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Singapore’s GIC exits Indian FMCG firm Marico

Posted on 16 July 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has exited Indian FMCG company Marico completely and is estimated to have pocketed around Rs 600 crore ($95 million) by selling its remaining 2.47 per cent stake in the maker of Parachute coconut hair oil and edible oil brand Saffola, a report said.
GIC had earlier made a partial-exit from Marico. Last year, GIC part-exited Marico, through a secondary market transaction and had got about $32 million from the sale, and at that time, it was estimated to have doubled its investment………………………………………..Full Article: Source

1MDB looms large over politics as fund is wound down

Posted on 15 July 2015 by VRS  |  Email |Print

Long after its demise, Malaysia’s state investment company may loom large over the country’s politics and the future of Prime Minister Datuk Seri Najib Razak. The brainchild of Najib, debt-ridden 1Malaysia Development Bhd’s six-year existence has been dogged by controversy, culminating in a decision to wind it down even before multiple investigations were started into its finances.
With Najib now fending off a Wall Street Journal report that US$700 million connected to 1MDB may have wended its way into his bank accounts, the fund risks having an outsized effect on affairs in Malaysia through to the next election due by 2018………………………………………..Full Article: Source

Abu Dhabi Investment Authority Unloads General Growth shares

Posted on 15 July 2015 by VRS  |  Email |Print

The General Growth Properties Inc’s insider Abu Dhabi Investment Authority unloaded – 110,000 shares of General Growth Properties Inc, based on the average price of stock which is $26.5 for each one share. This sale of shares currently has a value of approx. $2,915,770 U.S. Dollars.
The deal was revealed in a filing submitted with the U.S. Security & Exchange Commission on July 13, 2015, which is available for access here. And, It’s sure Abu Dhabi Investment Authority’s sell isn’t going to stay unnoticed as the insider right now is having ownership of 38.60 million shares……………………………………….Full Article: Source

Minister of Finance: Oil Fund will reduce its transfers to Azerbaijan budget in 2016

Posted on 15 July 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) will continue to reduce its transfers to the state budget. According to Samir Sharifov, Azerbaijan’s Minister of Finance, the draft state budget for 2016 and next three years is already under preparation.
“Currently we analyze domestic and foreign macroeconomic situation, priorities and targets of the social and economic development. At the same time, when drafting budget documents we try to reduce SOFAZ transfers in order to preserve the Fund’s assets at the maximum level,” Sharifov said………………………………………..Full Article: Source

Temasek gets nod to become bigger contributor to Government’s income

Posted on 14 July 2015 by VRS  |  Email |Print

The amendment to the Constitution will allow the Government to include Temasek Holdings as a contributor to the Net Investment Returns framework. A constitutional change to make Temasek Holdings a bigger contributor to the Singapore Government’s income was passed on Monday (Jul 13).
The Constitution of the Republic of Singapore (Amendment) Bill will allow the Government to include Temasek as a contributor to the Net Investment Returns (NIR) framework as Singapore seeks to make investments in healthcare, human capital and transport infrastructure in the coming years………………………………………..Full Article: Source

SOFAZ reveals volume of ACG project revenues

Posted on 14 July 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ received some $114 billion from the implementation of the project for development of Azeri-Chirag-Guneshli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea from early 2001 to July 1, 2015.
SOFAZ said it received $3.721 billion in H1 of 2015, including $650 million in June within the ACG project, SOFAZ told Trend. The contract for development of ACG field was signed in 1994. The proven oil reserve of the block nears 1 billion metric tons………………………………………..Full Article: Source

Low tax and high fees consume Future Fund

Posted on 13 July 2015 by VRS  |  Email |Print

When leaked documents describing the tax avoidance arrangements of 340 companies were published in November last year, one of the most surprising names to appear among the papers was the Future Fund, Australia’s sovereign wealth fund. Roughly 28,000 pages of documents were dissected by newspapers across the globe, which laid out special tax deals granted by the Luxembourg tax authorities to some of the world’s largest corporations.
Those accused of conducting tax avoidance on an industrial scale, and whose names were hauled through the press, included Pepsi, Ikea, Burberry, Procter & Gamble, Heinz, JPMorgan and FedEx………………………………………..Full Article: Source

