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Sovereign Wealth Funds Briefing - Category | Fund Management/Administration more

Executives on top Iran fund resign en masse

Posted on 04 July 2016 by VRS  |  Email |Print

“Minutes ago, the board of trustees of the National Development Fund held a session with President Rouhani in attendance, where the mass resignation of the director and executive board members was accepted,” the Fars news agency said Saturday.
Several senior officials, including ministers of economy, petroleum and labor, as well as the country’s attorney general also attended the session, the news agency reported………………………………………..Full Article: Source

The 1MDB Affair: Malaysia Delegation in Abu Dhabi to Resolve Dispute

Posted on 01 July 2016 by VRS  |  Email |Print

The two government investment funds at the heart of a Malaysian financial scandal are disappearing as the two sides try to put the situation behind them even as they battle over billions of dollars that have gone missing.
Abu Dhabi announced on Wednesday that International Petroleum Investment Company is being merged into another fund in the Emirate. Most of the assets of 1Malaysia Development Bhd. have been sold or transferred to the country’s Ministry of Finance………………………………………..Full Article: Source

Goldman Sachs Executive Says Libya Understood Derivatives

Posted on 01 July 2016 by VRS  |  Email |Print

In $1.2 billion lawsuit, country’s sovereign-wealth fund accuses Goldman of leading novices into disastrous investment. A Goldman Sachs Group Inc. executive testified that Libya’s sovereign-wealth fund knew what it was doing when it bought derivatives from the bank that later soured, disputing allegations that Goldman led an inexperienced buyer into a disastrous investment.
The Libyan Investment Authority, or LIA, understood the disputed derivatives it bought from Goldman, Andrea Vella, co-head of Asian investment banking at Goldman, told the High Court in London on Thursday………………………………………..Full Article: Source

Libya wealth fund boss ‘screamed and cursed’ at Goldman bankers

Posted on 30 June 2016 by VRS  |  Email |Print

The Libyan wealth fund’s former deputy chief screamed and cursed at Goldman Sachs bankers in a stormy meeting over derivatives trades made on the bank’s advice that ultimately turned out to be worthless, a witness told a court on Tuesday.
In a trial at London’s High Court, the Libyan Investment Authority (LIA) is trying to claw back $1.2 billion from Goldman Sachs related to nine disputed trades carried out in 2008. The LIA argues Goldman took advantage of its financial naivety by first gaining its trust, then encouraging it to make risky and ultimately worthless investments………………………………………..Full Article: Source

Libyan fund officials didn’t understand Goldman trades: lawyer

Posted on 30 June 2016 by VRS  |  Email |Print

Libya’s sovereign wealth fund was “astonished to learn” it hadn’t acquired any actual shares through derivatives trades arranged by Goldman Sachs, according to a former lawyer for the fund who gave evidence in the High Court in London on Tuesday.
The Libyan Investment Authority is suing Goldman for $US1.2 billion ($1.62bn) to cover its losses from nine trades arranged in 2008. The trades took the form of equity derivatives and expired worthless in 2011. The LIA allegesthat Goldman executives exerted “undue influence” over its officials, who didn’t understand the trades………………………………………..Full Article: Source

What does the Nigeria Sovereign Investment Authority (NSIA) think about the government’s planned $25 billion infrastructure fund?

Posted on 30 June 2016 by VRS  |  Email |Print

Nigeria’s Vice President, Yemi Osinbajo has released a statement that the Buhari administration intends to spend $25 billion on an infrastructure fund to invest in the transport and energy sector as a way to develop the country’s failing road, rail and power structures to boost economic growth.
Although, the Vice President did not state the timeline guiding the fund, he said the fund would be set up with contributions from local and international sources including Nigeria’s sovereign wealth fund and domestic pension funds. The NSIA was actually set up for the purpose of managing and investing funds on behalf of the Nigerian government. He further stated that other sovereign wealth funds have already indicated an interest in the fund………………………………………..Full Article: Source

