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Norway’s sovereign wealth fund posts $US10b quarterly loss

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s $US870 billion sovereign wealth fund, the world’s biggest, returned to losses in the first quarter amid some of the most turbulent markets since the financial crisis as the government started withdrawals.
The Government Pension Fund Global lost 85 billion kroner ($US10 billion), or 0.6 per cent, after rising 3.6 per cent in the fourth quarter, the Oslo-based investor said on Thursday. Its stock portfolio lost 2.9 per cent, its bonds gained 3.3 per cent and the real-estate investments fell 1.3 per cent………………………………………..Full Article: Source

Norway’s sovereign wealth fund returns -0.6% in quarter; government makes first withdrawal

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s Government Pension Fund Global, Oslo, returned -0.6% in the quarter ended March 31, with assets falling 5.3% to 7.08 trillion Norwegian kroner ($848 billion) as market volatility hit, and the government withdrew money for the first time.
In a financial update Thursday, Norges Bank Investment Management, which runs the assets of the sovereign wealth fund, said the return was equivalent to an 85 billion Norwegian kroner loss. In the three months ended Dec. 31, returns were 3.5%, or 279 billion Norwegian kroner. Over the year ended March 31, assets increased 1%………………………………………..Full Article: Source

Norway’s sovereign wealth fund hit by global stock turmoil

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s $870bn oil fund recorded its third quarter of negative returns in the past year as weak stock markets from China to Europe weighed on its results. The world’s largest sovereign wealth fund had a negative return of 0.6 per cent in the first quarter, writes Richard Milne, Nordic correspondent.
Trond Grande, deputy chief executive of Norges Bank Investment Management, the oil fund’s manager, said: “The first two months of 2016 were characterised by high market volatility and concerns for a Chinese slowdown. The turbulence eased considerably in March.”……………………………………….Full Article: Source

Samruk Kazyna’s 2016 net income seen plunging on low oil price, weak demand

Posted on 26 April 2016 by VRS  |  Email |Print

Kazakh sovereign wealth fund Samruk Kazyna’s net income grew in 2015 but is forecast to nosedive this year, trailing low oil prices and weakening demand in major trading partners Russia and China, the company said on Monday.
Samruk’s net income increased by 30 percent to 304.8 billion tenge ($913.78 million) last year, due mainly “to the positive effect of exchange rate differences”, the fund said, referring to the sharp devaluation of the tenge in 2015. The fund’s net income is expected to fall sharply to 100.8 billion tenge this year………………………………………..Full Article: Source

Future Fund cash holdings rise again after first-quarter loss

Posted on 25 April 2016 by VRS  |  Email |Print

The Future Fund has boosted its cash holdings by a further $2.4 billion to $26.8 billion as it posted its first negative quarterly return since June 2012. The Australian sovereign wealth fund returned a modest negative 0.9 per cent, as its assets declined to $117.39 billion from $118.4 billion from the start of the year as it continued to shift its allocation towards more defensive investments such as cash.
The high cash position, which accounts for 23 per cent of assets, and falling returns is highlighting the challenge facing the fund in attempting to avoid taking excessive investment risk while still hitting its mandated target………………………………………..Full Article: Source

Future Fund posts first quarterly loss since 2012

Posted on 22 April 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund, the Peter Costello-chaired Future Fund, has booked its first quarterly loss in years, which has whittled away the investment return over the financial year-to-date.
The disappointing result came as Mr Costello warned of persistent lower returns, with the Future Fund continuing to drive its holdings into safer cash assets as global central banks shave their ability to further stimulate the weak economy. The Future Fund missed its quarterly target of returns of 1.2 per cent, logging a negative 0.9 per cent return over the three months through March………………………………………..Full Article: Source

SOFAZ assets gets 2% rise

Posted on 21 April 2016 by VRS  |  Email |Print

The revenues from managing assets for first quarter 2016 amounted to 148.8 mln. manat. Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-March, 2016 reached 2,023.1 million manat, while budget expenditures constituted 1,946.7 million manat, APA reports.
Revenue of 1,874.3 mln. manat was received from implementation of oil and gas agreements, including 1,869.8 mln. manat from the sale of profit oil and gas, 0.1 mln. manat as bonus payments and 4.4 mln. manat as transit payments………………………………………..Full Article: Source

