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At SWFs, 2015 Is Shaping Up to Be A High Turnover Year for Management

Posted on 27 March 2015 by VRS  |  Email |Print

It’s been a busy year for sovereign wealth fund executives. We’ve seen a shake-up at the top of the China Investment Corp.(CIC), the launch of an entirely new fund in Mexico, and new hires at Australia’s Future Fund and Khazanah Nasional, among others. And a momentous change of leadership at Alberta Investment Management Corp. Here’s a roundup of all the moves from the first quarter 2015.
On February 25, the People’s Bank of China (PBoC), the country’s central bank, appointed Fan Yifei, CIC’s executive vice president, deputy chief operating officer and executive committee member, as its new vice chairman; he will now divide his time between the two institutions, an unusual arrangement whose implications China experts are still trying to decipher………………………………………..Full Article: Source

Social security fund reports 139 bln yuan investment yields

Posted on 25 March 2015 by VRS  |  Email |Print

China’s social security fund gained 139 billion yuan (22.7 billion U.S. dollars) from investment in 2014, with an 11.4 percent return on investment, the National Council for Social Security Fund said on Tuesday. The rate of return outperformed the 6.2-percent return rate in 2013.
Founded in 2000, the fund is designed to solve the country’s aging problem as well as being a strategic reserve to support future social security expenditure. By the end of last year, the fund’s managed assets totaled over 1.5 trillion yuan………………………………………..Full Article: Source

Norway’s Government Pension Fund is on top of the world

Posted on 24 March 2015 by VRS  |  Email |Print

A glance at the largest sovereign wealth fund – Norway’s Government Pension Fund Global. GPF assets have grown an annualized 20.3% in the 10 years ended Dec. 31. The fund increased its real estate allocation to 2.2% of assets in 2014 and officials say they “will continue to expand the portfolio in the years ahead.”
In its annual report, management noted strong equity returns in recent years cannot be expected to continue. That, combined with low interest rates globally “will make it a challenge for the fund to deliver similarly high returns going forward.”……………………………………….Full Article: Source

Orji: SWF Has ‘Good Year’ Tapping Dollar Investments

Posted on 19 March 2015 by VRS  |  Email |Print

Nigeria’s $1.55 billion sovereign wealth fund (SWF) had a “good year” after weighting its investments toward dollar assets, according to Chief Executive Officer, Mr. Uche Orji. “Our currency position was great as we were very long the dollar,” Bloomberg quoted Orji, a former Goldman Sachs Incorporated banker and head of the Nigerian Sovereign Investment Authority to have said in an interview in Geneva.
The Abuja-based wealth fund, set up by Nigerian President Goodluck Jonathan in 2011, gained exposure to the dollar through equities, private equity and fixed-income assets, said Harvard-trained Orji. The fund, which invests revenue generated when the OIL PRICE exceeds that budgeted by the government of Africa’s biggest crude producer, has adjusted to the market slump since June, he added………………………………………..Full Article: Source

Nigeria’s $1.55 bn SWF Has ‘Good Year’ Tapping Into Dollar Investments

Posted on 18 March 2015 by VRS  |  Email |Print

Nigeria’s $1.55 billion sovereign wealth fund had a “good year” after weighting its investments toward dollar assets, according to Chief Executive Officer Uche Orji. “Our currency position was great as we were very long the dollar,” Orji, a former Goldman Sachs Group Inc. banker and head of the Nigerian Sovereign Investment Authority, said in an interview in Geneva on Monday. “It was the only game in town.”
The Abuja-based wealth fund, set up by Nigerian President Goodluck Jonathan in 2011, gained exposure to the dollar through equities, private equity and fixed-income assets, said Harvard-trained Orji. The fund, which invests revenue generated when the oil price exceeds that budgeted by the government of Africa’s biggest crude producer, has adjusted to the market slump since June, he said………………………………………..Full Article: Source

Oil fund makes every Norwegian paper millionaires

Posted on 18 March 2015 by VRS  |  Email |Print

The Government Pension Fund Global is now worth more than 7.000 billion kroner (€796 billion). If divided on the 5,2 million Norwegians, each one would have 1,35 million. That is five times the annual net income of a Swede. Despite the crash in oil price recently, the Norwegian sovereign fund returned 10,6 percent on the fund’s equity portfolio in 2014.
The fund’s market value passed NOK 7,000 billion last week and was Tuesday worth 7,140 billion. A live, second-by-second, online update is made available on Norges Bank’s portal for the investment management………………………………………..Full Article: Source

