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Sovereign Wealth Funds Briefing - Category | Performance more

Wealth fund banks on Belt and Road to drive growth

Posted on 31 July 2015 by VRS  |  Email |Print

Sovereign wealth fund China Investment Corp, which started its overseas direct investment operations on Monday through CIC Capital Corp, will be among the select group of financial institutions that will participate in the key projects associated with the Belt and Road Initiative.
A report from Caixin.com said that CIC Capital, which was established on January 20, might have got a $100 billion capital infusion from the Ministry of Finance through a bond issue. Neither the sovereign wealth fund manager nor the Ministry of Finance provided further information on Wednesday………………………………………..Full Article: Source

Singapore GIC Reports Higher Return, Cautions on Market Outlook

Posted on 30 July 2015 by VRS  |  Email |Print

GIC Pte, manager of more than $100 billion of Singapore’s reserves, said its key performance measure improved but warned that higher global interest rates could dent future returns. Buoyant global markets helped GIC’s annualized real rate of return rise to 4.9 percent in the 20-year period to March 31, from 4.1 percent in the 20 years that ended in March 2014, according to the sovereign wealth fund’s annual report. GIC doesn’t issue annual performance figures.
GIC warned that global markets have already risen strongly and face possible headwinds as the U.S. Federal Reserve and other central banks start to unwind their low interest rate policies in the years ahead………………………………………..Full Article: Source

GIC posts 4.9% return in past 20 years; sees tougher times ahead

Posted on 30 July 2015 by VRS  |  Email |Print

The sovereign wealth fund says volatile markets could chip away at its returns in the next five to 10 years, and short-term losses are possible. GIC posted annualised real returns of 4.9 per cent in the past 20 years ending on March 31, 2015 - higher than 2014’s 20-year real return of 4.1 per cent.
The sovereign wealth fund has warned, however, that volatile markets could lower its returns for the next five to 10 years. In its 2014/15 annual report, GIC said the returns between April 1995 and March 2015 have been ahead of global inflation, which has averaged between 2 and 3 per cent………………………………………..Full Article: Source

SWF: Temasek rides China wave to near 20% return

Posted on 29 July 2015 by VRS  |  Email |Print

Temasek has always looked a little bit different to other sovereign wealth funds. There’s the fact that it’s pretty much all in equities, for a start, either listed or a pre-listing stake; or that 70% of its portfolio is in Asia, with less than a third in what most investors consider the developed world.
And now there’s the fact that it reported a 19.2% return in the year to March 31. That’s not very sovereign wealth fund behaviour at all: most such funds aim for a fraction above inflation, mitigating risk with painstakingly diversified portfolios, and are delighted if long-term numbers reach 7% or so. So, well done Temasek. But there might be a catch………………………………………..Full Article: Source

Sovereign, pension funds lose ground for nine months straight

Posted on 28 July 2015 by VRS  |  Email |Print

The latest pension and sovereign wealth fund data shows that they account for a lesser proportion of the overall foreign portfolio investor (FPI) holdings than they did in the previous month. This was also true for the previous month, and the month before that.
In fact, these long-term investors share of the overall investment pie has declined every month since September 2014. They now account for 14.43% of the total FPI holdings. Such funds typically invest for the long-term and are considered a stable source of capital, unlike hedge funds or other investors who quickly move in and out of markets for a profit………………………………………..Full Article: Source

Brazil sovereign fund earns $39 mln with Banco do Brasil share sale

Posted on 27 July 2015 by VRS  |  Email |Print

Brazil’s sovereign wealth fund earned about 134 million reais ($39 million) with the disposal of 5.625 million shares of state-controlled Banco do Brasil SA between the end of June and mid-July.
In a statement distributed late on Friday, the so-called Fundo Soberano do Brasil sold the shares at an average price of 23.84 reais each. Proceeds from the sale were all reinvested into a domestic asset portfolio, as per requested by the fund’s board of directors, the statement said………………………………………..Full Article: Source

SOFAZ announces H1 statement on revenue and expenditure

Posted on 24 July 2015 by VRS  |  Email |Print

Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-June, 2015 reached 4 054. 0 mln. manats, while budget expenditures constituted 4 042.1 mln. manats.
Revenue of 3 812.1 mln. manats was received from the implementation of oil and gas agreements, including 3 802.1 mln. manats from the sale of profit oil and gas, 5.7 mln. manats as transit payments, 2.1 mln. manats as bonus payments and 2.2 mln. manats as acreage fees. The revenues from managing assets of the Fund for January-June 2015 amounted to 241.9 mln. manats. The Fund’s extra-budgetary revenues related to the revaluation of foreign exchange totalled 8 013.4 mln. manats………………………………………..Full Article: Source