Commodities slump stalling sovereign wealth growth

Posted on 21 April 2016 by VRS  |  Email |Print

Sovereign wealth funds in commodities economies are being forced to sell off assets to manage government deficits, slowing growth for the sector. The 2016 Preqin Sovereign Wealth Fund Review shows that while assets held in sovereign wealth funds collectively grew by $200 billion to hit $6.51 trillion in the year to March 2016, this growth was significantly slower than in previous years.
According to Preqin premium publications manager Selina Sy, growth has been hampered largely by sovereign wealth funds in oil-producing nations “fulfilling their function by providing for budget deficits in more challenging economic periods.” In some cases, funds like this saw their assets under management more than halved as a result………………………………………..Full Article: Source

Global sovereign wealth fund assets rise to $6.51 trillion

Posted on 20 April 2016 by VRS  |  Email |Print

Sovereign wealth fund (SWF) assets increased by $200 billion in the year to March 2016 and now stand at $6.51 trillion despite recent market volatility and low oil prices, data from research provider Preqin showed on Tuesday.
That represents a yearly growth rate of about 3 percent, compared with rates of 16-17 percent in previous years. But SWFs now hold more than double the assets seen in 2009 when the aggregate AUM totalled $3.22 trillion. The growth was driven by non-commodity funds, which added some $290 billion in assets, whilst SWFs reliant on windfall revenues from oil and gas lost $10 billion, Preqin said………………………………………..Full Article: Source

Preqin: Sovereign wealth fund assets up 3.2% in year; oil-dependent funds drop

Posted on 20 April 2016 by VRS  |  Email |Print

Assets held by sovereign wealth funds across the globe increased 3.2% to $6.51 trillion in the 12-month period through March, driven by growth in non-commodity funds, Preqin said. The research firm reported that funds that do not derive their assets from commodities added $290 billion in assets over the year, while funds reliant on hydrocarbon assets, including oil, lost $10 billion.
Other commodities funds lost more than half of their wealth, dropping by more than half to $50 billion, from $130 billion a year earlier. Preqin, which analyzed the growth and asset allocations of 74 sovereign wealth funds, highlighted in its research the effect of the oil price collapse on investors………………………………………..Full Article: Source

Nigeria’s sovereign wealth fund assets grew by 20pct to $1.07 bln in 2015 - SIA

Posted on 04 April 2016 by VRS  |  Email |Print

Total assets of Nigeria’s sovereign wealth fund grew to 213.67 billion naira ($1.07 billion) in 2015, up by 20 percent compared with the previous year, its managing director said on Friday. Nigeria, Africa’s biggest oil producer, established the Sovereign Investment Authority (SIA) in 2011 with $1 billion of seed capital in an effort to manage oil export revenues.
President Muhammadu Buhari took office last May and has prioritised cracking down on corruption and mismanagement, particularly in the oil sector, which has deepened an economic crisis exacerbated by falling crude prices………………………………………..Full Article: Source

SOFAZ reveals revenues from ACG field

Posted on 24 March 2016 by VRS  |  Email |Print

Revenues of Azerbaijan’s State Oil Fund (SOFAZ) from the development project of Azeri-Chirag-Guneshli (ACG) block of oil and gas fields totaled $117.799 billion from early 2001 to March 1, 2016, SOFAZ told Trend.
“The Fund’s revenues from the project totaled $790 million in Jan.-Feb. 2016, some $442 million of which accounted for January,” said SOFAZ. A contract for development of ACG block of fields was signed in 1994. The proven oil reserve of the block nears one billion tons………………………………………..Full Article: Source

SOFAZ reveals revenues from largest oil project

Posted on 23 March 2016 by VRS  |  Email |Print

Revenues of Azerbaijan’s State Oil Fund (SOFAZ) from the development project of Azeri-Chirag-Guneshli (ACG) block of oil and gas fields totaled $117.799 billion from early 2001 to March 1, 2016, SOFAZ told Trend.
“The Fund’s revenues from the project totaled $790 million in Jan.-Feb. 2016, some $442 million of which accounted for January,” said SOFAZ. A contract for development of ACG block of fields was signed in 1994. The proven oil reserve of the block nears one billion tons………………………………………..Full Article: Source

