Sat, Feb 6, 2016
A A A
Welcome tstroemlev
RSS

Sovereign Wealth Funds Briefing - Category | Financials more

SOFAZ reveals volume of revenues for entire period of its activity

Posted on 04 January 2016 by VRS  |  Email |Print

The revenues of the State Oil Fund of Azerbaijan (SOFAZ) for the entire period of its activity totaled $124.9 billion, SOFAZ told Trend Dec.29. The State Oil Fund was created in 1999 and its assets were equal to $271 million that time. The total expenditures of SOFAZ for the entire period of its activity amounted to $86.3 billion, including transfers to the state budget - $78.4 billion.
“At the same time, for the whole period the extra-budgetary expenditures of the fund due to the difference in the exchange rate of the currencies in the investment portfolio of SOFAZ, amounted to about $5 billion,” said the fund………………………………………..Full Article: Source

Russian state fund to keep deposits at VEB bank - minister

Posted on 30 December 2015 by VRS  |  Email |Print

Russian Economy Minister Alexei Ulyukayev told state television on Tuesday that a proposal to extend the sovereign National Wealth Fund’s deposits in troubled state development bank Vnesheconombank was already “practically a decided matter”.
The proposal, put forward by the Finance Ministry, is part of measures aimed at helping the ailing bank, hit by Western sanctions over Moscow’s role in the Ukraine crisis and facing bad loans and heavy external debt repayments………………………………………..Full Article: Source

SOFAZ not to cut expenditures

Posted on 30 December 2015 by VRS  |  Email |Print

Azerbaijan’s oil fund SOFAZ has no plans to cut budget expenditures for 2016, the fund told Trend. “The budget of the fund, as well as the state budget, is approved by the decree of the president of Azerbaijan in manats and is a financial document, expenditures of which should be executed,” the fund said. “In this regard, regardless of income level in the next year, SOFAZ is obliged to fulfill the expenditure budgeted.”
The revision of the budget expenditures of the fund due to the fact that expenditures of the SOFAZ are linked to expenditures of the consolidated budget, the limit of which is approved by law on the state budget, will be possible only in case of revision of the state budget of the country, according to the fund………………………………………..Full Article: Source

Russia may extend National Wealth Fund deposits in VEB for 5 years

Posted on 29 December 2015 by VRS  |  Email |Print

Russia’s finance ministry has proposed to extend the National Wealth Fund’s deposits in state development bank Vnesheconombank (VEB) for five years, the ministry’s document showed on Monday.
The ministry also suggested that the government should extend the Fund’s deposits in VEB at an interest rate of no less than 0.25 percent with a three-year grace period, the document published on the website for official drafts showed………………………………………..Full Article: Source

CIC Declares Ownership of 2.1% Stake in SMI

Posted on 29 December 2015 by VRS  |  Email |Print

China Investment Corporation recently revealed that they own 2.1% of Semiconductor Manufacturing Int’l in a Form 13D/A disclosure that was filed with the SEC on Monday, December 28th. The investor owns 905,598,902 shares of the stock worth $4,691,002,312.
The reporting parties listed on the disclosure included China Investment Corporation, Bridge Hill Investments Limited and Country Hill Limited………………………………………..Full Article: Source

Temasek Maintains 12.5% Stake in Tuniu Corp

Posted on 29 December 2015 by VRS  |  Email |Print

Temasek Holdings (Private) Limited recently revealed that they own a 12.5% stake in Tuniu Corp in a Schedule 13G/A disclosure that was filed with the Securities and Exchange Commission (SEC) on Tuesday, December 22nd. The investor owns 24,583,333 shares of the stock worth about $412,016,661.
The reporting parties listed on the disclosure included Temasek Holdings (Private) Limited, Tembusu Capital Pte Ltd and Esta Investments Pte Ltd. The disclosure is available through EDGAR at this link………………………………………..Full Article: Source

‘Politicized’ Sovereign Funds Earn Lower Returns, Study Says

Posted on 28 December 2015 by VRS  |  Email |Print

Sovereign-wealth funds that are “highly politicized” earn lower returns on their stock-market investments than more independent peers, according to new academic research. An analysis of more than 1,000 sovereign-wealth fund investments in publicly traded companies found that shares in those companies rose less following a purchase by a sovereign-wealth fund compared with almost 6,000 comparable stock purchases by private investors.
The so-called SWF discount was worse when funds with strict government oversight bought shares. There was no discount when Norway’s independently managed sovereign-wealth fund bought shares, according to Veljko Fotak of the University at Buffalo……………………………………….Full Article: Source

