Mon, Aug 3, 2015
A A A
Welcome asarmad
RSS

Sovereign Wealth Funds Briefing - Category | Financials more

Malaysia fund’s $4.5 bln rescue may weigh on Abu Dhabi’s IPIC

Posted on 03 July 2015 by VRS  |  Email |Print

The $4.5 billion rescue of a struggling Malaysian state fund is good news for the government in Kuala Lumpur but will load Abu Dhabi’s International Petroleum Investment Co with extra debt that may worry investors in its bonds.
Last month IPIC, an investment company owned by Abu Dhabi’s government, came to the aid of Malaysia’s loss-making 1MDB, whose poor record and $11.6 billion of debt are a source of political pressure on Prime Minister Najib Razak. IPIC agreed to provide 1MDB with $1 billion in cash, allowing the Malaysian fund to repay a $975 million loan to a global banking syndicate………………………………………..Full Article: Source

Dubai sovereign wealth fund sees profits surge 62%

Posted on 03 July 2015 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD), the emirate’s sovereign wealth fund has reported increased profits of $7.75 billion (AED28.5 billion) for 2014, up by 62 percent on the previous year. In a statement, ICD, which has stakes or holdings in companies such as Emaar, Emirates Airline, Emirates NBD and ENOC, said the positive results were driven by the group’s core business, an exceptional gain arising from the incorporation of Dubai Aluminium (Dubal) into the newly formed Emirates Global Aluminium (EGA) and by the partial disposal of the group’s equity investment in the London Stock Exchange.
ICD’s revenues increased by 11 percent, up from $48.5 billion to $54 billion, which is said was driven by the group’s subsidiaries operated in transportation, oil and gas and banking and financial services sectors………………………………………..Full Article: Source

Fitch affirms National Company KazMunayGas at ‘BBB’

Posted on 03 July 2015 by VRS  |  Email |Print

Fitch Ratings has affirmed JSC National Company KazMunayGas’s (NC KMG or the group) Long-term foreign currency Issuer Default Rating (IDR) at ‘BBB’ with a Stable Outlook. Fitch has also affirmed KazMunaiGaz Finance Sub B.V.’s foreign currency senior unsecured rating at ‘BBB’. Wholly state-owned NC KMG is a holding company for Kazakhstan’s (BBB+/Stable) interests in the oil & gas sector, including upstream, transportation and refining operations. Its ratings are notched down one notch from the sovereign’s.
The rating approach is based on our expectation that the state will provide sufficient and timely tangible support to the group when needed. We view the proposed purchase of part of NC KMG’s stake in Kashagan by its parent, JSC Sovereign Wealth Fund Samruk-Kazyna (BBB+/Stable), as a clear reflection of this support, Fitch said………………………………………..Full Article: Source

KazMunaiGas seeks to sell 50 pct of Kashagan stake to SWF

Posted on 02 July 2015 by VRS  |  Email |Print

Kazakh state oil company KazMunaiGas (KMG) said on Wednesday it plans to sell 50 percent of its stake in the Kashagan oilfield to the sovereign wealth fund Samruk-Kazyna and use the proceeds to reduce its debt.
KMG holds 16.81 percent in an international consortium which develops Kashagan in the Caspian Sea, the world’s biggest oil find in decades. The company expects to raise about $4.7 billion through the sale, KMG said in a statement on the Kazakhstan Stock Exchange. The sale is expected to close before the end of this year, it said………………………………………..Full Article: Source

Dubai sovereign wealth fund sees profits surge 62%

Posted on 02 July 2015 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD), the emirate’s sovereign wealth fund has reported increased profits of $7.75 billion (AED28.5 billion) for 2014, up by 62 percent on the previous year.
In a statement, ICD, which has stakes or holdings in companies such as Emaar, Emirates Airline, Emirates NBD and ENOC, said the positive results were driven by the group’s core business, an exceptional gain arising from the incorporation of Dubai Aluminium (Dubal) into the newly formed Emirates Global Aluminium (EGA) and by the partial disposal of the group’s equity investment in the London Stock Exchange………………………………………..Full Article: Source

SAMA’s net foreign assets fall 1 to SR2.521 trillion

Posted on 02 July 2015 by VRS  |  Email |Print

Net foreign assets at Saudi Arabian Monetary Agency fell to SR2.521 trillion (672.2 billion) in May down by 6.6 billion or 1.0 percent from the previous month as the kingdom continued to draw down reserves to cover a budget gap caused by cheap oil. Assets dropped by 8.1 percent from a year earlier to their lowest level since April 2013 central bank data showed.
The central bank serves as the country’s sovereign wealth fund storing its earnings from oil exports. Assets’ year-on-year drop is partly due to the strong US dollar which has cut the value of the portion denominated in non-dollar currencies but a major part is due to a fiscal drawdown analysts say………………………………………..Full Article: Source