Author doubts accuracy of Qatar Investment Authority’s reported loss of $12 billion in third quarter of 2015

Posted on 22 March 2016 by VRS  |  Email |Print

The Financial Times reported a few months ago that the Qatar sovereign wealth fund, the Qatar Investment Authority (QIA), had suffered a $12 billion paper loss in the third quarter of 2015. Unconvinced of the veracity of this report, Chris Wright, financial columnist and the author of “No More Worlds to Conquer,” told Gulf News Journal why it’s unlikely that QIA might have had a loss of that magnitude during that period.
“The problem is that the QIA doesn’t disclose its holdings, so we don’t know how other assets in the portfolio performed,” Chris Wright told Gulf News Journal. “Their real estate holdings probably did a lot better over the same period. On top of that, those are clearly not realized losses. Volkswagen fell heavily in that quarter, but it had gone up for several years beforehand. In the end, sovereign wealth funds don’t care about quarterly performance. They are set up for generations ahead.”……………………………………….Full Article: Source

Reality Bites For OPEC’s Sovereign Wealth Funds

Posted on 17 March 2016 by VRS  |  Email |Print

Reality has begun to bite as low oil prices have continued to take their toll. Thus far, OPEC’s sovereign producers have tried to stay afloat by cutting spending, running down reserves and increasing borrowing efforts. These efforts are most important for the ‘fragile five’.
Total sovereign wealth fund AUM has largely flat lined as the fall in oil prices has curtailed increases. With the prolonged nature of the current price environment, the potential call on these funds to cover fiscal deficits could be as much as US$200 billion………………………………………..Full Article: Source

SOFAZ headquarters rated “Good”

Posted on 16 March 2016 by VRS  |  Email |Print

Headquarters of the State Oil Fund of the Republic of Azerbaijan (SOFAZ Tower) was rated “Good” by the Building Research Establishment Environmental Assessment Methodology Institution (BREEAM).
SOFAZ told APA-Economics that BREEAM Assessments was established in 1990 and since that time is globally recognized as an official assessment standards for projects and constructions. Assessments of the projects and constructions are performed based on following technical standards: masterplanning, new construction, in-use international, refurbishment and fit-out. New Construction version can be applied to shell, shell and core, and fully-fitted building projects………………………………………..Full Article: Source

$6 billion real estate bet eases pain for giant oil fund

Posted on 15 March 2016 by VRS  |  Email |Print

Size, it seems, is no guarantee of success in today’s volatile markets. The world’s biggest sovereign wealth fund has just reported its worst year of investment returns since 2011. Norway’s $876 billion oil fund made 2.7% in 2015, half the average it has achieved over the past decade.
Real estate was its best play last year, generating 10%. Stocks were next with 3.8% and bonds lagged with 0.3%. The fund increased its investments in real estate by about $6 billion in 2015 to make up for poor returns in other markets. It bought a $1.5 billion stake in office buildings in Hudson Square, Manhattan. It is planning more property shopping in Asia, focusing on Tokyo and Singapore………………………………………..Full Article: Source

Sovereign wealth funds managed assets worth a record $7.1 trillion in 2014

Posted on 14 March 2016 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) have increased and consolidated their investment flows. Worldwide, there are currently 92 active SWFs (eight more than last year) and the assets under their management are worth a total of $7.1 trillion (up from $5.9 trillion last year).
Meanwhile, a further 25 countries are considering the possibility of creating a SWF. The greatest investment capacity is concentrated in four areas - Norway, Southeast Asia, the Gulf Cooperation Council countries, and China - but Africa and Latin America are also emerging as important SWF regions. These are just a few of the highlights of the 4th Sovereign Wealth Fund Report, written by ESADE, KPMG Spain, and ICEX-Invest in Spain. The report analyses the behaviour and major trends of SWFs over the course of 2014 and early 2015………………………………………..Full Article: Source

