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Alaska Permanent Fund posts 3.86% return for quarter, above its benchmark

Posted on 29 November 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 3.86% for the quarter ended Sept. 30, ahead of its 3.51% performance benchmark, said a news release from the $54.8 billion sovereign wealth fund.
Strong equity returns, particularly in emerging markets, helped drive the overall return, the news release said. International stocks returned 7.86% for the quarter, followed by U.S. stocks at 5.76%; global stocks, 5.61%; special opportunity, 4.72%; private equity, 2.89%; real estate, 2.56%; absolute return, 2.27%; non-U.S. bonds, 1.83%; public and private credit, 1.29%; U.S. bonds, 1.2%; infrastructure and other real assets, 0.31%; and private markets OCIOs/real-return allocations, -0.6%………………………………………..Full Article: Source

HSF falls to US$5.4b

Posted on 22 November 2016 by VRS  |  Email |Print

Trinidad and Tobago’s sovereign wealth fund, the Heritage and Stabilisation Fund (HSF), fell 5.7 per cent on poor choices (negative security selection effects) and the US$377.5 million withdrawal by Finance Minister Colm Imbert in May, the latest report from the HSF showed on Friday.
“The total net asset value of the Fund as at the end of June 2016 was US$5,454.6 million, compared with US$5,787.3 million at the end of the previous quarter. Of this total, the investment portfolio was valued at US$5,452.7 million, while the remaining portion (US$1.9 million) was held in cash to meet the day-to-day expenses that arise from the management of the Fund,” the report said…………………………………….Full Article: Source

HK Exchange Fund’s income more than doubles as stock gains surge

Posted on 21 November 2016 by VRS  |  Email |Print

The Exchange Fund, the reserve designed to defend the Hong Kong currency, has reported an investment gain of HK$42.5 billion in the third quarter, more than double that of the previous three-month period, thanks to a large increase in stock investment income.
The Hong Kong Monetary Authority (HKMA) was established in April 1993 by merging the Office of the Exchange Fund with the Office of the Commissioner of Banking. The HKMA is responsible for maintaining monetary and banking stability, including maintaining currency stability within the framework of the Linked Exchange Rate system under which the Hong Kong dollar is pegged to the US dollar……………………………………Full Article: Source

Alaska lawmaker plans appeal in dividend case

Posted on 18 November 2016 by VRS  |  Email |Print

A state senator who challenged Gov. Bill Walker’s cut to the Alaska Permanent Fund dividend this year plans to appeal a judge’s decision that found that Walker acted within his authority. Sen. Bill Wielechowski of Anchorage said it was always expected that the case would be decided by the Alaska Supreme Court.
Wielechowski and two former legislators brought the case, arguing the Alaska Permanent Fund Corp. was obligated by law to make available nearly $1.4 billion from the fund’s earnings reserve for dividends, in spite of a Walker veto reducing that amount…………………………………….Full Article: Source

Abu Dhabi’s IPIC Posts Loss After $1 Billion UniCredit Writedown

Posted on 17 November 2016 by VRS  |  Email |Print

Abu Dhabi sovereign fund International Petroleum Investment Co. posted a first-half loss after its shares in UniCredit SpA slumped. IPIC recorded a loss of $91 million compared with a $1.25 billion profit a year earlier, the Abu Dhabi-based company said.
It posted a $998 million loss due to marking to market its 5.04 percent stake in Italy’s UniCredit, whose stock declined 62 percent in the first six months of the year. IPIC is merging with Abu Dhabi fund Mubadala Development Co. to create an entity with assets of about $125 billion and debt of about $42 billion…………………………………….Full Article: Source

Hong Kong Exchange Fund’s income more than doubles as stock gains surge

Posted on 16 November 2016 by VRS  |  Email |Print

In the first three quarters of the year, fund posts an investment profit of HK$86.8 billion. Its total assets worth HK$3.57 trillion by end of September. The Exchange Fund, the reserve designed to defend the Hong Kong currency, has reported an investment gain of HK$42.5 billion in the third quarter, more than double that of the previous three-month period, thanks to a large increase in stock investment income.
The third-quarter investment income, reported on Tuesday, was a turnaround from a loss of HK$63.8 billion in the same period last year, data from the Hong Kong Monetary Authority showed………………………………….Full Article: Source

