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Libyan unity government may get access to Sovereign Wealth Fund

Posted on 04 April 2016 by VRS  |  Email |Print

The Libyan Ambassador to the UN, Ibrahim Dabbashi, wants the UN to approve a sanctions exemption for the Libyan sovereign wealth fund (LIA). The LIA was controlled by the Gadaffi family.
Dabbashi complained about ineffective management of the frozen assets. The sanctions were imposed to stop Gaddafi from escaping with Libya’s wealth. Dabbashi said: “The LIA estimates that in 2014 alone, instead of increasing the value of its assets base, it had real losses of $721 million………………………………………..Full Article: Source

Kuwait says no prosecutions in sovereign fund probe

Posted on 31 March 2016 by VRS  |  Email |Print

Kuwait’s cabinet has rejected recommendations by members of parliament to prosecute officials of its sovereign wealth fund for allegedly violating regulations in managing the country’s oil wealth, Finance Minister Anas al-Saleh said on Wednesday.
“I assert my confidence in those in charge of the Kuwait Investment Authority (KIA) until proven otherwise,” Saleh told reporters after a closed meeting of parliament to discuss an investigation of the KIA’s London arm, the Kuwait Investment Office (KIO)………………………………………..Full Article: Source

Reports Future Fund viewed as ‘soft touch’ for Adani Funding

Posted on 30 March 2016 by VRS  |  Email |Print

Financial activist group Market Forces is calling on the Turnbull Government to clarify whether Australia’s sovereign wealth fund – the Future Fund – will be used to subsidise the controversial Adani mega-mine in the Galilee Basin. The call follows Indian media reports that Indian Finance Minister Arun Jaitley will ‘likely push for easy funding from the Australian Government and Future Fund Chair Peter Costello during his visit to Australia this week.
“Over a dozen banks worldwide have either backed away from the environmentally disastrous Carmichael mega coal mine, ruled out funding for it, or dismissed it as financially unviable”, said Market Forces Executive Director Julien Vincent………………………………………..Full Article: Source

Forty years on, Adia continues to evolve and grow

Posted on 22 March 2016 by VRS  |  Email |Print

Abu Dhabi Investment Authority (Adia) said they made great strides in developing internal capabilities and increasing its internal flexibility to adapt to changing market conditions as the sovereign wealth fund celebrates its 40 years existence.
In an open letter on Monday, Managing Director of Adia, Shaikh Hamed Bin Zayed Al Nahyan said the institution has witnessed much in its history, from market booms to steep declines, and wide swings in commodity prices. “The responsibility we hold requires us to navigate with a steady hand through all conditions, never losing sight of the horizon. This ensures we are able to fulfil our obligations at all times, without compromising our long term investment goals or reputation in the market,” he said………………………………………..Full Article: Source

ADIA at 40: Sovereign wealth fund has really safeguarded the Emirate, says Eissa Al Suwaidi

Posted on 22 March 2016 by VRS  |  Email |Print

When the Abu Dhabi Government was looking for experienced leaders such as Eissa Al Suwaidi for its newest sovereign wealth fund in 2007, it looked no further than the Emirate’s biggest pool of financial talent: the Abu Dhabi Investment Authority (Adia).
Mr Al Suwaidi joined the Abu Dhabi Investment Council, Adia’s sister fund and main domestic peer, at its creation and became its managing director last year. Like many of the chiefs of Abu Dhabi and UAE institutions, including the Central Bank, the top echelons of the financial elite are graduates of Adia………………………………………..Full Article: Source

Azerbaijan’s president approves amendments to SOFAZ budget

Posted on 21 March 2016 by VRS  |  Email |Print

Azerbaijan’s President Ilham Aliyev has signed a decree on March 18 to make amendments to the 2016 budget of the State Oil Fund of Azerbaijan (SOFAZ). Under the amendments, SOFAZ revenues and expenditures for 2016 were set at 4,578,474,600 manats and 10,668,933,700 manats, respectively.
Revenues from the sale of Azerbaijan’s profit oil and gas are forecasted at 3,875,682,400 manats, and the revenues from oil and gas transit through Azerbaijan’s territory at 19.278 million manats. In addition, the SOFAZ revenues from placement and management of assets are envisaged at 679,950,200 manats, and the bonuses paid by investors within oil and gas agreements, or in connection with their implementation at 162,000 manats………………………………………..Full Article: Source