Cash-Strapped Brazil Taps into Sovereign Wealth Fund

Posted on 28 December 2015 by VRS  |  Email |Print

Brazil dipped into its $620 million sovereign wealth fund on Tuesday as the government struggles to shore up public accounts that have been hit by the deepest economic recession in 25 years.
The government withdrew 855 million reais ($216 million) from the fund, or about one-third of its assets, as part of a strategy to boost public coffers, the Finance Ministry said in a statement Wednesday. The decision was made “in a context of economic contraction with a sharp drop in fiscal revenue and difficulties to cut mandatory expenses,” the statement read………………………………………..Full Article: Source

The Trouble With Sovereign-Wealth Funds

Posted on 28 December 2015 by VRS  |  Email |Print

Kazakhstan’s $55 billion sovereign-wealth fund helped pull the country through the global financial crisis and offered funding for the country’s bid to host the 2022 Winter Olympics. But the collapse in oil prices has hit Kazakhstan and its fund, Samruk-Kazyna JSC, hard.
In October, the fund borrowed $1.5 billion in its first syndicated loan to help a cash-strapped subsidiary saddled with a troubled oil-field investment. “Our oil company lost lots of its revenues,” says the fund’s chief executive, Umirzak Shukeyev. “Currently, we are trying to adjust to the situation.”……………………………………….Full Article: Source

SOFAZ not to cut expenditures in 2016

Posted on 28 December 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has no plans to cut budget expenditures for 2016, the fund told Trend. “The budget of the fund, as well as the state budget, is approved by the decree of the president of Azerbaijan in manats and is a financial document, expenditures of which should be executed,” the fund said. “In this regard, regardless of income level in the next year, SOFAZ is obliged to fulfill the expenditure budgeted.”
The revision of the budget expenditures of the fund due to the fact that expenditures of the SOFAZ are linked to expenditures of the consolidated budget, the limit of which is approved by law on the state budget, will be possible only in case of revision of the state budget of the country, according to the fund………………………………………..Full Article: Source

The world’s biggest wealth fund just weighed in on the debate dividing Wall Street

Posted on 28 December 2015 by VRS  |  Email |Print

Norges Bank Investment Management has sent a letter to the Securities and Exchange Commission supporting IEX Group, the stock-trading venue at the center of Michael Lewis’ book “Flash Boys.”
The Norwegian sovereign wealth fund, which manages $824 billion in assets and ranks as the biggest fund of its type in the world, is the latest market participant to weigh on IEX’s application to become an exchange………………………………………..Full Article: Source

DLF gets Rs 1,992 crore from GIC for stake sale in 2 projects

Posted on 28 December 2015 by VRS  |  Email |Print

India’s largest real estate firm DLF has said that it has received Rs 1,992 crore from Singapore’s sovereign wealth fund GIC after the completion of its deal to sell 50 per cent stake in two of its new projects in Delhi. DLF had earlier announced that it has signed an agreement with GIC to enter into a joint venture to invest in two upcoming projects located in central Delhi.
The deal was later approved by the Competition Commission of India. “DLF Ltd has now informed BSE that subsequent to receipt of CCI approval and having met other preclosing conditions, the funding for the above said transaction has been concluded on December 23, 2015 with the receipt of Rs 1,992 crore from GIC, Singapore’s sovereign wealth fund,” the company said in a filing to the Bombay Stock Exchange. ……………………………………….Full Article: Source

Accel Partners sells fractional stake in Flipkart to Qatar Investment Authority for $100 million

Posted on 21 December 2015 by VRS  |  Email |Print

Accel Partners has sold a fractional stake in Flipkart to Qatar Investment Authority for $100 million (about Rs 650 crore), in a deal that values India’s biggest online marketplace at $15 billion, according to two people aware of the transaction. Accel, the first venture investor in Flipkart, remains the second-largest shareholder in the ecommerce company behind New York-based hedge fund Tiger Global Management.
The venture firm’s latest transaction is its most significant involving Flipkart since selling the ecommerce company’s shares worth more than $80 million to undisclosed buyers last year. “The (Accel-QIA) deal closed in November,” one person said. “Given that valuation numbers are expected to stabilise, this is the right time to book returns.” Both the sources declined to be identified………………………………………..Full Article: Source