SOFAZ in Top 5 of most transparent sovereign wealth funds

Posted on 08 November 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has managed to enter the top five of the most transparent sovereign wealth funds of the world. The Fund ranked the fourth among 60 sovereign wealth funds with overall score of 92 out of 100 in the fourth edition of Sovereign Wealth Fund Transparency and Accountability scoreboard published in October 2016.
The rating, prepared by Peterson Institute for International Economics put Norway Government Pension Fund to the top of the list followed by New Zealand Superannuation Fund (2nd place), Permanent Wyoming Mineral Trust Fund, United States (3rd place), SOFAZ (4th place) and Alberta Heritage Savings Trust Fund, Canada (5th place)………………………………………Full Article: Source

SOFAZ among top five most transparent sovereign wealth funds

Posted on 04 November 2016 by VRS  |  Email |Print

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has ranked fourth among 60 sovereign wealth funds with overall score of 92 out of 100 in the 4th edition of the Sovereign Wealth Fund Transparency and Accountability scoreboard published in October 2016.
Following the sovereign wealth funds made it to the top five in the Scoreboard: Norway Government Pension Fund (1st place), New Zealand Superannuation Fund (2nd place), Permanent Wyoming Mineral Trust Fund, United States (3rd place), SOFAZ (4th place) and Alberta Heritage Savings Trust Fund, Canada (5th place)………………………………………Full Article: Source

SOFAZ becomes 4th sovereign wealth fund

Posted on 04 November 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has got in world’s Top 5 on ranking Sovereign Wealth Fund Transparency & Accountability, made by PIIE (Peterson Institute for International Economics). SOFAZ reports that the PIIE survey covered 60 sovereign wealth funds with scale from zero to 100.
Following sovereign wealth funds made it to the top five in the Scoreboard: Norway Government Pension Fund (1st place with score of 98), New Zealand Superannuation Fund (2nd place; 94), Permanent Wyoming Mineral Trust Fund, United States (3rd place; 93), SOFAZ (4th place; 92) and Alberta Heritage Savings Trust Fund, Canada (5th place; 91)………………………………………Full Article: Source

Australia’s Future Fund returns 1.5 pct in Sept quarter

Posted on 01 November 2016 by VRS  |  Email |Print

Australia’s sovereign wealth manager, the Future Fund, on Monday posted a return of 1.5 percent for the last quarter, in line with its target, following a disappointing annual performance in the 2015/16 financial year.
“Like all investors across major global economies, we are facing a low-return environment,” said Peter Costello, chairman of the A$124 billion ($94.17 billion) Future Fund. In June, it posted a return of 4.8 percent for the last financial year, versus an expected 5.5 percent, as the fund lowered its exposure to risk assets due to global growth uncertainty………………………………………Full Article: Source

Future Fund grows to $124 billion

Posted on 01 November 2016 by VRS  |  Email |Print

The Future Fund stood at just over $124 billion at the end of the September quarter, returning 5.8 per cent in the past year and beating its target. Former Liberal treasurer and now chairman of the fund Peter Costello says the fund - which aims to cover the unfunded liabilities of public service superannuation - continues to perform well and has met its benchmark since its inception in May 2006 with a return of 7.6 per cent.
“Like all investors across major global economies, we are facing a low-return environment. We are maintaining a disciplined and prudent approach to finding opportunities,” Costello said……………………………………..Full Article: Source

Hong Kong Exchange Fund assets HK$3.57 trln end-Sept - HKMA

Posted on 01 November 2016 by VRS  |  Email |Print

Assets at the Exchange Fund, which is used to back the Hong Kong dollar, totalled HK$3,573.8 billion ($460.84 billion) at the end of September, the Hong Kong Monetary Authority (HKMA) said on Monday.
The figure was HK$14.1 billion higher than the total at the end of August, with foreign currency assets and Hong Kong dollar assets rising HK$11.1 billion and HK$3.0 billion respectively, the city’s de facto central bank said in a statement………………………………………Full Article: Source

