Fri, Feb 27, 2015
A A A
Welcome preal121
RSS

Sovereign Wealth Funds Briefing - Category | Research more

Sovereign Wealth Fund Direct Infrastructure Investments, 2003-2014

Posted on 26 February 2015 by VRS  |  Email |Print

Sovereign wealth funds surpassed US$ 7 trillion in assets before the end of 2014. These institutional investors typically have unique liabilities compared to public pensions. Many of the large sovereign wealth funds, funds with over US$ 30 billion in assets, seek long-term investments. When it comes to infrastructure, sovereign wealth funds pursue accommodating investment regimes, low political risk, assurances from government and opportunities to earn stable financial returns.
According to our research, Asia and Europe top the list as the largest recipients of direct infrastructure investment by sovereign wealth funds, followed by Australia and New Zealand. The Americas ranks dead last, even behind Africa. Breaking apart the Americas, South America has few large direct infrastructure investments by sovereign funds, the bulk going to North America………………………………………..Full Article: Source

Sovereign Wealth Funds Investing at Home – Opportunity Fraught with Risk

Posted on 24 February 2015 by VRS  |  Email |Print

Following the recent discoveries of large oil and gas deposits in East Africa, a number of countries in the region are in the process of establishing, or are discussing the creation of, sovereign wealth funds (SWFs) as a means to stabilise the effect of volatile currency inflows and to save for future generations.
Additionally, like several other SWFs established over the last decade, some East African governments are considering a role for the planned funds in economic development, as strategic investors in the national economy. The use of SWFs as a tool for strategic domestic investments opens up a range of new possibilities for deepening undercapitalised domestic financial markets and crowding in private capital to infrastructure in priority sectors such as power and transport………………………………………..Full Article: Source

Russian Sovereign Wealth Funds: 2015 Drawdowns

Posted on 23 February 2015 by VRS  |  Email |Print

Back at the end of January, Russia’s sovereign wealth funds amounted to USD160 billion, with the government primarily taking a historically set approach (from 2003 onwards) of arms-length interactions with the funds’ management. This relative non-interference marked 2014 and is now set to be changed, with the government looking at using SWFs to provide some support for the investment that has been falling in the 2013-2014 period and is likely to fall even further this year.
Fixed investment in Russia fell 2.0% y/y in 2013, and by another 3.7% in 2014. Private investment is likely to fall by double digits in 2015, based on the cost of funding, lack of access to international funding and general recession in the economy. It is likely to stay in negative growth territory through 2016………………………………………..Full Article: Source

Five charts that explain the world’s wealth distribution

Posted on 19 February 2015 by VRS  |  Email |Print

Sovereign wealth funds have been important participants in financial markets over the past decade but as the charts below show, the fortunes of most sovereign wealth funds are tied to oil. For instance, the biggest sovereign wealth fund, Norway’s Government Pension Fund Global (formerly the Government Petroleum Fund) derives its funding from profits generated by the country’s petroleum sector. Most other large sovereign wealth funds are also financed by oil profits.
If oil prices remain low for quite some time to come, it will hit these funds hard. The only exception to oil-based sovereign wealth funds are the Chinese funds, which have grown in size and influence over the past few years………………………………………..Full Article: Source

Middle Eastern sovereign wealth money still flowing, despite oil woes

Posted on 12 February 2015 by VRS  |  Email |Print

The Carlyle Group’s David Rubenstein says that Middle Eastern sovereign wealth funds are making larger investments than ever before. Co-CEO David Rubenstein said during an analyst call that there has been a marked increase in commitments from sovereign wealth funds, including from Middle Eastern governments that are under fiscal pressure due to falling oil prices. Same goes for commitments from many Asian sovereign wealth funds that are facing domestic economic headwinds.
“The large sovereign wealth funds are now coming into the market… and making very very large commitments, larger than we’ve ever seen before” he said. “And I don’t think there is likely to be a diminution in that trend this year despite the fact that you may say, for example, “In the Middle East, because oil prices are down, won’t the sovereign wealth funds there be pulling back?’……………………………………….Full Article: Source

