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Sovereign Wealth Funds Briefing - Category | Performance more

Sovereign funds assets to gain 60pct by 2016, UBS

Posted on 20 August 2013 by VRS  |  Email |Print

Sovereign wealth funds including Nigeria’s will increase their assets by 60 percent over the next three years, bolstered by rising income from commodities and exports, according to UBS.
State funds will manage about $8.6 trillion in 2016, up from $5.3 trillion now, according to Massimiliano Castelli, head of strategy at Global Sovereign Markets, the unit of UBS Global Asset Management that services sovereign institutions worldwide. Sovereign investors will also add more assets in emerging markets and cut holdings denominated in currencies such as the euro and the Japanese yen, he said………………………………………..Full Article: Source

Saudi tops sovereign wealth fund assets in GCC

Posted on 14 August 2013 by VRS  |  Email |Print

Saudi Arabia ranks top in the volume of assets of sovereign wealth funds (SWFs) among the GCC countries at $641 billion, a report said quoting Moody’s Investors Service.
The kingdom is followed by the United Arab Emirates at $397 billion, Kuwait with $395 billion; Qatar with $175 billion; Oman with $14 billion and Bahrain $11 billion, according to the report published in the Arab News. The assets of GCC SWFs have grown alongside the rise in oil prices since the 2009, the report said………………………………………..Full Article: Source

KSA holds GCC’s largest SWF assets at $641 bln

Posted on 13 August 2013 by VRS  |  Email |Print

Saudi Arabia has ranked first in the volume of assets of sovereign wealth funds (SWFs) among the GCC countries at $641 billion (SR2,400 billion) followed by the United Arab Emirates (UAE) at $397 billion (SR1,489 billion).
Kuwait came in the third rank at $395 billion (SR 1,481 billion), followed by Qatar ($175 billion or SR656 billion), Oman ($14 billion or SR52.5 billion), and Bahrain ($11 billion or SR 41 billion), local media said quoting a report by Moody’s Investors Service. The assets of SWFs in the GCC countries have grown alongside the recovery in oil prices since the 2009, the report said………………………………………..Full Article: Source

Europe’s biggest SWF makes fixed income loss

Posted on 12 August 2013 by VRS  |  Email |Print

Norges Bank Investment Management has reported that the sovereign wealth fund it manages - Norway’s Government Pension Fund Global - made a loss of -1.4% from its fixed income investments in the second quarter of 2013 - although its overall return of 0.1% still earned it NOK17bn (€2.2bn).
Offsetting the losses in fixed income were slight gains from equity investments of 0.9%, and stronger returns from real estate of 3.9%. The fund has only been mandated to branch out into real estate in the past few years - it did not announce its first property acquisition until November 2010………………………………………..Full Article: Source

Abu Dhabi wealth fund caught in Brazil meltdown

Posted on 07 August 2013 by VRS  |  Email |Print

Mubadala Development, the Abu Dhabi sovereign wealth fund (SWF), is fighting to avoid losses on its $2 billion investment in Eike Batista’s companies as the former billionaire seeks to save his commodity empire from collapse.
The fund is owed $1.5 billion after converting a preferred equity investment in Batista’s EBX Group into debt, three people with knowledge of the matter said last month. That amount is secured by Batista assets, one of the people said, asking not to be named as details are private. EBX also last month agreed to “redeem” a portion of Mubadala’s original investment………………………………………..Full Article: Source

Alaska Permanent Fund ends fiscal year with $44.9 bln value

Posted on 06 August 2013 by VRS  |  Email |Print

The Alaska Permanent Fund posted its highest year-ending balance, with a preliminary value of $44.9 billion. While the fund has reached higher levels during the year — its unaudited value as of Thursday was $46.3 billion — it has never ended a fiscal year so strongly, Alaska Permanent Fund Corp. CEO Michael Burns said.
“This is a good year,” he said Monday. The fund, created to share Alaska’s oil wealth with future generations, reported an average return of 10.5 percent for the year ending June 30, with all its asset classes yielding positive returns. It had closed 2012 at $40.3 billion, on an essentially flat return……………………………………….Full Article: Source

