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Sovereign Wealth Funds Briefing - Category | Financials more

GIC bids to cash in on hot sector with $900m sell-off

Posted on 26 March 2015 by VRS  |  Email |Print

The Government of Singapore Investment Corporation is undertaking preparations to bring its $900 million Australian industrial and logistics property portfolio to market as it looks to capitalise on the surge in values in the sector. The group is poised to launch a portfolio offering in mid-2015 that could span about 25 properties across Australia, making it the ­nation’s largest direct industrial property portfolio sale.
The scale would be topped only by corporate deals, such as the Goodman Group-led consortium, including the Canadian Pension Plan Investment Board, Dutch pension group APG and China Investment Corporation, buying the $2.5 billion ING Industrial Fund in 2010………………………………………..Full Article: Source

Paladin Energy raises additional $50m from CIC

Posted on 26 March 2015 by VRS  |  Email |Print

Paladin Energy has raised an additional $US50 million by issuing convertible bonds to a unit of sovereign wealth fund China Investment Corporation (CIC). The proceeds will provide the company with additional funding flexibility.
The uranium miner (PDN) previously agreed to issue convertible bonds worth $US100m to CIC, with the funds to be used for the repurchase of existing convertible bonds due in November. The CIC investment will bolster Paladin’s cash position and reduce the need for any additional funding in the medium term, chief executive John Borshoff said in a statement………………………………………..Full Article: Source

Hutch agrees to buy O2, talks to SWFs

Posted on 26 March 2015 by VRS  |  Email |Print

Li Ka-shing-controlled Hutchison Whampoa has agreed to pay up to £10.25 billion ($15.2 billion) for UK mobile phone firm O2. The deal announced on Wednesday with Spanish parent Telefonica will create the UK’s biggest mobile operator, once O2 is merged with Hutchison 3G UK, and marks Hutchison Whampoa’s largest acquisition ever, as Hong Kong’s richest man Li doubles down on investments in Europe.
Hutchison Whampoa has not revealed any details of who the potential investors might be but, according to a source familiar with the matter, the company is in discussions with investors including sovereign wealth funds and private equity firms. There are a series of discussions going on with investors and a preference for sovereign wealth and pension funds. According to reports, Singapore’s GIC, Canadian pension funds, and Qatar’s sovereign wealth fund are among those that are in talks with Hutchison Whampoa………………………………………..Full Article: Source

Hutchison to buy UK mobile network O2 for £10.25 billion, “in talks with GIC on investing in enlarged business”

Posted on 25 March 2015 by VRS  |  Email |Print

Billionaire Li Ka-shing’s Hutchison Whampoa Ltd. agreed to acquire Telefonica’s O2 unit in the U.K. for more than £10.25 billion (S$20.80 billion) to create the country’s biggest wireless provider by customers. The price includes an initial sum of £9.25 billion in cash, with the remainder to be paid when certain financial targets are met, Telefonica said Tuesday.
Hutchison is selling 30 per cent of the enlarged business, a stake it values at as much as £3 billion, people familiar with the matter said. Hutchison is in talks with investors including Singapore’s sovereign wealth fund GIC and Canada Pension Plan Investment Board, and has also held discussions with potential partners including Qatar’s sovereign-wealth fund, they said………………………………………..Full Article: Source

Social security fund reports 139 bln yuan investment yields

Posted on 25 March 2015 by VRS  |  Email |Print

China’s social security fund gained 139 billion yuan (22.7 billion U.S. dollars) from investment in 2014, with an 11.4 percent return on investment, the National Council for Social Security Fund said on Tuesday. The rate of return outperformed the 6.2-percent return rate in 2013.
Founded in 2000, the fund is designed to solve the country’s aging problem as well as being a strategic reserve to support future social security expenditure. By the end of last year, the fund’s managed assets totaled over 1.5 trillion yuan………………………………………..Full Article: Source

No Risk Too Big as Bond Traders Plot Escape From Negative Yields

Posted on 23 March 2015 by VRS  |  Email |Print

In the negative-yield vortex that is the European bond market, investors are discovering just what lengths they’re willing to go to generate returns. Norway’s $870 billion sovereign wealth fund said this month that it added Nigeria and lifted its share of lower-rated company debt to the highest since at least 2006. Allianz SE, Europe’s biggest insurer, is shifting from German bunds to bulk up on mortgages. JPMorgan Asset Management is buying speculative-grade corporate debt to boost returns.
With the European Central Bank’s fight against deflation pushing yields on almost a third of the euro area’s $6.26 trillion of government bonds below zero, even the most risk-averse investors are taking chances on assets and regions that few would have considered just months ago. That’s exposing more clients to the inevitable trade-off that comes with the lure of higher returns: the likelihood of deeper losses………………………………………..Full Article: Source

1MDB: So where did the money go?

