Fri, Oct 24, 2014
A A A
Welcome sandeep.kottawar@wns.com
RSS

Sovereign Wealth Funds Briefing - Category | Financials more

Korea Investment Corp. Learns Hard Lesson

Posted on 23 October 2014 by VRS  |  Email |Print

Korea Investment Corp. , South Korea’s $72 billion sovereign-wealth fund, found out the hard way that cutting out the middleman isn’t always easy. The fund began doing deals on its own, or “direct investing,” in the late 2000s, a shift from its practice of using private-equity firms to handle the deal making.
Direct investing allows sovereign-wealth funds to avoid paying fees to private-equity firms, which typically charge 2% on assets and take 20% of any profit, and an increasing number of funds and other big investors have been doing it. Hongchul Ahn, chairman and chief executive of KIC, said in an email last week that the fund will change its approach to direct investing after “disappointingly lower returns.”……………………………………….Full Article: Source

Rosneft Asks for $49 Billion From State Welfare Fund to Survive Sanctions

Posted on 23 October 2014 by VRS  |  Email |Print

State-owned oil major Rosneft has requested more than 2 trillion rubles ($49 billion) from one of Russia’s oil-revenue-funded, rainy-day reserves to help it weather Western sanctions, Finance Minster Anton Siluanov told news agency RIA Novosti on Wednesday.
The sum amounts to over half the cash stored in Russia’s National Welfare Fund, a sovereign wealth fund that was created as a backstop to Russia’s pension system and held 3.2 trillion rubles ($83.2 billion) as of Oct. 10………………………………………..Full Article: Source

Russia’s energy companies may seek aid from National Welfare Fund — Dvorkovich

Posted on 23 October 2014 by VRS  |  Email |Print

Russian oil and gas companies may seek financial aid from the country’s National Welfare Fund (NWF) amid Western sanctions, Deputy Prime Minister Arkady Dvorkovich said on Wednesday. “The government is ready to consider proposals on projects in the oil and gas sector,” Dvorkovich said at the national oil and gas forum.
The government has received proposals from Russia’s largest independent gas producer Novatek and oil giant Rosneft, Dvorkovich said, adding the “government will consider them seriously.”……………………………………….Full Article: Source

FG, states share $2.7bn from Excess Crude Account

Posted on 23 October 2014 by VRS  |  Email |Print

The country’s revenue fell by N99.55bn in the month of September, thereby causing the three tiers of government on Wednesday to share N2.7bn that should have been transferred to the Excess Crude Account.
The Accountant-General of the Federation, Mr. Jonah Otunla, said the technical meeting of the Federal Accounts Allocation Committee that held earlier had suggested the sharing of the $2.7bn, which ought to have been transferred to the ECA that was established to provide a buffer for the country in the face of fluctuations in international crude oil prices………………………………………..Full Article: Source

SOFAZ budget revenues exceed 10 bln manats

Posted on 22 October 2014 by VRS  |  Email |Print

The budget revenues of Azerbaijan’s state oil fund SOFAZ reached 10.131 billion manats in the third quarter of 2014. This comes as the fund’s budget expenditures constituted 8.041 billion manats during the same period of time.
“Some 9.969 billion manats was gained from the implementation of oil and gas agreements, including 9.947 billion manats from the sale of profit oil and gas, 6.8 million manats from transit payments, and 13.3 million manats from bonus payments. Revenues from payments per acre in the first half of 2014 amounted to 1.7 million manats,” SOFAZ said on October 20………………………………………..Full Article: Source

Only 4.4% of SOFAZ investment portfolio intended for active investment

Posted on 22 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ), known for its conservatism, intended no more than 4.4% of its investment portfolio or about $1.639 bn for active investment instruments.
According to the Fund, by October 1, 0.9% ($440.391 million) of its investment portfolio ($37.265 bn) was intended for project financing and 3.5% ($1.199 bn) was invested in stocks. The rest investments were passive: fixed-income securities (82.2% of portfolio), deposits and market instruments (7.4%), physical gold (3.2%) and real estate (2.8%)………………………………………..Full Article: Source

Can Nigeria Achieve A $6.3bn Excess Crude Account?

