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The fascinating business empire behind Temasek Holdings

Posted on 23 April 2014 by VRS  |  Email |Print

Temasek is one of the world’s largest sovereign wealth funds with assets of more than S$200 billion and investments in over six continents. Temasek’s investments are classified under five different categories: 1) Financial services; 2) Telecommunication, media, and technology; 3) Transportation and industrials; 4) Life sciences, consumer, and real estate; and 5) Energy and resources.
Shipping, airlines, defence, power generation – you name it, Temasek has it. In Singapore, the fund’s most notable investment in this space is Keppel Corporation, which by itself is a huge conglomerate with business interests in shipbuilding, rig-building, construction, and property development among others………………………………………..Full Article: Source

Libyan wealth fund mulls hiring external managers

Posted on 22 April 2014 by VRS  |  Email |Print

Abdulmagid Breish, the chairman of Libya’s $66 billion sovereign wealth fund, said it plans to hire external companies to manage about $11 billion of its assets under a restructuring plan. The Libyan Investment Authority (LIA), valued at about $66 billion by Deloitte, will split its assets into three distinct funds starting as soon as next year, Breish said in an interview in London on Thursday.
“The LIA is preparing itself to come back to the international fold,” he said. “We will use best-of-breed fund managers, advisers and consultants,” he said, without specifying which companies will be invited to bid for the work………………………………………..Full Article: Source

Norway to examine return on $850bln wealth fund before restructuring

Posted on 10 April 2014 by VRS  |  Email |Print

Norway will wait to see whether property investments by its $850bn (€616bn) sovereign wealth fund pay off before considering new asset classes including infrastructure and private equity. “Whether we do it next year or the year after, that hasn’t been decided,” Paal Bjoernestad, state secretary in charge of the fund at the Finance Ministry, said. “We will come back to it – it’s not off the table.”
Prime Minister Erna Solberg’s Conservative-led government, in power since October, has backed away from pre-election talk of restructuring the fund and is now signaling any changes to the world’s largest sovereign investor are likely to be slow………………………………………..Full Article: Source

LIA presents its 2013 annual report to Audit Bureau

Posted on 09 April 2014 by VRS  |  Email |Print

The Libyan Investment Authority (LIA), Libya’s sovereign wealth fund, presented its 2013 annual report to the Audit Bureau last week, the Audit Bureau reports.The presentation was attended by, amongst others, the Audit Bureau head Khalid Shakshak, GNC LIA Committee member Asia Megherbi, Central Bank of Libya Governor Sadik El-Kabir, LIA head Abdulmajid Briesh, as well as representatives of the NOC, the Libyan Foreign Bank and the Administrative Control Authority.
During the presentation, the head of the LIA Abdulmajid Briesh reviewed the activities of the LIA and its international and domestic investments as part of the LIA’s 2013 Annual Report. Briesh also made a presentation of how the LIA would be transformed into a global sovereign wealth fund that would support the future of Libya………………………………………..Full Article: Source

Angola’s sovereign wealth fund appoints audit board

Posted on 09 April 2014 by VRS  |  Email |Print

Angola’s sovereign wealth fund, the Fundo Soberano de Angola (FSDEA), now has its first audit board that will guarantee the “highest level” of openness in its operations, it emerged on Tuesday.
This audit board was picked by the country’s finance ministry, with José Filomeno dos Santos, Chairman of the Board of Directors at FSDEA, describing the move as another critical milestone in the development of the country’s sovereign wealth fund………………………………………..Full Article: Source

1MDB yet to notify SSM of meeting date

Posted on 09 April 2014 by VRS  |  Email |Print

Companies Commission of Malaysia (SSM) is monitoring 1Malaysia Development Bhd (1MDB) which is yet to notify and update the former on the status of its AGM to table its overdue accounts, as at press time.
“We (SSM) are currently monitoring the situation,” it said. According to SSM, it has issued a notice to the sovereign wealth fund’s company secretary to notify and update it on the status of 1MDB’s AGM as well as on the tabling of its audited accounts for the financial year ended March 31, 2013………………………………………..Full Article: Source

