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Leonardo DiCaprio’s charity urged to repay donations linked to 1MDB Malaysian fund scandal

Posted on 02 September 2016 by VRS  |  Email |Print

The charity of Hollywood A-lister Leonardo DiCaprio has been urged to repay money it received which is linked to the Malaysian state fund 1MDB currently mired in an embezzlement scandal.
The US Department of Justice says that donations made to the Leonardo DiCaprio Foundation, (LDF), which is an environmental charity, came from billions allegedly siphoned from the sovereign wealth fund set up in 2009 by Malaysia’s prime minister Najib Razak………………………………………..Full Article: Source

Liberum sells down GIC’s stake in Jimmy Choo

Posted on 02 September 2016 by VRS  |  Email |Print

The Singaporean sovereign wealth fund has sold around one-third of its stake in Jimmy Choo via a placing by the upmarket shoemaker’s joint corporate brokers Liberum Capital and RBC. The footwear brand, in a filing on August 31, said that GIC – which bought shares worth 4.6% of the company during its London listing in October 2014 and then increased that stake to 6.1% in September 2015 – had dropped its stake in the business on August 25 to 3.99%.
Liberum Capital placed most of the roughly nine million shares sold, according to a person familiar with the process. Jimmy Choo shares closed trading on August 25 at 124p each………………………………………..Full Article: Source

SOFAZ sells another $50 million through Central Bank’s auction

Posted on 02 September 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $50 million to 28 banks through an auction held by the Central Bank of Azerbaijan (CBA) Sept. 1, SOFAZ said in a message Sept. 1.
SOFAZ will continue to sell foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Russian state fund aims to take part in Bashneft privatisation

Posted on 02 September 2016 by VRS  |  Email |Print

The Russian Direct Investment Fund (RDIF) is aiming to take part in the privatisation of oil producer Bashneft, Kirill Dmitriev, head of the fund, said on Thursday. “We certainly will participate in Bashneft (privatisation),” he told reporters. The Russian government plans to sell a 50.08 percent stake in Bashneft. The stake has been valued at around 300 billion roubles ($4.6 billion).
The RDIF plans to look for investors and bid itself for one tenth of the Bashneft stake being offered, Dmitriev said. He compared the fund’s plans with a model previosly used when it took part in the privatisation of diamond producer Alrosa earlier this year………………………………………..Full Article: Source

Alaska Permanent misses benchmark with 1.02% fiscal-year return

Posted on 02 September 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 1.02% gross of fees for the fiscal year ended June 30, below its 1.57% performance benchmark, the $52.9 billion sovereign wealth fund announced Thursday.
Infrastructure and other real assets returned 17.59% for the fiscal year, followed by private equity at 14.38%; private markets OCIOs/real-return allocations, 9.68%; non-U.S. bonds, 7.3%; U.S. bonds, 5.29%; U.S. stocks, -0.09%; absolute return, -1.92%; global stocks, -4%; non-U.S. stocks, -9.39%; and true special opportunity, -18.71%………………………………………..Full Article: Source

Norwegian Government Pension Fund Global: Fund urged to help foster tax transparency

Posted on 01 September 2016 by VRS  |  Email |Print

As a small country in charge of a not-so-small sovereign wealth fund, it is hardly surprising that the NOK7.1trn (€762bn) Government Pension Fund Global’s (GPFG) power for good or bad causes some level of anxiety in Norway.
The latest worries have resulted in a calm but potentially far-reaching political move. At the beginning of June, the Storting, Norway’s parliament, passed a proposal from the cross-party finance committee to ask the fund’s manager, Norges Bank Investment Management, to consider drafting an expectation document on the subject of tax for the companies in which the fund invests………………………………………..Full Article: Source

Straumann Shares Fall by Most in One Year After GIC Stake Sale

Posted on 01 September 2016 by VRS  |  Email |Print

Straumann Holding AG shares fell by the most in a year after Singapore’s sovereign wealth fund GIC Pte reduced its stake in the Swiss dental-implant manufacturer.
Straumann today said GIC, its second-largest shareholder, reduced its stake in the firm from 14 percent to less than 5 percent in a sale of 1.4 million shares . GIC bought a 10 percent stake in 2012 from Straumann’s vice chairman. Its investment has nearly quadrupled since then, according to Sibylle Bischofberger, an analyst at Zuercher Kantonalbank………………………………………..Full Article: Source

