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Sovereign Wealth Funds Briefing - Category | Performance more

Sovereign funds double deal value

Posted on 05 October 2015 by VRS  |  Email |Print

Sovereign wealth funds spent a total of US$24.9 billion (S$35.6 billion) on overseas acquisitions in the third quarter of 2015, almost double the previous quarter as they chased after trophy assets. Thomson Reuters data shows that these funds, which invest windfall revenues from oil and other commodity exports for future generations, were involved in 28 deals in the July-September period, down 10 from the previous quarter.
Singapore’s investment funds GIC and Temasek were part of separate consortiums that featured in the top two deals in that quarter. Total value is still shy of the US$30.6 billion peak reached in the last quarter of last year, when sovereign funds were buying up assets at their fastest rate since the financial crisis………………………………………..Full Article: Source

Sovereign wealth funds double deal volumes to $24.9 bln in Q3

Posted on 02 October 2015 by VRS  |  Email |Print

Sovereign wealth funds spent a total of $24.9 billion on overseas acquisitions during the third quarter of 2015, almost double the previous quarter as they chased after trophy assets. Thomson Reuters data shows that sovereign wealth funds, which invest windfall revenues from oil and other commodity exports for future generations, were involved in 28 deals during the July-September period, down 10 from the previous quarter.
Deal volumes are still shy of the $30.6 billion peak reached in the last quarter of 2014, when sovereign funds were buying up assets at their fastest rate since the financial crisis. But it marks a significant rebound from the first quarter when deal value slipped to $5.4 billion for 32 transactions………………………………………..Full Article: Source

Bahrain SWF overcomes bout of turbulence

Posted on 02 October 2015 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund, Mumtalakat, has weathered economic and political uncertainty both at home and throughout the wider Middle Eastern region, and is now back on a path to growth, with its aviation holdings being at the forefront of this turnaround.
More diversified than its Gulf Co-operation Council (GCC) peers, Bahrain’s economy has weathered the oil price downturn relatively well. Though government revenues have been slashed, the resilience of the country’s non-oil economy is expected to see gross domestic product growth (GDP) hit 3.6% by the end of 2015, according to the Bahrain Economic Development Board………………………………………..Full Article: Source

Fundo Soberano de Angola announced 2014 results

Posted on 01 October 2015 by VRS  |  Email |Print

The Fundo Soberano de Angola (FSDEA), Angola’s sovereign wealth fund, has announced the audited results for 2014, reflecting the Fund’s fiscal position and investment activity for the year. Deloitte & Touche independently audited the financial statements of the sovereign wealth fund for the second consecutive year.
The financial statements of the FSDEA show total assets of $4.88 billion as of 31 December 2014. Highlights of the investment portfolio of FSDEA at the end of the period are as follows: Fixed Income Assets were $2.7 billion representing 56 per cent of the investment portfolio; Investment funds in private equity, for infrastructure and hotels, accounted for $1.6 billion, equivalent to 34 per cent of the investment portfolio; 37 per cent of the investment portfolio was allocated in Europe, 34 per cent in Sub Saharan Africa, 18 per cent in North America and 11 per cent in the rest of the world………………………………………..Full Article: Source

Glencore shares collapse leaves wealth funds with big losses

Posted on 30 September 2015 by VRS  |  Email |Print

The further collapse of Glencore’s share price this week has spooked world markets as the prospect of a deeper commodities depression looms, while leaving its sovereign wealth fund investors with deep losses.
Glencore was heavily backed by Aabar Investments, a unit of the International Petroleum Investment Company (Ipic), when it floated its shares on the London Stock Exchange in 2011. Aabar at the time was a “cornerstone” investor, taking a US$1 billion stake when the company was initially valued at about $60bn, which made it Glencore’s largest investor apart from company executives………………………………………..Full Article: Source