Posted on 21 October 2014 by VRS  |  Email |Print

At the recently concluded IMF/World Bank Annual Meetings, the World Bank, arguably prompted by recent global trends such as the drop in oil prices, had advised the Nigerian Federal Government to increase its fiscal buffers by raising the excess crude account from $4.1 billion to $6.3 billion, a 54 percent increase.
Dr Ngozi Okonjo-Iweala, Nigeria’s Minister of Finance, being a key representative of the country at the meeting, had re-assured Nigerians that the feat was achievable saying; “We would look at how we would strengthen the buffer. There is no cause for alarm, we are on top of the game.”……………………………………….Full Article: Source

State Oil Fund of Azerbaijan does not buy physical gold for 2 quarter at a run

Posted on 21 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has not bought physical gold for two quarters (Q2 and Q3 of 2014) at a run. The Fund informs that as of 1 October it had physical gold in the amount of $1.18 bn that was equivalent to 3.2% of its investment portfolio ($37.265 bn.
“By the reported date SOFAZ had at disposal 30.17 tons of gold (970,146 ounces),” the Fund reported. This level of reserves was similar to the indicator by 1 April 2014. Nevertheless, SOFAZ can buy more gold, at least, for $680.1 million, as investment rules allow the Fund to invest in physical gold up to 5% of its portfolio, that as of 1 October 1 was equivalent to $1.86 bn………………………………………..Full Article: Source

Oil Fund’s assets for Jan-Sept exceed $37.305 bn

Posted on 21 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) increased its assets by 3.98% for Jan-Sept 2014. According to SOFAZ, over the past 9 months of the year Oil Fund’s assets grew from $35.877 bn in early 2014 up to $37.305 bn. “During the first 9 months of 2014 Oil Fund’s revenues totaled AZN 10.1 bn and expenditures AZN 8.04 bn,” SOFAZ said in a statement.
As a result, the SOFAZ budget was implemented with surplus of AZN 2.09 bn. “Our revenues consist mainly from oil and gas PSA contracts in the amount of AZN 9.969 bn, including AZN 9.947 bn from profit oil and gas,” the Fund said………………………………………..Full Article: Source

Mainstream media gloss over GIC’s $269 million capital loss

Posted on 21 October 2014 by VRS  |  Email |Print

GIC had actually bought the property in June 2007 when the British pound was very strong against our currency at about 1GBP=$3.06. When converted into local currency, the purchase price would be a whopping $1.469 billion. GIC had therefore made a capital loss of about $269 million, a huge embarrassment to the government.
From June 2007 to October 2014, the British currency lost 33% against the Singapore dollar. GIC would of course have made some rental gains which is nothing to shout about – the property was bought near the top of the stock market cycle and rental yields and property prices are inversely correlated. Any net rental gains would have probably been offset by the capital loss and transaction costs. Our CPF investment yielded close to nothing………………………………………..Full Article: Source

SOFAZ revenues more than $2 bn from “Shah Deniz”

Posted on 20 October 2014 by VRS  |  Email |Print

The reserves are estimated at 1.2 trl of cubic meters of gas. As of October 1, 2014, since 2007 the revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project of gas condensate field “Shah Deniz” in the Azerbaijani sector of the Caspian Sea amounted to $2,006 m.
Oxu.Az reports citing Day.az that the information was provided by the State Oil Fund. According to the fund, from January to October 1, 2014 the State Oil Fund in the framework of the “Shah Deniz” project received $409 m………………………………………..Full Article: Source

Where did RM4 billion for Putrajaya’s SRC International go, asks DAP

Posted on 17 October 2014 by VRS  |  Email |Print

Prime Minister Datuk Seri Najib Razak must explain what has happened to a RM4 billion loan secured by a wholly-owned subsidiary of the Ministry of Finance, which failed to submit its annual accounts on time, a DAP lawmaker said today.
Petaling Jaya Utara MP, Tony Pua said SRC International Sdn Bhd had secured a RM4 billion Islamic loan from the government’s pension fund, Kumpulan Wang Amanah Persaraan (KWAP), and which was guaranteed by the federal government.The loan was disbursed in two tranches in August 2011 and March 2012……………………………………….Full Article: Source

Afghanistan, Kazakhstan ready to join BTK project

Posted on 17 October 2014 by VRS  |  Email |Print

Afghanistan and Kazakhstan are interested in joining the Baku-Tbilisi-Kars (BTK) railway project, Azerbaijan’s Transport Minister Ziya Mammadov told reporters on Oct.16. He made the remarks on the sidelines of the “Baku-Tbilisi-Kars railway line - new opportunities in the development of the Silk Road” international conference in Baku.
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) finances the project in accordance with the Azerbaijani president’s decree ‘On the implementation of the Baku-Tbilisi-Kars project activities’ dated February 21, 2007………………………………………..Full Article: Source

