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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

SOFAZ gains $79.5 million of profit from development project of Shah Deniz field

Posted on 14 April 2015 by VRS  |  Email |Print

Azerbaijan’s State Oil Fund (SOFAZ) gained $2.199 billion of profit from 2007 to April 1, 2015 by implementing the development project of the giant Shah Deniz gas condensate field in the Caspian Sea, AzerTag reports.
According to the Department of Public Relations of SOFAZ, it earned some $79.5 million as part of the Shah Deniz project from January 1 to April 1, 2015………………………………………..Full Article: Source

SWF assets surge by Dh3.3trn in 18 months: What’s behind the boost?

Posted on 14 April 2015 by VRS  |  Email |Print

Despite a drop in oil prices over the last year, sovereign wealth fund (SWF) assets have grown nearly 17 per cent. Alternative assets industry data collector Preqin said SWF assets under management expanded by more than $900 billion (Dh3.3 trillion) over the past 18 months, from October 2013 to March 2015, reaching $6.31 trillion (Dh23.15 trillion) by the end of last month.
SWF assets stood at $5.38 trillion (Dh19.74 trillion) in October 2013. The recent boost to SWF assets has come mainly from continued funding from governments and reserves as well as from investment returns, Preqin said………………………………………..Full Article: Source

Preqin: Sovereign wealth fund assets rise 17% in 18 months to $6.3 trillion

Posted on 13 April 2015 by VRS  |  Email |Print

Aggregate assets managed by a universe of 73 sovereign wealth funds increased 17% to $6.3 trillion as of March 31, up from $5.4 trillion at the start of October 2013, the last time researcher Preqin reviewed this part of the asset owner industry.
The overall industry growth was due to continued funding from government sponsors of the funds and investment returns, said the Preqin report, which was released Thursday. A majority of sovereign wealth funds — 59% — experienced an increase in assets over the 18-month period, 11% had no change and 30% lost ground, the Preqin data showed………………………………………..Full Article: Source

59% Of Sovereign Wealth Funds Increase Assets In 2014, Despite Sharp Drop In Oil Prices

Posted on 10 April 2015 by VRS  |  Email |Print

Assets under management for sovereign wealth funds globally reach $6.31tn as of March 2015, increasing by more than $900bn over the past 18 months. The majority of sovereign wealth funds globally have increased their assets under management over the course of 2014. This is despite falling commodity and oil prices, which many of these institutions rely on for funding. The growth in assets has been driven by continued funding from governments and reserves, as well as from investment returns.
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. AUM Increases and Decreases: While 59% of sovereign wealth funds increased their assets under management over the past 18 months, 30% saw a fall in their AUM and 11% reported no change in assets………………………………………..Full Article: Source

Malaysia’s i-VCAP aims to double AUM to $550m in two years

Posted on 10 April 2015 by VRS  |  Email |Print

Sovereign wealth fund unit i-VCAP Management Sdn Bhd is targeting to double its assets under management (AUM) to over MYR2 billion ($550 million) in the next two years. i-VCAP has MYR1.1 billion assets under management, around MYR350 million of which is contributed by the exchange-traded funds (ETF).
Chief executive officer Mahdzir Othman said the fund management firm is targeting to double its AUM within the next two years, through more new ETFs as well as other fund structures. i-VCAP is a subsidiary of sovereign wealth fund Khazanah Nasional and has Malaysia’s Retirement Fund Incorporated’s (also known as KWAP) CEO Wan Kamaruzaman Wan Ahmad as its chairman………………………………………..Full Article: Source

NSIA Records N15bn Income In 2014

Posted on 02 April 2015 by VRS  |  Email |Print

The Managing Director, Nigeria Sovereign Investment Authority (NSIA), Mr Uche Orji, said the fund recorded a net comprehensive income of N15.8 billion in 2014, up from N505 million in December 2013. Orji announced this while addressing newsmen on Authorities Financial Year report on Monday in Abuja.
“Total revenue during the period stood at N7.2 billion, up from N1.96 billion. “Change in fair value of assets was at N10.5 billion as opposed to a loss of N19.5 million during the 15 month period ended December 2013,’’ he said……………………………………….Full Article: Source

