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Temasek arm expects to build Rs 6,000 crore mortgage book in India

Posted on 05 February 2016 by VRS  |  Email |Print

Fullerton India Credit Co Ltd (FICCL), an arm of Singapore’s state-run investment fund Temasek Holdings expects to build a Rs 5,000 crore to Rs 6,000 crore mortgage book in India in the next five years by lending to people in small towns and villages.
On Wednesday, the non banking finance company (NBFC) launched ‘Grihashakti’ through a subsidiary Fullerton India Home Finance which will lend to individuals to buy homes, refurbish houses and raise money against property. FICCL will invest Rs 100 crore in the new venture initially, the company had said in May 2015………………………………………..Full Article: Source

Abu Dhabi to shift $27B out of sovereign wealth fund

Posted on 04 February 2016 by VRS  |  Email |Print

Abu Dhabi, facing huge budget deficits, will likely transfer as much as $27 billion out of its sovereign wealth fund – the Abu Dhabi Investment Authority – into the government treasury, according to a report by Fitch Ratings.
ADIA, the largest sovereign wealth fund in the Middle East, has over $850 million in New York City real estate holdings. The emirate has taken major hits to its government revenues as oil prices have tanked over the past year, along with other major oil producers such as Russia and Saudi Arabia………………………………………..Full Article: Source

Abu Dhabi sovereign wealth fund assets to fall by 5% by end-2016 – Fitch

Posted on 04 February 2016 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, is expected to see its assets decline by just over 5 percent this year as the UAE capital attempts to balance its books on the back of the oil price slide.
Ratings agency Fitch said it projected a fall from an estimated $502 billion by end-2014 to $475 billion as outflows outpace investment returns. Abu Dhabi’s budget deficit widened from 7.2 percent in 2014 to 13.2 percent last year, prompted by a drop in oil and gas income………………………………………..Full Article: Source

Future Fund of Australia allocated $100m+ to ILS in 2015

Posted on 02 February 2016 by VRS  |  Email |Print

Australia’s sovereign wealth investment organisation The Future Fund made a $100m+ allocation to insurance-linked securities (ILS), such as catastrophe bonds and collateralized reinsurance, through its mandate with Elementum Advisors in 2015.
According to the Future Fund’s latest annual report the AUD$117 billion sovereign wealth fund, which was designed to support the Australian government’s financial position by providing for unfunded superannuation liabilities, added the ILS allocation as part of its new focus on alternative risk premia investing………………………………………..Full Article: Source

Iran’s $100 billion ‘fully released’

Posted on 02 February 2016 by VRS  |  Email |Print

The government says Iran can now access more than $100 billion in frozen assets after the implementation of a nuclear agreement last month. “These assets have fully been released and we can use them,” Government spokesman Mohammad-Baqer Nobakht said.
The spokesman also said much of the money released belongs to the CBI and the National Development Fund. “The government’s share is about six to seven billion dollars but assets belonging the Central Bank and the National Development Fund are much higher,” Nobakht said………………………………………..Full Article: Source

NZ Super Fund keeps $200mn reinsurance allocation stable in 2015

Posted on 01 February 2016 by VRS  |  Email |Print

The New Zealand Super Fund kept its reinsurance allocation steady at about $200mn in the financial year to 30 June 2015. The sovereign wealth fund yesterday (27 January) reported a 6.5 percent gain over the 2015 calendar year, taking its total portfolio to NZ$29.5bn ($19.2bn).
The fund’s most recent annual report listed a combined allocation of about $200mn as at 30 June last year to its two ILS managers, Leadenhall Capital Partners and Elementum Advisors………………………………………..Full Article: Source

Switzerland names the companies ‘linked to 1MDB scandal’

Posted on 01 February 2016 by VRS  |  Email |Print

The Swiss attorney general’s announcement that $4 billion may have been misappropriated from Malaysian state-owned companies opened a new front in the troubles facing 1Malaysia Development Bhd., or 1MDB, the state-investment fund set up by Prime Minister Najib Razak in 2009. Switzerland’s top prosecutor on Friday named a number of firms in Malaysia, Saudi Arabia and Abu Dhabi in relation to the matter, but gave no details of their roles, if any.
The attorney general’s office said it is examining allegations of criminal activity from 2009 to 2013 relating to PetroSaudi International Ltd., a Saudi oil company; SRC International Sdn Bhd, a unit of Malaysia’s Finance Ministry; Malaysian companiesGenting Group and Tanjong PLC; and a joint venture between 1MDB and an Abu Dhabi sovereign-wealth fund called the Abu Dhabi Malaysia Investment Company………………………………………..Full Article: Source