Temasek Named Most Active Sovereign Wealth Fund Again

Posted on 14 March 2016 by VRS  |  Email |Print

There were 92 sovereign wealth funds in the world managing over $7 trillion in 2014, an increase of $1.2 trillion since the previous year, as per the 4th Sovereign Wealth Fund Report by ESADE, KPMG and ICEX-Invest in Spain. Since 2010, 22 new funds have been created, and 25 countries are considering the setting of a new fund.
As per the report, SWFs are concentrated mainly in four areas, Middle East, China, Southeast Asia and Norway. SWFs invested nearly $90 billion in 140 deals during 2014. “On the podium of the most active funds, Temasek led the field again for the second consecutive year, with more than 40 transactions, followed by GIC with 23………………………………………..Full Article: Source

Norway’s massive sovereign wealth fund posts weak gains

Posted on 10 March 2016 by VRS  |  Email |Print

The world’s largest sovereign wealth fund gained 2.7 percent on its investments last year, the weakest return in four years. The fund has divested from environmentally destructive companies.
Norway’s sovereign wealth fund ended last year with assets of 796 billion euros ($874 billion) despite the global market turmoil, the Nordic country’s central bank said on Wednesday. The fund gained 35 billion euros ($39 billion), the lowest return since 2011………………………………………..Full Article: Source

Weakest return for Norway sovereign wealth fund since 2011

Posted on 10 March 2016 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund, Norway’s public pension fund, said Wednesday it posted a 2.7-percent return in 2015 owing to real estate and the global stock market recovery.
It was however the fund’s weakest performance since 2011. Investments posted returns of 334 billion kroner (35.6 billion euros, $39 billion at current exchange rates) last year, boosting the fund’s value to 7,475 billion kroner (796 billion euros, $874 billion) as of the end of December………………………………………..Full Article: Source

SOFAZ reveals revenues, expenditures in 2015

Posted on 03 March 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, which accumulates and manages the energy-rich country’s oil and gas revenues, has revealed its revenues and expenditures for the period of January-December 2015.
The Fund reported on March 1 that during the reported period, its budget revenues exceeded 7.721 billion manats ($4.898 billion), while budget expenditures constituted 9.188 billion manats ($5.829 billion)………………………………………..Full Article: Source

SOFAZ gets 9.5% decline in assets

Posted on 02 March 2016 by VRS  |  Email |Print

Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-December, 2015 reached 7,721.1 million manats, while budget expenditures constituted 9,187.7 million manats.
SOFAZ told APA-Economics that revenue of 7,385.5 mln. manats was received from implementation of oil and gas agreements, including 7,369.6 mln. manats from the sale of profit oil and gas, 2.2 mln. manats as acreage fees, 2.1 mln. manats as bonus payments and 11.6 mln. manats as transit payments………………………………………..Full Article: Source

Temasek’s energy, bank holdings take a hit

Posted on 26 February 2016 by VRS  |  Email |Print

Singapore investment firm Temasek Holdings has racked up paper losses on its investments in banks and energy companies amid the global economic turmoil. Deepening pressures within the banking industry, for instance, have taken a toll on the companies in the financial services sector that Temasek has invested in.
With crude prices down more than 70 per cent - at dismal levels of US$34 a barrel - Temasek’s picks in the energy and services sector, comprising 5 per cent of the firm’s portfolio, have also not been spared the bloodbath that has affected the industry worldwide………………………………………..Full Article: Source

Norway oil fund close to peak, uncertain returns ahead

Posted on 19 February 2016 by VRS  |  Email |Print

The size of Norway’s $810 billion sovereign wealth fund, the world’s biggest, may have peaked as oil prices collapsed and Oslo gets ready for its first net cash withdrawal, the central bank said.
Built from oil and gas revenues over a 20-year period, the fund is invested in foreign stocks, bonds and real estate to share the country’s hydrocarbon wealth with future generations and avoid creating asset bubbles at home. The fund’s rules allow the government to withdraw up to four percent of its value annually and its growth in previous years had always exceeded the level of withdrawals………………………………………..Full Article: Source

KIC CEO promises to expand asset trust to $200 billion by 2020

Posted on 18 February 2016 by VRS  |  Email |Print

Having reported a negative return last year, South Korea’s sovereign wealth fund Korea Investment Corp. (KIC) decided to up the scale of asset trust by 2.5 times from current levels to $200 billion by 2020. The corporation will install the offices of auditor and risk management officer to reinforce oversight of the state asset agency.
KIC CEO Eun Sung-soo said KIC will incrementally increase its asset from last year’s $80 billion to $200 billion by 2020 to raise efficiency in asset management………………………………………..Full Article: Source