SGRF working to retrieve investment in Corpbank

Posted on 13 July 2015 by VRS  |  Email |Print

Oman’s State General Reserve Fund (SGRF) has said that it is seriously working to protect its investment in Bulgaria’s bankrupt Corporate Commercial Bank (CCB). Last week, there were media reports that Oman, represented by SGRF, had initiated a lawsuit against the Bulgarian government following the bankruptcy of CCB, based on information from an unnamed source.
SGRF, in a statement on its website, said that it cannot comment on information from anonymous sources. “However, it is seriously working to protect its investment in CCB and observing all CCB related updates.” Bulgarian lender CCB was shut down last year by Bulgaria’s central bank after a bank run in June 2014. ……………………………………….Full Article: Source

Finance sector spurs 14% rise in foreign direct investment in Abu Dhabi

Posted on 13 July 2015 by VRS  |  Email |Print

Foreign direct investment in Abu Dhabi grew 14 per cent last year, driven by increased financial sector spending, according to data from the Statistics Centre Abu Dhabi. Large oil surpluses, and the country’s cash-rich sovereign wealth funds, allow the government to invest abroad as a buffer against changes in the oil price and the UAE’s economic health. These investments abroad considerably outweigh investments made by foreigners in the UAE.
This is also why foreign governments visit the UAE to attract investments from Abu Dhabi Investment Authority and Mubadala, which have combined assets under management of about $840bn, according to the Sovereign Wealth Fund Institute………………………………………..Full Article: Source

Qatar National Bank Q2 net profit rises 10%, beats forecasts

Posted on 10 July 2015 by VRS  |  Email |Print

Qatar National Bank (QNB), which is 50 per cent owned by sovereign wealth fund Qatar Investment Authority, beat analysts’ expectations on Wednesday as it posted a 10 per cent increase in second-quarter net profit, according to Reuters calculations.
The bank, the largest lender in the Gulf Arab region, reported a net profit of QAR 2.91bn ($799.2m) for the three months to June 30, compared with QAR 2.64bn in the corresponding period of last year, Reuters calculated. The bank did not provide a quarterly results breakdown in its earnings statement………………………………………..Full Article: Source

Temasek Zones in on Biotech, Consumer Stocks to Broaden Assets

Posted on 09 July 2015 by VRS  |  Email |Print

Temasek Holdings Pte is shaking up its asset mix with a push into biotechnology and consumer companies that stand to benefit from aging populations and increasing disposable incomes.
Singapore’s state-investment firm singled out life sciences and agriculture as well as consumer goods among the top three industries it allocated money to in the fiscal year ended March 31, helping its portfolio value reach a record. It added assets in U.S. pharmaceutical firm Gilead Sciences Inc, Indian drugmaker Intas Pharmaceuticals Ltd, and health and beauty retailer A.S. Watson during that period………………………………………..Full Article: Source

We want partnerships with global financial institutions: Hassan Bouhadi LIA chairman

Posted on 08 July 2015 by VRS  |  Email |Print

‘‘Our aim at the LIA is to stay above the political fray. Appointing a Receiver is the right and responsible thing to do’’, explained Hassan Bouhadi, the chairman of the Libya Investment Authority (LIA) in London speaking exclusively to Libya Herald. Bouhadi was in the LIA’s London office overseeing the High Court case last Thursday.
The High Court had made an order appointing a Receiver to protect and pursue the interests of the LIA in its ongoing litigations against Goldman Sachs and Société Générale in the Chancery Division and the Commercial Court, London. The LIA is Libya’s main Sovereign Wealth Fund institution with diverse worldwide investments estimated at $67 billion in 2013 by auditors………………………………………..Full Article: Source