Swiss Question Use of Malaysian Sovereign Fund Run by Prime Minister

Posted on 01 February 2016 by VRS  |  Email |Print

Days after the prime minister of Malaysia was cleared of wrongdoing in an investigation into transfers of money into his bank accounts, the Swiss government announced Friday that it had found serious indications that funds had been misappropriated from Malaysian state-owned companies.
The sovereign wealth fund at the center of the Swiss inquiry, called 1Malaysia Development Berhad, or 1MDB, has been the focus of several investigations around the world as authorities attempt to ascertain whether money vanished in a series of international business deals………………………………………..Full Article: Source

Petrobras in sovereign fund’s spotlight on corruption fears

Posted on 01 February 2016 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund, Norway’s state pension fund, said Thursday it had placed Brazilian oil group Petrobras “under observation” because of corruption fears following a kickbacks scandal. The move means that the ethics council that advises the Norwegian central bank on the fund’s investments will follow developments closely, which could lead to the fund divesting its holding.
“Should further cases of gross corruption be revealed in Petrobras’ operations in the future and the company cannot satisfy that the anti-corruption programme is being complied with and effectively improved, the condition for exclusion may be met,” the council said in a statement………………………………………..Full Article: Source

Oil prices & the impact on Sovereign Wealth Funds - Libya as a case

Posted on 01 February 2016 by VRS  |  Email |Print

The drop in oil prices in the last 12 months has taken markets and investors by surprise. State institutions such as Sovereign Wealth Funds (SWF) have been affected and state budgets have suffered. SWF will grow slowly and in many cases will see some of their assets declining in value or being liquidated to help with government budget deficits. State foreign exchange reserves will be affected as well.
There are over 77 SWF’s in existence with total assets of over $7.1 Trillion dollars, of which $4 trillion are oil and gas related funds. By the end of 2015 more than 56 percent of the assets of SWFs originated from the sale of oil and gas related products. These funds account for anywhere from 5-10% of total money invested in global markets………………………………………..Full Article: Source

Dividend has a better future outside of the Alaska Permanent Fund

Posted on 01 February 2016 by VRS  |  Email |Print

“The budget, the budget and the budget.” That’s how my colleague — Sen. Click Bishop — outlined the Alaska Legislature’s top three priories this year, and it’s easy to see why. Seventy-five percent of the state’s unrestricted general fund revenue comes from oil, a commodity whose price has seen a rapid drop from $105 per barrel just 19 months ago, down to below $35 per barrel today.
Thanks to an American energy renaissance powered by a revolution in fracking technology, the world is experiencing an oil glut. While this may be great news for our nation in terms of energy independence, it means that our state’s budget is in the deep red to the tune of $3.5 billion or more………………………………………..Full Article: Source

Norway’s oil wealth is an enviable nest egg in hard times

Posted on 29 January 2016 by VRS  |  Email |Print

When times get tough, it never hurts to have €700bn stashed away like Norway does in the world’s biggest sovereign wealth fund, to cushion the blow of plunging oil prices. Oslo has prudently tucked away most of its oil money since the 1990s in order to be able to finance its generous welfare state indefinitely.
Invested in stocks, bonds and real estate, the fund is now worth about 6.96-trillion kroner (€734bn), equivalent to about six annual budgets or more than €137,000 for each of the country’s 5.2-million inhabitants………………………………………..Full Article: Source

Should you follow the Future Fund into cash?

Posted on 29 January 2016 by VRS  |  Email |Print

At the Future Fund’s quarterly portfolio update, the fund’s chairman and founder Peter Costello expressed his pride that the fund had been recognised by the Central Banking Journal as the sovereign investor of the year.
Australia’s $118 billion sovereign wealth fund has built a reputation as one of the most astute investment firms in the world and the award recognised the fund’s conservatism at a time when low returns compelled many investors to take more risk………………………………………..Full Article: Source

Are sovereign wealth funds big sellers in Indian stocks?

