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Norway’s gargantuan sovereign wealth fund, by the numbers

Posted on 22 August 2014 by VRS  |  Email |Print

Only 5 million people live in Norway, but thanks to the country’s careful management of its oil wealth, the country runs the largest sovereign wealth fund in the world. Everything about the fund is big. Very big. Reported assets, for example, totaled $890 billion at the end of June—that’s $178,000 for every Norwegian. And the fund holds around 1% of all the stocks and bonds in the world.
By the end of 2020 the government expects the fund—officially known as the Government Pension Fund Global—to be worth the equivalent of $1.1 trillion in today’s money. To try to put the fund’s size and growth in perspective, the chart below shows its year-end values converted into current dollars, alongside a few examples of things that fetch roughly the same amount of money today………………………………………..Full Article: Source

Norway sovereign fund up 3.3% in Q2

Posted on 22 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, returned 192 billion kroner (S$38.79 billion) in the second quarter as energy stocks and emerging markets led a rally amid turmoil in Iraq and Ukraine. The Government Pension Fund Global gained 3.3 per cent in the quarter, the Oslo-based investor said yesterday. The US$880 billion fund’s stock holdings returned 4 per cent and its bonds 2 per cent. Real estate returned 3 per cent.
“Equity markets rose in the second quarter and emerging markets performed best,” Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which runs the fund, said in a statement. “Considerable liquidity flowed into the market, which pushed asset prices up.”……………………………………….Full Article: Source

Russia Tensions May Hurt Norway Oil Fund Earnings

Posted on 21 August 2014 by VRS  |  Email |Print

The effect on European equities of tensions between Russia and the West could pose a challenge to Norway’s $890 billion sovereign-wealth fund, its chief executive said Wednesday. Yngve Slyngstad also told The Wall Street Journal that the fund has retained its holdings in Russian banks and oil companies despite the tensions, and U.S. and European sanctions against Russia.
“The biggest challenge regarding Russia is of course how it leads to a pricing of other assets, first and foremost our European stockholdings, and we have a huge share of our equity holdings in Europe,” he said………………………………………..Full Article: Source

Norway’s Wealth Fund Gains $31 Billion on Global Stock Surge

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, returned 192 billion kroner ($31 billion) in the second quarter as energy stocks and emerging markets led a rally amid turmoil in Iraq and Ukraine. The Government Pension Fund Global gained 3.3 percent in the quarter, the Oslo-based investor said today. The $880 billion fund’s stock holdings returned 4 percent and its bonds 2 percent. Real estate returned 3 percent.
“Equity markets rose in the second quarter and emerging markets performed best,”Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which runs the fund, said in a statement. “Considerable liquidity flowed into the market, which pushed asset prices up.”……………………………………….Full Article: Source

Norway to keep $8.2bn Russian assets – for now

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s massive sovereign wealth fund yesterday announced that it was likely to hang on to its $8.2bn (£4.93bn) worth of Russian assets des­pite Western sanctions on Moscow. However, the $885bn fund – one of te world’s biggest investors said it did not plan further purchases because of political risk.
The fund has $8.2 billion invested in Russian bonds and stocks, and kept that holding broadly unchanged in recent months, chief executive, Yngve Slyngstad told a news conference. During that time, western countries imposed sanctions on Russia, accusing it of backing separatist rebels in eastern Ukraine. Moscow, denying the charge, hit back by stopping imports of many food products………………………………………..Full Article: Source

Dubai’s ICD Said to Seek $880 Million Atlantis Debt Refinancing

Posted on 19 August 2014 by VRS  |  Email |Print

Investment Corporation of Dubai, the emirate state-owned holding company, is seeking to refinance an $880 million loan taken out by resort hotel Atlantis, The Palm, according to four people with knowledge of the matter.
The company hired HSBC Holdings Plc (HSBA), Standard Chartered Plc (STAN), and Emirates NBD PJSC on the deal, three of the people said, asking not to be identified as the talks aren’t public. The company is seeking a significant cut on the 5.5 percent above the London interbank offered rate price it has on the existing deal, three of the people said. The new loan could be increased to about $1 billion, one of the people said………………………………………..Full Article: Source

