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Sovereign Wealth Funds Briefing - Category | Performance more

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

Temasek Named Most Active Sovereign Wealth Fund Again

Posted on 14 March 2016 by VRS  |  Email |Print

There were 92 sovereign wealth funds in the world managing over $7 trillion in 2014, an increase of $1.2 trillion since the previous year, as per the 4th Sovereign Wealth Fund Report by ESADE, KPMG and ICEX-Invest in Spain. Since 2010, 22 new funds have been created, and 25 countries are considering the setting of a new fund.
As per the report, SWFs are concentrated mainly in four areas, Middle East, China, Southeast Asia and Norway. SWFs invested nearly $90 billion in 140 deals during 2014. “On the podium of the most active funds, Temasek led the field again for the second consecutive year, with more than 40 transactions, followed by GIC with 23………………………………………..Full Article: Source

Norway’s massive sovereign wealth fund posts weak gains

Posted on 10 March 2016 by VRS  |  Email |Print

The world’s largest sovereign wealth fund gained 2.7 percent on its investments last year, the weakest return in four years. The fund has divested from environmentally destructive companies.
Norway’s sovereign wealth fund ended last year with assets of 796 billion euros ($874 billion) despite the global market turmoil, the Nordic country’s central bank said on Wednesday. The fund gained 35 billion euros ($39 billion), the lowest return since 2011………………………………………..Full Article: Source

Weakest return for Norway sovereign wealth fund since 2011

Posted on 10 March 2016 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund, Norway’s public pension fund, said Wednesday it posted a 2.7-percent return in 2015 owing to real estate and the global stock market recovery.
It was however the fund’s weakest performance since 2011. Investments posted returns of 334 billion kroner (35.6 billion euros, $39 billion at current exchange rates) last year, boosting the fund’s value to 7,475 billion kroner (796 billion euros, $874 billion) as of the end of December………………………………………..Full Article: Source

SOFAZ reveals revenues, expenditures in 2015

Posted on 03 March 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, which accumulates and manages the energy-rich country’s oil and gas revenues, has revealed its revenues and expenditures for the period of January-December 2015.
The Fund reported on March 1 that during the reported period, its budget revenues exceeded 7.721 billion manats ($4.898 billion), while budget expenditures constituted 9.188 billion manats ($5.829 billion)………………………………………..Full Article: Source

SOFAZ gets 9.5% decline in assets

Posted on 02 March 2016 by VRS  |  Email |Print

Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-December, 2015 reached 7,721.1 million manats, while budget expenditures constituted 9,187.7 million manats.
SOFAZ told APA-Economics that revenue of 7,385.5 mln. manats was received from implementation of oil and gas agreements, including 7,369.6 mln. manats from the sale of profit oil and gas, 2.2 mln. manats as acreage fees, 2.1 mln. manats as bonus payments and 11.6 mln. manats as transit payments………………………………………..Full Article: Source

Temasek’s energy, bank holdings take a hit

Posted on 26 February 2016 by VRS  |  Email |Print

Singapore investment firm Temasek Holdings has racked up paper losses on its investments in banks and energy companies amid the global economic turmoil. Deepening pressures within the banking industry, for instance, have taken a toll on the companies in the financial services sector that Temasek has invested in.
With crude prices down more than 70 per cent - at dismal levels of US$34 a barrel - Temasek’s picks in the energy and services sector, comprising 5 per cent of the firm’s portfolio, have also not been spared the bloodbath that has affected the industry worldwide………………………………………..Full Article: Source

Norway oil fund close to peak, uncertain returns ahead

Posted on 19 February 2016 by VRS  |  Email |Print

The size of Norway’s $810 billion sovereign wealth fund, the world’s biggest, may have peaked as oil prices collapsed and Oslo gets ready for its first net cash withdrawal, the central bank said.
Built from oil and gas revenues over a 20-year period, the fund is invested in foreign stocks, bonds and real estate to share the country’s hydrocarbon wealth with future generations and avoid creating asset bubbles at home. The fund’s rules allow the government to withdraw up to four percent of its value annually and its growth in previous years had always exceeded the level of withdrawals………………………………………..Full Article: Source