Temasek says Singapore not Greece in S&P critique

Posted on 06 February 2015 by VRS  |  Email |Print

Singapore’s Temasek Holdings has told Standard & Poor’s in 29 pages why it shouldn’t mess with the state-owned investor’s AAA rating. Temasek, which managed S$223 billion (US$165 billion) of assets as of last March, said the rating firm’s proposed new rules for grading investment holding companies lump Singapore with riskier nations such as Greece and Jamaica, according to a Feb 2 response to the changes.
S&P’s new criteria take into account the firms’ lack of direct ownership of assets, the challenges they face when selling in illiquid markets and volatility of assets they hold………………………………………..Full Article: Source

Why Qatar Airways bought a 10% stake in IAG

Posted on 02 February 2015 by VRS  |  Email |Print

Qatar’s European asset shopping spree isn’t showing any signs of slowing down. State-owned Qatar Airways has bought a 9.99% stake in International Airlines Group (IAB), the holding company formed in 2011 through the merger of British Airways and Iberia. The shares appear to have been bought piecemeal on the open market, which caught analysts napping.
Qatar Airways said the purchase, which is worth £1.1bn at current prices and makes it the largest shareholder in IAG, was ‘part of efforts to enhance operations and strengthen existing commerical ties’ between them. Both airlines are already part of the Oneworld Alliance, collaborating on ticketing and transfers, and have codesharing agreements where they each market the same flights under their respective brands………………………………………..Full Article: Source

China’s Foreign Currency Reserves And Its Sovereign Wealth Fund – Analysis

Posted on 28 January 2015 by VRS  |  Email |Print

In September 2007, after a decade of structural reform of the banking sector, the Chinese government accepted the Ministry of Finance’s proposal to establish a new sovereign wealth fund, China Investment Corporation (CIC), to diversify these vast foreign reserve holdings ($1.4 trillion in September 2007; $4 trillion as of June 2014) in investments which would potentially yield a much higher income than that guaranteed by U.S. Treasury bonds.
Until 2007, China was emulating Middle Eastern oil producers which recycled their “petrodollars” in dollar-based assets and securities, particularly by investing in U.S. Treasury Bills. CIC is an exception to most of the global family of sovereign wealth funds. Unlike those of other countries, CIC does not have free and direct access to the country’s currency reserves……………………………………….Full Article: Source

Canada’s Sovereign Wealth Funds: A Question of Consolidation

Posted on 19 January 2015 by VRS  |  Email |Print

It is a well-established fact that Norway has a massive sovereign wealth fund (SWF) from its oil resource, totaling US$893 billion; other oil producers such as the U.A.E. and Saudi Arabia have sizeable SWF’s as well, valued at $773 billion and $757 billion each [1]. However, it might come as a surprise that Canada also has a sovereign wealth fund; Alberta’s Heritage Fund which was built from Alberta’s oil income has a portfolio of $17.5 billion
Now, $17 billion is a large sum of money. In comparison with the SWF’s of Norway or other oil producers, however, it is a paltry amount. Considering that Alberta’s fund was created fourteen years prior to that of Norway’s (1976 for Alberta and 1990 for Norway), it is rather shocking that Alberta’s fund is so small………………………………………..Full Article: Source

NBIM to fund research on sustainability in gold, copper mining

Posted on 13 January 2015 by VRS  |  Email |Print

Norges Bank Investment Management (NBIM) is to fund a US university’s work on sustainability in the mining sector, with the resulting work meant to assist the sector in assessing financial risk. NBIM, the manager in charge of Norway’s NOK6trn (€699bn) Government Pension Fund Global, said the work by Columbia University in New York would be funded by a three-year grant.
It added that the project would study how a range of factors related to sustainability would influence the profitability of the mining industry………………………………………..Full Article: Source

Top 10 Largest Sovereign Wealth Fund Direct Deals for 2014

Posted on 02 January 2015 by VRS  |  Email |Print

Asian and Gulf-based sovereign wealth funds are the biggest SWF spenders when it comes to private direct deals in 2014. Other notable public institutional investors who rank near the top, based on transaction value, include Caisse de dépôt et placement du Québec(CDPQ) and Canada Pension Plan Investment Board (CPPIB). The crown, however, goes to Singapore’s Temasek Holdings for participating in the largest direct sovereign wealth fund transaction in 2014. The Singaporean sovereign fund invested US$ 5.7 billion for a 25% stake in A.S. Watson.
The health and beauty retailer is owned by Hutchinson Whampoa Limited. Other major direct transactions include Singapore’s GIC investment in Chicago-based IndCor Properties, picking up a 45% stake from funds affiliated with Blackstone Real Estate Partners VI & VII. 4 out of the top 10 direct transactions had a real estate component to them. For 2014, over US$ 5 billion has been spent on direct United Kingdom real estate properties from sovereign wealth funds………………………………………..Full Article: Source