Norway Fund Told to Forget Riskier Assets Until Oversight Fixed

Posted on 18 August 2014 by VRS  |  Email |Print

Norway’s $880 billion sovereign wealth fund can’t be allowed to chase riskier assets until lawmakers fix the oversight gaps that emerged in connection with its purchase of Formula One shares, according to the biggest party in the nation’s parliament.
“The Formula One case was quite an eye-opening experience for politicians who are dealing with issues regarding this fund,” Marianne Marthinsen, the Labor Party’s finance spokeswoman, said in an interview in Oslo on Friday. “It illustrates that we need a strong system of monitoring.”……………………………………….Full Article: Source

Khazanah’s offer a good exit oppoturnity: Analyst

Posted on 15 August 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd’s bid to buy up shares in troubled national carrier Malaysian Airline System Bhd (MAS) it does not already own for 27 sen a piece represents a good exit opportunity for minority shareholders, analysts said.
Major shareholder Khazanah last Friday, announced that it plans to take MAS private in a bid to restructure the company away from the public eye. It had said that the de-listing is the first part of a detailed restructuring plan likely to be finalised by the end of the month………………………………………..Full Article: Source

Balance of Timor-Leste Petroleum Fund at US$16.6 billion in June

Posted on 15 August 2014 by VRS  |  Email |Print

The Timor-Leste Petroleum Fund had a balance of US$16.6 billion at the end of June, compared to US$15.7 billion at the end of last March, the Central Bank of Timor-Leste announced on Wednesday in Dili. A Central Bank press release concerning the second quarter of the year indicated that gross capital inflows rose to US$1.084 billion, of which nearly US$700 million was due to royalty payments from the National Petroleum Authority.
The Fund’s return on investments was about US$413 million, with US$119.45 million referring to the entry of dividends and US$311.60 million to interest, as a consequence of changes affecting the market value of securities held on 30 June 2014, states the text………………………………………..Full Article: Source

CIC Set to be ‘Picky’ and ‘Stingy’ with Asset Managers, Says Consultant

Posted on 14 August 2014 by VRS  |  Email |Print

Asset managers shouldn’t expect ‘easy money’ from China Investment Corp., even though the world’s fourth largest sovereign wealth fund last week reported a rise in net profit and a healthy increase in its top-line assets that grew to $652 billion in 2013 from $575 billion.
The giant sovereign wealth fund, which owns private equity firm Citic Capital, said its net profit increased to $86.9 million in 2013 from $77.7 billion a year before; it also reported a 9.3% return on its overseas investments in 2013, a decline from 10.6% in 2012. But China-based consulting firm Z-Ben Advisors cautions that the general “good news…may not be felt by asset managers attempting to win their mandates.”……………………………………….Full Article: Source

CIC Pays ‘Astonishingly Low’ Money Management Fees – Z-Ben

Posted on 14 August 2014 by VRS  |  Email |Print

Money managers hoping to win a coveted contract to manage a slice of China’s sovereign wealth have their work cut out for them. China Investment Corp., one of the largest sovereign wealth funds in the world with about $600 billion under management, on Friday reported a 9.3% return on its overseas investments in 2013, compared with a 10.6% return in 2012.
Consulting firm Z-Ben Advisors has drilled into the report and found some depressing news for money managers: the fees CIC is paying for its money to be managed are “astonishingly low.”……………………………………….Full Article: Source

Minorities group backs Khazanah plan for MAS

Posted on 14 August 2014 by VRS  |  Email |Print

The Minority Shareholder Watchdog Group (MSWG) has supported Malaysia Airlines’ (MAS) proposed privatisation by Khazanah Nasional Bhd, describing it as a reasonable option for minority shareholders to take their investment out of the ailing national carrier.
MSWG also hopes that those responsible for MAS’ poor financial performance will be made accountable, said its chief executive officer Rita Benoy Bushon. She said Khazanah’s offer price of 27 sen a share to acquire all MAS’ shares is a 12.5 per cent premium over its pre-suspension price of 24 sen last Thursday………………………………………..Full Article: Source