KIC CEO promises to expand asset trust to $200 billion by 2020

Posted on 18 February 2016 by VRS  |  Email |Print

Having reported a negative return last year, South Korea’s sovereign wealth fund Korea Investment Corp. (KIC) decided to up the scale of asset trust by 2.5 times from current levels to $200 billion by 2020. The corporation will install the offices of auditor and risk management officer to reinforce oversight of the state asset agency.
KIC CEO Eun Sung-soo said KIC will incrementally increase its asset from last year’s $80 billion to $200 billion by 2020 to raise efficiency in asset management………………………………………..Full Article: Source

Alaska Permanent returns 2.1% for quarter, missing its benchmark

Posted on 17 February 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 2.1% for the quarter ended Dec. 31 and -2.2% for the first half of its fiscal year, said a news release from the $52 billion sovereign wealth fund. The permanent fund’s performance benchmark returned 3.1% and -2.6%, respectively, during the same periods. The sovereign wealth fund’s fiscal year started July 1.
“A rally this fall helped make up some of the ground lost in the first quarter, but in the end it wasn’t enough to bring the permanent fund back to positive performance for the first half of the fiscal year,” said Angela Rodell, CEO/executive director, in the news release. “The slowdown in the Chinese economy and drops in commodity prices, including oil, have weighed on global markets, bringing a several-year period of growth to an end.”……………………………………….Full Article: Source

Kuwait sovereign fund’s assets reach $535bn

Posted on 15 February 2016 by VRS  |  Email |Print

The assets of Kuwait sovereign wealth fund are estimated at $535 billion at the end of 2015, said Standards & Poor’s (S&P). Global oil prices declined further since the agency’s latest rating in August 2015. The agency had revised its forecasts for oil prices in January, expecting them to see more decline from 2016 to 2019.
S&P maintained Kuwait’s credit rating at ‘AA’, with Stable Outlook. The agency projected the state’s GDP and public spending to fall, stating that Kuwait has built huge net financial assets over the past years and these assets will help it overcome the current decline in oil prices………………………………………..Full Article: Source

SOFAZ earns 27 million pounds on real estate in London

Posted on 12 February 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ earned around 27 million pounds on real estate in London as of January 1, 2016. The real estate, located at Saint James Street in London, was purchased by SOFAZ for 177.35 million pounds in 2012, the Company reported on February 10.
“After the real estate was leased until late 2015, SOFAZ received income worth about 27 million pounds,” the statement said. “Currently, this real estate is estimated at 213 million pounds. Taking into account the high liquidity on the real estate market in London, this asset can be sold at a specified price within a short period.”……………………………………….Full Article: Source

Azeri state fund sees smaller 2016 revenues, says will support manta

Posted on 10 February 2016 by VRS  |  Email |Print

Azeri state oil fund SOFAZ expects less revenue this year than envisioned and a lower assets valuation due to falling oil prices, but will continue to support the country’s ailing manat currency, its deputy CEO said on Tuesday. The Caucasus nation of about 10 million people relies on oil and gas exports to cover 75 percent of its revenues, but the oil price nosedive has triggered a plunge in the manat.
In a budget approved earlier, SOFAZ, a $34 billion sovereign wealth fund, projected revenue of $4.2 billion in 2016. “Taking into account that the average price of oil is expected to be lower than the budget assumption of $50 per barrel, (our) revenues are expected to be lower for 2016,” deputy CEO Israfil Mammadov said in an e-mailed answer to Reuters questions………………………………………..Full Article: Source

Abu Dhabi sovereign wealth fund assets to fall by 5% by end-2016 – Fitch

Posted on 04 February 2016 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, is expected to see its assets decline by just over 5 percent this year as the UAE capital attempts to balance its books on the back of the oil price slide.
Ratings agency Fitch said it projected a fall from an estimated $502 billion by end-2014 to $475 billion as outflows outpace investment returns. Abu Dhabi’s budget deficit widened from 7.2 percent in 2014 to 13.2 percent last year, prompted by a drop in oil and gas income………………………………………..Full Article: Source