Singapore Acquisitions Hit a Record High

Posted on 10 December 2014 by VRS  |  Email |Print

Heavy buying by Singapore companies, such as an $8.1 billion purchase in the U.S. by a consortium including sovereign-wealth fund GIC Pte. Ltd., has sent acquisitions to record highs this year. Buying by GIC and Temasek Holdings Pte. Ltd., the government’s two investment firms, accounts for more than a third of the total.
Together, GIC and Temasek have spent close to a record $21 billion, according to figures from Dealogic, a data-tracking company, more than double the $8.9 billion they spent last year. The total is more than the $19.8 billion they spent in 2007, when the state investment companies laid out billions of dollars to acquire stakes in banks such as Barclays PLC, Merrill Lynch and UBS AG………………………………………..Full Article: Source

Oil states’ recourse to sovereign funds could rattle world markets

Posted on 04 December 2014 by VRS  |  Email |Print

Energy-exporting countries which have stashed billions in windfalls in sovereign investment funds may be forced to draw down on them as oil revenues shrink, sending a chill through stock, bond and property markets worldwide.
Oil-based sovereign wealth funds are a major force in international finance, holding more than $5 trillion in assets, according to David Spegel, an emerging markets expert at BNP Paribas. The funds’ money is typically split into baskets serving distinct functions, propping up government spending at times of falling export revenues or managing windfalls over decades for future generations………………………………………..Full Article: Source

Why 2015 will be year for ME wealth funds

Posted on 25 November 2014 by VRS  |  Email |Print

Middle East Sovereign Wealth Funds (SWFs) have been forced to navigate shifting economic currents at home and abroad as they seek to invest their oil-fuelled capital to generate the best returns for their stakeholders, according to a newly published KPMG report on SWFs in the Middle East.
The report was published in collaboration with the Institutional Investor’s Sovereign Wealth Centre. Over the past two years, there has been a shift in how the Middle East’s Sovereign Wealth Funds have had to reallocate their assets. The changes are driven by market forces including the unprecedented low-interest rate environment…………………………………Full Article: Source

Analysts dim on Zim’s new state fund

Posted on 18 November 2014 by VRS  |  Email |Print

The Zimbabwean Sovereign Wealth Fund (SWF) funded from mineral royalties will not work unless President Robert Mugabe’s Zanu PF-led government addresses poor confidence in the country’s economy, declining foreign direct investments as well as a woeful budget position, experts told Business Report on Friday.
The political uncertainty emanating from fights to take over from Mugabe have added to investor worries in the country. Lack of investments, coupled with a flat-lining economy characterised by a continued decline in productivity and rising imports has seen most companies and businesses battle to stay afloat………………………………..Full Article: Source

Sovereign Wealth Funds Poised to Reach $7 Trillion by 2015

Posted on 11 November 2014 by VRS  |  Email |Print

As of November 2014, sovereign wealth fund assets totaled US$ 6.977 trillion compared to US$ 6.106 trillion in December 2013. This nearly US$ 900 million increase can be attributed by improvements in investment returns and capital flows into sovereign wealth fund vehicles.
In December 2007, sovereign wealth fund assets amounted to US$ 3.259 trillion. This unprecedented growth in public assets is having tremendous influence toward policymaking, economic stability, investment banking and asset management………………………………………..Full Article: Source

Gulf Region Investment in U.S. Real Estate Surges 51%

Posted on 05 November 2014 by VRS  |  Email |Print

Persian Gulf investors from sovereign wealth funds to rich individuals increased spending on U.S. real estate, attracted by the pace of economic growth, a survey by Jones Lang LaSalle Inc. showed. Gulf Cooperation Council countries invested $1 billion in U.S. property this year, a 51 percent gain over the year-earlier period, according to the survey released in Dubai.
Wealth funds and institutional investors are spending more on real estate to diversify their holdings, Jones Lang said……………………………………….Full Article: Source