Ministerial committee to conduct studies on sovereign wealth fund Amlak

Posted on 29 June 2016 by VRS  |  Email |Print

A ministerial committee is set to work with local and international advisory bodies to conduct economic, financial, and administrative studies on Egypt’s proposed sovereign wealth fund Amlak, Al Borsa reported on Monday.
EGP 5 bn has been already earmarked for the fund in FY2015/16’s budget. The fund will be state-owned through the National Investment Bank and will “encourage diversification and support sustainable economic and social development,” the cabinet said when it was first announced………………………………………..Full Article: Source

The State Oil Fund of the Republic of Azerbaijan successfully completes implementation of SimCorp Dimension

Posted on 28 June 2016 by VRS  |  Email |Print

SimCorp, a leading provider of investment management solutions and services for the global financial services industry, today announced that The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has successfully completed the implementation of SimCorp Dimension.
The implementation provides SOFAZ with a fully integrated portfolio management, investment book of record (IBOR), and accounting system, covering front, middle, and back office, which allows the sovereign wealth fund to automate and streamline its financial portfolio management activities. SOFAZ’s assets under management has increased from less than USD 1.5bn ten years ago to over USD 34bn today, and since then the complexity and diversity of the financial instruments the fund is investing in have increased significantly. (Press Release)

Bahrain’s SWF has no plans to borrow this year-CEO

Posted on 21 June 2016 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund Mumtalakat plans to finance its projects this year using income from investments and will not seek loans or government assistance, its chief executive said.
“We have no intention of borrowing this year, and are working to reduce the accumulated debt. The company borrowed large amounts up to the end of 2015 to fund its projects,” Bahrain Mumtalakat Holding Company CEO Mahmoud Alkooheji said. The company signed a $500 million, five-year revolving credit facility in December 2014. “It (the facility) was fully used in 2015 to refinance outstanding debt,” he said without providing further details………………………………………..Full Article: Source

Miner Kenmare plots to raise 10 times its market cap with £250m turnaround plan

Posted on 21 June 2016 by VRS  |  Email |Print

Dublin-based miner Kenmare Resources intends to raise 10 times its £26m market cap in an ambitious capital raising that could see it eliminate debt and restore its share price from penny-stock status.
The London-listed miner already has commitments from three major existing shareholders and the sovereign wealth fund of Oman to raise at least $215m; a further $60m placing has been underwritten by the company’s lenders - primarily development banks - in a debt for equity swap………………………………………..Full Article: Source

Libya SWF adviser says execs who invested in derivatives were financially “illiterate”

Posted on 17 June 2016 by VRS  |  Email |Print

Top decision makers at Libya’s $67 billion sovereign wealth fund were “illiterate” in terms of investment with little knowledge of the derivatives instruments purchased on the advice of Goldman Sachs, an adviser to the fund told a court on Thursday.
In a closely watched case in the City of London, the Libyan Investment Authority (LIA) is attempting to claw back $1.2 billion from the U.S. investment bank from nine disputed trades carried out in 2008. The LIA argues that the U.S. bank took advantage of its financial naivety by first gaining its trust, then encouraging it to make risky and ultimately worthless investments………………………………………..Full Article: Source

Temasek sets up panel of advisers for Americas

Posted on 17 June 2016 by VRS  |  Email |Print

Temasek Holdings announced the formation of an advisory panel yesterday that comprises some of the most eminent business figures in the Americas. The Temasek Americas Advisory Panel (TAAP), which held its first meeting this week in New York, has seven members, including PepsiCo chairman and chief executive Indra Nooyi, Honeywell International chairman and CEO David Cote, and former US treasury secretary Timothy Geithner, who also chairs TAAP.
The other members are former DuPont chairman and CEO Ellen Kullman; online education platform Coursera CEO Richard Levin; Mr Ronald Sugar, the former chairman and CEO of defence giant Northrop Grumman; and the former chairman and CEO of agribusiness Bunge, Mr Alberto Weisser………………………………………..Full Article: Source

New CIO Named at Korea Investment Corp

Posted on 15 June 2016 by VRS  |  Email |Print

Days after news broke of CIO Heung-sik Choo’s departure for the World Bank, the Korea Investment Corporation (KIC) has announced its next investment chief. As of June 13, Shinwoo Kang leads investments for KIC, the $91.8 billion sovereign wealth fund said Tuesday. Kang is the fifth CIO since the fund’s 2005 launch.
Kang comes to KIC from Seoul-based Hanwha Asset Management, where he had served as president and CEO. He has also held CIO roles at Korea Investment Management and PCA Asset Management………………………………………..Full Article: Source