Sovereign wealth funds: Australia is not Alaska

Posted on 21 March 2016 by VRS  |  Email |Print

Last weekend Harold Mitchell explored the Future Fund’s investment performance. As Australia’s sovereign wealth fund, investing over $133 billion in five different public asset funds on behalf of future generations of Australians, we welcome interest in what we do.
Mitchell applauds the creation of the Future Fund in 2006 as a means of helping to offset the pressures of an ageing population and strengthening Australia’s long-term financial position. Given its long-term purpose, it is right for last week’s commentary to focus on the long-term performance of the portfolio………………………………………..Full Article: Source

Temasek Unit Fullerton Appoints Head of Multi-Asset Strategies

Posted on 18 March 2016 by VRS  |  Email |Print

Fullerton Fund Management Co., owned by Singapore’s Temasek Holdings Pte, has hired Pranay Gupta as head of multi-asset strategies, a new role that it has created as it seeks to offer more investment offerings combining different asset classes.
“As investors search for enhanced returns amid increasing volatility, multi-asset investing has become a specialized investment skill,” Fullerton Chief Executive Officer Manraj Sekhon said in an e-mailed statement. “The ability to tailor multi-asset solutions according to their risk return parameters is essential for our clients.”……………………………………….Full Article: Source

Norway fund picks Centum unit Nabo as assets manager (Kenya)

Posted on 18 March 2016 by VRS  |  Email |Print

Nabo Capital, a subsidiary of investment firm Centum, has been appointed one of the asset managers of Norway’s sovereign wealth fund, the world’s largest at $818 billion (Sh83 trillion).
Nabo, which was established three years ago, was among 11 fund managers picked by the oil revenue-funded Government Pension Fund Global late last year while eight others were dropped. The inclusion of Nabo in the list of the fund’s 73 external managers will see the company earn fees as it invests the undisclosed sums in the continent’s equities and fixed income securities………………………………………..Full Article: Source

Norway’s $834bn wealth fund defends active management strategy

Posted on 18 March 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, defended on Wednesday its strategy of chasing returns greater than market benchmarks, arguing the benefits outweighed the associated risk and cost. The $834 billion fund, worth more than twice the country’s annual gross domestic product, is invested in foreign stocks, bonds and real estate to share the wealth from oil and gas production with future generations.
Managed by a unit of the central bank, the fund aims to beat global equity and fixed income indexes by a quarter percentage point a year by taking on added risk. That includes picking stocks it expects to deliver long-term returns. Following criticism by some academics of the fund’s strategy, the central bank had promised more transparency, including an annual report analysing its risk-adjusted returns………………………………………..Full Article: Source

Is There Growing Politicization Of Norway’s Sovereign Fund?

Posted on 18 March 2016 by VRS  |  Email |Print

Norway has been able to amass tremendous financial wealth from petroleum revenue over the past fifteen years. The wealth fund commands attention from policymakers, asset managers and the citizens of Norway. Thus, Norway’s Government Pension Fund Global (GPFG), the ex-Norway part of oil-derived assets, wields significant influence when it comes to corporate governance and investment policy.
For example, allocation to renewable and environmental strategies gained further traction in 2009, amid pressure from Norwegian politicians. During that period, Norway’s sovereign fund awarded mandates to a number of external managers in environmental-related mandates. By 2014, Norges Bank Investment Management (NBIM) established their first portfolio dedicated to green bonds, in which the reference portfolio is based on a sub-segment of the Barclays MSCI Green Bond Indices………………………………………..Full Article: Source