Norway hands SWF ethical investment responsibilities to central bank

Posted on 09 April 2014 by VRS  |  Email |Print

The Norwegian finance ministry has adopted a report recommending changes to the way the country’s sovereign wealth fund – the Government Pension Fund Global (GPFG) – is run, including giving more power over its ethical investment policy to the fund managers at the Norwegian central bank.
Norges Bank Investment Management (NBIM), the arm of Norges Bank that runs the fund, will then be responsible for deciding which companies to exclude from its investments on ethical grounds. It will also be expected to report regularly on the scale of its investments in renewable energy and in emerging markets………………………………………..Full Article: Source

Dubai sovereign wealth fund takes effective control of Kerzner International Hotels

Posted on 07 April 2014 by VRS  |  Email |Print

The Investment Corp. of Dubai (ICD), which is the Sovereign Wealth Fund of the Emirate of Dubai, today announced it has taken over leadership and control of luxury hotel chain Kerzner International Holdings Limited (KIHL).
Founded by South African entrepreneur Sol Kerzner the hotel group built resorts in the Bahamas, and also the famed luxury Atlantis palm island resort in Dubai itself………………………………………..Full Article: Source

Dubai World hires Blackstone to look at debt options

Posted on 04 April 2014 by VRS  |  Email |Print

Conglomerate Dubai World has hired New York-based investment and advisory firm Blackstone Group LP to take a fresh look at its debt and how to make repayments to creditors, sources aware of the matter told Reuters.
“This is only for advisory purposes and to streamline the available options for the debt maturing in 2018,” a Dubai government source said, speaking on condition of anonymity under briefing rules………………………………….Full Article: Source

A check list for getting hired into a sovereign wealth fund

Posted on 04 April 2014 by VRS  |  Email |Print

Sovereign wealth funds are changing their recruitment strategies. Gone are the days of big recruitment sprees, with funds in the Middle East in particular blinded by brand names and experience in Western markets.
SWFs are still expanding, though. Norway’s Government Pension Fund Global is doubling the number of internal equities staff it has, while Singapore’s GIC and the Abu Dhabi Investment Authority (ADIA) are putting similar efforts into bolstering in-house expertise………………………………….Full Article: Source

Trinidad and Tobago appoints new sovereign wealth fund chairman

Posted on 28 March 2014 by VRS  |  Email |Print

Minister of Finance and the Economy Larry Howai (left) presents Dr Ralph Henry (right), newly appointed Chairman of the Heritage and Stabilization Fund with his instrument of appointment. Dr Ralph Henry has been appointed as the new Chairman of the Heritage and Stabilization Fund (Trinidad and Tobago’s sovereign wealth fund), a release from the Ministry of Finance and the Economy said.
Henry “has served as a lecturer at the University of the West Indies and as a consultant to a number of regional and international organizations which include the Inter-American Development Bank, the Caribbean Development Bank, the World Bank and the CARICOM secretariat to name a few. Dr Henry was also appointed the first Chairman of the Telecommunications Authority of Trinidad & Tobago.”…………………………………..Full Article: Source

Saskatchewan Premier Brad Wall says there’s no decision on when to launch Futures Fund

Posted on 24 March 2014 by VRS  |  Email |Print

Premier Brad Wall says he hasn’t decided whether his administration will begin directing resources to a new sovereign wealth fund before the provincial government has paid off its sizable debt. “You’re going to see legislation from this government very soon to establish that futures fund,” Wall told reporters at the legislature on Thursday.
Despite not setting aside funds for the program in the 2014-15 provincial budget on Wednesday, Wall maintains that the creation of the proposed Saskatchewan Futures Fund remains a high priority for the government………………………………………..Full Article: Source

Broten, Wall battle over futures fund

Posted on 24 March 2014 by VRS  |  Email |Print

Opposition Leader Cam Broten says he wanted to see a stronger commitment to a sovereign-wealth fund in the provincial budget. “Right now, the premier’s sort of trying to have it both ways,” Broten told reporters in Regina after the issue was raised in question period Wednesday. “It’s a rather ambiguous position.”
The budget says the government accepts recommendations made by former University of Saskatchewan president Peter MacKinnon last year that if resource revenues exceed more than 26 per cent of government revenues, the excess should go to paying off debt or to a Saskatchewan Futures Fund………………………………………..Full Article: Source