Future Fund sounds warning on returns

Posted on 31 October 2016 by VRS  |  Email |Print

After delivering an impressive 7.7 per cent per annum since its inception in 2006, the Future Fund has sought to manage expectations about returns over the next decade.
The $123 billion Future Fund has released its annual report, laying out its investment strategy and outlook for the future. Future Fund Board of Guardians chairman Peter Costello noted the Future Fund has doubled the investment that originated it in 2006……………………………………..Full Article: Source

Here’s how Australia’s Future Fund performed last financial year

Posted on 28 October 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund, the Future Fund, released its 2015/16 annual report on Thursday, a 188-page behemoth detailing what it got up to last financial year, overall performance, and its views on the outlook for asset markets.
This nifty infographic from the fund shows how it performed, and performance over time compared to its set mandate, along with the asset allocation mix at June 30……………………………………Full Article: Source

High Returns? No(r)way!

Posted on 28 October 2016 by VRS  |  Email |Print

Norway’s Government Pension Fund, known as the Oil Fund, is the largest sovereign wealth fund in the world, commanding around US$900b of surplus wealth produced by Norwegian petroleum income. With a current allocation to equities of 60%, up from 40% in 2007, the Oil Fund is also a key player in global financial markets.
The Financial Times estimates that on average the Oil Fund owns 1.3% of every listed company in the world and 2.5% in Europe. The Oil Fund’s significance to world equity markets is poised to increase……………………………………Full Article: Source

Australian SWF exceeds expectations

Posted on 24 October 2016 by VRS  |  Email |Print

Australian sovereign wealth fund (SWF) and long-term savings vehicle Future Fund has secured investment returns of A$62 billion (US$47.3 billion) in the financial year ended June 30, 2016, boosting the fund’s total AUM to A$122.8 billion.
David Neal, managing director of the Future Fund, pointed out that the board considers returns over ten-year rolling periods as a suitable performance measure for the fund, given its long-term investment mandate. “As we were set up in 2006, this was the first time we were able to report a ten-year return,” he remarked, adding that the returns had exceeded the initial benchmark target of 6.9% per annum to reach 7.7%………………………………………Full Article: Source

Alaska Permanent plans to double assets managed internally

Posted on 18 October 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, unveiled a five-year investment management plan on Sept. 28 that aims to nearly double the assets it internally manages and also introduces a new target allocation.
The $54.8 billion sovereign wealth fund routinely reviews its investment philosophy every five years, and one conclusion as part of the review was to further its capabilities in internal management, said CEO Angela Rodell in a telephone interview…………………………………..Full Article: Source

KIC suffers paper loss of nearly 1 tln won this year

Posted on 17 October 2016 by VRS  |  Email |Print

Korea Investment Corp. (KIC), South Korea’s sovereign wealth fund, suffered a paper loss of nearly 1 trillion won (US$883 million) in its overseas stock investments in the first eight months of this year, an opposition lawmaker said Friday.
The KIC had minus 2 percent in its return in its direct investments in overseas stocks in the January-August period, compared with a 0.53 percent gain in the full year 2015, Kim Jong-min, a lawmaker of the main opposition Minjoo Party, said in a report for an annual parliamentary audit of the government……………………………………..Full Article: Source

SOFAZ planning to increase its assets in 2017

Posted on 13 October 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) is planning to increase its assets by $1 billion in 2017, SOFAZ CEO Shahmar Movsumov said Oct. 12 at a press conference in Baku. Movsumov noted that SOFAZ’s assets are forecast at the level of $34 billion in 2016.
“A balanced budget, where oil prices are considered at $40 per barrel, will be effective in 2017,” he added. As of Oct. 1, 2016, SOFAZ’s assets increased by 6.7 percent and amounted to $35.82 billion as compared to $33.57 billion in early 2016………………………………….Full Article: Source

