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

Posted on 28 August 2015 by VRS  |  Email |Print

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

Norway oil fund hit by China - CEO

Posted on 28 August 2015 by VRS  |  Email |Print

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

Temasek said to be in bid for Tesco’s S Korean business

Posted on 28 August 2015 by VRS  |  Email |Print

Temasek Holdings has teamed up with South Korean private equity firm MBK Partners to bid for the South Korean arm of British supermarket operator Tesco, two people familiar with the deal said. Asia-focused MBK has already entered the race for the business, valued at about US$6 billion (S$8.4 billion). It is vying against United States private equity giant Carlyle Group and a rival consortium comprising Affinity Equity Partners and KKR.
The sources said Temasek’s entry marks a rare instance where the Singapore investment giant is bidding against Singapore sovereign wealth fund GIC, which has partnered Carlyle. Temasek’s latest interest in the consumer sector comes more than a year after it bought almost a quarter of health and beauty products retailer AS Watson, backed by Hong Kong tycoon Li Ka-shing, for about US$5.7 billion in its single biggest investment………………………………………..Full Article: Source

DLF plans to sell a majority stake in Delhi project to Singapore’s GIC

Posted on 28 August 2015 by VRS  |  Email |Print

DLF, India’s largest real estate developer, is close to selling a majority stake in a residential project in New Delhi to Singapore’s sovereign wealth fund GIC, two people aware of the deal said. The transaction may be valued at Rs 1,500 crore- Rs 2,000 crore.
The 25-acre project in the Moti Nagar area of west Delhi, to be called DLF Capital Greens 6, has secured all approvals and is likely to be launched in the next few months. The builder did not find many takers when it assessed demand for the project through local brokers some months ago, one of the persons said. “DLF may be looking at commencing construction and selling only when the market improves,” the person said, asking not to be identified………………………………………..Full Article: Source

Abu Dhabi firms to rethink deal to cut 1MDB debts, says report

Posted on 27 August 2015 by VRS  |  Email |Print

Abu Dhabi’s International Petroleum Investment Co (Ipic) is considering pulling out of a plan to help restructure 1Malaysia Development Bhd’s debts, Singapore’s Business Times (BT) reported. Citing a source, the paper said Ipic and its subsidiary, Aabar Investment, which signed an agreement last May to help 1MDB cut its debts by RM16 billion, are now having second thoughts about the plan.
BT said it was unclear what led Ipic to rethink the deal, but cited a report in the Gulf Times of “growing unease” in the Middle East in the wake of the 1MDB controversy, including the resignations of Aabar Investments’ chairman Khadem al-Qubaisi and chief executive Mohamed Badawy al-Husseiny………………………………………..Full Article: Source

Oman, Bahrain most vulnerable to oil slump: S&P

Posted on 26 August 2015 by VRS  |  Email |Print

Oman and Bahrain are the most vunerable Gulf countries due to a prolonged slump in the oil prices, according to Standard and Poor’s credit rating agency. The agency attributed this to the low fiscal reserves and lack of economic diversification. Moreover, Oman’s sovereign wealth fund (SWF) has assets of $13 billion, far smaller than other Gulf SWFs.
Ministry of Finance data showed allocations for government wages and salaries amounting to 1.5 billion riyals, including 3.5 million riyals as pension payments for retired ministers, 1.3 billion riyals as allowances (including cost-of-living allocations) and 225 million riyals for other dues in 2014………………………………………..Full Article: Source

Swiss Look Into Connection Between Banking Sector and 1MDB

Posted on 24 August 2015 by VRS  |  Email |Print

Swiss authorities have opened a criminal probe into the relationship between “suspicious transactions” in the country’s banking sector and a troubled state investment fund tied to Malaysian Prime Minister Najib Razak.
A spokesman for Switzerland’s Office of the Attorney General said a pair of transactions reported to the Swiss Money Laundering Reporting Office, or MROS, triggered the investigation, which is focused on the 1Malaysia Development Bhd. fund, or 1MDB. The 1MDB advisory board is headed by Mr. Najib………………………………………..Full Article: Source