Norway’s $834 billion wealth fund defends active management strategy

Posted on 17 March 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, defended on Wednesday its strategy of chasing returns greater than market benchmarks, arguing the benefits outweighed the associated risk and cost. The $834 billion fund, worth more than twice the country’s annual gross domestic product, is invested in foreign stocks, bonds and real estate to share the wealth from oil and gas production with future generations.
Managed by a unit of the central bank, the fund aims to beat global equity and fixed income indexes by a quarter percentage point a year by taking on added risk. That includes picking stocks it expects to deliver long-term returns………………………………………..Full Article: Source

Norway fund picks Centum unit Nabo as assets manager

Posted on 17 March 2016 by VRS  |  Email |Print

Nabo Capital, a subsidiary of investment firm Centum, has been appointed one of the asset managers of Norway’s sovereign wealth fund, the world’s largest at $818 billion (Sh83 trillion). Nabo, which was established three years ago, was among 11 fund managers picked by the oil revenue-funded Government Pension Fund Global late last year while eight others were dropped.
The inclusion of Nabo in the list of the fund’s 73 external managers will see the company earn fees as it invests the undisclosed sums in the continent’s equities and fixed income securities………………………………………..Full Article: Source

Alaska Permanent Drives to Rebuild Leadership Team

Posted on 16 March 2016 by VRS  |  Email |Print

Former Alaska Permanent Fund CEO Mike Burns retired four months earlier, without a named successor. For a few days, the $52 billion organization had no permanent executive leadership in place.
Since then, trustees made several staffing appointments, including former state treasury supervisor Angela Rodell as CEO. The latest hire came late last month, fund documents showed, when former New Jersey pension system director Tim Walsh signed on as a part-time investment advisor with a two-year contract………………………………………..Full Article: Source

Norway’s Sovereign Wealth Fund Drops Pimco as External Manager

Posted on 15 March 2016 by VRS  |  Email |Print

Norway’s $830 billion sovereign wealth fund last year ended a contract for Pacific Investment Management Co. to handle some of its bond investments. The Newport Beach, California-based fund was one of nine companies dropped last year, according to a comparison of lists of external managers in 2015 and 2014.
Others include Black River Asset Management, BTG Pactual Asset Management and BNY Mellon Asset Management. It also hired 12 new managers, including Nairobi-based Nabo Capital and Lynear Wealth Management, based in Colombo, Sri Lanka. The fund has been increasing its focus on emerging and frontier markets to boost returns………………………………………..Full Article: Source

Leaving the EU is NOT a risk for investors, says world’s largest sovereign wealth fund

Posted on 11 March 2016 by VRS  |  Email |Print

The boss of the world’s biggest sovereign wealth fund dismissed the prospect of Britain leaving the EU as a large investment risk. In fact, chief executive of Norway’s £884billion fund Yngve Slyngstad said it would INCREASE holdings in the UK even if the country votes out of the bloc in June.
Eurosceptics have revelled in the comments and said it proves claims about a plummeting economy after a Brexit are scaremongering. Mr Slyngstad said: “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………………………………………..Full Article: Source

Norway’s oil fund says it can easily cope with Oslo withdrawal

Posted on 10 March 2016 by VRS  |  Email |Print

Norway’s $830bn oil fund can easily cope with the government in Oslo withdrawing the first money from the country’s rainy-day pot and does not face pressure to sell assets, according to its chief executive. The centre-right government took NKr6.7bn ($800m) out of the world’s largest sovereign wealth fund in January, many years ahead of the first predicted withdrawals.
However Yngve Slyngstad, chief executive of Norges Bank Investment Management, the fund’s manager, said it could cover the withdrawals through the cash flow it received from dividends and bond coupon payments, which last year totalled NKr191.5bn………………………………………..Full Article: Source