Assets of the State Oil Fund of Azerbaijan Republic fell by 3.6% to $35.8 bn in spite of budget surplus

Posted on 24 July 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan Republic (SOFAZ) has published data on its activities in the first half of 2015. According to the Fund, its assets as of July 1, 2015 have dropped by 3.56% compared to the beginning of 2015 (USD 37 104.1 mln.) and stood at USD 35,783.3 mln. “Decrease of assets since the beginning of the year is due to the revaluation of foreign exchange,” SOFAZ said.
Nevertheless, the Fund had his budget in surplus in the first half of the year. “Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-June, 2015 reached 4.054 bn manats, while budget expenditures constituted 4.042 bn. manats,” SOFAZ said………………………………………..Full Article: Source

Rwanda’s Sovereign Fund Muscle Growing Stronger

Posted on 22 July 2015 by VRS  |  Email |Print

Rwanda’s sovereign fund has received an extra Rwf25million as contribution from city of Kigali. The city Mayor Fidel Ndayisaba delivered the cheque to Rwanda’s Ministry of Finance and Economic Planning saying; “The contribution is not institutional; city council employees saw it vital to gather money to support this cause.”
The initiative is popularly known as Agaciro Development Fund established during the National Dialogue of 2011. President Paul Kagame identified Agaciro as a sure way to Rwanda’s self-reliance. It’s a way citizens contribute to their development and cutting dependence on Foreign Aid………………………………………..Full Article: Source

The world’s biggest sovereign wealth funds

Posted on 20 July 2015 by VRS  |  Email |Print

When it comes to sovereign wealth funds—state-owned investment vehicles—those countries that can afford to squirrel away surplus revenues do. As of March 2015, sovereign wealth funds around the world had amassed $7.1 trillion in assets under management, according to the Sovereign Wealth Fund Institute (SWFI), up from $3.4 trillion at the start of 2008.
Funds invest in a range of financial assets, from stocks and bonds to real estate and precious metals, but all have an objective to maximize the long-term return from their investments. Of total assets around the world, $4.29 trillion came from oil and gas sovereign wealth funds, which are funded by revenues from energy exports………………………………………..Full Article: Source

Qatar National Bank Q2 net profit rises 10%, beats forecasts

Posted on 10 July 2015 by VRS  |  Email |Print

Qatar National Bank (QNB), which is 50 per cent owned by sovereign wealth fund Qatar Investment Authority, beat analysts’ expectations on Wednesday as it posted a 10 per cent increase in second-quarter net profit, according to Reuters calculations.
The bank, the largest lender in the Gulf Arab region, reported a net profit of QAR 2.91bn ($799.2m) for the three months to June 30, compared with QAR 2.64bn in the corresponding period of last year, Reuters calculated. The bank did not provide a quarterly results breakdown in its earnings statement………………………………………..Full Article: Source

Temasek reports 19.2% investment gain for fiscal year

Posted on 08 July 2015 by VRS  |  Email |Print

Temasek Holdings Pte., a Singapore-based sovereign wealth fund, reported the Singapore dollar value of its investment portfolio rose 19.2% to S$266 billion ($193.3 billion) for its fiscal year ended March 31. In U.S. dollar terms, Temasek reported a smaller 9% gain, reflecting the U.S. currency’s appreciation from roughly S$1.26 to S$1.37 over the year.
With the latest results, Temasek has gained an annualized 9.6% in Singapore dollar terms over the past three years, and 9% over the past 10. In U.S. dollar terms, meanwhile, the sovereign wealth fund’s gains have been 6% and 11%, respectively. Png Chin Yee, managing director, investment, at a news conference Tuesday, attributed the latest year’s gains to a strong year for the respective equity markets of Singapore and China — Temasek’s top two allocations………………………………………..Full Article: Source

SOFAZ revenues exceed expectations

Posted on 07 July 2015 by VRS  |  Email |Print

The assets of Azerbaijan’s state oil fund SOFAZ exceeded 29.28 billion manat as of 2014 compared to about 28.31 billion manat in 2013, the SOFAZ report audited by PriceWaterhouseCoopers Audit Azerbaijan reads. some 25.62 billion manat of the total assets accounted for the current assets, but about 3.66 billion manat – long-term assets.
According to the report, SOFAZ received 12.73 billion manat in 2014 (compared to the projected figure of 11.63 billion manat). SOFAZ’s expenses exceeded 10.1 billion manat in 2014 compared to 10.6 billion manat envisaged in the budget………………………………………..Full Article: Source

