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Sovereign Wealth Funds Briefing - Category | Financials more

Saudi Arabia’s sovereign wealth fund sees 9 percent asset growth since January

Posted on 06 November 2014 by VRS  |  Email |Print

Total assets of Saudi Arabia’s main sovereign wealth fund, SAMA Foreign Holdings (SAMA), have jumped 9 percent since January, allowing it to maintain its position as the world’s third-largest, according to a report by the Sovereign Wealth Fund Institute (SWFI).
In its most recent ranking of global sovereign wealth funds, the Washington-based SWFI said SAMA’s total assets had risen to 737.6 billion US dollars in October, up 9 percent from 675.9 billion dollars in January. However, Dr. Ali Al-Tuwati, an economics professor at the King Abdulaziz University in Jeddah, told Asharq Al-Awsat that SAMA’s position in the rankings would likely fall next year if global oil prices did not stabilize………………………………………..Full Article: Source

GIC-led group in talks to buy IndCor in S$10b deal

Posted on 05 November 2014 by VRS  |  Email |Print

GIC, the Republic’s sovereign wealth fund, is leading a consortium in negotiations to buy IndCor Properties from United States private equity giant Blackstone Group in a deal valued at about US$8 billion (S$10.3 billion), sources familiar with the matter said.Chicago-based IndCor, formed in 2010 as a portfolio company of Blackstone, holds warehouses and distribution centres across the US, said the company’s website.
“Talks are still ongoing. We don’t know whether there will be a deal yet,” said one source, who declined to be identified as the discussions remained confidential. A spokeswoman for GIC declined to comment, while Blackstone had not replied to an email seeking comment by press time………………………………………..Full Article: Source

Blackstone Said Near $8 Billion Deal to Sell IndCor Unit

Posted on 05 November 2014 by VRS  |  Email |Print

Blackstone Group LP is close to a deal to sell IndCor Properties Inc., an owner of U.S. industrial real estate, to investors led by Singapore’s GIC Pte for more than $8 billion, said two people with knowledge of the matter.
The GIC partnership is seeking $5 billion in debt to finance the acquisition, said one of the people, who asked not to be identified because the negotiations are private. The two sides have reached an agreement in principle that could still fall apart, another person said………………………………………..Full Article: Source

Will 1MDB change auditors again, asks DAP

Posted on 05 November 2014 by VRS  |  Email |Print

With 1Malaysia Development Bhd (1MDB) yet to submit its financial statements as required under the law, a DAP lawmaker has questioned whether the sovereign fund will change its auditors again.
Tony Pua (DAP - Petaling Jaya Utara) said as of yesterday, the company and its subsidiairies did not submit their financial statements to the Companies Commission despite the October deadline. The wealth fund last submitted the March 2013 statements in April this year, after a seven-month delay and a change of auditors from Ernst & Young to Deloitte Malaysia………………………………………..Full Article: Source

NZ Super Fund dumps AMP Capital

Posted on 03 November 2014 by VRS  |  Email |Print

The Guardians of New Zealand Superannuation, the manager of the NZ superannuation Fund, said it had terminated AMP Capital’s New Zealand active equities mandate, effective from last Thursday.
The value of the mandate was NZ$257.5 million. AMP Capital was appointed to the mandate in 2003. “The decision does not affect the Fund’s 5 per cent allocation to New Zealand equities,” the Guardians of NZ said in a statement. Superfund spokeswoman, Catherine Etheredge, declined to comment on the reasons for the move………………………………………..Full Article: Source

Khazanah divests Westports shares

Posted on 03 November 2014 by VRS  |  Email |Print

Malaysian stock market data has shown that Khazanah Nasional has started its divestment in Westports, seliing 161.52m shares in an off-market transaction.
The shares, which represented a 4.74 % stake, were transacted at an average price of MYR2.90 ($0.88) and were carried out via a book building exercise. Khazanah has previously announced it would divest stakes in non-core assets………………………………………..Full Article: Source

Why rich Norway can’t afford to be complacent

Posted on 03 November 2014 by VRS  |  Email |Print

Norway might have built up the world’s largest sovereign wealth fund, but it cannot afford to be complacent,the country’s finance minister told CNBC. Market volatility, falling oil prices and a slowdown in global economic growth are all factors that could put the country’s economic success at risk, Finance Minister Siv Jensen told CNBC on Friday.
Norway has amassed a vast amount of money due to its oil reserves. In 1990, it set up a sovereign wealth fund that has become the largest in the world, with a market value of $860 billion, according to Norges Bank which manages the fund…………………………………………Full Article: Source