Timor-Leste SWF hits 40% equities allocation

Posted on 13 August 2014 by VRS  |  Email |Print

The Central Bank of Timor-Leste has released the Quarterly Report of the Petroleum Fund of Timor-Leste for the second quarter of 2014, during which period the fund hit its new target of investing 40% of its assets-under-management in equities. The portfolio return in the quarter was 2.66% compared with the benchmark return of 2.73% – meaning that since the fund’s inception nine years ago, overall returns are exactly in line with the benchmark.
Over the quarter, the fund’s capital grew from $15.7 billion to $16.6 billion. Gross cash inflows to the fund from royalties and taxes were $541.3 million, while cash outflows were $3.87 million for direct external and internal management costs………………………………………..Full Article: Source

With Sovereign Wealth Fund, It’s Necessary to Take Long View

Posted on 12 August 2014 by VRS  |  Email |Print

China Investment Corp. (CIC), the country’s sovereign wealth fund, reported a 9.33 percent return on its overseas investments in 2013. The figure, reported on August 8, is slightly lower than the previous year’s 10.6 percent.
The cumulative annualized rate of return for the overseas portfolio since it was established in 2007 is 5.7 percent, compared with 5.02 percent in 2012. Ding Xuedong, CIC’s chairman and CEO, said the figure would be higher than 6 percent if investments in the first half of this year were counted……………………………………Full Article: Source

MSCI supported assets of Azerbaijan’s Oil Fund

Posted on 12 August 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) received support of its assets’ cost from MSCI Inc., international analytical company. According to Russian sources, decision of MSCI Inc. to keep shares of Sberbank and VTB Bank during calculation of MSCI Russia stock index resulted in an increase of prices for shares of both banks.
Thus, today in trading at Moscow’s exchange Sberbank’s shares rose in price by 3.49% (up to 73.17 rubles for a share) and VTB shares – by 4.29% (up to 3.9 kopeck for a share)……………………………………Full Article: Source

Alaska Permanent Fund tops $50 billion mark, returns 15.5% for year

Posted on 12 August 2014 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, ended the fiscal year above $50 billion for the first time with a preliminary return of 15.5% for fiscal 2014, vs. 15.7% for its composite benchmark. The sovereign wealth fund reported $51.2 billion in total assets for the fiscal year that ended June 30, up $6.3 billion over the closing value for the prior fiscal year.
Returns for the $21 billion equity portfolios drove performance. The U.S. equity portfolio had the highest return at 27%, global equities returned 25% and the non-U.S. equity portfolio returned 20.2%……………………………………Full Article: Source

Mega Financial attracts interest of sovereign funds

Posted on 12 August 2014 by VRS  |  Email |Print

Several foreign sovereign funds have voiced an interest in investing in Mega Financial Holding Co, attracted by the state-run conglomerate’s stable profitability, company chairman Mckinney Tsai said.
Sovereign funds from Canada, Singapore, Norway, Malaysia and Abu Dhabi have all expressed an interest, with some having paid three visits, Tsai said. That would give the bank-focused group the necessary capital to acquire peers at home and abroad, in line with its aim to grow into a regional player, Tsai said……………………………………Full Article: Source

China Investment Corp. Gains 9.3% on Overseas Investments

Posted on 11 August 2014 by VRS  |  Email |Print

China Investment Corp., the country’s sovereign wealth fund, reported a 9.3% return on its overseas investments in 2013, a decline from 10.6% in 2012. CIC said its net profit rose 11.8% to $86.9 billion in 2013, up from $77.7 billion a year earlier. It has recorded a 5.7% annualized return on its overseas investments since it was founded in 2007, the fund said in its annual financial report, which was released Friday.
Chairman and CEO Ding Xuedong said in the report that the firm had realized good returns by exiting more than 10 investments last year as global markets were on the rise. He didn’t give details on those investments…………………………………Full Article: Source

China Sovereign Fund Says Returns Decline Amid Volatility

Posted on 11 August 2014 by VRS  |  Email |Print

China Investment Corp., the nation’s $653 billion sovereign wealth fund, said return on its overseas investments fell last year as volatility in global financial markets eroded the value of its portfolio and prompted the company to cut bond holdings.
The return dropped to 9.33 percent from 10.6 percent in 2012, according to the Beijing-based company’s 2013 annual report released yesterday. Net income at the fund, which also holds government stakes in China’s biggest banks, rose 12 percent to $86.9 billion, the report showed…………………………………Full Article: Source

