |  Email |Print

Funding from the Middle East looks set to help develop new Indian highway projects. Some $15.6 billion from the Abu Dhabi Investment Authority (ADIA), a UAE-based sovereign wealth fund, will be directed towards highway projects in India. This will be used for 50 highway projects in India on a toll-operate-transfer (TOT) basis.
The Indian Government is planning to award 104 highway projects under the TOT model that will allow investments by private equity firms, infrastructure developers and institutional investors such as pension and wealth funds. The TOT model will also allow the government to hand over operations of tolled roads to the private sector………………………………………..Full Article: Source

Are Sovereign Wealth Funds Roiling Global Financial Markets?

Posted on 16 February 2016 by VRS  |  Email |Print

We’ve all be witnessing incredible selling pressure on financial markets all over the world, with new multi-year lows showing up in equities and various asset classes. After years of relentless bull market action, we’re seeing a substantial change in the way that markets behave.
The one question that many investors have been asking as of late is how did equity markets become so closely correlated with the price of crude oil? Enter Sovereign Wealth Funds into the picture. There has been some recent speculation regarding large sovereign wealth funds (SWF’s) heavily liquidating assets. If true, it’s not difficult to imagine which ones are doing the selling………………………………………..Full Article: Source

KIA to invest in distressed Indian power assets

Posted on 16 February 2016 by VRS  |  Email |Print

Kuwait’s sovereign wealth fund is teaming up with group of investors to target failing power assets in India. The Kuwait Investment Authority, along with Canadian pension fund, Caisse de depot et placement du Quebec, the State General Reserve Fund of Oman, Tata Power and ICIC Venture will create a joint venture funded specifically with the aim of buying up troubled power assets.
The KIA, along with the Canadian and Omani funds will invest around $650 million of equity to create a dedicated pool of $850 million, the Economic Times of India reported yesterday. The joint venture will eventually amass a pool of a reported $4 billion to $5 billion to use to buyout financially troubled power assets. A formal announcement is expected by end February………………………………………..Full Article: Source

Saudi sovereign fund Sanabil buys 20% of Almana General Hospitals

Posted on 16 February 2016 by VRS  |  Email |Print

Saudi Arabia’s government-owned fund Sanabil Investments has acquired a 20 per cent stake in Ebrahim Mohammed Almana & Brothers Co, the owner of the Almana General Hospitals (AGH), a statement from one of the advisers said on Sunday.
No financial terms were disclosed in the statement from GIB Capital, the financial adviser to AGH, but it said the transaction formed part of Sanabil’s strategy to invest in, and to help diversify, the Saudi economy. Wholly owned by the Public Investment Fund (PIF), Sanabil was set up in 2009 with 20 billion riyals ($5.33 billion, Dh19.57 billion) of initial capital and a mandate to invest in less conservative assets — as opposed to the kingdom’s traditional stance, which has been to park large sums in low-risk US Treasuries……………………………………….Full Article: Source

KIA to invest in distressed Indian power assets

Posted on 15 February 2016 by VRS  |  Email |Print

Kuwait’s sovereign wealth fund is teaming up with group of investors to target failing power assets in India. The Kuwait Investment Authority, along with Canadian pension fund, Caisse de depot et placement du Quebec, the State General Reserve Fund of Oman, Tata Power and ICIC Venture will create a joint venture funded specifically with the aim of buying up troubled power assets.
The KIA, along with the Canadian and Omani funds will invest around $650 million of equity to create a dedicated pool of $850 million, the Economic Times of India reported yesterday. The joint venture will eventually amass a pool of a reported $4 billion to $5 billion to use to buyout financially troubled power assets. A formal announcement is expected by end February………………………………………..Full Article: Source

Saudi sovereign fund Sanabil buys 20 pct of Almana General Hospitals

Posted on 15 February 2016 by VRS  |  Email |Print

Saudi Arabia’s government-owned fund Sanabil Investments has acquired a 20 percent stake in Ebrahim Mohammed Almana & Brothers Co, the owner of the Almana General Hospitals (AGH), a statement from one of the advisers said. No financial terms were disclosed in the statement from GIB Capital, the financial adviser to AGH, but it said the transaction formed part of Sanabil’s strategy to invest in, and to help diversify, the Saudi economy.
Wholly owned by the Public Investment Fund (PIF), Sanabil was set up in 2009 with 20 billion riyals ($5.33 billion) of initial capital and a mandate to invest in less conservative assets — as opposed to the kingdom’s traditional stance which has been to park large sums in low-risk U.S. Treasuries………………………………………..Full Article: Source