1MDB scandal rocks Malaysian politics

Posted on 21 December 2015 by VRS  |  Email |Print

The year in Malaysia started with the debt struggles of state investment firm 1Malaysia Development Berhad (1MDB) and how it got into the mess in the first place. And the same questions remain as the year draws to a close.
The 1MDB, which is owned by the Finance Ministry, was set up by Prime Minister Najib Razak in 2009 and he heads its board of advisers. In July, Datuk Seri Najib was confronted with another scandal when some US$680 million (S$961 million) in cash was discovered in his bank accounts by investigators probing 1MDB. The Malaysian government says it is working hard to erase 1MDB’s debts………………………………………..Full Article: Source

How 1MDB overpaid for its power assets

Posted on 21 December 2015 by VRS  |  Email |Print

Most of 1MDB’s power assets were acquired within a 16-month time frame between March 2012 and July 2013. The spending spree raised many questions at the time, which remain unsatisfactorily unanswered as at writing time. The underlying logic of buying over independent power producers (IPPs), as understood by market observers, would likely be the strong cash flow.
In simple terms, IPPs have a steady stream of cash flow by virtue of their power purchase agreements (PPAs), which are iron-clad agreements that guarantee a steady stream of money in exchange for a steady level of power generation as stipulated in the agreement………………………………………..Full Article: Source

The Future Fund should not be used to pay off deficits

Posted on 18 December 2015 by VRS  |  Email |Print

The government’s budget update was an occasion to despair about the point of the Future Fund, Australia’s $118 billion sovereign wealth fund set up by the Howard government in 2006 mainly from the proceeds from the sale of Telstra. It seems it’s going to be largely wasted, and not invested in the proper sense of the word.
It turns out — highly conveniently for the government — that the first year of the Turnbull government’s (tiny) scheduled budget surplus in the financial year ending June 2021 is the same year the Future Fund’s assets are able to legally be drawn down………………………………………..Full Article: Source

$850M 1MDB payment sent to Virgin Island firm: WSJ

Posted on 18 December 2015 by VRS  |  Email |Print

A deeply indebted Malaysian investment fund may have sent as much as $850 million to a British Virgin Islands entity set up with a name closely resembling one owned by an Abu Dhabi sovereign wealth fund, the Wall Street Journal reported, citing documents and people familiar with the matter.
Last year, a unit of 1Malaysia Development Bhd., or 1MDB, transferred funds to an entity called “Aabar Investments PJS Ltd.,” which has a name closely resembling Aabar Investments PJS, a subsidiary of Abu Dhabi’s International Petroleum Investment Co. (IPIC), the WSJ said………………………………………..Full Article: Source

1MDB sent $ 850 mil to entity set up to appear owned by Abu Dhabi wealth fund

Posted on 18 December 2015 by VRS  |  Email |Print

A troubled Malaysian state investment fund sent at least $850 million last year to an offshore entity set up to appear that it was owned by an Abu Dhabi sovereign-wealth fund, a transfer which deepens the mystery over billions of dollars that are unaccounted for, according to documents reviewed by The Wall Street Journal and people familiar with the matter.
The 1Malaysia Development Bhd. fund, or 1MDB, set up by Malaysian Prime Minister Najib Razak in 2009 to promote economic development, is under investigation in at least six countries over a broad array of allegations that money was siphoned off for political spending and for personal gain. One focus of investigation is $2.4 billion in payments that 1MDB said it made to a unit of Abu Dhabi’s International Petroleum Investment Co., or IPIC, as part of a deal involving the Malaysian fund’s purchase of power plants………………………………………..Full Article: Source

Narayana Hrudayalaya raises $27m from Singapore’s GIC, other anchor investors

Posted on 18 December 2015 by VRS  |  Email |Print

Healthcare firm Narayana Hrudayalaya Ltd on Wednesday raised nearly $27 million (Rs.184 crore) through anchor investors ahead of its initial public offering (IPO) on Thursday. The anchor book is that portion of the IPO which bankers allot to institutional investors on a discretionary basis.
Foreign institutional investors, including Fidelity, Government of Singapore’s GIC and Harvard Management Co., bought the firms share. Domestic institutions which subscribed to the anchor book include mutual funds from asset managers such as Birla Sunlife, SBI, ICICI Prudential, Reliance Capital and HDFC Mutual Fund………………………………………..Full Article: Source