Gulf sovereign wealth funds punching above their weight

Posted on 17 March 2015 by VRS  |  Email |Print

According to the Sovereign Wealth Fund (SWF) Institute, GCC-based SWFs have a total of $2.6 trillion (Dh9.54 trillion) in assets — about 37 per cent of total SWF assets worldwide. Close to 80 per cent of SWF assets in GCC states are accounted for by three major players — the Abu Dhabi Investment Authority with $773 billion, foreign holdings at the Saudi Arabia Monetary Authority (SAMA) at $757 billion and the Kuwait Investment Authority with $548 billion. By assets, Adia and Sama are the second and third largest SWFs globally.
The UAE has seven large SWFs in total: four in Abu Dhabi, one each in Dubai and Ras Al Khaimah, while the last is a federal fund. By number of funds, this is more than any other country in the GCC and globally, second only to the US which has several smaller-sized state-level SWFs………………………………………..Full Article: Source

Norwegian sovereign wealth fund achieves 7.6 pct return in 2014

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund returned 7.6 percent, or 544 billion Norwegian kroner (67 billion U.S. dollars), in 2014, with positive results for all its asset classes, but underperformed its benchmarks, the fund said on Friday.
Equity investments returned 7.9 percent, fixed-income investments 6.9 percent, and real estate investments 10.4 percent for the fund, formally known as the Government Pension Fund Global (GPFG) and ranked as the world’s biggest sovereign wealth fund, it said in a statement………………………………………..Full Article: Source

Norway’s sovereign fund doubles in three years

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the biggest in the world, has nearly doubled in three years, the central bank said Friday, which would make all 5.2 million Norwegians millionaires — at least on paper. The fund comprised of stock, bonds and property from around the world returned 7.6 percent in 2014, ending the year at 6.431 billion kroner (745.1 billion euros, $788 billion). At the end of 2011, the fund was worth 3.312 billion kroner.
The fund’s increase of 544 billion kroner from 2013 was attributed in particular to earnings in last year’s bullish stock markets as more than 60 percent of the fund’s portfolio is in stocks. To pay for future expenses Norway traditionally puts aside all of the huge revenue from its public oil company and is authorised to use only up to 4 percent to balance the country’s budget………………………………………..Full Article: Source

Norway’s $860 bln oil fund underperforms in 2014 on big Europe exposure

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund, the world’s biggest, underperformed its benchmarks in 2014 because of its big exposure to Europe and the relatively short duration of its fixed income portfolio, it said on Friday.
The fund, one of the world’s biggest investors, returned 7.9 percent last year but this was 0.8 percentage point below its benchmark with Europe’s poor growth and rising geopolitical tensions weighing on returns, the fund said. “This (weaker return) can be explained by a higher weight of European stocks and the shorter duration of the fund’s fixed income investments compared with the benchmark,” the fund said in a statement………………………………………..Full Article: Source

Everyone in Norway is a millionaire… on paper at least

Posted on 16 March 2015 by VRS  |  Email |Print

If you are dreaming of becoming a millionaire, getting the Norwegian nationality might be a good step. The Norwegian public pension fund, the largest sovereign fund in the world, posted last year a 7.6% yield, almost doubling its value in three years, announced Friday the Bank of Norway, which manages the fund.
Invested in stocks, bonds and real estate around the world, the fund weighed about $780 billion in late 2014, making each of the 5.2 million Norwegians a millionaire, at least on paper. In late 2011, the fund was worth about 350 billion dollars………………………………………..Full Article: Source

Russian Wealth Fund Falls Most Since 2010 as Deficit Widens

Posted on 04 March 2015 by VRS  |  Email |Print

Russia’s Reserve Fund dropped the most in more than four years last month as the government unsealed one of the country’s two sovereign wealth funds to cover a widening budget deficit.
The holdings shrank $8 billion to $77.1 billion, the lowest since December 2012, as the Finance Ministry used its maximum yearly allowance of 500 billion rubles ($8 billion) for budget financing, according to a Tuesday statement by the ministry in Moscow. The fund disposed of securities equal to $3.6 billion, 3.1 billion euros ($3.5 billion) and 510 million pounds ($769 million)……………………………………….Full Article: Source

Middle East and Africa private wealth set to hit $7.2t by 2018

Posted on 04 March 2015 by VRS  |  Email |Print

With private wealth in the Middle East and Africa projected to reach $7.2 trillion by 2018, Dubai International Financial Centre is well positioned with its laws and regulations modified specifically to help firms tap this opportunity and bring world-class wealth management competence into the region, Abdul Aziz Al Ghurair, vice-chairman of the Dubai International Financial Centre, or DIFC, said on Tuesday.
“The Middle East and North Africa is home to nine of the world’s largest sovereign wealth funds with assets of approximately $2 trillion. Other institutional wealth in the region includes GCC pension funds, whose assets are set to grow 8.8 per cent a year to reach $5 trillion by 2020.”………………………………………Full Article: Source

