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Sovereign Wealth Funds Briefing - Category | Performance more

Singapore’s Sovereign-Wealth Fund Sees Lower Returns Ahead

Posted on 28 July 2016 by VRS  |  Email |Print

Singapore’s over $300 billion sovereign-wealth fund sees no end in sight for the era of low returns as anemic interest rates and sluggish growth weighed on one of the world’s biggest state funds.
“These difficult investment conditions can stretch for the next 10 years,” said Lim Chow Kiat, GIC Pte. Ltd.’s chief investment officer. The sovereign-wealth fund, charged with managing the country’s foreign-exchange reserves, said in its annual report that it earned a 3.7% annualized nominal rate of return over the past five years through the end of March. That compares with a 6.5% return for the five years through the end of March 2015………………………………………..Full Article: Source

Singapore wealth fund’s performance falls to three-year low

Posted on 28 July 2016 by VRS  |  Email |Print

Low interest rates, high asset valuation and political instability were expected to bring down returns for the foreseeable future, Singapore’s GIC said on Thursday as the sovereign wealth fund’s performance fell to a three-year low.
The investment group’s rolling annualised 20-year rate of return fell to 4 per cent for the year ending March 31, GIC said in its annual results. It recorded 4.9 per cent last year, the strongest results in a decade. The group does not publish single-year results and uses the 20-year annualised rate as its benchmark for performance………………………………………..Full Article: Source

GIC Warns of Muted Market Returns as Fund Performance Declines

Posted on 28 July 2016 by VRS  |  Email |Print

GIC Pte, which manages Singapore’s foreign reserves, said its key performance measure declined and warned that record-low interest rates will weigh on investment returns in the coming decade.
The sovereign wealth fund’s real rate of return fell to 4 percent in the 20-year period to March 31, from 4.9 percent in the period ended March 2015, as global stock markets posted lackluster performance and bond returns tumbled, according to GIC’s annual report Thursday. GIC doesn’t disclose annual performance figures………………………………………..Full Article: Source

CIC’s 2015 returns upset by volatile market environment

Posted on 26 July 2016 by VRS  |  Email |Print

The China Investment Corporation (CIC) saw its returns plunging into the red last year amid the dismal global economic environment. In 2015, the net annual return of its overseas investments succumbed to a loss of 2.96%, against a net gain of 5.47% in 2014.
The CIC’s latest annual report states that global stocks, commodity prices and non-US dollar currencies tumbled, introducing significant risks and challenges to its global investments. Due to volatility in international financial markets and foreign-exchange losses triggered by an appreciating US dollar, the CIC’s overseas investments generated a dollar-denominated net return of -2.96% in 2015, and a net cumulative annualised return of 4.58% since its inception in 2007………………………………………..Full Article: Source

China’s top sovereign wealth fund quadruples in total assets in 8 years

Posted on 25 July 2016 by VRS  |  Email |Print

A report says China’s investment fund industry will continue expanding. The total assets of the top sovereign wealth fund in China have quadrupled in eight years since its founding, according to the 2015 annual report released by the China Investment Corporation.
The CIC’s total assets had grown to over $810 billion during the 8-year period, from $200 billion of registered capital in 2007. The company’s spokewoman Liu Fangyu says they have ramped up investment in assets that generate stable returns, and will further expand investment in this sector in this year………………………………………..Full Article: Source

Fund return hit by commodities, strong dollar

Posted on 25 July 2016 by VRS  |  Email |Print

China Investment Corporation announced on Friday that its overseas investments generated a net return of negative 2.96 percent in dollar terms in 2015, falling from a positive 5.47 percent return for 2014, due to volatilities in international financial markets and foreign exchange losses triggered by an appreciating dollar.
The $814 billion Chinese sovereign wealth fund posted a net cumulative annualized return of 4.58 percent since its establishment in September 2007, compared with 5.66 percent in 2014………………………………………..Full Article: Source