China’s CIC sovereign fund overseas investment return falls to 5.47 pct

Posted on 06 July 2015 by VRS  |  Email |Print

China’s sovereign wealth fund China Investment Corp. (CIC) earned a lower return on its overseas investment last year at 5.47 percent, it said on Friday. At its annual earnings briefing, CIC said it posted a net profit of $89.1 billion last year, up 2.5 percent from the $86.9 billion earned in 2013. The fund recorded a 9.3 percent return on its overseas investment in 2013.
Founded in 2007 to help China earn a higher return on its huge foreign exchange reserves, CIC invested about 30 percent of its assets - or $200 billion - in overseas markets last year. At the end of the first quarter, China had $3.73 trillion in reserves………………………………………..Full Article: Source

China sovereign wealth fund expands by $125 billion

Posted on 06 July 2015 by VRS  |  Email |Print

Sovereign wealth fund China Investment Corp (CIC) saw its total assets soar by US$93 billion (S$125 billion) to nearly US$750 billion last year, it said Friday, although subdued global growth slowed returns on its overseas portfolio.
CIC was created in 2007 with US$200 billion to make better use of China’s colossal foreign exchange reserves, which amounted to US$3.73 trillion this March. Its total assets expanded to US$746.73 billion by the end of 2014, an increase of US$93.5 billion, CIC said in its annual report………………………………………..Full Article: Source

China sovereign wealth fund overseas returns fall, but assets swell by US$93b

Posted on 06 July 2015 by VRS  |  Email |Print

Assets at sovereign wealth fund China Investment Corp grew by US$93 billion to nearly US$750 billion last year, it reported, although subdued global growth slowed returns on its overseas portfolio. CIC was created in 2007 with US$200 billion to make better use of foreign exchange reserves, which have grown to US$3.73 trillion as of March this year.
Its total assets expanded to US$746.73 billion by the end of 2014, an increase of US$93.5 billion, CIC said in its annual report. But returns on the overseas portfolio dropped to 5.47 percent, down from 9.33 percent in 2013 and the weakest since 2011, according to the document. “During 2014, the global economy recovered at a slower speed than expected,” Ding Xuedong, chairman and chief executive officer of CIC, said in the report………………………………………..Full Article: Source

China sovereign fund net profit surges in 2014

Posted on 06 July 2015 by VRS  |  Email |Print

China Investment Corporation (CIC), the sovereign wealth fund, reported a huge net profit increase in 2014 in the company’s annual report, released Friday. Net profits hit 89.1 billion U.S. dollars last year, 2 billion dollars more than the previous year.
CIC branches abroad reported a net investment profit margin of 5.47 percent in 2014, lower than the annual average rate of 5.66 percent registered since the founding of the company in 2007. The company’s total assets surpassed 740 billion U.S. dollars, according to the report………………………………………..Full Article: Source

Dubai sovereign wealth fund sees profits surge 62%

Posted on 03 July 2015 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD), the emirate’s sovereign wealth fund has reported increased profits of $7.75 billion (AED28.5 billion) for 2014, up by 62 percent on the previous year. In a statement, ICD, which has stakes or holdings in companies such as Emaar, Emirates Airline, Emirates NBD and ENOC, said the positive results were driven by the group’s core business, an exceptional gain arising from the incorporation of Dubai Aluminium (Dubal) into the newly formed Emirates Global Aluminium (EGA) and by the partial disposal of the group’s equity investment in the London Stock Exchange.
ICD’s revenues increased by 11 percent, up from $48.5 billion to $54 billion, which is said was driven by the group’s subsidiaries operated in transportation, oil and gas and banking and financial services sectors………………………………………..Full Article: Source

Dubai sovereign wealth fund sees profits surge 62%

Posted on 02 July 2015 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD), the emirate’s sovereign wealth fund has reported increased profits of $7.75 billion (AED28.5 billion) for 2014, up by 62 percent on the previous year.
In a statement, ICD, which has stakes or holdings in companies such as Emaar, Emirates Airline, Emirates NBD and ENOC, said the positive results were driven by the group’s core business, an exceptional gain arising from the incorporation of Dubai Aluminium (Dubal) into the newly formed Emirates Global Aluminium (EGA) and by the partial disposal of the group’s equity investment in the London Stock Exchange………………………………………..Full Article: Source

