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Sovereign Wealth Funds Briefing - Category | Performance more

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

Top sovereign funds fail on governance

Posted on 29 October 2014 by VRS  |  Email |Print

A majority of the world’s largest sovereign wealth funds lack transparency and adequate governance, with those in the Gulf region scoring particularly low, according to a report published by political risk group GeoEconomica. eneva-based GeoEc-onomica, an independent political-risk research firm, assessed 31 sovereign wealth funds with a total of $4 trillion worth of assets for their compliance with the Santiago Principles, a voluntary code of practice on governance and transparency.
“Numerous funds, most notably from the Gulf region, still need to substantially advance their financial disclosure policies and become more transparent about governance arrangements,” GeoEconomica said in its Santiago Compliance Index, which it has published annually for the past three years………………………………………..Full Article: Source

How Excess Crude Account Was Depleted From $9bn To $2bn – Okonjo-Iweala

Posted on 29 October 2014 by VRS  |  Email |Print

The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Monday disclosed how insistence by the states to share the money in the Excess Crude Account (ECA) resulted in the depletion of the account from $9 billion to $2 billion last year.
Okonjo-Iweala, who made this disclosure while defending the 2015-2017 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Policy (FSP) before the Joint Senate Committee on Finance and National Planning, said for the economy to remain stable, the ECA which she said later rose from $2 billion to $4.1 billion needs to be further raised and stabilised at $5 billion………………………………………..Full Article: Source

QIA assets rise to $450bn

Posted on 24 October 2014 by VRS  |  Email |Print

The size of Qatar Investment Authority ’s ( QIA ) assets has touched $450bn. The QIA has invested its fund in a wide range of sectors including banks, real estate, tourism, agriculture; both inside and outside Qatar, Al Sharq reported. The major focus of QIA ’s foreign investments is on West European countries like the UK, France and Germany.
The combined asset in these countries stands at an estimated $80bn. UK alone attracts $35bn. QIA has invested an estimated amount of $25bn in France, while in Germany’s industrial sector attracted $20bn. Total investments in the US stands at $11bn, the daily reported………………………………………..Full Article: Source

Korea Investment Corp. Learns Hard Lesson

Posted on 23 October 2014 by VRS  |  Email |Print

Korea Investment Corp. , South Korea’s $72 billion sovereign-wealth fund, found out the hard way that cutting out the middleman isn’t always easy. The fund began doing deals on its own, or “direct investing,” in the late 2000s, a shift from its practice of using private-equity firms to handle the deal making.
Direct investing allows sovereign-wealth funds to avoid paying fees to private-equity firms, which typically charge 2% on assets and take 20% of any profit, and an increasing number of funds and other big investors have been doing it. Hongchul Ahn, chairman and chief executive of KIC, said in an email last week that the fund will change its approach to direct investing after “disappointingly lower returns.”……………………………………….Full Article: Source

SOFAZ budget revenues exceed 10 bln manats

Posted on 22 October 2014 by VRS  |  Email |Print

The budget revenues of Azerbaijan’s state oil fund SOFAZ reached 10.131 billion manats in the third quarter of 2014. This comes as the fund’s budget expenditures constituted 8.041 billion manats during the same period of time.
“Some 9.969 billion manats was gained from the implementation of oil and gas agreements, including 9.947 billion manats from the sale of profit oil and gas, 6.8 million manats from transit payments, and 13.3 million manats from bonus payments. Revenues from payments per acre in the first half of 2014 amounted to 1.7 million manats,” SOFAZ said on October 20………………………………………..Full Article: Source

Oil Fund’s assets for Jan-Sept exceed $37.305 bn

Posted on 21 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) increased its assets by 3.98% for Jan-Sept 2014. According to SOFAZ, over the past 9 months of the year Oil Fund’s assets grew from $35.877 bn in early 2014 up to $37.305 bn. “During the first 9 months of 2014 Oil Fund’s revenues totaled AZN 10.1 bn and expenditures AZN 8.04 bn,” SOFAZ said in a statement.
As a result, the SOFAZ budget was implemented with surplus of AZN 2.09 bn. “Our revenues consist mainly from oil and gas PSA contracts in the amount of AZN 9.969 bn, including AZN 9.947 bn from profit oil and gas,” the Fund said………………………………………..Full Article: Source

SOFAZ revenues more than $2 bn from “Shah Deniz”