SAMA’s net foreign assets reach SR2.283 trillion

Posted on 29 January 2016 by VRS  |  Email |Print

Net foreign assets at Saudi Arabian Monetary Agency (SAMA) declined 3.1 percent in December from the previous month to SR2.283 trillion ($609 billion), the central bank announced. Assets dropped 15.9 percent from a year earlier to their lowest level since August 2012. They reached a record high of $737 billion in August 2014 before starting to shrink.
The central bank, which acts as Saudi Arabia’s sovereign wealth fund, has been drawing down its assets to cover a huge state budget deficit caused by a plunge in oil prices. The bulk of foreign assets are believed to be denominated in US dollars………………………………………..Full Article: Source

Australia’s Future Fund Returns 8.4% in 2015, Expands Cash Level

Posted on 28 January 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund returned 8.4 percent last year to beat global and domestic benchmarks, as it increased cash holdings to pare risk. Future Fund, which manages A$118.4 billion ($83 billion), trimmed its global stock and private-equity investments, it said in an e-mailed statement Wednesday.
It warned that future returns may be lower as central banks withdraw monetary stimulus. “We have gradually reduced the level of risk in the portfolio through 2015, reflecting our view of the investment environment,” Managing Director David Neal said in the statement………………………………………..Full Article: Source

Future Fund on defensive with 20pc cash weighting

Posted on 28 January 2016 by VRS  |  Email |Print

The managing director of the Future Fund has warned investors are not being adequately compensated for a rising number of risks in global markets, including energy prices, volatility in China, Europe’s refugee crisis and the US Federal Reserve’s actions.
The $118 billion sovereign wealth fund, which reported an 8.4 per cent return for 2015, has increased its weighting to cash above 20 per cent of its portfolio as it remains concerned about valuations in global markets, even as sharemarkets have been battered in a tumultuous start to 2016………………………………………..Full Article: Source

Happy returns for the Future Fund, for now

Posted on 28 January 2016 by VRS  |  Email |Print

As Australia’s $118 billion sovereign wealth fund prepares to celebrate its first decade in operation, it can look back with some satisfaction at a track record of beating its benchmark through years of volatile investment markets.
But, as the Future Fund has been warning would happen for the past couple of years, its returns slowed sharply in the latest six-month period as global markets shuddered at the prospect of some central banks winding down stimulus and growing divergence between major economies………………………………………..Full Article: Source

Boom, Bust, or Broke: What ‘Replumbing’ the Permanent Fund Would Look Like

Posted on 28 January 2016 by VRS  |  Email |Print

“Re-plumbing” the Permanent Fund is the most significant piece of Walker’s plan to close the budget deficit, projected to be $3.5 billion in Fiscal Year 2017. Attorney General Craig Richards told State Affairs members Tuesday that SB 128 will transition Alaska from an oil-based budget to one based on financial assets.
Stocks have performed better than oil since the Great Depression. They have significantly outperformed oil since about 1950, as Harvard Kennedy School of Government Fellow Malan Rietveld showed the committee………………………………………..Full Article: Source

Australia’s Future Fund delivers 8.4 pct, lowest return since 2011

Posted on 27 January 2016 by VRS  |  Email |Print

Australia’s sovereign wealth manager, the Future Fund, on Wednesday said it returned 8.4 percent in the year ending Dec. 31, its lowest annual return since 2011 as it boosts cash holdings amid greater global markets volatility.
Global markets have been unusually volatile since last August, largely led by fears of slowing growth in China and uncertainty over the timing of U.S. interest rate hikes. Future Fund Managing Director David Neal said the fund has “gradually reduced the level of risk” in the portfolio through 2015………………………………………..Full Article: Source