Oil Fund’s assets exceed $35.8 bn

Posted on 13 October 2016 by VRS  |  Email |Print

The assets of the State Oil Fund of Azerbaijan (SOFAZ) increased by 6.7% for Jan-Sept 2016. According to the Fund, its assets for the reported period grew from $33.57 bn up to $35.82 bn. SOFAZ revenue was estimated at AZN 6.618 bn and expenditures at AZN 3.82 bn.
The basis of revenue for the past 3 quarters included revenue within the PSA contracts (AZN 5.88 bn), including AZN 5.867 bn from the sale of oil and gas, AZN 100,000 of bonuses, AZN 13.4 million from transit fees, and AZN 3.3 million of acre payments. The revenues from Fund’s managing assets amounted to about AZN 734.8 million………………………………….Full Article: Source

Norway’s wealth fund says pound flash crash reflects economic prospects

Posted on 12 October 2016 by VRS  |  Email |Print

The flash crash in sterling was a “correct move” that reflected economic expectations, a senior official at Norway’s sovereign wealth fund, one of Britain’s biggest foreign investors, said today.
The pound plunged about 10 per cent in a matter of minutes in early Asian trading on Friday, prompting the Bank of England to investigate why. The currency recouped much of the loss — which may have been due to automated trading — but was still down 1.5 per cent on the day………………………………………Full Article: Source

Alaska’s Permanent Fund a model for other states

Posted on 12 October 2016 by VRS  |  Email |Print

Researchers are recommending other states look to Alaska’s Permanent Fund to learn how to grow funds supported by natural resource extraction. The Pew Charitable Trust recently released a national study focusing on seven states that have funds from extraction revenue, which the report describes as “sovereign wealth funds.”
The report said Alaska is one of only two state funds with a purpose well-defined by state law. It also identified Alaska as one of only three states that don’t allow withdrawals from the fund principal………………………………………Full Article: Source

Sovereign wealth funds pull $90bn from asset managers

Posted on 10 October 2016 by VRS  |  Email |Print

State-backed investment vehicles grapple with low commodity prices and disappointing returns. Sovereign wealth funds have pulled almost $90bn from asset managers over the past two years, as state-backed investment vehicles grapple with low commodity prices and disappointing returns.
The outflows mark the longest sustained period of redemptions, adding pressure to asset managers already smarting from a low-yield environment and volatile markets…………………………………….Full Article: Source

UAE’s sovereign funds at $1.25 trln

Posted on 10 October 2016 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA) ranked the third largest sovereign wealth fund with total assets valued at AED 2.9 trillion (AED 792 billion), according to a report by the Sovereign Wealth Fund Institute (SWFI) in September.
Investment Corporation of Dubai (ICD) ranked second with total assets of AED 719 billion ($196 billion), accounting for 17% of the UAE’s four sovereign funds with assets amounting to $ 1.25 trillion. Total assets of Abu Dhabi Investment Council (ADIC) reached AED 403.7 billion ($110 billion), while the assets of International Petroleum Investment Company (IPIC) stood at AED 243 billion ($66.3 billion)…………………………………….Full Article: Source

Norway’s $890bn oil fund returns 4% in Q3

Posted on 10 October 2016 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund returned to growth in the third quarter as Norway’s $890bn oil fund reported a return of 4 per cent. Norway’s sovereign wealth fund books $30 bln profit in third quarterEquities returned 6 per cent, bonds 0.9 per cent, and property 2.4 per cent in the quarter.
Norway’s government is taking more money out of the fund than it is putting in for the first time in history. In the third quarter, NKr30bn was withdrawn, leaving the fund with a market value of NKr7.1tn…………………………………….Full Article: Source

Norway’s sovereign wealth fund books $30 bln profit in third quarter

Posted on 10 October 2016 by VRS  |  Email |Print

Norway’s $882-billion sovereign wealth fund, the world’s biggest, returned a profit in the third quarter thanks to strong stock markets, it said on Friday. The fund earned a return of 4.0 percent in the quarter, or 240 billion Norwegian crowns ($29.7 billion), beating its benchmark by 0.2 percentage points. In the second quarter the fund booked a profit of 1.3 percent.
“Equity investments performed strongest during the quarter with positive returns in all regions. This was the main contributor to the fund’s results,” the fund’s deputy chief executive, Trond Grande, said in a statement…………………………………….Full Article: Source

