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Temasek Holdings could see drop in net portfolio value

Posted on 04 July 2016 by VRS  |  Email |Print

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

SOFAZ reveals revenues from profit oil, gas sales

Posted on 04 July 2016 by VRS  |  Email |Print

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

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

Posted on 01 July 2016 by VRS  |  Email |Print

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

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

Posted on 01 July 2016 by VRS  |  Email |Print

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

SOFAZ declares amount of revenues from two devaluations

Posted on 01 July 2016 by VRS  |  Email |Print

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

SOFAZ earns AZN 91M from rental property

Posted on 01 July 2016 by VRS  |  Email |Print

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

SOFAZ unveils its profit oil and gas revenues

Posted on 01 July 2016 by VRS  |  Email |Print

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

Sovereign wealth & buyout funds step up in June quarter

Posted on 01 July 2016 by VRS  |  Email |Print

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

Azerbaijan’s Oil Fund exits from losses of previous periods

Posted on 30 June 2016 by VRS  |  Email |Print

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

Putin praises Russian SWF

Posted on 17 June 2016 by VRS  |  Email |Print

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

Sovereign wealth funds stay confident as returns slide

Posted on 14 June 2016 by VRS  |  Email |Print

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

SWF acquisitions rise 62 percent, highest level since 2008

Posted on 13 June 2016 by VRS  |  Email |Print

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

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

Posted on 09 June 2016 by VRS  |  Email |Print

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

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

Posted on 06 June 2016 by VRS  |  Email |Print

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

Oil Fund celebrates its first 20 years

Posted on 01 June 2016 by VRS  |  Email |Print

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

Oil slump blamed for falloff in assets

Posted on 31 May 2016 by VRS  |  Email |Print

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

Permanent Fund narrows losses in 3Q

Posted on 27 May 2016 by VRS  |  Email |Print

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

SOFAZ revenues amount to $126 billion

Posted on 26 May 2016 by VRS  |  Email |Print

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

Bahrain’s Mumtalakat records $487m gross profit

Posted on 24 May 2016 by VRS  |  Email |Print

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

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

Posted on 24 May 2016 by VRS  |  Email |Print

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

Bahrain sovereign fund Mumtalakat 2015 net profit drops 68.7 pct

Posted on 23 May 2016 by VRS  |  Email |Print

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

Sovereign Wealth Fund hits N358b

Posted on 19 May 2016 by VRS  |  Email |Print

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

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

Posted on 18 May 2016 by VRS  |  Email |Print

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

Malaysia Q1 GDP beats expectations

Posted on 16 May 2016 by VRS  |  Email |Print

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

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

Posted on 13 May 2016 by VRS  |  Email |Print

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

The Middle East’s 10 Biggest Sovereign Wealth Funds (For Now)

Posted on 12 May 2016 by VRS  |  Email |Print

Saudi Arabia’s plan to create a $2 trillion sovereign wealth fund has set an ambitious new standard for state-run investment vehicles. These funds are an increasingly common sight around the world, but particularly in the Middle East, where oil-rich governments like to squirrel away money when oil prices are high in preparation for leaner times.
The Sovereign Wealth Fund Institute (SWF Institute) lists 79 funds in its rankings, with 20 of them in the Middle East and North Africa. Now that the price of a barrel of oil has slumped, these stores of wealth are coming into play, helping governments to deal with their budget deficits so they can still provide all the services their citizens have come to expect. But which ones have the most money?……………………………………….Full Article: Source

SOFAZ reveals revenues from largest oil project

Posted on 09 May 2016 by VRS  |  Email |Print

Revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the development project of Azeri-Chirag-Guneshli (ACG) block of oil and gas fields totaled $118.502 billion from early 2001 to May 1, 2016, SOFAZ told Trend May 4.
“The Fund’s revenues from the project totaled $1.493 billion in January-April 2016, some $356 million of which accounted for April,” said SOFAZ. A contract for development of ACG block of fields was signed in 1994. The proven oil reserve of the block nears one billion tons………………………………………..Full Article: Source

Outflows from Norwegian oil fund will not change strategy, says NBIM

Posted on 05 May 2016 by VRS  |  Email |Print

Falling inflows from oil revenue to Norway’s leviathan Government Pension Fund Global (GPFG) will not change the NOK7.1trn (€762bn) sovereign wealth fund’s investment strategy or its need for diversification, according to the fund’s second in command.
Trond Grande, deputy chief executive at Norges Bank Investment Management (NBIM), which manages the GPFG, said in an interview with IPE: “The fund and its investment strategy are basically the same, regardless of growing much more or when there are withdrawals from the fund.”……………………………………….Full Article: Source