World’s top SWFs failing on transparency

Posted on 04 November 2014 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) across Asia and the Middle East, which count themselves among the world’s top institutional investors, are failing when it comes to transparency and governance, a new report said. Switzerland-based political risk researcher GeoEconomica evaluated 31 major SWFs, holding assets worth a combined US$4 trillion, against the Santiago Principles; a globally accepted voluntary code of governance and financial disclosure.
The GeoEconomica report found eight SWFs to be fully-compliant with the Santiago guidelines. These included: the Petroleum Fund of Timor-Leste; Australia’s Future Fund; the New Zealand Superannuation Fund; and Norway’s Government Pension Fund Global………………………………………..Full Article: Source

5 Things Sovereign Wealth Funds Won’t Tell You

Posted on 27 October 2014 by VRS  |  Email |Print

Sovereign wealth funds constantly make news headlines, buying infrastructure in the UK, acquiring a tech company with a private equity fund or doling out large mandates to established money managers. The perception that sovereign funds are long-term in nature can rightfully be challenged.
Take for instance Ireland’s National Pension Reserve Fund (NPRF) which was allocating chunks of capital left and right to private equity and real estate funds. Post global financial crisis, the NPRF bailed out banks like Allied Irish, forcing the need to liquidate positions with external managers and fund interests………………………………………..Full Article: Source

2014 Looks to Beat 2013 in Sovereign Wealth Fund Transactions

Posted on 24 September 2014 by VRS  |  Email |Print

Increasingly, sovereign wealth funds are investing directly. The larger sovereign funds are getting involved in more deals, whether in institutional real estate, partaking as a group member in a company acquisition or buying more shares on the open market.
As a whole, the world of sovereign wealth funds is rapidly expanding due to numerous factors. One significant factor is the number of new sovereign wealth funds cropping up, particularly in Africa and the Americas……………………………………….Full Article: Source

Sovereign Wealth Funds - Friend Or Foe?

Posted on 22 September 2014 by VRS  |  Email |Print

A sovereign wealth fund (SWF) is an investment fund managed by a government agency on behalf of a nation or sovereign state. SWFs (or “sovereign funds”) generally have a mandate to invest globally in any asset class – stocks, bonds, commodities, currencies, real estate, etc.
SWFs have grown substantially in size, with total assets as of September 2013 amounting to $5.857 trillion, an increase of almost 80% from $3.265 trillion in September 2007. This enormous pool of capital gives SWFs a great deal of clout in financial markets. Since the majority of SWFs are located in the Middle East and Asia, whether these largely opaque entities are friends or foes of the nations where they invest has been the subject of hot debates from time to time……………………………………….Full Article: Source

Economists release new analysis of a ‘Scottish Oil Fund’

Posted on 19 September 2014 by VRS  |  Email |Print

A new economic analysis of a potential Scottish Oil or Sovereign Wealth Fund has found that Scotland could earn the same from the fund as current revenues from North Sea oil and gas tax receipts. The new economic outlook found that Scotland could have amassed a fund worth between £73.64 billion and £147.28 billion in 24 years, the same time as the Norwegian Oil Fund has been running.
The economic analysis found that the Scottish Oil Fund would bring in an annual income of between £2.9 billion and £5.8 billion respectively in today’s prices, the same amount as current estimated tax receipts from North Sea oil and gas revenues……………………………………..Full Article: Source

State funds give mixed views on managers

Posted on 15 September 2014 by VRS  |  Email |Print

Appetite for alternative investments is only set to increase among institutional investors globally, with long-term contrarian external managers very hard to find. But while the evolution of institutional investment models falls into a similar pattern, starting with traditional public market exposures before expansion by geography and asset class, state funds’ views on the use of external managers varies markedly, speakers revealed at our China Investment Forum.
Addressing the audience during a panel discussion on best practices in international investing, Tomas Franzen, chief investment strategist for the second Swedish national pension fund (AP2), outlined how it plans to insource all its investments bar alternatives within the next two years………………………………………..Full Article: Source