Temasek’s SMRT buyout a maybe-win case for investors

Posted on 01 September 2016 by VRS  |  Email |Print

In 2001, a year after it was listed, SMRT Corp paid main shareholder Temasek Holdings a special dividend of $540 million. The transport operator has since paid out a further $1.2 billion or so in dividends to shareholders.
Temasek, which owns 54 per cent of SMRT, would have collected another $630 million or so, meaning the state investor has collected close to $1.18 billion in dividends from SMRT. Temasek’s offer to take SMRT private - made through a scheme of arrangement last month - is also $1.18 billion………………………………………..Full Article: Source

Norway’s Sovereign Wealth Fund Hampered by Outflows (Video)

Posted on 31 August 2016 by VRS  |  Email |Print

Norway’s government is withdrawing funds from the nation’s $890 billion sovereign wealth fund as it faces lower prices on crude oil and low-to-negative interest rates. Bloomberg’s Jonas Bergman examines how this may hamper the fund’s ability to manage more risk. He speaks on “Bloomberg Markets.……………………………………..Full Article: Source

Complex, Obscure Financial Transactions behind 1MDB

Posted on 31 August 2016 by VRS  |  Email |Print

Malaysia’s 1Malaysia Development Berhad (1MDB) scandal reached a crescendo in July 2016. The US Attorney General claimed that more than US$3.5 billion belonging to 1MDB was ‘allegedly misappropriated by high-level officials of 1MDB and their associates’ between 2009 and 2015. The case is officially closed in Malaysia, but Prime Minister Najib Razak’s difficulties remain.
In 2015, evidence reported by The Wall Street Journal and individuals associated with the anti-government website, Sarawak Report, suggested that Najib had received around US$680 million into his personal account………………………………………Full Article: Source

Biggest Wealth Fund Warns Outflows Are Affecting Risk Strategy

Posted on 29 August 2016 by VRS  |  Email |Print

Norway’s $890 billion sovereign wealth fund is acknowledging that rising withdrawals by the government could hamper its quest to manage more risk and generate greater returns as it takes on more and more negative yielding securities.
The net outflows are “relevant for how we think about the risk-bearing capacity of the fund,” Egil Matsen, the deputy governor at Norway’s central bank who’s in charge of oversight of the fund, said in an interview Friday while attending a central banking conference in Jackson Hole, Wyoming……………………………………….Full Article: Source

Firm that received 1MDB funds invested in Italian F1 team

Posted on 29 August 2016 by VRS  |  Email |Print

The name ‘Vasco’ came into Malaysian public consciousness after US investigations concluded that US$472.75 million out of the US$3.657 billion allegedly misappropriated from 1MDB went to Vasco Investments Services SA. Vasco Investments Services SA is the management firm of Vasco Trust, the vehicle of United Arab Emirates (UAE) tycoon Khadem Al-Qubaisi.
According to Sarawak Report, 1MDB funds is not the only sovereign wealth fund which became a target of Khadem’s Vasco Trust as International Petroleum Investment Company (IPIC), UAE’s sovereign wealth fund, also found its money being funnelled into Khadem’s interests………………………………………..Full Article: Source

SWFs pull $16.2 billion in H1

Posted on 29 August 2016 by VRS  |  Email |Print

Sovereign wealth funds (SWF), including the state-owned investment funds in the GCC region, pulled 16.2 billion from third-party asset managers in the second quarter, up from a revised 10.1 billion in the first quarter, according to the latest data from research firm eVestment.
The outflows, according to the data, were the second largest in five years, exceeded only by the 22 billion withdrawn by sovereign wealth funds in the third quarter of 2015, when oil prices tumbled around 25 per cent. Peter Laurelli, global head of esearch at eVestment, which collates data from 4,400 firms managing money on behalf of institutional investors, said SWF flows to external money managers appeared “highly correlated” to global commodity prices, particularly oil prices………………………………………..Full Article: Source