Interest in 1MDB assets proves it has value: PM

Posted on 24 August 2015 by VRS  |  Email |Print

Prime Minister Datuk Seri Najib Abdul Razak today said he had met with the Emir of Qatar who had expressed his interest to invest in 1MDB owned assets. “If 1MDB assets are worthless, there would be no interest from investors.
“However, investors from Qatar see 1MDB assets as those able to generate lucrative, long term profits,” he said in his latest Facebook posting. It was reported that on July 31, Najib had an audience with the Emir of Qatar, Sheikh Tamim Hamad Al-Thani to discuss efforts to strengthen ties between Malaysia and Qatar………………………………………..Full Article: Source

Kuwait’s fiscal prudence pays off with rating agencies

Posted on 24 August 2015 by VRS  |  Email |Print

Kuwait’s strong fiscal and external accounts are behind the country’s eminently favourable credit ratings, with Standard & Poor’s recently conferring a long-term rating of AA. Understandably, rating agencies derive comfort from the country’s substantial sovereign wealth fund (SWF). Kuwait boasts a substantial reserve that provides the necessary cushion for stakeholders like creditors and exporters.
The sovereign wealth fund, as managed by Kuwait Investment Authority, stood at $592 billion in June, ranked among the top in the world as estimated by the Sovereign Wealth Institute. General reserves have received a major boost over recent years after a decision to raise funding set aside as part of the mandate for the future. In 2013 — or before the drop in oil prices — a decision was made to increase the amount set aside — 25 per cent rather than 10 per cent of oil revenues………………………………………..Full Article: Source

Alaska Permanent Fund gains 4.9% for fiscal year

Posted on 21 August 2015 by VRS  |  Email |Print

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

Norwegian oil fund sees losses as US equities drop in value

Posted on 21 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund saw its value decline by NOK53bn (€6bn) over the course of the second quarter, as the kroner strengthened and US equity holdings suffered negative returns.
Yngve Slyngstad, chief executive of Norges Bank Investment Management, in charge of the NOK6.9trn Government Pension Fund Global, said fixed income returns were impacted by a rise in yields across its main markets as he announced overall returns of -0.9%, ahead of its benchmark. Fixed income accounted for over a third of assets at the end of June and returned -2.2%, as only securitised debt seeing a positive return………………………………………..Full Article: Source

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

Posted on 21 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund posted a -0.9 percent return, or a loss of 73 billion Norwegian kroner (8.79 billion U.S. dollars), in the second quarter of 2015, the first negative quarterly return in three years, the fund said on Wednesday.
Equity, fixed-income and real estate investments returned -0.2 percent, -2.2 percent and 2.0 percent respectively in the quarter, according to a statement of the fund, formally known as the Government Pension Fund Global (GPFG) and ranked as the world’s biggest sovereign wealth fund………………………………………..Full Article: Source

Norway’s Giant Fund Buckles in Q2?

Posted on 21 August 2015 by VRS  |  Email |Print

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

Norway sovereign fund posts first negative return since 2012

Posted on 20 August 2015 by VRS  |  Email |Print

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

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

Posted on 20 August 2015 by VRS  |  Email |Print

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

Norway’s sovereign wealth fund suffers $8.8bn loss

Posted on 20 August 2015 by VRS  |  Email |Print

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

BB may provide $2.0b to sovereign wealth fund

Posted on 19 August 2015 by VRS  |  Email |Print

The central bank is going for financing necessary infrastructure development to help achieve 7.0 per cent economic growth by the end of this fiscal year (FY). Bangladesh Bank (BB) Governor Dr Atiur Rahman disclosed Tuesday the growth-targeted investment in infrastructure development in a bigger way.
Concomitant with the initiative for financing in infrastructure development the central bank also underscores grooming right economic leadership to shoot for the target of higher growth. “We’re taking preparation to provide finance for ensuring infrastructure facilities. But we need now to develop economic leadership for achieving such growth,” the central bank chief said while addressing ‘EBL Leadership Lecture Series’ at its Motijheel office in the capital………………………………………..Full Article: Source