Temasek offer a sector re-rating event: Barclays

Posted on 19 March 2014 by VRS  |  Email |Print

Singapore investment company Temasek Holdings’ offer for Olam International could be a sector re-rating event, reflecting the potential for major shareholder groups to step in if soft commodity groups remain undervalued, said Barclays. This is especially since equity markets are too concerned with quarterly earnings numbers - often affected by volatile commodity markets - while strategic shareholders can take a long-term view on the key drivers of the business.
“The long-term drivers of constrained upstream productive resources and demand growth in emerging markets are secular trends, irrespective of the volatility in commodity markets,” said Barclays analysts in a report. “In our view, Temasek’s offer for Olam may reflect the potential for other shareholder groups to step in if they believe the equity market is not pricing in the earning potential.”……………………………………….Full Article: Source

Norway examines $850 bln wealth fund’s return measures

Posted on 19 March 2014 by VRS  |  Email |Print

Norway is examining new ways to calculate returns generated by the world’s biggest sovereign wealth fund in a move that could affect how much oil revenue the government uses in its budgets.
The Finance Ministry has ordered Statistics Norway to find out how different deflators, which adjust returns for inflation, will affect returns. The government is due next month release a white paper assessing the fund’s strategy and performance………………………………………..Full Article: Source

Norway lacks expertise to oversee wealth fund, Re-Define says

Posted on 17 March 2014 by VRS  |  Email |Print

Norway’s parliament should create an independent committee of financial experts to hold the fund and the Finance Ministry, which oversees it, accountable, Sony Kapoor, director of Re-Define, said.
“Few countries have as big a gap between exposure to the international financial system and expertise on it as Norway,” said Kapoor, a former investment banker who has advised several governments, including Norway’s, and groups such as the World Bank………………………………………..Full Article: Source

SOFAZ budget for 2014 to be revised

Posted on 14 March 2014 by VRS  |  Email |Print

The 2014 budget of the State Oil Fund of Azerbaijan (SOFAZ) will be revised, due to the formation of a closed joint stock company for effective management of the Shah Deniz projects and gas deliveries to Europe, SOFAZ CEO, Shahmar Movsumov told journalists on March 12.
In February, Azerbaijani President Ilham Aliyev signed a decree on establishment of a closed joint-stock company for effective management of the projects within the second phase of the Shah Deniz gas and condensate field’s development, expansion of the South Caucasus Pipeline, Trans Anatolian Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP)………………………………………..Full Article: Source

CIO of Singapore’s GIC sees added scope for opportunistic investments, alternatives

Posted on 13 March 2014 by VRS  |  Email |Print

The chief investment officer of Singapore sovereign wealth fund GIC Private Limited suggested Wednesday that the current low-yield outlook for traditional bond and equity investments has left the GIC taking a more tactical, opportunistic approach in managing its portfolio, and open to extending more mandates to alternative asset managers.
Lim Chow Kiat, GIC’s group CIO, said in the current environment expectations for the rewards of “simply holding diversified assets and waiting” have to be lowered………………………………………..Full Article: Source

GIC will maintain price discipline in its investing decisions

Posted on 13 March 2014 by VRS  |  Email |Print

GIC will maintain price discipline in its investing decisions, said the sovereign wealth fund’s chief investment officer Mr Lim Chow Kiat, at the annual conference of the Investment Management Association of Singapore on Wednesday afternoon.
This is one of the five principles that guide GIC in making its asset allocation decisions. Although the global market may be volatile, GIC still remains focused on fundamentals when investing the nation’s wealth………………………………………..Full Article: Source