Libya’s $60bn sovereign wealth fund thrown into chaos

Posted on 31 October 2014 by VRS  |  Email |Print

Libya’s $60bn sovereign wealth fund has been thrown into chaos by the sudden replacement of its chairman amid a fierce power struggle for control between the official elected government and Islamists who have seized control of the capital Tripoli. Former minister Abdulrahman Benyezza was replaced as chairman of the board of the fund on October 27, The Telegraph understands. His position was taken by Hassan Ahmed Bouhadi.
The change at the top of the Libyan Investment Authority (LIA) comes as the fund, which was the main investment vehicle of the former regime led by Muammar Gaddafi, is locked in a bitter court battle with Wall Street giant Goldman Sachs. The LIA is claiming that the bank cosied up to its employees and hoodwinked it into making $1.2bn-worth of trades during the Gaddafi era that it did not understand, and is seeking damages………………………………………..Full Article: Source

Harrods pays Qatari owners GBP118m dividend after record year

Posted on 31 October 2014 by VRS  |  Email |Print

The Qatari owners of Harrods have banked a £117.6m dividend on the back of another year of brisk trade at the London department store. The famous Knightsbridge store was snapped up by Qatar Holding, the investment arm of Qatar’s sovereign wealth fund, in 2010 for an estimated £1.5bn. The retailer’s parent group paid the dividend to a Qatari offshore company based in the tax haven of Bermuda. In 2013 the owners drew a dividend of £68.6m.
Operating profits at the store, which is heavily reliant on the wealthy tourists who flock to the capital, increased 13% to £122.9m on record sales of £794m in the year to 1 February. It also paid an internal royalty fee of £35.6m, according to the accounts for the Harrods Limited subsidiary………………………………………..Full Article: Source

1MDB denies claims over amassed debt, commissions paid

Posted on 31 October 2014 by VRS  |  Email |Print

Sovereign wealth fund 1 Malaysia Development Berhad today denied allegations that it was recklessly building up over RM37 billion in debt and impropriety in the commissions it paid for bond and fund-raising. In a statement on its website, 1MDB said that its ability to raise funds from quality investors showed the confidence vested in the firm, also pointing out that it had never missed any scheduled payments to its borrowers.
“All of our debt is backed by solid assets, and the total value of our assets (RM44.67 billion as at the financial year end of March 2013), comfortably exceeds the value of our total debts (RM37 billion for the same period),” it said in a lengthy statement in reply to concerns over its growing debt, which has attracted the attention of former prime minister Tun Dr Mahathir Mohamad………………………………………..Full Article: Source

Norway’s oil fund hit by European equities

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s $860bn oil fund made its first negative return in equities in more than two years as a weak performance by European stock markets hurt the world’s largest sovereign wealth fund.
Richard Milne, Nordic correspondent, reports that the oil fund made an overall return of 0.1 per cent in the third quarter as a positive performance by bonds rescued the negative return of 0.5 per cent from equities. European stocks - which still represent nearly half of the fund’s equities portfolio - had a negative return of 4.3 per cent while US and Asian stocks both performed well………………………………………..Full Article: Source

Norway Faces New Economic Realities With Oil’s Price Decline

Posted on 30 October 2014 by VRS  |  Email |Print

As global oil prices slide, there are signs Norway’s luck is running thin. On Wednesday, Statoil AS A, the oil and gas major 67%-owned by the Norwegian government, posted its first quarterly net loss since it floated on the stock market in 2001.
Separately, Norway’s $838 billion sovereign-wealth fund—the largest of its kind in the world that long has been fueled by oil revenues—said it achieved a slim 0.1% return on investments in the third quarter, thanks to a loss on its substantial holdings of European equities………………………………………..Full Article: Source

Norway’s Oil Fund Posts Flat Returns in 3Q–Update

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s oil fund, the world’s biggest sovereign wealth fund, reported a 0.1% profit on its investments in the third quarter, as a loss on its equity investments was offset by a fixed-income gain, and said geopolitical uncertainty was hurting European stocks while U.S. stocks gained.
Norges Bank Investment Management, the arm of the central bank that manages the fund, said Wednesday that earnings on its investments totaled 15 billion Norwegian kroner ($2.27 billion). The total value of the fund on September 30 was NOK5.534 trillion. Equity investments lost 0.5% in the third quarter, while fixed-income investments gained 0.9%, NBIM said. U.S. shares contributed positively, while European shares contributed negatively, NBIM said………………………………………..Full Article: Source