Kuwait parliament approves budget with $27 billion deficit

Posted on 02 July 2015 by VRS  |  Email |Print

Kuwait’s parliament on Wednesday approved a state budget for the current fiscal year that envisages a budget deficit of 8.18 billion dinars ($27.0 billion) - nearly half total spending - because of low oil prices.
The budget for the year that began on April 1 features spending of 19.17 billion dinars and revenues of 12.2 billion dinars, assuming an average oil price of $45 a barrel during the year. The deficit of 8.18 billion dinars would be reached after the transfer of 10 percent of the revenues to the Future Generations Fund, part of Kuwait’s sovereign wealth fund………………………………………..Full Article: Source

SOFAZ reveals revenues from ACG, Shah Deniz fields

Posted on 01 July 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has earned $113.33 billion from 2001 to June 1, 2015 by developing the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea.
“The fund gained $3.071 billion in January-May, 2015 within the framework of ACG project, including $549 million in May,” SOFAZ told Trend on June 30. 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

Investment Corporation of Dubai profit up 63% on core business growth

Posted on 01 July 2015 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD) posted a 63 per cent profit increase last year amid growth in its core businesses, a gain from the transfer of Dubai Aluminium’s assets to Emirates Global Aluminium and a partial sale of its equity in the London Stock Exchange.
ICD’s profit attributable to equity holders rose to Dh23.8 billion last year from Dh14.6bn a year earlier, the sovereign wealth fund said in a statement. Revenues edged up last year 11 per cent to Dh198.4bn from Dh178.3bn a year earlier as the fund’s transportation, oil and gas, banking and financial services units posted strong performance………………………………………..Full Article: Source

China to transfer $322 billion in pension funds to NSSF

Posted on 30 June 2015 by VRS  |  Email |Print

The Chinese government will reportedly centralise management of about 2 trillion RMB (US$322 billion) in local authority retirement assets under the supplementary pension supervisory body, the National Council for Social Security Fund (NSSF). Reuters cited industry sources as saying that China’s State Council would transfer local pension assets to the NSSF.
The move is part of a broader initiative to strengthen China’s pension system in order to meet demographic challenges posed by a shrinking working-age population. Under the current retirement system, 90% of local authority pension funds are placed in bank deposits with low single-digit returns. In comparison, the NSSF is allowed to invest up to 40% of its AUM into equities………………………………………..Full Article: Source

NZ super loses direct head, wins performance kudos

Posted on 30 June 2015 by VRS  |  Email |Print

The New Zealand Superannuation Fund (NZS) is searching for a new head of NZ direct investments following the resignation of incumbent, Michael Gleissner, last week. Gleissner, who joined NZS two years ago, “is leaving to focus on family commitments and consulting activities”, a spokesperson for the almost $30 billion fund said.
Until a replacement is found, Matt Whineray, NZS chief investment officer, would assume Gleissner’s responsibilities, the spokesperson said. The NZ Direct team manages NZS investments in Kaingaroa Timberlands, rural land, Datacom and Metlifecare………………………………………..Full Article: Source

China’s Silk Road infrastructure fund explores investment exit strategies

Posted on 29 June 2015 by VRS  |  Email |Print

China’s US$40 billion Silk Road infrastructure fund will use stock market listings and government transfers as exit strategies for divesting, in order to ensure financial returns from its investments, its chairwoman says. “When we make an investment decision, we will design an exit channel for it,” Jin Qi, the fund’s chief executive, told the Lujiazui Forum in Shanghai yesterday.
Capricious policymaking in those countries could prove a stumbling block to successful investments there, China Investment Corporation president Li Keping told the forum. “In those countries that lack a complete legal system, there will be discretionary policy changes,” the head of the country’s sovereign wealth fund said. ‘Therefore, uncertainties are increasing. Or, to be precise, risks are high.”……………………………………….Full Article: Source