Former Goldman Sachs executive denies paying for ‘improper entertainment’ in LIA case

Posted on 15 June 2016 by VRS  |  Email |Print

A Goldman Sachs executive at the centre of a $1.2 billion (£850 million) claim brought by Libya’s sovereign wealth fund has denied allegations he paid for “improper entertainment” for himself and the younger brother of a key decision-maker at the fund on a business trip.
Youssef Kabbaj, a former Goldman Sachs sales team executive, also said that all his expenses linked to the Libyan Investment Authority (LIA) had always been signed off by at least two senior partners at the bank and fully reimbursed by Goldman. In a trial at London’s High Court that began on Monday, the $67 billion LIA is attempting to claw back $1.2 billion from nine trades it carried out with Goldman Sachs in 2008………………………………………..Full Article: Source

Libyan fund alleges Goldman took advantage of its inexperience

Posted on 15 June 2016 by VRS  |  Email |Print

Libya’s sovereign wealth fund, in a long-awaited trial that started on June 13, alleged Goldman Sachs took advantage of its lack of financial sophistication to draw it into losing trades. Emails in the case show Goldman executives saying that the Libyan fund had little experience in finance. “They are very unsophisticated – and anyone could ‘rape’ them,” one executive wrote in 2008.
In another internal email exchange, a Goldman executive wrote to a colleague that “you just delivered a pitch on structured leveraged loans to someone who lives in the middle of the desert with his camels”………………………………………..Full Article: Source

ANZ Strategist Sam Tuck Quits to Join Sovereign Wealth Fund

Posted on 13 June 2016 by VRS  |  Email |Print

Sam Tuck, a senior currency strategist at ANZ Bank New Zealand Ltd. in Auckland, said he is leaving the company to join the country’s sovereign wealth fund. “Today is my last day at ANZ,” he wrote in an e-mail Friday. Tuck, 38, said via instant message he will join the New Zealand Superannuation Fund.
Tuck joined ANZ six years ago as a proprietary foreign-exchange trader before moving to the research team in 2013, according to his professional biography on the bank’s website. He previously spent 10 years in Barclays Capital’s arbitrage and systematic trading group in London………………………………………..Full Article: Source

India Says National Infra Fund CEO To Be Appointed Shortly

Posted on 10 June 2016 by VRS  |  Email |Print

The National Investment and Infrastructure Fund (NIIF), India’s maiden sovereign wealth fund, will in “imminent” future get its chief executive, an appointment that was holding up the roll-out of investment proposals.
Minister of State for Finance Jayant Sinha said the government received over 80 applications and the names of candidates shortlisted after interview have been sent to the Appointments Committee of the Cabinet (ACC) for approval. “We are very close to announcing the candidate who will come as CEO of National Investment and Infrastructure Fund (NIIF),” he told PTI in an interview………………………………………..Full Article: Source

How to Manage $2 Trillion If You’re New at It

Posted on 10 June 2016 by VRS  |  Email |Print

Saudi Arabia is about to confront a serious challenge: Where and how to invest the money in a gigantic new sovereign wealth fund created as part of an effort to diversify its economy and pivot away from its dependence on oil.
That is going to put a lot of pressure on whoever becomes the chief investment officer for the country’s Public Investment Fund, which may end up with responsibility for as much as $2 trillion. Before the Saudis start putting that enormous pile of money to work, they may want to take a moment to consider a few items related to costs and performance of the new fund………………………………………..Full Article: Source