Qatar fund loses $6bn in 10 days

Posted on 30 September 2015 by VRS  |  Email |Print

Qatar’s sovereign-wealth fund lost $5.9 billion on paper in 10 days from its stakes in Volkswagen and Glencore. Qatar Investment Authority, the biggest holder of VW’s preferred shares and the third-largest owner of its common shares, lost about $4.8 billion from its holdings of the automaker.
The wealth fund is also the largest investor in the mining company Glencore, a stake that declined by about $1.1 billion in the same period. The loss calculations assume the fund hasn’t added to or reduced its holdings since the latest disclosures. The ownership data are based on Bloomberg compilations from the latest available regulatory filings. Daniela Fleischmann, a spokeswoman for the fund at Finsbury, declined to comment on the holdings………………………………………..Full Article: Source

Most Alaskans will get record $2,072 each in oil money

Posted on 22 September 2015 by VRS  |  Email |Print

Oil prices are so low that they are hovering at benchmarks not seen in years, plunging oil-dependent Alaska into a crippling budget deficit. But the industry’s woes won’t affect how much the state’s oil investment account pays out to Alaskans, even though the government has been scrambling to pay the bills.
This year’s payout will be a record $2,072 for nearly every man, woman and child who lives in the 49th state. Last year’s check was $1,884, and the previous high was $2,069 in 2008. State officials had seventh-grader Shania Sommer announce the dollar amount at a news conference Monday, with Gov. Bill Walker declaring, “This really is about the next generation.”……………………………………….Full Article: Source

Abu Dhabi’s Mubadala posts sharp loss on oil price fall

Posted on 18 September 2015 by VRS  |  Email |Print

Abu Dhabi’s investment fund Mubadala on Thursday posted a 52-percent drop in profits for the first half of 2015, hit hard by the slide in global oil prices. The group tasked with diversifying the Gulf state’s energy-dependent economy has a global investment portfolio that includes US-based technology giant GE, EMI Music Publishing, and Italy’s Piaggio Aerospace.
Mubadala said profits in the first six months of the year stood at 625.5 million dirhams ($170.4 million) compared with 1.3 billion dirhams in the same period in 2014. Revenues came in at 15.9 billion dirhams, less than one percent lower from the year before………………………………………..Full Article: Source

SOFAZ announces 2016 revenues and expenditures

Posted on 15 September 2015 by VRS  |  Email |Print

State Oil Fund of Azerbaijan’s revenues are forecasted to make AZN 6,711.6 mln, down AZN 3,534.1 mln or 34.5% from 2015. According to Finance Ministry, the expenditures will make AZN 8,200.0 mln, down AZN 4,104.8 mln or 33.4% from 2015.
AZN 6,000,000 or 73.2% of revenues are planned to be transferred to the state budget, AZN 2,150.5 mln or 26.2% - to funding of several infrastructural projects, AZN 49.5 mln or 0.6% to State Programs on “Study of Azerbaijani youth abroad for 2007-2015”, “Study of young professionals abroad for 2016-2020” and “Improvement of Teaching ability in high schools and promotion of scientific researches”………………………………………..Full Article: Source

How Singapore has kept its AAA credit rating: Temasek’s Ho Ching

Posted on 08 September 2015 by VRS  |  Email |Print

Some of Singapore’s reserves are set aside for the future, but a portion of the earnings and returns generated are spent on the present generation, Temasek Holdings chief executive Ho Ching said in a Facebook note explaining how the Republic manages its reserves.
In the note posted on Monday morning, Ms Ho said that this is a way of ensuring fair sharing between generations and has helped Singapore maintain its position among the world’s few triple-A credit rated countries……………………………………….Full Article: Source

Nigeria Sovereign Wealth Fund records N5.17b profit

Posted on 08 September 2015 by VRS  |  Email |Print

The Nigeria Sovereign Investment Authority (NSIA), operators of the country’s $1.5 billion Sovereign Wealth Fund (SWF) has declared a N15.77 billion turnover for its 2014 operating year. The result is a huge improvement on the 2013 business year result of N525 million turnover, just as the Fund for the first time also netted a profit of over N5.17 billion as operation cost and taxes alone gulped the sum of N1.9 billion.
The Managing Director and Chief Executive Officer of the fund, Mr. Uche Orji revealed these figures in Abuja while shedding light on the status of the fund, which fully came into operation in 2013. He revealed that so far, the Fund has partnered with DFID, IFC, GE, Islamic Development Bank, Proparco and other private equity funds for co-investment opportunities and has equally within the period been admitted as a full member of the International Forum of Sovereign Wealth Funds (IFSWF) where it is currently ranked in global joint-second category for transparency in 2014/15 by the U.S.-based Sovereign Wealth Fund………………………………………..Full Article: Source