NDFI Assets at $68bln

Posted on 04 October 2016 by VRS  |  Email |Print

Iran’s sovereign wealth fund is becoming wealthier due to the oil producer’s increased sales, though low oil prices are slowing its growth. The National Development Fund of Iran currently has $68 billion in overseas assets, according to the chairman of its governing board.
The fund, which collects oil price windfalls for infrastructure investment, is yet dwarfed by sovereign wealth funds of its neighbors in the Persian Gulf periphery. The UAE has nearly $800 billion and Saudi Arabia has $600 billion in assets. “The fund’s overseas assets have remained unchanged since I took responsibility for the national development fund,” Mehr News Agency reported Ahmad Doust-Hosseini as saying…………………………………….Full Article: Source

Alaskans unhappy with amount of yearly dividend checks

Posted on 04 October 2016 by VRS  |  Email |Print

Residents in Alaska have said they feel ‘cheated’ after their annual dividend payment was slashed by more than half to $1,022 per person. Each year, all locals receive the checks from the state’s oil wealth fund as a reward for living in Alaska for at least a full calendar year.
The Permanent Fund Dividend (PFD) reached a peak amount of $2,072 in 2015. But Governor Bill Walker stepped in and shrunk the amount because of the state’s multibillion-dollar budget deficit, a situation exacerbated by low oil prices…………………………………….Full Article: Source

SOFAZ revenues forecasted to increase by 2.4 times

Posted on 30 September 2016 by VRS  |  Email |Print

Revenues of the State Oil Fund of Azerbaijan (SOFAZ) are forecasted to be AZN 8,370,600,000, up AZN 4,889,100,000 or 2.4 times from 2016. According to the Ministry of Finance, of this AZN 7,550,700,000 or 90.2% will be receipts from profit oil and gas sale.
Expenditures will stand at AZN 6,951,300,000, down AZN 3,685,000,000 or 34.6% in comparison with 2016. Of this, AZN 6.1 billion or 87.8% will be transfers to the state budget. AZN 822 million or 11.8% will be spent directed to financing the several infrastructural projects (improvement of social-economic condition of refugees and internally displaced persons……………………………………..Full Article: Source

Amount of 2016 Permanent Fund Dividend to be $1022

Posted on 30 September 2016 by VRS  |  Email |Print

The amount of this year’s Alaska Permanent Fund Dividend was announced by the Governor on Friday, September 23: every Alaskan will receive $1,022, less than half the amount of last year’s dividend.
Since 1982, the State of Alaska has distributed annual cash dividends to all of its residents, including children, funded from income from the state’s sovereign wealth fund. Because the payment is universal and unconditional, it has often been discussed as a “real world” example of a basic income. Last year, the Permanent Fund Dividend (PFD) reached its peak amount of $2,072………………………………………Full Article: Source

An Asean Government Investment Fund Lost RM73 Billion Last Year

Posted on 26 September 2016 by VRS  |  Email |Print

One of the Asean region’s biggest soveriegn fund has been hit by its first loss in 7 years. While local detractors of Malaysia’s ruling government have continued their smear campaign against state-owned investment fund 1MDB and making it appear as a huge failure due to losses, it is Singapore’s state investment giant Temasek Holdings which announced an astounding SG$24 billion (RM73 billion) loss for its last financial year.
Singapore’s sovereign wealth-fund company Temasek Holdings reportedly lost SG$24 billion in its latest financial year report FY2016 dating March 31. The news which saw the investment arm of the country’s CPF retirement funds lost 9.02% was announced only 3 months later on July 7. Temasek Holdings lost SG$24 billion to SG$242 billion from SG$266 billion a year ago, Straits Times Review had reported earlier this year…………………………………….Full Article: Source

Fall in global equities sees NZ Super Fund record worst performance since 2012

Posted on 22 September 2016 by VRS  |  Email |Print

A fall in global equities has seen the annual return of the NZ Super Fund fall to its lowest level since 2012. The sovereign wealth fund, established to help cover New Zealand’s retirement costs, said on Wednesday that a drop in the June month meant its value stood at $30.1 billion at June 30, an increase of 1.89 per cent over 12 months.
In 2012 the fund returned 1.21 per cent. In the year to June 30, 2015, the fund returns more than 14.6 per cent, making it one of the world’s best performing sovereign wealth funds. Since the end of the financial year the fund has surged in value, climbing to $31.4b by the end of August…………………………………….Full Article: Source