Posted on 20 October 2014 by VRS  |  Email |Print

The reserves are estimated at 1.2 trl of cubic meters of gas. As of October 1, 2014, since 2007 the revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project of gas condensate field “Shah Deniz” in the Azerbaijani sector of the Caspian Sea amounted to $2,006 m.
Oxu.Az reports citing Day.az that the information was provided by the State Oil Fund. According to the fund, from January to October 1, 2014 the State Oil Fund in the framework of the “Shah Deniz” project received $409 m………………………………………..Full Article: Source

Future Fund shows punters the way

Posted on 15 October 2014 by VRS  |  Email |Print

The Future Fund is on track for to exceed its CPI plus 4.5% target this financial year, after earning a solid 2.9% in the September quarter. Australia’s sovereign wealth fund may benefit from any further outperformance of international markets. It holds a hefty 34.1% of its portfolio in global equities, including 24.4% in Developed Markets offshore, versus just 9.0% in Australian equities.
The Future Fund generated a 14.3% return in fiscal 2013-14, in creasing its value to $101.59 billion. “Globally, policy makers are seeking to balance the challenge of moving towards more normal policy settings while maintaining efforts to encourage economic growth,” Future Fund MD David Neal said. “This continues to present both risks and opportunities for investors.”……………………………………….Full Article: Source

SOFAZ earns huge profits from ACG, Shah Deniz fields

Posted on 14 October 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has made $107.254 billion of profit in a 13-year period from 2001 to October 1, 2014 by implementing the project of developing the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea. “The fund received $12.222 billion from January to October 1, 2014 within the framework of ACG project,” SOFAZ told Trend Agency on October 10.
The ACG block of fields has been active since 1997. Production first started at the Chirag part of the block. It was followed successfully by Azeri Project; Central Azeri in February 2005, West Azeri in December 2005, and East Azeri in October 2006………………………………………..Full Article: Source

UAE’s ADIA ranks among top sovereign wealth funds

Posted on 10 October 2014 by VRS  |  Email |Print

Arecent ranking report by the Sovereign Wealth Fund Institute (SWFI) showed the UAE’s Abu Dhabi Investment Authority (ADIA) ranking second in the Largest Sovereign Wealth Funds by Assets Under Management. Operating in the oil sector, ADIA’s assets are reported to be worth $773 billion. The UAE authority commenced operations in 1976.
First place on the list was snatched by the Government Pension Fund – Global in Norway, with assets worth $893 billion. Saudi Arabia and Kuwait also boast funds in the list’s top 10, as Saudi’s SAMA Foreign Holdings came in third place, retaining assets worth $757.2 billion, while the Kuwait Investment Authority (KIA) has assets worth $410 billion and ranks sixth on the list………………………………………..Full Article: Source

Samruk Kazyna total assets should reach $200bln: Nazarbayev

Posted on 09 October 2014 by VRS  |  Email |Print

Speaking about transformation of Samruk Kazyna Kazakhstan’s wealth fund, President of Kazakhstan Nursultan Nazarbayev said that it was supposed to lead to doubling of the Fund’s assets, Tengrinews reports.
“The Fund faces tasks of nation-wide scale. As part of the transformation, in the first place efforts should be focused on creating new value of the Fund’s companies, so that within 5 years its total assets double, meaning they should reach $200 billion, and not in 15, 20 or 50 years from now, as my friend Richard Evans [member of the Board of Directors of Samruk Kazyna] said,” Nazarbayev declared at Samruk Kazyna Transformation Forum earlier this week………………………………………..Full Article: Source

NZ Super Fund returns ‘exceptional’

Posted on 09 October 2014 by VRS  |  Email |Print

The New Zealand Superannuation Fund grew by almost 20 per cent to the value of $25.8 billion at the end of June thanks to strong investment returns. Chairman Gavin Walker said the performance of the fund over the past five years, when its returns have averaged 17 per cent, should be regarded as “exceptional” and were unlikely to continue.
Chief executive Adrian Orr said the prices of most investments had now returned to their long-term fair values and the fund could expect more normal returns in future. The fund slightly underperformed its reference portfolio, which is a benchmark of passive, low-cost listed investments in which the fund might expect to invest………………………………………..Full Article: Source

Oil wealth dividends distributed to most Alaskans

Posted on 03 October 2014 by VRS  |  Email |Print

Most Alaskans will receive $1,884 checks Thursday as this year’s share of the state’s oil wealth that’s distributed annually just for living here. The payout from the Alaska Permanent Fund this year is more than double the amount of the $900 dividends distributed in 2013, but short of the record payout of $2,069 in 2008.
The amount of each person’s check is based on a five-year average of the fund’s investment earnings, which have included the recession years. Alaska wasn’t hit as hard by the recession as the Lower 48, but the Permanent Fund Corp. has a diversified portfolio that was clobbered when markets plunged worldwide………………………………………..Full Article: Source