Sovereign Wealth Fund’s Comprehensive Income Rises By 90% To N29bn In Q1

Posted on 07 September 2015 by VRS  |  Email |Print

Sovereign Investment Authority (NSIA) which manages the nation’s Sovereign Wealth Fund (SWF), has recorded the first quarter 2015 results over 80 percent increase in NSIA’s comprehensive income to N28.7 billion with total assets increasing further to N206.2bn.
NSIA, jointly owned by all the three tiers of government, said at the weekend that its comprehensive income for the financial year ended December 2014 rose to N15.8 billion from N525 million while operating income rose to N3.9 billion from N1.5 billion. Similarly, the total assets rose to N177.8 billion from N157 billion………………………………………..Full Article: Source

Low oil prices limit Sovereign Wealth Fund deposits

Posted on 07 September 2015 by VRS  |  Email |Print

Nigeria’s sovereign wealth fund – which invests revenue generated when the oil price exceeds that budgeted by the government – has said that it does not expect any major payments from the government as the finances of Africa’s largest oil producer have been hit by a halving in crude prices over the past year, Bloomberg reports.
“The weakness in crude oil prices might persist for the foreseeable future, thereby potentially impacting on new contributions from the federation,” Nigerian Sovereign Investment Authority Chairman Mahey Rasheed said in its 2014 annual report released on Thursday. “Consequently, I do not anticipate a substantial growth in the funds under management through that source.”……………………………………….Full Article: Source

Oil fund reveals revenues from ACG, Shah Deniz fields

Posted on 04 September 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has earned $115.092 billion from 2001 to September 1, 2015 by developing the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea.
SOFAZ told Azertag State News Agency on September 2 that the fund gained $4.941 billion in January-August, 2015 within the framework of ACG project. The ACG fields have been active since 1997. Its production first started at the Chirag part of the block. It was followed by Azeri Project; Central Azeri in February 2005, West Azeri in December 2005, and East Azeri in October 2006………………………………………..Full Article: Source

Future Fund raises cash levels to 19.5%, should you?

Posted on 04 September 2015 by VRS  |  Email |Print

Cash is king so the saying goes and right now Australia’s sovereign wealth fund – the Future Fund -which was originally seeded with the government’s remaining shareholding in Telstra Corporation Ltd has cash to the tune of $23 billion, equating to a 20% portfolio allocation.
According to the Future Fund’s just released June Quarter Update, over the past 12 months the fund’s allocation to cash has grown from 11.2% to 19.5% making it the single largest asset class of the fund. The combined global equities allocation of developed and emerging market equities taken together however was larger at 27%; a further 6.8% of the fund was allocated to Australian equities………………………………………..Full Article: Source

Future Fund warns of lower returns ahead

Posted on 02 September 2015 by VRS  |  Email |Print

Australia’s sovereign wealth fund has warned of lower returns after a strong performance in the past year as the Future Fund reduces risk ahead of the transition to a tightened global monetary policy environment.
The Future Fund today said the total value of the fund rose to $117.2 billion over the 12 months to June 30, increasing $15.6bn in the period to give a return of 15.4 per cent. But managing director David Neal warned that “prospective returns will likely to be harder to achieve given the run up in asset prices and a somewhat mixed global economic and market outlook”………………………………………..Full Article: Source

Australia’s Future Fund Boosts Cash Levels as Global Risks Mount

Posted on 02 September 2015 by VRS  |  Email |Print

Australia’s sovereign wealth fund boosted its cash holdings to a six-year high to curb risks and said returns may be lower going forward amid concerns about the global economic outlook.
The Future Fund said cash made up 19.5 percent of its A$117.2 billion ($82 billion) of assets under management as of June 30, up from 11.2 percent last year. It returned 15.4 percent in 2014-15 and warned that “prospective returns will likely be harder to achieve given the run up in asset prices and a somewhat mixed global economic and market outlook.”……………………………………….Full Article: Source