Indian FM Arun Jaitley reviews sovereign wealth fund’s status

Posted on 09 June 2016 by VRS  |  Email |Print

A panel headed by Finance Minister Arun Jaitley on Wednesday took stock of the progress made on operationalising India’s maiden sovereign wealth fund National Investment and Infrastructure Fund (NIIF), including the selection of its CEO and projects shortlisted for making initial investments.
The second Governing Council meeting of the Rs 40,000 crore NIIF also discussed the follow-up action being taken on the MoUs signed with Rusnano of Russia, Abu Dhabi Investment Authority (ADIA) of Abu Dhabi and Qatar Investment Authority. “The Governing Council was apprised of the interactions that have been held with a large number of long term investors, Sovereign Wealth Funds, Pension Funds from across the globe, seeking to invest in the NIIF,” a finance ministry statement said………………………………………..Full Article: Source

Norway to raise spending from wealth fund -statistics agency

Posted on 03 June 2016 by VRS  |  Email |Print

Norway will probably continue to increase the spending of money from its $860 billion sovereign wealth fund next year as the government battles an economic downturn, Statistics Norway’s chief forecaster Torbjoern Eika (SSB) predicted on Thursday.
Norway’s structural non-oil deficit, a key measure of fiscal spending, is expected to rise to more than three percent of the value of the wealth fund in 2017 and 2018 from an expected 2.8 percent in 2016, SSB said………………………………………..Full Article: Source

India mulls ‘outcome-linked’ incentive for NIIF chief

Posted on 02 June 2016 by VRS  |  Email |Print

The government is considering an ‘outcome-linked’ payment package as part of incentives for the recruitment of a chief executive of India’s first sovereign wealth fund, the National Investment and Infrastructure Fund (NIIF).
Negotiations on the incentive payment, which will be paid for every $10 billion the fund succeeds in raising, are still on. But an official source said that it could be as high as Rs.10 crore. Another source privy to the details of the negotiations said that efforts are on to have it pegged closer to Rs.2 crore………………………………………..Full Article: Source

New 1MDB board must find out what happened to US$7 billion

Posted on 02 June 2016 by VRS  |  Email |Print

The new 1MDB board of directors must immediately instruct auditors Deloitte to resume its audit of the firm so as to get a full picture of the company’s financial standing, Petaling Jaya Utara MP Tony Pua said. The audit is on the financial year ending March 31, 2015 and March 31, 2016.
“Without a clear and accurate picture of the financial position of the company, the board of directors would be acting in a vacuum, rushing headlong into decisions without knowing the underlying status of the company,” he said in a statement………………………………………..Full Article: Source

Malaysia announces wind-up of 1MDB

Posted on 01 June 2016 by VRS  |  Email |Print

Malaysia has replaced the board of 1Malaysia Development Berhad with treasury officials, paving the way for the dissolution of the troubled state investment fund.
A three-member board headed by the treasury’s top administrative officer succeeded the board of directors of 1MDB, effective Tuesday, the Ministry of Finance said in a press release. “The change of board reflects 1MDB’s new direction as a nonoperating company, focusing on completion of the successful rationalization plan and on servicing future debt repayments.”……………………………………….Full Article: Source

Malaysia appoints new 1MDB directors

Posted on 01 June 2016 by VRS  |  Email |Print

Malaysia appointed new directors to 1Malaysia Development Berhad (1MDB) after dissolving the advisory board headed by Malaysian Prime Minister Najib Razak, amid global investigations into alleged money laundering and embezzlement at the state fund.
The three-member board will be chaired by the Finance Ministry’s top bureaucrat, Mr Mohd Irwan Serigar Abdullah, according to an e-mail statement. There were six members on the previous board including Mr Arul Kanda, who was brought in as president in January last year to fix 1MDB’s finances. He will remain as president, the government said………………………………………..Full Article: Source

Norway Oil Fund Adds External Managers

Posted on 01 June 2016 by VRS  |  Email |Print

Norway’s sovereign-wealth fund, the world’s largest by assets, said Tuesday that external organizations are managing more of its money compared with three years ago, as the fund continues to add local expertise in emerging markets.
“We want to invest in emerging markets, but we want to invest in the right companies,” said Erik Hilde, head of external strategies at Norges Bank Investment Management. “Since inception, the active external equity mandates have generated [annual average] excess returns of 1.7% after fees, compared with local market indexes.”……………………………………….Full Article: Source