Fitch expects further moderate growth of Azerbaijan’s sovereign assets

Posted on 30 September 2014 by VRS  |  Email |Print

Azerbaijan’s sovereign balance sheet is one of the strongest of any rated sovereign and underpins the rating, the statement says. The State Oil Fund of Azerbaijan (SOFAZ) reached USD37.6bn in 1H14. Adding USD15bn in foreign-exchange reserves at the Central Bank of Azerbaijan (CBAR), the sovereign’s gross external assets are equivalent to 69% of GDP.
Fitch expects further modest growth in sovereign assets as the current account registers (diminishing) surpluses in 2014-16. This should provide a buffer against oil price or production shocks and support the manat’s (AZN) peg to the USD at AZN0.78/USD1………………………………………..Full Article: Source

Ireland’s new SWF will take ‘years’ to deploy capital fully, says NTMA head

Posted on 25 September 2014 by VRS  |  Email |Print

The Ireland Strategic Investment Fund (ISIF) will take up to four years to re-deploy its €7bn in assets, according to the head of the National Treasury Management Agency (NTMA).
John Corrigan, who is to retire as chief executive of the NTMA at the end of December, also said the organisation’s chairman Willie Walsh would soon start recruiting members of the ISIF investment committee………………………………………..Full Article: Source

2014 Looks to Beat 2013 in Sovereign Wealth Fund Transactions

Posted on 24 September 2014 by VRS  |  Email |Print

Increasingly, sovereign wealth funds are investing directly. The larger sovereign funds are getting involved in more deals, whether in institutional real estate, partaking as a group member in a company acquisition or buying more shares on the open market.
As a whole, the world of sovereign wealth funds is rapidly expanding due to numerous factors. One significant factor is the number of new sovereign wealth funds cropping up, particularly in Africa and the Americas……………………………………….Full Article: Source

“A trusted steward”: Temasek chairman Lim Boon Heng affirms the company’s ethos

Posted on 23 September 2014 by VRS  |  Email |Print

As Temasek celebrates its 40th anniversary, its chairman Lim Boon Heng chose the occasion to reflect on how the investment company has grown and transformed along with a rapidly changing Singapore.
Speaking at Temasek’s 40th anniversary dinner on Monday (Sep 22), Mr Lim noted how back in 1965, Singapore’s per capita income was just about S$650. Some 40 years later, the figure has grown to over S$80,000. Looking ahead, Mr Lim said Temasek has embarked on a long-term journey to invest and re-invest in the community, in Singapore and beyond………………………………………..Full Article: Source

Temasek Holdings celebrates 40th anniversary with Istana dinner

Posted on 23 September 2014 by VRS  |  Email |Print

An “experiment born out of necessity”, which turned into “a company like no other”, celebrated 40 years of growing alongside Singapore on Monday. Investment company Temasek Holdings is a Singapore institution which “epitomises (a) culture of constant hard work and ceaseless innovation to build for the future”, said President Tony Tan Keng Yam at the firm’s 40th anniversary dinner.
Held at the Istana, the event was attended by about 500 guests, including employees and chairmen past and present, key members of the business community, and international guests. Prime Minister Lee Hsien Loong and other ministers were also in attendance………………………………………..Full Article: Source

President Tony Tan lauds Temasek for its role

Posted on 23 September 2014 by VRS  |  Email |Print

The creation of Temasek Holdings has allowed Singapore to separate government from the running of its commercial interests, forcing those companies to succeed in their own right, Singapore’s President Tony Tan said on Monday.
“Many state-owned companies, or SOEs, around the world are protected from competition and cushioned from corporate realities through subsidies in various guises. This leads to an unlevel playing field,” he said at a dinner to mark the 40th anniversary of Temasek Holdings, the Singapore government’s investment company………………………………………..Full Article: Source

Each Alaskan to receive $1,900 from oil fund

Posted on 22 September 2014 by VRS  |  Email |Print

It’s a highly anticipated day of the year in Alaska, when residents learn how much money they’ll receive from the state’s oil wealth savings account — a payout people receive just for living in The Last Frontier. This year’s share of nearly $1,900 is the sweetest since the Great Recession and the third-richest ever.
Gov. Sean Parnell announced the amount of the Alaska Permanent Fund Dividend with great fanfare Wednesday. “This is all good news for Alaskans,” he said at an Anchorage press conference. The payout to be distributed Oct. 2 is more than double the amount of last year’s $900 checks but short of the record payout of $2,069 in 2008………………………………………..Full Article: Source