Posted on 23 March 2015 by VRS  |  Email |Print

At its annual report launch last week, Bank Negara deputy governor gave a relatively healthy assessment of the country’s economy. So glowing was the report, however, that several members of the audience felt compelled to ask his opinion of 1MDB, the proverbial elephant in the room.
He essentially responded by saying that “sovereigns” (meaning government-backed entities) are not monitored as closely as are “corporates” (meaning the private sector) in their respective issuance of bonds and similar financial instruments. This is presumably because a bond or debt obligation issued by a government authority is usually assumed as low-risk, given that they are backed by the taxing power of the said government………………………………………..Full Article: Source

Singapore fund declares big Dollar General stake

Posted on 20 March 2015 by VRS  |  Email |Print

A major global investment firm doesn’t appear too worried about the prospects for Dollar General following its failed bid for rival Family Dollar and the pending retirement of Chairman and CEO Rick Dreiling and CFO David Tehle. GIC Private, the former Government of Singapore Investment Corp., this week declared a 5.0 percent stake in Goodlettsville-based Dollar General.
The sovereign wealth fund manages more than $100 billion and employs about 1,200 people worldwide. Its stake in Dollar General, which has risen about 7 percent (Ticker: DG) so far this year, is worth about $1.1 billion………………………………………..Full Article: Source

Ghana to use part of $600m sovereign wealth fund to manage shortfall in crude revenue

Posted on 19 March 2015 by VRS  |  Email |Print

The Minister of Finance, Seth Terkper says the country would use part of its sovereign wealth fund, which has accumulated $600 million to manage current economic challenges brought about by the shortfall in projected oil revenue. Speaking at the opening of the Financing the Future Conference in Accra, Ghana, March 17, 2015, he said the stabilisation fund has accumulated $600 million so far.
Mr. Terkper noted that since the country attained its middle income status, access to concessional financing has decreased significantly. “Inflows from our development partners are highly volatile showing a cyclical effect (especially in election year when DPs adopt a wait-and-see approach to aid delivery)………………………………………..Full Article: Source

Orji: SWF Has ‘Good Year’ Tapping Dollar Investments

Posted on 19 March 2015 by VRS  |  Email |Print

Nigeria’s $1.55 billion sovereign wealth fund (SWF) had a “good year” after weighting its investments toward dollar assets, according to Chief Executive Officer, Mr. Uche Orji. “Our currency position was great as we were very long the dollar,” Bloomberg quoted Orji, a former Goldman Sachs Incorporated banker and head of the Nigerian Sovereign Investment Authority to have said in an interview in Geneva.
The Abuja-based wealth fund, set up by Nigerian President Goodluck Jonathan in 2011, gained exposure to the dollar through equities, private equity and fixed-income assets, said Harvard-trained Orji. The fund, which invests revenue generated when the OIL PRICE exceeds that budgeted by the government of Africa’s biggest crude producer, has adjusted to the market slump since June, he added………………………………………..Full Article: Source

Nigeria’s $1.55 bn SWF Has ‘Good Year’ Tapping Into Dollar Investments

Posted on 18 March 2015 by VRS  |  Email |Print

Nigeria’s $1.55 billion sovereign wealth fund had a “good year” after weighting its investments toward dollar assets, according to Chief Executive Officer Uche Orji. “Our currency position was great as we were very long the dollar,” Orji, a former Goldman Sachs Group Inc. banker and head of the Nigerian Sovereign Investment Authority, said in an interview in Geneva on Monday. “It was the only game in town.”
The Abuja-based wealth fund, set up by Nigerian President Goodluck Jonathan in 2011, gained exposure to the dollar through equities, private equity and fixed-income assets, said Harvard-trained Orji. The fund, which invests revenue generated when the oil price exceeds that budgeted by the government of Africa’s biggest crude producer, has adjusted to the market slump since June, he said………………………………………..Full Article: Source

Norwegian sovereign wealth fund achieves 7.6 pct return in 2014

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund returned 7.6 percent, or 544 billion Norwegian kroner (67 billion U.S. dollars), in 2014, with positive results for all its asset classes, but underperformed its benchmarks, the fund said on Friday.
Equity investments returned 7.9 percent, fixed-income investments 6.9 percent, and real estate investments 10.4 percent for the fund, formally known as the Government Pension Fund Global (GPFG) and ranked as the world’s biggest sovereign wealth fund, it said in a statement………………………………………..Full Article: Source