GIC’s performance on par with Norway’s sovereign wealth fund: analyst

Posted on 05 August 2013 by VRS  |  Email |Print

GIC has reported a 20-year annualised real return of four per cent last year, compared to 3.9 per cent in the previous year. These are returns on the foreign reserves of the Singapore government.
Investment analytics firm HedgeSpa estimates that the GIC policy portfolio returned 14 per cent in the fiscal year ended March 2013 — that is on par with the 13.4 per cent return made by Norway’s Government Pension Fund, the world’s largest sovereign wealth fund. Starting from April 2013, GIC has also implemented a new investment framework to manage its portfolio………………………………………..Full Article: Source

Singapore SWF trumps U.S. college endowments

Posted on 05 August 2013 by VRS  |  Email |Print

Singapore’s sovereign wealth fund has outperformed some of the biggest U.S. college endowment funds in the past decade, but it thinks improving returns from alternative assets will be a boon to colleges. In its annual report released Friday, Government of Singapore Investment Corp., which has about $250 billion of assets under management, laid out its returns for the past decade.
It posted a nominal rate of return, in dollar terms, of 8.8% over ten years for the period ended Mar. 31 2013. That compares to the 6.2% returned on average by college endowments for the period ended June 2012, according to the National Association of College and University Business Officers (Nacubo)………………………………………..Full Article: Source

Mumtalakat push to boost growth

Posted on 01 August 2013 by VRS  |  Email |Print

Mumtalakat, the investment arm for Bahrain’s non-oil and gas strategic assets, has a revised strategy in place that would enable it to reverse the decline in revenues, its top official has said. “We have laid the groundwork and have begun the execution of a number of initiatives that we believe will support our long-term growth strategy and benefit the kingdom,” chief executive Mahmood Al Kooheji said.
“Mumtalakat works closely with its existing portfolio companies to develop and maximise their growth potential, and last year conducted a full and comprehensive review of its strategic direction,” he said………………………………………..Full Article: Source

Dunia’s net profit jumps 91pct on year

Posted on 30 July 2013 by VRS  |  Email |Print

Dunia Finance, an Abu Dhabi-based company in which the emirate’s sovereign wealth fund Mubadala Development Company owns a stake, said yesterday it posted a net income of Dh55.6 million in the first half of 2013, 91 per cent higher than the corresponding period the previous year.
“New customer acquisition, alongside a deepening of relationships with existing customers, helped Dunia deliver strong top line revenue and income growth. During the first half, the company saw revenues of Dh166.4 million, up 27 per cent from Dh131.3 million compared to the first half of 2012,” the finance company said in a statement………………………………..Full Article: Source

China wealth fund CIC returns to profit growth in 2012

Posted on 29 July 2013 by VRS  |  Email |Print

China’s $500 billion sovereign wealth fund, China Investment Corp (CIC), returned to profit growth in 2012, citing growing traction in the global recovery at the end of the year and a steady improvement in risk asset prices.
CIC was created in 2007 to earn higher returns from riskier investments such as commodities, private equity and hedge funds for part of China’s $3.4 trillion foreign exchange reserves. In 2011, the fund reported its first-ever decline in profit due to market weakness amid Europe’s debt crisis………………………………………..Full Article: Source

China wealth fund CIC posts 10.6pct return as equity rally

Posted on 29 July 2013 by VRS  |  Email |Print

China Investment Corp., created to manage part of the nation’s $3.5 trillion of foreign-currency reserves, reported a 10.6 percent return on its overseas investments last year as global equities rallied.
Net income at the $575 billion sovereign wealth fund, which also holds the government’s stakes in China’s biggest banks, rose to $77.4 billion from $48.4 billion in 2011, Beijing-based CIC said in its annual report yesterday. Its overseas investment returns compared with a 4.3 percent loss in 2011 amid declines in global commodity prices………………………………………..Full Article: Source

China wealth fund CIC says net profit up 60 pct y/y in 2012

Posted on 29 July 2013 by VRS  |  Email |Print

China’s sovereign wealth fund, China Investment Corp., reported a 2012 net profit of $77.4 billion, up 60 percent from the previous year when it had posted its first-ever dip in profit.
CIC’s return on overseas investment reached 10.6 percent in 2012, compared to a negative 4.3 percent in 2011. Earlier this month China formally named career bureaucrat Ding Xuedong as the new chairman of CIC, ending a months-long search for a head of the $500 billion fund………………………………………..Full Article: Source