SOFAZ assets rose to $ 37.42 bln in 2014

Posted on 24 February 2015 by VRS  |  Email |Print

For current year estimated decline 3 billion in the wake value crude (Il Sole 24 Ore Thomson Financial) - Baku, Feb. 23 - Sofaz, the Sovereign Fund of Azerbaijan closes 2014 with assets worth a total of 37.42 billion dollars , up from 3.42 billion on an annual basis. During 2014, revenues primarily from royalties until amounted to 15.729 billion dollars.
The outputs in favor of the state budget were approximately 12.9 billion in addition to funding for other special initiatives: scholarships for deserving students abroad, support for refugees from the region of Nagorno Karabakh occupied by Armenia, financing Kars railway line Baku Tbilis connection with Turkey, the company ‘management of pipelines and refinery Tap and Tanap Star-Petkim in Turkey……………………………………….Full Article: Source

1MDB chief: PetroSaudi deal made RM1.78b in profits

Posted on 24 February 2015 by VRS  |  Email |Print

Troubled sovereign fund 1Malaysia Development Bhd (1MDB) claimed that a joint venture (JV) with a Saudi Arabian company six years ago, which critics claimed was shady, had earned it a profit of US$488 million (RM1.78 billion).
In a statement on the company’s website, 1MDB president Arul Kanda Kandasamy also claimed that the money it had invested in the JV had been converted into murabaha notes when the plan did not go through. Earlier reports claimed that 1MDB had put US$1 billion into the deal with PetroSaudi International Ltd, a company with an allegedly sketchy track record………………………………………..Full Article: Source

Show Proof Of 1MDB’s US$488m Profit Whereabouts, DAP Insists

Posted on 24 February 2015 by VRS  |  Email |Print

DAP’s National Publicity Secretary Tony Pua today demanded the country’s 1Malaysia Development Board (IMDB) president Arul Kanda Kandasamy show proof of the whereabouts of a purported US$488 million profit from its joint venture with PetroSaudi International.
“Arul Kanda Kandasamy proudly announced that the sovereign fund made the US$488 million of profit from the PetroSaudi transaction but what we have at hand is at least US$1.1 billion missing in unknown whereabouts. “The next question to ask is hence, where exactly is the US$488 million of paper profit Arul was talking about,” said Pua who is also MP for Petaling Jaya in a press conference at the DAP’s headquarters………………………………………..Full Article: Source

Russian Sovereign Wealth Funds: 2015 Drawdowns

Posted on 23 February 2015 by VRS  |  Email |Print

Back at the end of January, Russia’s sovereign wealth funds amounted to USD160 billion, with the government primarily taking a historically set approach (from 2003 onwards) of arms-length interactions with the funds’ management. This relative non-interference marked 2014 and is now set to be changed, with the government looking at using SWFs to provide some support for the investment that has been falling in the 2013-2014 period and is likely to fall even further this year.
Fixed investment in Russia fell 2.0% y/y in 2013, and by another 3.7% in 2014. Private investment is likely to fall by double digits in 2015, based on the cost of funding, lack of access to international funding and general recession in the economy. It is likely to stay in negative growth territory through 2016………………………………………..Full Article: Source

Mumtalakat given highest rating for transparency

Posted on 19 February 2015 by VRS  |  Email |Print

Bahrain Mumtalakat Holding Company (Mumtalakat), the investment arm of the Kingdom of Bahrain, was ranked among the world’s most transparent sovereign wealth funds as it was rated ten out of ten in the 2015 Linaburg-Maduell Transparency Index. The rankings represent an upgrade from the previous year’s score of 9/10, reflecting the ongoing commitment of Mumtalakat’s Board of Directors led by H.E. Shaikh Khaled bin Abdulla Al Khalifa, Deputy Prime Minister and Chairman of the Board and the company’s management team to transparency. Mumtalakat was one of only 11 funds in the world to be awarded full marks for transparency, out of a total of 52 funds surveyed.
The Linaburg-Maduell Transparency Index is one of the world’s most influential benchmarks in measuring sovereign wealth funds’ commitment to transparency. It was developed by Carl Linaburg and Michael Maduell in 2008 and is published quarterly by the Sovereign Wealth Fund Institute, outlining funds’ performance in ten key areas of transparency. (Press Release)