China’s sovereign wealth fund books negative return

Posted on 25 July 2016 by VRS  |  Email |Print

China’s sovereign-wealth fund reported a nearly 3 per cent drop in returns for 2015, citing the sluggish global recovery and volatile financial markets as reasons that led to a challenging year.
China Investment had a negative 2.96 per cent return on its investment overseas, according to a statement on its website Friday. That reversed a 5.47 per cent return in 2014. Since its inception in September 2007, the fund has had an annualised return rate of 4.58 per cent, CIC said………………………………………..Full Article: Source

China sovereign wealth fund CIC profit drops 17%

Posted on 25 July 2016 by VRS  |  Email |Print

China’s sovereign wealth fund China Investment Corp (CIC) reported a 17 per cent decline in net profit last year, its lowest profit since 2011, hit by negative returns on overseas investments and huge foreign exchange losses, it said on Friday.
Net profit was US$73.9 billion in 2015, down from US$89.1 billion a year earlier, the fund said in the annual report posted on its website. CIC’s return on overseas investments declined to a negative 2.96 per cent last year, compared with a positive 5.47 per cent return in 2014………………………………………..Full Article: Source

China Sovereign Fund Has Loss on Commodities, Negative Rates

Posted on 25 July 2016 by VRS  |  Email |Print

China’s $813.8 billion sovereign wealth fund posted its first loss on overseas investments in four years last year as commodity prices sunk, while stock and bond returns were damped by negative interest rates and a strong U.S. dollar.
China Investment Corp. had a loss of 2.96 percent in the year ended December, compared with a 5.47 percent gain a year earlier, according to the Beijing-based company’s 2015 annual report released Friday. Net income at the fund, which holds government stakes in China’s biggest banks, fell 17 percent to $73.9 billion, the report showed………………………………………..Full Article: Source

China sovereign fund CIC records first loss on overseas investments in 4 years

Posted on 25 July 2016 by VRS  |  Email |Print

China’s $813.8 billion sovereign wealth fund posted its first loss on overseas investments in four years last year as commodity prices sunk, while stock and bond returns were damped by negative interest rates and a strong U.S. dollar.
China Investment Corp. had a loss of 2.96 percent in the year ended December, compared with a 5.47 percent gain a year earlier, according to the Beijing-based company’s 2015 annual report released Friday. Net income at the fund, which holds government stakes in China’s biggest banks, fell 17 percent to $73.9 billion, the report showed………………………………………..Full Article: Source

Abu Dhabi Investment Authority’s real rate of return stays steady

Posted on 25 July 2016 by VRS  |  Email |Print

Despite volatile conditions that saw equity markets end 2015 little changed from where they began, the Abu Dhabi Investment Authority, or Adia, recorded a creditable performance from an overall portfolio perspective, the world’s leading sovereign wealth fund said.
In its 2015 annual review, Adia said its 20-year annualised rates of return fell to 6.5 per cent in 2015 from 7.4 per cent the year before. The fund’s 30-year rate of return slipped to 7.5 per cent from 8.4 per cent. “This was primarily as a result of strong returns from the mid-1980s and 1990s falling out of the rolling averages over the periods in question.”……………………………………….Full Article: Source

Abu Dhabi Investment Authority’s real rate of return stays steady

Posted on 22 July 2016 by VRS  |  Email |Print

Despite volatile conditions that saw equity markets end 2015 little changed from where they began, the Abu Dhabi Investment Authority, or Adia, recorded a creditable performance from an overall portfolio perspective, the world’s leading sovereign wealth fund said.
In its 2015 annual review, Adia said its 20-year annualised rates of return fell to 6.5 per cent in 2015 from 7.4 per cent the year before. The fund’s 30-year rate of return slipped to 7.5 per cent from 8.4 per cent. “This was primarily as a result of strong returns from the mid-1980s and 1990s falling out of the rolling averages over the periods in question.”……………………………………….Full Article: Source

Norway’s sovereign wealth fund has made a killing from Pokémon Go

Posted on 21 July 2016 by VRS  |  Email |Print

Norwegian’s should be happy about the arrival of Pokémon Go - not only because they seem to be the most active players of the game in the Nordics. The Norwegian sovereign wealth fund, the largest of its kind in the world, has made big bucks from the Pokémon Go hype.
Even with Nintendo stock declining 12% today, at the time of writing, after having doubled since the release of the augmented reality mobile game, the sovereign wealth fund has made Norwegian’s over $100 million, reports E24………………………………………..Full Article: Source