Italian state lender to set up equity fund for family businesses

Posted on 17 December 2015 by VRS  |  Email |Print

State-owned Italian bank Cassa Depositi e Prestiti (CDP) is to set up a private equity fund to help family businesses, but a family business expert questions to what degree it will achieve its aim of helping them go public.
CDP will act as an anchor investor and invite foreign investors and sovereign wealth funds to buy shares in the companies. Professor Alfredo De Massis, director of the Centre for Family Business at Lancaster University says the fund will help business go public, but some might be reluctant to initial public offerings (IPO) due to cultural bias………………………………………..Full Article: Source

HKMA long-term growth portfolio yields 13.5% as of end-2014

Posted on 16 December 2015 by VRS  |  Email |Print

Hong Kong Monetary Authority‘s Long-term Growth Portfolio (LTGP) has yielded an internal return ratio of 13.5 percent as of the end of last year since its inception about seven years ago, a senior official said. Eddie Yue, deputy chief executive of HKMA, said in an article published on the monetary authority’s website that the LTGP’s investment mandates are in line with the goals set forth for the government’s Future Fund.
The government had earlier decided to establish a long-term Future Fund with half of the Land Fund to be entrusted in the LTGP. The portion will be worth about HK$100 billion as part of the larger Land Fund that amounts to over HK$200 billion………………………………………..Full Article: Source

This is the secret strategy behind GIC’s million-dollar returns

Posted on 15 December 2015 by VRS  |  Email |Print

Acting as a cornerstone investor in bond deals is helping GIC Pte boost returns on its fixed-income portfolio as yields persist near record lows and risks start to increase in the bond market, according to Singapore’s sovereign-wealth fund.
Companies that issue bonds directly to GIC when it acts as an anchor investor save on underwriting fees and part of those savings are passed on to the wealth fund, Chief Investment Officer Lim Chow Kiat said in an interview with the London-based Sovereign Wealth Center published Tuesday………………………………………..Full Article: Source

Saudi eyes spending cuts, new revenue sources

Posted on 14 December 2015 by VRS  |  Email |Print

Saudi Arabia’s government is expected to announce spending cuts and a drive to raise revenue from new sources as it lays out a strategy to cope with an era of cheap oil, people familiar with Saudi policy-making said.
Increasing non-oil exports would happen only slowly, so Riyadh should also consider introducing new policies to preserve its foreign assets and create a sovereign wealth fund to increase returns on them……………………………………….Full Article: Source

Temasek to participate in Chinese bank’s stake sale

Posted on 11 December 2015 by VRS  |  Email |Print

Temasek Holdings, the biggest foreign investor in Chinese banks, will raise its profile in the country’s financial sector by taking part in Postal Savings Bank of China’s (PSBC) private fund-raising exercise. PSBC will sell 16.92% of its stake to 10 global strategic partners, including financial institutions, such as JP Morgan Chase, UBS Group, Temasek Holdings and Alibaba-owned Ant Financial.
The stake sale, raising US$7.06 billion ($9.93 billion), comes ahead of a planned initial public offering by the Chinese lender, which is expected to take place in Hong Kong next year………………………………………..Full Article: Source

Mumtalakat aluminium plans not price-driven

Posted on 11 December 2015 by VRS  |  Email |Print

Recent developments within Bahrain’s aluminium sector, spurred by investment from sovereign wealth fund Mumtalakat, are not in response to global commodity prices. Mumtalakat confirmed in November that it has entered a 49% joint venture (JV) with Indian aluminium firm, Synergies Castings, which will establish a facility in the Kingdom.
Reports during the month also stated that the wealth fund is keen to enter a similar arrangement with Spanish materials manufacturer, Aleastur. Mahmood Al Kooheji, chief executive officer of Mumtalakat, told Construction Week that while no details about the latter JV can be revealed just yet, he is optimistic about working with Synergies………………………………………..Full Article: Source

Nigeria: Okonjo-Iweala - I Paid Dasuki U.S.$322 Million From Abacha Fund

Posted on 11 December 2015 by VRS  |  Email |Print

Former Minister of Finance Ngozi Okonjo Iweala yesterday said she had paid former National Security Adviser to the President, Col Sambo Dasuki (rtd) $322m (about N63billion) from recovered Abacha funds to finance military operations. She was reacting to online media reports that accused her of illegally diverting the Abacha funds to the office of the former NSA. The money was returned to Nigeria in January 2015.
The statement signed by her Media Adviser, Paul C Nwabuikwu, said the attempt to link the former minister to any misuse of the funds for any purpose other than security was baseless. She explained that based on a request by Dasuki, former president Goodluck Jonathan set up a committee comprising of the former Minister of Justice, the former NSA and herself to determine how best to use both the returned and expected funds for development………………………………………..Full Article: Source