GIC’s and Temasek’s investee company Xiaomi lost $40 billion in value

Posted on 26 August 2016 by VRS  |  Email |Print

It was recently reported that Chinese smartphone company Xiaomi, once dubbed the “Apple of the East”, has lost US$40 billion in value over a period of 18 months. In Dec 2014, Xiaomi announced a funding round of US$1.1 billion giving it a valuation of US$45 billion. In the US$45 billion round, it wasreported that investors included the Singapore sovereign wealth fund GIC, which is tasked to manage Singapore’s reserves.
GIC’s investment in Xiaomi comes after Temasek purchased a small stake in the smartphone maker in an earlier funding exercise. It was also reported that Temasek had gone on an investment spree together with Xiaomi and its founder Lei Jun, to invest in dozens of firms across China’s mobile internet eco-system………………………………………..Full Article: Source

Najib’s 1MDB stolen bullions used to fund night-club

Posted on 26 August 2016 by VRS  |  Email |Print

Khadem Al Qubaisi Owned Hakkasan (HKK) Entertainment Empire As Part of the Vasco Trust Web Of Companies. On 24th October 2013 a team of lawyers from the New York law firm Greenberg Traurig (‘gtlaw’) emailed the Abu Dhabi based New Zealand lawyer, Jim Sullivan, at the time a Board Member of the wealth fund IPIC and also of its subsidiary Falcon Bank.
The CEO of IPIC, of course, was Khadem Al Qubaisi (KAQ), who is currently under arrest in Abu Dhabi and the subject of extensive anti-money laundering investigations in a number of countries. The subject of the email was the purchase of a $50 million penthouse in New York’s Walker Tower, one of the properties subject to a seizure notice by the US Department of Justice, owing to the fact that it was purchased through KAQ’s Vasco Investment Services SA (manager of his Vasco Trust in Luxembourg), which received over half a billion dollars stolen from Malaysia’s development fund 1MDB………………………………………..Full Article: Source

Azerbaijan’s State Oil Fund sells over $340M to banks

Posted on 26 August 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $50 million to 28 banks through an auction held by the Central Bank of Azerbaijan (CBA) Aug. 25, SOFAZ said in a message. The SOFAZ sold $344.5 million to banks during August 2016.
SOFAZ will continue to sell foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016………………………………………..Full Article: Source

Oil Fund sells another $50 million through Central Bank’s auction

Posted on 26 August 2016 by VRS  |  Email |Print

The State Oil Fund (SOFAZ) and the Central Bank continue centralized sale of foreign currency to banks. SOFAZ reports that today the Central Bank (CBA) has held the next foreign exchange auction.
“At the auction SOFAZ, putting an application for $50 million, sold $50 million to 28 banks,” SOFAZ said. At the previous auction it was sold $46 million to 25 banks. The Fund will continue participation in currency auctions………………………………………..Full Article: Source

Norway’s sovereign wealth fund supports proposed spin-off in Svenska Cellulosa

Posted on 25 August 2016 by VRS  |  Email |Print

Based upon the terms and conditions in Svenska Cellulosa’s statement and our expectation of sound corporate governance practices in delivery of the proposed spin-off, it is our intention to support the proposal when put to shareholder vote at the next Annual General Meeting. Our final approval will be confirmed once we have reviewed all documentation available to shareholders prior to the next Annual General Meeting.
As at 22 August 2016, NBIM controls the exercise of all rights attaching to, including the ability to procure the vote and transfer of, 8,066,000 class A shares and 31,425,905 class B shares in the capital of Svenska Cellulosa AB, representing 8.7 pct total voting rights of Svenska Cellulosa AB………………………………………..Full Article: Source

Qatar’s financial position ‘will remain strong over next decade’