Azeri state oil fund’s assets up 4.6 pct in H1 to $35.1 bln by July 1

Posted on 19 July 2016 by VRS  |  Email |Print

The assets of Azeri state oil fund SOFAZ grew by 4.6 percent to $35.1 billion in the first six months of this year, the fund said on Monday. SOFAZ holds proceeds from oil contracts, oil and gas sales, transit fees and other revenue. It uses income from investments to pay for social spending and infrastructure projects.
SOFAZ revenues reached 3.99 billion manats ($2.6 billion) in the first half of 2016, while its expenditures totalled 2.26 billion manats, the fund said in a statement. SOFAZ assets dropped by 9.5 percent year-on-year in 2015 to $33.57 billion………………………………………..Full Article: Source

SOFAZ’s revenues hit 4B manats in Q2 2016

Posted on 19 July 2016 by VRS  |  Email |Print

Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-June, 2016 reached 3,991.0 million manat, while budget expenditures constituted 2,256.7 million manat, said a statement from SOFAZ July 18.
Revenue of 3,689.5 million manat was received from implementation of oil and gas agreements, including 3,680.6 million manat from the sale of profit oil and gas, 0.1 million manat as bonus payments and 8.8 million manat as transit payments………………………………………..Full Article: Source

Azerbaijan’s SOFAZ makes almost $120B from largest oil project

Posted on 18 July 2016 by VRS  |  Email |Print

Revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project for development of the Azeri-Chirag-Gunashli (ACG) block of fields totaled $119.314 billion from early 2001 to July 1, 2016, SOFAZ told Trend.
SOFAZ said its revenues from the project totaled $2.305 billion in H1 2016; out of this, $504 million accounted for June. A contract for development of ACG block of oil and gas fields was signed in 1994. The proven oil reserves of the block near one billion tons………………………………………..Full Article: Source

The world’s top ten biggest sovereign wealth funds

Posted on 15 July 2016 by VRS  |  Email |Print

In the midst of collapsing oil prices, oil-funded sovereign wealth funds (SWFs) are under pressure to liquidate assets, according to political risk advisory firm GeoEconomica. There was roughly a 20 per cent fall over the past year in the deposits and reserves stored in the Saudi Arabian Monetary Agency (SAMA) by the Saudi government, according to estimates. This suggests that oil giants such as Saudi Arabia are now seeking to protect their budgets against dramatically declining revenues.
SWFs are managed separately from a county’s official currency reserves. They are pools of money the government stores in funds or corporations to generate profits. The funds have an original purpose of reducing the volatility of government revenues and help counter any drops in the national economy………………………………………..Full Article: Source

The world’s 10 biggest sovereign wealth funds

Posted on 14 July 2016 by VRS  |  Email |Print

In the midst of collapsing oil prices, oil-funded sovereign wealth funds (SWFs) are under pressure to liquidate assets, according to political risk advisory firm GeoEconomica. There was roughly a 20 per cent fall over the past year in the deposits and reserves stored in the Saudi Arabian Monetary Agency (SAMA) by the Saudi government, according to estimates.
This suggests that oil giants such as Saudi Arabia are now seeking to protect their budgets against dramatically declining revenues. SWFs are managed separately from a county’s official currency reserves. They are pools of money the government stores in funds or corporations to generate profits………………………………………..Full Article: Source

Sovereign wealth funds’ India holdings at a record high

Posted on 12 July 2016 by VRS  |  Email |Print

Sovereign wealth funds held Rs2.18 trillion in Indian equities and Rs330.16 billion worth of Indian debt in May. Anybody who thought that sovereign funds are on their way out may be in for a surprise.
An analysis of foreign portfolio investor (FPI) data by investor category shows that their holdings in Indian debt and equity securities has hit a new high. These funds from oil-rich countries were expected to be sellers in Indian markets because of the correction in crude and the resultant stress back home………………………………………..Full Article: Source