Permanent fund hits new high and its dividend hits new low

Posted on 23 July 2013 by VRS  |  Email |Print

The Alaska Permanent Fund (APF) has reached an all-time in a year in which Alaska’s Permanent Fund Dividend (PFD) will probably reach its lowest level since 1987. The PDF is Alaska’s small, variable, yearly basic income. It’s financed by the returns of the APF. You’d think, then, that the fund and the dividend financed by it would move up and down together.
And they do—on average, over the long-run, with a time-lag. But they don’t necessarily move together in any particular year, and this year the difference is extreme. The fund has risen to an all-time high of $45.5 billion, while the dividend is likely to reach a 25-year low of barely more than $700………………………………………..Full Article: Source

Norwegian Petroleum Fund pivotal to its economic future

Posted on 22 July 2013 by VRS  |  Email |Print

Last week I discussed the Norwegian Petroleum Fund — or the “Government Pension Fund — Global” as it is known formally — which saw its size grow steadily from the 1990s to its present value of about $740 billion (Dh2.7 trillion).
The performance of the Fund between its first equity investment in 1998 and 2007 yielded average annual returns of 4.3 per cent according to Norges Bank Investment Management (NBIM), a unit established by the Central Bank to manage the fund with a staff of more than 200 people. It as set up on a directive from the Ministry of Finance and approved by Storting, the Norwegian parliament………………………………………..Full Article: Source

MP slams SWF for BD182mln loss

Posted on 19 July 2013 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund has come in for criticism from a top MP after it yesterday reported losses of BD181.7 million for last year. The Bahrain Mumtalakat Holding Company, the country’s non-oil and gas investment arm with a portfolio of 40 firms, said its revenues declined by 9.9 per cent compared to 2011 - mainly due to lower aluminium prices impacting Alba.
It said lower aluminium prices were also the main reason for a 66.8pc reduction in consolidated gross profit, compared to 2011. However, it managed to reduce its losses from BD270.6m in 2011, which it attributed to a drop in impairment losses (a decrease in the value of assets) and a rise in income from investments in financial services and telecommunications………………………………………..Full Article: Source

Bahrain sovereign fund net loss narrows

Posted on 19 July 2013 by VRS  |  Email |Print

Bahrain sovereign fund Mumtalakat said its net loss for 2012 narrowed by 32.9 percent as improved performance by its financial services and telecommunications portfolio partly offset lower revenue from its aluminum unit.
One of the smaller sovereign wealth funds in the Gulf region, it had $7.1 billion of assets under management at the end of September. It holds stakes in 40 firms in the kingdom’s non-oil sector, including Bahrain Telecommunications Co. (Batelco) and Aluminium Bahrain (Alba)………………………………………..Full Article: Source

Australia’s flourishing Superannuation Fund industry surpasses 1.5 trillion

Posted on 19 July 2013 by VRS  |  Email |Print

Australia’s expanding superannuation fund industry has attracted a mob of global asset management firms wanting to manage those retirement assets. The battle for superannuation market share is intense as companies have invested resources setting up offices in Australia. In Australia, superannuation delivers retirement income streams for individuals.
Australia is the fourth biggest pool of superannuation savings globally. Moving up the ranks, the superannuation market is behind the United States, Japan and the United Kingdom – slightly ahead of Canada. Australia’s superannuation fund assets in aggregate are approaching A$ 1.6 trillion, expectations with increased contributions and investment returns may grow assets by 1.5x to 2x in a decade………………………………………..Full Article: Source

Azerbaijan State Oil Fund’s long-term assets exceed $ 1 bln in 2012

Posted on 18 July 2013 by VRS  |  Email |Print

The assets of the State Oil Fund of Azerbaijan (SOFAZ) hit 26.9 billion manat in 2012 compared to over 23.5 billion manat in 2011, SOFAZ reported today. According to the report, about 26.01 billion manat of the total amount of assets fell to current assets and about 876.63 million manat - long-term assets.
SOFAZ received 13.72 billion manat compared to 13.67 billion manat in 2011, the report said. SOFAZ’s expenses hit 10.75 billion manat last year compared to 10.57 billion manat in 2011. SOFAZ was established in 1999. Its assets hit $271 million during that period………………………………………..Full Article: Source