Genting down 2% as it gets dropped by Norwegian fund

Posted on 19 August 2015 by VRS  |  Email |Print

Shares in Genting Bhd fell as much as 14 sen, or 2%, to RM7 this morning following news that the Norwegian Government Pension Fund Global, the world’s top sovereign wealth fund with assets of US$871 billion (RM3.58 trillion), has dropped Genting from its investments.
According to a statement from the Norwegian fund yesterday, Genting, construction firm IJM Corp Bhd as well as South Korean companies Posco and its subsidiary Daewoo International Corp were removed from the fund as these companies were deemed bearing the risk of severe environmental damage. ……………………………………….Full Article: Source

Temasek leads $40m funding into invoice marketplace C2FO

Posted on 13 August 2015 by VRS  |  Email |Print

Singapore state fund Temasek Holdings has led a $40 million funding round into US-headquartered innoice marketplace startup C2FO, the company announced. Temasek joins a growing list of C2FO investors including Union Square Ventures, Summerhill Venture Partners, OPENAIR Equity Partners, Mithril Capital, and Tiger Global.
C2FO, which is a fintech startup, said its business had quadrupled in the second quarter compared to the same period for the previous year. The amount of capital flowing through its platform reached a record $5.4 billion for the three months ended June 30, 2015, as against $1.2 billion during the same period a year ago, the company, whose service allows firms to get a discount from their vendors for upfront payment, added………………………………………..Full Article: Source

Top wealth fund says half its stock trades now outside exchanges

Posted on 13 August 2015 by VRS  |  Email |Print

Up to half of all shares traded by the world’s largest sovereign wealth fund are bought and sold outside of stock markets in a bid to cut transaction costs, a fivefold rise since 2010, a senior executive at Norges Bank Investment Management (NBIM) said.
The manager of Norway’s $873 billion oil fund is gradually moving away from automated trading in favor of a measured approach that even includes the services of stockbrokers, Chief Investment Officer for Asset Strategies Oyvind Schanke said. In a recent report, NBIM argued that global stock exchanges are failing to meet the needs of large institutional investors as the race towards ever faster buying and selling is both unnecessary and costly, benefiting only high-frequency traders………………………………………..Full Article: Source

Symantec to sell Veritas for $8 billion to focus on security software

Posted on 12 August 2015 by VRS  |  Email |Print

Norton antivirus software maker Symantec Corp has agreed to sell its data storage unit, Veritas, for $8 billion to a group led by Carlyle Group LP as it seeks cash to turn around its core security software business.
Symantec, which bought Veritas for $13.5 billion in 2005, said it expected about $6.3 billion in net proceeds. The sale is expected to close by Jan. 1. The buyer group includes Singapore’s sovereign wealth fund GIC………………………………………..Full Article: Source

2015: Strong Start for Sovereign Wealth Fund Deals

Posted on 11 August 2015 by VRS  |  Email |Print

Despite a possible future slowdown in the global economy, direct sovereign wealth fund transactions for the first half of 2015 conquered the first half of 2014. According to the Sovereign Wealth Fund Transaction Database (SWFTD), wealth funds generated US$ 64 billion worth of deals in the first half of 2015 versus US$ 52 billion in the first half of 2014. While this trend is promising in regard to wealth funds acquiring more in the first half of 2014, SWFI recorded 910 observations versus 833 observations in the first half of 2015.
These institutional investors became slightly more bullish in direct investing in developed markets in 2015. In Europe, the United Kingdom received the most wealth fund inflows of direct investment in the first half of 2015, some US$ 21.1 billion, trumping their peers. However, more sovereign investors embarked on investing in continental Europe real estate versus a strong preference toward London………………………………………..Full Article: Source