Khazanah’s SCR offer ‘fair’, says MAS

Posted on 16 October 2014 by VRS  |  Email |Print

Malaysia Airlines (MAS) says its minority shareholders should accept Khazanah Nasional Bhd’s proposed selective capital reduction and repayment exercise (SCR) for the national airline as it is “fair”. MAS directors yesterday recommended the plan after the audit committee found parent Khazanah’s offer fair and reasonable, MAS said in a filing to Bursa Malaysia.
Khazanah in August proposed 27 sen per share totalling RM1.38 billion to buy the remaining 30.6 per cent stake it doesn’t own in the airline. The sovereign wealth fund plans to delist MAS by buying out the minority shareholders in the first stage of restructuring………………………………………..Full Article: Source

MAS asks shareholders to take Khazanah’s RM1.38b offer

Posted on 16 October 2014 by VRS  |  Email |Print

Malaysian Airline System Bhd., the carrier reeling from the crash of two planes this year, said small shareholders should accept a buyout offer from the carrier’s majority owner as it called the proposal fair. The airline’s directors recommended the plan after the audit committee found parent Khazanah Nasional Bhd.’s offer fair and reasonable, the Subang, Malaysia-based company said in a statement to the stock exchange today.
In August, the sovereign wealth fund proposed 27 sen per share, totalling RM1.38 billion (US$421 million), to buy the remaining 30.6 per cent stake it doesn’t own in the company. Khazanah is delisting the airline by buying out minority shareholders in the first stage of restructuring aimed at reviving the flag carrier………………………………………..Full Article: Source

Nigeria: World Bank Tasks FG to Raise Excess Crude Account to U.S.$6.3 Billion

Posted on 16 October 2014 by VRS  |  Email |Print

The World Bank has advised the federal government to increase its fiscal buffers by raising the excess crude account (ECA) to $6.3 billion. Finance Minister, Dr. Ngozi Okonjo-Iweala, disclosed this in Washington DC, saying the World Bank tasked the Federal Government on the need to increase its fiscal buffers by building external reserves to about $6.3 billion, up from the present level of $4.1 billion.
Speaking to Nigerian journalists at the end of the 2014 annual meetings, Okonjo-Iweala assured: “we would look at how we would strengthen the buffer. There is no cause for alarm; we are on top of the game. We have to be realistic about our ability to spend.”……………………………………….Full Article: Source

Putrajaya bailing out 1MDB by boosting IPO value, says DAP lawmaker

Posted on 15 October 2014 by VRS  |  Email |Print

Putrajaya is bailing out 1Malaysia Development Bhd (1MDB) through several power plant projects worth billions of ringgit, DAP national publicity secretary Tony Pua said. Pua, the Petaling Jaya Utara MP, questioned the latest power project awarded to 1MDB – a 2,000MW gas-turbine power plant in Malacca given via direct negotiation.
He said although the government had rescued 1MDB in a written reply to his parliamentary question on a power project awarded to 1MDB, circumstances as to how the tenders were awarded suggested otherwise………………………………………..Full Article: Source

Future Fund shows punters the way

Posted on 15 October 2014 by VRS  |  Email |Print

The Future Fund is on track for to exceed its CPI plus 4.5% target this financial year, after earning a solid 2.9% in the September quarter. Australia’s sovereign wealth fund may benefit from any further outperformance of international markets. It holds a hefty 34.1% of its portfolio in global equities, including 24.4% in Developed Markets offshore, versus just 9.0% in Australian equities.
The Future Fund generated a 14.3% return in fiscal 2013-14, in creasing its value to $101.59 billion. “Globally, policy makers are seeking to balance the challenge of moving towards more normal policy settings while maintaining efforts to encourage economic growth,” Future Fund MD David Neal said. “This continues to present both risks and opportunities for investors.”……………………………………….Full Article: Source

SOFAZ earns huge profits from ACG, Shah Deniz fields

Posted on 14 October 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has made $107.254 billion of profit in a 13-year period from 2001 to October 1, 2014 by implementing the project of developing the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea. “The fund received $12.222 billion from January to October 1, 2014 within the framework of ACG project,” SOFAZ told Trend Agency on October 10.
The ACG block of fields has been active since 1997. Production first started at the Chirag part of the block. It was followed successfully by Azeri Project; Central Azeri in February 2005, West Azeri in December 2005, and East Azeri in October 2006………………………………………..Full Article: Source