Future Fund boosts cash levels above $20 billion as risks rise

Posted on 02 September 2015 by VRS  |  Email |Print

Australia’s sovereign wealth fund The Future Fund has shifted more of its assets into cash as it fears rising investment risks that won’t be matched by higher returns. In a portfolio update released on Wednesday, the fund showed it had moved an extra $5 billion into cash since its March update to make it more than 20 per cent of the total portfolio.
The cash balance has more than doubled since September last year, when the Future Fund held $10 billion. The Future Fund delivered a strong 15.4 per cent return for the financial year to June 30, or $15.6 billion. Investment returns are now at $56.7 billion, pushing its assets up to $117.2 billion………………………………………..Full Article: Source

The world’s biggest sovereign wealth fun is getting roughed up

Posted on 31 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the biggest in the world, is getting chewed. In the past month, the $US840 billion fund lost more than 5% on its investments, the fund’s CEO Yngve Slyngstad said, according to Bloomberg’s Saleha Mohsin.
That would be about $US40 billion. Somewhat notably, this news comes shortly after the huge sell-off in Chinese stocks. “Slyngstad has been seeking to expand the fund’s investments in China, which he sees as key to capturing more of global growth,” according to Bloomberg’s Mohsin………………………………………..Full Article: Source

State pension fund takes €10m hit as Chinese shares slump

Posted on 31 August 2015 by VRS  |  Email |Print

The Irish Strategic Investment Fund, the new name for the National Pension Reserve fund, had €39m invested in Chinese stocks at the end of last year, with millions more invested in other emerging markets. These investments have taken a beating in the past two weeks, as Chinese stocks plummeted following the publication of worse-than- expected Chinese economic data.
The data prompted the biggest sell-off of shares in the world’s second largest economy since 1996, with the CSI 300, an index of China’s largest companies, down a quarter in ten days. In total, Chinese shares tumbled €4.5 trillion between mid-June and late August………………………………………..Full Article: Source

$7.1 Trillion In Global Sovereign Wealth Fund Assets

Posted on 31 August 2015 by VRS  |  Email |Print

As Credit Suisse notes, “oil exporting countries hold about $1.7trn of official reserves but as much as $4.3trn in sovereign wealth fund assets.” And while the composition of the SWF asset pool is likely to be far more multifarious than the makeup of official FX reserves making it more difficult to assess i) how quickly they could be liquidated in a pinch, and ii) what effect that liquidation would have on USD assets, especially USTs, the important point is that if we have indeed entered a new era in which crude and commodities are destined to trade at comparatively depressed levels, the pressure on exporters to adapt to the new reality could force them to begin drawing down the vast store of SWF assets.
Thus, if one wants to understand how large the petrodollar unwind could potentially be in the worst case scenario, it’s important to take stock of SWF assets………………………………………..Full Article: Source

Norway’s Wealth Fund Lost More Than 5% in Past Month, CEO Says

Posted on 28 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s biggest, lost more than 5 percent on its investments in the past month, the head of the $840 billion fund said. The revelation follows the biggest selloff in Chinese stocks in two decades. The most recent developments suggest China’s transition to a more consumer-driven economy is proving difficult, Chief Executive Officer Yngve Slyngstad said Wednesday in the Staavi and Valebrokk podcast for newspaper VG.
“We can’t put everything away safely into the bank — we need to invest in risk,” Slyngstad said in the podcast. “We invest in bonds, we invest in stocks and we invest in real estate, in the world economy.”……………………………………….Full Article: Source

Norway oil fund hit by China - CEO

Posted on 28 August 2015 by VRS  |  Email |Print

Norway’s $830 billion sovereign wealth fund has shrunk by more than five percent in the past month in a global stock market rout led by uncertainty over the health of China’s economy, the fund’s chief executive said. He said 2015 so far had been “rather special” with currency swings and falls in commodity prices including oil. “Now there’s a lot happening in China, and that has big consequences for the whole world economy,” he said.
He defended the fund’s strategy of investing about 60 percent in equities, 35 in fixed income and five percent in real estate, saying the fund had to accept some risks and could not simply put its cash in a bank………………………………………..Full Article: Source