Stay Away From Indian Indexes, Biggest Wealth Fund Manager Says

Posted on 01 June 2016 by VRS  |  Email |Print

Quantum Advisors, which picks Indian stocks for Norway’s $860 billion wealth fund, says investors should stay away from index investing in Asia’s fourth-biggest market. Investing in indexes is a poor place to put money because you don’t necessarily go into the companies with the most potential, said Ajit Dayal, the director of the Mumbai-based fund, which manages $2 billion in Indian equities.
“It’s a big mistake because you’re buying companies whose business premise isn’t that I have the best product for you,” he said of some companies in an interview Tuesday in Oslo after a seminar organized by Norway’s sovereign wealth fund, the world’s biggest. “The business premise is to have the best connection with the government.”……………………………………….Full Article: Source

Norway wealth fund needs policy on tax declarations: committee

Posted on 31 May 2016 by VRS  |  Email |Print

Norway’s $860-billion sovereign wealth fund, the world’s largest, must develop a policy on how companies in which it has invested declare their taxes, parliament’s finance committee said. The fund, managed by a unit of the central bank, invests the income from Norway’s oil industry. It owns 1.3 percent of the world’s listed company equity, with stakes in some 9,050 firms.
The move is a first step by Norway to use the fund as a tool to combat the use of tax havens. It follows the Panama Papers leaks in April, which revealed details of corporate and individual tax evasion and triggered a global backlash. Two key committee members told Reuters of the move last week………………………………………..Full Article: Source

Norway’s sovereign wealth fund, its manager get museum treatment

Posted on 31 May 2016 by VRS  |  Email |Print

Ever wondered how the world’s largest sovereign wealth fund, the Government Pension Fund Global, Oslo, is managed? Well, now’s your chance to find out. In tandem with the 200th birthday of Norges Bank’s establishment, following Norway’s separation from Denmark; and the 20th anniversary of Norway’s Ministry of Finance’s first capital transfer to the fund, Norges Bank and the Norwegian Petroleum Museum have launched an anniversary exhibit at the museum in Stavanger, Norway, according to the museum’s website.
“From Oil Wealth to Financial Wealth” provides insight into how Norges Bank manages the fund’s roughly 7 trillion Norwegian kroner ($851 billion) of assets………………………………………..Full Article: Source

Qatar Investment Authority taking steps to restructure assets

Posted on 31 May 2016 by VRS  |  Email |Print

In an attempt to manage a significant amount of capital, the Qatar Investment Authority (QIA) is apparently shuffling up to $100 billion into new investment efforts in what Arabian Business magazine is calling a “major overhaul.” A magazine story in mid-May said the Qatari sovereign wealth fund (SWF) is creating a new internal division called Qatar Investments, to be headed by Ahmed Al Rumaihi, formerly a diplomat in the United States.
Changes also include new hires from Citigroup and other sources. The QIA fund has more than $250 billion in assets. Early this year, reports emerged that the QIA is opening an office in New York as part of an effort to invest $35 million in the United States in the next five years………………………………………..Full Article: Source

Norway to regulate $850 billion fund’s tax haven exposure-lawmakers

Posted on 27 May 2016 by VRS  |  Email |Print

Norway will take a first step this week towards using its $850 billion sovereign wealth fund, the world’s biggest, as a tool to combat the use of tax havens, two key members of parliament’s finance committee told Reuters on Wednesday.
The country’s right-wing minority government will be asked to take a two-pronged approach to regulation, examining both the fund’s own use of ownership structures designed to cut its liability for tax on its foreign investments as well as that of companies it invests in, the politicians said. The move follows the Panama Papers leaks in April, which revealed details of corporate and individual tax evasion and triggered a global backlash against tax havens………………………………………..Full Article: Source

Saudi wealth fund said to weigh US$8b bid for financial hub

Posted on 26 May 2016 by VRS  |  Email |Print

Saudi Arabia’s Public Investment Fund is likely to make an offer next month to buy Riyadh’s unfinished financial hub as the government attempts to rehabilitate a project plagued by delays and cost overruns.
The fund may pay about 30 billion riyals (S$10.95 billion) - the amount already spent on the King Abdullah Financial District by the kingdom’s Public Pension Agency - plus the cost of undeveloped plots, a person with knowledge of the plan said, asking not to be identified as discussions are private. The plan includes a new company to oversee the project’s completion and management………………………………………..Full Article: Source