Tsunami of sovereign funds threatens world markets, say investors

Posted on 09 September 2014 by VRS  |  Email |Print

With returns on government bonds at rock-bottom prices, sovereign wealth funds are muscling into stock markets and other higher-yielding assets like real estate at a rate that private investors warn could destabilise the world economy.
Since central banks cut interest rates to record lows in a bid to shore up flagging economic growth, world governments have had to look further afield to grow public pension money or central bank currency reserves. But the resulting tide of money is in danger of distorting markets, causing prices to reflect political priorities rather than financial reality, insiders say. It’s also threatening to inflate the very price bubbles that central bank teams globally are working so hard to prevent, experts suggest……………………………………….Full Article: Source

All you need to know about Temasek Review 2014 in 7 charts

Posted on 09 July 2014 by VRS  |  Email |Print

Temasek Holdings released its latest annual report on Tuesday, a colourful 104-page report packed with facts, figures and financial indicators.
For those who don’t have time to pore through the entire Temasek Review 2014, we’ve picked out seven charts that best summarise Temasek’s performance last year: Temasek’s net portfolio value - the total value of its assets - rose 3.7 per cent from $215 billion last year to a new record of $223 billion as at March 31. However, $5 billion of this increase was an injection of fresh funds from the Finance Ministry, Temasek’s sole shareholder. ………………………………….Full Article: Source

Unrest, Muted SWFs Slow Middle East M&A Activity

Posted on 27 June 2014 by VRS  |  Email |Print

Most investment bankers in Dubai’s financial center will tell you their pipeline – the transactions they are working on – is robust and that the Middle East’s post-crisis deal climate is improving. However, data for the first six months of 2014 suggest the regional dealmaker’s optimism is still premature.
The value of Middle Eastern mergers and acquisitions sunk to its lowest level in almost a decade, Dealogic data show. Transactions involving a Mideast buyer or seller fell to $23.6 billion in the first six months of this year to date, down 13% compared to the same period in 2013. Europe, by contrast, saw deal activity rebound in the same period………………………………………..Full Article: Source

Mideast SWFs To Boost Emerging Markets Exposure

Posted on 26 June 2014 by VRS  |  Email |Print

Buoyed by oil prices above $100 a barrel and a growing confidence in the global economy, sovereign wealth funds in the Middle East expect to receive more funding this year, providing them with extra financial firepower to raise their investments into emerging markets and asset classes such as private equity and real estate, according to an Invesco study.
Latin America, Africa and China are likely to be the main beneficiaries of the continuing shift towards emerging markets by the world’s sovereign funds despite their historical preference for developed markets such as the United Kingdom, Invesco said in its survey of 52 sovereign investors who collectively manage $5.7 trillion in assets………………………………………..Full Article: Source

Bullish sovereign funds will look to emerging markets, says survey

Posted on 26 June 2014 by VRS  |  Email |Print

Middle East sovereign wealth funds will remain focused on emerging markets as they seek long term growth from India, Africa and Latin America, a new study has found. Alternative investments, including property and private equity will also figure largely, according to the Invesco Global Sovereign Asset Management Study from the US-based investment management company.
About 54 per cent of Middle East sovereign investors, which includes sovereign wealth funds (SWFs), state pension funds, central banks and government ministries, will increase their funding levels this year, driven by strong country surpluses and government support………………………………………..Full Article: Source

Over $6t sovereigns to drive home market growth

Posted on 26 June 2014 by VRS  |  Email |Print

Invesco first Invesco Global Sovereign Asset Management Study, an in-depth report offers insight into the complex investment behaviour of sovereign investors across the globe.
The unique study, which provides a framework to help understand the investment preferences and strategy of these funds, shows that the biggest growth story among global sovereigns today is an increase in a so-called ‘public-private partnership’ investment approach. An approach, which sees commercially, minded sovereigns seeking direct strategic investment in private companies to support GDP, job creation and skills transfer………………………………………..Full Article: Source

Sovereign wealth funds: Investing for the unforeseeable future

Posted on 24 June 2014 by VRS  |  Email |Print

Sovereign wealth funds control about $30tn, so knowing what they are doing or planning to do is very important for asset managers. Acquiring that information is difficult, however, since hugely rich entities mostly accountable only to their national governments do not tend to be particularly chatty.
The second annual Invesco sovereign asset management survey offers a few insights, in particular that sovereign funds are expecting strong flows of new money as government surpluses allow increased contributions. They also expect to use that new money to build their strategic asset allocations………………………………………..Full Article: Source