Sovereign Wealth Funds: This Could Trigger a Stock Market Crash in 2016

Posted on 15 February 2016 by VRS  |  Email |Print

Who or what is triggering the sell-off in the markets? The first weeks of 2016 have been turbulent at best. Nobody can take the blame exclusively. Yet there are distinct market forces that have been liquidating large positions. Among those responsible, the oil-producing countries’ sovereign wealth funds (SWFs) may be the ones to blame for the stock market crash in 2016.
Rothschild & Sons Deputy Chairman Paolo Scaroni told Bloomberg, “They [SWFs] are selling, they are selling a lot… This is a key reason I believe that the stocks of the big financial institutions have been hit so hard in the market selloff.”……………………………………….Full Article: Source

`Brexit’ Won’t Scare Norway Wealth Fund Away From London Deals

Posted on 12 February 2016 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund says the risk of a British exit from the European Union won’t diminish its interest in the U.K. capital as a place to buy property. “A city like London - regardless of Brexit or what happens in the near term - will be a global powerhouse as a financial city for many, many years to come,” Karsten Kallevig, CEO of real estate for Norway’s $810 billion sovereign wealth fund, said.
“I don’t see what other cities can compete with London. It’s such an important city.” Kallevig joined the fund in 2010, the year Norway’s government allowed it to expand into real estate………………………………………..Full Article: Source

World’s Biggest Wealth Fund Gets Political Pushback in Asset Bid

Posted on 12 February 2016 by VRS  |  Email |Print

Norway’s biggest political party says the country’s giant wealth fund needs to rethink its proposed entry into the $20 trillion infrastructure market. “With what we’re seeing now with economic developments globally, and the short-term cost of that for Norway, it’s time to put the brakes on,” said Torstein Tvedt Solberg, a Labor Party politician who sits on the parliamentary finance committee that helps oversee the Norwegian sovereign wealth fund.
“We shouldn’t undergo structural shifts too fast” as there are “too many uncertainties with the oversight and structure of the fund.” The $810 billion investor has long lobbied for permission from the Norwegian government to add infrastructure to its mandate………………………………………..Full Article: Source

Finance Minister invites UAE to invest in India’s sovereign wealth fund NIIF

Posted on 12 February 2016 by VRS  |  Email |Print

Finance Minister Arun Jaitley has said that investors from the UAE could participate in India’s maiden sovereign wealth fund National Investment and Infrastructure Fund (NIIF), which has been set up to fund infrastructure projects, during his meeting with visiting UAE Minister of Economy Sultan Al Mansoori.
The Rs 40,000-crore NIIF will have government holding of 49 per cent and the rest will be of private investors. UAE Minister Mansoori notified that the various institutions from Gulf have already invested in sectors, like infrastructure. He reiterated that the different agencies of UAE will continue their efforts to widen their relationship with India………………………………………..Full Article: Source

Sovereign wealth funds hike India equity

Posted on 11 February 2016 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) are steadily increasing their investments in the Indian equity market and have become the third-largest category of overseas investors with a share of nearly nine per cent in the total foreign investment in the domestic stock market.
Data from National Securities Depository Limited (NSDL), which maintains information on flows from foreign institutional investors (FIIs) in the equity and debt segment, show that SWFs as a category has moved from sixth to third between 2012 and 2015………………………………………..Full Article: Source

Arun Jaitley invites UAE to invest in India’s wealth fund NIIF

Posted on 11 February 2016 by VRS  |  Email |Print

Seeking investments from the UAE, Finance Minister Arun Jaitley on Wednesday said investors from the Gulf region could participate in India’s maiden sovereign wealth fund NIIF, which has been set up to fund infrastructure projects.
This was emphasised by Jaitley during his meeting with the visiting UAE Minister of Economy Sultan Al Mansoori here. Both the countries also stressed on need for increasing cooperation in the fields of innovation and small and medium enterprises, a finance ministry statement said………………………………………..Full Article: Source