Malaysia fund’s $4.5 bln rescue may weigh on Abu Dhabi’s IPIC

Posted on 26 June 2015 by VRS  |  Email |Print

The $4.5 billion rescue of a struggling Malaysian state fund is good news for the government in Kuala Lumpur but will load Abu Dhabi’s International Petroleum Investment Co with extra debt that may worry investors in its bonds.
Last month IPIC, an investment company owned by Abu Dhabi’s government, came to the aid of Malaysia’s loss-making 1MDB, whose poor record and $11.6 billion of debt are a source of political pressure on Prime Minister Najib Razak. IPIC agreed to provide 1MDB with $1 billion in cash, allowing the Malaysian fund to repay a $975 million loan to a global banking syndicate………………………………………..Full Article: Source

President Aliyev approves SOFAZ budget

Posted on 26 June 2015 by VRS  |  Email |Print

President Ilham Aliyev has signed a decree on the budget of Azerbaijan’s state oil fund SOFAZ for 2014. According to the document signed on June 24, the president approved the implementation of the SOFAZ budget with its revenues at over 12.731 billion manats and expenditures at over 10.117 billion manats.
The revenues of the budget were fulfilled at 109.5 percent wile the expenditures at 95.5 percent. SOFAZ, an entity that accumulates and manages Azerbaijan’s oil and gas revenues, was established in 1999 with assets worth $271 million………………………………………..Full Article: Source

Government should restart contributions to NZ Super Fund

Posted on 25 June 2015 by VRS  |  Email |Print

The New Zealand Superannuation Fund has been the world’s most successful sovereign wealth fund over the past five years. In that time, it has returned 17 per cent a year. Over the past three years, the going’s been even better, at 21 per cent. These are frankly extraordinary numbers – as fund chairman Gavin Walker said last week, if he saw an investment product promising such returns, “I would be thinking it was too good to be true”.
It wasn’t too good to be true, but it is too good to last. The fund’s managers held their nerve during the global financial crisis and bought underpriced equity – they have made hay as the global economy has recovered. There won’t always be such lucrative opportunities – inevitably, given the fund’s mandate to take some risks, there will be down times too………………………………………..Full Article: Source

1MDB: Price paid for energy assets based on ‘long-term view’

Posted on 24 June 2015 by VRS  |  Email |Print

1Malaysia Development Berhad (1MDB) debunked allegations made recently in the Wall Street Journal (WSJ) on its 2012 purchase of a power asset from Genting Group, saying the allegedly inflated price paid had not been driven by political considerations.
Instead, 1MDB insisted that like all its other asset acquisitions, the deal with Genting Group was based on a long-term view as well as advice received from independent valuers and the market conditions at the time………………………………………..Full Article: Source

Rwanda: Airtel Staff Contribute Rwf40 Million to Agaciro Fund

Posted on 23 June 2015 by VRS  |  Email |Print

Airtel rwanda staff have contributed Rwf40 million to the national sovereign wealth fund, Agaciro Development Fund (AgDF). While handing over the contribution on Thursday, Teddy Bhullar, Airtel managing director, said the contribution is part of the company’s commitment toward the development of Rwanda to ensure prosperity for future generations.
“We thank our staff for this patriotic gesture, and for continuing to display a genuine commitment to the development of the country through this contribution and other national development activities that we have been participating in as a company………………………………………..Full Article: Source

UK trains sights on Abu Dhabi sovereign funds for HS2 high-speed rail project

Posted on 22 June 2015 by VRS  |  Email |Print

The UK government has approached Abu Dhabi sovereign wealth funds seeking investment in major infrastructure projects. Dominic Jermey, the chief executive of UK Trade and Investment and former UK ambassador to the UAE, last week met executives from Mubadala and the Abu Dhabi Investment Authority (Adia) to try to drum up investment in projects including the controversial high-speed rail project HS2, and in the UK government’s Northern Powerhouse initiative – a plan to restore economic dynamism to Britain’s struggling post-industrial regions.
Offering the chance to get involved in “the biggest programme of railway building in the United Kingdom since the time of Queen Victoria”, Mr Jermey said that the UK government would “love to see sovereign wealth fund money” invested in HS2, and in efforts to build new infrastructure in Manchester, Birmingham, Sheffield and Leeds………………………………………..Full Article: Source

Norway Fund Likes Short Bonds as Volatility Grows

Posted on 19 June 2015 by VRS  |  Email |Print

Norway’s $890 billion sovereign wealth fund, the world’s biggest, is sticking to short bond maturities as markets are increasingly gripped by volatility. The decision is designed to guard against sudden price swings that are migrating from currency markets back to bond markets, Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which runs the fund, said in an interview in Oslo on Thursday.
“It seems that the volatility that had moved to the currency market has basically come back to the bond market again,” he said. “We have a shorter duration in our portfolio than what’s in the broader markets, so we are prepared for volatility in the bond market.”……………………………………….Full Article: Source