Malaysia Airlines to be delisted after €320m offer

Posted on 11 August 2014 by VRS  |  Email |Print

Malaysia Airlines will be delisted after sovereign wealth fund Khazanah Nasional offered to buy out minority shareholders in a restructuring plan for the national carrier that suffered two disasters this year.
Khazanah will pay 27 sen a share for a total of 1.38bn ringgit (€320m) to buy the remaining 30.6pc it doesn’t own. The airline will need “substantial funding requirements” for the next few years to sustain operations, the company said. Malaysian Prime Minister Najib Razak said the revamp will involve “painful steps and sacrifices”. The carrier is struggling to stem losses and repair its image after the downing of Flight 17 in Ukraine last month compounded woes from the disappearance of a jet in March…………………………………Full Article: Source

Norway’s wealth fund voted against Fiat-Chrysler merger

Posted on 08 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund was the single largest shareholder to vote against Italian carmaker Fiat’s merger with its U.S. unit Chrysler, according to minutes of the Aug. 1 shareholder meeting.
Norges Bank, which registered for the shareholder meeting with a 2.15 percent stake, declined to say on Thursday why it voted against the tie-up or whether it would exercise its right as a dissenting investor to sell its shares in Fiat………………………………………..Full Article: Source

Australian sovereign wealth fund reports assets of AUD101bn+

Posted on 07 August 2014 by VRS  |  Email |Print

The Future Fund reports that in the 2013/2014 financial year investment returns added AUD12bn to its value. Original contributions to the fund from government valued at AUD60.5bn have generated investment returns of over $40bn and overall, the value of the sovereign wealth fund has increased to AUD101bn.
Over seven, five, three and one year periods to the end of June this year the fund has either met or exceeded its return objective: Since its creation in May 2006 the Fund has achieved a return of 7.1% per annum, just shy of its target of 7.2%. “These returns show the value of long-term and patient investing. In the Fund’s early days, in a challenging investment climate, the returns were below the target range, but disciplined adherence to clear objectives have delivered good results over the medium-term. The Fund is now focused on performance through to 2020 and beyond,” notes Peter Costello, chairman of the sovereign wealth fund………………………………………..Full Article: Source

Sovereign Wealth Fund Direct Transactions Highest YTD Since 2008

Posted on 07 August 2014 by VRS  |  Email |Print

Direct deals and transactions by global sovereign wealth funds touched US$ 50.02 billion in the first half of 2014. This is a 23.1% increase in transactions comparing it to the first half of 2013 (US$ 40.64 billion). The highest first half on record of direct sovereign wealth fund transactions was the first half of 2008 (US$ 51.05 billion), a significant portion of that amount was attributable to the bank bailouts.
Singapore is the lead acquiring nation for sovereign wealth fund direct transactions with US$ 21.21 billion for the first half of 2014. This is followed by the United Arab Emirates and China. In 2014, Temasek Holdings opened a New York office………………………………………..Full Article: Source

Saudi funds abroad cross SR385 billion

Posted on 06 August 2014 by VRS  |  Email |Print

Financial assets belonging to independent Saudi organizations, including the Saudi Arabian Monetary Agency (SAMA) and Public Investment Fund (PIF), in foreign countries amounted to SR385.3 billion, comprising 63 percent of their total assets.
“These organizations have invested SR335.1 billion, or 55 percent of their total assets in foreign stock markets and bonds,” said an analytical report, adding that they deposited SR50.2 billion, or eight percent of their funds, in foreign banks………………………………………..Full Article: Source