Alaska Permanent returns 2.1% for quarter, missing its benchmark

Posted on 17 February 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 2.1% for the quarter ended Dec. 31 and -2.2% for the first half of its fiscal year, said a news release from the $52 billion sovereign wealth fund. The permanent fund’s performance benchmark returned 3.1% and -2.6%, respectively, during the same periods. The sovereign wealth fund’s fiscal year started July 1.
“A rally this fall helped make up some of the ground lost in the first quarter, but in the end it wasn’t enough to bring the permanent fund back to positive performance for the first half of the fiscal year,” said Angela Rodell, CEO/executive director, in the news release. “The slowdown in the Chinese economy and drops in commodity prices, including oil, have weighed on global markets, bringing a several-year period of growth to an end.”……………………………………….Full Article: Source

Kuwait sovereign fund’s assets reach $535bn

Posted on 15 February 2016 by VRS  |  Email |Print

The assets of Kuwait sovereign wealth fund are estimated at $535 billion at the end of 2015, said Standards & Poor’s (S&P). Global oil prices declined further since the agency’s latest rating in August 2015. The agency had revised its forecasts for oil prices in January, expecting them to see more decline from 2016 to 2019.
S&P maintained Kuwait’s credit rating at ‘AA’, with Stable Outlook. The agency projected the state’s GDP and public spending to fall, stating that Kuwait has built huge net financial assets over the past years and these assets will help it overcome the current decline in oil prices………………………………………..Full Article: Source

SOFAZ earns 27 million pounds on real estate in London

Posted on 12 February 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ earned around 27 million pounds on real estate in London as of January 1, 2016. The real estate, located at Saint James Street in London, was purchased by SOFAZ for 177.35 million pounds in 2012, the Company reported on February 10.
“After the real estate was leased until late 2015, SOFAZ received income worth about 27 million pounds,” the statement said. “Currently, this real estate is estimated at 213 million pounds. Taking into account the high liquidity on the real estate market in London, this asset can be sold at a specified price within a short period.”……………………………………….Full Article: Source

Azeri state fund sees smaller 2016 revenues, says will support manta

Posted on 10 February 2016 by VRS  |  Email |Print

Azeri state oil fund SOFAZ expects less revenue this year than envisioned and a lower assets valuation due to falling oil prices, but will continue to support the country’s ailing manat currency, its deputy CEO said on Tuesday. The Caucasus nation of about 10 million people relies on oil and gas exports to cover 75 percent of its revenues, but the oil price nosedive has triggered a plunge in the manat.
In a budget approved earlier, SOFAZ, a $34 billion sovereign wealth fund, projected revenue of $4.2 billion in 2016. “Taking into account that the average price of oil is expected to be lower than the budget assumption of $50 per barrel, (our) revenues are expected to be lower for 2016,” deputy CEO Israfil Mammadov said in an e-mailed answer to Reuters questions………………………………………..Full Article: Source

Abu Dhabi sovereign wealth fund assets to fall by 5% by end-2016 – Fitch

Posted on 04 February 2016 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, is expected to see its assets decline by just over 5 percent this year as the UAE capital attempts to balance its books on the back of the oil price slide.
Ratings agency Fitch said it projected a fall from an estimated $502 billion by end-2014 to $475 billion as outflows outpace investment returns. Abu Dhabi’s budget deficit widened from 7.2 percent in 2014 to 13.2 percent last year, prompted by a drop in oil and gas income………………………………………..Full Article: Source

SAMA’s net foreign assets reach SR2.283 trillion

Posted on 29 January 2016 by VRS  |  Email |Print

Net foreign assets at Saudi Arabian Monetary Agency (SAMA) declined 3.1 percent in December from the previous month to SR2.283 trillion ($609 billion), the central bank announced. Assets dropped 15.9 percent from a year earlier to their lowest level since August 2012. They reached a record high of $737 billion in August 2014 before starting to shrink.
The central bank, which acts as Saudi Arabia’s sovereign wealth fund, has been drawing down its assets to cover a huge state budget deficit caused by a plunge in oil prices. The bulk of foreign assets are believed to be denominated in US dollars………………………………………..Full Article: Source