Norway Fund Could Suffer Heavy Loss From Stock-Market Rout

Posted on 25 August 2015 by VRS  |  Email |Print

With stocks forming nearly two-thirds of its $836 billion portfolio, Norway’s sovereign wealth fund, the world’s biggest, could stand among the day’s biggest losers by the closing bell on the New York Stock Exchange on Monday. If the stock-market rout continues, the fund’s third-quarter results will be poor, said Nordea Markets analyst Erik Bruce. “The fund’s strategy may be questioned,” he said.
The fund, which holds 1.3% of the world’s listed stocks, and 2.4% of all listed European shares, posted its first quarterly loss in three years last week. Norges Bank Investment Management, the arm of Norway’s central bank running the fund, blamed losses on its equity and fixed-income investment………………………………………..Full Article: Source

Alaska Permanent Fund gains 4.9% for fiscal year

Posted on 21 August 2015 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned a preliminary 4.9%, gross of fees, for the fiscal year ended June 30, surpassing its -1.4% benchmark, said spokeswoman Laura Achee. The sovereign wealth fund has a target asset allocation of 36% stocks, 20% bonds and cash, 12% real estate, 6% each private equity and absolute return, 4% infrastructure and the rest in “other.”
The top-performing asset class for the year was private equity, which returned 16.46%, followed by real estate at 9.8%; mezzanine debt, 9.64%; domestic equities, 7.18%; infrastructure, 4.73%; outsourced CIO allocations, 3.43%; absolute return, 1.71%; global equities, 1.23%; domestic fixed income, 1.15%; non-domestic fixed income, -2.37%; international equities, -5.2%; private markets OCIO allocations, -5.62%; and multiasset emerging markets, -7.4%………………………………………..Full Article: Source

Norway’s sovereign wealth fund posts first negative return in three years

Posted on 21 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund posted a -0.9 percent return, or a loss of 73 billion Norwegian kroner (8.79 billion U.S. dollars), in the second quarter of 2015, the first negative quarterly return in three years, the fund said on Wednesday.
Equity, fixed-income and real estate investments returned -0.2 percent, -2.2 percent and 2.0 percent respectively in the quarter, 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

Norway’s Giant Fund Buckles in Q2?

Posted on 21 August 2015 by VRS  |  Email |Print

Norway’s $870 billion sovereign wealth fund reported its first quarterly loss in three years on Wednesday, hauled down by sliding bond and stock markets. The world’s richest sovereign wealth fund owns about 1.3 percent of all global equities and has massive government and corporate bond holdings, so its performance and decisions are closely followed by investors across the world.
It lost 73 billion Norwegian crowns ($8.8 billion) in the second quarter – representing a negative return of about 1 percent on its investments. That was the first drop the fund had seen since the same period of 2012 – and a dramatic reversal from the record 401 billion crown gain in January-March this year………………………………………..Full Article: Source

Norway sovereign fund posts first negative return since 2012

Posted on 20 August 2015 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund, Norway’s public pension fund, reported Wednesday its first negative quarterly return in three years, pulled down by the bond market. The fund posted a -0.9 percent return.
Bonds, which represent 34.5 percent of its investment portfolio, yielded a negative return of 2.2 percent in the second quarter said Norway’s central bank, which manages the fund. “The return on fixed-income investments was affected by an increase in yields in the fund’s main markets,” fund director Yngve Slyngstad said in a statement………………………………………..Full Article: Source

Norway’s $870 billion oil fund had negative return in Q2

Posted on 20 August 2015 by VRS  |  Email |Print

Norway’s $870 billion sovereign wealth fund, the world’s biggest, had a negative return on investments in the second quarter as US stocks pulled down results and bonds fell, it said on Wednesday.
The fund lost 73 billion Norwegian crowns ($8.82 billion) in the quarter, a sharp reversal from the record 401 billion return seen from January to March but ahead of its own market benchmark. The April-June return corresponded to minus 0.9 per cent, down from 5.3 per cent in the first three months. A strengthening of the Norwegian crown cut a further 53 billion from the fund against an increase of 175 billion in the previous quarter………………………………………..Full Article: Source