Norwegian wealth fund has a New York state of mind: Gadfly

Posted on 10 March 2016 by VRS  |  Email |Print

On the website for Norway’s Sovereign Wealth Fund, a hypnotic and constantly-changing ticker indicates how much kroner the fund is losing and, mostly, gaining. People in London and New York worried about property prices might find it calms their nerves.
The US$830 billion (S$1.14 trillion) Government Pension Fund Global, the biggest sovereign wealth fund, reported results for 2015 on Wednesday: an overall return of 2.7 per cent, achieved despite volatile currency and equity markets, negative interest rates and worries about global growth. Still, that’s its weakest return in five years and worse than the average annual return of 3.7 per cent (after inflation and management costs) since 1998 when the fund’s current management structure was set up………………………………………..Full Article: Source

Malaysia 1MDB Scandal: Former Goldman Sachs Top Banker Tim Leissner Subpoenaed By US Investigators

Posted on 09 March 2016 by VRS  |  Email |Print

A former senior official at Goldman Sachs Group Inc. has been subpoenaed by American authorities investigating a Malaysian government investment fund, according to reports Tuesday. Tim Leissner, the former chairman of the Southeast Asian division of the investment bank, was issued a subpoena after he resigned in February.
Leissner worked on several significant deals for the state-run fund, the 1Malaysia Development Bhd (1MDB), which together netted hundreds of millions of dollars for the investment bank, Bloomberg reported………………………………………..Full Article: Source

Abu Dhabi fund chief says GlobalFoundries not for sale

Posted on 08 March 2016 by VRS  |  Email |Print

GlobalFoundries and its Fab 8 computer chip factory in Saratoga County are not for sale, despite news reports and speculation that its Abu Dhabi parent company was looking to sell off all or a portion of the semiconductor company to raise cash.
The denial of a potential sale was made by Khaldoon Khalifa Al Mubarak, the U.S.-educated CEO of Mubadala Development Co., the Abu Dhabi investment fund that owns GlobalFoundries. Bloomberg reported several months ago that Mubadala was looking to sell all or a piece of GlobalFoundries to raise money amid the global oil glut that had sent oil prices down to historic lows………………………………………..Full Article: Source

Libya’s factions squabble over Gaddafi’s sovereign wealth fund

Posted on 08 March 2016 by VRS  |  Email |Print

The dispute over who controls the Libyan Investment Authority (LIA) reached London’s High Court on Monday, with $67 billion in assets at stake. The case has the potential to lay the ground for further lawsuits against Goldman Sachs and Societe Generale over the alleged mismanagement of $3 billion.
Amid the 2011 uprising against the Gaddafi regime, the UN Security Council froze the assets of the LIA and 85% of the fund’s assets remain frozen to this day. However, it is not even clear who holds responsibility for the fund. In 2014, the Council of Deputies replaced AbdulMagid Breish with Hassan Bouhadi, but Mr. Breish was later reinstated by the Libyan Court of Appeal in Tripoli. So the LIA has two chairmen vying for control over the fund………………………………………..Full Article: Source

Twists and turns as battle for Gaddafi-era sovereign fund billions rumbles on in London courts

Posted on 08 March 2016 by VRS  |  Email |Print

The two men competing for control of Libya’s $67 billion sovereign wealth fund asked a London judge to decide who has the right to oversee lawsuits seeking to recover billions of dollars lost in deals with French transnational bank Societe Generale SA and Goldman Sachs Group Inc in the US.
Abdulmagid Breish, who is based in Tripoli, and Hassan Bouhadi, who wants to lead the Libya Investment Authority (LIA) from Malta, both argue they are the sole chairman of the fund. The LIA, set up in 2006 to manage Libya’s growing oil revenue surplus, is already the largest sovereign wealth fund in Africa. The 2011 overthrow and death of Libyan dictator Muammar Gaddafi left behind a violent power struggle that continues to blight the oil-rich nation………………………………………..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