Posted on 24 August 2016 by VRS  |  Email |Print

Qatar, whose budget will turn back to surplus in 2017, will remain in one of the strongest fiscal positions in the world over the next decade and continue to hold massive financial buffers through its sovereign wealth fund (SWF), according to BMI. “Qatar’s sovereign position will remain one of the strongest in the world,” BMI said, forecasting that the budget surplus is expected to be QR5.3bn in 2017.
Having posted large budget surpluses between 2010 and 2015 on the back of massive hydrocarbon revenues, BMI said it allowed the country to set up a SWF ‘Qatar Investment Authority’, which held $335bn (215% of gross domestic product or GDP) of assets at the end of 2015, equivalent to five times the total stock of public debt issued by the Qatari government………………………………………..Full Article: Source

Turkey’s $200 Billion Wealth Fund to Finance Transport Projects

Posted on 24 August 2016 by VRS  |  Email |Print

Turkey’s proposed national wealth fund, which could total as much as $200 billion, will finance projects including airports, seaports, roads and railroads across the country, according to a government minister.
The fund, approved by parliament last weekend, will be used to carry out projects that don’t have a build-operate-finance model, Transport, Maritime and Communication Minister Ahmet Arslan said on Tuesday. Some sub-funds will provide finance for those infrastructure projects, he said in an interview at the work-site for the third bridge connecting Asia and Europe across the Bosporus waterway that will open Friday………………………………………..Full Article: Source

Azer Fund sells nearly $50mln to banks

Posted on 24 August 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $46 million to 25 banks through an auction held by the Central Bank of Azerbaijan (CBA) Aug. 23, SOFAZ said in a message.
SOFAZ will continue to sell foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Preserving the UAE’s wealth requires the right balance

Posted on 23 August 2016 by VRS  |  Email |Print

The largest Abu Dhabi sovereign wealth fund, the Abu Dhabi Investment Authority (Adia), recently announced its results with the 20-year average return dropping to 6.5 per cent from 7.4 per cent and the 30-year average dropping to 7.5 per cent from 8.4 per cent the previous year.
The drop was attributed to historical returns dropping off the rolling average, financial speak for saying the 1995 and 1985 returns were outsized ones that had pulled the average up and were now no longer being counted………………………………………..Full Article: Source

Don’t Try to Buy Dollars in Azerbaijan’s Capital

Posted on 22 August 2016 by VRS  |  Email |Print

Dollar sales in the Azeri capital have all but seized up as demand from households still reeling after two devaluations last year leaves most banks running on empty, with the manat plunging the most globally against the U.S. currency on Friday. The sovereign wealth fund known as Sofaz offers only $50 million in auctions held twice a week, which hasn’t been enough to supply banks.
Demand for dollars was 12 times the amount offered at an auction on Thursday, according to Marja, a financial news portal in Baku. The central bank also raised its key interest rate three times this year to the highest since 2008 as part of an effort to “strengthen trust” in the manat and encourage savings in the currency………………………………………..Full Article: Source

SOFAZ reveals income from largest oil project

Posted on 19 August 2016 by VRS  |  Email |Print

Revenues of Azerbaijan’s state oil fund SOFAZ from the project on development of the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields totaled $119.779 billion from early 2001 to August 1, 2016, the Fund told Trend.
SOFAZ said its revenues from the project totaled $2.77 billion in January-July 2016 with some $465 million being acquired in July. A landmark agreement on developing the ACG oil and gas fields was signed with a consortium of 11 foreign energy companies representing six countries in Baku in 1994, while production at the field was launched in 1997………………………………………..Full Article: Source

Norway’s oil fund fends off Brexit to post positive return

Posted on 19 August 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s biggest, posted a positive return on Wednesday for the second quarter, despite market pressure from Britain’s decision to leave the EU.
The fund registered a return of 1.3 percent, or 94 billion kroner ($11.5 billion, €10 billion), putting its value at 7.18 trillion kroner ($876 billion, €777 billion) at the end of the quarter, the central bank said on Wednesday. Real estate, which represented 3.1 percent of the portfolio, dragged the fund down, posting a negative return of 1.4 percent………………………………………..Full Article: Source