Rough ride for Temasek too

Posted on 11 July 2016 by VRS  |  Email |Print

Investors everywhere have been in for a rough ride since last year, and Temasek Holdings is no exception. The Singapore investment company has suffered its first portfolio decline since the 2009 global financial crisis, pointing to more tough times ahead.
The firm’s net portfolio value fell to $242 billion for the financial year ended March 31, down from $266 billion a year ago. The decline was not surprising - about three-fifths of Temasek’s holdings are tied up in listed assets, which means weak stock markets around the world were a significant drag………………………………………..Full Article: Source

Temasek returns -9% in FY2016 - its worst showing since 2009

Posted on 08 July 2016 by VRS  |  Email |Print

Temasek continues to increase investments in technology-leveraged companies, as weakness in its listed investments, particularly its more traditional holdings in China and financial services, dragged the Singapore government-owned investment company to its first one-year negative return since 2009.
Its net portfolio value shrank by 9.02 per cent to S$242 billion in 2016. Over a three-year period, Temasek’s total shareholder return was 3.25 per cent in Singapore-dollar terms; over a 20-year period, total shareholder return was 6 per cent………………………………………..Full Article: Source

Singapore’s Temasek mulls over US deals to offset drop in portfolio performance

Posted on 08 July 2016 by VRS  |  Email |Print

Singapore’s sovereign wealth fund Temasek Holdings (Temasek) is eyeing US deals and co-investments with private equity partners to offset what is expected to be the first annual decline in the value of its assets in seven years, according to Reuters.
Temasek, which holds a 16% stake – and is the biggest shareholder – in London-based Standard Chartered, has seen the value of its stakes depressed by 55% over the past financial year, aggravated partly by the Brexit effect. Meanwhile, its Asian investments have been hit by the effects of China’s economic slowdown………………………………………..Full Article: Source

Temasek Assets Likely Fell First Time Since 2008 on China Rout

Posted on 07 July 2016 by VRS  |  Email |Print

Temasek Holdings Pte’s portfolio probably declined for the first time in seven years as stock markets plunged amid a slowing Chinese economy and uncertainty over U.S. Federal Reserve policy.
The value of the Singapore state investment firm’s holdings decreased by 13 percent to S$231 billion ($170.6 billion) in its fiscal year ended March 31, according to an estimate by CIMB Private Banking. That would be the first decline since the 12 months ended March 2009. Temasek’s assets rose to a record S$266 billion in the prior fiscal year………………………………………..Full Article: Source

Saudi Arabia, Abu Dhabi among largest sovereign wealth funds

Posted on 07 July 2016 by VRS  |  Email |Print

Saudi Arabia’s SAMA Foreign Holdings fund was ranked fourth in the list of the world’s largest sovereign wealth funds, despite its assets falling by $33.9 billion to $598.4 billion by the end of Q2-2016, the Sovereign Wealth Fund Institute (SWFI) said in its monthly report for June.
The kingdom’s Public Investment Fund (PIF) maintained its position as the 13th largest sovereign wealth fund with assets amounting to $160 billion in the same period. Meanwhile, the Abu Dhabi Investment Authority (ADIA) remained second on the list, with assets growing by $19 billion to $792 billion………………………………………..Full Article: Source

Temasek Holdings could see drop in net portfolio value

Posted on 05 July 2016 by VRS  |  Email |Print

Temasek Holdings could report a decline in its net portfolio value for the first time since 2009, following a roller-coaster year in the global economy and financial markets. The Singapore investment company is expected to unveil its performance this week for the financial year ended March 31.
Analysts say Temasek’s exposure to China, as well as the financial service sector, likely left its portfolio battered by significant headwinds over the year, and also leaves it hard-pressed to replicate its strong performance in previous years………………………………………..Full Article: Source

Temasek Holdings could see drop in net portfolio value

Posted on 04 July 2016 by VRS  |  Email |Print

Temasek Holdings could report a decline in its net portfolio value for the first time since 2009, following a roller-coaster year in the global economy and financial markets. The Singapore investment company is expected to unveil its performance this week for the financial year ended March 31.
Analysts say Temasek’s exposure to China, as well as the financial service sector, likely left its portfolio battered by significant headwinds over the year, and also leaves it hard-pressed to replicate its strong performance in previous years………………………………………..Full Article: Source