Sovereign Wealth Funds Are Driving Asset Slump, Jefferies Says

Posted on 20 January 2016 by VRS  |  Email |Print

Sovereign wealth funds from energy-producing countries are exacerbating a global market rout by selling off assets to meet their financial commitments amid slumping oil prices, according to Jefferies LLC.
The sales mark a new phase for the countries, after they tried boosting oil production and printing currency to make their payments, David Zervos, chief market strategist at New York-based Jefferies, wrote Monday in a note to clients………………………………………..Full Article: Source

Future Fund awarded sovereign investor of 2015

Posted on 20 January 2016 by VRS  |  Email |Print

Australia’s $118 billion sovereign wealth fund has been recognised for its restrained decision not to increase risk to chase returns in 2015, collecting sovereign investor of the year at the 2016 Central Banking Awards.
Managing director of the Future Fund, David Neal, said fund had to make certain it was not brought in to financial crisis aftershocks. “While the global economy has continued to heal following the 2008-09 financial crisis, significant imbalances persist and the potential for missteps and shocks remains,” Neal said………………………………………..Full Article: Source

The Trouble With Sovereign-Wealth Funds

Posted on 20 January 2016 by VRS  |  Email |Print

Russian President Vladimir Putin, center, spoke with the emir of Kuwait, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, in November in Russia at the time the Russian Direct Investment Fund signed an agreement with Kuwait’s sovereign-wealth fund, the Kuwait Investment Authority, to expand their partnership.
Kazakhstan’s $55 billion sovereign-wealth fund helped pull the country through the global financial crisis and offered funding for the country’s bid to host the 2022 Winter Olympics. But the collapse in oil prices has hit Kazakhstan and its fund, Samruk-Kazyna JSC, hard. In October, the fund borrowed $1.5 billion in its first syndicated loan to help a cash-strapped subsidiary saddled with a troubled oil-field investment………………………………………..Full Article: Source

Malaysia accounts for 55.1% of Khazanah’s realisable asset value

Posted on 14 January 2016 by VRS  |  Email |Print

Malaysia accounted for about 55.1% of Khazanah Nasional Bhd’s realisable asset value (RAV) by geographic exposure in 2015. The sovereign wealth fund said on Wednesday that overseas investments accounted for the remainder of RAV.
The RAV reflected Khazanah’s internationalisation strategy in 2015, which saw the setting up of a London office by its unit subsidiary Khazanah Europe Investment Ltd. The London office is Khazanah’s fifth regional office after Beijing, Mumbai, San Francisco and Istanbul………………………………………..Full Article: Source

Sovereign Wealth Funds Spent Less in 2015

Posted on 12 January 2016 by VRS  |  Email |Print

The total direct transaction amount in 2015 by sovereign funds is US$ 114 billion compared to US$ 122 billion in 2014. However, when calculating all public investors, which includes large public pensions, direct transactions total US$ 211 billion in 2015 versus US$ 186 billion in 2014.
Leading the charge for asset-rich pensions were Canadian institutional investors such as Canada Pension Plan Investment Board (CPPIB), Ontario Teachers’ Pension Plan (OTPP) and Caisse de dépôt et placement du Québec (CDPQ)………………………………………..Full Article: Source

Sovereign wealth fund deals fall 13 pct in fourth quarter

Posted on 11 January 2016 by VRS  |  Email |Print

Sovereign wealth funds made $23.5 billion worth of overseas acquisitions in the fourth quarter of 2015, down 13 percent from the third quarter, although big infrastructure and property deals remained popular.
Thomson Reuters data showed that sovereign wealth funds (SWFs), which invest windfall revenues from oil and other commodities for future generations, were involved in 25 deals during the October-December period, down six from the previous quarter. Over the full year, SWFs invested in 127 transactions, down from 148 in 2014. The total value of 2015’s deals amounted to $68.7 billion, down 6.9 percent from $73.8 billion in 2014………………………………………..Full Article: Source