Norway might have to dip into its savings

Posted on 11 August 2015 by VRS  |  Email |Print

If the government has to withdraw money from its $875 billion sovereign wealth fund, it will be a historical step. It’s either that, or heavily rein in fiscal spending at a time when the country needs it most. The state’s spending could start to outstrip income from oil, which it pours into its wealth fund for future generations.
Taking money from the fund wasn’t planned for at least a few decades and no finance minister wants that to be their legacy. Approaching that withdrawal will spawn an ugly debate about what got Norway there faster than expected, and maybe even new legislation………………………………………..Full Article: Source

The World’s Largest Sovereign Wealth Fund Is About To Become A Seller

Posted on 11 August 2015 by VRS  |  Email |Print

When last we checked in with Norway, the country’s sovereign wealth fund – the largest in the world- was busy going full tin foil hat fringe blog, blasting monetary policy’s iron grip on asset prices and bemoaning the presence of parasitic HFTs and increasingly fragmented markets which conspire to cost institutional investors and those they represent billions.
That was in April. Back in March, we highlighted the tough predicament the country faces in terms of combatting a housing bubble while simultaneously coping with plunging crude prices. We summed up the situation as follows: the country is truly backed into a corner, ease too much and the housing bubble becomes even more unsustainable, don’t ease enough and the oil-dependent economy gets it………………………………………..Full Article: Source

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

Posted on 05 August 2015 by VRS  |  Email |Print

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

NIIF to fund core projects

Posted on 03 August 2015 by VRS  |  Email |Print

India’s own sovereign wealth fund like entity - National Investment and Infrastructure Fund, modelled on Singapore’s investment vehicle Temasek, will be operational by the end of this year and provide equity finance to core sector projects to boost economic activity, Minister of State for Finance Jayant Sinha said.
NIIF will look at both greenfield as well as brownfield projects and “will fill the gap of equity financing,” he added, while further maintaining that it would also look at supporting stalled projects. The fund will have its own governing council and the management will be paid market salaries to attract the best talent. Money from the fund would be routed to provide equity support to those NBFCs and financial institutions, which are engaged in infrastructure financing across sectors, and corpus to JAMCs and equity/debt to commercially viable infrastructure and other projects……………………………………….Full Article: Source

Najib says Qatar, China interested in 1MDB assets

Posted on 03 August 2015 by VRS  |  Email |Print

Malaysian Prime Minister Najib Razak said Qatar and China have expressed an interest in the assets of debt-laden state fund 1Malaysia Development Bhd (1MDB), state news agency Bernama reported. 1MDB, the centre of several investigations over graft and its management of funds, is seeking to offload assets parked under its power unit Edra Global Energy Bhd, and sell developmental rights in its high-profile property projects.
Najib said Qatar’s Emir Sheikh Tamim bin Hamad al-Thani had indicated that the Qatar Investment Authority was keen to view 1MDB assets and purchase land in its Bandar Malaysia project. The two leaders met in Malaysia on Friday………………………………………..Full Article: Source

Samruk Kazyna Hands-over 10% Stake in KMG to National Bank

Posted on 31 July 2015 by VRS  |  Email |Print

Kazakhstan’s Samruk-Kazyna National Welfare Fund has said it will hand-over 10% of its ordinary shares in NC KazMunaiGas JSC to the National Bank of Kazakhstan, according to Kazinform. As per the relevant government decision, the Sovereign Wealth Fund must transfer 10% of the common shares in KazMunaiGas to the country’s central bank at a cost determined by an independent appraiser.
Samruk has specified it will will divest 58,420,748 tenge worth (1.00 USD = 187.480 KZT – ed.) of the ordinary shares, which account for 10% of the total, plus one common share. The value should be no less than 750,000,000,000 tenge in value, its official statement says……………………………………….Full Article: Source