Permanent Fund gains 3.2 percent in most recent quarter

Posted on 19 February 2015 by VRS  |  Email |Print

The Alaska Permanent Fund returned 3.2 percent in the most recent quarter of fiscal 2015, bringing the year-to-date return to 1.9 percent.
The fund’s value is $52.8 billion as of Dec. 31, 2014, according to a news release. The statuatory net income — the amount used to calculate the annual Permanent Fund Dividend — was $597 million for the quarter………………………………………..Full Article: Source

Alaska Permanent gains 3.2% in quarter, surpassing benchmark by 110 basis points

Posted on 18 February 2015 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 3.2% for the quarter ended Dec. 31 and 1.9% fiscal-year-to-date, said a news release from the $52.8 billion sovereign wealth fund. The permanent fund’s strategic risk benchmark returned 2.1% and 0.5%, respectively, during the same periods. The permanent fund’s fiscal year ends June 30.
For the quarter, U.S. equity returned 5%; real estate, 4.6%; non-U.S. bonds, 2.8%; private equity, 2.2%; outsourced CIO allocations, 1.3%; U.S. bonds, 1.1%; global equity, 0.7%; infrastructure, 0.3%; absolute-return funds, 0.1%; private markets outsourced CIO allocations, -1.39%; non-U.S. equity, -3.7%; and multiasset emerging markets, -3.5 %………………………………………..Full Article: Source

Singapore’s Temasek Celebrates 40 Years of Development

Posted on 18 February 2015 by VRS  |  Email |Print

This year marks the 40th anniversary of Temasek, one of Singapore’s two sovereign wealth funds (SWFs), along with the Government Investment Corporation (GIC). Set up in 1974 as part of the newly independent city-state’s nation- building effort, Temasek has evolved from a sleepy holding company shepherding an initial portfolio of 35 inherited government-linked companies (GLCs) to a long-term, return-seeking investor with both wealth-management and development mandates.
Temasek is still a government holding company that acts as a shareholder on behalf of the Singaporean government. Today it pursues its developmental mandate by buying direct stakes mostly in Singaporean and Asian companies, and then reinvesting its proceeds from asset sales and dividend income into foreign assets, acting like a private equity fund………………………………………..Full Article: Source

Return on assets of the Oil Fund of Azerbaijan fell to 1.43%

Posted on 12 February 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan Republic (SOFAZ) reports about drop in return on assets in 2014. According to SOFAZ, by the end of the last year return on assets fell to 1.47% (to 1.43% taking into account gold) against 1.77% in 2013 and 2.16% in 2012. Return on assets reached its peak in 2007 (4.49%), and over the last 10 year it was estimated at the average level of 2.56%.
Last year investments into bonds brought 0.7% of return, investments into shares – 0.3%, investments into deposits – 0.18%, using money market instruments – 0.01%, investments into real estate – 0.24%. Investments into gold were unprofitable (-0.05%)………………………………………..Full Article: Source

The State Oil Fund of Azerbaijan announced growth of its assets by 3.42% in 2014 in spite of AZN 1.612 bn loss

Posted on 10 February 2015 by VRS  |  Email |Print

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) announced growth of its assets by 3.42% in 2014. According to the Fund, last year SOFAZ assets grew from $35.877 bn up to $37.104 bn. Budget revenues of SOFAZ for 2014 reached AZN 12.731 bn, while budget expenditures constituted AZN 10.117 bn. In other words, SOFAZ budget was executed with surplus of AZN 2.613 bn.
According to the Fund, revenue of AZN 12.343 bn was received from implementation of oil and gas agreements, including AZN 12.319 bn from the sale of profit oil and gas, AZN 1.7 million as acreage fees, AZN 8.9 million as transit payments, AZN 13.3 million as bonus payments and AZN 0.1 million from the sale of assets received from foreign companies. The revenues from managing assets of the Fund for 2014 amounted to AZN 387.2 million………………………………………..Full Article: Source

SOFAZ assets jump

Posted on 10 February 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ which is in charge of accumulating and managing the country’s oil and gas revenues, announced about the increase in its assets. The fund reported that its assets increased by 3.42 percent as of January 1, 2015, compared to $35.877 billion in early 2014 and exceeded $37.104.
SOFAZ revenues totaled 12.731 million manats while budget expenditures constituted 10.117, 2 billion manats. Revenue of 12.343, 8 billion manats was received from the implementation of oil and gas agreements, including 12.319, 8 billion manats from the sale of profit oil and gas, 8.9 million manats as transit payments, 13.3 million manats as bonus payments………………………………………..Full Article: Source