FG to boost NSIA capital to $5bn through permanent funding sources

Posted on 14 October 2014 by VRS  |  Email |Print

The Federal Government is currently working out a permanent source of raising the Nigerian Sovereign Investment Authority (NSIA) capital to possibly $5 billion, Ngozi Okonjo-Iweala, coordinating minister for the economy and minister of finance, said at the weekend. At the moment, NSIA which manages the Nigerian Sovereign Wealth Fund (SWF) has some $1.55 billion capital all funded through the excess crude account, including some $550 million recently injected by the government as third party assets for the institution to manage.
In her opening remark at a private meeting on the SWF, at the sidelines of the ongoing IMF/World Bank annual meetings in Washington DC, Okonjo-Iweala said the intention is to work the capital towards $5 billion, in the first instance, and then upwards, till it grows as appropriate………………………………………..Full Article: Source

Vietnam Investment Arm Calls for Fewer State Stake Purchases

Posted on 14 October 2014 by VRS  |  Email |Print

A Vietnamese government investment arm that’s been newly charged with buying stakes in state companies with failed public offerings is calling for scaled- down purchases, countering an aggressive government plan. State Capital Investment Corp., which holds state stakes in listed companies, says it is asking the government to “narrow down and prioritize” the number of firms it has to invest in among the 340 businesses that are required to sell shares by end-2015, according to Deputy General Director Le Song Lai.
“We need from the government specific criteria for the stake purchases,” Lai said in a phone interview Oct. 10 in Hanoi. “The 340 companies is too many. It will be very hard for us to do the job with such vagueness.”……………………………………….Full Article: Source

Scentre, GIC in wrangle over fees

Posted on 13 October 2014 by VRS  |  Email |Print

While the Government Investment Corporation of Singapore is shaping up as the most likely buyer of the Westfield shopping centres in New Zealand, the owner of the properties, Westfield’s recently relaunched Australasian shopping centre landlord Scentre Group, is believed to be facing challenges convincing the sovereign wealth fund to pay up when it comes to management fees.
In a situation somewhat echoing the recent restructure of Westfield’s $70 billion global empire, the fees Scentre wants to charge GIC to manage the centres on its behalf appear to be the sticking point. Scentre’s asking price for the assets is believed to be $3bn, in a deal where Westfield would retain the right to manage the centres for a fee charged back to GIC. It is also still unclear whether the shopping centre giant would sell all or only some of the centres………………………………………..Full Article: Source

Sovereign fund chaired by PM Najib, yet 1MDB cannot furnish its accounts in time!

Posted on 10 October 2014 by VRS  |  Email |Print

After 1Malaysia Development Berhad (1MDB)’s lengthy delay in submitting its financial statements, its subsidiaries are now in the spotlight for still failing to submit their own financial statements since 2012.
Petaling Jaya Utara MP Tony Pua said the two subsidiaries, 1MDB Real Estate Sdn Bhd and 1MDB (Energy) Langat Sdn Bhd, failed to submit their financial statements since Dec 28, 2012 and Sept 21, 2012 respectively. Pua told a press conference at the Parliament lobby today that the accounts are important as it will reveal controversial dealings by the two key subsidiaries of 1MDB………………………………………..Full Article: Source

Samruk Kazyna Corporate Transformation is Set to Generate an Additional $11bn in Revenues to Kazakhstan in the Next Six Years

Posted on 10 October 2014 by VRS  |  Email |Print

Samruk Kazyna, Kazakhstan’s sovereign wealth fund managing major strategic state assets with the combined value of close to $100 bn, is overhauling its business strategy, including approaches to investments and to asset management.
New management mechanisms will soon be introduced in all of the Fund’s companies. As early as 2014, business processes reengineering will start in three pilot organizations - diversified transport holding Kazakhstan Temir Zholy, oil and gas company KazMunaiGaz and postal service operator KazPochta………………………………………..Full Article: Source