Azerbaijan Oil Fund’s assets totals $34.7 bln

Posted on 18 July 2013 by VRS  |  Email |Print

For the 1st half-year the State Oil Fund of Azerbaijan (SOFAZ) had budget net surplus at AZN 935.2 million. According to SOFAZ, in the 1st half year it received AZN 6.7 bn of revenue and made AZN 5.791 bn of expenditures. Due to that, SOFAZ assets for the quarter increased by 1.6% - from $34.129 bn up to $34.678 bn.
The basis of revenue for the half-year were proceeds from oil and gas production PSA contracts for AZN 6.488 bn, including revenue from sale of profit oil and gas for AZN 6.482 bn. Another AZN 1.7 million were brought to Fund’s budget by revenues from the management of its assets. Transit fee provided AZN 3.9 million, bonus AZN 300,000, sale of assets transferred by foreign companies AZN 40,000. Revenue of the fund on management of funds for such term totaled AZN 237.7 million………………………………………..Full Article: Source

Ernst&Young: Asset management revenues Azerbaijan Oil Fund amounted 2.2pct in 2012

Posted on 18 July 2013 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) published its Annual Report 2012, audit of which was made by Ernst&Young. In accordance with report, the State Oil Fund’s assets under management increased by USD 4 329.4 million, or 14.5%, from USD 29 800.0 million to USD 34 129.4 million in 2012.
“SOFAZ asset management revenues amounted to AZN 544.0 million or USD 693.5 million, yielding 2.2% rate of return in 2012” stated in the report………………………………………..Full Article: Source

Excess crude account down by $7bln to $5bln

Posted on 18 July 2013 by VRS  |  Email |Print

Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi has said for Nigeria to beat the ingenuity of counterfeiters, there is a need to redesign the Naira. Sanusi also revealed that the Excess Crude Account is down by $7bn from $12billion to $5billion.
Sanusi told the Jones Onyereri- headed House Committee on Banking and Currency yesterday that the “ noise” about the 5000 Naira notes was the reason the CBN shelved the plan, which, according to him, should be done every seven to eight years………………………………………..Full Article: Source

Bahrain sovereign fund Mumtalakat 2012 net loss narrows

Posted on 18 July 2013 by VRS  |  Email |Print

Bahrain sovereign fund Mumtalakat said on Wednesday its net loss for 2012 narrowed by 32.9 percent from the previous year due to the improved performance of its financial services and telecommunications portfolio.
One of the smaller sovereign wealth funds in the Gulf region with $7.1 billion of assets under management at the end of September, the fund holds stakes in 40 firms in the kingdom’s non-oil sector, including Bahrain Telecommunications Co (Batelco) and Aluminium Bahrain (Alba)………………………………………..Full Article: Source

Mumtalakat’s loss narrows by 33 pct

Posted on 18 July 2013 by VRS  |  Email |Print

Bahrain’s Mumtalakat Holding Co., the Gulf state’s sovereign wealth fund, said its full-year loss narrowed by 33 per cent to 181.7 million Bahraini dinars ($481.9 million) in 2012 as impairment charges fell and income from investments in financial services and telecoms rose.
“Mumtalakat’s diversified investment portfolio, particularly in the financial services and telecommunications has contributed to a 9.1 per cent increase in share of profits from associate companies compared with 2011,” the company said in a statement posted on its website on Wednesday………………………………………..Full Article: Source

Norway’s petroleum fund is a success story

Posted on 15 July 2013 by VRS  |  Email |Print

Since oil production started in earnest in Norway in 1971, Norwegians were called by some as the “blue eyed Arabs” and even recently, The Economist said on February 2, 2013 that fellow Nordic countries refer to Norway as the “most northerly Arab country.”
The Petroleum Fund changed its name in 2006 to the ‘Government Pension Fund — Global’. It has nothing to do with ordinary pension contributions and is to be distinguished from the much smaller ‘Government Pension Fund — Norway’, which was formerly The National Insurance Scheme Fund, and pension fund allowed to invest only domestically………………………………………..Full Article: Source

Temasek’s next challenge: Succession

Posted on 11 July 2013 by VRS  |  Email |Print

By most accounts, Singapore investment firm Temasek Holdings, which turns 40 next year, has just enjoyed a bumper year. Buoyed by a strong showing on equity markets, the value of its portfolio rose to a record high of $215 billion as at March 31, it reported last Thursday. This was an 8.6 per cent jump over last year’s $198 billion.
Total shareholder return - a measure of how hard investment funds have worked - was 8.86 per cent, nearly double the 4.6 per cent pace of the previous year.The net profit for the entire stable of Temasek’s companies also stood at an impressive $11 billion, unchanged from a year earlier………………………………………..Full Article: Source