Nomura head blames SWFs for Japan sell-off

Posted on 11 February 2016 by VRS  |  Email |Print

The head of Japan’s biggest brokerage believes the country’s battered equity market will rebound once oil-dependent sovereign wealth funds run out of stocks to sell. Koji Nagai, chief executive of Nomura, said Japanese shares had been targeted by Middle Eastern SWFs, which have been under pressure from dropping crude prices, because of the market’s abundant liquidity.
When they do stop selling, investors can expect a “sharp rebound”, he said. Brokers estimate the biggest petrodollar-funded SWFs held a collective 6 per cent of the Japanese equity market in mid-2015………………………………………..Full Article: Source

PM invites Qatar Investment Authority to explore investment opportunities in Pakistan

Posted on 11 February 2016 by VRS  |  Email |Print

Prime Minister Muhammad Nawaz Sharif inviting the Qatar Investment Authority to explore the investment opportunities in Pakistan on Wednesday said that Pakistan was an ideal destination for investors. The Prime Minister while talking to Emir of Qatar Sheikh Tamim bin Hamad Al Thani here at Aiwan-e-Emiri said Pakistan especially offers attractive returns for investment in power sector, adding, Qatar Petroleum and Gas could positively consider investing in the oil and gas exploration sector of Pakistan.
The main focus of the Prime Minister’s two-day official visit to Qatar is to interact with the Qatari leadership and to enhance bilateral relations in various fields including energy cooperation, trade and investment, defence and increase employment opportunities for the Pakistani workforce in Qatar………………………………………..Full Article: Source

SOFAZ not plans to up gold reserves

Posted on 10 February 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has no plans to increase its gold reserves in 2016, a source in the Fund told Trend. Currently, SOFAZ’s gold reserves portfolio includes 30,175 kilograms of gold, which accounts for about 3.5 percent of total assets.
“Under SOFAZ’s funds management rules, the portion of gold reserves in total assets shouldn’t exceed the five percent limit of the fund’s investment portfolio,” the source said, adding that the issue is not in the agenda of the Fund. The Fund recently started investing in real estate funds, as the share of investments that can be made in real estate has been increased from 5 to 10 percent………………………………………..Full Article: Source

India, UAE to scale up trade to $100 bn

Posted on 10 February 2016 by VRS  |  Email |Print

India and the UAE will be looking to majorly scale up their bilateral trade to $100 billion in the coming years during the visit of Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan to New Delhi beginning Wednesday. India is the UAE’s largest trading partner while the UAE is India’s third-largest trading partner. In the 1970s, trade was valued at $180 million annually.
The Abu Dhabi Investment Authority has a sovereign wealth fund of about $800 billion, which India is seeking to tap for its infrastructure sector. The UAE is the 10th biggest foreign investor and the biggest Arab investor in India, with investments of roughly $10 billion………………………………………..Full Article: Source

Sovereign Wealth Funds Draining Market Liquidity

Posted on 10 February 2016 by VRS  |  Email |Print

Most financial market observers point to liquidity from central banks as a prime reason stock markets have gone up so much in recent years. True enough… But there’s another huge source of global liquidity that also pushed up markets worldwide. It’s one that’s now reversed, and is draining liquidity from the global markets.
That source? Sovereign wealth funds (SWFs). The total assets of sovereign wealth funds, as of last March, were estimated at $7.3 trillion by the International Monetary Fund. That figure has doubled just since 2007. The IMF adds that at least $4.2 trillion of this wealth was energy-related. A nice chunk of this accumulated oil wealth was placed into global financial markets by countries like Saudi Arabia………………………………………..Full Article: Source

Sovereign wealth fund selling a major concern: Credit Suisse

Posted on 09 February 2016 by VRS  |  Email |Print

While sovereign wealth fund selling continues to be a major concern, US corporate earnings are not really helping investor sentiment either, says Robert Parker of Credit Suisse Asset Management.
Against this backdrop and the US non-farm payrolls data published on Friday, he sees another one or two moves by the US Federal Reserve this year. The US economy added 151,000 jobs in January, against economists’ expectations of a gain of 190,000. The unemployment rate, however, fell to 4.9 percent from 5 percent………………………………………..Full Article: Source

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