New Zealand Super reports 1.89% gain for financial year

Posted on 22 September 2016 by VRS  |  Email |Print

New Zealand Superannuation Fund reported a 1.89% investment gain for its financial year ended June 30, lifting the value of its portfolio to NZ$30.1 billion ($21.4 billion). In a news release Thursday, New Zealand Super said strong gains by the Auckland-based sovereign wealth fund’s active investments in timber and infrastructure helped it outperform its passive reference portfolio by 52 basis points for the year.
Even so, negative returns of just less than 2% by global developed and emerging markets equities left the fund’s gains for the latest year well below the 14.6% advance New Zealand Super enjoyed for its prior financial year, and well off the annualized pace of 9.44% the fund has maintained from its launch in 2003 through June 30…………………………………….Full Article: Source

Angolan sovereign wealth fund releases Q1 results

Posted on 22 September 2016 by VRS  |  Email |Print

The Fundo Soberano de Angola (FSDEA), Angola’s sovereign wealth fund, released its first quarter investment update for 2016, showing total assets of $4.56 billion. FSDEA Chairman José Filomeno dos Santos said that as of 31 March 2016, the Fund had approximately 60 per cent of its portfolio allocated in private equity funds dedicated to both domestic and regional investments.
“Despite the current regional economic fluctuations, we will continue to invest capital across selected industries and asset classes to gain from the upcoming rebound of Africa’s business cycle,” he said…………………………………….Full Article: Source

Fall in global equities sees NZ Super Fund record worst performance since 2012

Posted on 21 September 2016 by VRS  |  Email |Print

A fall in global equities has seen the annual return of the NZ Super Fund fall to its lowest level since 2012. The sovereign wealth fund, established to help cover New Zealand’s retirement costs, said on Wednesday that a drop in the June month meant its value stood at $30.1 billion at June 30, an increase of 1.89 per cent over 12 months.
In 2012 the fund returned 1.21 per cent. In the year to June 30, 2015, the fund returns more than 14.6 per cent, making it one of the world’s best performing sovereign wealth funds. Since the end of the financial year the fund has surged in value, climbing to $31.4b by the end of August………………………………………Full Article: Source

Abu Dhabi’s Mubadala Posts $1.2 Billion Loss in First-Half

Posted on 09 September 2016 by VRS  |  Email |Print

Mubadala Development Co., the Abu Dhabi sovereign fund merging with International Petroleum Investment Co., posted a 4.43 billion-dirham ($1.2 billion) loss in the first half because of lower commodities prices and smaller gains from financial investments.
The result compares with a 625 million-dirham profit a year ago, according to a financial statement from the fund on Thursday. Sales increased to 14.3 billion dirhams from 13.6 billion dirhams a year earlier, while higher depreciation and impairments contributed to the slump………………………………………..Full Article: Source

Russian Wealth Fund Has This Year’s Biggest Drop as Buffers Wilt

Posted on 07 September 2016 by VRS  |  Email |Print

One of Russia’s two sovereign wealth funds had its biggest drop of the year in August, underlining the urgency of bringing the deficit under control as the budget gap remains on track for the widest since 2010.
The Reserve Fund, which peaked at $142.6 billion in 2008, fell to $32.2 billion last month, a decrease of 16 percent from July, as the government converted foreign currency into rubles to cover the deficit, the Finance Ministry said on Tuesday. The government’s other stockpile, the National Wellbeing fund, was at $72.7 billion, compared with $72.2 billion a month earlier………………………………………..Full Article: Source

Future Fund hits 10th year double the size

Posted on 02 September 2016 by VRS  |  Email |Print

It’s 10 years old, doubled in size and, at $123 billion, is larger than Peter Costello envisaged when he established it in May 2006. But the former Liberal treasurer, now chairman of the fund which aims to cover the unfunded liabilities of public service superannuation, has warned of a difficult investment environment ahead.
In its latest quarterly update, the fund returned 4.8 per cent in the past year, just shy of its legislative target of 5.5 per cent - CPI plus 4.5 per cent. But over the past decade it has returned 7.7 per cent, adding $62.3 billion to the original government contributions of $60.5 billion………………………………………..Full Article: Source