SAMA’s net foreign assets fall 1 to SR2.521 trillion

Posted on 02 July 2015 by VRS  |  Email |Print

Net foreign assets at Saudi Arabian Monetary Agency fell to SR2.521 trillion (672.2 billion) in May down by 6.6 billion or 1.0 percent from the previous month as the kingdom continued to draw down reserves to cover a budget gap caused by cheap oil. Assets dropped by 8.1 percent from a year earlier to their lowest level since April 2013 central bank data showed.
The central bank serves as the country’s sovereign wealth fund storing its earnings from oil exports. Assets’ year-on-year drop is partly due to the strong US dollar which has cut the value of the portion denominated in non-dollar currencies but a major part is due to a fiscal drawdown analysts say………………………………………..Full Article: Source

SOFAZ reveals revenues from ACG, Shah Deniz fields

Posted on 01 July 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has earned $113.33 billion from 2001 to June 1, 2015 by developing the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea.
“The fund gained $3.071 billion in January-May, 2015 within the framework of ACG project, including $549 million in May,” SOFAZ told Trend on June 30. The ACG fields have been active since 1997. Its production first started at the Chirag part of the block. It was followed by Azeri Project; Central Azeri in February 2005, West Azeri in December 2005, and East Azeri in October 2006………………………………………..Full Article: Source

UAE, Saudi sovereign wealth funds among world’s largest

Posted on 01 July 2015 by VRS  |  Email |Print

Sovereign wealth funds (SWF) in the GCC are among the world’s largest, with the United Arab Emirates and Saudi Arabia leading the way in second and third place, respectively, just behind Norway. The Scandinavian country’s Government Pension Fund currently holds the world’s largest sovereign wealth fund with $882 billion in assets, according to SWF Institute’s the latest rankings.
The UAE’s Abu Dhabi Investment Authority (ADIA) is estimated to hold $773 billion worth of assets. The kingdom’s Foreign Holdings, which is controlled by the Saudi Arabian Monetary Agency (SAMA), has assets valued at $757.2 billion, followed by Kuwait Investment Authority (KIA) at $548 billion………………………………………..Full Article: Source

Investment Corporation of Dubai profit up 63% on core business growth

Posted on 01 July 2015 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD) posted a 63 per cent profit increase last year amid growth in its core businesses, a gain from the transfer of Dubai Aluminium’s assets to Emirates Global Aluminium and a partial sale of its equity in the London Stock Exchange.
ICD’s profit attributable to equity holders rose to Dh23.8 billion last year from Dh14.6bn a year earlier, the sovereign wealth fund said in a statement. Revenues edged up last year 11 per cent to Dh198.4bn from Dh178.3bn a year earlier as the fund’s transportation, oil and gas, banking and financial services units posted strong performance………………………………………..Full Article: Source

NZ super loses direct head, wins performance kudos

Posted on 30 June 2015 by VRS  |  Email |Print

The New Zealand Superannuation Fund (NZS) is searching for a new head of NZ direct investments following the resignation of incumbent, Michael Gleissner, last week. Gleissner, who joined NZS two years ago, “is leaving to focus on family commitments and consulting activities”, a spokesperson for the almost $30 billion fund said.
Until a replacement is found, Matt Whineray, NZS chief investment officer, would assume Gleissner’s responsibilities, the spokesperson said. The NZ Direct team manages NZS investments in Kaingaroa Timberlands, rural land, Datacom and Metlifecare………………………………………..Full Article: Source

New Zealand Superannuation Fund Hailed As World’s Top Performing Wealth Fund By JPMorgan

Posted on 29 June 2015 by VRS  |  Email |Print

The New Zealand Superannuation Fund has been hailed as world’s top performing wealth fund by JPMorgan. Having generated returns of more than 17 percent a year, the nearly NZ$30 billion New Zealand Superannuation Fund is ahead of all its global counterparts, which have published figures, according to the analysis published in the Financial Times. New Zealand’s Super Fund was set up in 2001 to pay for the costs of superannuation entitlements of New Zealanders.
“The New Zealand fund has a very interesting governance model. It is run by a group called The Guardians, who have a very deep belief in the power of long-term returns”, said Patrick Thomson, global head of sovereign wealth funds at JPMorgan. The last few years have been among the best years the fund experienced, noted Gavin Walker, NZ Super Fund chairma……………………………………….Full Article: Source