Samruk Kazyna total assets should reach $200bln: Nazarbayev

Posted on 09 October 2014 by VRS  |  Email |Print

Speaking about transformation of Samruk Kazyna Kazakhstan’s wealth fund, President of Kazakhstan Nursultan Nazarbayev said that it was supposed to lead to doubling of the Fund’s assets, Tengrinews reports.
“The Fund faces tasks of nation-wide scale. As part of the transformation, in the first place efforts should be focused on creating new value of the Fund’s companies, so that within 5 years its total assets double, meaning they should reach $200 billion, and not in 15, 20 or 50 years from now, as my friend Richard Evans [member of the Board of Directors of Samruk Kazyna] said,” Nazarbayev declared at Samruk Kazyna Transformation Forum earlier this week………………………………………..Full Article: Source

Norway to Spend More Oil Wealth, Cut Taxes

Posted on 09 October 2014 by VRS  |  Email |Print

Norway’s right-wing minority government on Wednesday proposed cutting taxes and spending more “oil cash” from the country’s sovereign-wealth fund to counter a slowdown in economic growth.
The government said it would reduce taxes by 8.3 billion Norwegian kroner ($1.28 billion), including a reduction in the wealth tax to 0.75% from 1%. The tax would now only affect those with assets exceeding 1.2 million kroner, from 1 million kroner previously………………………………………..Full Article: Source

Norway to boost oil revenue spending in 2015 to fund tax cuts

Posted on 09 October 2014 by VRS  |  Email |Print

Norway cut its growth forecast on Wednesday, citing lower oil prices and investments, and said it may lift a cap on how much of the country’s $850 billion sovereign wealth fund it can spend each year. In its first budget since taking power last year, the centre-right government of Prime Minister Erna Solberg said it will spend 3 percent of the fund’s value in 2015, up from 2.8 percent in 2014, using the money to pay for tax cuts.
That is still below the 4 percent cap on spending from the fund, into which revenues from oil, Norway’s biggest industry, are routed. But Finance Minister Siv Jensen said she was appointing a commission to examine whether the rule, for long a sacred cow of fiscal policy, needs to be changed………………………………………..Full Article: Source

1MDB’s Project 3B to raise RM8 billion with Islamic bonds

Posted on 09 October 2014 by VRS  |  Email |Print

Malaysia sovereign fund 1Malaysia Development Bhd (1MDB) will raise RM8.4 billion (US$2.56 billion) with Islamic bonds to build a power plant. 1MDB, which is chaired by Prime Minister Najib Razak, is partners with Mitsui & Co Ltd on the 2,000 megawatt coal-fired plant, known as Project 3B.
The consortium will rely on Islamic bonds to cover most of the RM11 billion needed for the project, after plans to raise RM8.4 billion via a debt programme led by Japan Bank for International Cooperation fell through, IFR said. AmInvestment Bank is the sole lead manager on the sukuk, which has been set to close by November, it added……………………………………….Full Article: Source

NZ Super Fund returns ‘exceptional’

Posted on 09 October 2014 by VRS  |  Email |Print

The New Zealand Superannuation Fund grew by almost 20 per cent to the value of $25.8 billion at the end of June thanks to strong investment returns. Chairman Gavin Walker said the performance of the fund over the past five years, when its returns have averaged 17 per cent, should be regarded as “exceptional” and were unlikely to continue.
Chief executive Adrian Orr said the prices of most investments had now returned to their long-term fair values and the fund could expect more normal returns in future. The fund slightly underperformed its reference portfolio, which is a benchmark of passive, low-cost listed investments in which the fund might expect to invest………………………………………..Full Article: Source

Oil Wealth Supports Kuwait But Challenges Ahead, Says Moody’s

Posted on 09 October 2014 by VRS  |  Email |Print

A contentious relationship between Kuwait’s government and parliament has hindered development and diversification, while high dependence on volatile oil exports is causing the Arab Gulf state’s economic performance to fluctuate, according to a new Moody’s Investors Service report.
Kuwait’s financial assets–managed mainly by the Kuwait Investment Authority–are estimated to far exceed the country’s GDP, while government debt is very low and declining as a share of GDP, Moody’s noted………………………………………..Full Article: Source

Qatar’s net external asset position to remain strong

Posted on 09 October 2014 by VRS  |  Email |Print

Qatar’s net external assets will be sufficiently higher than the current account receipts in 2014 with government expenditure set to weaken in the next four years to maintain a relatively “strong” fiscal surplus, according to global credit rating agency Standard and Poor’s (S&P).
“We expect government spending to slow to an average of 6% for 2014-2017 to enable the government to maintain a relatively strong fiscal surplus averaging about 5% of GDP over the period. We no longer include an estimate of government investment income from the Qatar Investment Authority in the government balance,” the rating agency said………………………………………..Full Article: Source