China’s new sovereign fund chief under pressure to boost returns

Posted on 08 July 2013 by VRS  |  Email |Print

Ding Xuedong takes over as head of China’s wealth fund facing three challenges: boosting returns, finding new capital and dealing with rivalry from the manager of the nation’s foreign-exchange reserves.
His appointment, announced July 5, ends months of speculation over who would take charge at China Investment Corp. after Lou Jiwei was named Finance Minister in new Premier Li Keqiang’s government in March. Ding, 53, a former deputy finance minister, will move from the State Council where he was a deputy secretary-general………………………………………..Full Article: Source

Singapore wealth fund size soars to record high

Posted on 05 July 2013 by VRS  |  Email |Print

Singapore’s Temasek Holdings, one of the world’s largest sovereign wealth funds, said the size of its portfolio soared to a record high in the financial year ending March 2013, even as profits showed a slight dip.
At its annual earnings review on Thursday, the AAA-rated wealth fund said the value of its investments rose to 215 billion Singapore dollars ($168 billion) in the year, an 8.6 percent increase from the year before. In the last financial year, Temasek made investments worth 20 billion Singapore dollars in several companies including Spanish oil company Repsol, Singapore-based agricultural commodities company Olam and German chemicals company Evonik………………………………………..Full Article: Source

Good investments boost Singapore sovereign fund

Posted on 05 July 2013 by VRS  |  Email |Print

Singaporean sovereign wealth fund Temasek posted a 9% portfolio gain, equal to US$215 billion. The company said that the growth was due to the global recovery and a series of successful investments in energy and resources sector.
Temasek made investments worth US$20 billion since the year started, and divested a total of $13 billion. The energy and resources industry received a total of US$4 billion from the sovereign wealth fund, prompting its shareholder profit to increase by 8.86%………………………………………..Full Article: Source

Temasek posts 9pct portfolio gain, eyes Western assets

Posted on 05 July 2013 by VRS  |  Email |Print

Temasek Holdings’ portfolio value rose to S$215 billion ($169 billion), up 9% from S$198 billion in 2012, citing a global recovery as well as successful investments in energy and resources industries.
Over the year, the Singaporean sovereign wealth fund invested S$20 billion and divested S$13 billion, with S$4 billion allocated to the energy and resources sector. Its shareholder return was 8.86%, with annualised return over the past decade standing at 16%………………………………………..Full Article: Source

Norway retains its sovereign wealth crown

Posted on 17 June 2013 by VRS  |  Email |Print

Norway’s Government Pension Fund has been named as the world’s largest sovereign wealth fund. Boasting $737.2 billion in assets, Norway topped the most recent list compiled by the SWF Institute, published on June 13. It’s the second time in seven months that Norway has taken the top spot.
Arriving in second place was UAE’s Abu Dhabi Investment Authority (ADIA), which is estimated to have $628 billion in assets. The third position was held by China’s SAFE Investment Company ($567.9 billion), followed by Saudi Arabia’s SAMA Foreign Holdings ($532.8 billion), leaving China’s Chinese Investment Corporation in fifth place ($482 billion)……………………………………Full Article: Source

Total sovereign wealth funds’ assets amount to $5,473bln

Posted on 14 June 2013 by VRS  |  Email |Print

According to the SWF Institute’s latest Sovereign Wealth Fund Rankings, the total amount of sovereign wealth funds’ asset under management is now $5,473bn, to which oil and gas related revenues contributed $3,193bn. The rankings show Norway’s Government Pension Fund on top of the list, with $737bn in asset under management (AuM). The fund gets its capital mainly from oil revenues, and it scores 10 points out of 10 in the Linaburg-Maduell Transparency Index.
It is followed by the Abu Dhabi Investment Authority’s fund ($627bn in AuM, origin: oil, and index: 5 points); China’s SAFE Investment Company (around $567bn in AuM, origin: non-commodity, index: 4); Saudi Arabia’s SAMA Foreign Holdings ($532bn, origin: oil, index: 4 points); and the Kuwait Investment Authority fund ($342bn, origin: oil, index: 7 points). At the end of 2010, 58% of SWFs’ funding came from oil and gas related revenues. Asia had the greatest amount of SWFs, namely 40%, followed by the Middle East with 35% and Europe with 17%. The Americas and Africa only had each 3% of the share………………………………………..Full Article: Source