Hong Kong Monetary Authority looks to improve banks’ cyber security

Posted on 26 May 2016 by VRS  |  Email |Print

The banking regulator began a three-month consultation into the initiative on Tuesday, designed to ensure banks are ready to face online threats. The banking regulator is considering plans to require banks in the city to assess their resilience to cyber attacks and ways to train more qualified cybersecurity experts. From Tuesday, the Hong Kong Monetary Authority began a three-month consultation into the initiative.
The latest policy drive, which was named the “Cybersecurity Fortification Initiative”, was announced after the authority’s chief executive Norman Chan Tak-lam said at the Cyber Security Summit last week that the city’s financial sector could not be complacent, even though there were very few cases of serious cyberattacks reported in the past in Hong Kong………………………………………..Full Article: Source

Oil Fund wielded its clout over bank executives’ pay

Posted on 24 May 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund known as the Oil Fund has followed through on its decision to start using its clout, as a shareholder in major companies around the world, to oppose huge executive pay packages. Newspaper Dagens Næringsliv (DN) reported that it was part of voting down bonus packages last week, for example, for the bosses of Deutsche Bank in Germany.
Oil Fund boss Yngve Slyngstad has warned that he intends to boost the campaign against excessive executive pay. That’s what happened on Thursday, when the board of Deutsche Bank had proposed pay packages with large bonus prospects for top management………………………………………..Full Article: Source

Sujoy Bose may head India’s quasi-sovereign wealth fund NIIF

Posted on 18 May 2016 by VRS  |  Email |Print

Sujoy Bose, the global co-head for infrastructure and natural resources at International Finance Corporation, is likely to be appointed as the first CEO of India’s pioneering quasi-sovereign wealth fund, (SWF) the National Infrastructure and Investment Fund (NIIF), official sources told FE.
The other contender for the post has been Luis Miranda, an adviser at Morgan Stanley Investment Management and a former CEO of IDFC Private Equity. The sources said Bose’s name has been recommended by the finance ministry to head NIIF as he will be able to hit the ground running given his current assignment at IFC, the private lending arm of the World Bank. His appointment order is expected shortly………………………………………..Full Article: Source

Malaysia Says Too Early to Conclude Fraud in 1MDB-Abu Dhabi Deal

Posted on 18 May 2016 by VRS  |  Email |Print

Malaysia said Tuesday it’s too early to conclude if fraud had occurred in dealings between its troubled state company and an Abu Dhabi sovereign wealth fund. 1Malaysia Development Bhd., which is the subject of global investigations, said last month it could be a victim of fraud if payments of $3.5 billion intended for Abu Dhabi’s International Petroleum Investment Co. never made it there.
“1MDB is still reviewing and taking steps to prove that IPIC and Aabar Investments PJS are responsible for the funds that had been paid by 1MDB to Aabar BVI totaling $3.5 billion,” the Malaysian finance ministry said in a written reply in parliament………………………………………..Full Article: Source

Qatar wealth fund ‘to create $100bn unit in revamp’

Posted on 18 May 2016 by VRS  |  Email |Print

Qatar’s sovereign wealth fund is undergoing its biggest overhaul since 2014, grouping $100bn of investments in local companies into a new unit and abandoning the Qatar Holding name synonymous with its highest-profile deals. About $100bn of the Qatar Investment Authority’s stakes in companies such as Qatar Airways and Qatar National Bank will be placed into a new internal division named Qatar Investments, they said.
The fund is seeking to bring greater oversight by having a single person in charge, the sources said. The Qatar Holding name, under which the state gained an international profile after investing in companies ranging from Glencore to Barclays, will now be replaced by the QIA name on international investments, according to the sources………………………………………..Full Article: Source

UAE sovereign wealth funds hiring in-house to cut costs

Posted on 17 May 2016 by VRS  |  Email |Print

Measures are seen as a means of reducing the “huge fees” some funds pay to external managers. Sovereign wealth funds in the UAE are increasing in-house recruitment and consolidating their holdings under larger private equity players to cut costs, according to law firm Baker Baker & McKenzie.
Speaking to reporters in Dubai earlier Monday, Baker & McKenzie head of UAE corporate practice Borys Dackiw said some sovereign funds were still engaging in “very active buying” despite expectations that low oil prices would force them to cut back………………………………………..Full Article: Source