These are the world’s top 10 largest sovereign wealth funds

Posted on 26 June 2015 by VRS  |  Email |Print

Number 1? Norway’s Government Pension Fund - Global with $882bn worth of assets. Be it China or Qatar, the world’s sovereign wealth funds are snapping up British assets every other day. But which are the world’s top 10 largest sovereign wealth funds? Take a look at this list by Sovereign Wealth Fund Institute.
1. Government Pension Fund - Global. Country: Norway Assets: $882bn Inception: 1990. 2. Abu Dhabi Investment Authority. Country: UAE – Abu Dhabi Assets: $773bn Inception: 1976. 3. SAMA Foreign Holdings Country: Saudi Arabia Assets: $757.2bn Inception: n/a……………………………………….Full Article: Source

New Zealand’s Super Fund – World’s Best-performing Sovereign Wealth Fund

Posted on 24 June 2015 by VRS  |  Email |Print

The New Zealand Superannuation Fund has outperformed all of its counterparts with its generated returns of more than 17 per cent a year over the past five years according to analysis by JPMorgan. “Acting as a long-term investor has brought short-term rewards for New Zealand’s sovereign wealth fund”, write Sophia Grene and Steve Johnson for the Financial Times.
“The New Zealand fund has a very interesting governance model. It is run by a group called the Guardians, who have a very deep belief in the power of long-term returns”, said Patrick Thomson, global head of sovereign wealth funds at JPMorgan………………………………………..Full Article: Source

Guardians of New Zealand’s sovereign wealth lead it to the top

Posted on 22 June 2015 by VRS  |  Email |Print

Acting as a long-term investor has brought short-term rewards for New Zealand’s sovereign wealth fund. It generated returns of more than 17 per cent a year over the past five years, outstripping all other sovereign funds that publish their figures. In the year to April, the NZ$29.7bn ($20.5bn) NZ Super Fund returned 18.4 per cent, with annualised performance for the five years to June 2014 coming in at 17 per cent.
“The New Zealand fund has a very interesting governance model. It is run by a group called the Guardians, who have a very deep belief in the power of long-term returns”, said Patrick Thomson, global head of sovereign wealth funds at JPMorgan, the bank………………………………………..Full Article: Source

In one sentence the CEO of a $117 billion fund explained why market returns will be lower in the future

Posted on 19 June 2015 by VRS  |  Email |Print

David Neal, CEO of Australia’s $117 billion sovereign wealth fund, gave a speech at the Australian British Chamber of Commerce yesterday. He outlined why the Future Fund, as it is known, prefers to invest mostly offshore.
But he also gave a really clear outline – in just one sentence – why asset returns in the years ahead are likely to be substantially lower than they’ve been over the past few years. Neal said: Since 2008 we have seen unprecedented action by central banks and governments to defend economic growth through quantitative easing and other policies which have had the effect of driving yields down and asset prices up………………………………………..Full Article: Source

DIFC’s 10-year target: To be among top 10 financial centres

Posted on 11 June 2015 by VRS  |  Email |Print

Based on Dubai International Financial Centre (DIFC) estimates, half of the growth over the next ten years is forecast to come from South-South corridor – India, China and other Asia Pacific countries while 30 per cent contribution will come from the existing companies in terms of their expansion and 20 per cent by targeting the specialised sectors such as sovereign wealth funds, high net worth individuals, family businesses, Islamic financial services and others.
The areas that DIFC believes that can be tapped are the family offices and assets and wealth management as assets of high net worth individuals and sovereign wealth fund stand at approximately $7-8 trillion in the region; but only $1 trillion assets are managed professionally………………………………………..Full Article: Source

Middle East sovereign wealth funds fear inflow decline

Posted on 09 June 2015 by VRS  |  Email |Print

More than a third of Middle Eastern sovereign wealth funds expect new funding to decrease as the region adjusts to a period of lower oil prices, research suggests. Invesco’s 2015 global sovereign asset management survey reveals that 38 per cent of Middle Eastern sovereign funds expect such funding to decrease; 31 per cent expect it to stay the same; and 31 per cent see it increasing.
After years of ever-increasing allocations, regional fund managers are adjusting to a low-oil environment that may persist for several years. But the research also highlights the positive outlook from most regional funds, whose governments are seeking long-term returns for future generations or domestic development. “Middle East sovereigns felt funding would continue despite the oil price, whereas there is more sensitivity about future withdrawals,” said Nick Tolchard, head of Invesco Middle East………………………………………..Full Article: Source

Achievements of the sovereign wealth fund of Senegal (Video)