Norway’s SWF Up Despite 5% UK Real Estate Haircut

Posted on 19 August 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund is worth 7,177 billion NOK (US$878 billion). It was up in the second quarter of 2016 by a steady 1.3%, in spite of its real estate holdings in the UK that Norge’s Bank Investment Management’s quarterly report says it reduced by 5 percent as of June 30th.
This downward adjustment is thanks to the financial uncertainty in the UK following the country’s June 23rd referendum that saw British citizens vote to leave the EU. Over $20 billion in property fund assets have being frozen and the British pound has fallen 11% since the vote as investor confidence in the UK investments falls……………………………………….Full Article: Source

Norway oil fund looks into trimming $520b stock portfolio

Posted on 19 August 2016 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund, long a backstop for global equity markets, is looking into potentially trimming its $520 billion (Dh1.9 trillion) stock portfolio as it tries to buy more properties and even move into infrastructure.
Faced with withdrawals from the government and dwindling returns amid record low interest rates, the investor has so far been selling “lower yielding” bonds to fund real estate purchases. That could soon include selling stocks as well as the government gives the green light to increasing the share of so-called real assets………………………………………..Full Article: Source

Temasek sells telco shares to Singtel for $2.47b

Posted on 19 August 2016 by VRS  |  Email |Print

Singapore investment firm Temasek Holdings has agreed to sell Singtel a 21 per cent stake in Intouch Holdings, the Thai telecoms conglomerate formerly known as Shin Corp. Temasek will also sell its entire 7.4 per cent stake in India’s Bharti Telecom to Singtel.
As part of the deal announced yesterday, Singtel, which is 51 per cent owned by Temasek, said it would fund the $2.47 billion cash purchase partly with short-term debt and by placing out new shares to Temasek at $4.16 apiece to raise $1.6 billion………………………………………..Full Article: Source

Sovereign Funds Hold Steady on Private Equity Allocation

Posted on 19 August 2016 by VRS  |  Email |Print

Traditionally, public pensions have been a reliant source of capital for private equity deals. However, sovereign wealth funds continue to gain ground in the private equity investor base, as assets steadily grow for the institutional investor class. The total sovereign fund allocation to private equity tepidly increased for the year ended June 30, 2016, for a number of reasons.
First, several wealth funds have been realigning their private equity fund interests, selling some off to secondary buyers (sometimes even other asset owner peers), while continuing to recommit to strategic/geopolitical private equity funds, push capital into separate accounts, augment co-investment activity or allocate to top-quartile funds………………………………………..Full Article: Source

Norway’s sovereign fund cuts value of UK property portfolio after Brexit

Posted on 18 August 2016 by VRS  |  Email |Print

World’s largest sovereign fund reduces portfolio value by 5% saying there are question marks as to what EU vote means. Norway’s $893bn (£687bn) sovereign wealth fund has cut the value of its UK property portfolio by 5% after Britain’s vote to leave the EU.
The world’s largest sovereign fund is one of Britain’s biggest foreign investors, owning shares in most top UK companies and $11bn in government bonds. It co-owns Regent Street, one of London’s premier shopping streets………………………………………..Full Article: Source

Norway Oil Fund Looks Into Trimming $520 Billion Stock Portfolio

Posted on 18 August 2016 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund, long a backstop for global equity markets, is looking into potentially trimming its $520 billion stock portfolio as it tries to buy more properties and even move into infrastructure.
Faced with withdrawals from the government and dwindling returns amid record low interest rates, the investor has so far been selling “lower yielding” bonds to fund real estate purchases. That could soon include selling stocks as well as the government gives the green light to increasing the share of so-called real assets………………………………………..Full Article: Source

Norway’s sovereign wealth fund returns to prodit amid bond gains

Posted on 18 August 2016 by VRS  |  Email |Print

Norway’s US$890 billion (S$1.19 trillion) sovereign wealth fund, the world’s biggest, returned to gains in the second quarter even as it warned low interest rates will put pressure on returns ahead amid rising withdrawals from the government.
The Government Pension Fund Global gained 94 billion kroner (S$15.4 billion), or 1.3 per cent, after losing 0.6 per cent in the first quarter, the Oslo-based investor said on Wednesday. Its stock portfolio rose 0.7 per cent, its bond holdings gained 2.5 per cent and the real estate investments lost 1.4 per cent………………………………………..Full Article: Source