Russian finance ministry to wait before resuming fx buys

Posted on 13 March 2014 by VRS  |  Email |Print

Russia’s finance ministry said on Wednesday it will wait for at least another two weeks before resuming daily foreign currency purchases to transfer excess revenues to one of its sovereign wealth funds, partly because the rouble is too weak.
The ministry indicated last month that it would convert around $5.8 billion to add to its $87 billion Reserve Fund, one of two sovereign funds financed from oil taxes. It needs to convert the funds into foreign currency and announced a gradual transfer that would involve it buying the equivalent of 3.5 billion roubles ($95.8 million) a day over three months………………………………………..Full Article: Source

Amendments planned in 2014 budget of Azerbaijan State Oil Fund

Posted on 13 March 2014 by VRS  |  Email |Print

An appeal has been made to the Supervisory Board to make amendments in 2014 budget of Azerbaijan State Oil Fund, Executive Director of the State Oil Fund Shahmar Movsumov told journalists, APA-Economics reports.
He said the amendment envisages allocation of funds to form $51 million capital of the new company established to manage gas projects under the decree of Azerbaijani President. “These funds are not envisaged in the budget. But this is presented by the State Oil Fund as direct investment and is a long-term investment,” he said………………………………………..Full Article: Source

OIDB could be turned into financial institution

Posted on 12 March 2014 by VRS  |  Email |Print

With no strategic pool of funds available for the oil sector, the Ministry of Petroleum and Natural Gas has proposed turning the Oil Industry Development Board (OIDB) into a financial institution for the petroleum sector similar to Power Finance Corporation for power sector. To provide funds for OIDB, it has also asked for a share in the oil cess.
The proposed sovereign fund is meant to provide insurance cover to Indian refineries using Iranian crude oil. OIDB is set to contribute around Rs 1,000 crore of this insurance pool, while the remaining amount would be contributed by public sector insurers. “For the insurance pool, we have already circulated a Cabinet note though a decision would only be taken after the new government comes to power,” said the official………………………………………..Full Article: Source

Norway’s PM Solberg cautious on wealth fund spending in 2015 budget

Posted on 11 March 2014 by VRS  |  Email |Print

Norway should not dig too deeply into its $850-billion sovereign wealth fund in the coming budget because this could overheat the economy and erode recent competitiveness gains, Prime Minister Erna Solberg told Reuters on Monday.
Her government, composed of the center-right Conservatives and the more radical right-wing Progress Party, begins today negotiations over next year’s budget, the first by the coalition since winning elections in September………………………………………..Full Article: Source

Ireland: Reinventing a national pension scheme

Posted on 11 March 2014 by VRS  |  Email |Print

It has been used to bail out the banking system and will soon change its name as part of a reorientation to support Ireland’s domestic economy with private equity and direct investments.
The NPRF, a so-called mini sovereign wealth fund managed by Ireland’s National Treasury Management Agency, was first set up by the Irish government in 2001 to deal with the prospect of an ageing population. Charlie McCreevy, Ireland’s minister for finance at the time, estimated that Ireland’s social welfare and public service pensions costs would rocket from 4.7% of gross domestic product to 12.4% by 2050………………………………………..Full Article: Source

Sovereign Wealth Fund, an administrative terrorism

Posted on 07 March 2014 by VRS  |  Email |Print

Ekiti State House of Assembly, the other day, trivialized an otherwise very serious constitutional issue by calling on the National Assembly to immediately commence impeachment proceedings against President Goodluck Jonathan. The impeachable offence cited? Compulsory deduction, at source, from the revenue allocation due to the states as contribution to an unconstitutional Sovereign Wealth Fund.
Following the resolution of Ekiti State House of Assembly, it is a matter of time for the remaining 35 state houses of assembly to sheepishly pass similar resolution………………………………………..Full Article: Source

Norway changes fund managers and completes ABS exit

Posted on 03 March 2014 by VRS  |  Email |Print

The $838 billion Norwegian Government Pension Fund parted ways with nine of its external fund managers last year, while taking on its first new external fixed-income managers since 2011 after a tough year in the asset class.
The Government Pension Fund, one of the world’s biggest sovereign wealth funds, is financed by Norway’s oil reserves. It grew from $636 billion to $838 billion last year, largely as a result of strong equity market returns………………………………………..Full Article: Source