Norway’s sovereign fund doubles in three years

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the biggest in the world, has nearly doubled in three years, the central bank said Friday, which would make all 5.2 million Norwegians millionaires — at least on paper. The fund comprised of stock, bonds and property from around the world returned 7.6 percent in 2014, ending the year at 6.431 billion kroner (745.1 billion euros, $788 billion). At the end of 2011, the fund was worth 3.312 billion kroner.
The fund’s increase of 544 billion kroner from 2013 was attributed in particular to earnings in last year’s bullish stock markets as more than 60 percent of the fund’s portfolio is in stocks. To pay for future expenses Norway traditionally puts aside all of the huge revenue from its public oil company and is authorised to use only up to 4 percent to balance the country’s budget………………………………………..Full Article: Source

Norway’s oil fund to sell European bonds, buy real estate in 2015

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund will continue to sell down its European government debt portfolio and may spend all of its new cash inflow in 2015 on real estate investments, Chief Executive Yngve Slyngstad said on Friday.
“We are not enthusiastic about investing in European government bonds,” Slyngstad told Reuters on the sidelines of a press conference. “This year it may we be that we are using more than the inflow in real estate investment, so as such, yes, we’ll be selling other assets… European government bonds.”……………………………………….Full Article: Source

Norway’s $860 bln oil fund underperforms in 2014 on big Europe exposure

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund, the world’s biggest, underperformed its benchmarks in 2014 because of its big exposure to Europe and the relatively short duration of its fixed income portfolio, it said on Friday.
The fund, one of the world’s biggest investors, returned 7.9 percent last year but this was 0.8 percentage point below its benchmark with Europe’s poor growth and rising geopolitical tensions weighing on returns, the fund said. “This (weaker return) can be explained by a higher weight of European stocks and the shorter duration of the fund’s fixed income investments compared with the benchmark,” the fund said in a statement………………………………………..Full Article: Source

Norway’s Sovereign Wealth Fund reducing investments in Turkish bond market

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s Sovereign Wealth Fund, the largest in the world at USD 890 billion, has announced that it will be reducing its investments in the Turkish bond market, resulting in a TRY 77 million decline in bonds. Despite Turkey having a coefficient of 1 according to the Barclays Capital Aggregate Bond Index, the Sovereign Wealth Fund noted that it had reduced Turkey’s position to 0.5. This means its position on Turkish Lira bonds will be reduced by exactly half.
AK Investment’s Gökhan Şen told BusinessH/T that he calculates this decision will result in a TRY 77 million decline in Turkish Lira bonds. Foreigners have reduced their positions on Turkish bonds by USD 1.2 billion since the start of the new year………………………………………..Full Article: Source

GIC part of PGGM-led consortium in $3.2b LeasePlan deal

Posted on 13 March 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC is part of the consortium led by PGGM, the Dutch public sector pension fund, that is in talks to buy the world’s largest vehicle-leasing business from Volkswagen in a deal worth estimated around €3 billion ($3.2 billion), Sky News said in report.
The report said that the funds have been in talks with Volkswagen ‘for several weeks now’ to acquire the Netherlands-based LeasePlan, and added the consortium also included Abu Dhabi Investment Authority (ADIA) and London-based TDR Capital. Earlier this week, LeasePlan announced that it was in talks with potential investors for diluting its stake, without disclosing additional details………………………………………..Full Article: Source

Timor considers buying Sunrise

Posted on 13 March 2015 by VRS  |  Email |Print

Timor-Leste Petroleum and Mineral Resources Minister Alfredo Pires said its national oil company, Timor Gap, could be used to buy out Woodside or other Sunrise joint venture partners such as Royal Dutch Shell or ConocoPhillips to end the development stalemate.
Pires also said Timor-Leste’s $18 billion sovereign wealth fund may be interested in funding the 150km pipeline from the Sunrise gas-condensate fields to an onshore LNG plant. Pires said updated studies commissioned by the government had found the cost of the pipeline would be just $800 million, compared with a $1.8 billion estimate for the 450km link to Darwin………………………………………..Full Article: Source

Russia’s well for corporate bailouts appears to be running dry

Posted on 12 March 2015 by VRS  |  Email |Print

Facing Western sanctions and low oil prices, Russian companies are lining up for subsidies from the government. But the demand for bailouts is quickly outstripping the supply of money, raising the prospect of an economic crisis here if the funds run out. “Quite a large number of companies have access to no other source of funding,” said Vladimir Tikhomirov, the chief economist at BCS Financial Group.
But the sovereign wealth fund, the National Wellbeing Fund, might not have enough to cover their needs. The fund had $75 billion in reserves at the beginning of the month. About a quarter of the money is held in illiquid assets, so it can’t be parceled out for the bailout program. Some of the money is also allocated for infrastructure. In all, the illiquid assets, the infrastructure works and bailout requests amount to at least $82 billion………………………………………..Full Article: Source