Top 10 Sovereign Wealth Fund Game-Changers of 2015

Posted on 05 January 2016 by VRS  |  Email |Print

For sovereign funds regarding the falling price of oil, it is worth recalling Friedrich Nietzsche’s aphorism: “That which does not kill us makes us stronger.” Sovereign funds in the Gulf have increased exercising discipline from the sizable allocations of 2009 and 2010. SWFI research staff have composed the top ten game-changers for sovereign wealth funds in 2015.
10.) Smart Beta Lives: Many active investment managers despise the term “smart beta.” According to Investopedia.com, smart beta was the most searched for term in its dictionary in 2015. Google searches for smart beta continue to grow. Wealth funds continue to tinker with smart beta strategies. Some sovereign funds and pensions even partner with providers to back new product launches………………………………………..Full Article: Source

SOFAZ reveals volume of revenues for entire period of its activity

Posted on 04 January 2016 by VRS  |  Email |Print

The revenues of the State Oil Fund of Azerbaijan (SOFAZ) for the entire period of its activity totaled $124.9 billion, SOFAZ told Trend Dec.29. The State Oil Fund was created in 1999 and its assets were equal to $271 million that time. The total expenditures of SOFAZ for the entire period of its activity amounted to $86.3 billion, including transfers to the state budget - $78.4 billion.
“At the same time, for the whole period the extra-budgetary expenditures of the fund due to the difference in the exchange rate of the currencies in the investment portfolio of SOFAZ, amounted to about $5 billion,” said the fund………………………………………..Full Article: Source

‘Politicised’ SWFs earn lower returns

Posted on 30 December 2015 by VRS  |  Email |Print

Sovereign wealth funds that are “highly politicised” earn lower returns on their stock-market investments than more independent peers, according to new academic research. An analysis of more than 1,000 sovereign wealth fund investments in publicly traded companies found that shares in those companies rose less following a purchase by a sovereign wealth fund compared with almost 6,000 comparable stock purchases by private investors.
The so-called SWF discount was worse when funds with strict government oversight bought shares. There was no discount when Norway’s independently managed sovereign wealth fund bought shares, according to Veljko Fotak of the University at Buffalo, who wrote the report with Bernardo Bortolotti of Turin University in Italy and William Megginson of the University of Oklahoma………………………………………..Full Article: Source

‘Politicized’ Sovereign Funds Earn Lower Returns, Study Says

Posted on 28 December 2015 by VRS  |  Email |Print

Sovereign-wealth funds that are “highly politicized” earn lower returns on their stock-market investments than more independent peers, according to new academic research. An analysis of more than 1,000 sovereign-wealth fund investments in publicly traded companies found that shares in those companies rose less following a purchase by a sovereign-wealth fund compared with almost 6,000 comparable stock purchases by private investors.
The so-called SWF discount was worse when funds with strict government oversight bought shares. There was no discount when Norway’s independently managed sovereign-wealth fund bought shares, according to Veljko Fotak of the University at Buffalo……………………………………….Full Article: Source

HKMA long-term growth portfolio yields 13.5% as of end-2014

Posted on 16 December 2015 by VRS  |  Email |Print

Hong Kong Monetary Authority‘s Long-term Growth Portfolio (LTGP) has yielded an internal return ratio of 13.5 percent as of the end of last year since its inception about seven years ago, a senior official said. Eddie Yue, deputy chief executive of HKMA, said in an article published on the monetary authority’s website that the LTGP’s investment mandates are in line with the goals set forth for the government’s Future Fund.
The government had earlier decided to establish a long-term Future Fund with half of the Land Fund to be entrusted in the LTGP. The portion will be worth about HK$100 billion as part of the larger Land Fund that amounts to over HK$200 billion………………………………………..Full Article: Source

Sovereign Wealth Funds Grow Assets in 2015

Posted on 14 December 2015 by VRS  |  Email |Print

In line with the release of the 2015 Preqin Sovereign Wealth Fund Review in April 2015, we found that AUM for sovereign wealth funds globally reached $6.31tn as at March 2015 – increasing by more than $900bn in 18 months. This is despite falling commodity and oil prices, which many of these institutions rely on for funding. Assets therefore grew from continued funding from reserves and governments, as well as from investment returns.
Alternative assets are an increasingly 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. As at December 2015, total assets for sovereign wealth funds that are looking to invest in private equity stands at $6.0tn………………………………………..Full Article: Source