Norway sovereign fund too big for central bank, report says

Posted on 26 February 2014 by VRS  |  Email |Print

Norway may need to separate its sovereign wealth fund from the central bank as its ballooning size makes proper oversight more difficult, the annual Norges Bank Watch report said.
With a fund of 5 trillion kroner ($830 billion) that’s “invested in a complex set of assets, we are concerned that the board’s capacity may be strained,” Knut Anton Mork, chief economist at Svenska Handelsbanken AB, Xavier Freixas, a professor at Universitat Pompeu Fabra, and Kyrre Aamdal, senior economist at DNB ASA, wrote in the report………………………………………..Full Article: Source

Norges Bank review calls on MPC to relinquish control of wealth fund

Posted on 26 February 2014 by VRS  |  Email |Print

A separate board should be appointed to supervise Norway’s state oil fund – the world’s largest sovereign wealth fund, which is housed within the central bank and currently overseen by the monetary policy committee – according to an independent report funded partly by Norway’s finance ministry.
The proposal to split responsibility for the oil fund and monetary policy at Norges Bank comes two days after Petter Johnsen, the fund’s chief investment officer for equities, told the Financial Times that it was “recruiting actively” in a bid to “double the size” of its 90-strong equity team………………………………………..Full Article: Source

Azerbaijan creates company on Shah Deniz projects’ management and gas delivery to Europe

Posted on 26 February 2014 by VRS  |  Email |Print

Azerbaijani President Ilham Aliyev has signed a decree on Feb. 25 establishing a closed joint-stock company (CJSC) for effective management of projects within the second phase of Shah Deniz gas and condensate field’s development, expansion of the South Caucasus Pipeline, Trans-Anatolian Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP).
State Oil Fund of Azerbaijan (SOFAZ) has been instructed to provide an equity financing for the CJSC, which is under direct state ownership. The funds to be provided to the CJSC for financing the equity will provide a long-term investment on return conditions. CJSC’s proceeds received from all projects will be transferred to SOFAZ, until all of funds invested in the joint stock company are repaid………………………………………..Full Article: Source

Norway SWF to double equities team

Posted on 25 February 2014 by VRS  |  Email |Print

Norway’s Government Pension Fund-Global has revealed plans to double its equities investment team to almost 200 people. The $840 billion fund is already the world’s largest equities investor, and has told the Financial Times that it plans to increase its staffing capability to eke out better returns.
Petter Johnsen, CIO for equities at the fund, told the newspaper its current team of around 85 to 90 people needed to be double its current size so it was “recruiting actively”………………………………………..Full Article: Source

1MDB should be more transparent in corporate reporting, says anti-graft body

Posted on 24 February 2014 by VRS  |  Email |Print

1Malaysia Development Bhd’s failure to file its audited accounts for the financial year ending March 2013 with the regulators raises questions over its commitment to transparency in corporate reporting, Transparency International Malaysia (TI-M) said today.
1Malaysia Development Bhd, or 1MDB, is a government sovereign wealth fund. The anti-graft watchdog said in a statement that corporate activities should be reported in a timely manner, and must show accountability, accuracy and completeness in its records………………………………………..Full Article: Source

1MDB replaces auditors, gets time extension to submit accounts

Posted on 21 February 2014 by VRS  |  Email |Print

Government-backed 1Malaysia Development Bhd (1MDB) has confirmed that it has changed its auditors and that it has gotten a six-month extension from the authorities to file its accounts for the financial year ended March 31, 2013 (FY13).
1MDB stated that it had been granted an extension of time up to March 31, 2014 from the Companies Commission of Malaysia (CCM) to file its annual returns. The spokesperson also confirmed reports that accounting firm KPMG had been replaced with Deloitte to complete the audit for FY13………………………………………..Full Article: Source