Norway says made first withdrawal from oil fund in January

Posted on 04 March 2016 by VRS  |  Email |Print

With its economy weakening, Norway’s government made its first withdrawal from the country’s $826 billion sovereign wealth fund in January, 20 years after first depositing cash from its vast oil sector into the account, the finance ministry said.
The finance ministry did not confirm details of the withdrawal, but newspaper Dagens Naeringsliv said 6.7 billion Norwegian crowns ($780 million) had been extracted to pay for public spending. The government, led by Prime Minister Erna Solberg of the Conservatives and Finance Minister Siv Jensen of the smaller Progress Party, had flagged in its October budget that it might make the first withdrawal from the rainy-day fund this year………………………………………..Full Article: Source

NZ Super Fund appoints Ramius to US$200m merger arbitrage mandate

Posted on 02 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

SOFAZ executive director takes part at VII EITI Global Conference

Posted on 01 March 2016 by VRS  |  Email |Print

Delegation headed by the Chairman of the National Extractive Industries Transparency Initiative (EITI) Committee and the Executive Director of the State Oil Fund of the Republic of Azerbaijan Shahmar Movsumov participated at the VII EITI Global Conference held on February 24-25, 2016 in Lima, Peru.
During the Conference EITI Board held 32nd and 33rd meetings. Besides, Board members made amendments to EITI Standard and accepted two countries (Dominican Republic and Federal Republic of Germany) as Candidate countries. Thus, number of EITI implementing countries increased up to 51. 4 countries (Democratic Republic of Congo, Ghana, Mongolia and Philippines) were awarded with the 2016 EITI Award………………………………………..Full Article: Source

China’s sovereign fund CIC reshuffles team

Posted on 29 February 2016 by VRS  |  Email |Print

China’s sovereign wealth fund China Investment Corporation (CIC) is preparing for a strategic shift and will focus more on direct investments and proprietary relationships with fund managers. It has reshuffled its infrastructure team to guide the shift in focus. The firm has created a new division, named Department 2, which will invest in consumer and industrial sectors, to be led by Mi Tao, reported Infrastructure Investor.
The existing Department 1 will now be led by Benjamin Bao, and includes three infrastructure teams managed by Yan Wang, David Xie and Yuling Lu.They will look to invest in areas like renewable energy, transport and utilities. Other teams will focus on oil & gas and metals & mining………………………………………..Full Article: Source

Key executive management members of Korea’s KIC resign

Posted on 24 February 2016 by VRS  |  Email |Print

Heungsik Choo, the chief investment officer (CIO) of Korea’s sovereign wealth fund (SWF), Korea Investment Corporation (KIC), and two other executive management members have decided to step down. Choo joined the KIC as CIO in 2014. Prior to that, he was the head of the reserve management group at the Bank of Korea (BOK) from November 2011 to February 2014.
Young Kim, the SWF’s chief operating officer (COO), and Taeg Ki Hong, its chief risk and compliance officer, expressed their intention to resign from their positions on February 19, 2016. Kim joined the KIC as the head of the corporate planning and affairs group in 2007 and was promoted to COO in 2011……………………………………….Full Article: Source

Sovereign wealth funds are ditching fund managers in their droves

Posted on 23 February 2016 by VRS  |  Email |Print

Bad news for the world’s big fund managers: they are being abandoned by sovereign wealth funds. In each of the five years to 2015 these state run funds (largely owned by oil producing companies) shovelled something in the region of $48bn into the markets via the big asset managers. Last year, they pulled over $46bn out.
That, said the head of one large fund management firm, was “very hard”. It’s about to get harder. Moody’s reckons the sovereign wealth funds will pull out the same again, plus another 25% this year “as oil-dependent funds increase redemptions from asset managers in order to plug fiscal deficits”. Norway alone says it is likely to pull out €8.4bn………………………………………..Full Article: Source

Norway Central Bank Chief Warns on Oil Wealth as Coffers Raided

Posted on 22 February 2016 by VRS  |  Email |Print

Norway’s central bank governor stepped up his warning on excessive use of the nation’s oil income as he predicted the government may need to withdraw almost $10 billion from its massive wealth fund this year.
“The fall in oil prices will reduce Norway’s national wealth,” Norges Bank Governor Oeystein Olsen said Thursday in his annual speech in Oslo. With the $810 billion fund’s era of growth behind it and returns ahead uncertain amid a slowing global economy, “increased spending is not a viable path to follow.”……………………………………….Full Article: Source