Chile fiscal deficit 0.3 pct in first half as copper prices pinch

Posted on 31 July 2015 by VRS  |  Email |Print

Chile posted a fiscal deficit of 0.3 percent of estimated gross domestic product in the first half of 2015, the government’s budget office reported on Thursday, due to weak copper revenue. The deficit was the equivalent of $792 million. Chile is the world No.1 copper producer and has suffered as prices languish at multiyear lows due to worries over demand in key buyer China.
Meanwhile, the country’s rainy day sovereign wealth fund fell in value to just under $14 billion by the end of June, compared to $14.7 billion at the end of last year. The fiscal deficit in the second quarter was 0.4 percent after a slim 0.1 percent surplus in the first three months of the year, the budget office said………………………………………..Full Article: Source

Singapore GIC Reports Higher Return, Cautions on Market Outlook

Posted on 30 July 2015 by VRS  |  Email |Print

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

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

Posted on 30 July 2015 by VRS  |  Email |Print

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

Kazakhstan backs 2022 bid promises with oil fund

Posted on 30 July 2015 by VRS  |  Email |Print

Kazakhstan will break into its $70 billion sovereign wealth fund to help pay the bills if it wins the 2022 Winter Olympics, Prime Minister Karim Massimov said yesterday ahead of an IOC vote. The International Olympic Committee, which will vote between the former Kazakh capital of Almaty and Beijing on Friday, has said the Central Asian republic’s reliance on oil revenues is a risk.
But Massimov told a small group of journalists including AFP that Kazakhstan was planning on oil staying at its weakened price of $50 a barrel. He said Kazakhstan’s fund was modelled on one used by Norway to hold its oil and gas revenues. Kazakhstan’s oil and gas accounted for about a quarter of its gross domestic product in 2013, according to the Extractive Industries Transparency Initiative………………………………………..Full Article: Source

Kazakh wealth fund to sell 10 pct in state oil firm KMG to central bank

Posted on 30 July 2015 by VRS  |  Email |Print

Kazakhstan’s sovereign wealth fund will sell 10 percent of shares in state oil firm KazMunaiGas to the central bank, the government said on Wednesday, in a move aimed at easing the debt burden of a company hit by low oil prices.
Samruk-Kazyna, which manages the Central Asian nation’s largest state-owned assets, is to sell a package of 10 percent plus one ordinary share to the central bank for a price not less than 750 billion tenge ($4 billion), the government said in a statement signed by Prime Minister Karim Masimov………………………………………..Full Article: Source

Southern Gas Corridor’s capitalization increases by over 7 times

Posted on 30 July 2015 by VRS  |  Email |Print

The Southern Gas Corridor CJSC’s registered capital increased up to $725 million upon the decisions of the Supervisory Board and the Shareholders’ Meeting, the State Oil Fund of Azerbaijan (SOFAZ) said. The company’s initial capital amounted to $100 million. But its capital increased to $300 million in February 2015 as a result of changes in the nominal share of the company.
“SOFAZ transferred $318.75 million to the treasury account of the country’s Ministry of Economy and Industry in the first half of 2015,” the statement said. “As a result, the share of the fund’s capital of the company has reached $369.75 million (51 percent).”……………………………………….Full Article: Source

SWF: Temasek rides China wave to near 20% return

Posted on 29 July 2015 by VRS  |  Email |Print

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

No pressure on Temasek to offload NOL, Drewry says

Posted on 28 July 2015 by VRS  |  Email |Print

Singapore’s Temasek may be interested in offloading some of its underperforming companies such as NOL, but there is no pressing need for the immense state investor to do it on the cheap through a distressed sale, Drewry says.
The analyst noted in its Container Insight Weekly that NOL’s prolonged period of losses have not put a scratch on the Temasek juggernaut, which is under no pressure to enter into a fire sale. Temasek owns around 67 percent of NOL, the listed holding company of container carrier APL………………………………………..Full Article: Source