Mubadala units drive revenue growth during first half

Posted on 19 September 2014 by VRS  |  Email |Print

Mubadala Development, the strategic investment vehicle owned by the Abu Dhabi Government, said revenue and operating income rose in the first half of the year, mainly because of higher sales and income from its aerospace, energy and aluminium businesses.
Under the terms of the restructuring, Mubadala is due to have the full amount repaid by 2017. An executive at the company declined to comment on the Brazilian situation, but pointed to the fact that EBX had recently received $800m in cash from the sale of a 49 per cent stake in its Colombian gold business to the Qatar Investment Authority……………………………………..Full Article: Source

Mubadala’s first-half profit up 23% on higher JV income

Posted on 19 September 2014 by VRS  |  Email |Print

Mubadala Development Company, the Abu Dhabi-owned sovereign wealth fund, on Thursday posted a 23 per cent profit jump for the first half of the year. The company tasked with developing the emirate’s economy posted a Dh1.34 billion ($364.8 million) profit attributable to equity owners compared to the Dh1.09 billion profit it accrued in the same period a year ago.
Mubadala’s 23 per cent profit jump is off the back of higher revenues from joint ventures such as Emirates Global Aluminium and Dolphin Energy. Income from the joint venture business doubled to Dh2.12 billion in the six months ending June 30……………………………………..Full Article: Source

Malaysia’s Khazanah to gain US$1bil from investment in China’s Alibaba

Posted on 19 September 2014 by VRS  |  Email |Print

A little-known investment by Khazanah Nasional Bhd in Alibaba Group in 2012 has paid off. Khazanah’s investment in the e-commerce giant from China is estimated to be valued at between US$1bil and US$1.2bil (RM3.22bil and RM3.86bil), a between four and five-fold increase of its initial US$250mil investment.
Its investment, although only small in comparison with the size of the technology stock’s valuation estimated at between US$160bil and US$170bil, will provide a handsome windfall should the state investment unit decide to divest upon the listing of Alibaba Group Holding Ltd in the United States……………………………………..Full Article: Source

2014 Permanent Fund Dividend To Be Announced Sept. 17

Posted on 10 September 2014 by VRS  |  Email |Print

One of Alaska’s most anticipated announcements of the year, the amount of the 2014 Permanent Fund Dividend, will be revealed next week. Gov. Sean Parnell’s office says he will announce the amount of this year’s dividend at 10:30 a.m. Sept. 17, at the Atwood Building in Downtown Anchorage.
On Friday, Channel 2 made its annual prediction of the dividend’s amount at $1,909. The first round of deposits are expected to hit Alaskan bank accounts in the beginning of October………………………………………..Full Article: Source

SOFAZ earns huge profit from ACG, Shah Deniz projects

Posted on 04 September 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has gained over $105.802 billion from 2001 to September 1, 2014 by implementing the project of developing the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea.
“The fund received $10.77 billion from January to September 1, 2014 within the framework of ACG project,” SOFAZ told Trend Agency on September 2. The ACG block of fields has been active since 1997. Production started from the Chirag part of the field. It was followed successfully by Azeri Project; Central Azeri production in February 2005, West Azeri in December 2005, and East Azeri in October 2006………………………………………..Full Article: Source

Norway sovereign fund up 3.3% in Q2

Posted on 22 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, returned 192 billion kroner (S$38.79 billion) in the second quarter as energy stocks and emerging markets led a rally amid turmoil in Iraq and Ukraine. The Government Pension Fund Global gained 3.3 per cent in the quarter, the Oslo-based investor said yesterday. The US$880 billion fund’s stock holdings returned 4 per cent and its bonds 2 per cent. Real estate returned 3 per cent.
“Equity markets rose in the second quarter and emerging markets performed best,” Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which runs the fund, said in a statement. “Considerable liquidity flowed into the market, which pushed asset prices up.”……………………………………….Full Article: Source

Norway’s Wealth Fund Gains $31 Billion on Global Stock Surge

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, returned 192 billion kroner ($31 billion) in the second quarter as energy stocks and emerging markets led a rally amid turmoil in Iraq and Ukraine. The Government Pension Fund Global gained 3.3 percent in the quarter, the Oslo-based investor said today. The $880 billion fund’s stock holdings returned 4 percent and its bonds 2 percent. Real estate returned 3 percent.
“Equity markets rose in the second quarter and emerging markets performed best,”Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which runs the fund, said in a statement. “Considerable liquidity flowed into the market, which pushed asset prices up.”……………………………………….Full Article: Source

PE Has Lowest Return Among Alternative Assets For Korea Investment Corp.