GIC head explains the ’smart way’ to comply

Posted on 20 February 2014 by VRS  |  Email |Print

Keeping up with increasing compliance is of great concern to companies, and Singapore’s top sovereign wealth fund GIC Pte Ltd (formerly known as Government of Singapore Investment Corporation) is facing a similar challenge. But companies have to be careful not to let onerous rules hold them back, GIC group president Lim Siong Guan said at a plenary discussion yesterday.
“Compliance is a big challenge, the way I see GIC as a fund manager. And obviously, compliance is about making sure you follow the rules - and more so for GIC because it is the fund manager of the government and all our investments are in the name of the Singapore government, which means that there are other factors that we have to take into consideration, like reputational risks………………………………………..Full Article: Source

Li Keping succeeds Gao at China wealth fund

Posted on 17 February 2014 by VRS  |  Email |Print

Sovereign wealth fund, China Investment Group, announced it had appointed chief investment officer Li Keping as vice chairman and president. CIC, headed by chairman Ding Xuedong, had more than US$500 billion in assets under management at the end of 2102.
Born in 1956, Li replaces founding president Gao Xiqing, who turns 61 this year. China’s official retirement age is 60 for men. Li was chief investment officer since 2011, according to the official website. The economics graduate from Peking University was previously an official with the State Council, and deputy chairman of the National Council for Social Security Fund, China’s largest such fund………………………………………..Full Article: Source

Libyan Investment Authority personnel changes

Posted on 14 February 2014 by VRS  |  Email |Print

Libya’s sovereign wealth fund, the Libyan Investment Authority (LIA) is undergoing a major restructure of senior management personnel. The LIA is now advertising for a new Chief Executive Officer, as well as looking for a new Head of Treasury and Budget Stabilisation Fund and a Senior Advisor for Finance and Control. New heads of departments for human resources and communications and PR are also being sought.
In advertisements f0r the roles, the LIA said it was seeking to revitalise operations, promote a new strategy to foster economic stability and protect economic growth in Libya………………………………………..Full Article: Source

Nigeria: New sovereign wealth fund starts hiring

Posted on 05 February 2014 by VRS  |  Email |Print

The Nigerian Sovereign Investment Authority (NSIA), the country’s $1bn SWF that started investing in June last year, is hiring. After setting up the executive team last year, the fund is starting to recruit lower down the career ladder.
Last year hired Uche Orji, a former managing director at UBS in New York, as CEO, ex-Barclays operation risk head, Stella Ojekwe-Onyejeli, as chief risk officer, Tom Northover as an in-house economist, and Aminu Umar-Sadiq, formerly a London-based SocGen M&A associate, as a portfolio manager, and is still looking to recruit………………………………………..Full Article: Source

Costello confirmed as Future Fund boss

Posted on 04 February 2014 by VRS  |  Email |Print

Former federal Liberal treasurer Peter Costello has been appointed head of the Future Fund. Mr Costello, who was treasurer for more than 11 years in the Howard government (1996-2007), has been acting chairman of the fund since January 11 following the resignation of David Gonski to become chairman of ANZ Bank.
As treasurer he was responsible for the establishment of the Future Fund in 2006. “Mr Costello’s unique experiences and background at the most senior levels in government and in business will be a great asset to the Future Fund board,” Treasurer Joe Hockey and Finance Minister Mathias Cormann said in a joint statement on Tuesday………………………………………..Full Article: Source

Future Fund quiet on leadership changes

Posted on 03 February 2014 by VRS  |  Email |Print

Future Fund managing director Mark Burgess has remained tight-lipped on whether he believes former treasurer Peter Costello will be appointed the fund’s chair, following speculation last week that he was the strong favourite for the role. But while the decision is in the hands of the federal government, Burgess said that if Costello were to become chair, he “would be surprised if there would be much change” at the $96.5 billion sovereign wealth fund.
Speaking to media at the Future Fund’s six monthly portfolio briefing, Burgess also deflected questions about who would replace him as managing director, a role he is due to give up within the next two months………………………………………..Full Article: Source

SOFAZ assets positively affect creditworthiness of Azerbaijan - Standard & Poor’s