Mining company operating in Mozambique raises capital in Oman

Posted on 11 December 2015 by VRS  |  Email |Print

Kenmare Resources reached an agreement with the “State General Reserve Fund”, the sovereign wealth fund of Oman, for an investment of US$100 million in the company, according to a statement released Wednesday by the Irish company.
The company, which explores deposits of heavy minerals in Mozambique at the Moma mine in Nampula province, plans to raise US$175 million to reduce current financial liabilities of US$330 million. The agreement in principle assumes that Kenmare Resources can raise the remaining US$75 million through a share issue………………………………………..Full Article: Source

Norway oil fund dumps bonds, clearing path to quarterly profit

Posted on 10 December 2015 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund says it has recovered from the losses it suffered in the second and third quarters thanks to a strategy of dumping bonds and buying up stocks and real estate. The fund “has been reducing dramatically” its bond holdings over the past five years, Yngve Slyngstad, its chief executive officer, said.
There is still a “challenging investment environment” ahead of next week’s Federal Reserve decision. But the fund has nonetheless “got everything we lost in the third quarter back in the fourth quarter — so it’s going to be another positive year,” he said………………………………………..Full Article: Source

The Sovereign Wealth Fund Lending Game

Posted on 10 December 2015 by VRS  |  Email |Print

On December 8th, Morgan Stanley tactically announced plans to eliminate 1,200 jobs. 470 of those jobs belonged to bond and commodity traders and salespeople. More bad news. In the third quarter, Morgan Stanley posted a 42% fall in fixed income trading revenue. The investment bank is taking a US$ 150 million charge in its fourth quarter. Morgan Stanley, Credit Suisse and other banks are changing their stripes, shedding banking in favor for wealth management, especially in Asia.
Besides prolonged low interest rates and stricter banking regulations, part of this business trend can be blamed by more asset owners becoming their own banks. The era where large investment banks control and command fixed income markets is slowly fading, as colossal pensions and sovereign investors can ramp up internal capabilities and generate yield from their massive balance sheets. Today, the sovereign wealth fund market is over US$ 7 trillion in assets………………………………………..Full Article: Source

Norway Oil Fund Dumps Bonds, Clearing Path to Quarterly Profit

Posted on 09 December 2015 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund says it has recovered from the losses it suffered in the second and third quarters thanks to a strategy of dumping bonds and buying up stocks and real estate. The fund “has been reducing dramatically” its bond holdings over the past five years, Yngve Slyngstad, its chief executive officer, said in an interview in Paris on Tuesday.
There is still a “challenging investment environment” ahead of next week’s Federal Reserve decision. But the fund has nonetheless “got everything we lost in the third quarter back in the fourth quarter — so it’s going to be another positive year,” he said………………………………………..Full Article: Source

Temasek to sell entire NOL stake for S$2.3b

Posted on 08 December 2015 by VRS  |  Email |Print

Temasek Holdings has agreed to sell its entire 67 per cent stake in Neptune Orient Lines (NOL) to France’s CMA CGM, the world’s third-largest container shipper, which today (Dec 7) announced a S$3.4 billion offer to buy the iconic Singapore shipping firm to expand its presence on trans-Pacific routes.
In its voluntary general offer, CMA CGM will pay S$1.30 a share in cash for the 2.6 billion shares in NOL, 6 per cent above the last closing price on the Singapore Exchange, and a 33 per cent premium to the three-month volume-weighted average price to July 16. The offer comes amid a prolonged downturn in the global shipping market caused by overcapacity, slowing global growth and weak commodity prices, with NOL having posted a net loss of US$96 million for the July-to-September period, its worst in six quarters………………………………………..Full Article: Source

Temasek likely to take discount on NOL for greater economic gain

Posted on 08 December 2015 by VRS  |  Email |Print

Temasek Holdings, the controlling shareholder of Neptune Orient Lines (NOL), is likely to have agreed to sell to France’s CMA CGM at a slight discount in hopes that the deal would bring greater economic benefit to Singapore, a broker report said on Tuesday.
The shipping firm announced a S$3.4 billion takeover offer from CMA CGM that implied a valuation of 0.96 times price-to-book. NOL was trading at about 0.7 times of its book value before July 16, the day news broke that Temasek planned to sell its stake to the French suitor………………………………………..Full Article: Source