Global finance faces $9 trillion stress test as dollar soars

Posted on 12 March 2015 by VRS  |  Email |Print

The world is more dollarized today that any time in history, and therefore at the mercy of the US Federal Reserve as rates rise. You would not think it possible that an Asian sovereign wealth fund could run into trouble too, but Malaysia’s 1MDM state fund came close to default earlier this year after borrowing too heavily to buy energy projects and speculate on land. Its bonds are currently trading at junk level.
It became a piggy bank for the political elites and now faces a corruption probe, a recurring pattern in the BRICS and mini-BRICS as the liquidity tide recedes and exposes the underlying rot………………………………………..Full Article: Source

Oman, Brunei sovereign funds partner in aircraft leasing

Posted on 10 March 2015 by VRS  |  Email |Print

Sovereign wealth funds from Oman and Brunei are partnering to establish an aircraft leasing firm with capital of 200 million rials ($520 million), the Omani fund said on Monday. Oman’s State General Reserve Fund (SGRF) is setting up the firm with Oman Brunei Investment Co (OBIC), which is itself a 50-50 venture between SGRF and the Brunei Investment Agency.
The new venture, Oman Brunei Aviation Leasing Co (OBALC), will invest in and manage the purchase and lease of commercial aircraft operated by airlines in the Middle East and globally. “Aircraft leasing represents an attractive investment product and in due course we will be offering institutional investors the opportunity to participate in the sector through an aviation leasing fund,” said Abeer Al Abduwani, chief executive of OBIC………………………………………..Full Article: Source

Russia’s Well for Corporate Bailouts Appears to Be Running Dry

Posted on 10 March 2015 by VRS  |  Email |Print

With the economy flailing, the Russian government set up a corporate bailout program last year, tapping one of the country’s sovereign wealth funds. Almost immediately, companies started applying. The state-owned oil giant Rosneft has requested $21.3 billion. Gazprom, the dominant natural gas player, has asked for $3.2 billion for a subsidiary.
The list goes on: Russia’s railroad monopoly, which is also the largest employer in the country; an owner of Moscow’s airports; a venture capital firm investing in nanotechnology; and a company exporting Russian nuclear power plants. But the sovereign wealth fund, the National Wellbeing Fund, might not have enough to cover their needs. The fund had roughly $75 billion in reserves at the beginning of the month………………………………………..Full Article: Source

IMF assumes Ukraine to get $15.4 billion from creditor talks

Posted on 10 March 2015 by VRS  |  Email |Print

The International Monetary Fund’s bailout programme for Ukraine assumes Kiev will be able to get $15.4 billion from talks with its creditors, according to four sources familiar with the IMF’s documents. The assumption is necessary to ensure Ukraine’s sovereign debt can fall to 70 percent of gross domestic product by 2020, a level the IMF would deem sustainable, according to three people.
Under its rules, the IMF cannot lend to countries unless it believes they will be able to pay back the money eventually. Targeting a particular level for debt renegotiation, considering debt talks have not yet begun, points to the uncertainty surrounding the $40 billion international rescue package for Ukraine announced last month………………………………………..Full Article: Source

Bain Said to Seek Up to $3 Billion for Asia Buyout Fund

Posted on 10 March 2015 by VRS  |  Email |Print

Bain Capital, the firm co-founded by former U.S. presidential candidate Mitt Romney, plans to seek $2.5 billion to $3 billion for its third Asia fund after a surge in the volume of buyout deals in the region last year, three people with knowledge of the matter said. Global private equity firms have been raising billions of dollars to devote to Asia as funds amassed from 2005 and 2008 reach the end of their investment cycles.
RRJ Capital, run by former executives of Goldman Sachs Group Inc. and Temasek Holdings, is seeking as much as $4.5 billion for a pool that will mostly invest in China, a person briefed on the matter said this month. Baring Private Equity Asia said in February it raised almost $4 billion for its sixth Asia-focused fund………………………………………..Full Article: Source

Priaro: Albertans must ‘look in the mirror,’

Posted on 09 March 2015 by VRS  |  Email |Print

In 2014, the government reported the Heritage Savings Trust Fund was worth $17.5 billion on March 31, 2014 and had achieved a 10-year annual average return of 7.5 per cent. However, in 1987, the value of the fund was $12.7 billion. In the intervening 27 years of Progressive Conservative governments under Don Getty, Ralph Klein, Ed Stelmach, Alison Redford and Dave Hancock, the fund grew by an average of only 1.4 per cent annually.
Adjusting for inflation averaging 3.1 per cent annually over the same period, the fund actually shrank in real terms by 33 per cent since 1987. The fund was established by Peter Lougheed in 1976 with an initial contribution of $1.5 billion from general revenue. Thirty per cent of Alberta’s resource revenue accrued to the fund from 1976 to 1982………………………………………..Full Article: Source