Posted on 03 February 2014 by VRS  |  Email |Print

A significant amount of liquid assets of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) is a positive factor for the country’s creditworthiness, says the report of financial services company Standard & Poor’s.
“The assets of SOFAZ are invested abroad, while its assets by the end of 2013 were estimated to be around $35 billion (47 percent of the country’s GDP). That amount was slightly bigger compared to same period of 2012, when the assets were estimated to be about $34 billion,” said the report. The report also indicated that SOFAZ assets give Azerbaijan a considerable reserve for softening possible financial stresses in economy, which, for example can occur due to rapid and continuing falling of oil prices………………………………………..Full Article: Source

Costello set to chair Future Fund: report

Posted on 30 January 2014 by VRS  |  Email |Print

Federal Cabinet is set to confirm former treasurer Peter Costello’s appointment as chairman of the Future Fund, The Australian Financial Review reports. According to the newspaper, outgoing chairman David Gonski has recommended Mr Costello, who has been acting in the role, as his replacement.
Mr Costello created the $90 billion sovereign wealth fund in 2006 to cover the federal government’s unfunded public service superannuation liabilities. The former treasurer was appointed to the fund’s board in 2009 but the Gillard cabinet ignored the board’s advice that he should be its chair, hoping to resolve board divisions by instead appointing a business outsider, the AFR reports………………………………………..Full Article: Source

Moody’s affirms Kuwait Investment Company’s Baa3 issuer ratings; outlook stable

Posted on 27 January 2014 by VRS  |  Email |Print

Moody’s Investors Service has today affirmed the Baa3 issuer ratings of Kuwait Investment Company S.A.K. (KIC). At the same time, Moody’s noted that the company’s baseline credit assessment (BCA) of b3 has remained unchanged. The outlook on the ratings is stable.
This affirmation primarily reflects the high probability of government support in case of need, KIC is considered a government-related issuer (GRI), recognising (1) KIC’s 76 per cent ownership by the Kuwaiti government’s sovereign wealth fund (Kuwait Investment Authority or KIA), and (2) KIA’s continuous contribution to KIC through funding support and business generation………………………………………..Full Article: Source

Hong Kong’s wealth fund is doing a lousy job investing our money

Posted on 24 January 2014 by VRS  |  Email |Print

You may not know about it, but Hong Kong has a sovereign wealth fund.It’s called the Exchange Fund. It manages assets of HK$3 trillion, and its investment performance is abysmal. The Hong Kong Monetary Authority announced the Exchange Fund’s results for 2013. It managed a return of just 2.7 per cent.
When you consider that consumer inflation in Hong Kong last year was 4.3 per cent, that’s really not very impressive. In real terms the Exchange Fund’s return was negative………………………………………..Full Article: Source

Will China Investment Corp. presidency change affect bias to alternatives?

Posted on 24 January 2014 by VRS  |  Email |Print

As Gao Xiqing, the president of China Investment Corp., steps down, those who work in alternative investments are waiting to see if there will be any changes in strategy at the world’s fourth largest sovereign wealth fund, which in the last few years has favored such investments.
In the last couple of years, the $575 billion fund has shifted its focus toward long-term investments. In 2012, the wealth fund said in its annual report that long-term investments including private equity, energy, mining, real estate and infrastructure would be a priority, with a bias towards fund investment, co-investment and direct investment. CIC is an investor in Chinese private equity firm Citic Capital………………………………………..Full Article: Source

Change at CIC: As you were

Posted on 23 January 2014 by VRS  |  Email |Print

The retirement of Gao Xiqing as president of the China Investment Corporation, China’s sovereign wealth fund, has fund managers wondering what the change of leadership will mean for asset allocation and the fund’s use of external managers.
Gao, one of the CIC’s founders, and instrumental in many of its most well-known (and sometimes ill-fated) deals, is to be replaced by Li Keping, who is the chief investment officer. This is the second change in top leadership positions at CIC in less than a year, with Ding Xuedong becoming chairman of CIC in July 2013……………………………..Full Article: Source