Norway Wealth Fund Ponders If China Sell-Off Sign of Larger Risk

Posted on 19 June 2015 by VRS  |  Email |Print

Is the sudden shift in Chinese stocks a sign something is fundamentally wrong in the world’s second-biggest economy? That’s what Yngve Slyngstad, chief executive officer of Norway’s $890 billion sovereign wealth fund, is trying to figure out right now.
“You have to spend time thinking about both the valuation issues but also the wider ramifications of this price move,” he said in an interview after a speech in Oslo. “Whether it’s a symptom of something more fundamental going on.”……………………………………….Full Article: Source

Future Fund payout will go to members: AusSuper

Posted on 19 June 2015 by VRS  |  Email |Print

A long-running dispute between AustralianSuper and the Future Fund over shares in Perth Airport has resulted in a $7 million settlement that the industry fund says will be used to compensate its members. Yesterday after a battle in the Federal court that spanned two years the Future Fund agreed to pay AustralianSuper $7 million in an out-of-court settlement.
The claim related to the Future Fund’s $875 million acquisition of a shareholding in Perth Airport as part of an agreement in 2012 to acquire $2 billion of airport assets from Australian Infrastructure Fund (AIX). The superannuation fund said the Future Fund had inflated the price of a number of AIX assets it purchased………………………………………..Full Article: Source

In one sentence the CEO of a $117 billion fund explained why market returns will be lower in the future

Posted on 19 June 2015 by VRS  |  Email |Print

David Neal, CEO of Australia’s $117 billion sovereign wealth fund, gave a speech at the Australian British Chamber of Commerce yesterday. He outlined why the Future Fund, as it is known, prefers to invest mostly offshore.
But he also gave a really clear outline – in just one sentence – why asset returns in the years ahead are likely to be substantially lower than they’ve been over the past few years. Neal said: Since 2008 we have seen unprecedented action by central banks and governments to defend economic growth through quantitative easing and other policies which have had the effect of driving yields down and asset prices up………………………………………..Full Article: Source

Investment returns to fall, Future Fund

Posted on 18 June 2015 by VRS  |  Email |Print

Investments returns are likely to fall as central banks and governments ease back on economic stimulus, the head of Australia’s sovereign wealth fund says. Future Fund managing director David Neal says quantitative easing and other measures aimed at stimulating economic growth since the global financial crisis have boosted investment returns over recent years.
But this has been done essentially by bringing forward returns from the future. “The look-forward returns across the board are now much lower than they were, and much lower than normal,” Mr Neal told an Australian British Chamber of Commerce luncheon in Melbourne on Wednesday………………………………………..Full Article: Source

Abu Dhabi sovereign wealth fund sells ACT hotel

Posted on 18 June 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority has sold its CBD Canberra hotel for $77 million. The Novotel at 65 Northbourne Avenue was sold by the sovereign wealth fund owned by Emirate of Abu Dhabi.
According to Canberra Cityscope, the Novotel Canberra, which includes the Jolimont retail centre, was built in 1983. The six-storey building with basement parking is a 286-room hotel that was refurbished and extended in 2009. The property last traded at $10 million in 1998………………………………………..Full Article: Source

Posco sells off a $1.1bn stake to Riyadh public investment fund

Posted on 17 June 2015 by VRS  |  Email |Print

South Korean steelmaker, Posco has agreed to sell $1.1bn (£710m) worth of shares in Posco E&C to Saudi Arabia’s Public Investment Fund (PIF). The deal gives Posco a 38 per cent stake, made up of 10.8m shares in Posco E&C, plus the issuance of 5.1m new shares, it said in a statement.
The parent company has been seeking to offload assets to help cope with the steel market downturn. Posco will retail control, with a 53 per cent stake. It hopes that the foreign capital injection will help reduce Posco C&E’s debt ratio, which it has been working on for the past three years………………………………………..Full Article: Source

Temasek, GIC invest S$739 million in Citic Securities

Posted on 17 June 2015 by VRS  |  Email |Print

Singapore investment company Temasek Holdings and sovereign wealth fund GIC will plough in another HK$4.3 billion (S$739 million) into Citic Securities, as the Chinese broking firm raises as much as HK$27.1 billion via a placement of new shares to ten institutional investors.
Citic Securities, China’s biggest brokerage by market value, will sell as many as 1.1 billion new Hong Kong-listed shares at HK$24.60 each, it said in a statement filed with the Hong Kong stock exchange. That’s a 19 per cent discount from Monday’s closing price………………………………………..Full Article: Source