KIC chief prioritizes risk management

Posted on 18 February 2016 by VRS  |  Email |Print

The new chief of Korea’s sovereign wealth fund on Wednesday stressed risk control in an era of global financial volatility, saying its return on investment this year could remain negative after a near 3 percent loss last year.
“The outlook for our investment returns is not bright this year in light of the weakness in global markets, with the New York Stock Exchange down nearly 10 percent,” Eun Sung-soo, CEO of Korea Investment Corp. told reporters at its head office in Seoul. The former World Bank director and long-time Korean Finance Ministry official took charge of the $91.8 billion national wealth fund last month………………………………………..Full Article: Source

Raid Future Fund ‘at your peril’

Posted on 15 February 2016 by VRS  |  Email |Print

Current turbulent world markets are a reminder that governments should have some financial “insulation” such as sovereign wealth funds for when times are tough, says Future Fund chairman Peter Costello.
The comments come as the former federal treasurer steps up calls for future governments not to raid the $120 billion fund when the cashflow becomes available from 2020. The government has access to the assets of the fund from July 2020 to pay out the superannuation liabilities of public servants, which could come to about $9bn a year………………………………………..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

India open to UAE chairing infra fund

Posted on 11 February 2016 by VRS  |  Email |Print

India is open to the United Arab Emirates (UAE) chairing the newly constituted National Investment and Infrastructure Fund (NIIF) that seeks to attract foreign capital to fund the country’s infrastructure development.
“We are open to the UAE being the CEO of NIIF… If the UAE invests in the fund and if they want to have a representative in the governance of the fund. that is permissible under our national investment fund rules,” a top official told BusinessLine on condition of anonymity………………………………………..Full Article: Source

Sovereign wealth funds playing a leading role

Posted on 10 February 2016 by VRS  |  Email |Print

The Omani fund has played an important role with the Oman investment arm, Oman Oil, taking equity in the energy sector and other industries to diversify our economy. A SWF is an entity or fund that is state owned and can be considered as a source of surplus cash received from energy receipts, balance of payments, governmental payments, fiscal surplus, foreign currency operations and proceeds of privatisation.
Our key focus today is the rise SWF from energy receipts and this holds true to energy resourced countries. Oil and gas has been instrumental in increasing the SWF purse and will be discussed later on. In terms of classification, SWF can be a stabilisation fund, saving / future generation fund, pension reserve fund and strategic development fund………………………………………..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

The World’s Biggest Wealth Fund Is Unhappy With Volkswagen’s Leadership

Posted on 08 February 2016 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund criticized Volkswagen AG’s ownership structure, saying it concentrates too much power with the Porsche-Piech family and puts minority shareholders at a disadvantage amid the carmaker’s emissions crisis.
“This cannot be a role model for Germany,” Yngve Slyngstad, chief executive officer of Norway’s sovereign wealth fund, said in an interview published Saturday with Frankfurter Allgemeine Sonntagszeitung. Through family holding company Porsche Automobil Holding SE, the Porsche-Piech clan controls 50.73 percent of Volkswagen’s voting shares, while only owning 31.5 percent of the company equity………………………………………..Full Article: Source

Norway’s oil fund urges US banks to split CEO-chairman role

Posted on 08 February 2016 by VRS  |  Email |Print

The world’s largest sovereign wealth fund has warned the biggest US banks that time is running out for them to end the highly contentious practice of combining the roles of chief executive and chairman.
Yngve Slyngstad, chief executive of Norway’s $810bn fund, said that while the battle to split the roles in many US companies could take a generation, it was “not in a sustainable position”. “There is a special consideration for banks given that history of 2008 which makes it untenable for companies not to separate the roles,” he added………………………………………..Full Article: Source