Tesco woes drag down Norway’s $860 bln wealth fund in third quarter

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s $860-billion sovereign wealth fund, the world’s largest, booked a flat return in the third quarter as it was dragged down by weak European stocks, foremost among them embattled retailer Tesco. The fund, one of the world’s biggest investors, is the top shareholder in the British supermarket group, which has lost 53 percent of its market value over the past year after an accounting scandal and a number of profit warnings.
“It is clear that our investment in the British company Tesco has performed particularly poorly in the course of the year,” Chief Executive Yngve Slyngstad told a news conference to present the fund’s third-quarter results………………………………………..Full Article: Source

IMF expects 14% fall of SOFAZ assets

Posted on 30 October 2014 by VRS  |  Email |Print

IMF expects 14.4% fall in assets of the State Oil Fund of Azerbaijan. According to the official report made by the IMF mission as a result of its visit to Baku, the State Oil Fund of Azerbaijan (SOFAZ) will close the year of 2014 with the assets at the level of $38.309 bn but already in 2015 they will fall to $32.802 bn.
Nevertheless, the Fund believes that the gross official international reserves of the government will grow. In 2014 they are expected to be at the level of $15.787 bn and in 2015 – at the level of $17.787 bn………………………………………..Full Article: Source

How Excess Crude Account Was Depleted From $9bn To $2bn – Okonjo-Iweala

Posted on 29 October 2014 by VRS  |  Email |Print

The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Monday disclosed how insistence by the states to share the money in the Excess Crude Account (ECA) resulted in the depletion of the account from $9 billion to $2 billion last year.
Okonjo-Iweala, who made this disclosure while defending the 2015-2017 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Policy (FSP) before the Joint Senate Committee on Finance and National Planning, said for the economy to remain stable, the ECA which she said later rose from $2 billion to $4.1 billion needs to be further raised and stabilised at $5 billion………………………………………..Full Article: Source

Nigeria needs to beef up excess crude account to $5bn – minister

Posted on 29 October 2014 by VRS  |  Email |Print

Nigeria’s Minister of Finance Ngozi Okonjo-Iweala, has said that Nigeria needs to raise its excess crude account, which currently stands at $4.1 billion to $5 billion in order to sustain stability of the economy. Nigeria’s Vanguard newspaper report on Tuesday said that Okonjo-Iweala told the Senate committees on Finance and National Planning, during consideration of the 2015-2017 Medium Term Expenditure Framework (MTEF) on Monday in Abuja that the excess crude account was built to be able to cushion us at times like this.
She explained that when the country had some kind of difficulties and “I think it played that role to perfection during the crises of 2008, when oil fell to 38 to 40 dollars per barrel”. “We have calculated that in order to help us regain this stability, we need a minimum of about 5 billion dollars and anything about that is good. The IMF actually calculated $6.3 billion to be maintained in that account………………………………………..Full Article: Source

Kuwait sovereign fund to resume selling stakes in local firms

Posted on 24 October 2014 by VRS  |  Email |Print

The Kuwait Investment Authority (KIA) has decided to resume selling stakes in major local companies to the public, planning to offer its stake in Kuwait Investment Co in the first half of 2015, state news agency KUNA reported.
The decision was made by KIA’s board of directors late on Wednesday, KUNA quoted the sovereign wealth fund as saying. The KIA, one of the world’s largest sovereign funds with assets estimated at over $400 billion, began offering stakes in listed Kuwaiti firms to the public in the 1990s as part of efforts to transfer more of the country’s corporate wealth into private hands………………………………………..Full Article: Source

Kuwait Wealth Fund to Sell $5.4 Billion of Company Stakes

Posted on 24 October 2014 by VRS  |  Email |Print

Kuwait Investment Authority, the sovereign wealth fund which started as a Bank of England account dedicated to receiving oil money, will sell stakes in three local companies worth 1.56 billion dinars ($5.4 billion).
The KIA, as the fund is known, will sell its Kuwait Investment Co. holding in a public offering in the first half of next year, according to a statement on the website of the official KUNA news agency. Kuwait Finance House and Mobile Telecommunications Co. shares will also be sold………………………………………..Full Article: Source