Companies listen when Norway’s oil fund shouts

Posted on 17 May 2016 by VRS  |  Email |Print

When the quiet one in the room suddenly shouts, people tend to listen. On that basis, the reserved and thoughtful Norwegians who run the country’s $850bn oil fund should get a decent hearing next time they visit Wolfsburg, having declared they will sue Volkswagen over the emissions scandal.
Class-action suits by investors are an oddly circular way to extract money from the pot they themselves own and should not generally be encouraged. The Norwegian action needs to be seen, though, in the light of VW’s peculiarly dysfunctional corporate governance and the wider strategy of the world’s largest sovereign wealth fund………………………………………..Full Article: Source

Norwegian oil fund attacks VW corporate governance

Posted on 16 May 2016 by VRS  |  Email |Print

Norway’s $850bn oil fund does not like commenting about individual companies it owns shares in. It usually goes out of its way to avoid saying anything about any of its more than 9,000 investments.
But Volkswagen is starting to become the exception that proves the rule. The world’s largest sovereign wealth fund has become increasingly open in its distaste for the German carmaker, culminating in it confirming to the Financial Times that it would take legal action against VW over its emissions scandal………………………………………..Full Article: Source

1MDB Default Shows Malaysia SOE Debt, Governance Risks

Posted on 16 May 2016 by VRS  |  Email |Print

1Malaysia Development Berhad’s (1MDB) missed bond coupon payment in April highlights ongoing uncertainty around the finances and governance of the state-owned fund. The situation is unlikely to lead to an immediate crystallization of the existing guarantee obligations of the Malaysian sovereign for 1MDB securities affected by cross-defaults, Fitch Ratings says.
The risk to the sovereign credit profile lies more in the potential for the affair to weaken policy focus or contribute to political instability. However, there is little sign of these risks materializing as yet………………………………………..Full Article: Source

KIC to appoint domestic managers for offshore alternative mandates

Posted on 16 May 2016 by VRS  |  Email |Print

Korea’s sovereign wealth fund (SWF), Korea Investment Corporation (KIC), is reportedly planning to select a roster of local asset managers and securities brokerages as general partners responsible for the operation of its overseas alternative investments.
This will be the first time KIC has outsourced its offshore alternative mandates to domestic financial entities. Local media reported that KIC had held a meeting with the nation’s major asset managers and securities brokerages in Seoul on May 11 to select general partners, which will be responsible for its overseas infrastructure mandates worth US$2 billion………………………………………..Full Article: Source

KIC to team with local firms for overseas investments: chief

Posted on 13 May 2016 by VRS  |  Email |Print

Korea’s sovereign wealth fund is willing to team up with local brokerages and asset management firms to invest in overseas infrastructure projects, its chief said Wednesday. The Korea Investment Corp., which manages about $90-billion assets, has rarely cooperated with local investment firms before.
“As overseas construction projects are evolving to become large investment projects, customized financial support is all the more necessary now,” Eun Sung-soo, CEO of KIC, said in a meeting with heads of local brokerages and asset management firms in Seoul………………………………………..Full Article: Source

Top SWF alternatives allocator questions hedge funds’ nous

Posted on 13 May 2016 by VRS  |  Email |Print

A top allocator to alternative investments at the $750 billion China Investment Corporation, one of the world’s largest state investment funds, is unsure most hedge fund managers are as smart as they think they are.
Roslyn Zhang, a managing director in the department of fixed income and absolute return investments at CIC, told attendees at the 2016 SALT Conference in Las Vegas that she was becoming increasingly “disappointed about quite a few aspects of the industry”………………………………………..Full Article: Source