Posted on 04 June 2015 by VRS  |  Email |Print

Regional growth is projected to remain stable above in 2015, buoyed by rising investment flows. Joining CNBC Africa, on the side lines of WEF Africa, to give some perspective on the Sovereign Wealth Fund of Senegal and what has been achieved in the last two years is Amadou Hott, CEO of Sovereign Wealth Fund of Senegal for Strategic Investments.……………………………………….Full Article: Source

Resurgent global economy lifts Abu Dhabi Investment Authority returns

Posted on 03 June 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority, one of the world’s biggest sovereign wealth funds, said its long-term returns last year rose as world equity and bond markets inched up amid low interest rates and a recovering global economy. Adia said it was optimistic about 2015, even as UAE economic growth is expected to slow after oil prices were nearly cut in half last year. The fund does not invest in domestic assets.
“The drop in oil prices will provide a boost to the economies of Europe, Japan, China and other big net oil importers,” said Hamed bin Zayed Al Nahyan, Adia’s managing director. “Outperformance of the US economy provides a welcome source of demand for the rest of the world. The recent evolution of asset prices – stronger US dollar, lower bond yields and broadly steady equity prices – should work in the direction of improving economic outcomes.”……………………………………….Full Article: Source

Investment Corporation of Dubai posts 83% profit rise

Posted on 20 May 2015 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD) posted an 83.5 per cent increase in profit during the first half of last year compared with the year-earlier period, the sovereign wealth fund said. Net profit attributable to the equity holders of ICD rose to Dh12.08 billion in the six months ended June 30 compared with Dh6.58bn in the year-earlier period, the fund said in a statement to Nasdaq Dubai.
ICD did not give a reason for the profit increase. Revenue increased by nearly 14 per cent to Dh98bn in the first half of last year from Dh86bn in the year-earlier period. Total assets grew 5.8 per cent to Dh643.7bn from Dh608.3bn in the comparable period the previous year………………………………………..Full Article: Source

Total Assets Of Sovereign Wealth Funds Doubled Since 2008

Posted on 18 May 2015 by VRS  |  Email |Print

Preqin’s May 2015 Private Equity Spotlight focuses on sovereign wealth funds’ increasing investment in private equity. The article highlights both the growth in sovereign wealth funds and the increasing percentage of their portfolios being committed to alternative investments including private equity.
According to the article, “Today, the total assets of sovereign wealth funds top $6.31 tn, more than double the capital these entities represented in 2008, the year Preqin launched its first Sovereign Wealth Fund Review.” The Preqin article highlights that since October 2013, SWFs have increased their assets by $900 billion despite slumping commodity and oil prices throughout 2014. The continued growth in assets of sovereign wealth funds has been fueled by more government funding and reserves as well as from investment returns………………………………………..Full Article: Source

Alaska Permanent Fund returns 2.8% in quarter, up 4.7% for 9-month period

Posted on 14 May 2015 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 2.8% in the quarter ended March 31 and 4.7% in the fiscal year-to-date, said a news release from the $53.9 billion sovereign wealth fund. The fund’s strategic risk benchmark returned 2.2% and 2.7%, respectively, during the same periods. The permanent fund’s fiscal year ends June 30.
For the quarter, the best-performing asset class was the fund’s outsourced CIOs at 4.7%, followed by global equities at 3.4%. The rest of the asset classes were international equity, which returned 2.9%; private equity, 2.7%; domestic equity and real estate, 2.5% each; international fixed income, 2.2%; domestic fixed income, 1.6%; absolute return and infrastructure, 1.3% each; multiasset emerging markets, 0.5%; and private markets OCIOs, -1.2%……………………………….Full Article: Source

KIC portfolio ends 2014 at $84.7 billion, up 17.6% from year before

Posted on 13 May 2015 by VRS  |  Email |Print

Korea Investment Corp.’s investment portfolio was valued at $84.7 billion at the end of 2014, up 17.6% from the year before, said its latest annual report, released Monday. For the year, KIC posted a total investment gain of $2.7 billion, or 3.8%, on total assets under management after costs, and 9.79% against a basket of 33 currencies used by the sovereign wealth fund. For the past five years, the corresponding figures for the fund’s annualized returns were 7.43% and 5.66%, respectively.
A KIC spokesman couldn’t immediately explain why the fund’s year-end value of $84.7 billion was up a much stronger 17.6% for the year. At the end of 2014, equities accounted for 43.8% of KIC’s portfolio, down from 48.4% the year before. Fixed income, meanwhile, stood at 39.2% of the portfolio, up from 34.3% the year before………………………………………..Full Article: Source

Norway’s Sovereign Wealth Fund Is Falling (Video)