QIA assets rise to $450bn

Posted on 24 October 2014 by VRS  |  Email |Print

The size of Qatar Investment Authority ’s ( QIA ) assets has touched $450bn. The QIA has invested its fund in a wide range of sectors including banks, real estate, tourism, agriculture; both inside and outside Qatar, Al Sharq reported. The major focus of QIA ’s foreign investments is on West European countries like the UK, France and Germany.
The combined asset in these countries stands at an estimated $80bn. UK alone attracts $35bn. QIA has invested an estimated amount of $25bn in France, while in Germany’s industrial sector attracted $20bn. Total investments in the US stands at $11bn, the daily reported………………………………………..Full Article: Source

Korea Investment Corp. Learns Hard Lesson

Posted on 23 October 2014 by VRS  |  Email |Print

Korea Investment Corp. , South Korea’s $72 billion sovereign-wealth fund, found out the hard way that cutting out the middleman isn’t always easy. The fund began doing deals on its own, or “direct investing,” in the late 2000s, a shift from its practice of using private-equity firms to handle the deal making.
Direct investing allows sovereign-wealth funds to avoid paying fees to private-equity firms, which typically charge 2% on assets and take 20% of any profit, and an increasing number of funds and other big investors have been doing it. Hongchul Ahn, chairman and chief executive of KIC, said in an email last week that the fund will change its approach to direct investing after “disappointingly lower returns.”……………………………………….Full Article: Source

Rosneft Asks for $49 Billion From State Welfare Fund to Survive Sanctions

Posted on 23 October 2014 by VRS  |  Email |Print

State-owned oil major Rosneft has requested more than 2 trillion rubles ($49 billion) from one of Russia’s oil-revenue-funded, rainy-day reserves to help it weather Western sanctions, Finance Minster Anton Siluanov told news agency RIA Novosti on Wednesday.
The sum amounts to over half the cash stored in Russia’s National Welfare Fund, a sovereign wealth fund that was created as a backstop to Russia’s pension system and held 3.2 trillion rubles ($83.2 billion) as of Oct. 10………………………………………..Full Article: Source

Russia’s energy companies may seek aid from National Welfare Fund — Dvorkovich

Posted on 23 October 2014 by VRS  |  Email |Print

Russian oil and gas companies may seek financial aid from the country’s National Welfare Fund (NWF) amid Western sanctions, Deputy Prime Minister Arkady Dvorkovich said on Wednesday. “The government is ready to consider proposals on projects in the oil and gas sector,” Dvorkovich said at the national oil and gas forum.
The government has received proposals from Russia’s largest independent gas producer Novatek and oil giant Rosneft, Dvorkovich said, adding the “government will consider them seriously.”……………………………………….Full Article: Source

FG, states share $2.7bn from Excess Crude Account

Posted on 23 October 2014 by VRS  |  Email |Print

The country’s revenue fell by N99.55bn in the month of September, thereby causing the three tiers of government on Wednesday to share N2.7bn that should have been transferred to the Excess Crude Account.
The Accountant-General of the Federation, Mr. Jonah Otunla, said the technical meeting of the Federal Accounts Allocation Committee that held earlier had suggested the sharing of the $2.7bn, which ought to have been transferred to the ECA that was established to provide a buffer for the country in the face of fluctuations in international crude oil prices………………………………………..Full Article: Source

SOFAZ budget revenues exceed 10 bln manats

Posted on 22 October 2014 by VRS  |  Email |Print

The budget revenues of Azerbaijan’s state oil fund SOFAZ reached 10.131 billion manats in the third quarter of 2014. This comes as the fund’s budget expenditures constituted 8.041 billion manats during the same period of time.
“Some 9.969 billion manats was gained from the implementation of oil and gas agreements, including 9.947 billion manats from the sale of profit oil and gas, 6.8 million manats from transit payments, and 13.3 million manats from bonus payments. Revenues from payments per acre in the first half of 2014 amounted to 1.7 million manats,” SOFAZ said on October 20………………………………………..Full Article: Source

Only 4.4% of SOFAZ investment portfolio intended for active investment

Posted on 22 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ), known for its conservatism, intended no more than 4.4% of its investment portfolio or about $1.639 bn for active investment instruments.
According to the Fund, by October 1, 0.9% ($440.391 million) of its investment portfolio ($37.265 bn) was intended for project financing and 3.5% ($1.199 bn) was invested in stocks. The rest investments were passive: fixed-income securities (82.2% of portfolio), deposits and market instruments (7.4%), physical gold (3.2%) and real estate (2.8%)………………………………………..Full Article: Source

Can Nigeria Achieve A $6.3bn Excess Crude Account?