No dividend on Sovereign Wealth Fund till 2017

Posted on 31 March 2015 by VRS  |  Email |Print

The Nigerian Sovereign Investment Authority on Monday said it would not pay dividend on the Sovereign Wealth Fund until the end of the 2017 financial year. The Managing Director and Chief Executive Officer, NSIA, Mr. Uche Orji, disclosed this while addressing journalists in Abuja on Monday about the financial performance of the agency in the 2014 financial period.
He said the law setting up the Sovereign Wealth Fund did not allow the agency to pay dividend until the fund had posted profit for five consecutive years. The SWF, which was set up in 2012, is jointly owned by the federal, state and local governments. The three tiers of government are the shareholders that are expected to receive dividends from the fund………………………………………..Full Article: Source

Nigeria Sovereign Investment Authority earned N15.8bn in 2014

Posted on 30 March 2015 by VRS  |  Email |Print

The Nigeria Sovereign Investment Authority on Sunday said it earned a net income of N15.8bn in the 2014 financial year. The agency, in its annual report made available to our correspondent by the Managing Director/Chief Executive Officer, Mr. Uche Orji, said the amount was a significant improvement on the N505m recorded in the 2013 financial period.
The NSIA is the agency currently managing the Sovereign Wealth Fund, which was set up in March 2013 by the Federal Government following the injection of an initial investment of $1bn. The initial investment was later followed with an additional investment of $550m about nine months later………………………………………..Full Article: Source

At SWFs, 2015 Is Shaping Up to Be A High Turnover Year for Management

Posted on 27 March 2015 by VRS  |  Email |Print

It’s been a busy year for sovereign wealth fund executives. We’ve seen a shake-up at the top of the China Investment Corp.(CIC), the launch of an entirely new fund in Mexico, and new hires at Australia’s Future Fund and Khazanah Nasional, among others. And a momentous change of leadership at Alberta Investment Management Corp. Here’s a roundup of all the moves from the first quarter 2015.
On February 25, the People’s Bank of China (PBoC), the country’s central bank, appointed Fan Yifei, CIC’s executive vice president, deputy chief operating officer and executive committee member, as its new vice chairman; he will now divide his time between the two institutions, an unusual arrangement whose implications China experts are still trying to decipher………………………………………..Full Article: Source

Social security fund reports 139 bln yuan investment yields

Posted on 25 March 2015 by VRS  |  Email |Print

China’s social security fund gained 139 billion yuan (22.7 billion U.S. dollars) from investment in 2014, with an 11.4 percent return on investment, the National Council for Social Security Fund said on Tuesday. The rate of return outperformed the 6.2-percent return rate in 2013.
Founded in 2000, the fund is designed to solve the country’s aging problem as well as being a strategic reserve to support future social security expenditure. By the end of last year, the fund’s managed assets totaled over 1.5 trillion yuan………………………………………..Full Article: Source

Norway’s Government Pension Fund is on top of the world

Posted on 24 March 2015 by VRS  |  Email |Print

A glance at the largest sovereign wealth fund – Norway’s Government Pension Fund Global. GPF assets have grown an annualized 20.3% in the 10 years ended Dec. 31. The fund increased its real estate allocation to 2.2% of assets in 2014 and officials say they “will continue to expand the portfolio in the years ahead.”
In its annual report, management noted strong equity returns in recent years cannot be expected to continue. That, combined with low interest rates globally “will make it a challenge for the fund to deliver similarly high returns going forward.”……………………………………….Full Article: Source

Orji: SWF Has ‘Good Year’ Tapping Dollar Investments

Posted on 19 March 2015 by VRS  |  Email |Print

Nigeria’s $1.55 billion sovereign wealth fund (SWF) had a “good year” after weighting its investments toward dollar assets, according to Chief Executive Officer, Mr. Uche Orji. “Our currency position was great as we were very long the dollar,” Bloomberg quoted Orji, a former Goldman Sachs Incorporated banker and head of the Nigerian Sovereign Investment Authority to have said in an interview in Geneva.
The Abuja-based wealth fund, set up by Nigerian President Goodluck Jonathan in 2011, gained exposure to the dollar through equities, private equity and fixed-income assets, said Harvard-trained Orji. The fund, which invests revenue generated when the OIL PRICE exceeds that budgeted by the government of Africa’s biggest crude producer, has adjusted to the market slump since June, he added………………………………………..Full Article: Source