SOFAZ reveals revenues from profit oil, gas sales

Posted on 04 July 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) received revenues worth $7.23 billion in 2015 from the sale of profit oil and gas produced within the framework of PSA (production sharing agreement) contracts on onshore and offshore fields of the country, according to a report on the fund’s activity in 2015.
At the same time in 2015, the weighted average price of profit oil exported amounted to $54.31 per barrel, and the net price was $48.06 per barrel. According to the report, some $6.86 billion accounted for the Azeri-Chirag-Guneshli (ACG) block of fields, which amounts to 94.9 percent of revenues from the sale of profit oil in 2015………………………………………..Full Article: Source

IPIC posts 2015 net loss, records $3.5 bln provision for 1MDB guarantees

Posted on 01 July 2016 by VRS  |  Email |Print

2015 net loss for the year was $2.6 billion compared to a profit of $1.5 billion in 2014. Says revenue for 2015 fell by 30 pct compared to 2014 to reach $35.8 billion. Says profit after-tax before impairment losses was us $3.3 billion in 2015 compared to $2.3 billion in 2014.
Due to declining crude oil price, asset valuation in exploration & production segments were negatively impacted; record pre-tax impairment losses of $5.2 billion on its oil & gas assets……………………………………….Full Article: Source

Investment Corporation of Dubai posts annual net profit of AED27.5bn

Posted on 01 July 2016 by VRS  |  Email |Print

The Investment Corporation of Dubai (ICD), the sovereign wealth fund owned by the government of Dubai, has recorded a 12.8 per cent rise in its full-year profit from continuing operations for 2015 to reach AED25.2 billion, the fund said on Tuesday. This compares with a profit of AED22.3bn seen in the previous year.
The corporation has stakes in more than two dozen Dubai-based companies across various industries, including Emirates Airlines, Emirates National Oil Company (ENOC), Emirates NBD and Emaar Properties………………………………………..Full Article: Source

SOFAZ declares amount of revenues from two devaluations

Posted on 01 July 2016 by VRS  |  Email |Print

State Oil Fund of Azerbaijan earned AZN 23,217,800,000 from increase of value of currency and assets. This includes AZN 22,501,000,000 from rise of exchange rates of USD, EUR, GBP and other currencies and AZN 716.8 million from increase of gold portfolio due to reassessment of foreign currency and assets.
Moreover, SOFAZ’s extra budgetary expenses from difference of exchange rates of currencies and price of gold amounted to AZN 1,998,200,000………………………………………..Full Article: Source

SOFAZ earns AZN 91M from rental property

Posted on 01 July 2016 by VRS  |  Email |Print

State Oil Fund of Azerbaijan has made public amount of the incomes from rental properties in 2015. APA-Economics reports the Fund has earned AZN 19,896,204 or £9,648,048 from rental office located in 18 Saint James str., London.
Moreover, SOFAZ earned €5,860,400 or AZN 10,015,423 from rental property in n° 8, place Vendôme Paris, KRW 31,071,645,406 or AZN 41,542,790 from office complex in Pine Avenue Tower A in Seoul, South Korea………………………………………..Full Article: Source

SOFAZ unveils its profit oil and gas revenues

Posted on 01 July 2016 by VRS  |  Email |Print

The sale of Azeri-Chirag-Guneshli oil constituted 94.9% of all revenues. Last year the average estimated sale price of exported profit oil made $54.31, while the net profit price was on the level of $48.06.
According to Oxu.Az, the due figures are contained in the report on the State Oil Fund’s activity in 2015. In line with the Production Sharing Agreements on development of onshore and offshore fields in Azerbaijan, SOFAZ revenues from profit oil and gas amounted to $7,229,100,000 or AZN 7,369,600,000………………………………………..Full Article: Source