Australia’s Future Fund surges; aims to reduce risk

Posted on 06 February 2015 by VRS  |  Email |Print

Australian sovereign wealth fund, the Future Fund, said a dramatic fall in the local currency helped it return 13 percent in calendar 2014, as it moves to de-risk its portfolio to offset volatile commodity and equity markets. The fund set up in 2006 to cover public servant pensions, grew by nearly A$13 billion ($10 billion) to A$109 billion by Dec. 31, partly by boosting cash to 12.8 percent of its portfolio from 9 percent a year earlier.
The fund reduced its investments in equities over the year due to increased market volatility, said managing director David Neal. Developed global equities were cut to 20.9 percent of the portfolio from 24.5 percent a year earlier, and Australian equities to 8.8 percent from 10.1 percent………………………………………..Full Article: Source

Future Fund assets swell to $109 billion

Posted on 06 February 2015 by VRS  |  Email |Print

Australia’s Future Fund assets have swelled to $109 billion after investments in private equity and infrastructure and a shift into US dollars, and away from the Australian dollar, helped it generate a 13.2 per cent return in 2014. But as interest rates fall and central banks hit their limits the fund’s investment team is warning of lower returns and rising economic and investment risks as it moved more than $5 billion of assets into cash.
Stephen Gilmore, the head of risk and investment strategy warned that the investment environment was becoming more challenging as risks are rising when falling interest rates are reducing returns……………………………………….Full Article: Source

China’s NSSF returns 11.43%

Posted on 03 February 2015 by VRS  |  Email |Print

The National Social Security Fund (NSSF), China’s supplementary pension fund, realised a return of 11.43% on investment in 2014, boosting its total AUM to more than 1.5 trillion RMB (US$240 billion), according to a report from Securities Daily. This beat the returns of 6.2% and 7% achieved in 2013 and 2012, respectively. China’s CPI inflation rate lingered somewhere between 1.4% and 2.5% in 2014.
“The NSSF has displayed an inflation-beating [average] return of 8.5% per annum since its inception in 2000. Over the previous seven to eight years, our equities investments have not only managed to deliver better than market performance, but they also outperformed the fund’s fixed income return,” Wang Zhongmin, the fund’s vice chairman, said during a conference in Beijing………………………………………..Full Article: Source

Sharp rise for Uganda NSSF profit

Posted on 02 February 2015 by VRS  |  Email |Print

The National Social Security Fund (NSSF) has recorded a 23% increase in operating profit for half year ending December 31, 2014 when compared to the same period in the last fiscal year.
The Fund reports better returns on its investments and better cost management. Profit before interest for the six months increased to Ushs202 billion up from Ushs156 billion during the same period last Financial Year. Over the same period, NSSF’s total assets grew from Ushs3.9 trillion to Ushs4.9 trillion………………………………………..Full Article: Source

NZ Super Fund returns 13.89pct in 2014

Posted on 29 January 2015 by VRS  |  Email |Print

The New Zealand Superannuation Fund returned 13.89 percent during 2014, ending the year worth $27.54 billion, but it’s warning of lower returns in the future. The sovereign wealth fund was set up to help fund universal superannuation for future generations but the Government suspended annual capital contributions in July 2009 in order to pay down debt.
The Guardians of the Fund calculate that if government contributions had continued as set out in the legislation the fund would now be worth $43.4b. As at December 31, 2014, capital contributions not made totalled around $11.68b. They are forecast to re-start in 2020/21………………………………………..Full Article: Source

SOFAZ names revenues from Shah Deniz, ACG projects

Posted on 20 January 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has earned $2.12 billion since 2007 by implementing the project of the giant Shah Deniz oil and gas condensate field in the Azerbaijani sector of the Caspian Sea. “SOFAZ received $523 million within the Shah Deniz project in 2014,” the fund told Trend Agency on January 16.
SOFAZ also said it gained $110.15 billion from 2001 to January 1, 2015 by developing the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea. “SOFAZ received $15.118 billion worth of revenues within the ACG project in 2014,” the fund added………………………………………..Full Article: Source

Nigeria: Excess Crude Account Reduced to $2.45bn

Posted on 19 January 2015 by VRS  |  Email |Print

The Minister of State for Finance, Bashir Yuguda, speaking at the end of the Federation Accounts Allocation Committee, FAAC, in Abuja on Friday announced that the balance in the excess crude account for December 2014 stood at about $2.45 billion.
According to Premium Times, transfer to the account as a result of foreign exchange gain dropped from N1.767 billion to about N665 million. The Accountant General of the Federation, AGF, Jonah Otunla, said in a statement at the end of the meeting that the balance in the account dropped from about $3.11 billion to $2.45 billion in December………………………………………..Full Article: Source

