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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

Norway oil fund’s investments value slide nearly 5%

Posted on 29 October 2015 by VRS  |  Email |Print

Norway’s sovereign-wealth fund, the world’s biggest by assets, reported a near five percentage-point loss on its investments in the third quarter, pulled down by negative returns from its equity investments amid weaker global markets.
Norges Bank Investment Management, the arm of the central bank that manages the fund, said Wednesday that the value of the fund’s investments fell by 273 billion Norwegian kroner ($32.17 billion) before the impact of a weaker Norwegian krone in the period………………………………………..Full Article: Source

Norway’s oil fund makes 2nd quarterly loss in row

Posted on 29 October 2015 by VRS  |  Email |Print

Norway’s $863 billion sovereign wealth fund made a loss on its investments in the three months ended September for the second quarter in a row, as stocks continued to drop and Volkswagen weighed on results, the fund said today.
The fund lost 273 billion crowns ($32 billion) in the quarter, after a loss of 73 billion from April to June, equivalent to a return on investment of minus 4.9% in the third quarter, against minus 0.9% in the second quarter. Those losses were recouped in October, with the fund earning some 300 billion crowns, the fund’s chief executive later said………………………………………..Full Article: Source

Azerbaijan Oil Fund’s investment portfolio exceeds limit for 2015 by 28.7%

Posted on 28 October 2015 by VRS  |  Email |Print

By 1 October 2015 the State Oil Fund of Azerbaijan (SOFAZ) exceeded the limit of investment portfolio (AZN 28.2 bn) for 2015 by 28.7%. The Fund reports that its investment portfolio in manats, as a base currency, grew by 26% from AZN 28.79 bn up to AZN 36.28 bn for the past 3 quarters. Over the 3 rd quarter the decline totaled AZN 1.176 bn or 3.1%. By 1 October the Fund’s investment portfolio was estimated at $34.6 bn.
The main directions (investment program) of SOFAZ money spending for 2015 are to pursue investment policy aimed at obtaining the highest possible income with minimum risk of losing assets. Fund’s investment portfolio for 2015 is limited to AZN 28.2 bn. The Fund is allowed the following currency structure: 50% of finances in US dollars, 35% in euro, 5% in pounds of sterling and the remaining 10% in other currencies………………………………………..Full Article: Source

Azeri oil fund’s assets drop by 6.4 pct to $34.7 bln by Oct. 1

Posted on 27 October 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund’s (Sofaz) assets fell by 6.38 percent to $34.7 billion by Oct. 1 from the start of the year, the fund said on Monday, hit by the drop in global oil prices. Sofaz holds the proceeds from oil contracts, oil and gas sales, transit fees and other revenue. It uses income from investments to fund social spending and infrastructure projects.
The fund said its revenue reached 5.5 billion manats ($5.2 billion) by Oct. 1, while expenditures were 6.4 billion manats. Sofaz said in September it had made its first real estate investment in Japan, buying retail property Kirarito Ginza in Tokyo for 52.3 billion yen ($432.27 million) with Mitsubishi UFJ Trust and Banking Corporation………………………………………..Full Article: Source

Future Fund returns pretty super

Posted on 22 October 2015 by VRS  |  Email |Print

You have to wonder how Peter Costello and his Future Fund team do it. At a time of intense global financial market volatility, the fund still managed to add $600 million - a return of 0.5 per cent - to its ever-growing investment pool during the September quarter.
Compare that to Super Ratings research, which shows the median return on “balanced option” superannuation accounts during the same period returned declined by 1.7 per cent. The Future Fund also outgunned the same super accounts for every comparable return period - one, three, five and seven years - by a significant margin. It also was comfortably ahead of its own legislated target return of CPI plus 4.5 per cent………………………………………..Full Article: Source

Future Fund grows despite global market ructions

Posted on 19 October 2015 by VRS  |  Email |Print

Australia’s $118 billion sovereign wealth fund managed to keep its head above water over the volatile September quarter, growing the fund by $600 million during a period when global sharemarkets saw their worst performance in four years.
However, Future Fund chairman Peter Costello has warned again of lower expected returns in the long term, after the fund managed to eke out a gain of 0.5 per cent over the three months to September 30, taking the total value of the fund to $117.8bn. The 0.5 per cent rate of return over the period was below the Future Fund’s target of 1.6 per cent for the quarter, but came at a time when global sharemarkets, including the Australian bourse, posted their worst performance since 2011………………………………………..Full Article: Source