Nigeria’s $1.55 bn SWF Has ‘Good Year’ Tapping Into Dollar Investments

Posted on 18 March 2015 by VRS  |  Email |Print

Nigeria’s $1.55 billion sovereign wealth fund had a “good year” after weighting its investments toward dollar assets, according to Chief Executive Officer Uche Orji. “Our currency position was great as we were very long the dollar,” Orji, a former Goldman Sachs Group Inc. banker and head of the Nigerian Sovereign Investment Authority, said in an interview in Geneva on Monday. “It was the only game in town.”
The Abuja-based wealth fund, set up by Nigerian President Goodluck Jonathan in 2011, gained exposure to the dollar through equities, private equity and fixed-income assets, said Harvard-trained Orji. The fund, which invests revenue generated when the oil price exceeds that budgeted by the government of Africa’s biggest crude producer, has adjusted to the market slump since June, he said………………………………………..Full Article: Source

Oil fund makes every Norwegian paper millionaires

Posted on 18 March 2015 by VRS  |  Email |Print

The Government Pension Fund Global is now worth more than 7.000 billion kroner (€796 billion). If divided on the 5,2 million Norwegians, each one would have 1,35 million. That is five times the annual net income of a Swede. Despite the crash in oil price recently, the Norwegian sovereign fund returned 10,6 percent on the fund’s equity portfolio in 2014.
The fund’s market value passed NOK 7,000 billion last week and was Tuesday worth 7,140 billion. A live, second-by-second, online update is made available on Norges Bank’s portal for the investment management………………………………………..Full Article: Source

Gulf sovereign wealth funds punching above their weight

Posted on 17 March 2015 by VRS  |  Email |Print

According to the Sovereign Wealth Fund (SWF) Institute, GCC-based SWFs have a total of $2.6 trillion (Dh9.54 trillion) in assets — about 37 per cent of total SWF assets worldwide. Close to 80 per cent of SWF assets in GCC states are accounted for by three major players — the Abu Dhabi Investment Authority with $773 billion, foreign holdings at the Saudi Arabia Monetary Authority (SAMA) at $757 billion and the Kuwait Investment Authority with $548 billion. By assets, Adia and Sama are the second and third largest SWFs globally.
The UAE has seven large SWFs in total: four in Abu Dhabi, one each in Dubai and Ras Al Khaimah, while the last is a federal fund. By number of funds, this is more than any other country in the GCC and globally, second only to the US which has several smaller-sized state-level SWFs………………………………………..Full Article: Source

Norwegian sovereign wealth fund achieves 7.6 pct return in 2014

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund returned 7.6 percent, or 544 billion Norwegian kroner (67 billion U.S. dollars), in 2014, with positive results for all its asset classes, but underperformed its benchmarks, the fund said on Friday.
Equity investments returned 7.9 percent, fixed-income investments 6.9 percent, and real estate investments 10.4 percent for the fund, formally known as the Government Pension Fund Global (GPFG) and ranked as the world’s biggest sovereign wealth fund, it said in a statement………………………………………..Full Article: Source

Norway’s sovereign fund doubles in three years

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the biggest in the world, has nearly doubled in three years, the central bank said Friday, which would make all 5.2 million Norwegians millionaires — at least on paper. The fund comprised of stock, bonds and property from around the world returned 7.6 percent in 2014, ending the year at 6.431 billion kroner (745.1 billion euros, $788 billion). At the end of 2011, the fund was worth 3.312 billion kroner.
The fund’s increase of 544 billion kroner from 2013 was attributed in particular to earnings in last year’s bullish stock markets as more than 60 percent of the fund’s portfolio is in stocks. To pay for future expenses Norway traditionally puts aside all of the huge revenue from its public oil company and is authorised to use only up to 4 percent to balance the country’s budget………………………………………..Full Article: Source