Sovereign Wealth Funds pull money from asset managers at record pace

Posted on 08 December 2015 by VRS  |  Email |Print

The drop in commodity prices forced sovereign wealth funds to raid their piggy banks, by dipping into their funds at asset managers at a record pace. The likes of Aberdeen Asset Management, Northern Trust, Franklin Resources and Old Mutual Asset Management were among the firms affected.
Persian Gulf-based SWFs yanked out at least $19bn in funds in the third quarter – a record pace – according to data from eVestment cited by the Financial Times. Given that some fund managers do not disclose their data the real figures might me much higher. According to one estimate, Blackrock, the world’s largest fund management firm, lost a combined $31bn in the second and third quarters………………………………………..Full Article: Source

Cheap Oil Saps Gulf Sovereign Wealth Funds

Posted on 08 December 2015 by VRS  |  Email |Print

According to a report published by the Financial Times on Sunday, the rate at which Gulf sovereign wealth funds have redeemed their money from asset managers has increased to a record high. The primary factor driving this massive pull-out has been declining oil prices that are hurting the economies of Gulf countries and compelling their sovereign wealth funds to redirect cash to support their economies.
According to the data provider eVestment, the total amount of money withdrawn from asset managers amounts to $19 billion in the third quarter, which hurts the managers’ assets under management (AUM) and causes concerns about their short term profitability………………………………………..Full Article: Source

Asset managers see sovereign wealth funds withdraw $19bn

Posted on 07 December 2015 by VRS  |  Email |Print

Persian Gulf sovereign wealth funds have withdrawn money from asset managers at a record rate this year as falling oil prices have left gulf economies scrambling to inject cash into their economies, according to a Financial Times report published on Sunday.
Data provider eVestment said state investors have removed at least $19 billion from funds under management, sparking both concerns that profits for investment managers will suffer, as well as further losses to funds under management, the report said. Countries that depend on the sale of oil and gas, which has seen a price drop of more than 50 percent since June 2014, have been forced to raid their investment portfolios the report said………………………………………..Full Article: Source

Temasek reduces stake in Thermo Fisher, Gilead Science, increases holdings in EMC

Posted on 07 December 2015 by VRS  |  Email |Print

Singapore state fund Temasek Holdings has decreased its stake in New York-listed Thermo Fisher Scientific Inc by 45 per cent, based on a Q3 2015 regulatory filing with the SEC. Thermo Fisher Scientific is a provider of analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics. It’s stock has risen 8.44 per cent since April 28, 2015 and is outperforming the S&P 500 by 10.06 per cent.
Temasek sold 2.37 million shares in the firm as the corporations stock declined 6.53 per cent with the market. Temasek’s original holding in the firm was 2.90 million shares of the industrial machinery and components company at the end of Q3 2015, with its stake valued at $354.53 million. This is a decrease from 5.27 million shares it held at the end of Q2 2015………………………………………..Full Article: Source

SOFAZ reveals revenues from ACG, Shah Deniz projects

Posted on 04 December 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has earned $116.41 billion from 2001 to December 1, 2015 through the development of the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea.
SOFAZ told Trend on December 2 that the Fund gained $6.26 billion in January-November, 2015 within the framework of ACG project. The ACG fields have been active since 1997. Its production first started at the Chirag part of the block. It was followed by Azeri Project; Central Azeri in February 2005, West Azeri in December 2005, and East Azeri in October 2006………………………………………..Full Article: Source

Economists highlight success of SAMA financing strategy

Posted on 04 December 2015 by VRS  |  Email |Print

Bank holdings of Saudi government bonds rose in October by SR4.5 billion, month-on-month, according to the latest edition of the monthly chartbook from Jadwa Investment. In October, the net monthly change in government accounts with Saudi Arabian Monetary Agency (SAMA) came out positive for the first time in 11 months.
“We think this improvement reflects the lower spending by the government compared to earlier in the year,” said the Jadwa economists. The net monthly change to government accounts rose by $4.6 billion. The increase was mainly due to a $5.6 billion net monthly addition to current deposits, the December chartbook added………………………………………..Full Article: Source