Building Nigeria’s mining industry: more than money

Posted on 09 October 2014 by VRS  |  Email |Print

Mining is important for the security and prosperity of Nigeria and towards developing the sector in Nigeria, the recently concluded National Conference, 2014 recommended that the Solid Minerals Development Fund (SMDF) be increased from the present 1.68% to 5%.
Sovereign Investment Authority (Establishment, Etc.) Act, 2011 (NSIA Act), governing Nigeria’s Sovereign Wealth Fund (NSWF); and it should have a maximum timeframe (5- 10 years) within which to accomplish its objectives. It makes sense to consider amending the NSIA Act to make the SMDF part of the NSWF………………………………………..Full Article: Source

Permanent Fund debated as source of state cash for investment in gas export project

Posted on 08 October 2014 by VRS  |  Email |Print

Alaska may have an opportunity for a potentially risky but very profitable investment when it comes to decision time on a liquefied natural gas export project. But budget deficits are eating into Alaska’s readily available savings, and there may not be much other than the Alaska Permanent Fund left when it comes time to make those multibillion-dollar investments.
So should the Permanent Fund consider investing some of its $50 billion portfolio in a pipeline project?……………………………………….Full Article: Source

Norway to Tap Record Amount of Oil Money for Budget, DNB Says

Posted on 07 October 2014 by VRS  |  Email |Print

Norway, Scandinavia’s richest nation, will use a record 169 billion kroner ($26 billion) of its sovereign wealth fund to plug budget gaps as an oil boom fades, the country’s biggest bank said. “We expect that 2015 will be a rather poor year by Norwegian standards — not a crisis, but lower growth than usual,” Kjersti Haugland, an analyst at DNB ASA, said in an interview. “It wouldn’t be seen as inappropriate to have an expansionary budget.”
The minority government will use 3 percent of the wealth fund, or about 6.6 percent of gross domestic product, Haugland said. In its May revised budget, it proposed to this year use 140.9 billion kroner, or 2.8 percent of the fund, equal to 5.8 percent of so-called trend GDP………………………………………..Full Article: Source

Norway Would Probably Pay to Keep Stake After Yara-CF Tie

Posted on 06 October 2014 by VRS  |  Email |Print

Norway would probably spend billions of dollars to maintain its stake in Yara International ASA (YAR) if a merger being discussed occurs with CF Industries Holdings Inc., parties representing a majority of Norway’s parliament said. “That’s totally unproblematic,” Oeyvind Korsberg, the Progress Party spokesman for trade, said. “The state is overflowing with money, we’re injecting money in businesses abroad through our sovereign wealth fund. So access to capital is the least of our problems.”
The Norwegian state owns about a third of the shares listed on the Oslo stock exchange, and has also built an $850 billion sovereign wealth fund, the world’s biggest, from taxes and interests in oil and gas production………………………………………..Full Article: Source

PFD Corporation makes 2014 gains

Posted on 06 October 2014 by VRS  |  Email |Print

The Alaska Permanent Fund Corporation returned 15.5 percent during fiscal year 2014, according to a review last week at its annual meeting in Juneau. The fund’s investments earned $6.8 billion, the highest amount in its 37-year history, and ended the year with a value of $51.2 billion.
The Board of Trustees also re-elected Bill Moran as chairman and Carl Brady as vice-chairman………………………………………..Full Article: Source

Qatar loses more than £1.5bn on Sainsbury’s

Posted on 06 October 2014 by VRS  |  Email |Print

Qatar is sitting on estimated losses of more than £1.5bn from its investment in J Sainsbury after a downbeat trading update from the supermarket retailer sparked a slide in its shares. Calculations by The Telegraph show that the slump in the company’s share price means Qatar Holding, the sovereign wealth fund, is sitting on paper losses of more than £1.5bn. Qatar Holding first bought into Sainsbury’s in 2007 and owns 26pc of the retailer.
Sainsbury’s share price has never regained the highs it enjoyed in 2007 before the credit crisis began. Qatar’s shareholding has been the subject of much speculation in the City about whether the sovereign wealth fund will dump the stake or launch a full takeover bid………………………………………..Full Article: Source