Saudi PIF, SAMA Foreign Holdings among largest sovereign wealth funds

Posted on 03 May 2016 by VRS  |  Email |Print

Saudi Arabia’s Public Investment Fund (PIF) is now the world’s 13th largest sovereign wealth fund with assets amounting to $160 billion by the end April, the Sovereign Wealth Fund Institute (SWFI) said in its latest report.
The PIF secured its ranking after gaining $154.7 billion since the end of last year. The kingdom’s SAMA Foreign Holdings fund, which placed fourth on the list, saw its assets fall by $36.3 billion over the same period to $632.3 billion. Meanwhile, the Abu Dhabi Investment Authority (ADIA) ranked second on the list with $773 billion worth of assets………………………………………..Full Article: Source

NSIA retains best transparent African Sovereign Wealth firms’ rating

Posted on 03 May 2016 by VRS  |  Email |Print

The Nigerian Sovereign Investment Authority (NSIA) has retained its strong position in the latest first quarter 2016 Linaburg-Maduell Transparency Index concluded by the Sovereign Wealth Fund Institute (SWFI). The Linaburg-Maduell Transparency Index, the internationally-renowned analyst of sovereign wealth funds, was developed at the Sovereign Wealth Fund Institute in 2008 by Carl Linaburg and Michael Maduell.
It is an internationally-recognised method of rating the transparency of sovereign wealth funds around the world. For the second consecutive year, the Nigerian Sovereign Wealth Fund (SWF) scored nine out of 10 points, earning its rank in the league of the top rated global sovereign wealth funds in terms of compliance with international best practices………………………………………..Full Article: Source

Norway’s Government Pension Fund Global reports first-quarter loss

Posted on 02 May 2016 by VRS  |  Email |Print

Norway’s giant sovereign wealth fund lost NOK85bn (€9.2bn), or 0.6%, in the first three months of this year, with investments in two of the fund’s three asset classes shrinking in overall value during the the period.
According to its first-quarter report, the Government Pension Fund Global’s (GPFG) equity investments made a loss of 2.9% between January and March, fixed income assets a positive return of 3.3% and property investments a loss of 1.3%………………………………………..Full Article: Source

Norway’s sovereign fund posts negative return

Posted on 02 May 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s biggest, posted a negative return in the first quarter after being tapped by the government to balance its budget for the first time ever. The fund registered a negative return of 0.6 percent, or 85 billion kroner ($10.4 billion, 9.2 billion euros), putting its value at 7.07 trillion kroner ($867 billion, 753 billion euros) at the end of the quarter, the central bank said on Thursday.
Shares, which accounted for 59.8 percent of the fund’s portfolio, and real estate, which represented 3.1 percent, dragged the fund down, posting negative returns of 2.9 and 1.3 percent respectively………………………………………..Full Article: Source

Norway’s sovereign wealth fund posts $US10b quarterly loss

Posted on 29 April 2016 by VRS  |  Email |Print

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

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

Posted on 29 April 2016 by VRS  |  Email |Print

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

Norway’s sovereign wealth fund hit by global stock turmoil

Posted on 29 April 2016 by VRS  |  Email |Print

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

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

Posted on 26 April 2016 by VRS  |  Email |Print

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

Future Fund cash holdings rise again after first-quarter loss

Posted on 25 April 2016 by VRS  |  Email |Print

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

Future Fund posts first quarterly loss since 2012

Posted on 22 April 2016 by VRS  |  Email |Print

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

SOFAZ assets gets 2% rise

Posted on 21 April 2016 by VRS  |  Email |Print

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

Commodities slump stalling sovereign wealth growth

Posted on 21 April 2016 by VRS  |  Email |Print

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

Global sovereign wealth fund assets rise to $6.51 trillion

Posted on 20 April 2016 by VRS  |  Email |Print

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

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

Posted on 20 April 2016 by VRS  |  Email |Print

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

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

Posted on 04 April 2016 by VRS  |  Email |Print

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

SOFAZ reveals revenues from ACG field

Posted on 24 March 2016 by VRS  |  Email |Print

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

SOFAZ reveals revenues from largest oil project

Posted on 23 March 2016 by VRS  |  Email |Print

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

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

Posted on 22 March 2016 by VRS  |  Email |Print

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

Reality Bites For OPEC’s Sovereign Wealth Funds

Posted on 17 March 2016 by VRS  |  Email |Print

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

SOFAZ headquarters rated “Good”

Posted on 16 March 2016 by VRS  |  Email |Print

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

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

Posted on 15 March 2016 by VRS  |  Email |Print

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

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

Posted on 14 March 2016 by VRS  |  Email |Print

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

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