Saudi Arabia, UAE sovereign funds rank among world’s largest: SWFI

Posted on 11 December 2015 by VRS  |  Email |Print

Saudi Arabia and the United Arab Emirates’ sovereign wealth funds— at $668.6 billion and $773 billion, respectively— ranked as the Middle East’s largest in December 2015, according to a report issued by the Sovereign Wealth Fund Institute (SWFI).
The asset value of the kingdom’s SWF dropped by about $3.2 billion q-o-q since the institute’s last quarterly report. It ranked as the world’s fourth largest, just behind China. Meanwhile, the Abu Dhabi Investment Authority (ADIA) ranked second on the list after Norway. The Kuwait Investment Authority (KIA) claimed the fifth spot with assets worth $592 billion, while the Qatar Investment Authority (QIA) placed ninth at $256 billion………………………………………..Full Article: Source

Bypassing investment banks in bond sales helps GIC boost returns

Posted on 10 December 2015 by VRS  |  Email |Print

Acting as a cornerstone investor in bond deals is helping GIC boost returns on its fixed-income portfolio as yields persist near record lows and risks start to increase in the bond market, according to Singapore’s sovereign-wealth fund.
Companies that issue bonds directly to GIC when it acts as an anchor investor save on underwriting fees and part of those savings are passed on to the wealth fund, Chief Investment Officer Lim Chow Kiat said in an interview with the London-based Sovereign Wealth Center published Tuesday………………………………………..Full Article: Source

FSDEA ranks high on Sovereign Wealth Fund Institute Transparency Index

Posted on 10 December 2015 by VRS  |  Email |Print

Fundo Soberano de Angola (FSDEA), Angola’s sovereign wealth fund, retained its strong position in the latest Q2 2015 Linaburg-Maduell Transparency Index concluded by the Sovereign Wealth Fund Institute (SWFI). FSDEA scored eight out of ten points, earning its rank in the league of the top rated global sovereign wealth funds in terms of compliance with international best practice.
“These positive ratings underline FSDEA’s resolve to operate in accordance with the highest professional, ethical and responsible manner,” José Filomeno dos Santos, Chairman of the Board of Directors of FSDEA, said. “The Angolan government set stringent mechanisms to ensure that FSDEA adheres to the industry’s best practice of sovereign wealth fund management. In 2016 and beyond, we will continue to comply with these principles to meet the ultimate aim of being accountable to the people of Angola.”……………………………………….Full Article: Source

World’s largest public pension fund posts $64 billion loss

Posted on 01 December 2015 by VRS  |  Email |Print

Japan’s public pension reserve fund, the largest of its kind in the world, posted its biggest quarterly loss since the financial crisis for the quarter through September, dragged down by a global stock selloff. The Government Pension Investment Fund lost ¥7.89 trillion ($64.22 billion) in the three months to September, or 5.59%, bringing the value of its total assets to ¥135.1 trillion. That was the largest percentage-point fall on quarter since 2008.
The release gives a view of how pension funds, endowments and sovereign-wealth funds around the world were hit by a global selloff that erased trillions of dollars in value from financial markets amid concerns about growth in China and expectations for an interest-rate increase in the U.S. Norway’s sovereign-wealth fund, the largest in the world, lost 4.9% in the third quarter, its worst quarter in four years………………………………………..Full Article: Source

Alaska Permanent falls 4.4% in third quarter

Posted on 24 November 2015 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned -4.4% for the quarter ended Sept. 30, ahead of its -5.5% benchmark, said a news release from the $50.5 billion sovereign wealth fund. Falling global equity markets drove much of the decline in the fund’s first quarter of its fiscal year.
Domestic equities returned -7.7% for the quarter; international equities, -12.9%; and global equities, -8.8%. Top performers included private equity and real estate, which returned 5.5% and 3.8%, respectively. U.S. bonds were relatively flat at 0.2%. International bonds, infrastructure and absolute return were slightly negative, returning -1.6%, -0.5% and -1.7%, respectively………………………………………..Full Article: Source