Posted on 29 January 2016 by VRS  |  Email |Print

Are sovereign wealth funds (SWFs) big sellers in Indian stocks? The conventional answer to that question is a yes, but data points to another intriguing trend — the rising share of direct sovereign fund investments in India. Assets under management (AUM) of SWFs in Indian equities climbed 14% to Rs 1.74 lakh crore in December 2015 from Rs 1.53 lakh crore a year ago, data compiled by ETIG shows.
An increase in SWF assets at a time of poor market returns shows that they have been buying Indian equities directly though they are sellers in foreign funds where they have parked their money………………………………………..Full Article: Source

SAMA’s net foreign assets reach SR2.283 trillion

Posted on 29 January 2016 by VRS  |  Email |Print

Net foreign assets at Saudi Arabian Monetary Agency (SAMA) declined 3.1 percent in December from the previous month to SR2.283 trillion ($609 billion), the central bank announced. Assets dropped 15.9 percent from a year earlier to their lowest level since August 2012. They reached a record high of $737 billion in August 2014 before starting to shrink.
The central bank, which acts as Saudi Arabia’s sovereign wealth fund, has been drawing down its assets to cover a huge state budget deficit caused by a plunge in oil prices. The bulk of foreign assets are believed to be denominated in US dollars………………………………………..Full Article: Source

Sainsbury’s likely to find support from Qatar Investment Authority for Home Retail Group bid

Posted on 29 January 2016 by VRS  |  Email |Print

Qatar Investment Authority (QIA), which holds a 25% stake in Sainsbury’s, is believed to have backed the supermarket chain it revises its offer for the Home Retail Group acquisition. This backing from QIA seen as significant is important as the takeover process has to complete before 2 February, reported The Times newspaper.
Investors of Home Retail have expressed dissatisfaction as the board did not counsel them when the offer was first made by Sainsbury’s in November, reported. Toscafund and Schroders, among the primary five investors in Home Retail, are believed to have brought both the sides for a new deal………………………………………..Full Article: Source

Sovereign Funds Vs. Asset Managers: The Big Picture

Posted on 29 January 2016 by VRS  |  Email |Print

A number of asset managers who focus on institutional investors such as commodity-based sovereign wealth funds have been ravaged with redemptions. The rapid descent of oil prices flummoxed wealth fund chiefs. In response to the oil glut, the money management spigot for investment managers running listed equity strategies has slowed.
Furthermore, Middle Eastern sovereign funds have been dumping some hedge funds (some shuttered operations), while Canadian asset giants shift more focus toward private credit, real estate and infrastructure investments. However, for some cash-rich sovereign wealth funds like the Abu Dhabi Investment Authority (ADIA), the sustained low price of oil has a negligible effect on their real estate investment activities………………………………………..Full Article: Source

Australia’s Future Fund Returns 8.4% in 2015, Expands Cash Level

Posted on 28 January 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund returned 8.4 percent last year to beat global and domestic benchmarks, as it increased cash holdings to pare risk. Future Fund, which manages A$118.4 billion ($83 billion), trimmed its global stock and private-equity investments, it said in an e-mailed statement Wednesday.
It warned that future returns may be lower as central banks withdraw monetary stimulus. “We have gradually reduced the level of risk in the portfolio through 2015, reflecting our view of the investment environment,” Managing Director David Neal said in the statement………………………………………..Full Article: Source

Happy returns for the Future Fund, for now

Posted on 28 January 2016 by VRS  |  Email |Print

As Australia’s $118 billion sovereign wealth fund prepares to celebrate its first decade in operation, it can look back with some satisfaction at a track record of beating its benchmark through years of volatile investment markets.
But, as the Future Fund has been warning would happen for the past couple of years, its returns slowed sharply in the latest six-month period as global markets shuddered at the prospect of some central banks winding down stimulus and growing divergence between major economies………………………………………..Full Article: Source