Malaysia’s 1MDB to be dismantled under debt plan: sources

Posted on 06 March 2015 by VRS  |  Email |Print

Malaysia’s indebted and controversy-ridden state investor 1MDB will be left as a skeletal structure and possibly dissolved under a debt repayment plan in which most of its assets will be sold, sources with direct knowledge of the matter said.
The power and property fund, a pet project of Prime Minister Najib Razak with assets worth US$14 billion, was hit by losses last year and nearly defaulted on a loan payment. The near-miss drove down the ringgit currency and Malaysian government bonds and prompted calls from opposition leaders to make the fund’s accounts more transparent………………………………………..Full Article: Source

HKBN IPO priced at top of range as GIC, CVC, Carlyle raise nearly S$1b

Posted on 06 March 2015 by VRS  |  Email |Print

US private equity firm CVC Capital Partners, Singapore’s sovereign wealth fund GIC and a unit of Carlyle Group raised a combined HK$5.5 billion (S$966 million) after Hong Kong’s second-largest broadband Internet provider HKBN priced its initial public offering at the top end of the marketed range, people familiar with the deal said today (March 5).
The IPO was priced at HK$9 per share, at the top of the HK$8 to HK$9 indicated range, said the sources, who couldn’t be named because details of the sale of 645 million shares weren’t yet public. Two other investors raised about HK$310 million in the listing, from which HKBN - previously known as Hong Kong Broadband Network - itself received no funds. No new shares were offered in the sale, worth HK$5.8 billion in total………………………………………..Full Article: Source

CVC, GIC, Carlyle raise $750 mln after HKBN prices IPO at top of range

Posted on 05 March 2015 by VRS  |  Email |Print

Private equity firm CVC Capital Partners, a unit of Carlyle Group LP and Singapore’s sovereign wealth fund GIC raised a combined $750 million after Hong Kong’s second-largest broadband Internet provider, HKBN, priced its initial public offering at the top of expectations, IFR reported on Thursday citing people familiar with the deal.
The IPO was priced at HK$9 per share, at the top of the HK$8 to HK$9 marketing range, according to IFR, a Thomson Reuters publication. CVC, GIC and Carlyle’s AlpInvest Partners were among HKBN shareholders offering 645 million existing shares in the IPO. HKBN, previously known as Hong Kong Broadband Network, raised no funds from the offering………………………………………..Full Article: Source

Russian state’s rainy day fund drops as finances squeezed

Posted on 04 March 2015 by VRS  |  Email |Print

The Russian government’s rainy-day fund has shrunk by almost 10 percent in dollar terms in February after the state sought to fill a hole in its budget, where revenues have suffered due to low oil prices. The Reserve Fund is used to support Russian public finances in time of low oil and gas prices and is held in dollars, euros and British pounds. It fell to $77.05 billion from $85.09 billion in January, the finance ministry said Tuesday. The fall in ruble terms was sharper, almost 20 percent, since the ruble gained ground against the dollar and other currencies last month.
The finance ministry said the government had used 500 billion rubles ($8 billion) from the fund to supplement a drop in budget revenue. That followed a separate withdrawal of 50.48 billion rubles in January. Russia’s other main sovereign fund, the National Wealth Fund, rose by $900 million in February to $74.92 billion, the ministry said Tuesday, although its value in ruble terms fell……………………………………….Full Article: Source

Russian Wealth Fund Falls Most Since 2010 as Deficit Widens

Posted on 04 March 2015 by VRS  |  Email |Print

Russia’s Reserve Fund dropped the most in more than four years last month as the government unsealed one of the country’s two sovereign wealth funds to cover a widening budget deficit.
The holdings shrank $8 billion to $77.1 billion, the lowest since December 2012, as the Finance Ministry used its maximum yearly allowance of 500 billion rubles ($8 billion) for budget financing, according to a Tuesday statement by the ministry in Moscow. The fund disposed of securities equal to $3.6 billion, 3.1 billion euros ($3.5 billion) and 510 million pounds ($769 million)……………………………………….Full Article: Source

Oil Price Slump: NSIA Rules Out Withdrawal from SWF

Posted on 04 March 2015 by VRS  |  Email |Print

The federal government is unlikely to make withdrawals from Nigeria’s Sovereign Wealth Fund (SWF), even as the price of crude oil declines. The Nigeria Sovereign Investment Authority (NSIA), set up in 2012, isn’t yet large enough to make withdrawals worthwhile, the organisation’s Managing Director/Chief Executive, Mr. Uche Orji, said in an interview with Bloomberg Television at the Global Financial Markets Forum in Abu Dhabi. Withdrawals will be an option in future years once the fund is larger, Orji said.
The Nigerian government had proposed cutting the oil-price benchmark to $52 a barrel from $65 a barrel suggested in December as a result of the drop in oil prices. The plan, supported by the Nigerian senate, must be approved by lawmakers in the House of Representatives. Nigeria relies on oil exports for more than 90 per cent of foreign exchange income and 70 per cent of government revenue. Revenue raised from oil sold for more than the budgeted benchmark is saved in the Excess Crude Account……………………………………….Full Article: Source