Azerbaijan Oil Fund’s investment portfolio exceeds limit for 2015 by 32.8%

Posted on 28 July 2015 by VRS  |  Email |Print

By 1 July the State Oil Fund of Azerbaijan exceeded the investment portfolio limit (AZN 28.2 bn) set for 2015 by 32.8%. According to the Fund, in the first half of 2015 its investment portfolio in manats, as the basic currency, grew from AZN 28.79 bn up to AZN 37.459 bn or by 30.1%. In Q2 growth made up AZN 959,000 or 2.6%.
The investment portfolio in euro as the base currency rose from AZN 30.2 bn up to AZN 32.26 bn or by 6.7%. The investment portfolio in US dollar fell from $36.7 bn to $34.8 bn or by 5.1%………………………………………..Full Article: Source

Kuwaiti MPs head to UK to check on SWF’s London office

Posted on 27 July 2015 by VRS  |  Email |Print

Kuwaiti lawmakers scrutinising the country’s sovereign wealth fund departed to Britain on Friday to check the activities of its London bureau, Kuwait’s parliament said in a statement on the state news agency.
The MPs travelled to London to “investigate happenings” at the fund’s London office and will stay there till August, the National Assembly was quoted as saying. The fund, which has usually operated in great secrecy, did not respond to a request for comment on Friday………………………………………..Full Article: Source

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

Posted on 27 July 2015 by VRS  |  Email |Print

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

1MDB is a debt not wealth fund

Posted on 27 July 2015 by VRS  |  Email |Print

Malaysia’s sovereign wealth creation vehicle, 1MDB, is today surviving on a lease extended by the sufferings of the wage earners. It is tax money, fuel price hikes and savings from institutions that seem to head to save 1MDB with urgently needed breathing space on time.
And lest we forget, international outfits that are prided by acclaimed institutions, as in the likes of the Goldman Sachs are embroilled in what is turning out to be the heist of the century politically-ringed money trail cutting into several destinations around the world………………………………………..Full Article: Source

SOFAZ announces H1 statement on revenue and expenditure

Posted on 24 July 2015 by VRS  |  Email |Print

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

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

Posted on 24 July 2015 by VRS  |  Email |Print

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

Sovereign Wealth Funds Paid Around $14 Billion in Fees

Posted on 23 July 2015 by VRS  |  Email |Print

When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional investor classes are sovereign wealth funds which have taken the parochial asset management industry by storm over the past seven years.
37% of sovereign wealth fund assets are managed externally, according to a recent SWFI estimate. Sovereign Wealth Funds $2.76 Trillion Managed Externally. Typically, a sovereign wealth fund is perceived as an enigma for traditional U.S. small to mid-sized asset managers. These managers have spent their marketing dollars and time toward investment consultants, endowments and U.S. pensions. This is changing………………………………………..Full Article: Source

CICC focus on $7.8b as it files for listing

Posted on 23 July 2015 by VRS  |  Email |Print

China International Capital Corp, the mainland’s first investment bank, has filed for an initial public offering in Hong Kong that could be worth up to HK$7.8 billion.
CIC owns a 43.35 percent stake in CICC. Singapore’s sovereign wealth fund GIC owns 16.35 percent, while private equity firms TPG Capital Management LP and KKR & Co hold 10.3 percent and 10 percent respectively………………………………………..Full Article: Source

Temasek, UOB offer $685m in venture debt financing

Posted on 23 July 2015 by VRS  |  Email |Print

Investment firm Temasek Holdings has tied up with lender UOB to offer up to US$500 million ($685 million) in venture debt loans over the next five years to Internet start-ups in China, India and South-east Asia.
Venture capital deals usually mean an entrepreneur sells off a stake in the start-up while venture debt involves lending money in return for interest payments and the potential to take a stake at a later stage. The potential market size for venture debt in the three regions is about US$2.2 billion, UOB said, citing a report by EY………………………………………..Full Article: Source