India wants to leverage NIIF equity to boost infrastructure

Posted on 04 February 2016 by VRS  |  Email |Print

How much can Rs 20,000 crore be leveraged to raise more equity? Through an appropriate yet conservative structure, say experts, about 10 times or roughly Rs 2 lakh crore. Sprinkle it a bit thin, and it could be multiplied to over Rs 4 lakh crore. That is the kind of multiplier structure that the Narendra Modi-led NDA government is plotting through the National Infrastructure Investment Fund (NIIF), to obtain the maximum bang out what it can spare from its budget resources, realising that India’s infrastructure development needs more equity or risk capital.
Announced in the budget for FY16 by finance minister Arun Jaitley, the NIIF has been in the works for a while.”We have been working on this for almost a year now. As part of that exercise, we have spoken to all the global experts of all the major consulting companies, all the major investment banks,” said minister of state for finance Jayant Sinha………………………………………..Full Article: Source

Sovereign wealth funds drive turbulent trading

Posted on 02 February 2016 by VRS  |  Email |Print

Asset managers have blamed outflows from sovereign wealth funds for one of the worst starts to the year for markets. The collapse in the price of oil resulted in state-backed investment vehicles becoming “forced sellers”. The year began with a sharp drop in equity markets. UK and US stocks fell almost 10 per cent in the first few weeks of 2016 and emerging markets were hit even harder.
Philippe Ferreira, a director at Lyxor Asset Management, the €116bn fund house, said sovereign wealth funds have been driving the turbulent trading conditions. “We know the sovereign wealth funds are under pressure to sell and that is contributing to the market pressure we are seeing,” he said. “Sovereign wealth funds have become forced sellers,” added Guy Monson, chief investment officer of Sarasin & Partners, a UK boutique investment manager………………………………………..Full Article: Source

Kazakh large fund’s new staff approved

Posted on 01 February 2016 by VRS  |  Email |Print

The new staff of the board of the Kazakh Sovereign Wealth Fund Samruk-Kazyna joint-stock company has been approved, the Samruk-Kazyna Corporate Communications Department said Jan. 29. Umirzak Shukeyev retained his post of the chairman of the board. Kaur Baljeet was appointed managing director of strategy and portfolio management.
Previously, she held the position of Senior Advisor of the Development Program of the National Fund of the Asian Development Bank (ADB), Managing Director and Vice-Chairperson of the Kuwait Investment Authority & Kuwait Finance House, Vice President at ABN AMRO Bank, Maybank Malaysia and Deutsche Bank in various years………………………………………..Full Article: Source

GCC Economic Council for managing sovereign funds

Posted on 01 February 2016 by VRS  |  Email |Print

Many questions have been raised about the proper way to overcome the current economic crisis caused by the oil price decline in the global market. Each country in the GCC is presenting a solution that appears suitable, amid the absence of a unified strategy to help the organization as a whole, not only to surpass the current period but also to ensure not to get trapped in it in the future.
The GCC countries are known to own vast wealth in the form of sovereign funds — estimated at 45 percent of the total sovereign fund in the world, with a capital of about $2 trillion. Each of these countries works individually, so it is easy to entice one side and blackmail the other. This has been the practice for decades………………………………………..Full Article: Source

Norway accepts hostile takeover by Vonovia

Posted on 29 January 2016 by VRS  |  Email |Print

Norway said its $800billion sovereign wealth fund has accepted Vonovia’s hostile takeover bid for rival Deutsche Wohen. The fund holds 4.6% of the shares in Vonovia and 6.9% in Deutsche Wohen.
A spokeswoman for the Sovereign Fund said it thought the move was in “the best interest” of the shareholders. She said: “The rationale behind this is that we see advantages of scale, as well as cost benefits.”……………………………………….Full Article: Source