Boom, Bust, or Broke: What ‘Replumbing’ the Permanent Fund Would Look Like

Posted on 28 January 2016 by VRS  |  Email |Print

“Re-plumbing” the Permanent Fund is the most significant piece of Walker’s plan to close the budget deficit, projected to be $3.5 billion in Fiscal Year 2017. Attorney General Craig Richards told State Affairs members Tuesday that SB 128 will transition Alaska from an oil-based budget to one based on financial assets.
Stocks have performed better than oil since the Great Depression. They have significantly outperformed oil since about 1950, as Harvard Kennedy School of Government Fellow Malan Rietveld showed the committee………………………………………..Full Article: Source

Australia’s Future Fund delivers 8.4 pct, lowest return since 2011

Posted on 27 January 2016 by VRS  |  Email |Print

Australia’s sovereign wealth manager, the Future Fund, on Wednesday said it returned 8.4 percent in the year ending Dec. 31, its lowest annual return since 2011 as it boosts cash holdings amid greater global markets volatility.
Global markets have been unusually volatile since last August, largely led by fears of slowing growth in China and uncertainty over the timing of U.S. interest rate hikes. Future Fund Managing Director David Neal said the fund has “gradually reduced the level of risk” in the portfolio through 2015………………………………………..Full Article: Source

Saudi royal family gave Najib $681M ‘personal donation’

Posted on 27 January 2016 by VRS  |  Email |Print

Saudi Arabia’s royal family gave Malaysian Prime Minister Najib Razak a $681 million gift, Malaysia’s attorney general has revealed, ending months of speculation about the source of the huge personal donation.
In addition, the attorney general reportedly said that he was satisfied that no offence had been committed in relation to SRC International, a former subsidiary of heavily indebted state fund 1Malaysia Development Berhad (1MDB). SRC had been probed over the alleged misappropriation of fund worth $932 million………………………………………..Full Article: Source

World’s Biggest Wealth Fund Speaks Out on Liquidity Banks Miss

Posted on 27 January 2016 by VRS  |  Email |Print

As some of the world’s best-known investment banks blame tougher capital rules for contributing to the lack of liquidity in financial markets, the world’s biggest sovereign wealth fund has a different take. The argument is “an excuse for something else,” Oeyvind Schanke, chief investment officer of asset strategies at Norway’s $790 billion fund, said in an interview in Oslo on Tuesday.
One week after bank executives met in Davos, Switzerland, where they spent some time discussing the fallout of stricter financial requirements, Norway’s wealth fund is questioning a tendency to blame regulators………………………………………..Full Article: Source

Energy-rich sovereign wealth funds pull money from firms

Posted on 26 January 2016 by VRS  |  Email |Print

Global money managers are losing some of their most reliable client assets as the stubbornly low oil price continues to take a toll on the world’s largest sovereign wealth funds. Sources with knowledge of sovereign wealth funds and their assets said the price of oil — which hovered around $30 a barrel as Pensions & Investments went to press — will affect funds in different ways because of their varied objectives.
Development funds, for example, are unlikely to redeem assets, sources said, while stabilization funds that are designed to cover fiscal deficits may be tapped by governments to plug the gap………………………………………..Full Article: Source

Europe well placed to weather the turmoil

Posted on 26 January 2016 by VRS  |  Email |Print

There are many reasons to be concerned about the economic outlook for Europe. Risks are arising from political instability in Spain and Portugal, a looming standoff between Greece and its creditors, a possible British decision to quit the EU and fallout from the potential unravelling of Europe’s Schengen passport-free travel zone.
But all signs point to this market slide — which began mysteriously on the last trading day of 2015 without any obvious news to trigger the rout — as having been a liquidity-driven event most likely sparked by a New Year change in investment strategy by a major, or several major, investors, perhaps a sovereign-wealth fund looking to liquidate assets to make up for budgetary shortfalls arising from low oil prices………………………………………..Full Article: Source

SOFAZ discloses revenues from largest gas project

Posted on 25 January 2016 by VRS  |  Email |Print

The revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project for developing the Shah Deniz gas and condensate field in the Azerbaijani sector of the Caspian Sea totaled $2.44 billion from 2007 to Jan.1, 2016, SOFAZ told Trend Jan.19.
SOFAZ said its revenues from the Shah Deniz project reached $323 million in 2015. The contract for developing the Shah Deniz offshore field was signed on June 4, 1996. The field’s reserve is estimated at 1.2 trillion cubic meters of gas………………………………………..Full Article: Source