Norway’s sovereign wealth fund returns 1.3% in quarter

Posted on 18 August 2016 by VRS  |  Email |Print

Norway’s Government Pension Fund Global, Oslo, returned 1.3% in the three months ended June 30, bolstering total assets by 1.4% to 7.18 trillion Norwegian kroner ($850 billion). In a financial update Wednesday, Norges Bank Investment Management, which runs the assets of the sovereign wealth fund, said the return was equivalent to a gain of 94 billion Norwegian kroner.
That compares with a -0.6% return, or 85 billion Norwegian kroner loss, for the three months ended March 31. For the year ended June 30, assets increased 4.1%. The return for the second quarter 2015 was -0.9%, or a 73 billion Norwegian kroner loss………………………………………..Full Article: Source

Wave of restructuring in oil sector reduces risk of losses on Norway’s $24bln fund

Posted on 18 August 2016 by VRS  |  Email |Print

The worst could be over for investors in Norwegian oil service high yield bonds. After a wave of restructurings in an industry battered by falling crude prices, the risk for losses has now subsided, according to Lars Tronsgaard, who oversees bonds as deputy managing director at Norway’s 199 billion-krone ($24 billion) Folketrygdfondet.
“Short and medium term we believe that for our portfolio the major part of the losses are realized,” he said in an interview in Oslo on Tuesday. “Then we have to see how the oil price develops and how the restructurings, especially within supply, develop.”……………………………………….Full Article: Source

Singapore’s fiscal position to be unhurt from GIC’s, Temasek’s low returns

Posted on 18 August 2016 by VRS  |  Email |Print

Conservative spending rules will safeguard it. Despite the lower real returns of state-run investment entities GIC and Temasek Holdings due to exposure to equities, Singapore’s fiscal position is foreseen to endure only a limited impact over the near to medium term.
According to Moody’s Investors Service report, Singapore has on its arsenal buffers that would help it brave deficits at this time. “Over the near to medium term, conservative spending rules, a large stockpile of existing fiscal reserves, and features of Singapore’s fiscal framework that work to safeguard them will limit the negative credit impact on the sovereign,” Moody’s said………………………………………..Full Article: Source

Greenko takes advantage of its Singapore ownership

Posted on 17 August 2016 by VRS  |  Email |Print

Indian renewable energy company Greenko has taken advantage of its Singapore ownership and surging demand for Indian credit to price $500 million of Single B rated bonds below 5%.
The aggressive outcome was mostly put down to expectations that the majority investment of Singapore sovereign wealth fund GIC would help lower the issuer’s high leverage and improve its financial risk profile. Greenko sold a majority stake to GIC last November and raised a further $230 million in June from GIC and the Abu Dhabi Investment Authority………………………………………..Full Article: Source

India: Among FIIs, Norway fund has wider picks

Posted on 17 August 2016 by VRS  |  Email |Print

Government Pension Fund Global (GPFG), Norway, one of the largest pension funds globally, has a strong presence across Indian companies. According to a study by Prime Database, based on the shareholding pattern as on June 30, 2016, the Norwegian fund owns stakes in excess of 1 per cent in 77 companies, totalling Rs14,599 crore.
GPFG, which commands a market value of NOK 7,322 billion (Norway Kroner), holds stakes in Indian companies, including ABB, AB Nuvo, Ahluwalia Contracts, Alembic Pharma, Allahabad Bank, Andhra Bank, Ashok Leyland, Asian Paints, Bank of India, Bank of Baroda, Century Plyboards, IndusInd Bank, SBI, Reliance Industries, Tata Steel and Tata Motors………………………………………..Full Article: Source