Govt does not monitor Temasek, GIC’s investments in haze-linked firms: MOF

Posted on 29 January 2016 by VRS  |  Email |Print

Mr Heng Swee Keat, Singapore’s Finance Minister, says that commercial decisions by GIC and Temasek Holdings are made independent of state involvement. The Government only monitors the performance of haze-linked companies that sovereign wealth fund GIC and investment firm Temasek Holdings have investments in, said finance minister Heng Swee Keat, and not their commercial decisions.
Nonetheless, both are fully supportive of zero-burning policies for land clearance, he said. “GIC has also the Government that the palm oil companies in Indonesia that GIC invests in have confirmed that they observe zero-burning policies for their plantations………………………………………..Full Article: Source

Sainsbury’s likely to find support from Qatar Investment Authority for Home Retail Group bid

Posted on 29 January 2016 by VRS  |  Email |Print

Qatar Investment Authority (QIA), which holds a 25% stake in Sainsbury’s, is believed to have backed the supermarket chain it revises its offer for the Home Retail Group acquisition. This backing from QIA seen as significant is important as the takeover process has to complete before 2 February, reported The Times newspaper.
Investors of Home Retail have expressed dissatisfaction as the board did not counsel them when the offer was first made by Sainsbury’s in November, reported. Toscafund and Schroders, among the primary five investors in Home Retail, are believed to have brought both the sides for a new deal………………………………………..Full Article: Source

Oxford, Abu Dhabi Investment Authority face off on EB-5

Posted on 28 January 2016 by VRS  |  Email |Print

Two of the largest foreign investors in New York City real estate are at odds over the value of EB-5 investment, a funding vehicle popular among developers that provides foreign investors a path to U.S. citizenship. Tom Arnold, head of real estate in the Americas for the Abu Dhabi Investment Authority, warned against falling into “quick assumptions” about the program’s benefits, calling it a “cheap ticket” to American citizenship.
“This EB-5 thing is really controversial,” Arnold, whose employer has invested more than $2 billion in Manhattan real estate according to Real Capital Analytics, said at a Wednesday conference hosted by the ULI New York. “It’s up there with abortion and global warming.”……………………………………….Full Article: Source

Qube seeks passive CIC role

Posted on 27 January 2016 by VRS  |  Email |Print

Chris Corrigan’s Qube Holdings has sought assurances from its partner Global Infrastructure Partners that Chinese sovereign wealth fund China Investment Corporation will play only a passive role in their joint bid for Asciano in the wake of the backlash against a Chinese company’s lease of the Port of Darwin.
As it emerged yesterday that CIC held a small stake in Asciano as part of its global infrastructure portfolio, well below the 5 per cent threshold requiring a substantial shareholding notice, it is understood Qube has taken active steps to ensure the involvement of CIC will not further stoke concerns about Chinese investment in key Australian infrastructure assets………………………………………..Full Article: Source

South Korea’s new SWF chief sets sights on ‘top ten’

Posted on 26 January 2016 by VRS  |  Email |Print

Former World Bank executive director takes office as CEO of the Korea Investment Corporation; sets out desire to grow assets under management beyond $200 billion The new chief executive officer of the Korea Investment Corporation has set his sights on making the sovereign wealth fund (SWF) one of the “top 10″ in the world, since taking office last week.
Sung-Soo Eun, formerly an executive director at the World Bank, joined the fund, which oversees around $85 billion in assets………………………………………..Full Article: Source

Temasek brings in top European advisers

Posted on 21 January 2016 by VRS  |  Email |Print

Temasek, the Singaporean state investment company, has established a panel of European corporate luminaries to advise it on dealmaking in the region. Ian Davis, chairman of Rolls-Royce, and the chairmen of Diageo and Italian insurer Generali are among members of the European advisory panel, which first met in London on Tuesday, writes Joseph Cotterill, private equity correspondent.
Temasek said the panel – and versions in other regions which will follow – would help it “on issues relevant to Temasek’s activities across Europe, and to facilitate closer collaboration with key business stakeholders.”……………………………………….Full Article: Source

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