NZ Super Fund’s responsible investor strategy pays off - Matt Whineray

Posted on 23 November 2015 by VRS  |  Email |Print

Being set up as a responsible investor was a smart move for New Zealand’s sovereign wealth fund, a report by NZ Super Fund has found. In a “white paper” released on Thursday by the NZ Super Fund, which manages just under $30 billion for the Government, says there is now strong evidence companies that do well on “environmental, social and governance” (ESG) fronts deliver better returns for investors.
These are companies that do not breach human rights, do not abuse the environment, and are well-managed and transparent………………………………………..Full Article: Source

Shell share price: Qatar fund sell-down stirs BG merger fears

Posted on 17 November 2015 by VRS  |  Email |Print

The Qatar Investment Authority, the Gulf state’s sovereign wealth fund, has divested $1 billion worth of shares in Royal Dutch Shell Plc and BG Group, casting doubts on whether the proposed mega-merger has the support of major shareholders within the two companies.
The QIA, which holds about 4.88 percent of Shell and 1.76 percent in BG Group, has sold 43 million shares in BG and a further 24 million in Shell over a period of less than three weeks near the end of October. “The market is concerned that these sales have been discriminatory towards BG, and therefore suggesting some underlying reason which might be worrying for the fate of the transaction,” analysts at Olivetree Financial said as quoted by The Telegraph……………………………………….Full Article: Source

CICC shares jump 6% in debut

Posted on 09 November 2015 by VRS  |  Email |Print

China investment bank CICC has just debuted in Hong Kong, climbing 6 per cent at the open. The state-backed bank raised $811m in an IPO late last month — a smaller flotation than initially planned as it seeks to convince investors of the potential to expand its sales and trading and wealth management operations.
CICC was formed as a joint venture between Morgan Stanley and China Construction Bank in the 1990s. It now counts China Investment Corporation, the country’s sovereign wealth fund, as its biggest shareholder. Shares sold by CIC accounted for just under 10 per cent of its initial public offering, with 90.1 per cent fresh equity. Other existing investors included private equity groups KKR and TPG who led the group that bought Morgan Stanley’s stake in 2010. After the sale, CIC now holds 30.1 per cent with GIC, Singapore’s sovereign wealth fund, holding 12.3 per cent. TPG and KKR hold 7.7 per cent and 7.5 per cent respectively………………………………………..Full Article: Source

Kazakh fund signs deal for 50-MW solar park expansion

Posted on 06 November 2015 by VRS  |  Email |Print

Kazakhstan’s sovereign wealth fund Samruk-Kazyna announced on Thursday that a wholly-owned entity has agreed with the United Green Group to double the capacity of a 50-MW solar plant in the Kazakh province of Zhambyl.
Samruk-Kazyna Invest LLP entered into the USD-105.5-million (EUR 97m) agreement during the Kazakh-British Business Council, which was held on November 3 as part of a visit to London by Kazakhstan’s President Nursultan Nazarbayev………………………………………..Full Article: Source

Exchange Fund turned around last month from huge loss: HKMA head

Posted on 06 November 2015 by VRS  |  Email |Print

The Hong Kong Exchange Fund turned around in October from the HK$36.8 billion in losses it made during the first three quarters of the year, the Hong Kong Economic Journal reported Friday. The report cited Norman Chan Tak-lam, chief executive of the Hong Kong Monetary Authority, who wrote in his blog that the fund basically turned around at the end of the month.
He said the manager of the sovereign fund, which fuels the HKMA’s efforts to maintain the peg between the Hong Kong dollar and the US dollar, has adopted defensive measures to minimize the fund’s losses.The fund has reduced its investment in long-term bonds and increased its holding of cash over the past two years to prepare for the potential impact on bond investments of an interest rate hike, Chan wrote………………………………………..Full Article: Source

SOFAZ earns $118 bln from ACG, Shah Deniz projects

Posted on 05 November 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has earned $116.01 billion from 2001 to November 1, 2015 through the development of the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea. SOFAZ told Trend on November 1 that the Fund gained $5.86 billion in January-October, 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. The Deepwater Gunashli section launched production in April 2008………………………………………..Full Article: Source