Sovereign wealth & buyout funds step up in June quarter

Posted on 01 July 2016 by VRS  |  Email |Print

Private equity (PE) entities invested $3,602 million across 129 deals during the quarter ended June, as against $4,278 mn across 169 transactions in the same period last year, about 16% less. According to Venture Intelligence, the investment was 7% lower than the immediate previous quarter ($3,890 mn across 169 transactions).
Singalore’s sovereign wealth fund, GIC, and Abu Dhabi’s ADIA and Malaysia’s Khazanah participated in mega investments. As with the renewable power-focused Greenko Group (that raised $230 mn from ADIA and GIC) and analytics BPO firm Fractal Analytics ($100 mn from Khazanah). Canada-based Fairfax Group committed $300 mn to chemicals manufacturer Sanmar Group (on the heels of its $321 mn bet in Bangalore International Airport, announced in March)………………………………………..Full Article: Source

Azerbaijan’s Oil Fund exits from losses of previous periods

Posted on 30 June 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has achieved the net profit in 2015. The PwC-audited report on SOFAZ activity for 2015 says that in 2015 SOFAZ net profit amounted to AZN 23.59 million against a loss of AZN 1.212 bn in 2014.
According to the auditor, SOFAZ operating income for the past year totaled AZN 23.619 million against operating loss of AZN 1.166 bn a year earlier. The main part bulk of income was received from exchange rate difference for almost AZN 22.46 million………………………………………..Full Article: Source

Putin praises Russian SWF

Posted on 17 June 2016 by VRS  |  Email |Print

Russian President Vladimir Putin praised the Russian Direct Investment Fund for what has been achieved so far and stressed the importance of its cooperation with other countries, including the UAE, Saudi Arabia, and Qatar which shows their trust not only in the fund, but in Russia on the whole. “Over this time [five years], the fund has made significant progress. It has raised more than 760 billion rubles [over $11.5 billion] for the Russian economy.”
The fund has recently received the status of a sovereign wealth fund, which provides it with a wider set of financial instruments and “will give it a more independent and stable character,” Putin said, also stressing that the initiative is set to attract investment to Russia………………………………………..Full Article: Source

Sovereign wealth funds stay confident as returns slide

Posted on 14 June 2016 by VRS  |  Email |Print

Despite the volatility of global financial markets this year and a steady decline in investment returns, confidence among the world’s sovereign wealth funds remains high, a survey by Invesco has found.
New investment is also holding up, according to Invesco’s fourth annual study into global sovereign asset management which covers funds with over $8trn of assets (£5.6trn, €7.1trn). The survey found that for the sovereign investors interviewed by Invesco, the average actual 2015 annual portfolio returns fell to 4.1% from an average of 6.6% over the past five years………………………………………..Full Article: Source

SWF acquisitions rise 62 percent, highest level since 2008

Posted on 13 June 2016 by VRS  |  Email |Print

The value of acquisitions involving sovereign wealth funds has risen 62 percent to $28.6 billion in the year to date, the highest level since 2008, Thomson Reuters data showed on Friday. The Qatar Investment Authority (QIA), a sovereign wealth fund, this week agreed to buy a 43-story Singapore office tower for $2.5 billion from the world’s largest asset manager Blackrock, adding to a flurry of mergers and acquisitions (M&A) by sovereign wealth funds.
Industrials, financials and real estate account for nearly 80 percent of year-to-date sovereign wealth fund M&A activity, up from 33 percent a year ago, the data showed………………………………………..Full Article: Source

Azerbaijan’s Oil Fund got almost $1.87 bn from sale of profit hydrocarbons for Jan-May

Posted on 09 June 2016 by VRS  |  Email |Print

Over Jan-May 2016 the State Oil Fund of Azerbaijan (SOFAZ) received $1.865 million from the sale of profit oil from oilfield block of Azeri-Chirag-Gunashli (ACG) and gas from Shah Deniz field.
SOFAZ reports that out of this amount, $1.8 bn accounted for export of profit oil from ACG and $64 million for sale of profit gas from Shah-Deniz. “According to estimates, SOFAZ received totally $118.869 bn from the sale of profit oil of Azerbaijan from ACG from 2001 to 1 June 2016 and about $2.506 bn from export of gas from Shah Deniz field from 2007 and before 1 June 2016,” the Fund said………………………………………..Full Article: Source