Malaysia’s state investor Khazanah’s portfolio rises to $40.5 bln

Posted on 15 January 2015 by VRS  |  Email |Print

Malaysian state investor Khazanah Nasional said a 7.7 percent rise in its asset value in 2014 leaves it in good shape for what it expects to be a challenging year, as the country faces pressure from a weakening currency and falling oil prices.
The sovereign wealth fund said on Wednesday the value of its portfolio rose to 145.6 billion Malaysian ringgit ($40.5 billion) in 2014, up from 135.1 billion in 2013………………………………………..Full Article: Source

Khazanah reaps $1bn from Alibaba investment

Posted on 15 January 2015 by VRS  |  Email |Print

Khazanah, Malaysia’s sovereign wealth fund, reaped more than $1bn from investing in Alibaba ahead of the Chinese e-commerce group’s stock market flotation last year, in a sign of how big Asian investors have cashed in on what remains the world’s biggest initial public offering to date.
The disclosure, made by Khazanah as it reported its financial performance for 2014, came as the fund said it would be ramping up investments in the US tech sector, after opening an office in San Francisco in 2013………………………………………..Full Article: Source

Russia’s Reserve Fund Grew by 72.9%, National Welfare Fund by 51.3% in 2014

Posted on 14 January 2015 by VRS  |  Email |Print

Russia’s Reserve Fund grew by 72.9 percent to top 4.94 trillion rubles year-on-year, while the National Welfare Fund increased by 51.3 percent to 4.388 trillion rubles in 2014, the Finance Ministry said on Tuesday. “As of January 1, 2015, the amount of the Reserve Fund totaled 4 trillion, 945 billion and 490 million rubles which equals $87.91 billion,” the ministry said in a report.
“The amount of the National Welfare Fund totaled 4 trillion, 388 billion and 90 million rubles which equals $78 billion,” the report said. At the beginning of 2014, the Reserve Fund totaled 2.86 trillion rubles and the National Welfare Fund totaled 2.9 trillion rubles………………………………………..Full Article: Source

Assets of the State Oil Fund of Azerbaijan (SOFAZ) estimated at the level of $37 bn

Posted on 02 January 2015 by VRS  |  Email |Print

According to SOFAZ, over 15 years SOFAZ has become an internationally recognized organization. Establishment of SOFAZ is a successful result of the national oil strategy laid by National leader Heydar Aliyev. As a part of the National Oil Strategy, the State Oil Fund was established by the Decree of Heydar Aliyev in 1999, with the aim of efficient management of the accumulated oil and gas revenues, and assignment of these assets to the development of advanced areas and implementation projects of social-economic importance.
Since its establishment, the State Oil Fund has carried out significant measures to achieve the defined goals, which were successfully implemented. The volume of SOFAZ assets amounted to USD 270 mln. at the time of establishment and it has exceeded USD 37 bln. as of December 29, 2014………………………………………..Full Article: Source

Azerbaijani State Oil Fund announces volume of revenues from Shah Deniz project

Posted on 22 December 2014 by VRS  |  Email |Print

As of December 1, 2014, the revenues of the State Oil Fund of Azerbaijan from the implementation of the Shah Deniz oil and gas condensate field project in the Azerbaijani sector of the Caspian Sea amounted to about $2.088 billion since 2007, the SOFAZ told Trend.
Shah Deniz’s reserves are estimated at 1.2 trillion cubic meters of gas. A contract was signed on June 4, 1996 to develop the Shah Deniz offshore field. SOFAZ received $491 million within the Shah Deniz project from January 1 to December 1, 2014, SOFAZ reported………………………………………..Full Article: Source

Norway’s Oil Decline Accelerating

Posted on 15 December 2014 by VRS  |  Email |Print

Since 1990, Norway has diverted much of its oil earnings to a sovereign wealth fund, which has become the world’s largest. The money, reaching $890 billion as of June 2014, amounts to $178,000 for every Norwegian citizen. The sovereign wealth fund helps Norway avoid some of the problems associated with the “resource curse” by investing capital abroad.
But more importantly, the money is set aside to be saved and invested to help the country plan for the eventual decline of oil production, with the intention of transitioning to a more diversified economy that can take oil’s place………………………………………..Full Article: Source