Africa has strongest growth in sovereign funds, JPMorgan says

Posted on 10 June 2013 by VRS  |  Email |Print

Africa is experiencing the strongest growth in new sovereign wealth funds in the world as the continent’s nations are amassing commodity revenues and foreign-exchange reserves, according to JPMorgan Asset Management Inc.
During the past two years, 15 state funds have been set up or are being considered in Africa, Patrick Thomson, the global head of sovereigns at JPMorgan Asset said. The region will see more starting in the coming years, he added………………………………………..Full Article: Source

China’s CIC 2012 return on overseas investment turns positive

Posted on 10 June 2013 by VRS  |  Email |Print

China’s sovereign wealth fund, China Investment Corp (CIC), said its return on overseas investment swung to around 11 percent in 2012 from a loss in 2011, in part due to its diversified investment portfolio.
Gao Xiqing, vice-president of CIC, was quoted by the official Xinhua News Agency as saying that the total assets of the fund have increased to $500 billion from $482 billion in 2011, 40 percent of which are invested overseas. “The investment return in the past five years has surpassed previous expectations a little bit, but not that much,” Gao was quoted as saying……………………………………….Full Article: Source

China sovereign fund president says it’s met state expectations

Posted on 10 June 2013 by VRS  |  Email |Print

China Investment Corp., the nation’s $482 billion sovereign wealth fund, has met the government’s expectations by delivering 5 percent annualized returns in the five years since its creation, the official Xinhua News Agency reported, citing the fund’s president.
CIC, which is seeking a new chairman after Lou Jiwei was named China’s finance minister in March, achieved an 11 percent investment return on its overseas portfolio last year, compared with a loss of 4.3 percent in 2011 , Gao Xiqing, also a vice chairman of the fund, said according to Xinhua……………………………………….Full Article: Source

Russia’s Reserve Fund amounted to RUB 2.666 trillion on June 1

Posted on 05 June 2013 by VRS  |  Email |Print

As of April 1, 2013, Russia’s Reserve Fund amounted to RUB 2.666 trillion ($84.39 billion), the National Wealth Fund totaled RUB 2.739 trillion ($86.72 billion), Russia’s Ministry of Finance informed.
Aggregate income from the Reserve Fund deposits on foreign currency accounts with the Bank of Russia, denominated in US dollars, over the period from January 15 to May 31, 2013, was estimated at $0.09 billion, which is equal to RUB 2.77 billion. From January 1 to May 31, 2013, the exchange rate difference from revaluation of these balances was negative RUB 66.77 billion………………………………………..Full Article: Source

Brazil foreign exchange reserves drop $4.25 bln in May

Posted on 05 June 2013 by VRS  |  Email |Print

Brazil’s foreign currency reserves in May fell $4.25 billion to $374.42 billion from $378.66 billion in April, the Central Bank of Brazil said on its website late Monday.
According to economists, the decline likely occurred due to an adjustment in the prices of assets held, such as U.S. Treasurys, which make up the larger part of Brazil’s foreign reserves. The central bank doesn’t comment on the performance of foreign reserves. So far this year, foreign reserves have fallen $4.2 billion. They ended 2012 at $378.6 billion………………………………………..Full Article: Source

GIC cautious about seeking higher returns as yields remain low

Posted on 21 May 2013 by VRS  |  Email |Print

Government of Singapore Investment Corp., which manages more than $100 bilion of assets, said it’s more “cautious” about seeking higher returns on its assets as yields remain low.
The average annual return on bond yields will be about 1.9 percent over the next decade, while equities may offer a 1.6 percent median real return a year during that period, said Lim Chow Kiat, chief investment officer of the fund, citing different portfolio models…………………………………Full Article: Source

East Timor’s oil fund totals US$13 bln in 1st quarter

Posted on 15 May 2013 by VRS  |  Email |Print

East Timor’s Oil Fund grew by US$1.2 billion in the first quarter of the year to US$13 billion at the end of March, said the East Timor Central Bank in Dili Monday.
According to the bank’s statement, gross monies paid into the Fund from royalties and taxes totalled US$946 million, and no funds were transferred to the State’s general account in the period………………………………………..Full Article: Source