Middle East and Africa private wealth set to hit $7.2t by 2018

Posted on 04 March 2015 by VRS  |  Email |Print

With private wealth in the Middle East and Africa projected to reach $7.2 trillion by 2018, Dubai International Financial Centre is well positioned with its laws and regulations modified specifically to help firms tap this opportunity and bring world-class wealth management competence into the region, Abdul Aziz Al Ghurair, vice-chairman of the Dubai International Financial Centre, or DIFC, said on Tuesday.
“The Middle East and North Africa is home to nine of the world’s largest sovereign wealth funds with assets of approximately $2 trillion. Other institutional wealth in the region includes GCC pension funds, whose assets are set to grow 8.8 per cent a year to reach $5 trillion by 2020.”………………………………………Full Article: Source

MAS turnaround takes off with Khazanah’s $603m boost

Posted on 04 March 2015 by VRS  |  Email |Print

Sovereign wealth fund Khazanah Nasional said yesterday it will kick-start the immensely challenging task of turning around flag carrier Malaysia Airlines (MAS) with a RM1.6 billion (S$603 million) injection and cost savings through contract reviews.
MAS has been badly hurt financially after the disappearance of Flight MH370 on March 8 last year, and the shooting down of MH17 over Ukraine four months later. Both disasters prompted some travellers to avoid MAS. Its last reported quarter (July to September last year) showed planes were 11.3 per cent less full compared to the number a year ago……………………………………….Full Article: Source

Future Fund seeks global tax consultant

Posted on 03 March 2015 by VRS  |  Email |Print

The $110 billion Future Fund is in the market for a global tax consultant to help the sovereign wealth fund put its tax affairs in order following the Lux Leaks scandal that erupted last year. The tender for the Future Fund’s new Melbourne tax service comes just months after the group was revealed to have used tax haven Luxembourg and entities in the Cayman Islands to minimise taxes.
Future Fund chief financial officer Paul Mann brushed off suggestions the tender process was linked to the scandal. “The global tax consultant service is being tendered because the original term for the contract has expired,” Mr Mann said………………………………………..Full Article: Source

Nigerian Sovereign Fund Doesn’t Expect State to Tap It for Funds

Posted on 03 March 2015 by VRS  |  Email |Print

The government of Nigeria is unlikely to make withdrawals from the sovereign wealth fund in Africa’s largest oil producer, even as the price of crude declines. The Nigeria Sovereign Investment Authority, set up in 2012, isn’t yet large enough to make withdrawals worthwhile, Uche Orji, managing director and chief executive officer, said in an interview with Bloomberg Television at the Global Financial Markets Forum in Abu Dhabi.
Withdrawals will be an option in future years once the fund is larger, he said. The Nigerian government has proposed cutting the oil-price benchmark to $52 a barrel from $65 a barrel suggested in December as a result of slumping prices. The plan, supported by the Nigerian senate, must be approved by lawmakers in the House of Representatives………………………………………..Full Article: Source

Exactly where sovereign wealth funds are stashing their cash

Posted on 03 March 2015 by VRS  |  Email |Print

The world’s premier state-owned investment decision money have been investing profits from oil and fuel reserves to economical markets to aid diversify absent from their reliance on commodities.
True estate has turn into a beloved among the some of the world’s biggest sovereign prosperity funds these as Norway’s Government Pension Fund World-wide (GPFG), which now has close to $893 billion under administration in accordance to Sovereign Wealth Fund Institute and the Qatar Investment Authority, but resources are now progressively eyeing choice assets to supply new revenue streams and wide range for their portfolios………………………………………..Full Article: Source

Temasek faces new normal as Singapore eyes funds

Posted on 02 March 2015 by VRS  |  Email |Print

Temasek Holdings’s long-term investing strategy will have to include more short-term and liquid assets after the Government opened up the option to draw more funds from the state-owned investment company.
Singapore’s Government is “now ready” to include part of Temasek’s capital gains in its annual budget as the country spends more on its subway network, airport, education and social security to support an ageing population, Finance Minister Tharman Shanmugaratnam said in his Budget Statement on Feb 23. ……………………………………….Full Article: Source

NZ Super Fund challenges European senior bank debt precedent

Posted on 02 March 2015 by VRS  |  Email |Print

The New Zealand Superannuation Fund is concerned its loss of US$150 million in the collapse of Portugal’s Banco Espirito Santo has set a precedent endangering protections for holders of senior bank debt under Europe’s new bank resolution laws.
The sovereign wealth fund with NZ$28 billion under management launched legal action last week to recover funds it lent to BES in July last year through a vehicle called Oak Finance. The deal was arranged by Goldman Sachs and protected by credit default swap insurance………………………………………..Full Article: Source