Posted on 08 May 2015 by VRS  |  Email |Print

Deutsche Bank Securities Chief International Economist Torsten Slok and Bloomberg’s Saleha Mohsin discuss a fall in Norway’s Sovereign Wealth Fund and what that means for the country. They speak on Bloomberg Television’s “Bloomberg Surveillance.”.………………………………………Full Article: Source

Norway sovereign fund produces record €42bn 1Q return

Posted on 04 May 2015 by VRS  |  Email |Print

Norway’s €825n sovereign wealth fund made its highest-ever quarterly return of €42bn (NOK401bn) in the first three months of 2014, driven by a sharp value rise in its equities portfolio and outperformance from its listed real estate.
The €825bn Government Pension Fund Global, managed by Norges Bank Investment Management, in 1Q14 returned 5.3% on investments, of which equity investments, 62.5% of total assets, returned 7.5% while fixed income returned 1.6%. Investments in real estate returned 3.1% with unlisted holdings returning 1.6% despite a negative currency impact of 1pt and listed real estate returning by 8.1%, reflecting strong performance in Europe and globally. NBIM is a prominent investor in European property groups including France’s Gecina, Germany’s Deutsche Annington and Britain’s Land Securities………………………………………..Full Article: Source

Record returns for Norway’s sovereign wealth fund

Posted on 04 May 2015 by VRS  |  Email |Print

Norway’s state-owned pension fund, the world’s largest sovereign wealth fund, on Wednesday reported a record quarterly return, owing primarily to the European Central Bank’s easing of monetary policy. For the first three months of the year, the fund yielded a return of 5.3 percent, or 401 billion kroner (47.8 billion euros, $52.7 billion), the Norwegian central bank said.
The fund, whose value amounted to 7.01 trillion kroner (836 billion euros, $922 billion) at the end of the quarter, is managed by the central bank. The quarterly result was the highest ever registered by the fund, which has been fuelled since 1996 by Norway’s oil revenues which are then reinvested abroad………………………………………..Full Article: Source

Norway’s sovereign oil fund earns more than government spends

Posted on 30 April 2015 by VRS  |  Email |Print

Norway’s $916bn oil fund on Wednesday trumpeted its best-ever quarterly return, boosted by monetary stimulus in Europe that put a rocket under the region’s stock markets. The Government Pension Fund Global, which invests Norway’s oil wealth, made more money in the first three months of the year than the government spent in the same period — and then some.
The fund returned 5.3 per cent, or NKr401bn ($53bn), in the first quarter, which its manager Norges Bank Investment Management said was its best ever performance, although this was flattered by weakness in the kroner………………………………………..Full Article: Source

Norwegian sovereign wealth fund achieves highest quarterly return

Posted on 30 April 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund achieved a return of 5.3 percent, or 401 billion kroner (53 billion U.S. dollars), in the first quarter of 2015, the highest ever quarterly return in krone terms, the fund said on Wednesday.
Previously the two best quarters in the fund’s history in krone terms were back in 2009 when the fund returned 270 billion kroner in the second quarter and 325 billion kroner in the third, according to a statement of the fund, formally known as the Government Pension Fund Global (GPFG) and ranked as the world’s biggest sovereign wealth fund………………………………………..Full Article: Source

Future Fund Boosts Assets, Chairman Gives Warning

Posted on 30 April 2015 by VRS  |  Email |Print

Future Fund posted positive returns for the first nine months of Fiscal Year 2014-2015. As of March 31, 2015, the Future Fund stands at A$ 117 billion in assets, posting a 15.1% return for the first nine months of the fiscal year. Asset owners such as sovereign wealth funds and large pensions are concerned about the expanding amount of liquidity being pumped into global financial markets.
Chairman Peter Costello of the Future Fund said in a press release, “Given the enormous monetary stimulus around the world, asset prices are generally fully priced and in some cases overpriced.” Costello added, “We remain focused on achieving the return target while avoiding excessive risk and this is particularly important as policy makers globally adjust setting with a view to delivering sustainable growth.”……………………………………….Full Article: Source

Future Fund posts 20pc one-year return

Posted on 29 April 2015 by VRS  |  Email |Print

The $117 billion Future Fund has returned 20 per cent over the past 12 months and 15 per cent for the first nine months of the financial year. In a portfolio update as at 31 March 2015, the sovereign wealth fund announced a one-year return of 19.9 per cent, which is well above its target return of 6.1 per cent.
Since 2006, Future Fund has generated investment returns of $56.5 billion on the original contributions from government which were valued at $60.5 billion at the time of transfer. Future Fund chair Peter Costello said the fund’s “patient and disciplined approach to investing for the long term has delivered well”………………………………………..Full Article: Source