CITI: If governments stopped focusing on debt and ‘unlock the value’ of assets, it will solve the global debt problem

Posted on 17 June 2015 by VRS  |  Email |Print

What many would refer to as a sovereign wealth fund and the authors call a national wealth fund (NWF). Free of political interference the NWF structure “maximizes economic value consistent with the principles of corporate governance,” Detter and Fölster say.
It’s an ambitious plan, but one that even if partially realised can change the shape of the global economy and change the conversation around sovereign debt and deficits to one much more positive. That has to be good for the global economy………………………………………..Full Article: Source

IMF allows that SOFAZ assets can increase

Posted on 17 June 2015 by VRS  |  Email |Print

IMF allows that the assets of the State Oil Fund of Azerbaijan (SOFAZ) can increase.
According to IMF forecasts, in 2015 the SOFAZ assets will decrease from $37.032 bn to $34.855 bn. In 2016 the assets will start to restore up to $36.195 bn………………………………………..Full Article: Source

Opportunity knocks for all if we can tap into our shared wealth

Posted on 16 June 2015 by VRS  |  Email |Print

We need to think big when it comes to the West Midlands’ public and private assets. I hope it isn’t a side issue. It can actually be the real driving force for the whole region. I suspect we need to be much more ambitious than a ’single investment vehicle’. How about we aim for a West Midlands Regional Sovereign Wealth Fund?
I have been arguing in articles, books and blogs for years now (and here in the Birmingham Post) that we need to be much more innovative and creative about our assets in Birmingham and the West Midlands. They are mostly unmined, unexploited and unsweated. They sit as a wasted network of resources which should be unlocked and exploited. Their assets (often physical buildings, as it happens) joined within a wider sovereign wealth fund which recognises the wider economic impact of the arts can of themselves be part of a new wider way of generating arts funding………………………………………..Full Article: Source

Zim needs effective fiscal policy for SWF

Posted on 16 June 2015 by VRS  |  Email |Print

Government needs to formulate sound fiscal policy and ensure effective public finance management when investing proceeds from finite natural resources to achieve sustainable economic, a paper from a local research unit noted. The paper details part of initial efforts to interrogate what the Government needs to do when setting up a Sovereign Wealth Fund (SWF) to manage inflows from the country’s natural resources to support future economic growth.
The Government designated mining as the anchor for short to medium-term economic growth, at the same time it needs to create reserves from its exhaustible natural resources income for smooth consumption pattern over time………………………………………..Full Article: Source

HDFC makes affordable housing play; launches $1-billion global fund

Posted on 16 June 2015 by VRS  |  Email |Print

Some of the bulge-bracket global investors are betting on India’s affordable housing story with the country’s leading mortgage lender HDFC rolling out its $1-billion offshore fund to finance such projects.
The world’s second largest sovereign wealth fund the Abu Dhabi Investment Authority (ADIA), is one of the investors, according to two persons close to the development. Two European pension fund pools have also committed investments. The fund, according to a senior banker, has already completed its “first close” of $500 million — pooling a large share of it from the Gulf-based sovereign wealth fund (SWF)………………………………………..Full Article: Source

Duke Energy, Norwegian fund in talks that could salvage $420M investment

Posted on 15 June 2015 by VRS  |  Email |Print

Duke Energy and some other U.S. power companies may qualify for some caveats allowed in Norway’s plan to divest its pension funds from companies that get at least 30 percent of their revenue from coal operations. Duke spokesman Dave Scanzoni says the Charlotte-based power giant has been in contact with representatives of Norges Bank, which administers the $420 million-plus Norwegian investment in Duke, about the new measure.
They plan to continue discussions in the coming months, making the case that Duke has existing plans for a significant reduction in its dependence on coal in the next few years. Marthe Skaar, spokeswoman for Norges, would not confirm any conversations with companies the fund invests in………………………………………..Full Article: Source

GBP16bln to spend - how hard can it be?