Austerity for Kazakhstan as Nazarbayev Cuts Access to Oil Fund

Posted on 22 July 2015 by VRS  |  Email |Print

In July President Nursultan Nazarbayev stated that the Kazakh economy will no longer be supported by the money from the oil reserve fund, instructing his cabinet to search for this revenue elsewhere. Many in Kazakhstan are worried that the economy will severely contract without extra support from this fund to cover budget deficits.
“In these difficult times we can’t use the money from the State Oil Fund here and there, we don’t have such funds anymore. We will not allow this money used to subsidize the economy anymore. The government has to look elsewhere and find new and effective resources, and find ways to use that money effectively. And the people have to see the results of this work. And we will have to slow down our economy growth,” Nazarbayev said………………………………………..Full Article: Source

World’s Cheapest Bank Is Still Too Pricey for Analysts Expecting Fire Sale

Posted on 22 July 2015 by VRS  |  Email |Print

The state-run lender, Latin America’s biggest by assets, is tumbling after Brazil’s sovereign wealth fund sold 1 million shares last month, signaling the government may be preparing to tap the fund to finance its budget deficit. With 80 percent of the fund’s assets tied up in Banco do Brasil, withdrawing cash from the account would mean dumping more shares.
“The sale is very negative for shares,” Gilberto Tonello, an analyst at Grupo Bursatil Mexicano in Sao Paulo, said in a telephone interview Monday. “What are investors going to think? If the biggest shareholder is selling, then I want to get out before it does.”……………………………………….Full Article: Source

Temasek, UOB offer $685m in venture debt financing

Posted on 22 July 2015 by VRS  |  Email |Print

Investment firm Temasek Holdings has tied up with lender UOB to offer up to US$500 million ($685 million) in venture debt loans over the next five years to Internet start-ups in China, India and South-east Asia.
Venture capital deals usually mean an entrepreneur sells off a stake in the start-up while venture debt involves lending money in return for interest payments and the potential to take a stake at a later stage. The potential market size for venture debt in the three regions is about US$2.2 billion, UOB said, citing a report by EY………………………………………..Full Article: Source

Malaysian fund Khazanah exits India’s L&T, makes 15% gross return

Posted on 21 July 2015 by VRS  |  Email |Print

Malaysian sovereign wealth fund Khazanah Nasional Bhd (Khazanah) has exited its four-year-old investment in India-based L&T Finance Holdings Ltd, the public-listed financial services unit of conglomerate Larsen and Toubro Ltd (L&T).
The sovereign fund, which had a remaining 1.1 per cent stake in L&T, pocketed around Rs 120 crore ($19 million) from the sale of its last shareholding, according to VCCircle. The fund is estimated to have made around 15 per cent gross return on its four-year-old investment in local currency. In dollar terms, it has booked a loss, as per VCCircle estimates………………………………………..Full Article: Source

Korean Sovereign Fund Drops Bid to Buy L.A. Dodgers Stake

Posted on 20 July 2015 by VRS  |  Email |Print

South Korea’s sovereign-wealth fund says it is no longer pursuing a stake in the Los Angeles Dodgers. The Wall Street Journal reported in April that Korea Investment Corp. was interested in purchasing a minority stake in the Major League Baseball team. The Dodgers’ owners also had held discussions with a number of other interested organizations, the Journal reported at the time.
KIC is no longer pursuing a deal after conducting due diligence, said people with knowledge of the matter. These people didn’t say why KIC, which manages about $85 billion in assets, walked away. Korean news reports earlier had cited some Korean law makers’ criticism of the involvement of KIC’s chairman and chief executive, Hongchul Ahn, in the deal………………………………………..Full Article: Source

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