Of Najib, 1MDB & the DISAPPEARANCE of Malaysia’s public funds

Posted on 02 March 2015 by VRS  |  Email |Print

The statements given by Prime Minister Datuk Seri Najib Razak and 1Malaysia Development Berhad (1MDB) chairman Tan Sri Lodin Wok Kamaruddin pertaining to the funding and the status of the 1MDB, and whether it involves public funds or not, are rather confusing for the people to grasp.
While Najib stated that, “I wish to stress here that 1MDB is a strategic investment fund owned by the Malaysian government and I will not allow anyone to use or misappropriate public funds for personal interest or gain,”… in the official 1MDB website Lodin wrote,”… whereas a sovereign wealth fund is directly funded by the government and invests on its behalf, 1MDB raises and invests its own capital………………………………………..Full Article: Source

Mumtalakat ‘has no plans to sell assets’

Posted on 02 March 2015 by VRS  |  Email |Print

Mumtalakat does not plan to sell off any assets this year and would pursue business projects as usual, its top official has said. The sovereign wealth fund’s chief executive Mahmood Al Kooheji said this during a keynote interview on the fund’s priorities for the year ahead and the importance of transparency and corporate governance.
Mumtalakat invests in strategic non-oil Bahraini enterprises and manages around $10 billion of assets. The interview was held at 4th GCC Financial Forum, co-hosted by the Economic Development Board, with more than 500 industry officials, financiers, energy professionals and analysts discussing the impact of decline in oil prices on Bahrain’s real economy, the kingdom’s hydrocarbons strategy and future dynamics for the financial sector………………………………………..Full Article: Source

Malaysia sovereign fund plans $279 mln “social impact” sukuk

Posted on 27 February 2015 by VRS  |  Email |Print

Malaysia’s $40 billion sovereign wealth fund Khazanah Nasional plans to issue a sukuk worth up to one billion ringgit ($279.17 million) to help fund schools, its managing director said on Thursday.
Speaking to Reuters on the sidelines of an Islamic finance event in London, the fund’s head Azman Mokhtar said the planned “social impact sukuk” is awaiting regulatory approval from Malaysian financial regulators. The move is aimed at opening funding for education to a broad pool of investors rather than financing it out of its own reserves, he added………………………………………..Full Article: Source

PAC wants AG to audit 1MDB immediately

Posted on 27 February 2015 by VRS  |  Email |Print

The Public Accounts Committee (PAC) wants the Auditor General’s Department to immediately carry out an audit of the government-owned 1MDB’s deals before it calls up the company.
PAC chairman Datuk Nur Jazlan Mohamed said the immediate audit should be of the source of the RM2 billion used to settle 1MDB’s loans with local banks, the RM3 billion injection of government funds into the debt-laden company, its dealings with PetroSaudi International (PSI), and whether the money parked in Cayman Islands has been brought back………………………………………..Full Article: Source

Samruk-Kazyna limits forex transactions of its subsidiaries

Posted on 26 February 2015 by VRS  |  Email |Print

Samruk-Kazyna National Wealth Fund of Kazakhstan has instructed its subsidiaries to abstain from making unnecessary foreign currency transactions, Tengrinews reports citing the head of the Fund Umirzak Shukeyev as saying at the press-briefing in the Central Communication Service’s headquarters on February 20.
“To support the Kazakh national currency we have introduced a special corporate standard that prohibits all of our subsidiaries from making unnecessary foreign exchange transactions. Unless there is a specific business need for such a transaction they will have to justify it to us that they really need the foreign currency,” he said………………………………………..Full Article: Source

Russian Direct Investment Fund Consortium to Acquire Shares in Vladivostok International Airport

Posted on 26 February 2015 by VRS  |  Email |Print

The consortium comprising the Russian Direct Investment Fund (RDIF), a $10 billion fund established to make equity investments into Russian economy, Changi Airports International (CAI), a wholly-owned subsidiary of the world’s leading airport operator Changi Airport Group, and Basic Element, one of Russia’s diversified industrial groups, has been announced as the winner of the tender to acquire shares in Vladivostok International Airport in Russia’s Far East. Each member will hold an equal share in the consortium.
The consortium’s bid was recognised as the best based on the strength of the technical, legal and financial components in the submission. The transaction will be closed after regulatory approvals are received. Vladivostok International Airport is strategically important for the development of the air transportation system in the region due to its geographical location - the crossing of two air routes between the Russian Far East and the Asia Pacific region. (Press Release)