Private markets, public investors: The march of the sovereigns

Posted on 18 June 2014 by VRS  |  Email |Print

Sovereign wealth funds, typically set up by oil-exporting nations, have been around for decades, in the case of Kuwait since 1953. But their influence has increased in recent years, as China has adopted a similar strategy for investing some of its vast foreign-exchange reserves while existing funds have been fuelled by gains from high oil prices.
However, a new survey of assets held by public investors shows that such wealth funds are still outpunched by more traditional players. Central banks are the biggest holders of assets, followed by public pension funds, with sovereign wealth funds coming third………………………………………..Full Article: Source

Worth of Global SWFs swells to $6.46t in first quarter

Posted on 03 June 2014 by VRS  |  Email |Print

The total worth of all Sovereign Wealth Funds (SWFs) in the world jumped by $955 billion to $6.46 trillion in the first quarter of 2014 compared to same period last year and Abu Dhabi Investment Authority (Adia) is ranked second globally with $773 billion assets, revealed Sovereign Wealth Fund Institute in its latest update.
According to the Institute, an American organisation that tracks SWF performance, Adia made $7.93 billion of deals last year, behind only funds from Norway, which has $838 billion assets. Adia is one of the longest-established and largest sovereign wealth funds in the world………………………………………..Full Article: Source

Saudi Kingdom and sovereign wealth funds

Posted on 03 June 2014 by VRS  |  Email |Print

The increase in Saudi Arabian Monetary Agency’s (SAMA’s) net foreign assets to a record high of SR2.732 trillion in April shows the level of growth in the monetary system accelerated in tandem with the fiscal expansionary policy.
The challenge with using central bank assets for driving economic development is the fact they typically have to be held in liquid, relatively low-risk assets. The best example globally is US Treasuries — a large, deep, liquid market. The range of comparable assets in Saudi Arabia is limited. Part of the challenge here is the underdevelopment of the fixed income market and the near-absence of secondary trading………………………………………..Full Article: Source

World’s Largest Sovereign Wealth Fund Should Follow Canada’s Model

Posted on 29 May 2014 by VRS  |  Email |Print

The study, commissioned by Norway’s Ministry of Finance, “Review of the Active Management of the Norwegian Government Pension Fund Global,” took a close look at the management of the fund since the 2007-2008 financial crisis and found that in order to realize greater returns, the fund should take more risk and adopt the opportunity cost management model pioneered by the Canadian Pension Plan Investment Board (CPPIB).
“The Fund has been run extremely efficiently; everyone involved in its management is conscientious about delivering high-quality investment management services at the lowest cost,” says Andrew Ang, Ann F. Kaplan Professor of Business and Chair of the Finance and Economics Division at Columbia Business School. “However, we found that by reducing its exposure to risk since 2009, the Fund is likely missing out on opportunities to increase returns through a more balanced approach. The Canadian model would help improve that.” (Press Release)

LIA Chairman Abdulmagid Breish reviews his new vision for Libya’s sovereign fund

Posted on 14 May 2014 by VRS  |  Email |Print

In February 2013, the outgoing chairman of the LIA, Mohsen Derregia was removed by the then Prime Minister and head of the LIA’s Board of Trustees, Ali Zeidan, and a temporary head, Ali Hibri, the Deputy Governor of the Central Bank of Libya and LIA’s then Board member, was installed while the search begun for a long term replacement.
Today, experienced international Libyan banker, Abdulmagid Breish, is the new chairman of the LIA, inheriting an organization that has been operating under decades of dictatorship with little transparency or accountability………………………………………..Full Article: Source

SWFs have progressed on the road from Santiago but governance is still an issue

Posted on 08 May 2014 by VRS  |  Email |Print

When, in 2008, sovereign wealth funds met in Santiago de Chile, theycame together to adopt the Santiago Principles, covering issues of importance for SWFs including the setting of clear objectives, better coordination with macroeconomic policies, good corporate governance and transparent investment and risk management frameworks.
The name was given not just because the principles were finally agreed in Santiago de Chile, or because of the commitment to transparency and accountability of all SWF activities in the country. The name is also appropriate in that it recalls the pilgrims’ path to Santiago. It seemed that SWFs had taken that path before the global crisis of 2008-09………………………………………..Full Article: Source