Azerbaijan’s State Oil Fund reveals revenues from largest gas project

Posted on 05 November 2015 by VRS  |  Email |Print

The revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project for developing the Shah Deniz gas and condensate field in the Azerbaijani sector of the Caspian Sea totaled $2.4 billion from 2007 to Nov.1, 2015, SOFAZ told Trend Nov.3. SOFAZ said its revenues from the Shah Deniz project stood at $279 million in Jan.-Oct. 2015.
The contract for developing the Shah Deniz offshore field was signed on June 4, 1996. The field’s reserve is estimated at 1.2 trillion cubic meters of gas. The shareholders are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent)………………………………………..Full Article: Source

Hong Kong Exchange Fund Had Biggest Quarterly Loss After Rout

Posted on 03 November 2015 by VRS  |  Email |Print

Hong Kong Exchange Fund, managed by the city’s de facto central bank, reported its largest quarterly loss in history by value, as stock prices plummeted amid a market rout. The fund, managed in its current form by the Hong Kong Monetary Authority from 1998, had an investment loss of HK$63.8 billion ($8.2 billion) in the three months ended September, according to a presentation by HKMA Deputy Chief Executive Eddie Yue to legislators today.
The loss was not the biggest by percentage terms, according to a spokeswoman, who didn’t give further details. Government institutions globally have suffered losses as stocks gyrated and currencies fluctuated on economic concerns, including a China slowdown and expectations of rising interest rates in the U.S. Norges Bank in October posted its biggest loss in four years, as Chinese stocks and Volkswagen AG dragged down returns of the world’s largest sovereign wealth fund………………………………………..Full Article: Source

Norway wealth fund suffers biggest loss in 4 years

Posted on 02 November 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund posted its biggest loss in four years, dragged down by Chinese stocks and Volkswagen, just as the Norwegian government prepares to make its first ever withdrawals to plug budget deficits. The $860bn fund lost 273bn kroner ($32bn) in the third quarter, or 4.9%, the Oslo-based investor said. Its stock holdings declined 8.6%, while it posted a 0.9% gain on bonds and a 3% return on real estate. It was the first back-to-back quarterly loss in six years.
“We have to expect fluctuations in the value of the fund when there are large movements in the market,” said Yngve Slyngstad, its chief executive officer. “With the fund as big as it is today, this can have a considerable impact in the short term. The fund has a long-term horizon, however, and is in a good position to ride out short-term volatility.”……………………………………….Full Article: Source

Norway wealth fund drops €29.4bn amid market rout

Posted on 30 October 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund, which is Norwegian, has posted its biggest loss in four years, just as the government is preparing to make its first ever withdrawals to plug budget deficits. The fund lost 273bn kroner (€29.4bn) in the third quarter, or 4.9%, as stocks declined 8.6% and bonds rose 0.9%, the Oslo-based fund said yesterday.
Real-estate holdings rose 3%. It was the first back-to-back quarterly loss in six years. “We have to expect fluctuations in the value of the fund, when there are large movements in the market,” Yngve Slyngstad, chief executive of the fund, said………………………………………..Full Article: Source

Norway oil fund reports third biggest loss ever

Posted on 29 October 2015 by VRS  |  Email |Print

Norway’s oil fund on Wednesday reported its worst quarterly loss in four years, as it was hit by a collapse in the Chinese stock market, and big losses on investments in Volkswagen and Glencore. Norges Bank Investment Management (NBIM) which manages the world’s largest sovereign wealth fund, reported the the fund’s value had declined by 4.9 percent over the period, losing a staggering 273bn kroner ($32bn).
NBIM said the loss represented the third weakest result in kroner since the fund was launched. “The negative return on equity investments was driven by the slowdown in the global economy and the decline in global equity markets, especially the Chinese market,” Yngve Slyngstad, NBIM’s chief executive, said in a statement. ……………………………………….Full Article: Source

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