Swiss private bank linked to Malaysia scandal

Posted on 15 August 2016 by VRS  |  Email |Print

A former unit of US insurance giant AIG is in the crosshairs of global regulators on an international hunt for billions of dollars — hot money misappropriated, they suspect, from the controversial Malaysian sovereign wealth fund 1MDB in a scandal that has rocked Goldman Sachs, The Post has learned.
Falcon Private Bank, once a sleepy outpost of American International Group, is in the spotlight as reports have emerged of its dealings with 1MDB, or 1Malaysia Development Berhad………………………………………..Full Article: Source

Azer State Oil Fund sells $50mln to banks

Posted on 12 August 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $50 million to 29 banks through an auction held by the Central Bank of Azerbaijan (CBA) Aug. 11, SOFAZ said in a message. SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016.
SOFAZ was established in 1999 with assets of $271 million. As of July 1, 2016, SOFAZ’s assets increased by 4.6 percent and amounted to $35.1 billion as compared to $33.57 billion in early 2016………………………………………..Full Article: Source

Fund syndicate takes stake in Envirogen

Posted on 11 August 2016 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund Mumtalakat has acquired an equity stake in Envirogen Group, a specialised international provider of water treatment solutions, alongsideGecos Invest and Hermes GPE Environmental Innovation Fund LP via a joint investment syndicate led by Promethean UK Opportunities Fund II, LP (PUOFII). The investment by Mumtalakat is the fifth in recent months and marks a step up in the wealth fund’s efforts to diversify its holdings.
Envirogen is a specialised international provider of environmental technology and process solutions for the treatment of water, wastewater, vapour emissions and material recovery, with operations across Europe and North America………………………………………..Full Article: Source

Temasek, CPPIB in fray to pick up SBI, Central Bank stakes in IL&FS

Posted on 11 August 2016 by VRS  |  Email |Print

Singapore investment firm Temasek Holdings Pte. Ltd and Canada Pension Plan Investment Board (CPPIB) are among five potential investors in talks with State Bank of India (SBI) and Central Bank of India to buy the Indian lenders’ stakes in Infrastructure Leasing and Financial Services Ltd (IL&FS), two people familiar with the development said.
The stakes in the infrastructure financing firm could be worth at least Rs.1,500 crore in total, said one of the two people, adding that the transaction is likely to be concluded in the next one month. Both spoke on condition of anonymity………………………………………..Full Article: Source

Kuwait posts budget deficit after 16 years of surplus

Posted on 10 August 2016 by VRS  |  Email |Print

Lower oil prices have pushed Kuwait into a rare budget deficit, ending 16 straight years of surpluses for the energy-rich Gulf state, the finance minister said.
In previous years, Kuwait built up a sovereign wealth fund worth around $600 billion that is invested mostly in the United States, Europe and Asia. Kuwait is projecting a deficit of $28.9 billion in the current fiscal year which began on 1 April………………………………………..Full Article: Source

Banks, at last, bought entire currency offered by SOFAZ

Posted on 10 August 2016 by VRS  |  Email |Print

The State Oil Fund (SOFAZ) and the Central Bank have reported that the domestic banks were able at last to purchase the whole currency suggested by the State Oil Fund. SOFAZ reports that today the Central Bank (CBA) has held the next foreign exchange auction.
“At the auction SOFAZ suggested $50 million, and the overall demand from the 29 banks allowed selling $50 million to them,” SOFAZ said. At the previous auction it was sold $49.4 million to 28 banks with the order for sale of $50 million………………………………………..Full Article: Source

Britons will decide how to spend $1.3 bln shale gas fund

Posted on 10 August 2016 by VRS  |  Email |Print

Britons living near “fracking” developments will be able to decide how a 1 billion pound shale gas wealth fund should be spent, either by accepting direct personal payments or supporting projects such as railways or flood defences, the government said on Monday.
Prime Minister Theresa May announced on Sunday that some tax proceeds from new shale gas developments could go directly into local residents’ pockets, showing her support for the nascent industry that she hopes can ease Britain’s growing reliance on imported gas………………………………………..Full Article: Source