Saudi Arabia to transfer KAFD ownership to state wealth fund

Posted on 10 May 2016 by VRS  |  Email |Print

Saudi Arabia is to transfer ownership of Riyadh’s floundering King Abdullah Financial District to the Public Investment Fund (PIF) from the Public Pension Agency (PPA), according to four sources aware of the matter.
The move is an attempt to rescue the project, started a decade ago with the aim of making the Saudi capital a global financial centre, and is another example of the burgeoning power of the PIF, which the Gulf state wants to make the world’s largest sovereign wealth fund………………………………………..Full Article: Source

Nigeria: FG to Reposition Sovereign Wealth Fund

Posted on 09 May 2016 by VRS  |  Email |Print

The federal government has disclosed that it plans to reposition the Sovereign Wealth Fund managed by the Nigeria Sovereign Investment Authority (NSIA). The planned repositioning is in tandem with the infrastructure objectives of the federal government.
The Minister of Finance, Mrs. Kemi Adeosun made the disclosure in a statement issued by her Media Adviser, Mr. Festus Akanbinon. Under the SWF, which had a seed capital of $1.55bn, there are three categories of fund from which investments could be anchored………………………………………..Full Article: Source

Saudi Arabia’s Vision 2030 is remarkable, but it will still need oil in four years

Posted on 09 May 2016 by VRS  |  Email |Print

Prince Mohammed bin Salman’s TV interview to launch Saudi Arabia’s Vision 2030 was an unprecedented event, where headline writers rushed to describe the details as a transformational plan to wean the country off oil. Most remarkable of the things said in that interview on April 25 was the deputy crown prince’s promise to end oil dependence by 2020 – in four short years.
How would this be achieved? Well, about US$100 billion of new taxes will be introduced by then, austerity would be into its fourth year, while Saudi Aramco’s transfer to the Public Investment Fund (PIF) would “make investments the source of Saudi government revenue, not oil”………………………………………..Full Article: Source

Malaysia reforms 1MDB, hopes for fresh start

Posted on 06 May 2016 by VRS  |  Email |Print

1 Malaysia Development Berhad, the troubled state fund, will undergo reorganization including the removal of its powerful advisory board. The move aims to give the fund a fresh start and to improve its tarnished image by passing the buck of decision-making to its parent, the Ministry of Finance, which is headed by Prime Minister Najib Razak.
Najib was chair of the advisory board. 1MDB, under the leadership of Najib, will appoint a new board of management, the finance ministry said in a statement on Wednesday. 1MDB’s debts had spiraled to $11 billion and the company had recently defaulted on the interest payment on a bond………………………………………..Full Article: Source

Najib to be stripped of veto power over 1MDB’s decisions

Posted on 05 May 2016 by VRS  |  Email |Print

Malaysia’s Finance Ministry has taken up the recommendations put forward by a parliamentary committee probe into troubled 1Malaysia Development Berhad (1MDB), including the removal of Prime Minister Najib Razak’s veto power over major decisions by the state investor.
The ministry, which wholly owns 1MDB, yesterday also accepted the resignation of 1MDB’s six-member board of directors who offered to quit en masse after the Public Accounts Committee (PAC) tabled its report in Parliament last month………………………………………..Full Article: Source

Malaysia dissolves 1MDB advisory board after payments probe

Posted on 05 May 2016 by VRS  |  Email |Print

Malaysia dissolved the advisory board of state investment fund 1MDB and is set to abolish a clause that gives the prime minister the final say over its investment decisions on Wednesday, as it moves to implement governance reforms recommended by a parliamentary inquiry.
The Malaysian parliament’s public accounts committee last month called for the fund’s advisory board — headed by premier Najib Razak — to be dismantled, following an investigation that found billions of dollars in transactions had not been accounted for………………………………………..Full Article: Source

Argyle ‘to manage $62m pool from Temasek unit’

Posted on 05 May 2016 by VRS  |  Email |Print

A unit of Temasek Holdings has given a $62 million pool of investments to Argyle Street Management, in the second such allocation by the firm to the Hong Kong asset manager, according to people familiar with the matter.
Mainboard-listed TIH Ltd, the private equity firm owned by Argyle, will manage the investment, which includes stakes in Whiterock Medical, a locally based distributor of medical instruments, and Australian coal operations company Carbon Energy, the people said, requesting anonymity because the information is private………………………………………..Full Article: Source

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