Kazakhstan’s Kazkommertsbank’s profit falls after BTA buy

Posted on 11 December 2014 by VRS  |  Email |Print

Kazkommertsbank (KKB), Kazakhstan’s largest lender by assets, reported a 10.7 percent fall in nine-month net income after its purchase of a stake in bailed-out BTA Bank left it with more bad loans on its books.
KKB bought a 46.5 percent stake in BTA from the sovereign wealth fund Samruk-Kazyna in the second quarter. Kazakh businessman Kenes Rakishev bought another 46.5 percent stake in BTA from the fund. Samruk-Kazyna had bailed out BTA, the country’s third largest lender, in the global financial crisis………………………………………..Full Article: Source

Share of Iran’s NDF from oil revenues to decrease by 11%

Posted on 08 December 2014 by VRS  |  Email |Print

Share of Iran’s National Development Fund (NDF) from the country’s oil revenues has been decreased by 11 percent in next year’s(to start on March 21, 2015) budget bill which was submitted to parliament on Dec. 7. Iran will transfer 20 percent of oil and gas revenues to the fund in next fiscal year, according to the budget bill, the country’s Fars news agency reported.
The Islamic Republic allocated 31 percent of oil and gas incomes to the fund in current fiscal year budget.The government has offered that to not implement the annual 3 percent share increase of the NDF from oil incomes in next year which was predicted in the Fifth Five-year Socio Economic Development Plan (2011-2015)………………………………………..Full Article: Source

Alaska Permanent Fund posts -1.2% return for quarter

Posted on 21 November 2014 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned -1.2% for the quarter ended Sept. 30, slightly above its benchmark return of -1.6%, said a news release from the $50.7 billion sovereign wealth fund.
The top performer was private equity, which returned 5.4%; followed by infrastructure, 3.8%; non-U.S. bonds, 1.8%; real estate, 0.2%; absolute return, 0.1%; U.S. bonds, -0.2%; U.S. equity and outsourced CIO allocations, -0.9% each; private markets outsourced CIO allocations, -2.1%, global equity, -2.8%; multiasset emerging markets, -4.2%; international equity, -5.4%; and “true special opportunities,” -5.5%………………………………….Full Article: Source

Norway Wealth Fund Outsmarts Flash Boys as Algorithms Abandoned

Posted on 17 November 2014 by VRS  |  Email |Print

Oeyvind Schanke, head of asset strategies at Norway’s $860 billion sovereign wealth fund, has worked out how to dodge traders in the U.S. trying to profit on his orders by leaving no pattern for them to track.
Investors who want to pre-empt trades by the world’s biggest sovereign-wealth fund and act on that information to make a profit — a practice known as front running — won’t have much success, he said………………………………….Full Article: Source

National Pensions Reserve Fund a winner in transparency index ratings

Posted on 17 November 2014 by VRS  |  Email |Print

In case you missed it, this week saw the release of the long-awaited third-quarter Linaburg-Maduell Transparency Index Ratings, aka the Oscars of the sovereign wealth universe. The main “takeaway” from the publication is that we, the State, did well and everybody likes it when we do well in internationally graded tests. In fact, we got a clean 10 out of 10.
The prize-winner in this instance was the National Pensions Reserve Fund, the erstwhile guardian of our future pensions before it was raided under the bailout. These days, the fund is all about strategic investments that might improve the domestic economy and make a profit at the same time. It’s an unusual approach for a sovereign fund – one that has been described by the structure itself as a quest for a “double bottom line”. The jury is still out on the merits of same, but that’s an argument for another day………………………………….Full Article: Source

Sovereign Wealth Funds Poised to Reach $7 Trillion by 2015

Posted on 11 November 2014 by VRS  |  Email |Print

As of November 2014, sovereign wealth fund assets totaled US$ 6.977 trillion compared to US$ 6.106 trillion in December 2013. This nearly US$ 900 million increase can be attributed by improvements in investment returns and capital flows into sovereign wealth fund vehicles.
In December 2007, sovereign wealth fund assets amounted to US$ 3.259 trillion. This unprecedented growth in public assets is having tremendous influence toward policymaking, economic stability, investment banking and asset management………………………………………..Full Article: Source

1MDB bled RM665m in a year

Posted on 07 November 2014 by VRS  |  Email |Print

Sovereign wealth fund 1Malaysia Development Bhd (1MBD) booked a net loss of RM665.36 million in its previous financial year, a local daily reported today citing a filing with the Companies Commission of Malaysia (CCM).
According to a report by The Star, 1MDB’s filing showed a loss before tax of RM668.55 million against reported revenues of RM4.258 billion.The filing was made after the sovereign wealth fund closed its books yesterday, some seven months after the end of its financial year in March 31, 2014………………………………………..Full Article: Source