Value of Australia’s Future Fund Exceeds $100 Billion for the First Time

Posted on 05 August 2014 by VRS  |  Email |Print

Australia’s Future Fund has reached $101 billion on Monday, exceeding the $100 billion mark at the end of June after its investment returns for the 2013-14 financial year yielded $12 billion. Former Treasurer Peter Costello established the fund in 2006. Since then and despite the global financial crisis in 2008, the fund enjoyed an average nominal annual growth rate of 7.1 per cent, just slightly lower than its 7.2 per cent target.
Costello, the chairman of the fund, said that during the fund’s early days when the investment climate was challenging, resulting in returns yielding lower than the company’s target range. However, he pointed out that disciplined adherence to clear objectives resulted in good growth rates over the long term………………………………………..Full Article: Source

Future Fund facing super shortfall

Posted on 05 August 2014 by VRS  |  Email |Print

A lack of budget surplus contributions to the Future Fund could see it come up short in meeting federal public service superannuation liabilities, The Australian reports. Yesterday the Future Fund announced returns in fiscal 2014 that far exceeded the target rate, but the government’s super liabilities for 2020 – when the Fund is due to start paying out – are on track for $200 billion, well above the current $101bn size of the Fund.
Future Fund chairman Peter Costello said the fund had no control over future liabilities, but more funds from the government would be welcomed. “We have had six years of no contributions and if you are asking me whether it would have been nice to have had some contributions, yes, of course it would be nice to have some contributions,’’ Mr Costello told The ­Australian………………………………………..Full Article: Source

Mid Europa raises €810m for fourth fund

Posted on 05 August 2014 by VRS  |  Email |Print

Mid Europa Partners, the largest private equity group in central and eastern Europe, has raised €810m for its fourth fund – half the amount it raised before the financial crisis – as investors take a cautious view on the region amid mounting tensions between Russia and the west.
The arrangement, dictated by a handful of Asian and Middle Eastern sovereign wealth funds that have taken large positions in the new fund, means Mid Europa will have up to €1.5bn in total to spend on acquisitions across countries including Poland, the Czech Republic and Slovakia. It does not invest in Ukraine………………………………………..Full Article: Source

AEDC Says Permanent Fund Dividend May Rise This Year

Posted on 05 August 2014 by VRS  |  Email |Print

Forecasting suggests that this year’s Permanent Fund Dividend is expected to rise significantly. KDLG’s Chase Cavanaugh has more on the market analysis. The Anchorage Economic Development Corporation predicts that the declining dividends in the Alaska Permanent Fund are expected to reverse this year.
Established in 1976, the Permanent Fund sets aside oil revenues in a dedicated place for future generations. Part of this program is an annual dividend paid to Alaska residents, last year’s totaling $900 per individual. Bill Popp is AEDC’s CEO, and he says this year’s dividend will increase significantly………………………………………..Full Article: Source

GIC reports steady returns

Posted on 04 August 2014 by VRS  |  Email |Print

Singapore investment fund GIC posted brighter returns on the nation’s nest egg as the world economy kept growing and financial markets stayed robust. ver five years to March 31 this year, GIC’s assets across the globe returned 12.4 per cent in US dollar terms - well above the 2.6 per cent for the five years to March 31 last year.
The big jump came as worldwide markets kept rebounding strongly from the lows of the 2008-2009 global financial crisis. “Its five-year returns improved significantly because the 2008 bear market has been flushed out,” said APS Asset Management founder and chief investment officer Wong Kok Hoi, who used to work at GIC………………………………………..Full Article: Source

Abu Dhabi-backed Carlyle see Q2 earnings double

Posted on 04 August 2014 by VRS  |  Email |Print

Carlyle Group, the US private equity firm in which Abu Dhabi’s Mubadala Development Company owns a 7.5 percent stake, announced its second-quarter earnings doubled from a year earlier as one of its European buyout funds started paying performance fees, highlighting the growth potential of its private equity business in Europe.
While two US buyout funds accounted for more than half of all of Carlyle’s performance fees in the quarter, the Washington, DC-based private equity firm said its third European buyout fund was now also a contributor………………………………………..Full Article: Source

Insecurity: Reps want Jonathan to draw from Excess Crude Account

Posted on 01 August 2014 by VRS  |  Email |Print

Lawmaker in the House of Representatives, Rep Francis Haske Hannaniya (PDP, Adamawa) advised President Goodluck Jonathan not to wait for the National Assembly’s approval on his request to take loan of $1 billion. Instead, he said the president should withdraw from the excess crude account to fight Boko Haram.
The lawmaker who represents Gombi/Hong Federal Constituency of Adamawa state made the call yesterday in Abuja while reacting to the renewed killings by Boko Haram in parts of Adamawa, Yobe, Borno and Kano state………………………………………..Full Article: Source