Posted on 15 June 2015 by VRS  |  Email |Print

Meet the man who has billions of Norway’s oil cash to invest in central London property. January 13, 2011, started inauspiciously for Karsten Kallevig. The head of property at Norway’s sovereign wealth fund woke up at a hotel in London’s West End ready to sign a £450m deal to buy 25% of Regent Street from the Crown Estate.
“I put on the TV, then just read through the contract one last time,” he said. “And on the TV they’re showing there’s a guy who has locked himself in a store on Regent Street, saying he’s got a bomb. I’m sitting there, saying on one hand ‘I’m very glad this came before I signed’. On the other hand, ‘any day he had to pick to lock himself into a store and threaten to blow himself up, it’s today’.”……………………………………….Full Article: Source

Gaddafi’s missing billions shows risk of sovereign wealth funds

Posted on 15 June 2015 by VRS  |  Email |Print

Fight for control of Libyan Investment Authority highlights need for greater governance over giant sovereign wealth funds.Back in 1974, Fortune magazine described the oil boom in the Middle East as the biggest re-distribution of wealth in history. Across the Arab world, people who had spent centuries living in abject poverty were suddenly blessed with oil riches beyond their wildest dreams.
Foreign currency earnings began to flow into the region and - to mop up this flood of capital - governments set up sovereign wealth funds, or SWFs. These funds were, in principle, intended to act as banks of last resort for oil producers in the region by investing petro-dollars overseas during periods of high prices. Were revenue from oil sales to decline, then these investments could be sold to provide hard currency at short notice to support economic growth………………………………………..Full Article: Source

Malaysia’s troubled state fund gets Middle East help

Posted on 15 June 2015 by VRS  |  Email |Print

Heavily indebted 1Malaysia Development Bhd (1MDB), a strategic development company wholly-owned by the government of Malaysia and cooperating, among others, with Middle East investors such as Aabar Investments and Qatar Investment Authority (QIA), said on June 8 that it has repaid a $975mn loan to an international consortium of banks, a move that “proves its commitment to reducing its debt.”
The fund, which has amassed debt since its inception in 2009 that is said to stand at $11.4bn, has used a fresh $1bn cash injection paid on June 4 by Aabar Investments, a unit of Abu Dhabi’s International Petroleum Investment Company (IPIC), to repay the loan to the six-bank syndicate led by Deutsche Bank………………………………………..Full Article: Source

Alaska Permanent Fund can fill the budget gap if only we’d recognize it’s time

Posted on 15 June 2015 by VRS  |  Email |Print

On the heels of Gov. Bill Walker’s three-day “Building a Sustainable Future” shindig in Fairbanks to hash out details of Alaska’s fiscal problems and possible solutions, many of us are wondering when Alaskans will get around to connecting the dots.
As some attendees pointed out, most of those at the gathering were older, politically involved Alaskans or members of Walker’s transition team or kibitzers representing government or education interests. They spent, if the press got it right, much time on taxes — the left calls them “revenue options” — to close Alaska’s budget gap………………………………………..Full Article: Source

State-owned assets: The neglected wealth of nations

Posted on 12 June 2015 by VRS  |  Email |Print

Governments have trillions of dollars in assets, from companies to forests. These are typically poorly managed, and often not even recorded at all (Greece, for instance, still has no proper land registry). Dozens of countries have asset-management agencies, but these tend to be run by government departments, not external experts. Only 1.5% of public assets are in politically insulated NWF-style funds with wide latitude to value them at market rates, restructure them, and keep, sell or merge them as they see fit.
How big is difficult to say due to gaps in the data, but the authors believe the pool of public “commercial” assets (lumpy stakes in companies, property and the like) is $75 trillion, twice the world’s total pension savings and ten times as big as the holdings of sovereign-wealth funds (which typically hold financial assets such as stocks and bonds.)……………………………………….Full Article: Source

Global Logistic Said in Talks for $4.5 Billion Portfolio

Posted on 11 June 2015 by VRS  |  Email |Print

Global Logistic Properties Ltd., partly owned by Singapore’s sovereign wealth fund, is in preliminary talks to acquire more than 200 warehouses valued at about $4.5 billion as part of its push into the U.S., said a person with knowledge of the discussions.
The talks with the owner of the properties, Industrial Income Trust Inc., might not lead to an agreement, said the person, who asked not to be identified because the sales process is private. The assets comprise almost 58 million square feet (5.4 million square meters)………………………………………..Full Article: Source

Qatar could turn off tap on mining funding after review

Posted on 11 June 2015 by VRS  |  Email |Print

An investment review at Qatar’s wealth fund could lead to a cut in money allocated to the mining sector, potentially hitting ventures such QKR Corp, according to five sources familiar with the matter. Such a move would be the latest in a string of rethinks by sovereign funds and investment firms that have been badly burnt by bets in the natural resources sector, largely due to the recent pullback in oil, gas and metal prices.
Late last year, Qatar named ruling family member Sheikh Abdullah bin Mohamed bin Saud al-Thani as the new head of the Qatar Investment Authority (QIA), one of the top investors globally………………………………………..Full Article: Source