Norway’s sovereign wealth fund suffers $8.8bn loss

Posted on 20 August 2015 by VRS  |  Email |Print

Norway’s $870 billion sovereign wealth fund reported its first quarterly loss in three years onWednesday, hauled down by sliding bond and stock markets. The world’s richest sovereign wealth fund owns about 1.3 percent of all global equities and has massive government and corporate bond holdings, so its performance and decisions are closely followed by investors across the world.
It lost 73 billion Norwegian crowns ($8.8 billion) in the second quarter — representing a negative return of about 1 percent on its investments. That was the first drop the fund had seen since the same period of 2012 — and a dramatic reversal from the record 401 billion crown gain in January-March this year………………………………………..Full Article: Source

Oil Cash Slump Triggers New Risks at World’s Biggest Wealth Fund

Posted on 20 August 2015 by VRS  |  Email |Print

The sudden slowdown in capital flows into the world’s biggest sovereign wealth fund will add to risks and make it more costly to adjust its strategy, its chief executive officer said. As crude has plunged below $50 a barrel, Norway’s fund has seen a precipitous drop in cash injections from the government. It received just 12 billion kroner ($1.4 billion) in the second quarter, compared with an average of 60 billion kroner over the past 10 years.
“We still have a net positive inflow, although it’s very small these days,” Yngve Slyngstad, head of the fund, said in an interview in Oslo on Wednesday. While it won’t immediately change its strategy, the fund won’t have “the same amount of cash to reinvest,” he said………………………………………..Full Article: Source

SG50: Temasek chairman tops list of National Day Award recipients

Posted on 10 August 2015 by VRS  |  Email |Print

Former Cabinet minister and Temasek Holdings chairman S Dhanabalan tops the list of 3,888 National Day Awards recipients this year, being awarded the nation’s highest honour, the Order of Temasek (First Class).
Immediate past president of the Singapore National Employers Federation Stephen Lee was conferred the Order of Nila Utama (First Class) for his contributions in building a strong tripartite partnership in Singapore………………………………………..Full Article: Source

WB predicts decline in Azerbaijan Oil Fund’s assets to $33.17 bn

Posted on 05 August 2015 by VRS  |  Email |Print

The embargo on the publication of the Country Partnership Framework (CPF), endorsed by the World Bank Board of Directors on 21 July, has been lifted.
According to CPF, the WB forecasts medium-term reduction of assets of the State Oil Fund of Azerbaijan (SOFAZ). Under the forecast, in 2015 the SOFAZ assets will total $37.1 bn, in 2016 - $34.8 bn, and in 2017 - $33.17 bn………………………………………..Full Article: Source

Wealth fund banks on Belt and Road to drive growth

Posted on 31 July 2015 by VRS  |  Email |Print

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

Singapore GIC Reports Higher Return, Cautions on Market Outlook

Posted on 30 July 2015 by VRS  |  Email |Print

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

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

Posted on 30 July 2015 by VRS  |  Email |Print

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

SWF: Temasek rides China wave to near 20% return

Posted on 29 July 2015 by VRS  |  Email |Print

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

Sovereign, pension funds lose ground for nine months straight

Posted on 28 July 2015 by VRS  |  Email |Print

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

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

Posted on 27 July 2015 by VRS  |  Email |Print

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

SOFAZ announces H1 statement on revenue and expenditure

Posted on 24 July 2015 by VRS  |  Email |Print

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

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

Posted on 24 July 2015 by VRS  |  Email |Print

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

Rwanda’s Sovereign Fund Muscle Growing Stronger

Posted on 22 July 2015 by VRS  |  Email |Print

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

The world’s biggest sovereign wealth funds

Posted on 20 July 2015 by VRS  |  Email |Print

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

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

Posted on 10 July 2015 by VRS  |  Email |Print

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

Temasek reports 19.2% investment gain for fiscal year

Posted on 08 July 2015 by VRS  |  Email |Print

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

SOFAZ revenues exceed expectations

Posted on 07 July 2015 by VRS  |  Email |Print

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

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

Posted on 06 July 2015 by VRS  |  Email |Print

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

China sovereign wealth fund expands by $125 billion

Posted on 06 July 2015 by VRS  |  Email |Print

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

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

Posted on 06 July 2015 by VRS  |  Email |Print

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

China sovereign fund net profit surges in 2014

Posted on 06 July 2015 by VRS  |  Email |Print

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

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