Size of 2014 PFD checks may double from 2013’s $900

Posted on 31 July 2014 by VRS  |  Email |Print

The Alaska Permanent Fund Corp. predicts the size of the annual dividend check that qualifying Alaskans will receive this year will be considerably more than the $900 checks distributed in 2013, and may approach the all-time record. “I think the punchline is that the dividend is going to be right about doubling from last year,” said Mike Burns, the executive director of APFC.
That could mean a 2014 check of $1,500-$2,000, depending on how the final numbers work out, according to Burns. The largest Permanent Fund payout in history was the $2,069 paid in 2008; the least was the $331 paid in 1984, the third year of Permanent Fund distributions………………………………………..Full Article: Source

Flipkart Gets $1 Billion From Investors Led by Tiger

Posted on 30 July 2014 by VRS  |  Email |Print

Flipkart.com, India’s biggest online retailer, raised $1 billion as investors, including Tiger Global Management LLC and South Africa’s Naspers Ltd. (NPN), increased their stakes.
Singapore sovereign wealth fund GIC Pte and Russian billionaire Yuri Milner’s DST Global, also made investments, Flipkart said in a statement today. The e-commerce company said it has 22 million registered users and handles 5 million shipments a month………………………………………..Full Article: Source

With a $1 billion funding round wrapped up, what next for Flipkart?

Posted on 30 July 2014 by VRS  |  Email |Print

Shopping website Flipkart said it has received $1 billion in funding from Singapore’s sovereign wealth fund, GIC, and existing investors Accel Partners, DST Global, ICONIQ Capital, Morgan Stanley Investment Management and Sofina. This is the biggest round of funding into any Indian startup. The investment was co-led by existing investors Tiger Global Management and Naspers.
This is one of the largest investments raised in a single round globally. Taxi rental startup Uber raised $1.2 billion earlier this year. Facebook had raised $1 billion in 2011………………………………………..Full Article: Source

Aberdeen’s assets drop as client withdraws £4bn

Posted on 29 July 2014 by VRS  |  Email |Print

Aberdeen Asset Management’s assets dropped in the second quarter of 2014, following a substantial withdrawal by a major client. In the three months to the end of June, the Asian Sovereign Wealth Fund withdrew £4bn from Asia Pacific and global equities mandates.
The withdrawal took total net outflows from Aberdeen’s assets in the period to £5.5bn, with money flowing out of equity, fixed income and Aberdeen Solutions products………………………………………..Full Article: Source

Temasek Fully Exits From New China Life Insurance

Posted on 29 July 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund Temasek Holdings exited its entire stake in New China Life Insurance (NCI) last week for a total of proceeds of US$276 million, according to media reports.
It sold 78 million shares at HK$27.45 per share, representing a 5.5% discount to the Hong Kong-listed firm’s closing price last Friday at HK$29.05. Goldman Sachs and UBS AG managed the selldown………………………………………..Full Article: Source

SOFAZ allocates over $300 million for construction of new drilling rig in Azerbaijan

Posted on 28 July 2014 by VRS  |  Email |Print

As of June 30, 2014, over 236.44 million AZN was allocated for the construction of new generation floating drilling rig from the State Oil Fund of Azerbaijan (SOFAZ), according to the official website of the fund.
The report notes that the cost of the construction project of new generation floating drilling rig in Azerbaijan amounts to $1.116 billion. SOFAZ owns 90 percent share in “Azerbaijan Rigs” LLC, created for the construction of a new platform. The remaining 10 percent of shares in the company is owned by the State Oil Company of Azerbaijan (SOCAR)………………………………………..Full Article: Source