Posted on 18 August 2014 by VRS  |  Email |Print

Private equity has generated an 8.6% return during 2013 for Korea Investment Corp.the lowest among all alternative asset classes that the Korean sovereign wealth fund invests in, KIC’s most recent annual report shows. The $72-billion fund is the latest sovereign wealth fund to release annual reports this month, following its counterparts in China and Singapore. Those reports offer a rare window into performance of historically secretive sovereign wealth funds, which are increasingly flexing their muscle in the private equity industry both as fund investors and as direct deal makers.
KIC got into private equity investing in 2009, and in 2010, entered real estate and hedge funds. According to its annual report, private equity has generated lower returns than the other two asset classes, on all three metrics that KIC uses to measure returns. For 2013, private equity returned 8.6%, compared with 9% and 9.5% for hedge funds and real estate, respectively………………………………………..Full Article: Source

Alaska Permanent Fund tops $50 billion mark, returns 15.5% for year

Posted on 12 August 2014 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, ended the fiscal year above $50 billion for the first time with a preliminary return of 15.5% for fiscal 2014, vs. 15.7% for its composite benchmark. The sovereign wealth fund reported $51.2 billion in total assets for the fiscal year that ended June 30, up $6.3 billion over the closing value for the prior fiscal year.
Returns for the $21 billion equity portfolios drove performance. The U.S. equity portfolio had the highest return at 27%, global equities returned 25% and the non-U.S. equity portfolio returned 20.2%……………………………………Full Article: Source

China Investment Corp. Gains 9.3% on Overseas Investments

Posted on 11 August 2014 by VRS  |  Email |Print

China Investment Corp., the country’s sovereign wealth fund, reported a 9.3% return on its overseas investments in 2013, a decline from 10.6% in 2012. CIC said its net profit rose 11.8% to $86.9 billion in 2013, up from $77.7 billion a year earlier. It has recorded a 5.7% annualized return on its overseas investments since it was founded in 2007, the fund said in its annual financial report, which was released Friday.
Chairman and CEO Ding Xuedong said in the report that the firm had realized good returns by exiting more than 10 investments last year as global markets were on the rise. He didn’t give details on those investments…………………………………Full Article: Source

China Sovereign Fund Says Returns Decline Amid Volatility

Posted on 11 August 2014 by VRS  |  Email |Print

China Investment Corp., the nation’s $653 billion sovereign wealth fund, said return on its overseas investments fell last year as volatility in global financial markets eroded the value of its portfolio and prompted the company to cut bond holdings.
The return dropped to 9.33 percent from 10.6 percent in 2012, according to the Beijing-based company’s 2013 annual report released yesterday. Net income at the fund, which also holds government stakes in China’s biggest banks, rose 12 percent to $86.9 billion, the report showed…………………………………Full Article: Source

UAE’s ADIA most open sovereign fund in Gulf – Euromoney

Posted on 08 August 2014 by VRS  |  Email |Print

In its report for August, Euromoney magazine said that the Abu Dhabi Investment Authority (ADIA) is the most open sovereign wealth fund in the Gulf region, following the fund’s recently published fifth annual report. Examining ADIA’s hiring trends over the past few years affirms the idea that ADIA seeks to bolster its in-house efficiency.
According to Euromoney’s official website, ADIA, in 2013, recruited its first ever global head of internal equities AllianceBernstein veteran Gregory Eckersley, with responsibility for overseeing all internally managed active equity portfolios………………………………………..Full Article: Source

Australian sovereign wealth fund reports assets of AUD101bn+

Posted on 07 August 2014 by VRS  |  Email |Print

The Future Fund reports that in the 2013/2014 financial year investment returns added AUD12bn to its value. Original contributions to the fund from government valued at AUD60.5bn have generated investment returns of over $40bn and overall, the value of the sovereign wealth fund has increased to AUD101bn.
Over seven, five, three and one year periods to the end of June this year the fund has either met or exceeded its return objective: Since its creation in May 2006 the Fund has achieved a return of 7.1% per annum, just shy of its target of 7.2%. “These returns show the value of long-term and patient investing. In the Fund’s early days, in a challenging investment climate, the returns were below the target range, but disciplined adherence to clear objectives have delivered good results over the medium-term. The Fund is now focused on performance through to 2020 and beyond,” notes Peter Costello, chairman of the sovereign wealth fund………………………………………..Full Article: Source