Australia’s Future Fund returns 0.5 pct in Sept qtr

Posted on 19 October 2015 by VRS  |  Email |Print

Australia’s sovereign wealth manager, the Future Fund, said on Monday it returned 0.5 percent in the September quarter, marking slower growth for the fund which has returned an average 11.1 percent annually over five years. The fund, which has consistently outperformed its target return since it was set up in 2006, also fell short of its July-September target of 1.6 percent.
Future Fund Chairman Peter Costello reiterated that returns were likely to decline amid a large correction in Australian equities and increased volatility generally. Australian shares fell about 8 percent in the three months to September, the worst quarterly performance since 2011, largely due by fears about slowing growing in China and uncertainty about the timing of U.S. interest rate hike………………………………………..Full Article: Source

Future Fund issues return warning

Posted on 19 October 2015 by VRS  |  Email |Print

The Future Fund has issued a warning to investors that the high returns of the past few years are unlikely to continue in the medium term. The latest update shows the Future Fund’s investment strategy has almost doubled the value of original government contributions since its inception.
Since its launch in May 2006, the sovereign wealth fund has added $57.3 billion in investment returns to the government’s original contributions, which were valued at $60.5 billion at the time of transfer. The performance translates to annualised return of 7.8%, comfortably ahead of the long-term target return of CPI +4.5%, which equates to 7.1%. Performance is also well ahead over one, three, five and seven years………………………………………..Full Article: Source

UBS Sees Sovereign Assets Shrinking by $1.2 Trillion

Posted on 15 October 2015 by VRS  |  Email |Print

Central bank and sovereign wealth fund assets will shrink by $1.2 trillion, or almost 7 percent, by the end of the year as China and petrostates including Russia and Saudi Arabia dip into their savings amid slower growth and lower crude revenues, according to UBS Group AG.
The decline will be driven by China withdrawing its foreign exchange reserves, while oil-producing countries tap foreign assets to support government spending, Massimiliano Castelli, head of global strategy at UBS Asset Management, said in a phone interview from Zurich Tuesday………………………………………..Full Article: Source

Fitch Affirms Kazakhstan’s Sovereign Wealth Fund Samruk-Kazyna at ‘BBB+’

Posted on 09 October 2015 by VRS  |  Email |Print

Fitch Ratings has affirmed Kazakhstan-based JSC Sovereign Wealth Fund Samruk-Kazyna’s (SK) Long-term foreign currency Issuer Default Rating (IDR) at ‘BBB+’, Long-term local currency IDR at ‘A-’, National Long-term rating at ‘AAA(kaz)’ and Short-term foreign currency IDR at ‘F2′.
The Outlooks on the Long-term ratings are Stable. Fitch has also affirmed SK’s senior unsecured domestic bonds at Long-term local currency ‘A-’ and at National Long-term ‘AAA(kaz)’. The affirmation of the IDRs and senior debt ratings reflects SK’s unchanged strategic importance, and its special legal status as a sovereign wealth fund and the state’s key asset management company, 100% owned by Kazakhstan (BBB+/A-/Stable)………………………………………..Full Article: Source

Korea wealth fund tumbles on spending, low returns

Posted on 06 October 2015 by VRS  |  Email |Print

The Korea Investment Corporation (KIC) has come under criticism due to its extravagant spending despite its worsening performance. In an annual National Assembly inspection of the country’s sovereign wealth fund on Oct. 2, KIC Chairman and CEO Ahn Hong-chul was questioned about the fund’s expenditures for his business trips and declining investment gains.
Ahn spent a total of 250 million won ($213,000) for 32 business trips from January 2014 to August of this year. He received 408 million won in annual salary last year, topping his fellow CEOs at 310 other public organizations, according to representatives from both the ruling Saenuri Party and the main opposition New Politics Alliance for Democracy (NPAD)………………………………………..Full Article: Source

Azerbaijani State Oil Fund reveals volume of revenues from Shah Deniz project

Posted on 05 October 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) received $2.39 billion from the implementation of the project for development of Shah Deniz gas and condensate field in the Azerbaijani sector of the Caspian Sea from 2007 to Oct.1, 2015, SOFAZ told Trend.
SOFAZ said it has received $274 million within the Shah Deniz project in Jan.-Sept. of 2015. The contract for development of 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

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

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