Permanent Fund value takes a $2.5 billion hit as stock markets dive

Posted on 22 January 2016 by VRS  |  Email |Print

The value of the Alaska Permanent Fund portfolio decreased by billions of dollars in the first two weeks of this year, as U.S. and global stock markets plummeted. While the fund was worth an estimated $51.8 billion on New Year’s Day, according to the fund spokeswoman Laura Achee, that value dropped by $2.5 billion drop as of Jan. 15.
The slide has continued this week, with the value dipping to $48.9 billion on Tuesday when the Alaska Legislature’s 90-day lawmaking session began. “It is a bit unusual,” Gov. Bill Walker said in an interview. “Typically, when the price of oil is down, the stock market is up because the cost of doing business is significantly less.”……………………………………….Full Article: Source

Oil price collapse heightens concern over sovereign wealth funds

Posted on 21 January 2016 by VRS  |  Email |Print

One reason tumbling oil prices have hit global market sentiment so badly is because investors are worried about the fiscal damage being wrought upon energy-producing nations. They need to raise money, the reasoning goes. And so, as Capital Economics notes: “The collapse in oil prices has prompted concerns that many sovereign wealth funds will be forced to liquidate their vast holdings of financial assets, putting further pressure on market prices.”
The assets of SWFs have more than doubled since the end of 2007, from about $3.5tn to $7.2tn, the result of oil prices increasing earlier in that period. It is estimated that by the end of last year more than 56 per cent of the assets of SWFs originated from the export of oil and gas-related products, says CapEco………………………………………..Full Article: Source

Shares sell-off by sovereign wealth funds hurting markets

Posted on 21 January 2016 by VRS  |  Email |Print

When the price of crude was riding high at about $120 a barrel, oil-rich countries seemed to have plenty of cash to go around. Money was invested in shares and other assets around the world, not just by individuals, but by the sovereign wealth funds (SWFs).
But with the oil price sinking to around a 12-year low, there are signs that SWFs are having to dump assets to raise money. And that is exacerbating the turmoil on world markets. SWFs are a bit like a savings account for a country, with money put aside for a rainy day. The money was spent buying shares, currencies, property or other assets………………………………………..Full Article: Source

“Norway will become poorer,” OECD says

Posted on 21 January 2016 by VRS  |  Email |Print

Recent economic developments, policies and prospects, as well as an insight in higher education, agriculture, and rural policy are examined in the report. OECD Director Bob Ford talked about the Sovereign Wealth Fund in his speech at the presentation of the report.
He highlighted that the SWF has acted as a buffer against worse economic times and a falling oil price, reported NRK. “But the oil price drop means that Norway will become poorer, and we will have structural budget challenges in the years ahead,” he said. It is also estimated that the value of Norway’s oil wealth would be reduced from NOK 4,200bn to NOK 2,500bn (about USD 282.57bn) if: prices per barrel were NOK 100 (some USD 11.3) lower than thought, and gas prices were reduced accordingly, percentage-wise………………………………………..Full Article: Source

Kuwaiti MP calls for probe into ‘suspicious’ asset sale by sovereign wealth fund

Posted on 21 January 2016 by VRS  |  Email |Print

The head of Kuwait’s National Assembly’s public funds protection committee has claimed that the Kuwait Investment Authority (KIA) has refused to cooperate with its investigation into the allegedly suspicious sale of one of its assets.
The Kuwait Times reported that MP Abdullah Al Turaiji said the committee met on Monday to investigate the sale of one of KIA’s real estate assets which it believes “serves the relatives of the KIA director”………………………………………..Full Article: Source

Oil nations to sell $240b assets

Posted on 19 January 2016 by VRS  |  Email |Print

Oil-producing countries will sell $240 billion of international assets this year, mostly stocks and bonds, in an attempt to hold together budgets blown apart by the slump in oil prices, according to estimates from JP Morgan.
That sum will come from running down their foreign exchange reserves and Sovereign Wealth Fund holdings. They will also raise some $20 billion by selling government bonds of their own to help cover a current account shortfall of $260 billion, the US bank predicts………………………………………..Full Article: Source