Australia’s Future Fund Returns 8.4% in 2015, Expands Cash Level

Posted on 28 January 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund returned 8.4 percent last year to beat global and domestic benchmarks, as it increased cash holdings to pare risk. Future Fund, which manages A$118.4 billion ($83 billion), trimmed its global stock and private-equity investments, it said in an e-mailed statement Wednesday.
It warned that future returns may be lower as central banks withdraw monetary stimulus. “We have gradually reduced the level of risk in the portfolio through 2015, reflecting our view of the investment environment,” Managing Director David Neal said in the statement………………………………………..Full Article: Source

Future Fund on defensive with 20pc cash weighting

Posted on 28 January 2016 by VRS  |  Email |Print

The managing director of the Future Fund has warned investors are not being adequately compensated for a rising number of risks in global markets, including energy prices, volatility in China, Europe’s refugee crisis and the US Federal Reserve’s actions.
The $118 billion sovereign wealth fund, which reported an 8.4 per cent return for 2015, has increased its weighting to cash above 20 per cent of its portfolio as it remains concerned about valuations in global markets, even as sharemarkets have been battered in a tumultuous start to 2016………………………………………..Full Article: Source

Happy returns for the Future Fund, for now

Posted on 28 January 2016 by VRS  |  Email |Print

As Australia’s $118 billion sovereign wealth fund prepares to celebrate its first decade in operation, it can look back with some satisfaction at a track record of beating its benchmark through years of volatile investment markets.
But, as the Future Fund has been warning would happen for the past couple of years, its returns slowed sharply in the latest six-month period as global markets shuddered at the prospect of some central banks winding down stimulus and growing divergence between major economies………………………………………..Full Article: Source

Boom, Bust, or Broke: What ‘Replumbing’ the Permanent Fund Would Look Like

Posted on 28 January 2016 by VRS  |  Email |Print

“Re-plumbing” the Permanent Fund is the most significant piece of Walker’s plan to close the budget deficit, projected to be $3.5 billion in Fiscal Year 2017. Attorney General Craig Richards told State Affairs members Tuesday that SB 128 will transition Alaska from an oil-based budget to one based on financial assets.
Stocks have performed better than oil since the Great Depression. They have significantly outperformed oil since about 1950, as Harvard Kennedy School of Government Fellow Malan Rietveld showed the committee………………………………………..Full Article: Source

Australia’s Future Fund delivers 8.4 pct, lowest return since 2011

Posted on 27 January 2016 by VRS  |  Email |Print

Australia’s sovereign wealth manager, the Future Fund, on Wednesday said it returned 8.4 percent in the year ending Dec. 31, its lowest annual return since 2011 as it boosts cash holdings amid greater global markets volatility.
Global markets have been unusually volatile since last August, largely led by fears of slowing growth in China and uncertainty over the timing of U.S. interest rate hikes. Future Fund Managing Director David Neal said the fund has “gradually reduced the level of risk” in the portfolio through 2015………………………………………..Full Article: Source

Sovereign Wealth Funds Are Driving Asset Slump, Jefferies Says

Posted on 20 January 2016 by VRS  |  Email |Print

Sovereign wealth funds from energy-producing countries are exacerbating a global market rout by selling off assets to meet their financial commitments amid slumping oil prices, according to Jefferies LLC.
The sales mark a new phase for the countries, after they tried boosting oil production and printing currency to make their payments, David Zervos, chief market strategist at New York-based Jefferies, wrote Monday in a note to clients………………………………………..Full Article: Source

Future Fund awarded sovereign investor of 2015

Posted on 20 January 2016 by VRS  |  Email |Print

Australia’s $118 billion sovereign wealth fund has been recognised for its restrained decision not to increase risk to chase returns in 2015, collecting sovereign investor of the year at the 2016 Central Banking Awards.
Managing director of the Future Fund, David Neal, said fund had to make certain it was not brought in to financial crisis aftershocks. “While the global economy has continued to heal following the 2008-09 financial crisis, significant imbalances persist and the potential for missteps and shocks remains,” Neal said………………………………………..Full Article: Source