Global fund assets to top $100 trillion on real estate boom, PwC says

Posted on 22 April 2014 by VRS  |  Email |Print

Global fund assets are projected to grow by 60% to $101.7 trillion by 2020, fuelled by the shift toward individual retirement plans, a surge in high-net-worth individuals in emerging markets and growth in sovereign wealth fund (SWF) assets, PwC says.
Rapid urbanisation and demographic changes, especially within emerging markets, will lead to substantial growth in the real estate investment industry over the next six years. This will prompt institutional investors to raise allocations in real estate more than in other asset classes, according to Real Estate 2020: Building the future, a report from PwC………………………………………..Full Article: Source

Sovereign funds wary of hidden emerging market exposure: Templeton

Posted on 26 March 2014 by VRS  |  Email |Print

Sovereign wealth funds see emerging market turbulence as a long term buying opportunity, but are wary of excessive exposure via some of their Western holdings such as luxury goods makers, a top investment official at Franklin Templeton said.
David Smart, who heads a team managing around $85 billion for sovereign funds and supranational clients at Templeton, said the $5 trillion sector can afford to ride out volatile swings thanks to its long-term horizons………………………………..Full Article: Source

Sovereign funds off to a slow M&A start in 2014

Posted on 18 March 2014 by VRS  |  Email |Print

Sovereign wealth funds have been much slower to pursue merger and acquisition deals so far this year after a bumper 2013, according to Thomson Reuters data.
Sovereign wealth funds (SWFs), which invest windfall revenues from oil and other exports for future generations, sealed $155 million of M&A deals in publicly listed markets up to March 10, less than a tenth of the value for the same year-ago period………………………………………..Full Article: Source

Regional sovereign wealth funds rack up $5.6bln worth of deals

Posted on 18 March 2014 by VRS  |  Email |Print

Middle East sovereign wealth funds completed seven major direct property deals worth a total of US$5.6 billion last year – and more big ticket purchases are expected over the coming months. The deals involved commercial, retail and hotel properties.
According to the property broker JLL, the Kuwait Investment Authority sealed the largest middle Eastern sovereign wealth fund deal last year when St Martins, the property division of the Kuwait government, agreed to buy the 13-acre More London office and restaurant complex near London Bridge in London for $2.7bn………………………………………..Full Article: Source

Swelling oil fund makes every Norwegian a ‘millionaire’

Posted on 03 March 2014 by VRS  |  Email |Print

A bumper 2013 for Norway’s sovereign wealth fund, which invests surplus oil revenue, has made every Norwegian a virtual millionaire in kroner. After posting its second best year, Norway’s so-called “oil fund” - the world’s largest - signalled a shift away from fossil fuels, notably over environmental concerns.
The fund’s market value rose US$200 billion last year to top 5 trillion kroner, according to figures released by the central bank on Friday. That almost makes every single one of the Nordic country’s 5.1 million inhabitants a millionaire in the local currency (S$211,300), at least on paper………………………………………..Full Article: Source

How the Saudi Arabian dream could lift solar stocks

Posted on 20 February 2014 by VRS  |  Email |Print

When Saudi Arabia runs out of oil, what will sustain the nation of 28 million? That is the question that the nation’s leaders have thought long and hard about. One solution is putting surplus petrodollars into a sovereign wealth fund, which would invest that surplus in good times and provide steady interest income when the oil runs out.
Saudi Arabia has done just that, and now has the second largest sovereign wealth fund in the world with assets of $675.9 billion. At its present size, however, assuming an 8% annual return, which would yield interest income of $54 billion, the sovereign wealth fund would not be able to compensate for Saudi Arabia’s current oil income of around $300 billion a year………………………………………..Full Article: Source

Assets under management by 2020: $100 trillion

Posted on 18 February 2014 by VRS  |  Email |Print

Asset management firms currently have about $64 trillion in investable assets, but that number is predicted to grow to more than $100 trillion by 2020, a compound annual growth rate of more than 6%. Driving the growth will be investments from South America, Asia, Africa and the Middle East.
According to PwC, the asset management industry managed 36.5% of all assets held in pension funds, sovereign wealth funds and insurance companies, and by wealthy people. The firm believes that by 2020 the industry could boost its share of assets under management to 46.5%………………………………………..Full Article: Source