Posted on 21 October 2014 by VRS  |  Email |Print

At the recently concluded IMF/World Bank Annual Meetings, the World Bank, arguably prompted by recent global trends such as the drop in oil prices, had advised the Nigerian Federal Government to increase its fiscal buffers by raising the excess crude account from $4.1 billion to $6.3 billion, a 54 percent increase.
Dr Ngozi Okonjo-Iweala, Nigeria’s Minister of Finance, being a key representative of the country at the meeting, had re-assured Nigerians that the feat was achievable saying; “We would look at how we would strengthen the buffer. There is no cause for alarm, we are on top of the game.”……………………………………….Full Article: Source

State Oil Fund of Azerbaijan does not buy physical gold for 2 quarter at a run

Posted on 21 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has not bought physical gold for two quarters (Q2 and Q3 of 2014) at a run. The Fund informs that as of 1 October it had physical gold in the amount of $1.18 bn that was equivalent to 3.2% of its investment portfolio ($37.265 bn.
“By the reported date SOFAZ had at disposal 30.17 tons of gold (970,146 ounces),” the Fund reported. This level of reserves was similar to the indicator by 1 April 2014. Nevertheless, SOFAZ can buy more gold, at least, for $680.1 million, as investment rules allow the Fund to invest in physical gold up to 5% of its portfolio, that as of 1 October 1 was equivalent to $1.86 bn………………………………………..Full Article: Source

Oil Fund’s assets for Jan-Sept exceed $37.305 bn

Posted on 21 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) increased its assets by 3.98% for Jan-Sept 2014. According to SOFAZ, over the past 9 months of the year Oil Fund’s assets grew from $35.877 bn in early 2014 up to $37.305 bn. “During the first 9 months of 2014 Oil Fund’s revenues totaled AZN 10.1 bn and expenditures AZN 8.04 bn,” SOFAZ said in a statement.
As a result, the SOFAZ budget was implemented with surplus of AZN 2.09 bn. “Our revenues consist mainly from oil and gas PSA contracts in the amount of AZN 9.969 bn, including AZN 9.947 bn from profit oil and gas,” the Fund said………………………………………..Full Article: Source

Mainstream media gloss over GIC’s $269 million capital loss

Posted on 21 October 2014 by VRS  |  Email |Print

GIC had actually bought the property in June 2007 when the British pound was very strong against our currency at about 1GBP=$3.06. When converted into local currency, the purchase price would be a whopping $1.469 billion. GIC had therefore made a capital loss of about $269 million, a huge embarrassment to the government.
From June 2007 to October 2014, the British currency lost 33% against the Singapore dollar. GIC would of course have made some rental gains which is nothing to shout about – the property was bought near the top of the stock market cycle and rental yields and property prices are inversely correlated. Any net rental gains would have probably been offset by the capital loss and transaction costs. Our CPF investment yielded close to nothing………………………………………..Full Article: Source

SOFAZ revenues more than $2 bn from “Shah Deniz”

Posted on 20 October 2014 by VRS  |  Email |Print

The reserves are estimated at 1.2 trl of cubic meters of gas. As of October 1, 2014, since 2007 the revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project of gas condensate field “Shah Deniz” in the Azerbaijani sector of the Caspian Sea amounted to $2,006 m.
Oxu.Az reports citing Day.az that the information was provided by the State Oil Fund. According to the fund, from January to October 1, 2014 the State Oil Fund in the framework of the “Shah Deniz” project received $409 m………………………………………..Full Article: Source

Where did RM4 billion for Putrajaya’s SRC International go, asks DAP

Posted on 17 October 2014 by VRS  |  Email |Print

Prime Minister Datuk Seri Najib Razak must explain what has happened to a RM4 billion loan secured by a wholly-owned subsidiary of the Ministry of Finance, which failed to submit its annual accounts on time, a DAP lawmaker said today.
Petaling Jaya Utara MP, Tony Pua said SRC International Sdn Bhd had secured a RM4 billion Islamic loan from the government’s pension fund, Kumpulan Wang Amanah Persaraan (KWAP), and which was guaranteed by the federal government.The loan was disbursed in two tranches in August 2011 and March 2012……………………………………….Full Article: Source