Temasek buyout target SMRT Q1 profit down 23%

Posted on 09 August 2016 by VRS  |  Email |Print

Transport operator SMRT Corp reported on Monday (Aug 8) a 22.9 per cent year-on-year decline in profit to S$15.5 million for its fiscal first quarter, its first decline in a year, as losses in the rail business deepened.
The group, which is the subject of a S$1.18 billion proposed privatisation buyout by main shareholder Temasek Holdings, reiterated on Monday in a media conference that it will not be paying any special dividend to shareholders from the asset sale of the new rail financing framework (NRFF). On July 20, Temasek announced the acquisition of SMRT shares………………………………………..Full Article: Source

Economists see lower Temasek, GIC returns denting govt coffers

Posted on 08 August 2016 by VRS  |  Email |Print

The current brittle investment climate has weighed on Singapore’s sovereign wealth fund GIC and state investor Temasek Holdings. This will in turn affect the government’s coffers, observers told The Business Times.
They add that with both entities expecting the situation to drag on for years, there is a pressing need to review the role these contributions play in the fiscal budget. Economists point out that GIC and Temasek have ridden on earlier economic boom and bust cycles, boosting their portfolios with high asset returns………………………………………..Full Article: Source

Banks haven’t money enough again to buy SOFAZ-offered entire currency

Posted on 05 August 2016 by VRS  |  Email |Print

The State Oil Fund (SOFAZ) and the Central Bank obtained shortage of banks’ money for purchase of currency offered by the State Oil Fund. SOFAZ reports that the Central Bank (CBA) has held the next foreign exchange auction.
“At the auction SOFAZ suggested $50 million, but the overall demand from the 28 banks was sufficient only for purchase of $49.4 million,” SOFAZ said. At the previous auction it was sold $49.1 million to 29 banks with the order for sale of $50 million………………………………………..Full Article: Source

Goldman Employees to Pull $350 Million From Och-Ziff Fund

Posted on 04 August 2016 by VRS  |  Email |Print

Goldman Sachs Group Inc.’s retirement plan is pulling cash from one of the investment bank’s most famous alumni, liquidating a hedge fund run by Daniel Och’s Och-Ziff Capital Management Group. The U.S. has been investigating whether Och-Ziff paid bribes in exchange for an investment from Libya’s sovereign wealth fund and to participate in other deals in Africa.
Clients pulled $3.1 billion from Och-Ziff’s funds in the 12 months through June, and an additional $3 billion through Aug. 1, reducing assets to $39.1 billion………………………………………..Full Article: Source

Shareholders thwart Kazakh state oil group’s plan

Posted on 04 August 2016 by VRS  |  Email |Print

Kazakhstan’s state oil company has been defeated in its attempt to tighten control over its London-listed subsidiary after investors led by China’s sovereign wealth fund voted against the deal. The voting figures imply that China Investment Corporation, which is KMG EP’s largest minority shareholder with a stake of about 11 per cent, voted against the deal.
The role of the sovereign wealth fund, which rarely plays the role of activist investor, underscores Beijing’s growing sway in central Asia’s energy industry as it steps up investment in the region on the back of its One Belt One Road initiative. Chinese companies own close to a quarter of Kazakhstan’s oil production………………………………………..Full Article: Source

Singapore State Investment Fund Chaired By Its Prime Minister Reports Multi-Billion Dip In Profits

Posted on 03 August 2016 by VRS  |  Email |Print

Government Investment Corporation of Singapore (GIC) which is chaired by its prime minister Lee Hsien Loong reported “a dip in its 20-year annualised real rate of return to 4 per cent” in its 2016 annual report. GIC reported a dip in its 20-year annualised real rate of return to 4 per cent from the previous year’s rate of 4.9% for the financial year ended March 31, Singapore news daily The Straits Times reports on 28 July.
According to Singaporean finance and politics news blog, statestimesreview.com, that 0.9% translates to an estimated loss of at least US$20 billion (over RM81 billion) although the report points out that the real estimate could be as high as US$50 billion to cause a 0.9% drop in 20-year annual rate of return based on a US$135 billion 20 years ago………………………………………..Full Article: Source

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