Kazakhstan’s sovereign wealth fund to optimize its costs

Posted on 24 February 2015 by VRS  |  Email |Print

Kazakhstan’s Sovereign Wealth Fund Samruk-Kazyna in 2014 commissioned 13 projects worth US $2.9 billion and created more than 5.6 thousand temporary and 1.2 thousand permanent jobs, the Fund’s CEO Umirzak Shukeyev said last Friday while reporting on measures to implement the head of state’s instructions and Nurly Zhol program, and on the Fund’s financial results for the past year.
Samruk-Kazyna group of companies closed the year 2014 fairly well, Shukeyev said. According to preliminary data, the net income of the group was estimated at 458 billion tenge, the Fund said in a press release. The Fund has developed a set of measures in line with the President’s instructions, including optimization of its costs by 337 billion tenge or 7%………………………………………..Full Article: Source

SOFAZ assets rose to $ 37.42 bln in 2014

Posted on 24 February 2015 by VRS  |  Email |Print

For current year estimated decline 3 billion in the wake value crude (Il Sole 24 Ore Thomson Financial) - Baku, Feb. 23 - Sofaz, the Sovereign Fund of Azerbaijan closes 2014 with assets worth a total of 37.42 billion dollars , up from 3.42 billion on an annual basis. During 2014, revenues primarily from royalties until amounted to 15.729 billion dollars.
The outputs in favor of the state budget were approximately 12.9 billion in addition to funding for other special initiatives: scholarships for deserving students abroad, support for refugees from the region of Nagorno Karabakh occupied by Armenia, financing Kars railway line Baku Tbilis connection with Turkey, the company ‘management of pipelines and refinery Tap and Tanap Star-Petkim in Turkey……………………………………….Full Article: Source

Manat öldu: Devaluation in favour of Oil Fund

Posted on 24 February 2015 by VRS  |  Email |Print

Devaluation of manat on February 21 has identified the only player who won as a result of the Central Bank’s decision: the State Oil Fund of Azerbaijan (SOFAZ). In spite of foreign estimates manat devaluation didn’t cause total panic in Baku. In general, people treated this situation from philosophical point of view and even tried to joke. Thus, for example, today a man and his wife exchanged the following words while admiring fresh frosty air in the morning: “Nə “клёво”? Manat öldu” (What’s good in it? Manat has died).
Manat has died. It can rise from dead but there’s a direct beneficiary of its death. Such beneficiary is SOFAZ, which receives revenue in US dollars and transfers manats to the state budget………………………………………..Full Article: Source

Projected earnings of Temasek Holdings to be part of Govt’s Net Investment Returns Framework

Posted on 24 February 2015 by VRS  |  Email |Print

With government spending set to increase, Finance Minister Tharman Shanmugaratnam said that it is necessary to take steps to strengthen future revenues, with the first step being to include the projected earnings of Temasek Holdings in the Net Investment Returns (NIR) framework. Under this framework, the Government is allowed to spend up to 50 per cent of the expected long-term real returns on net assets managed by the investment entities of Monetary Authority of Singapore and GIC.
The portolios of GIC and MAS are already part of the NIR framework. The inclusion of Temasek Holdings was deferred as there was no established methodology for projecting the long term expected real returns on its portfolio, as well as its still evolving investment strategy, said Mr Tharman, who delivered the Budget Statement in Parliament today (Feb 23)………………………………………..Full Article: Source

Temasek to contribute more to govt coffers

Posted on 24 February 2015 by VRS  |  Email |Print

In a surprise move, Temasek Holdings from 2017 will be contributing more to the government’s coffers as it gets included in the Net Investment Returns (NIR) framework. It has been contributing about S$2 billion of dividends on average in the last five years. Singapore will include the total expected returns from Temasek Holdings in its NIR framework, said Tharman Shanmugaratnam, Deputy Prime Minister and Finance Minister, on Monday.
The current NIR framework - implemented in 2009 - permitted the government to spend up to 50 per cent of the expected long-term real returns on its net assets managed by GIC, and the Monetary Authority of Singapore (MAS)………………………………………..Full Article: Source

GIC among shareholders in HKBN IPO that could raise S$1b

Posted on 24 February 2015 by VRS  |  Email |Print

HKBN, Hong Kong’s second-largest broadband Internet provider, will launch its initial public offering today, with shareholders including GIC looking to raise up to HK$5.8 billion (S$1 billion), Thomson Reuters’ IFR reported. At the top of its indicative range, the IPO would be the second-largest in the Asia-Pacific region this year, after the US$1.13 billion (S$1.5 billion) raised by Jasmine International’s Internet infrastructure fund in Bangkok earlier this month.
GIC, private equity firm CVC Capital Partners, HKBN’s management and other shareholders will offer 645 million existing shares in an indicative range of HK$8 to HK$9 each, IFR said, citing sources familiar with the plans. HKBN, previously known as Hong Kong Broadband Network, will raise no funds from the IPO, with all proceeds going to GIC and other selling shareholders………………………………………..Full Article: Source

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