Afghanistan, Kazakhstan ready to join BTK project

Posted on 17 October 2014 by VRS  |  Email |Print

Afghanistan and Kazakhstan are interested in joining the Baku-Tbilisi-Kars (BTK) railway project, Azerbaijan’s Transport Minister Ziya Mammadov told reporters on Oct.16. He made the remarks on the sidelines of the “Baku-Tbilisi-Kars railway line - new opportunities in the development of the Silk Road” international conference in Baku.
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) finances the project in accordance with the Azerbaijani president’s decree ‘On the implementation of the Baku-Tbilisi-Kars project activities’ dated February 21, 2007………………………………………..Full Article: Source

Khazanah’s SCR offer ‘fair’, says MAS

Posted on 16 October 2014 by VRS  |  Email |Print

Malaysia Airlines (MAS) says its minority shareholders should accept Khazanah Nasional Bhd’s proposed selective capital reduction and repayment exercise (SCR) for the national airline as it is “fair”. MAS directors yesterday recommended the plan after the audit committee found parent Khazanah’s offer fair and reasonable, MAS said in a filing to Bursa Malaysia.
Khazanah in August proposed 27 sen per share totalling RM1.38 billion to buy the remaining 30.6 per cent stake it doesn’t own in the airline. The sovereign wealth fund plans to delist MAS by buying out the minority shareholders in the first stage of restructuring………………………………………..Full Article: Source

MAS asks shareholders to take Khazanah’s RM1.38b offer

Posted on 16 October 2014 by VRS  |  Email |Print

Malaysian Airline System Bhd., the carrier reeling from the crash of two planes this year, said small shareholders should accept a buyout offer from the carrier’s majority owner as it called the proposal fair. The airline’s directors recommended the plan after the audit committee found parent Khazanah Nasional Bhd.’s offer fair and reasonable, the Subang, Malaysia-based company said in a statement to the stock exchange today.
In August, the sovereign wealth fund proposed 27 sen per share, totalling RM1.38 billion (US$421 million), to buy the remaining 30.6 per cent stake it doesn’t own in the company. Khazanah is delisting the airline by buying out minority shareholders in the first stage of restructuring aimed at reviving the flag carrier………………………………………..Full Article: Source

Nigeria: World Bank Tasks FG to Raise Excess Crude Account to U.S.$6.3 Billion

Posted on 16 October 2014 by VRS  |  Email |Print

The World Bank has advised the federal government to increase its fiscal buffers by raising the excess crude account (ECA) to $6.3 billion. Finance Minister, Dr. Ngozi Okonjo-Iweala, disclosed this in Washington DC, saying the World Bank tasked the Federal Government on the need to increase its fiscal buffers by building external reserves to about $6.3 billion, up from the present level of $4.1 billion.
Speaking to Nigerian journalists at the end of the 2014 annual meetings, Okonjo-Iweala assured: “we would look at how we would strengthen the buffer. There is no cause for alarm; we are on top of the game. We have to be realistic about our ability to spend.”……………………………………….Full Article: Source

Putrajaya bailing out 1MDB by boosting IPO value, says DAP lawmaker

Posted on 15 October 2014 by VRS  |  Email |Print

Putrajaya is bailing out 1Malaysia Development Bhd (1MDB) through several power plant projects worth billions of ringgit, DAP national publicity secretary Tony Pua said. Pua, the Petaling Jaya Utara MP, questioned the latest power project awarded to 1MDB – a 2,000MW gas-turbine power plant in Malacca given via direct negotiation.
He said although the government had rescued 1MDB in a written reply to his parliamentary question on a power project awarded to 1MDB, circumstances as to how the tenders were awarded suggested otherwise………………………………………..Full Article: Source

Future Fund shows punters the way

Posted on 15 October 2014 by VRS  |  Email |Print

The Future Fund is on track for to exceed its CPI plus 4.5% target this financial year, after earning a solid 2.9% in the September quarter. Australia’s sovereign wealth fund may benefit from any further outperformance of international markets. It holds a hefty 34.1% of its portfolio in global equities, including 24.4% in Developed Markets offshore, versus just 9.0% in Australian equities.
The Future Fund generated a 14.3% return in fiscal 2013-14, in creasing its value to $101.59 billion. “Globally, policy makers are seeking to balance the challenge of moving towards more normal policy settings while maintaining efforts to encourage economic growth,” Future Fund MD David Neal said. “This continues to present both risks and opportunities for investors.”……………………………………….Full Article: Source