Future Fund assets up to $123b after strong fourth quarter

Posted on 02 September 2016 by VRS  |  Email |Print

The Future Fund is shifting more of its $123 billion portfolio into private investments as ultra low interest rates reduce returns and raise risks in public equity and bond markets.
Australia’s sovereign wealth fund announced a strong 4.6 per cent quarterly performance to increase its assets to $123 billion, which managing director David Neal said was boosted by successful investments in non-listed businesses. “Private markets is an area where we continue to put a lot of focus,” said Neal. He explained the fund was looking to move “away from relying on market returns which are likely to be subdued [in favour] of genuine skill based opportunistic returns”………………………………………..Full Article: Source

Australia’s Future Fund gains 4.8% in fiscal year

Posted on 02 September 2016 by VRS  |  Email |Print

Australia’s Future Fund reported a 4.8% investment return for its fiscal year ended June 30, lifting the value of its portfolio to A$122.8 billion ($91.1 billion). The Melbourne-based sovereign wealth fund’s gain for the quarter ended June 30, meanwhile, came to 4.6%.
For the first time since its launch in May 2006, Future Fund was able to report a 10-year annualized return — 7.7% — with investment gains over that period exceeding the A$60.5 billion in initial government contributions………………………………………..Full Article: Source

Alaska Permanent misses benchmark with 1.02% fiscal-year return

Posted on 02 September 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 1.02% gross of fees for the fiscal year ended June 30, below its 1.57% performance benchmark, the $52.9 billion sovereign wealth fund announced Thursday.
Infrastructure and other real assets returned 17.59% for the fiscal year, followed by private equity at 14.38%; private markets OCIOs/real-return allocations, 9.68%; non-U.S. bonds, 7.3%; U.S. bonds, 5.29%; U.S. stocks, -0.09%; absolute return, -1.92%; global stocks, -4%; non-U.S. stocks, -9.39%; and true special opportunity, -18.71%………………………………………..Full Article: Source

Straumann Shares Fall by Most in One Year After GIC Stake Sale

Posted on 01 September 2016 by VRS  |  Email |Print

Straumann Holding AG shares fell by the most in a year after Singapore’s sovereign wealth fund GIC Pte reduced its stake in the Swiss dental-implant manufacturer.
Straumann today said GIC, its second-largest shareholder, reduced its stake in the firm from 14 percent to less than 5 percent in a sale of 1.4 million shares . GIC bought a 10 percent stake in 2012 from Straumann’s vice chairman. Its investment has nearly quadrupled since then, according to Sibylle Bischofberger, an analyst at Zuercher Kantonalbank………………………………………..Full Article: Source

Decade-old Future Fund doubles in size

Posted on 01 September 2016 by VRS  |  Email |Print

The Future Fund has doubled in size since was it created 10 years ago to stand at $123 billion, larger than former Liberal treasurer Peter Costello envisaged when he established it. But Costello, now chairman of the fund which aims to cover the unfunded liabilities of public service superannuation, has warned the investment environment is challenging, with returns likely to be lower and risks higher while global growth remains weak.
In the past decade the fund has returned 7.7 per cent, adding $62.3 billion to the original government contributions of $60.5 billion………………………………………..Full Article: Source

GIC’s and Temasek’s investee company Xiaomi lost $40 billion in value

Posted on 26 August 2016 by VRS  |  Email |Print

It was recently reported that Chinese smartphone company Xiaomi, once dubbed the “Apple of the East”, has lost US$40 billion in value over a period of 18 months. In Dec 2014, Xiaomi announced a funding round of US$1.1 billion giving it a valuation of US$45 billion. In the US$45 billion round, it wasreported that investors included the Singapore sovereign wealth fund GIC, which is tasked to manage Singapore’s reserves.
GIC’s investment in Xiaomi comes after Temasek purchased a small stake in the smartphone maker in an earlier funding exercise. It was also reported that Temasek had gone on an investment spree together with Xiaomi and its founder Lei Jun, to invest in dozens of firms across China’s mobile internet eco-system………………………………………..Full Article: Source