Asian Sovereign Funds Try to Deal with Near Zero Interest Rates

Posted on 03 December 2015 by VRS  |  Email |Print

Years have passed since the aftermath of the global financial crisis as central banks still prop up developed economies with quantitative easing (QE) policies. Institutional investors who placed bets on financial assets such as London real estate and U.S. equities, in general, clearly benefitted. The fragile recovery has prevented the Federal Reserve from lifting interest rates sooner.
As stewards of public capital, sovereign funds like Singapore’s GIC Private Limited interpret the widespread adoption of low interest rates as a clear sign the world economy is sick and still needs help. The current interest rate regime has made it challenging for sovereign funds and other long-term investors to find “safe” investments, often forcing them to become lenders of capital………………………………………..Full Article: Source

Over Jan-Nov Azerbaijan’s Oil Fund received $6.56 bn from ACG and Shah Deniz projects

Posted on 03 December 2015 by VRS  |  Email |Print

Revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the sale of profit oil from oilfield block Azeri-Chirag-Gunashli (ACG) and gas from gas condensate field Shah Deniz totaled $6.56 bn for Jan-Nov 2015. The Fund reports that, $6.258 bn of this amount accounted for income from the sale of profit oil from ACG and $302 million from the sale of profit gas from Shah Deniz.
“In general, SOFAZ received about $116.409 bn from sale of profit oil of Azerbaijan from ACG from 2001 to 1 December 2015 and $2.422 bn from sale of gas from Shah Deniz field since 2007,” the Fund informed………………………………………..Full Article: Source

Sovereign Wealth Fund costing Zim

Posted on 03 December 2015 by VRS  |  Email |Print

Government might have violated dictates of standard practice across the world in setting up sovereign wealth funds, research findings by a local economic think tank have revealed. The findings are contained in the Zimbabwe Economic Policy Analysis and Research Unit’s study titled Global Best Practice in Establishing and Managing SWF in Zimbabwe.
According to the findings presented in Harare at a validation workshop, setting up of the SWF was against normal and best practice, as Zimbabwe is battling unsustainable external debts. In the study, ZEPARU said Zimbabwe made a political decision to establish a SWF and enacted a legal instrument in the form of the Sovereign Wealth Fund of Zimbabwe Act 2014 and subsequently set up the fund in 2014……………………………………….Full Article: Source

CVC buys out Carlyle to take the wheel of RAC

Posted on 02 December 2015 by VRS  |  Email |Print

The RAC has a new private equity owner after CVC, the European buyout group, bought out Carlyle’s stake in the roadside recovery company. The investment will be CVC’s first using a separate fund it has raised for holding longer-term stakes in companies — a sign of the future direction of the buyout industry.
GIC, the Singaporean sovereign wealth fund that bought almost half of RAC last year from Carlyle, will retain its stake under the transaction. While Carlyle had been looking to list the RAC before GIC acquired its stake last year, “the opportunity here for us was to monetise our investment, and not to float and wait to realise liquidity over a longer period,” Andrew Burgess, a managing partner at Carlyle, said………………………………………..Full Article: Source

Did Tony Blair pave the way for Manchester City’s £265m deal with Chinese firms?

Posted on 02 December 2015 by VRS  |  Email |Print

Tony Blair took the chairman of Manchester City to meet senior officials in China two years before the country bought a large stake in Britain’s richest football club. The former prime minister introduced Khaldoon Al Mubarak to high-level contacts in 2013, raising the possibility that he laid the groundwork for a £265 million investment deal announced on Tuesday by the club.
Blair, who advises an Abu Dhabi sovereign wealth fund, is estimated to be worth in the region of £60 million earned on the back of lucrative consultancy deals set up since leaving Downing Street in 2007. He has separately lobbied the Treasury on UAE’s behalf as Abu Dhabi United Group, Manchester City’s owner, was attempting to secure a £1 billion property deal in Manchester………………………………………..Full Article: Source

Temasek Holdings Private Ltd Decreased Stake in Thermo Fisher Scientific

Posted on 02 December 2015 by VRS  |  Email |Print

Temasek Holdings Private Ltd decreased its stake in Thermo Fisher Scientific Inc by 45% based on its latest Q3 2015 regulatory filing with the SEC. Temasek Holdings Private Ltd sold 2.37M shares as the company’s stock declined 6.53% with the market.
The institutional investor held 2.90 million shares of the industrial machinery and components company at the end of Q3, valued at $354.53M, down from 5.27 million at the end of the previous reported quarter. Temasek Holdings Private Ltd who had been investing in Thermo Fisher Scientific Inc since many months, could be less bullish the $55.95B market cap company. (Press Release)