SOFAZ earns huge profits from ACG, Shah Deniz fields

Posted on 14 October 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has made $107.254 billion of profit in a 13-year period from 2001 to October 1, 2014 by implementing the project of developing the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea. “The fund received $12.222 billion from January to October 1, 2014 within the framework of ACG project,” SOFAZ told Trend Agency on October 10.
The ACG block of fields has been active since 1997. Production first started at the Chirag part of the block. It was followed successfully by Azeri Project; Central Azeri in February 2005, West Azeri in December 2005, and East Azeri in October 2006………………………………………..Full Article: Source

FG to boost NSIA capital to $5bn through permanent funding sources

Posted on 14 October 2014 by VRS  |  Email |Print

The Federal Government is currently working out a permanent source of raising the Nigerian Sovereign Investment Authority (NSIA) capital to possibly $5 billion, Ngozi Okonjo-Iweala, coordinating minister for the economy and minister of finance, said at the weekend. At the moment, NSIA which manages the Nigerian Sovereign Wealth Fund (SWF) has some $1.55 billion capital all funded through the excess crude account, including some $550 million recently injected by the government as third party assets for the institution to manage.
In her opening remark at a private meeting on the SWF, at the sidelines of the ongoing IMF/World Bank annual meetings in Washington DC, Okonjo-Iweala said the intention is to work the capital towards $5 billion, in the first instance, and then upwards, till it grows as appropriate………………………………………..Full Article: Source

Vietnam Investment Arm Calls for Fewer State Stake Purchases

Posted on 14 October 2014 by VRS  |  Email |Print

A Vietnamese government investment arm that’s been newly charged with buying stakes in state companies with failed public offerings is calling for scaled- down purchases, countering an aggressive government plan. State Capital Investment Corp., which holds state stakes in listed companies, says it is asking the government to “narrow down and prioritize” the number of firms it has to invest in among the 340 businesses that are required to sell shares by end-2015, according to Deputy General Director Le Song Lai.
“We need from the government specific criteria for the stake purchases,” Lai said in a phone interview Oct. 10 in Hanoi. “The 340 companies is too many. It will be very hard for us to do the job with such vagueness.”……………………………………….Full Article: Source

Scentre, GIC in wrangle over fees

Posted on 13 October 2014 by VRS  |  Email |Print

While the Government Investment Corporation of Singapore is shaping up as the most likely buyer of the Westfield shopping centres in New Zealand, the owner of the properties, Westfield’s recently relaunched Australasian shopping centre landlord Scentre Group, is believed to be facing challenges convincing the sovereign wealth fund to pay up when it comes to management fees.
In a situation somewhat echoing the recent restructure of Westfield’s $70 billion global empire, the fees Scentre wants to charge GIC to manage the centres on its behalf appear to be the sticking point. Scentre’s asking price for the assets is believed to be $3bn, in a deal where Westfield would retain the right to manage the centres for a fee charged back to GIC. It is also still unclear whether the shopping centre giant would sell all or only some of the centres………………………………………..Full Article: Source

Sovereign fund chaired by PM Najib, yet 1MDB cannot furnish its accounts in time!

Posted on 10 October 2014 by VRS  |  Email |Print

After 1Malaysia Development Berhad (1MDB)’s lengthy delay in submitting its financial statements, its subsidiaries are now in the spotlight for still failing to submit their own financial statements since 2012.
Petaling Jaya Utara MP Tony Pua said the two subsidiaries, 1MDB Real Estate Sdn Bhd and 1MDB (Energy) Langat Sdn Bhd, failed to submit their financial statements since Dec 28, 2012 and Sept 21, 2012 respectively. Pua told a press conference at the Parliament lobby today that the accounts are important as it will reveal controversial dealings by the two key subsidiaries of 1MDB………………………………………..Full Article: Source

Samruk Kazyna Corporate Transformation is Set to Generate an Additional $11bn in Revenues to Kazakhstan in the Next Six Years

Posted on 10 October 2014 by VRS  |  Email |Print

Samruk Kazyna, Kazakhstan’s sovereign wealth fund managing major strategic state assets with the combined value of close to $100 bn, is overhauling its business strategy, including approaches to investments and to asset management.
New management mechanisms will soon be introduced in all of the Fund’s companies. As early as 2014, business processes reengineering will start in three pilot organizations - diversified transport holding Kazakhstan Temir Zholy, oil and gas company KazMunaiGaz and postal service operator KazPochta………………………………………..Full Article: Source