Temasek exits New China Life with $276 mln share selldown

Posted on 28 July 2014 by VRS  |  Email |Print

Singapore state investor Temasek Holdings said on Friday it had sold all of its remaining shares in New China Life Insurance (NCI), on the back of a 27 percent rally in the stock over the past year.
Temasek sold 78 million shares in NCI, China’s third-largest life insurer at HK$27.45 each raising $2.14 billion ($276 million), after offering the stock in a HK$27.30 to HK$27.85 per share indicative range, a source familiar with the deal told Reuters………………………………………..Full Article: Source

Dubai builder Arabtec posts major cash deficit for second quarter

Posted on 28 July 2014 by VRS  |  Email |Print

Arabtec is likely to need a capital injection or new debt financing after its second-quarter earnings figures showed a significant worsening of its cash position, analysts said.
Aabar, which owns 18.94 per cent of Arabtec, is the company’s second-largest shareholder. Aabar is owned by International Petroleum Investment Corporation, an Abu Dhabi sovereign wealth fund that manages $65.3bn in assets, according to the Sovereign Wealth Fund Institute………………………………………..Full Article: Source

Temasek divests New China Life stake in block

Posted on 25 July 2014 by VRS  |  Email |Print

Singapore’s Temasek Holdings sold its stake in New China Life, China’s third largest insurer, on Thursday after launching a 78 million share block trade after the market close.
Joint leads Goldman Sachs and UBS marketed the deal at HK$27.30 to HK$27.85 per share before pricing towards the bottom of the range at HK$27.45. This represented a 5.5% discount to the stock’s HK$29.05 close. About 100 accounts placed orders in the $276 million deal but allocations were skewed towards a couple of large anchor accounts, which the leads had built the deal around………………………………………..Full Article: Source

Norway Fund’s Top Russia Holding Include VTB, GAZ Auto

Posted on 25 July 2014 by VRS  |  Email |Print

Norway’s $890 billion sovereign wealth fund, the world’s biggest, has said it’s reassessing its investments in Russia as the European Union considers expanding sanctions against the country.
The fund will make “the necessary adjustments” if its holdings were to be affected by sanctions against Russia that Norway backs, Runar Malkenes, a Finance Ministry spokesman, said this week. Below is a list of the fund’s 20 biggest stakes in Russian companies, ranked by percent of ownership, as of Dec. 31, according to data from the wealth fund’s website………………………………………..Full Article: Source

Norway’s State-Run Investment Fund May Sell $8B Of Russian Assets

Posted on 25 July 2014 by VRS  |  Email |Print

Norway, whose government-managed investment fund is worth more than $900 billion, is considering selling its Russian-based investments, totaling as much as $8 billion, as the European Union mulls new sanctions against Russia following the downing of Malaysia Airlines Flight MH17 last week.
Bloomberg News reported on Thursday that Norway, which is not an EU member country said it’s prepared to make the changes and quoted Runar Malkenes, a Finance Ministry spokesman, saying “If the oil fund’s investments become affected by economic sanctions against Russia that Norway supports,” the fund “will need to make the necessary adjustments to accommodate the new situation.”……………………………………….Full Article: Source

Philippines should divert reserves to form a SWF, says BSP’s Medalla

Posted on 24 July 2014 by VRS  |  Email |Print

The increasing level of political and economic stability in the Philippines means the country’s central bank should move a portion of its reserves into a sovereign wealth fund (SWF) based on a pension-fund model, according to Felipe Medalla, member of the monetary board of the Central Bank of the Philippines (BSP).
The BSP has reserves of $80 billion, equivalent to about one third of the country’s GDP. These assets are managed on a conservative basis, primarily invested in highly rated sovereign paper. Medalla said that in addition to looking to invest in higher yielding assets, the central bank should consider moving a portion of its assets into a SWF……………………………………….Full Article: Source

Assets of Azerbaijani State Oil Fund exceed $37 billion

Posted on 23 July 2014 by VRS  |  Email |Print

The revenues of the State Oil Fund of Azerbaijan amounted to 6,493.6 million AZN and expenses - 5,163.1 million AZN in the first half of 2014, the fund reported.
The revenues from the implementation of oil and gas contracts stood at 6,374.8 million AZN, including the sale of profitable oil and gas - at the level of 6,335.4 million AZN during the reported period. The fund`s income from transit operations amounted to 4.4 million AZN. The fund implemented bonus payments in the amount of 13.3 million AZN in January-June. The contributions from payments acreage payment amounted to 1.7 million AZN in the first half of the year………………………………………..Full Article: Source