Declining govt revenue digs hole in Excess Crude Account

Posted on 06 October 2014 by VRS  |  Email |Print

Although Nigeria’s Ex­cess Crude Account was created in 2004 to act as a buffer against anticipated shortfalls in Fed­eral Government revenue from oil and other income sources, recent trend in its growth trajectory appears to be unsettling stakeholders in the economy.
For one, those who are at home with the dynamics of the nation’s economic man­agement are rather agitated that the persistent drawdown by government to augment its stock of distributable monthly revenue clearly shows that it may be difficult for the objectives of the ECA to be realized in the long run………………………………………..Full Article: Source

Oil wealth dividends distributed to most Alaskans

Posted on 03 October 2014 by VRS  |  Email |Print

Most Alaskans will receive $1,884 checks Thursday as this year’s share of the state’s oil wealth that’s distributed annually just for living here. The payout from the Alaska Permanent Fund this year is more than double the amount of the $900 dividends distributed in 2013, but short of the record payout of $2,069 in 2008.
The amount of each person’s check is based on a five-year average of the fund’s investment earnings, which have included the recession years. Alaska wasn’t hit as hard by the recession as the Lower 48, but the Permanent Fund Corp. has a diversified portfolio that was clobbered when markets plunged worldwide………………………………………..Full Article: Source

State to pay $70 million toward Alabama Trust Fund debt as fiscal year ends

Posted on 03 October 2014 by VRS  |  Email |Print

The state has taken another step toward repaying money it borrowed to prop up the education budget during the recession. Gov. Robert Bentley announced today the state will repay $70 million to the Alabama Trust Fund out of funds from fiscal year 2014, which ended Tuesday.
That includes $35 million that was required under the budget passed by the Legislature, plus another $35 million that was conditional on the funds being available. The state borrowed $437 million from the Alabama Trust Fund in fiscal year 2009 to support the education budget and must finish repaying the money next year………………………………………..Full Article: Source

Brazil official rules out fire sale of Banco do Brasil stock

Posted on 02 October 2014 by VRS  |  Email |Print

Brazil’s government has no plans to sell the shares of state-run Banco do Brasil SA owned by the nation’s sovereign wealth fund, to help close a shortfall in the federal budget, a top finance ministry official said on Wednesday.
The government has no intention of carrying out a fire-sale of the shares which would “unnecessarily slash” their value, said Paulo Rogêrio Caffarelli, the ministry’s No. 2 official, at an event in Rio de Janeiro………………………………………..Full Article: Source

Daimler : KIA looks to build on $18bn German spend

Posted on 02 October 2014 by VRS  |  Email |Print

The Kuwait Investment Authority (KIA), one of the world’s largest sovereign wealth funds and a long-term investor in German auto maker Daimler AG, wants to ramp up investments in Europe’s largest economy.
Finance minister and KIA board chairman Anas al Saleh said the authority would add to its investments in Germany, where Kuwait has invested almost $18 billion. KIA is the largest shareholder in Daimler, with a 6.8 per cent stake. The stake has grown in value to almost $6 billion………………………………………..Full Article: Source

CIC cuts stake in Noble Group

Posted on 01 October 2014 by VRS  |  Email |Print

China Investment Corp sold part of its stake in Noble Group, sending shares in the commodity trader tumbling and sparking fears the mainland sovereign wealth fund will eventually move to offload most of its holding. CIC, the second-biggest shareholder, sold shares equivalent to 4.5 per cent of the commodity trader.
The shares were sold at S$1.32 (HK$8.04), the bottom of an indicative range that topped out at S$1.35, raising S$396 million. It was not clear why CIC was selling the stake, but Nathan Gee, an analyst at Bank of America Merrill Lynch, said he did not expect any damage to Noble’s strategic relationships on the mainland………………………………………..Full Article: Source

CIC selling part of Noble Group stake, fans fear of more sales

Posted on 01 October 2014 by VRS  |  Email |Print

China Investment Corp will sell part of its stake in Noble Group Ltd at a 5 percent discount, sending shares in the commodity trader tumbling and sparking fears that CIC would eventually move to offload most of its holding.
The Chinese sovereign wealth fund, Noble’s second biggest shareholder, is selling shares equivalent to 4.5 percent of the commodity trader, a term sheet showed………………………………………..Full Article: Source