Samruk Kazyna total assets should reach $200bln: Nazarbayev

Posted on 09 October 2014 by VRS  |  Email |Print

Speaking about transformation of Samruk Kazyna Kazakhstan’s wealth fund, President of Kazakhstan Nursultan Nazarbayev said that it was supposed to lead to doubling of the Fund’s assets, Tengrinews reports.
“The Fund faces tasks of nation-wide scale. As part of the transformation, in the first place efforts should be focused on creating new value of the Fund’s companies, so that within 5 years its total assets double, meaning they should reach $200 billion, and not in 15, 20 or 50 years from now, as my friend Richard Evans [member of the Board of Directors of Samruk Kazyna] said,” Nazarbayev declared at Samruk Kazyna Transformation Forum earlier this week………………………………………..Full Article: Source

Norway to Spend More Oil Wealth, Cut Taxes

Posted on 09 October 2014 by VRS  |  Email |Print

Norway’s right-wing minority government on Wednesday proposed cutting taxes and spending more “oil cash” from the country’s sovereign-wealth fund to counter a slowdown in economic growth.
The government said it would reduce taxes by 8.3 billion Norwegian kroner ($1.28 billion), including a reduction in the wealth tax to 0.75% from 1%. The tax would now only affect those with assets exceeding 1.2 million kroner, from 1 million kroner previously………………………………………..Full Article: Source

Norway to boost oil revenue spending in 2015 to fund tax cuts

Posted on 09 October 2014 by VRS  |  Email |Print

Norway cut its growth forecast on Wednesday, citing lower oil prices and investments, and said it may lift a cap on how much of the country’s $850 billion sovereign wealth fund it can spend each year. In its first budget since taking power last year, the centre-right government of Prime Minister Erna Solberg said it will spend 3 percent of the fund’s value in 2015, up from 2.8 percent in 2014, using the money to pay for tax cuts.
That is still below the 4 percent cap on spending from the fund, into which revenues from oil, Norway’s biggest industry, are routed. But Finance Minister Siv Jensen said she was appointing a commission to examine whether the rule, for long a sacred cow of fiscal policy, needs to be changed………………………………………..Full Article: Source

1MDB’s Project 3B to raise RM8 billion with Islamic bonds

Posted on 09 October 2014 by VRS  |  Email |Print

Malaysia sovereign fund 1Malaysia Development Bhd (1MDB) will raise RM8.4 billion (US$2.56 billion) with Islamic bonds to build a power plant. 1MDB, which is chaired by Prime Minister Najib Razak, is partners with Mitsui & Co Ltd on the 2,000 megawatt coal-fired plant, known as Project 3B.
The consortium will rely on Islamic bonds to cover most of the RM11 billion needed for the project, after plans to raise RM8.4 billion via a debt programme led by Japan Bank for International Cooperation fell through, IFR said. AmInvestment Bank is the sole lead manager on the sukuk, which has been set to close by November, it added……………………………………….Full Article: Source

NZ Super Fund returns ‘exceptional’

Posted on 09 October 2014 by VRS  |  Email |Print

The New Zealand Superannuation Fund grew by almost 20 per cent to the value of $25.8 billion at the end of June thanks to strong investment returns. Chairman Gavin Walker said the performance of the fund over the past five years, when its returns have averaged 17 per cent, should be regarded as “exceptional” and were unlikely to continue.
Chief executive Adrian Orr said the prices of most investments had now returned to their long-term fair values and the fund could expect more normal returns in future. The fund slightly underperformed its reference portfolio, which is a benchmark of passive, low-cost listed investments in which the fund might expect to invest………………………………………..Full Article: Source

Oil Wealth Supports Kuwait But Challenges Ahead, Says Moody’s

Posted on 09 October 2014 by VRS  |  Email |Print

A contentious relationship between Kuwait’s government and parliament has hindered development and diversification, while high dependence on volatile oil exports is causing the Arab Gulf state’s economic performance to fluctuate, according to a new Moody’s Investors Service report.
Kuwait’s financial assets–managed mainly by the Kuwait Investment Authority–are estimated to far exceed the country’s GDP, while government debt is very low and declining as a share of GDP, Moody’s noted………………………………………..Full Article: Source

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