Saudi Kingdom can gain more from strong sovereign wealth fund

Posted on 13 May 2013 by VRS  |  Email |Print

The Kingdom can reduce its dependence on oil revenues by creating a strong sovereign wealth fund (SWF), according to some experts. Although economic conditions in Saudi Arabia like money supply, foreign exchange reserves, external debt and domestic economic development are positive factors to create a sovereign wealth fund (SWF), Saudi Arabia still lags behind in this area, one of them said.
Experts acknowledged that Saudi Arabia doesn’t prefer sovereign wealth funds like some GCC states that moved toward setting up SWFs as a main source of the economy. Fahad Al-Turki, head of research department, Jadwa Investments, said it was unfair to compare the SWF of the Kingdom with that of the other GCC states, especially when Saudi Arabian Monetary Agency (SAMA) manages Saudi sovereign wealth……………………………………Full Article: Source

Nigeria: Crashing oil prices might wipe out Nigeria’s Excess Crude Account balances, IMF warns

Posted on 13 May 2013 by VRS  |  Email |Print

Despite a projection that Nigeria’s external reserves might rise to an average of between $80 and $85 billion in the next four years, the International Monetary Fund (IMF) has warned against the negative impact of the declining oil price in recent times, saying the country’s Excess Crude Account could be depleted under a year. The IMF’s Senior Resident Representative in Nigeria, Scott Rogers, gave the warning while presenting highlights of the Staff Report on the 2012 Article IV Consultation, to be published soon by the Fund.
According to Mr. Rogers, a decline in international oil prices to $97 per barrel (annual average) would begin to erode the ECA balances, while a fall to $80-85 is capable out wiping out ECA balances within a year; pointing out that with lower oil revenue and expenditure restraint by government, “fiscal deficits are projected to re-emerge.”…………………………………..Full Article: Source

Pula Fund recovery inches forward

Posted on 09 May 2013 by VRS  |  Email |Print

The Pula Fund has gained P3.15 billion in the six months since the Bank of Botswana drew down P21 billion in order to replenish the country’s import cover as well as meet external debt obligations.
Bank of Botswana (BoB) data published yesterday pegged the Pula Fund at P41.99 billion in February, about eight percent higher than the P38.84 billion it was left at after the drawdown last September.The Pula Fund is a sovereign wealth fund comprising both national savings built from historical budget surpluses and mineral revenues as well as foreign reserves in excess of the country’s medium-term requirements………………………………………..Full Article: Source

International Petroleum Investment Company’s 2012 net profit at Dh6.4 bln

Posted on 08 May 2013 by VRS  |  Email |Print

Abu Dhabi’s sovereign wealth fund International Petroleum Investment Company (Ipic) said on Tuesday its fiscal year 2012 net profit rose to a whopping Dh6.4 billion from Dh164.1 a million year earlier on the back of robust operational performance of Cepsa, Nova Chemicals, and Borealis along with the recovery of certain listed equities held by Aabar.
“Total comprehensive income reached Dh6.0 billion for 2012, an increase of Dh15.3 billion from the previous year. Consolidated revenue increased from Dh126.0 billion to Dh190.6 billion in 2012 while operating profit increased from Dh9.2 billion to Dh11.7 billion for the same period,” Ipic said in a statement………………………………………..Full Article: Source

Norway’s sovereign wealth fund grew by $37 bln in first quarter

Posted on 29 April 2013 by VRS  |  Email |Print

Norway’s $728 billion Government Pension Fund Global, the largest sovereign wealth fund in the world, grew by 219 billion kroner ($37 billion) during the first quarter of 2013, due to unprecedented stimulus from central banks trying to boost economic growth.
The fund, which generates money from taxes on oil and gas, ownership of petroleum fields, and the government’s 67% stake in Statoil ASA, experienced returns of 5.4 percent over the first three months of the year, with stocks returning 8.3 percent, and bond investments climbing 1.1 percent………………………………………..Full Article: Source