Reported CIC reshuffle raises questions

Posted on 22 January 2014 by VRS  |  Email |Print

A fresh reshuffle is reportedly underway at China’s s sovereign wealth fund CIC, with general manager Gao Xiqing retiring and chief investment officer Li Keping succeeding him, according to media. At 60, Gao’s retirement would not be a surprise, but his exit could raise questions over possible changes in CIC’s investment direction and reliance on external managers, notes Shanghai-based consultancy Z-Ben Advisors.
Reports of the switch follow the appointment of Ding Xuedong as the fund’s chairman in July last year,as reported. Still, Li himself is 58 years old and has a long history of working with Gao, dating back to their days at the National Council for Social Security Fund (NCSSF). This, Z-Ben suggests, may point to a continuation rather than a change of strategy……………………………..Full Article: Source

Malaysia’s Khazanah takes cautious stance on investment to guard record assets

Posted on 21 January 2014 by VRS  |  Email |Print

Malaysian state investor Khazanah Nasional Bhd said political change in key emerging markets means it will have to approach investment more cautiously than last year, when its portfolio of assets reached a record US$40.6 billion (RM134.9 billion).
The sovereign wealth fund, which owns stakes in mobile services provider Axiata Group Bhd and property firm UEM Sunrise Bhd, has been increasing activity abroad to reduce the risk of being heavily invested at home. But elections or leadership change in Turkey, India and Indonesia, as well as their uncertain economic outlook and weakening currencies, make for a cautious outlook for 2014, the fund said at its annual review on Monday………………………………………..Full Article: Source

Nigeria plans to boost capital of sovereign wealth fund

Posted on 21 January 2014 by VRS  |  Email |Print

Nigerian Finance Minister Ngozi Okonjo-Iweala said the federal government wants to increase the capital of its $1 billion sovereign wealth fund this year even as state governors protest allocations before 2015 elections.
“We want to look at what we can do however small to ensure a steady streaming of income into the sovereign wealth fund,” Okonjo-Iweala, 59, said in an interview yesterday in the commercial capital, Lagos, declining to comment on the possible amount………………………………………..Full Article: Source

Qatar Holding deal maker Fakhroo leaves for govt-linked role -sources

Posted on 17 January 2014 by VRS  |  Email |Print

A key mergers and acquisitions executive at Qatar Holding, instrumental in some of the fund’s most high-profile deals in recent years, has left the firm for a government-related role, banking and industry sources said. Qatar Holding is the direct investment arm of Qatar Investment Authority (QIA).
Aziz Aluthman Fakhroo, a Qatari national and a director at the fund’s mergers and acquisitions team, left late last year as part of changes at one of the world’s most active sovereign wealth funds, the sources said, speaking on condition of anonymity………………………………………..Full Article: Source

Kazakh government approves new board of directors of sovereign wealth fund

Posted on 13 January 2014 by VRS  |  Email |Print

The Kazakh Government approved the new staff of the Board of Directors of Sovereign Wealth Fund Samruk -Kazyna, the fund reported on Jan. 10. The new Board of Directors is chaired by Kazakh Prime Minister Serik Akhmetov, according to the governmental resolution.
The new Board of Directors also includes Assistant to Kazakh President Yerbol Orynbaev, Deputy Prime Minister - Finance Minister Bakhyt Sultanov, Economy and Budget Planning Minister Erbolat Dossaev, Samruk- Kazyna’s Chairman of the Board Umirzak Shukeyev and independent directors Alexander Mirchev , Richard Evans and Nigel John Stapleton………………………………Full Article: Source

The Norwegian miracle : A model for visionary leadership

Posted on 13 January 2014 by VRS  |  Email |Print

Everyone in Norway became a theoretical millionaire on Wednesday in a milestone event for one of the world’s biggest sovereign wealth funds that has ballooned thanks to high oil and gas prices.
A preliminary counter on the website of the central bank, which manages the fund, rose to 5.11 trillion crowns ($828.66 billion), fractionally more than a million times Norway’s most recent official population estimate of 5,096,300. Norway’s $710 billion wealth fund earned 13.4 percent last year. Set up in 1990, the fund owns around 1 percent of the world’s stocks, as well as bonds and real estate from London to Boston, making the Nordic nation an exception when others are struggling under a mountain of debts………………………………Full Article: Source

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