Qatar to have its first budget deficit in 15 years

Posted on 10 June 2015 by VRS  |  Email |Print

Qatar is set to run its first budget deficit in 15 years as it ploughs ahead with massive infrastructure spending ahead of the football World Cup in 2022. “Qatar’s high economic wealth levels and strong external and fiscal positions provide buffers to alleviate the impact of the sharp decline in the oil price,” said Trevor Cullinan, director of sovereign ratings at Standard and Poor’s (S&P).
The Qatar Investment Authority (QIA), the country’s sovereign wealth fund, on Tuesday agreed to pay HK$7.7 billion (Dh3.65bn) to buy a 16.53 per cent stake in HK Electric Investments (HKEI) from Power Assets, a utilities group controlled by billionaire Li Ka-shing………………………………………..Full Article: Source

National Assembly soon to debate bill on gas resources

Posted on 10 June 2015 by VRS  |  Email |Print

Igalula Member of Parliament Athuman Mfutakamba wanted to know when the government would deposit revenue from gas in the ‘Sovereignty Wealth Fund’ once the government selling the product in 2020. Responding, the deputy minister said after gas discovery in the country there has been heavy investment in the sector from both private and public sectors through contracts.
He said the contracts will be transparent as far as the distribution and allocation of revenue from gas resources is concerned, explaining: “The government will also establish a transparent system on how to make decisions concerning the use of funds from natural gas and where to invest the sovereign wealth fund.” Dr Kitwanga added that under the system it will be decided which areas and at what time the Sovereign Wealth Fund will be allocated, especially for the future generation………………………………………..Full Article: Source

1MDB, Malaysia’s investment arm, repays USD975m debt

Posted on 10 June 2015 by VRS  |  Email |Print

Malaysia’s debt-ridden state investment company, 1Malaysia Development Bhd (1MDB), has settled a loan amounting to USD975m to a consortium of international banks led by Deutsche Bank AG. In a statement, 1MDB, which had racked up MYR41.9bn (USD11.1bn in debts as of 31 March 2014, said the repayment is part of its commitment to reduce its liabilities and in line with strategy approved by the Malaysian cabinet.
Malaysia’s The Start newspaper has quoted 1MDB president and group executive director Arul Kanda Kandasamy confirming the full repayment. Bloomberg has reported that the government said last month that funds to repay the loan would come from Abu Dhabi’s state-owned International Petroleum Investment Co. 1MDB, in a separate statement, said it is cooperating with authorities that are investigating the fund, which has been weighing on the local currency……………………………………….Full Article: Source

Sovereign wealth funds likely to lower home-market bond holdings

Posted on 09 June 2015 by VRS  |  Email |Print

Bond markets across the globe look set to lose further favor with sovereign wealth fund investors as a net 47% say they expect to decrease their home-market bond exposures. The third annual report by Invesco (IVZ) about the SWF market, covering $7.1 trillion in assets from 59 investors, found that trend against home-market bonds had increased from a net 38% planning such a shift in the 2014 report.
A propensity for cash was marked, however, with only a net 17% of respondents set to shift from cash, vs. a net 25% in 2014. At the other end of the investor views was infrastructure, with a net 50% expecting to increase allocation to home-market infrastructure, vs. a net 33% in 2014. Global infrastructure is set to increase as well, with a net 63% expecting to shift allocations into the asset class, compared with a net 53% in 2014………………………………………..Full Article: Source

Middle East sovereign wealth funds fear inflow decline

Posted on 09 June 2015 by VRS  |  Email |Print

More than a third of Middle Eastern sovereign wealth funds expect new funding to decrease as the region adjusts to a period of lower oil prices, research suggests. Invesco’s 2015 global sovereign asset management survey reveals that 38 per cent of Middle Eastern sovereign funds expect such funding to decrease; 31 per cent expect it to stay the same; and 31 per cent see it increasing.
After years of ever-increasing allocations, regional fund managers are adjusting to a low-oil environment that may persist for several years. But the research also highlights the positive outlook from most regional funds, whose governments are seeking long-term returns for future generations or domestic development. “Middle East sovereigns felt funding would continue despite the oil price, whereas there is more sensitivity about future withdrawals,” said Nick Tolchard, head of Invesco Middle East………………………………………..Full Article: Source