Qatar’s financial position ‘will remain strong over next decade’

Posted on 24 August 2016 by VRS  |  Email |Print

Qatar, whose budget will turn back to surplus in 2017, will remain in one of the strongest fiscal positions in the world over the next decade and continue to hold massive financial buffers through its sovereign wealth fund (SWF), according to BMI. “Qatar’s sovereign position will remain one of the strongest in the world,” BMI said, forecasting that the budget surplus is expected to be QR5.3bn in 2017.
Having posted large budget surpluses between 2010 and 2015 on the back of massive hydrocarbon revenues, BMI said it allowed the country to set up a SWF ‘Qatar Investment Authority’, which held $335bn (215% of gross domestic product or GDP) of assets at the end of 2015, equivalent to five times the total stock of public debt issued by the Qatari government………………………………………..Full Article: Source

SOFAZ reveals income from largest oil project

Posted on 19 August 2016 by VRS  |  Email |Print

Revenues of Azerbaijan’s state oil fund SOFAZ from the project on development of the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields totaled $119.779 billion from early 2001 to August 1, 2016, the Fund told Trend.
SOFAZ said its revenues from the project totaled $2.77 billion in January-July 2016 with some $465 million being acquired in July. A landmark agreement on developing the ACG oil and gas fields was signed with a consortium of 11 foreign energy companies representing six countries in Baku in 1994, while production at the field was launched in 1997………………………………………..Full Article: Source

Norway’s SWF Up Despite 5% UK Real Estate Haircut

Posted on 19 August 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund is worth 7,177 billion NOK (US$878 billion). It was up in the second quarter of 2016 by a steady 1.3%, in spite of its real estate holdings in the UK that Norge’s Bank Investment Management’s quarterly report says it reduced by 5 percent as of June 30th.
This downward adjustment is thanks to the financial uncertainty in the UK following the country’s June 23rd referendum that saw British citizens vote to leave the EU. Over $20 billion in property fund assets have being frozen and the British pound has fallen 11% since the vote as investor confidence in the UK investments falls……………………………………….Full Article: Source

Norway’s sovereign wealth fund returns to prodit amid bond gains

Posted on 18 August 2016 by VRS  |  Email |Print

Norway’s US$890 billion (S$1.19 trillion) sovereign wealth fund, the world’s biggest, returned to gains in the second quarter even as it warned low interest rates will put pressure on returns ahead amid rising withdrawals from the government.
The Government Pension Fund Global gained 94 billion kroner (S$15.4 billion), or 1.3 per cent, after losing 0.6 per cent in the first quarter, the Oslo-based investor said on Wednesday. Its stock portfolio rose 0.7 per cent, its bond holdings gained 2.5 per cent and the real estate investments lost 1.4 per cent………………………………………..Full Article: Source

Norway’s sovereign wealth fund returns 1.3% in quarter

Posted on 18 August 2016 by VRS  |  Email |Print

Norway’s Government Pension Fund Global, Oslo, returned 1.3% in the three months ended June 30, bolstering total assets by 1.4% to 7.18 trillion Norwegian kroner ($850 billion). In a financial update Wednesday, Norges Bank Investment Management, which runs the assets of the sovereign wealth fund, said the return was equivalent to a gain of 94 billion Norwegian kroner.
That compares with a -0.6% return, or 85 billion Norwegian kroner loss, for the three months ended March 31. For the year ended June 30, assets increased 4.1%. The return for the second quarter 2015 was -0.9%, or a 73 billion Norwegian kroner loss………………………………………..Full Article: Source

World’s Biggest Wealth Fund Struggles With Market Pay Off

Posted on 17 August 2016 by VRS  |  Email |Print

Norway’s $890 billion sovereign wealth fund, the world’s biggest, may have eked out a gain in second quarter as broad stock and bond indexes rose. The fund, which release its report on Wednesday, has had losses for three of the past four quarters, struggling to navigate market turbulence at the same time as it faces the first-ever withdrawals by the government.
Pressured by a collapse in oil prices, western Europe’s biggest crude producer is planning to lift more than $10 billion from its piggy bank this year to plug budget holes………………………………………..Full Article: Source

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