Norwegian oil fund gains as stock markets rally

Posted on 29 April 2013 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, gained 219 billion kroner ($37 billion) in the first quarter as stocks surged amid unprecedented stimulus from central banks to boost economic growth.
The $728 billion Government Pension Fund Global returned 5.4 percent in the first three months of the year, the Oslo- based investor said today. Stocks returned 8.3 percent, while bond investments climbed 1.1 percent. Real estate investments lost 0.3 percent………………………………………..Full Article: Source

Sovereign fund would supply big investment return: expert

Posted on 26 April 2013 by VRS  |  Email |Print

The government’s fiscal reserve has managed to squeeze a return of less than 1.75 percent out of its billion-dollar investments in its first year. University of Macau public economics professor Jenny Huang Bihong said the return was “too low, much lower than inflation”.
“As such its value is essentially declining.” The average rate of inflation for same period, the 12 months ending February 28, was 6.16 percent. Ms Huang told Business Daily that Macau should establish a sovereign wealth fund similar to Singapore’s Temasek Holdings (Private) Ltd. But another scholar disagrees, warning that such a move might not improve return on investment………………………………………..Full Article: Source

SOFAZ: Oil fund expects assets to remain at 2012 level

Posted on 24 April 2013 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) forecasts its total assets by the end of 2013 will remain at the level of last year, CEO of the Fund, Shahmar Movsumov, told journalists on Tuesday. “If oil prices on the world markets remain unchanged, we can keep the assets at the level of the beginning of the year, although the budget has been prepared with a deficit,” Movsumov said.
In 2012, the revenues of SOFAZ amounted to about 13.674 billion manat with expenses at 10.574 billion manat. SOFAZ budget revenues were approved for 2013 to the sum of more than 11.482 billion manat and expenditure more than 13.403 million manat. In the first quarter, the revenues comprised over 3.523 million manat, and expenditure about 2.930 billion manat………………………………………..Full Article: Source

Mumtalakat wins sovereign wealth fund award

Posted on 23 April 2013 by VRS  |  Email |Print

Bahrain Mumtalakat Holding Company (Mumtalakat), the investment arm of the Kingdom of Bahrain, was presented with the first Foreign Sovereign Wealth Fund award by RAM Rating Services Berhad (RAM Ratings) during the 2013 annual RAM League Awards in Kuala Lumpur. RAM Ratings has been hosting the annual League Awards for the past decade, recognizing institutions which have demonstrated accomplishment and leadership in the Malaysian debt capital market.
In July 2012, Mumtalakat established its MYR 3 billion (approximately US$1 billion) equivalent sukuk murabahah program in Malaysia. The sukuk program has a tenure of 20 years and allows Mumtalakat to issue from time to time one or more series of sukuk murabahah to Malaysian institutional investors………………………………………..Full Article: Source

Azerbaijan Oil Fund’s assets grew up to $34.326 bln

Posted on 17 April 2013 by VRS  |  Email |Print

For the 1st quarter the State Oil Fund of Azerbaijan (SOFAZ) had budget net surplus at AZN 593.8 million or 16.85% of revenues for the reported term.According to SOFAZ, in the 1st quarter it received AZN 3.5 bn of revenue and made AZN 2.929 bn of expenditures. Due to that, SOFAZ assets for the quarter increased by 0.6% - from $34.129 bn up to $34.325 bn.
The basis of revenue for the quarter were proceeds from oil and gas production PSA contracts for AZN 3.413 bn, including revenue from sale of profit oil and gas for AZN 3.410 bn. Another AZN 110.4 million were brought to Fund’s budget by revenues from the management of its assets. Transit fee provided AZN 2.1 million, bonus AZN 200,000, sale of assets transferred by foreign companies AZN 10,000…………………………………….Full Article: Source

Azerbaijan’s State Oil Fund assets grew 0.6pct in first quarter

Posted on 16 April 2013 by VRS  |  Email |Print

Azerbaijan’s State Oil Fund, known as Sofaz, expanded its assets 0.6 percent to $34.3 billion as of April 1 from the end of last year. Sofaz’s gold holdings have increased to 18.4 metric tons by the end of the first quarter, according to an e-mailed statement today from the fund, which was established in 1999 in Baku, the Azeri capital, to manage the Caspian Sea nation’s income from the sale of oil and natural gas.
The fund started investing in gold, as well as in the Australian dollar, Russian ruble, Turkish lira and real estate last year to diversify holdings. It plans to increase its gold reserves to 30 tons by the end of the year………………………………………..Full Article: Source

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