Abu Dhabi wealth fund approved to invest US$1.5bn in A-shares

Posted on 08 June 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA), one of the largest sovereign wealth funds in the world, has been approved to invest US$1.5 billion in China’s A-share market, reports Beijing Youth Daily. The fund has collected almost US$4 billion overseas since last week. This is not the group’s first time’s investing in China’s stock market.
The fund is a shareholder of many Chinese companies like LiuGong Machinery, Tongling Nonferrous Metals, Jiuzhou Group, Sunlord Electronics, China Shipping Development, Zhongjin Gold, Zhejiang Huahai Pharmaceutical, Jin Jiang Intel Group, and China Communications Construction Company Group………………………………………..Full Article: Source

Alberta should copy Alberta on oil royalties: former Norwegian finance minister

Posted on 04 June 2015 by VRS  |  Email |Print

A former Norwegian finance minister says Alberta’s new government should take inspiration on handling resource revenues from the same place her country found it — Alberta. “We were inspired by Alberta when we established our sovereign wealth fund,” said Kristin Halvorsen, who was Norway’s finance minister from 2005 to 2009 and led that country’s Socialist Left party in a coalition government.
“But there have been many differences in how we established the fund.” Alberta’s new NDP government has promised to review how the province’s oil royalties are raised and spent. That includes a look at the Heritage Savings Trust Fund, which was created by former premier Peter Lougheed in 1976 as a nest egg and repository for some of Alberta’s non-renewable resource revenues to prevent them from distorting annual budgets………………………………………..Full Article: Source

Abu Dhabi Wealth Fund Changing Tack Amid Lower Oil Prices

Posted on 03 June 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority, a sovereign-wealth fund with assets estimated at more than $700 billion, is relying less on external money managers and handling more of its investments in-house—a trend gaining traction at some of the largest managers of national wealth from Norway to Singapore.
Funded by excess revenue from the government of Abu Dhabi, a major Persian Gulf oil producer, ADIA was managing 35% of its money in-house in 2014, compared with 25% in the previous year, according to an annual review released Tuesday. Investors watch ADIA’s allocations and money-management strategies carefully because of the effect a shift by a fund its size could potentially have on asset prices………………………………………..Full Article: Source

Abu Dhabi fund ADIA manages more of its billions in-house

Posted on 03 June 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA), one of the world’s biggest sovereign wealth funds, managed more of its money in-house last year as it strengthened its capabilities and added staff in some areas, ADIA said on Tuesday. The proportion of its assets managed by external fund managers fell to 65 percent last year from 75 percent in 2013, the authority said in its annual review.
It said this was due to “our efforts over recent years to strengthen the organisation’s in-house investment and analytical expertise”. ADIA has 1,650 employees from 60 nationalities, the review said. ADIA did not disclose its total assets under management but the U.S.-based Sovereign Wealth Fund Institute, which tracks the industry, estimates them at $773 billion………………………………………..Full Article: Source

Abu Dhabi Investment Authority bolsters internally managed capabilities in 2014

Posted on 03 June 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority cut the percentage of assets managed by external money managers to 65% from 75% a year earlier, said its 2014 annual report. The move to reduce externally managed assets by the sovereign wealth fund reflected its “efforts over recent years to strengthen the organization’s in-house investment and analytical expertise,” said Hamed bin Zayed Al Nahyan, managing director, in the review. Further details weren’t available.
ADIA does not disclose its assets, but it is estimated by the Sovereign Wealth Fund Institute to have $773 billion. The sovereign wealth fund said about 55% of its assets are invested in index-replicating strategies, steady from 2013………………………………………..Full Article: Source

Malaysia’s 1MDB secures $1bn from Abu Dhabi fund ahead of loan deadline

Posted on 01 June 2015 by VRS  |  Email |Print

Malaysia’s loss-making state fund 1MDB has signed a deal securing $1 billion in funding from Abu Dhabi, days ahead of a looming deadline to repay a loan of that size, in what the government said was a significant step toward easing debt worries and advancing a long-awaited restructuring.
Malaysia’s finance ministry said in a statement on Friday that Abu Dhabi’s International Petroleum Investment Company (IPIC) and its Aabar Investments unit will supply the on or before June 4. That will allow 1MDB to repay a $975 million loan to a global banking syndicate, it said………………………………….Full Article: Source

banner
August 2015
M T W T F S S
« Jul    
 12
3456789
10111213141516
17181920212223
24252627282930
31