Norway’s $860 bln oil fund underperforms in 2014 on big Europe exposure

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund, the world’s biggest, underperformed its benchmarks in 2014 because of its big exposure to Europe and the relatively short duration of its fixed income portfolio, it said on Friday.
The fund, one of the world’s biggest investors, returned 7.9 percent last year but this was 0.8 percentage point below its benchmark with Europe’s poor growth and rising geopolitical tensions weighing on returns, the fund said. “This (weaker return) can be explained by a higher weight of European stocks and the shorter duration of the fund’s fixed income investments compared with the benchmark,” the fund said in a statement………………………………………..Full Article: Source

Everyone in Norway is a millionaire… on paper at least

Posted on 16 March 2015 by VRS  |  Email |Print

If you are dreaming of becoming a millionaire, getting the Norwegian nationality might be a good step. The Norwegian public pension fund, the largest sovereign fund in the world, posted last year a 7.6% yield, almost doubling its value in three years, announced Friday the Bank of Norway, which manages the fund.
Invested in stocks, bonds and real estate around the world, the fund weighed about $780 billion in late 2014, making each of the 5.2 million Norwegians a millionaire, at least on paper. In late 2011, the fund was worth about 350 billion dollars………………………………………..Full Article: Source

Russian Wealth Fund Falls Most Since 2010 as Deficit Widens

Posted on 04 March 2015 by VRS  |  Email |Print

Russia’s Reserve Fund dropped the most in more than four years last month as the government unsealed one of the country’s two sovereign wealth funds to cover a widening budget deficit.
The holdings shrank $8 billion to $77.1 billion, the lowest since December 2012, as the Finance Ministry used its maximum yearly allowance of 500 billion rubles ($8 billion) for budget financing, according to a Tuesday statement by the ministry in Moscow. The fund disposed of securities equal to $3.6 billion, 3.1 billion euros ($3.5 billion) and 510 million pounds ($769 million)……………………………………….Full Article: Source

Middle East and Africa private wealth set to hit $7.2t by 2018

Posted on 04 March 2015 by VRS  |  Email |Print

With private wealth in the Middle East and Africa projected to reach $7.2 trillion by 2018, Dubai International Financial Centre is well positioned with its laws and regulations modified specifically to help firms tap this opportunity and bring world-class wealth management competence into the region, Abdul Aziz Al Ghurair, vice-chairman of the Dubai International Financial Centre, or DIFC, said on Tuesday.
“The Middle East and North Africa is home to nine of the world’s largest sovereign wealth funds with assets of approximately $2 trillion. Other institutional wealth in the region includes GCC pension funds, whose assets are set to grow 8.8 per cent a year to reach $5 trillion by 2020.”………………………………………Full Article: Source

SOFAZ assets rose to $ 37.42 bln in 2014

Posted on 24 February 2015 by VRS  |  Email |Print

For current year estimated decline 3 billion in the wake value crude (Il Sole 24 Ore Thomson Financial) - Baku, Feb. 23 - Sofaz, the Sovereign Fund of Azerbaijan closes 2014 with assets worth a total of 37.42 billion dollars , up from 3.42 billion on an annual basis. During 2014, revenues primarily from royalties until amounted to 15.729 billion dollars.
The outputs in favor of the state budget were approximately 12.9 billion in addition to funding for other special initiatives: scholarships for deserving students abroad, support for refugees from the region of Nagorno Karabakh occupied by Armenia, financing Kars railway line Baku Tbilis connection with Turkey, the company ‘management of pipelines and refinery Tap and Tanap Star-Petkim in Turkey……………………………………….Full Article: Source

1MDB chief: PetroSaudi deal made RM1.78b in profits

Posted on 24 February 2015 by VRS  |  Email |Print

Troubled sovereign fund 1Malaysia Development Bhd (1MDB) claimed that a joint venture (JV) with a Saudi Arabian company six years ago, which critics claimed was shady, had earned it a profit of US$488 million (RM1.78 billion).
In a statement on the company’s website, 1MDB president Arul Kanda Kandasamy also claimed that the money it had invested in the JV had been converted into murabaha notes when the plan did not go through. Earlier reports claimed that 1MDB had put US$1 billion into the deal with PetroSaudi International Ltd, a company with an allegedly sketchy track record………………………………………..Full Article: Source