Indonesia’s Bumi Resources cuts rights issue size, in talks with creditors

Posted on 30 September 2014 by VRS  |  Email |Print

PT Bumi Resources Tbk , Indonesia’s biggest coal miner, has cut its planned rights issue, saying it sees an opportunity to negotiate with some creditors on its debt. In June, Bumi said it will issue up to 32.2 billion shares to raise 8.05 trillion rupiah ($664 million), mainly to pay off its debt to creditors, including Chinese sovereign wealth fund China Investment Corp.
In October last year, CIC agreed to convert part of Bumi’s debt into stakes in the miner and associated subsidiaries. In July, Bumi transferred a 19 percent stake worth $950 million in its unit, Kaltim Prima Coal, cutting its debt to the Chinese sovereign wealth fund to $1.04 billion………………………………………..Full Article: Source

Fitch expects further moderate growth of Azerbaijan’s sovereign assets

Posted on 30 September 2014 by VRS  |  Email |Print

Azerbaijan’s sovereign balance sheet is one of the strongest of any rated sovereign and underpins the rating, the statement says. The State Oil Fund of Azerbaijan (SOFAZ) reached USD37.6bn in 1H14. Adding USD15bn in foreign-exchange reserves at the Central Bank of Azerbaijan (CBAR), the sovereign’s gross external assets are equivalent to 69% of GDP.
Fitch expects further modest growth in sovereign assets as the current account registers (diminishing) surpluses in 2014-16. This should provide a buffer against oil price or production shocks and support the manat’s (AZN) peg to the USD at AZN0.78/USD1………………………………………..Full Article: Source

Reformed Irish SWF could still be used to pre-fund pension liabilities

Posted on 30 September 2014 by VRS  |  Email |Print

Using the Ireland Strategic Investment Fund’s (ISIF) assets to pre-fund the country’s pension liabilities should not be ruled out, the head of the Irish debt management office has said.
John Corrigan, outgoing chief executive at the National Treasury Management Agency (NTMA), said pension provision remained on the government agenda, despite last year’s decision to transform the National Pensions Reserve Fund (NPRF) into the ISIF, severing its ties with the pre-funding of state pension liabilities………………………………………..Full Article: Source

Aabar wealth fund to work with Goldman Sachs on options for RHB stake

Posted on 29 September 2014 by VRS  |  Email |Print

Aabar Investments PJSC, owned by Abu Dhabi’s sovereign wealth fund, is working with Goldman Sachs Group Inc. as it explores options for its stake in RHB Capital Bhd., according to people with knowledge of the matter.
Aabar, the Malaysian bank’s second-largest shareholder with a 21.2 per cent stake, is seeking to protect the value of its investment as the lender negotiates a three-way merger with CIMB Group Holdings Bhd. and Malaysia Building Society Bhd., the people said. It hasn’t yet signed a formal mandate with Goldman Sachs, one person said, asking not to be identified as the talks are private………………………………………..Full Article: Source

Ai to boost African pension, sovereign wealth fund by $1 trn

Posted on 29 September 2014 by VRS  |  Email |Print

Africa Investor, Ai has announced its $1billion Africa investor Sovereign Infrastructure Investment Platform, for African pension and sovereign wealth funds – continually developed in close partnership with African pension and sovereign wealth funds.According to a statement after the summit, Ai , a leading international investment and communications group and US institutional investors, including sovereign wealth and pension funds, have agreed to invest in Africa’s fastest growing sectors and capital markets.
The new Ai platform is uniquely designed to increase intra-African investment, which is currently at a mere 5 per cent compared to intra-European investment levels in excess of 70 per cent………………………………………..Full Article: Source

2014 Permanent Fund check set at $1,884

Posted on 26 September 2014 by VRS  |  Email |Print

Gov. Sean Parnell today announced that the 2014 Permanent Fund Dividend will be $1,884. The first dividends will be paid on Oct. 2, when approximately 510,731 applicants will receive a direct deposit into their bank account, and 88,186 will be mailed a check. Paper checks will enter the U.S. mail system on Oct. 2 from Juneau.
674,538 Alaskans applied for the 2014 dividend this year – an increase of approximately 1,587 applications from 2013. More than $944.4 million will be directly deposited into Alaskans’ bank accounts this year, with a total distribution, including checks, of $1.1 billion. Beginning Oct. 2, and continuing monthly thereafter, applications that become eligible will be paid either by check or direct deposit………………………………………..Full Article: Source

banner
October 2014
M T W T F S S
« Sep    
 12345
6789101112
13141516171819
20212223242526
2728293031