SWFs and long-term development finance : risks and opportunities

Posted on 12 February 2014 by VRS  |  Email |Print

Sovereign wealth funds represent a large and growing pool of savings. An increasing number of these funds are owned by natural resource–exporting countries and have a variety of objectives, including intergenerational equity and macroeconomic stabilization.
Traditionally, these funds have invested in external assets, especially securities traded in major markets. But the persistent infrastructure financing gap in developing countries has motivated some governments to encourage their sovereign wealth funds to invest domestically………………………………………..Full Article: Source

KIC to build research centre amid restructure

Posted on 10 February 2014 by VRS  |  Email |Print

The new head of Korean sovereign fund KIC has embarked on the largest restructuring in the institution’s history to align it with international best practice as it strives to improve returns.
Ahn ‘Hank’ Hong-Chul, named chief executive at $72 billion Korea Investment Corporation last December, has announced plans to establish a research centre within the investment management division at its Seoul headquarters…………………………………..Full Article: Source

Does the United States need a sovereign wealth fund?

Posted on 21 January 2014 by VRS  |  Email |Print

Sovereign wealth funds are large investment companies owned by governments that manage an array of financial assets, from stocks and bonds, to income from natural resources and real estate. In order of holdings, the Monitor Group’s Sovereign Wealth Fund Assets Under Management Table shows that Norway, China, United Arab Emirates, Singapore, and Kuwait have the largest sovereign wealth funds.
Establishing a U.S. sovereign wealth fund to do the purchasing of long-term and risky assets would give the Fed room to maneuver in monetary policy, and restrict its job to steering the economy rather than making controversial portfolio investment decisions. And a U.S. sovereign wealth fund could stand as a bulwark against wild swings in financial markets………………………………………..Full Article: Source

Direct sovereign wealth fund transactions grow in 2013

Posted on 09 January 2014 by VRS  |  Email |Print

According to Sovereign Wealth Fund Transaction Database, in 2013, sovereign wealth funds completed 1,883 direct transactions with a total value of US$ 66.05 billion, an increase US$ 1.38 billion from 2012.
The number of direct transactions grew by 53.8% from 2012 and tripled the number of transactions compared to 2011. Emboldened sovereign funds amplified direct investments in a number of countries including Germany, Australia and China………………………………………..Full Article: Source

The three trends facing Asian SWFs in 2014

Posted on 06 December 2013 by VRS  |  Email |Print

The changing macro environment created by a post-QE world will create three major trends for sovereign wealth funds in Asia. That is according to Pascale Blanqué, chief investment officer with French asset management group Amundi.
Outlining how he expects the market to evolve in the coming year, Blanqué said the move to less accommodative monetary policies will not lead to the stabilisation many investors expect. ‘Normalisation is a false trend. We are seeing a shift from the classic interest rate framework to a larger framework where asset prices will continue to move one way or another,’ he said………………………………………..Full Article: Source

SWFs should rope in independent experts for risk, assets allocation

Posted on 18 November 2013 by VRS  |  Email |Print

Sovereign wealth funds (SWFs), which have increasingly assumed key roles in their domestic economies and global financial markets, should provide for real delegation to an independent operational manager within overall limits on risk and/or asset allocation, according to an International Monetary Fund (IMF) working paper.
“The assets under management by SWFs have grown rapidly over the last few years, driven by balance of payment surpluses and commodity prices,” IMF said in the paper. Upper-end estimates indicate total SWF assets of around $5tn. This figure may double count some sovereign assets, by including central bank assets that are already captured in official reserves, the paper said………………………………………..Full Article: Source

Futures fund report tabled

Posted on 15 November 2013 by VRS  |  Email |Print

Former University of Saskatchewan president Peter MacKinnon has released his report to Premier Brad Wall on a proposed Saskatchewan Futures Fund. The report provides a framework for the government to create a fund to permanently save a portion of the province’s non-renewable resource revenues to invest and grow for future generations.
MacKinnon was appointed by Wall in October of 2012 as part of the Saskatchewan Plan for Growth to examine and report on the efforts government could take to safeguard one-time non-renewable resource revenues………………………………………..Full Article: Source

banner
banner
February 2015
M T W T F S S
« Jan    
 1
2345678
9101112131415
16171819202122
232425262728