The Trouble With Sovereign-Wealth Funds

Posted on 20 January 2016 by VRS  |  Email |Print

Russian President Vladimir Putin, center, spoke with the emir of Kuwait, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, in November in Russia at the time the Russian Direct Investment Fund signed an agreement with Kuwait’s sovereign-wealth fund, the Kuwait Investment Authority, to expand their partnership.
Kazakhstan’s $55 billion sovereign-wealth fund helped pull the country through the global financial crisis and offered funding for the country’s bid to host the 2022 Winter Olympics. But the collapse in oil prices has hit Kazakhstan and its fund, Samruk-Kazyna JSC, hard. In October, the fund borrowed $1.5 billion in its first syndicated loan to help a cash-strapped subsidiary saddled with a troubled oil-field investment………………………………………..Full Article: Source

Malaysia accounts for 55.1% of Khazanah’s realisable asset value

Posted on 14 January 2016 by VRS  |  Email |Print

Malaysia accounted for about 55.1% of Khazanah Nasional Bhd’s realisable asset value (RAV) by geographic exposure in 2015. The sovereign wealth fund said on Wednesday that overseas investments accounted for the remainder of RAV.
The RAV reflected Khazanah’s internationalisation strategy in 2015, which saw the setting up of a London office by its unit subsidiary Khazanah Europe Investment Ltd. The London office is Khazanah’s fifth regional office after Beijing, Mumbai, San Francisco and Istanbul………………………………………..Full Article: Source

Sovereign Wealth Funds Spent Less in 2015

Posted on 12 January 2016 by VRS  |  Email |Print

The total direct transaction amount in 2015 by sovereign funds is US$ 114 billion compared to US$ 122 billion in 2014. However, when calculating all public investors, which includes large public pensions, direct transactions total US$ 211 billion in 2015 versus US$ 186 billion in 2014.
Leading the charge for asset-rich pensions were Canadian institutional investors such as Canada Pension Plan Investment Board (CPPIB), Ontario Teachers’ Pension Plan (OTPP) and Caisse de dépôt et placement du Québec (CDPQ)………………………………………..Full Article: Source

Sovereign wealth fund deals fall 13 pct in fourth quarter

Posted on 11 January 2016 by VRS  |  Email |Print

Sovereign wealth funds made $23.5 billion worth of overseas acquisitions in the fourth quarter of 2015, down 13 percent from the third quarter, although big infrastructure and property deals remained popular.
Thomson Reuters data showed that sovereign wealth funds (SWFs), which invest windfall revenues from oil and other commodities for future generations, were involved in 25 deals during the October-December period, down six from the previous quarter. Over the full year, SWFs invested in 127 transactions, down from 148 in 2014. The total value of 2015’s deals amounted to $68.7 billion, down 6.9 percent from $73.8 billion in 2014………………………………………..Full Article: Source

Top 10 Sovereign Wealth Fund Game-Changers of 2015

Posted on 05 January 2016 by VRS  |  Email |Print

For sovereign funds regarding the falling price of oil, it is worth recalling Friedrich Nietzsche’s aphorism: “That which does not kill us makes us stronger.” Sovereign funds in the Gulf have increased exercising discipline from the sizable allocations of 2009 and 2010. SWFI research staff have composed the top ten game-changers for sovereign wealth funds in 2015.
10.) Smart Beta Lives: Many active investment managers despise the term “smart beta.” According to Investopedia.com, smart beta was the most searched for term in its dictionary in 2015. Google searches for smart beta continue to grow. Wealth funds continue to tinker with smart beta strategies. Some sovereign funds and pensions even partner with providers to back new product launches………………………………………..Full Article: Source

SOFAZ reveals volume of revenues for entire period of its activity

Posted on 04 January 2016 by VRS  |  Email |Print

The revenues of the State Oil Fund of Azerbaijan (SOFAZ) for the entire period of its activity totaled $124.9 billion, SOFAZ told Trend Dec.29. The State Oil Fund was created in 1999 and its assets were equal to $271 million that time. The total expenditures of SOFAZ for the entire period of its activity amounted to $86.3 billion, including transfers to the state budget - $78.4 billion.
“At the same time, for the whole period the extra-budgetary expenditures of the fund due to the difference in the exchange rate of the currencies in the investment portfolio of SOFAZ, amounted to about $5 billion,” said the fund………………………………………..Full Article: Source