Show Proof Of 1MDB’s US$488m Profit Whereabouts, DAP Insists

Posted on 24 February 2015 by VRS  |  Email |Print

DAP’s National Publicity Secretary Tony Pua today demanded the country’s 1Malaysia Development Board (IMDB) president Arul Kanda Kandasamy show proof of the whereabouts of a purported US$488 million profit from its joint venture with PetroSaudi International.
“Arul Kanda Kandasamy proudly announced that the sovereign fund made the US$488 million of profit from the PetroSaudi transaction but what we have at hand is at least US$1.1 billion missing in unknown whereabouts. “The next question to ask is hence, where exactly is the US$488 million of paper profit Arul was talking about,” said Pua who is also MP for Petaling Jaya in a press conference at the DAP’s headquarters………………………………………..Full Article: Source

Russian Sovereign Wealth Funds: 2015 Drawdowns

Posted on 23 February 2015 by VRS  |  Email |Print

Back at the end of January, Russia’s sovereign wealth funds amounted to USD160 billion, with the government primarily taking a historically set approach (from 2003 onwards) of arms-length interactions with the funds’ management. This relative non-interference marked 2014 and is now set to be changed, with the government looking at using SWFs to provide some support for the investment that has been falling in the 2013-2014 period and is likely to fall even further this year.
Fixed investment in Russia fell 2.0% y/y in 2013, and by another 3.7% in 2014. Private investment is likely to fall by double digits in 2015, based on the cost of funding, lack of access to international funding and general recession in the economy. It is likely to stay in negative growth territory through 2016………………………………………..Full Article: Source

Mumtalakat given highest rating for transparency

Posted on 19 February 2015 by VRS  |  Email |Print

Bahrain Mumtalakat Holding Company (Mumtalakat), the investment arm of the Kingdom of Bahrain, was ranked among the world’s most transparent sovereign wealth funds as it was rated ten out of ten in the 2015 Linaburg-Maduell Transparency Index. The rankings represent an upgrade from the previous year’s score of 9/10, reflecting the ongoing commitment of Mumtalakat’s Board of Directors led by H.E. Shaikh Khaled bin Abdulla Al Khalifa, Deputy Prime Minister and Chairman of the Board and the company’s management team to transparency. Mumtalakat was one of only 11 funds in the world to be awarded full marks for transparency, out of a total of 52 funds surveyed.
The Linaburg-Maduell Transparency Index is one of the world’s most influential benchmarks in measuring sovereign wealth funds’ commitment to transparency. It was developed by Carl Linaburg and Michael Maduell in 2008 and is published quarterly by the Sovereign Wealth Fund Institute, outlining funds’ performance in ten key areas of transparency. (Press Release)

Permanent Fund gains 3.2 percent in most recent quarter

Posted on 19 February 2015 by VRS  |  Email |Print

The Alaska Permanent Fund returned 3.2 percent in the most recent quarter of fiscal 2015, bringing the year-to-date return to 1.9 percent.
The fund’s value is $52.8 billion as of Dec. 31, 2014, according to a news release. The statuatory net income — the amount used to calculate the annual Permanent Fund Dividend — was $597 million for the quarter………………………………………..Full Article: Source

Alaska Permanent gains 3.2% in quarter, surpassing benchmark by 110 basis points

Posted on 18 February 2015 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 3.2% for the quarter ended Dec. 31 and 1.9% fiscal-year-to-date, said a news release from the $52.8 billion sovereign wealth fund. The permanent fund’s strategic risk benchmark returned 2.1% and 0.5%, respectively, during the same periods. The permanent fund’s fiscal year ends June 30.
For the quarter, U.S. equity returned 5%; real estate, 4.6%; non-U.S. bonds, 2.8%; private equity, 2.2%; outsourced CIO allocations, 1.3%; U.S. bonds, 1.1%; global equity, 0.7%; infrastructure, 0.3%; absolute-return funds, 0.1%; private markets outsourced CIO allocations, -1.39%; non-U.S. equity, -3.7%; and multiasset emerging markets, -3.5 %………………………………………..Full Article: Source