Chinese buyers running rule over FTSE 100 InterContinental

Posted on 01 December 2015 by VRS  |  Email |Print

Chinese buyers are running a rule over FTSE 100 hotels group IHG, according to weekend reports, sending its shares higher in early morning trade today.The sovereign wealth fund, China Investment Corp, along with Shanghai Jin Jiang International Hotels Group and airline owner HNA Group are cited as possible suitors.
In opening deals, IHG shares topped the FTSE 100 leader board, up 28p, or 1.1 per cent, to 2,517p. IHG, which owns the Crowne Plaza and Holiday Inn brands, is thought to be exposed after rival Starwood Hotels & Resorts Worldwide recently agreed to a takeover by Marriott………………………………………..Full Article: Source

World’s largest public pension fund posts $64 billion loss

Posted on 01 December 2015 by VRS  |  Email |Print

Japan’s public pension reserve fund, the largest of its kind in the world, posted its biggest quarterly loss since the financial crisis for the quarter through September, dragged down by a global stock selloff. The Government Pension Investment Fund lost ¥7.89 trillion ($64.22 billion) in the three months to September, or 5.59%, bringing the value of its total assets to ¥135.1 trillion. That was the largest percentage-point fall on quarter since 2008.
The release gives a view of how pension funds, endowments and sovereign-wealth funds around the world were hit by a global selloff that erased trillions of dollars in value from financial markets amid concerns about growth in China and expectations for an interest-rate increase in the U.S. Norway’s sovereign-wealth fund, the largest in the world, lost 4.9% in the third quarter, its worst quarter in four years………………………………………..Full Article: Source

Putting more money into SWF is right thing to do, says Orji

Posted on 30 November 2015 by VRS  |  Email |Print

Barely three years after Uche Orji pioneered the Nigerian Sovereign Investment Agency (NSIA), his leadership has turned around the fortunes of the agency. The additional $250 million injected into NSIA by its shareholders, he believes, is a vote of confidence in its management.
The development is that we have a very successful engagement with the National Economic Council which resulted in what we believe is a vote of confidence, as evidenced by the additional contribution that has been made to the Sovereign Wealth Fund of $250 million………………………………………..Full Article: Source

BTG Pactual to sell Brazil hospital stake to GIC, source says

Posted on 30 November 2015 by VRS  |  Email |Print

Grupo BTG Pactual SA has agreed to sell its 12 percent stake in Rede D’Or São Luiz SA, Brazil’s largest hospital chain, to Singapore’s sovereign wealth fund GIC Pte Ltd for almost 2.5 billion reais ($633 million), a source directly involved in the deal said on Sunday.
An announcement could take place early on Monday, said the source, who requested anonymity in order to speak freely about the deal. Executives at the São Paulo-based bank had been negotiating exiting Rede D’Or since August, although the arrest last week of BTG Pactual’s chairman, André Esteves, sped up talks, two other sources said………………………………………..Full Article: Source

Minister: Do you want 1MDB to go bankrupt?

Posted on 30 November 2015 by VRS  |  Email |Print

Damned if it does, and damned if it doesn’t – Communications and Multimedia Minister Salleh Said Keruak mused whether people would rather see 1MDB bankrupt instead. He said some quarters are unhappy that the state investment company borrowed billions of ringgit for its investments and want the debt settled to mitigate its consequences, which the company has been trying to do.
At the same time, however, these people are also unhappy when local companies such as TNB expressed interest in buying 1MDB’s assets, and deemed this to be a “bailout”, he said………………………………………..Full Article: Source

1MDB Aims To Resolve Debt Issue, Dewan Told

Posted on 27 November 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) aims to resolve its debt and cashflow problem without the government’s financial assistance, said Deputy Finance Minister Datuk Johari Abdul Ghani. He said the sovereign wealth fund implemented its strategic rationalisation plan early this year to resolve its RM42 billion debt.
“If all the strategic plans are implemented quickly and without any hurdles, it would reduce 1MDB’s debt interest charges,” Johari said when replying to Rantau Panjang MP Siti Zailah Mohd Yusoff in Parliament ……………………………………….Full Article: Source

banner
February 2016
M T W T F S S
« Jan    
1234567
891011121314
15161718192021
22232425262728
29