‘Politicised’ SWFs earn lower returns

Posted on 30 December 2015 by VRS  |  Email |Print

Sovereign wealth funds that are “highly politicised” earn lower returns on their stock-market investments than more independent peers, according to new academic research. An analysis of more than 1,000 sovereign wealth fund investments in publicly traded companies found that shares in those companies rose less following a purchase by a sovereign wealth fund compared with almost 6,000 comparable stock purchases by private investors.
The so-called SWF discount was worse when funds with strict government oversight bought shares. There was no discount when Norway’s independently managed sovereign wealth fund bought shares, according to Veljko Fotak of the University at Buffalo, who wrote the report with Bernardo Bortolotti of Turin University in Italy and William Megginson of the University of Oklahoma………………………………………..Full Article: Source

‘Politicized’ Sovereign Funds Earn Lower Returns, Study Says

Posted on 28 December 2015 by VRS  |  Email |Print

Sovereign-wealth funds that are “highly politicized” earn lower returns on their stock-market investments than more independent peers, according to new academic research. An analysis of more than 1,000 sovereign-wealth fund investments in publicly traded companies found that shares in those companies rose less following a purchase by a sovereign-wealth fund compared with almost 6,000 comparable stock purchases by private investors.
The so-called SWF discount was worse when funds with strict government oversight bought shares. There was no discount when Norway’s independently managed sovereign-wealth fund bought shares, according to Veljko Fotak of the University at Buffalo……………………………………….Full Article: Source

HKMA long-term growth portfolio yields 13.5% as of end-2014

Posted on 16 December 2015 by VRS  |  Email |Print

Hong Kong Monetary Authority‘s Long-term Growth Portfolio (LTGP) has yielded an internal return ratio of 13.5 percent as of the end of last year since its inception about seven years ago, a senior official said. Eddie Yue, deputy chief executive of HKMA, said in an article published on the monetary authority’s website that the LTGP’s investment mandates are in line with the goals set forth for the government’s Future Fund.
The government had earlier decided to establish a long-term Future Fund with half of the Land Fund to be entrusted in the LTGP. The portion will be worth about HK$100 billion as part of the larger Land Fund that amounts to over HK$200 billion………………………………………..Full Article: Source

Sovereign Wealth Funds Grow Assets in 2015

Posted on 14 December 2015 by VRS  |  Email |Print

In line with the release of the 2015 Preqin Sovereign Wealth Fund Review in April 2015, we found that AUM for sovereign wealth funds globally reached $6.31tn as at March 2015 – increasing by more than $900bn in 18 months. This is despite falling commodity and oil prices, which many of these institutions rely on for funding. Assets therefore grew from continued funding from reserves and governments, as well as from investment returns.
Alternative assets are an increasingly important part of these institutions’ portfolios, particularly as they seek to diversify their portfolios and acquire assets that can generate yield and help meet their long-term objectives. As at December 2015, total assets for sovereign wealth funds that are looking to invest in private equity stands at $6.0tn………………………………………..Full Article: Source

Saudi Arabia, UAE sovereign funds rank among world’s largest: SWFI

Posted on 11 December 2015 by VRS  |  Email |Print

Saudi Arabia and the United Arab Emirates’ sovereign wealth funds— at $668.6 billion and $773 billion, respectively— ranked as the Middle East’s largest in December 2015, according to a report issued by the Sovereign Wealth Fund Institute (SWFI).
The asset value of the kingdom’s SWF dropped by about $3.2 billion q-o-q since the institute’s last quarterly report. It ranked as the world’s fourth largest, just behind China. Meanwhile, the Abu Dhabi Investment Authority (ADIA) ranked second on the list after Norway. The Kuwait Investment Authority (KIA) claimed the fifth spot with assets worth $592 billion, while the Qatar Investment Authority (QIA) placed ninth at $256 billion………………………………………..Full Article: Source

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