Singapore’s Temasek Celebrates 40 Years of Development

Posted on 18 February 2015 by VRS  |  Email |Print

This year marks the 40th anniversary of Temasek, one of Singapore’s two sovereign wealth funds (SWFs), along with the Government Investment Corporation (GIC). Set up in 1974 as part of the newly independent city-state’s nation- building effort, Temasek has evolved from a sleepy holding company shepherding an initial portfolio of 35 inherited government-linked companies (GLCs) to a long-term, return-seeking investor with both wealth-management and development mandates.
Temasek is still a government holding company that acts as a shareholder on behalf of the Singaporean government. Today it pursues its developmental mandate by buying direct stakes mostly in Singaporean and Asian companies, and then reinvesting its proceeds from asset sales and dividend income into foreign assets, acting like a private equity fund………………………………………..Full Article: Source

Return on assets of the Oil Fund of Azerbaijan fell to 1.43%

Posted on 12 February 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan Republic (SOFAZ) reports about drop in return on assets in 2014. According to SOFAZ, by the end of the last year return on assets fell to 1.47% (to 1.43% taking into account gold) against 1.77% in 2013 and 2.16% in 2012. Return on assets reached its peak in 2007 (4.49%), and over the last 10 year it was estimated at the average level of 2.56%.
Last year investments into bonds brought 0.7% of return, investments into shares – 0.3%, investments into deposits – 0.18%, using money market instruments – 0.01%, investments into real estate – 0.24%. Investments into gold were unprofitable (-0.05%)………………………………………..Full Article: Source

The State Oil Fund of Azerbaijan announced growth of its assets by 3.42% in 2014 in spite of AZN 1.612 bn loss

Posted on 10 February 2015 by VRS  |  Email |Print

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) announced growth of its assets by 3.42% in 2014. According to the Fund, last year SOFAZ assets grew from $35.877 bn up to $37.104 bn. Budget revenues of SOFAZ for 2014 reached AZN 12.731 bn, while budget expenditures constituted AZN 10.117 bn. In other words, SOFAZ budget was executed with surplus of AZN 2.613 bn.
According to the Fund, revenue of AZN 12.343 bn was received from implementation of oil and gas agreements, including AZN 12.319 bn from the sale of profit oil and gas, AZN 1.7 million as acreage fees, AZN 8.9 million as transit payments, AZN 13.3 million as bonus payments and AZN 0.1 million from the sale of assets received from foreign companies. The revenues from managing assets of the Fund for 2014 amounted to AZN 387.2 million………………………………………..Full Article: Source

SOFAZ assets jump

Posted on 10 February 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ which is in charge of accumulating and managing the country’s oil and gas revenues, announced about the increase in its assets. The fund reported that its assets increased by 3.42 percent as of January 1, 2015, compared to $35.877 billion in early 2014 and exceeded $37.104.
SOFAZ revenues totaled 12.731 million manats while budget expenditures constituted 10.117, 2 billion manats. Revenue of 12.343, 8 billion manats was received from the implementation of oil and gas agreements, including 12.319, 8 billion manats from the sale of profit oil and gas, 8.9 million manats as transit payments, 13.3 million manats as bonus payments………………………………………..Full Article: Source

Australia’s Future Fund surges; aims to reduce risk

Posted on 06 February 2015 by VRS  |  Email |Print

Australian sovereign wealth fund, the Future Fund, said a dramatic fall in the local currency helped it return 13 percent in calendar 2014, as it moves to de-risk its portfolio to offset volatile commodity and equity markets. The fund set up in 2006 to cover public servant pensions, grew by nearly A$13 billion ($10 billion) to A$109 billion by Dec. 31, partly by boosting cash to 12.8 percent of its portfolio from 9 percent a year earlier.
The fund reduced its investments in equities over the year due to increased market volatility, said managing director David Neal. Developed global equities were cut to 20.9 percent of the portfolio from 24.5 percent a year earlier, and Australian equities to 8.8 percent from 10.1 percent………………………………………..Full Article: Source

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