Azerbaijan considers tighter currency controls to staunch losses

Posted on 19 January 2016 by VRS  |  Email |Print

Azerbaijan’s President Ilham Aliyev has ordered measures to support the economy and ailing manat currency, including a possible tightening of currency controls, help for banks, and a sell-off of state assets, state television reported on Monday.
The State Oil Fund of Azerbaijan (SOFAZ) sold a total of $193.9 million on the foreign exchange market on Monday in a bid to prop up the weakening manat. It was the fund’s third intervention this year. It has sold $539.9 million in total so far, while $100 million was sold by the country’s central bank……………………………………….Full Article: Source

China Investment Corp approaches Mirvac on $3.5b Investa Office Fund

Posted on 18 January 2016 by VRS  |  Email |Print

China’s sovereign wealth fund China Investment Corporation is considering a bid for the $3.5 billion Investa Office Fund. The negotiations are still in developing stages but sources have told Street Talk that several documents with some preliminary metrics have already been drawn up.
A tilt from CIC makes sense given it bought the $2.5 billion unlisted Investa Property Trust office portfolio from Morgan Stanley Real Estate Investing last year. Adding most of IOF’s $3.5 billion portfolio to its holdings would give it significantly more scale………………………………………..Full Article: Source

HKMA Pledges to Keep Currency Peg: These Are Some Alternatives

Posted on 18 January 2016 by VRS  |  Email |Print

Speculation is mounting that the Hong Kong dollar’s 32-year-old peg to the greenback will end as tightening U.S. monetary policy and an economic slump in China put the link under pressure. The city’s currency on Friday fell to a four-year low as concern about China’s economy fueled a selloff in the nation’s stock market.
The Hong Kong Monetary Authority a day earlier reaffirmed its commitment to the existing exchange-rate mechanism, while Chief Executive Norman Chan said last month the local dollar’s peg is the cornerstone of financial and monetary stability in the city and there are no plans to amend it………………………………………..Full Article: Source

Norwegian oil fund gives grants for portfolio, engaged ownership research

Posted on 14 January 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund has awarded two research grants, one for a project on portfolio choice for long-term investors and another for an investigation of the effectiveness of engaged ownership.
The grants are for three years and were awarded as part of the Norwegian Finance Initiative’s (NFI) research programme. US-based National Bureau of Economic Research (NBER) has been granted funding to carry out a series of research conferences on topics within long-term asset management………………………………………..Full Article: Source

Malaysia accounts for 55.1% of Khazanah’s realisable asset value

Posted on 14 January 2016 by VRS  |  Email |Print

Malaysia accounted for about 55.1% of Khazanah Nasional Bhd’s realisable asset value (RAV) by geographic exposure in 2015. The sovereign wealth fund said on Wednesday that overseas investments accounted for the remainder of RAV.
The RAV reflected Khazanah’s internationalisation strategy in 2015, which saw the setting up of a London office by its unit subsidiary Khazanah Europe Investment Ltd. The London office is Khazanah’s fifth regional office after Beijing, Mumbai, San Francisco and Istanbul………………………………………..Full Article: Source

Khazanah says volatility isn’t ebbing after ‘rollercoaster’ 2015

Posted on 14 January 2016 by VRS  |  Email |Print

Khazanah Nasional Bhd said 2016 will continue to be challenging for the Malaysian sovereign wealth fund after a “rollercoaster” year which saw its assets decline amid turmoil in financial markets. The net asset value of Khazanah’s investments fell 1.6 per cent to 109 billion ringgit (Dh91.3 billion, $24.9 billion) at the end of 2015 from 110.7 billion ringgit a year earlier, the company said.
The local stock benchmark FTSE Bursa Malaysia KLCI Index slid 3.9 per cent in 2015. Khazanah owns stakes in some of Malaysia’s biggest listed companies, whose shares have dropped as global investors pulled 19.5 billion ringgit from the country’s stock market last year………………………………………..Full Article: Source