World’s biggest wealth fund faces dividend hit after oil slump

Posted on 06 June 2016 by VRS  |  Email |Print

Norway’s first-ever withdrawal from its $860 billion sovereign wealth fund may be bigger than planned. Here’s why: The government has yet to account for a potential decline in payouts from Statoil ASA, of which it owns 67 percent. The oil producer has introduced a scrip dividend, allowing investors to take stock in-lieu of cash.
Norway has committed to keeping its stake intact and will have to accept shares in the same proportion as other owners, meaning its cash payout will be reduced. This possibility wasn’t apparent in Norway’s revised budget published last month, with the government estimating an unchanged income inflow this year of 15.4 billion kroner ($1.9 billion)………………………………………..Full Article: Source

Oil Fund celebrates its first 20 years

Posted on 01 June 2016 by VRS  |  Email |Print

Øystein Olsen has a lot to celebrate this week. He beat out all competition to keep his job as Norway’s central bank chief for another six years, and then could celebrate the 20th anniversary on Tuesday of arguably the bank’s most important operation that’s made Norway a financial powerhouse worldwide.
It was on May 31, 1996 that Norway’s Finance Ministry made its first deposit of money from oil revenues into the country’s newest state pension fund that immediately became known as the Oil Fund. The idea was to invest oil revenues in international stock markets and thereby stash away the vast majority of the country’s oil wealth for the benefit of future generations………………………………………..Full Article: Source

Oil slump blamed for falloff in assets

Posted on 31 May 2016 by VRS  |  Email |Print

The decline in oil prices had a trickle-down effect on money managers that run assets for sovereign wealth funds in 2015. Total assets managed for sovereign wealth funds by money managers in Pensions & Investments’ universe were $1.04 trillion as of Dec. 31, down 13.7% from 12 months earlier.
In fact, every manager among the top 10 ranked by sovereign wealth fund assets under management recorded declines in those assets during 2015. State Street Global Advisors had the most sovereign wealth fund assets under management in 2015, at $103.4 billion, but still saw assets fall 8.8% from 2014. BlackRock (BLK) Inc. (BLK) was second in 2015, with $79.7 billion, down 14.4% from a year earlier………………………………………..Full Article: Source

Permanent Fund narrows losses in 3Q

Posted on 27 May 2016 by VRS  |  Email |Print

The Alaska Permanent Fund’s investment returns rose in the third quarter of fiscal year 2016 ended March 31, though performance is still down year-to-date. Due in part to the U.S. dollar’s strength impacting international investments, the Alaska Permanent Fund came in relatively flat in the third quarter of fiscal year 2016 at 1.2 percent compared to the performance benchmark of 2.3 percent.
Year-to-date, the Permanent Fund was down 0.9 percent as of March 31 at a total value of $52.5 billion, about $331 million less than the end of the 2015 fiscal year last June 30………………………………………..Full Article: Source

SOFAZ revenues amount to $126 billion

Posted on 26 May 2016 by VRS  |  Email |Print

Revenues of the State Oil Fund of Azerbaijan (SOFAZ) amounted to $126.2 billion during the entire period of its activity. The remark was made by Ziya Kangarli, chief investment advisor at SOFAZ during the Forum on “Decrease in oil prices and economic reforms: Challenges and Opportunities” which was held at Khazar University on May 24.
Kangarli noted that revenues of the SOFAZ are generated by two sources: directly by the revenues from sale of oil and by asset management. The spending totaled about $92 billion during the lifetime of the fund, said Kangarli, adding that it covers operating costs, which share is minimal, project financing and transfers to the state budget………………………………………..Full Article: Source

Bahrain’s Mumtalakat records $487m gross profit

Posted on 24 May 2016 by VRS  |  Email |Print

Mumtalakat, the investment arm of Bahrain, announced a gross profit of $487.2m (BHD183.2) for the year ending 31 December, 2015. The figure is 1.1% higher than 2014 profits of $481.6m (BHD181.m).
However, the company’s net profit reduced by 68.7% to $76.3m (BHD28.7m) in 2015, against 2014’s $243.6m (BHD91.6m). Mumtalakat said the reduction in net profit was due to “impairment losses recognised on goodwill”, but did not elaborate on this. The holding company’s operating income increased to $330.9m (BHD14.4m) on the back of an improved performance by national carrier, Gulf Air. Consolidated revenues for 2015 were $3.1bn (BHD1.2bn)………………………………………..Full Article: Source