Kazkommertsbank Plans $205 Million Buyback From State

Posted on 23 July 2014 by VRS  |  Email |Print

Kazkommertsbank, Kazakhstan’s largest lender, plans to spend 37.6 billion tenge ($205 million) on buying back part of a stake acquired by sovereign wealth fund Samruk-Kazyna at the height of the financial crisis.
Kazkommertsbank offered to buy a maximum of 79.2 million of ordinary shares from minority stakeholders for 475.3667 tenge apiece, the Almaty-based lender said by e-mail today. Samruk-Kazyna invested 36 billion tenge in 2009 for 165.7 million shares, or a 21 percent stake………………………………………..Full Article: Source

IL&FS Transportation Networks to raise up to $166M via QIP, convertible bonds

Posted on 23 July 2014 by VRS  |  Email |Print

IL&FS Transportation Networks Ltd, a subsidiary of IL&FS that develops and manages toll roads, has received the board approval to raise up to Rs 1,000 crore ($165.9 million) through further issue of equity shares of the company, the company said in a stock market disclosure. It is backed by StanChart IL&FS Asia Infrastructure Growth Fund, Bessemer Venture Partners and Norwegian sovereign wealth fund Government Pension Fund Global.
Its private equity investors include Standard Chartered IL&FS Asia Infrastructure Growth Fund and Bessemer Venture Partners. The firm also counts Norwegian sovereign wealth fund Government Pension Fund Global as a shareholder………………………………………..Full Article: Source

Malaysian Airlines faces bankruptcy or going private

Posted on 23 July 2014 by VRS  |  Email |Print

Malaysian Airline System Bhd., reeling from its second disaster in four months, is likely near the end of its days as a publicly traded company. The company plans to present a revival plan to its state-run parent Khazanah Nasional Bhd. this week, people familiar with the matter said Monday, asking not to be identified because the talks are private. The options range from Khazanah taking Malaysian Air private to bankruptcy, according to one of the people, with both routes involving a delisting.
Even a month before the latest disaster, Khazanah was estimating that the unprofitable airline only had enough funds to last it about a year………………………………………..Full Article: Source

Qatar’s stake in Glencore in focus

Posted on 23 July 2014 by VRS  |  Email |Print

A curious stock exchange filing suggesting that Qatar Holding had trimmed its stake in Glencore drew attention to the FTSE 100 commodities giant. The sovereign wealth fund is the biggest shareholder in Glencore and played a key role in its takeover of Xstrata in 2012 when, as the bid target’s second-largest investor, it initially opposed the blockbuster deal.
On Tuesday, Qatar Holding was in focus once again as traders picked up on a filing that, on first read, caused some confusion about its Glencore stake………………………………………..Full Article: Source

Azerbaijan’s Oil Fund compensates investment losses from Ukrainian crisis

Posted on 22 July 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has overcome the negative effects of the crisis around Ukraine. SOFAZ reports that in the 1st quarter the Fund had investment losses on shares of Russian companies, relating to the events around the Ukraine and in the 2nd quarter the Fund received revenue of AZN 118.8 million from asset management.
As a result, SOFAZ revenues for the first half of 2014 amounted to AZN 6.49 bn and expenditures AZN 5.16 bn, i.e. the budget was implemented with an actual surplus of AZN 1.3 bn………………………………………..Full Article: Source

SOFAZ transfers 4 883.8 mln manats in January-June 2014

Posted on 22 July 2014 by VRS  |  Email |Print

Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-June, 2014 reached 6 493.6 mln. manats, while budget expenditures constituted 5 163.1 mln. manats.
Revenue of 6 374.8 mln. manats was received from the implementation of oil and gas agreements, including 6 355.4 mln. manats from the sale of profit oil and gas, 4.4 mln. manats as transit payments, 13.3 mln. manats as bonus payments and 1.7 mln. manats as acreage fees.The revenues from managing assets of the Fund for January-June 2014 amounted to 118.8 mln. manats………………………………………..Full Article: Source

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