Saudi Arabia’s sovereign wealth fund sees 9 percent asset growth since January

Posted on 06 November 2014 by VRS  |  Email |Print

Total assets of Saudi Arabia’s main sovereign wealth fund, SAMA Foreign Holdings (SAMA), have jumped 9 percent since January, allowing it to maintain its position as the world’s third-largest, according to a report by the Sovereign Wealth Fund Institute (SWFI).
In its most recent ranking of global sovereign wealth funds, the Washington-based SWFI said SAMA’s total assets had risen to 737.6 billion US dollars in October, up 9 percent from 675.9 billion dollars in January. However, Dr. Ali Al-Tuwati, an economics professor at the King Abdulaziz University in Jeddah, told Asharq Al-Awsat that SAMA’s position in the rankings would likely fall next year if global oil prices did not stabilize………………………………………..Full Article: Source

Fitch Rates Bahrain Mumtalakat Holding Company’s Trust Certificate Issuance & EMTN Programmes

Posted on 31 October 2014 by VRS  |  Email |Print

Fitch Ratings has assigned Bahrain Mumtalakat Holding Company ’s (BBB/Stable) upcoming trust certificate programme (Sukuk) and euro medium term note programme (EMTN) a ‘BBB(EXP)’ expected rating. The rating is in line with Mumtalakat ’s Long-term Issuer Default Rating (IDR) and senior unsecured rating.
The final rating is contingent upon the receipt of final documentation conforming materially to information already received and details regarding the Sukuk and bond programme amount. Fitch understands that the proceeds will predominantly be used to refinance upcoming maturities, in particular those in 2015 (BHD283m). Moreover, Fitch understands that there is no material secured debt within the group other than at Gulf Air (BHD97m)………………………………………..Full Article: Source

Norway’s Oil Fund Posts Flat Returns in 3Q–Update

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s oil fund, the world’s biggest sovereign wealth fund, reported a 0.1% profit on its investments in the third quarter, as a loss on its equity investments was offset by a fixed-income gain, and said geopolitical uncertainty was hurting European stocks while U.S. stocks gained.
Norges Bank Investment Management, the arm of the central bank that manages the fund, said Wednesday that earnings on its investments totaled 15 billion Norwegian kroner ($2.27 billion). The total value of the fund on September 30 was NOK5.534 trillion. Equity investments lost 0.5% in the third quarter, while fixed-income investments gained 0.9%, NBIM said. U.S. shares contributed positively, while European shares contributed negatively, NBIM said………………………………………..Full Article: Source

Tesco woes drag down Norway’s $860 bln wealth fund in third quarter

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s $860-billion sovereign wealth fund, the world’s largest, booked a flat return in the third quarter as it was dragged down by weak European stocks, foremost among them embattled retailer Tesco. The fund, one of the world’s biggest investors, is the top shareholder in the British supermarket group, which has lost 53 percent of its market value over the past year after an accounting scandal and a number of profit warnings.
“It is clear that our investment in the British company Tesco has performed particularly poorly in the course of the year,” Chief Executive Yngve Slyngstad told a news conference to present the fund’s third-quarter results………………………………………..Full Article: Source

IMF expects 14% fall of SOFAZ assets

Posted on 30 October 2014 by VRS  |  Email |Print

IMF expects 14.4% fall in assets of the State Oil Fund of Azerbaijan. According to the official report made by the IMF mission as a result of its visit to Baku, the State Oil Fund of Azerbaijan (SOFAZ) will close the year of 2014 with the assets at the level of $38.309 bn but already in 2015 they will fall to $32.802 bn.
Nevertheless, the Fund believes that the gross official international reserves of the government will grow. In 2014 they are expected to be at the level of $15.787 bn and in 2015 – at the level of $17.787 bn………………………………………..Full Article: Source

Stronger Board, More Effective Government Interaction to Mark Samruk Kazyna Transformation

Posted on 30 October 2014 by VRS  |  Email |Print

Kazakhstan’s Samruk Kazyna Sovereign Wealth Fund will redistribute responsibilities within the fund and change its portfolio structure and approach to investment as part of its recently announced transformation, Chairman of the Board of Samruk Kazyna Umirzak Shukeyev recently told The Astana Times in an exclusive interview. This will require internal changes, including training and incorporating foreign expertise, as well as legislative changes in Kazakhstan.
Samruk Kazyna officially unveiled its transformation programme, which is intended to help modernise Kazakhstan’s economy and bring an additional $11 billion to the country’s gross domestic product by 2020, on Oct. 6………………………………………..Full Article: Source

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