Future Fund tops up on cash, warns some assets “overpriced”

Posted on 29 April 2015 by VRS  |  Email |Print

The Future Fund has increased its cash holdings to 15 per cent over the last quarter, signifying a growing sense of caution at Australia’s sovereign wealth fund as it seeks safe haven at a time of record low interest rates and “overpriced” assets. More than $17 billion, or 15.2 per cent of the fund’s assets were held in low-returning cash at the end of the March quarter, up from $14 billion or 12.8 per cent at the end of the December quarter.
Fund managers tend to move to cash to protect their investments from losses in the event of a downturn. But a macro-economic environment dominated by ultra-low rates and even negative yields in some parts of the world means that in this cycle, cash returns will be poor………………………………………..Full Article: Source

Future Fund tops up on cash, warns some assets “overpriced”

Posted on 29 April 2015 by VRS  |  Email |Print

The Future Fund has increased its cash holdings to 15 per cent over the last quarter, signifying a growing sense of caution at Australia’s sovereign wealth fund as it seeks safe haven at a time of record low interest rates and “overpriced” assets.
More than $17 billion, or 15.2 per cent of the fund’s assets were held in low-returning cash at the end of the March quarter, up from $14 billion or 12.8 per cent at the end of the December quarter. Fund managers tend to move to cash to protect their investments from losses in the event of a downturn. But a macro-economic environment dominated by ultra-low rates and even negative yields in some parts of the world means that in this cycle, cash returns will be poor………………………………………..Full Article: Source

Australia’s Future Fund returns 15.1 per cent, but future high returns hard to match

Posted on 29 April 2015 by VRS  |  Email |Print

Australia’s sovereign wealth manager, the Future Fund, returned 15.1 per cent for the first nine months of the financial year on strong growth for all of its asset classes, but warned that recent high returns would be hard to match in the future.
The fund set up in 2006 by the federal government to cover pension liabilities for its public servants, grew to A$117 billion (US$92 billion) by the end of March, it said in a statement. Established with contributions of $60.5 billion, the fund’s return for the financial year to date is higher than its three- and five-year returns of 14.9 per cent and 11.6 per cent, respectively………………………………………..Full Article: Source

Sovereign Wealth Funds Have an Active First Quarter 2015

Posted on 21 April 2015 by VRS  |  Email |Print

With recent noteworthy deals of sovereign wealth funds buying up massive real estate assets such as Norway’s SWF deal with Prologis on acquiring KTR Capital for US$ 5.9 billion or the Abu Dhabi Investment Council’s role in allocating to Spotify’s latest round, wealth funds continue to exhibit a greater role in direct investments.
Some notable first quarter deals in 2015 include the Qatar Investment Authority’s (QIA) role in buying the remaining portion of the Porta Nuova Development in Milan. The QIA, through Qatar Holding, bet big on the monumental urban rejuvenation development. Another colossal real estate deal in the first quarter 2015 is the China Investment Corporation (CIC) partnering with LaSalle Investment Management in acquiring the Meguro Gajoen complex in Tokyo for approximately 140 billion yen…………………………………..Full Article: Source

Sovereign Wealth Funds increase assets in 2014, despite sharp drop in oil prices

Posted on 15 April 2015 by VRS  |  Email |Print

The majority of sovereign wealth funds globally have increased their assets under management over the course of 2014. The growth in assets, up from USD5.38tn in October 2013 to USD6.31tn in March 2015, has been driven by continued funding from governments and reserves, as well as from investment returns. This growth has also been in the headwind of falling oil prices, one of the main sources of funding for these institutions.
Alternative assets are also becoming an 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. Seventy percent of sovereign wealth funds invest in at least one alternative asset class, with 60% of these institutions investing in real estate and infrastructure………………………………………..Full Article: Source

Bahrain SWF wants to double assets under management by 2022

Posted on 14 April 2015 by VRS  |  Email |Print

Bahraini sovereign fund Mumtalakat wants to double its $6.4 billion assets under management in the next seven years, preferably through partnerships with global investment firms, its chief executive told Reuters.
With stakes in some of the kingdom’s most high-profile firms including Aluminium Bahrain and Batelco as well as international names such as car firm McLaren, the fund currently has assets worth around 2.4 billion dinars ($6.37 billion)………………………………………..Full Article: Source

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