Hong Kong’s Exchange Fund reports investment gains of HK$24.1b in sharp turnaround

Posted on 24 May 2016 by VRS  |  Email |Print

The Exchange Fund, Hong Kong’s reserve fund to defend its currency, reported an investment income of HK$24.1 billion for the first quarter of this year as strong gains in bonds and foreign exchange holdings offset losses in its stocks investment, according to the Hong Kong Monetary Authority (HKMA).
The first-quarter investment income was a turnaround from the investment losses of HK$15.8 billion for the whole of last year – its second-worst performance ever and its first loss since the global financial crisis in 2008 – as heavy foreign-exchange losses and poor returns from equity investments took their toll. It also marks a 190 per cent advance from the HK$8.3 billion investment income in the first quarter of last year………………………………………..Full Article: Source

Bahrain sovereign fund Mumtalakat 2015 net profit drops 68.7 pct

Posted on 23 May 2016 by VRS  |  Email |Print

Bahraini sovereign fund Mumtalakat posted a 68.7 percent drop in 2015 net profit on Sunday, as the state-owned investor cited impairment losses for the decline. Net profit in 2015 was $76.3 million against $243.6 million in the previous year, Mumtalakat said in a statement.
Mumtalakat said the reduction in net profit was due to “impairment losses recognised on goodwill” without elaborating. It noted though that the impact was partially offset by a higher contribution from its share of profit from associates and improved operational performance at Gulf Air………………………………………..Full Article: Source

Sovereign Wealth Fund hits N358b

Posted on 19 May 2016 by VRS  |  Email |Print

The Nigerian Sovereign Investment Authority (NSIA), which manages Nigeria’s sovereign wealth fund, has a total assets of about $1.8 billion (about N358 billion at current official exchange rate) under its management. Its Managing Director, Mr. Uche Orji, during a visit to the Nigerian Stock Exchange (NSE) yesterday in Lagos, gave the breakdown of the assets to include seed capital of $1.25 billion and third party funds of about $550 million.
Orji said the NSIA is shifting its focus from foreign investments to domestic investments, noting that the company led other investors in recent investments in a dairy farm and tomato paste firm in the Northern part of the country………………………………………..Full Article: Source

Alaska Permanent Fund gains 1.2% in quarter, but lags benchmark

Posted on 18 May 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 1.2% in the quarter ended March 31, trailing its performance benchmark return of 2.3%, said a spokeswoman for the $52.5 billion sovereign wealth fund in an e-mail.
Top-performing asset classes for the quarter included non-domestic fixed income, which returned 5.2%; private equity, 4.2%; domestic fixed income, 3.2%; and real estate, 2.1%………………………………………..Full Article: Source

Malaysia Q1 GDP beats expectations

Posted on 16 May 2016 by VRS  |  Email |Print

Malaysia’s economy grew faster than expected in the first quarter of 2016 even as tensions over its sovereign wealth fund and the prime minister’s role in alleged misappropriation of state spending escalated.Global attention has been keenly focused of late on the finances of Malaysia’s state investment fund, 1MDB, which is now the target of several international probes into allegations of the misappropriation of billions of dollars.
In early April the entire board of 1MDB offered to resign following a report. Later that month the fund announced it had failed to make an interest payment of $50m on 5.75 per cent bonds on a $1.75bn bond, which triggered cross defaults on two other notes totalling $1.9bn………………………………………..Full Article: Source

The Scourge of Negative Rates and Norway’s Shrinking Wealth Fund

Posted on 13 May 2016 by VRS  |  Email |Print

Norway’s massive wealth fund is projected to get smaller this year for the first time since early last decade. Budget documents on Wednesday showed the government expects the fund to shrink about 4 percent to 7.15 trillion kroner ($881 billion) at the end of 2016 after ending last year at 7.46 trillion kroner.
This historic projection comes as the fund is being bludgeoned on nearly all sides. Most pressing is probably that its returns from the 35 percent it must hold in bonds has all but evaporated amid negative yields across Europe………………………………………..Full Article: Source

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