ShopClues raises fresh capital in a Series E round led by GIC

Posted on 13 January 2016 by VRS  |  Email |Print

Gurgaon-based online marketplace Shopclues said it has raised fresh capital in a Series E round led by GIC, the sovereign wealth fund of Singapore. Existing investors Tiger Global and Nexus Venture Partners also participated in the new financing round, which the company says catapults it to a $1.1 billion valuation, making it a part of the unicorn club.
The e-tailer did not disclose the amount raised in a prepared statement sent out to the media. What’s significant is that GIC is a shareholder in India’s largest online retailer Flipkart, which directly competes with ShopClues………………………………………..Full Article: Source

How was 1MDB saved without public funds, DAP asks Najib

Posted on 12 January 2016 by VRS  |  Email |Print

Datuk Seri Najib Razak must explain in Parliament how 1Malaysia Development Berhad’s (1MDB) financial woes were resolved without the use of public funds, says DAP. Its national publicity chief Tony Pua said today that failure to do so only proved that the prime minister had much to hide and did not dare answer the country’s supreme legislative body.
Najib said yesterday that public funds were not being used to resolve 1MDB’s financial issues. “What we are glad about is that we are resolving it not by way of a memorandum of understanding (MoU) but through an ‘agreement’, without touching any of the people’s money,” he said in a statement………………………………………..Full Article: Source

Sovereign Wealth Funds Spent Less in 2015

Posted on 12 January 2016 by VRS  |  Email |Print

The total direct transaction amount in 2015 by sovereign funds is US$ 114 billion compared to US$ 122 billion in 2014. However, when calculating all public investors, which includes large public pensions, direct transactions total US$ 211 billion in 2015 versus US$ 186 billion in 2014.
Leading the charge for asset-rich pensions were Canadian institutional investors such as Canada Pension Plan Investment Board (CPPIB), Ontario Teachers’ Pension Plan (OTPP) and Caisse de dépôt et placement du Québec (CDPQ)………………………………………..Full Article: Source

Kazakh sovereign wealth fund is latest victim of oil price fall

Posted on 11 January 2016 by VRS  |  Email |Print

Kazakhstan’s $64.2bn sovereign wealth fund has become the latest victim of the collapse in the price of oil and is predicted to be completely drained by 2026. Billions of dollars are expected to be pulled from global asset managers as a result.
The assets managed by the national fund in Kazakhstan, which relies heavily on oil to finance its economy, have fallen by 16 per cent to $64.2bn in just 18 months. During the same period, the price of oil has plummeted to $33 from $115 a barrel………………………………………..Full Article: Source

Kazakhstan’s $64 Billion Question: Will Oil Fund Disappear?

Posted on 11 January 2016 by VRS  |  Email |Print

Kazakhstan’s $64 billion oil fund could run out of money within six or seven years as slumping oil prices cut revenue and the government spends its savings, a central-bank official said.
The so-called National Fund has fallen 17% from its peak of $77 billion in August 2014. The government is drawing as much as $9.5 billion a year from it for spending. Kazakh politicians and the central bank need to cut spending, boost tax collection and invest the fund in higher-yielding assets such as private equity, according to Berik Otemurat, chief executive of the National Investment Corp., a unit of the central bank created in 2012………………………………………..Full Article: Source

Norway’s sovereign wealth fund facing high prices, uncertainty

Posted on 11 January 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund has $6 billion to spend on global real estate investments, but its head of real estate says there may just not be enough good opportunities out there. High real estate prices in North America, Europe and Asia, as well as the need to partner with local firms, is slowing the fund’s push into the property market, Karsten Kallevig of Norges Bank Investment Management, which oversees the fund, told the Wall Street Journal.
“In the recent five years, we’ve had returns that we absolutely can’t expect over time,” Kallevig told the paper. “Property markets are highly priced.”……………………………………….Full Article: Source

Norway’s Oil Fund Is Finding it Hard to Spend $6 Billion

Posted on 08 January 2016 by VRS  |  Email |Print

Karsten Kallevig has a mandate to spend about $6 billion a year on high-end properties across Europe, North America and Asia. The snag: The freshly minted real-estate chief at Norway’s sovereign-wealth fund can’t find enough bricks for his bucks.
Although it has decided to invest about $6 billion a year in real estate as part of an effort to diversify an $820 billion portfolio built out of the Nordic nation’s oil windfall, the fund managed by Norway’s central bank, is facing a dearth of attractive opportunities. “It’s natural for us to proceed at a slightly slower pace,” Mr. Kallevig, who took office on Jan. 1, said in an interview. “Our appetite hasn’t been reduced. But times are uncertain.”……………………………………….Full Article: Source