Sovereign Wealth Fund Direct Transactions Highest YTD Since 2008

Posted on 07 August 2014 by VRS  |  Email |Print

Direct deals and transactions by global sovereign wealth funds touched US$ 50.02 billion in the first half of 2014. This is a 23.1% increase in transactions comparing it to the first half of 2013 (US$ 40.64 billion). The highest first half on record of direct sovereign wealth fund transactions was the first half of 2008 (US$ 51.05 billion), a significant portion of that amount was attributable to the bank bailouts.
Singapore is the lead acquiring nation for sovereign wealth fund direct transactions with US$ 21.21 billion for the first half of 2014. This is followed by the United Arab Emirates and China. In 2014, Temasek Holdings opened a New York office………………………………………..Full Article: Source

Saudi funds abroad cross SR385 billion

Posted on 06 August 2014 by VRS  |  Email |Print

Financial assets belonging to independent Saudi organizations, including the Saudi Arabian Monetary Agency (SAMA) and Public Investment Fund (PIF), in foreign countries amounted to SR385.3 billion, comprising 63 percent of their total assets.
“These organizations have invested SR335.1 billion, or 55 percent of their total assets in foreign stock markets and bonds,” said an analytical report, adding that they deposited SR50.2 billion, or eight percent of their funds, in foreign banks………………………………………..Full Article: Source

Value of Australia’s Future Fund Exceeds $100 Billion for the First Time

Posted on 05 August 2014 by VRS  |  Email |Print

Australia’s Future Fund has reached $101 billion on Monday, exceeding the $100 billion mark at the end of June after its investment returns for the 2013-14 financial year yielded $12 billion. Former Treasurer Peter Costello established the fund in 2006. Since then and despite the global financial crisis in 2008, the fund enjoyed an average nominal annual growth rate of 7.1 per cent, just slightly lower than its 7.2 per cent target.
Costello, the chairman of the fund, said that during the fund’s early days when the investment climate was challenging, resulting in returns yielding lower than the company’s target range. However, he pointed out that disciplined adherence to clear objectives resulted in good growth rates over the long term………………………………………..Full Article: Source

Future Fund facing super shortfall

Posted on 05 August 2014 by VRS  |  Email |Print

A lack of budget surplus contributions to the Future Fund could see it come up short in meeting federal public service superannuation liabilities, The Australian reports. Yesterday the Future Fund announced returns in fiscal 2014 that far exceeded the target rate, but the government’s super liabilities for 2020 – when the Fund is due to start paying out – are on track for $200 billion, well above the current $101bn size of the Fund.
Future Fund chairman Peter Costello said the fund had no control over future liabilities, but more funds from the government would be welcomed. “We have had six years of no contributions and if you are asking me whether it would have been nice to have had some contributions, yes, of course it would be nice to have some contributions,’’ Mr Costello told The ­Australian………………………………………..Full Article: Source

AEDC Says Permanent Fund Dividend May Rise This Year

Posted on 05 August 2014 by VRS  |  Email |Print

Forecasting suggests that this year’s Permanent Fund Dividend is expected to rise significantly. KDLG’s Chase Cavanaugh has more on the market analysis. The Anchorage Economic Development Corporation predicts that the declining dividends in the Alaska Permanent Fund are expected to reverse this year.
Established in 1976, the Permanent Fund sets aside oil revenues in a dedicated place for future generations. Part of this program is an annual dividend paid to Alaska residents, last year’s totaling $900 per individual. Bill Popp is AEDC’s CEO, and he says this year’s dividend will increase significantly………………………………………..Full Article: Source

GIC reports steady returns

Posted on 04 August 2014 by VRS  |  Email |Print

Singapore investment fund GIC posted brighter returns on the nation’s nest egg as the world economy kept growing and financial markets stayed robust. ver five years to March 31 this year, GIC’s assets across the globe returned 12.4 per cent in US dollar terms - well above the 2.6 per cent for the five years to March 31 last year.
The big jump came as worldwide markets kept rebounding strongly from the lows of the 2008-2009 global financial crisis. “Its five-year returns improved significantly because the 2008 bear market has been flushed out,” said APS Asset Management founder and chief investment officer Wong Kok Hoi, who used to work at GIC………………………………………..Full Article: Source

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