Malaysia scrubs out half its sovereign fund stain

Posted on 07 January 2016 by VRS  |  Email |Print

The world’s most troubled sovereign fund is scrubbing itself clean. 1Malaysia Development Berhad has been at the centre of allegations of graft which have sparked investigations from Hong Kong to the United States. Now a $1.7 billion deal with a Malaysian-Chinese group over prime real estate in Kuala Lumpur means 1MDB’s financial woes are close to resolution.
Malaysian politics has been in turmoil since July, when it was revealed that almost $700 million had landed in the personal accounts of Najib Razak, the prime minister. Najib is chairman of 1MDB’s board of advisers. He denies taking any money from the energy-to-real estate portfolio for personal gain. The country’s anti-corruption commission has said the cash came from an unnamed donor………………………………………..Full Article: Source

1MDB explains why Bandar Malaysia buyer listed different deal price

Posted on 07 January 2016 by VRS  |  Email |Print

Whether in the form of an all-cash or a part cash-part assumption of debt deal, the total price tag for the 60 per cent stake in Bandar Malaysia Sdn Bhd is RM7.41 billion (S$2.4 billion). Questions arose on the RM2.13 billion variance after China Railway Group Ltd (CRG) put the acquisition cost at RM5.28 billion in a filing with the Hong Kong stock exchange on Monday.
Four days earlier, Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd - a unit of CRG - inked an agreement with 1MDB Real Estate Sdn Bhd to purchase the 60 per cent stake for RM7.41 billion………………………………………..Full Article: Source

Have the sovereign wealth billions been found?

Posted on 05 January 2016 by VRS  |  Email |Print

While the debate on Nigeria’s sovereign wealth fund debacle raged sometime in December, 2013, available statistics on the spiraling figures did not add up then with reasons adduced in government circles.
A member of the committee then, Senator Ita Enang and former Coordinating Minister for the Economy and Finance Minister, Mrs. Ngozi Okonjo-Iweala, had quoted different figures of funds accruing to the Excess Crude Account (ECA) during the Joint Senate Committee of Finance and Appropriations on the 2013 budget and federal revenue-generating agencies. Senator Enang, quoting from records available to the committee, said so far, $14.06 billion inflow was recorded into the ECA with a $9 billion outflow, leaving a balance of $5.06 billion………………………………………..Full Article: Source

Kuwait sovereign fund postpones sale of subsidiary via IPO

Posted on 04 January 2016 by VRS  |  Email |Print

Kuwait’s sovereign wealth fund is delaying the sale of its holding in Kuwait Investment company (KIC) through an initial public offering due to market conditions, it said in a bourse statement on Thursday.
The Kuwait Investment Authority (KIA), the region’s oldest state fund with an estimated $500 billion (Dh1.83 trillion) in assets, owns 76 per cent of KIC. The KIA’s divestiture in KIC was first announced in late October 2014 and initially slated for the first half of this year, according to a report by Moody’s Investors Service………………………………………..Full Article: Source

Oman to raise tax and cut subsidies as oil rout hits sultanate hard

Posted on 04 January 2016 by VRS  |  Email |Print

Unlike the UAE, which has reserves of more than 275 per cent of its GDP, and Saudi Arabia, with reserves of about 100 per cent of GDP, the Oman Investment Fund, the sultanate’s sovereign wealth fund, has 5.4 billion rials (Dh5.28bn) in assets under management, equivalent to 40 per cent of GDP.
The Omani fund is dwarfed in size by the sovereign wealth funds of its neighbours. The Abu Dhabi Investment Authority and Saudi’s SAMA Foreign Holdings each have more than US$600bn in assets under management. Standard & Poor’s has cut Oman’s credit rating twice this year, as the oil rout had a greater effect on the country’s fiscal and trade positions than previously forecast………………………………………..Full Article: Source

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