Sharing ECA dangerous - FRC

Posted on 08 July 2015 by VRS  |  Email |Print

Acting chairman of the Fiscal Responsibility Commission (FRC) Raymond Omachi has warned that sharing the outstanding balance in the Excess Crude Account (ECA) is dangerous for the country. He disclosed this during an interactive session with journalists in Abuja at the weekend.
“No country or governments can survive without savings because it would put them in a more difficult position if they do not allow for legitimate savings that they can fall back on in the times of dare need. “We think the ECA should be a collecting account for savings from where we can now pay into the sovereign wealth fund,” he said………………………………………..Full Article: Source

SOFAZ revenues exceed expectations

Posted on 07 July 2015 by VRS  |  Email |Print

The assets of Azerbaijan’s state oil fund SOFAZ exceeded 29.28 billion manat as of 2014 compared to about 28.31 billion manat in 2013, the SOFAZ report audited by PriceWaterhouseCoopers Audit Azerbaijan reads. some 25.62 billion manat of the total assets accounted for the current assets, but about 3.66 billion manat – long-term assets.
According to the report, SOFAZ received 12.73 billion manat in 2014 (compared to the projected figure of 11.63 billion manat). SOFAZ’s expenses exceeded 10.1 billion manat in 2014 compared to 10.6 billion manat envisaged in the budget………………………………………..Full Article: Source

Singapore’s Temasek surfs worldwide rally as assets reach new high

Posted on 07 July 2015 by VRS  |  Email |Print

Temasek Holdings Pte rode a rally in global equities with a focus on developed markets that probably helped the Singapore state-owned investor’s assets reach a record. Assets at the firm, which releases results this week, may have increased 16 per cent to 18 per cent to as much as S$263 billion (RM740 billion) in the year to March 31, according to estimates by Institutional Investor’s Sovereign Wealth Center and CMC Markets.
That would be the biggest jump in assets in five years and surpass last year’s all-time high of S$223 billion. “They had a great year for their equity investments,” said Nicholas Teo, a Singapore-based strategist at CMC Markets who has been following Temasek’s annual results over the last 10 years. “It shows how aggressive their investment style is compared to other state investors.”……………………………………….Full Article: Source

China’s biggest ETF sees record trading after Beijing unveils rescue plan

Posted on 07 July 2015 by VRS  |  Email |Print

China’s biggest exchange-traded fund (ETF) jumped more than 6 percent on Monday in record turnover, in the clearest sign yet that money from Chinese brokerages, mutual funds and sovereign wealth funds could be flowing into blue chips as part of a rescue package unveiled over the weekend.
The China 50 ETF, which buys into shares of the 50 biggest companies listed in Shanghai, registered turnover of 24.9 billion yuan ($4.01 billion), more than double the previous session. The huge money inflows into the China 50 ETF, which has heavy exposure to financial and energy heavyweights, anchored investor sentiment in Monday’s volatile trading session, and fuelled speculation that Beijing’s “stability fund” was at work………………………………………..Full Article: Source

China Sovereign Fund Returns Drop on Dollar, Commodities

Posted on 06 July 2015 by VRS  |  Email |Print

China Investment Corp., the nation’s $740 billion sovereign wealth fund, said returns on its overseas investments fell for a second year as a strong dollar and weak commodity prices eroded the value of its portfolio.
The return dropped to 5.47 percent last year from 9.33 percent a year earlier, according to the Beijing-based company’s 2014 annual report released Friday. Net income at the fund, which holds government stakes in China’s biggest banks, rose 2.5 percent to $89.1 billion, the report showed………………………………………..Full Article: Source

China sovereign wealth fund expands by $125 billion

Posted on 06 July 2015 by VRS  |  Email |Print

Sovereign wealth fund China Investment Corp (CIC) saw its total assets soar by US$93 billion (S$125 billion) to nearly US$750 billion last year, it said Friday, although subdued global growth slowed returns on its overseas portfolio.
CIC was created in 2007 with US$200 billion to make better use of China’s colossal foreign exchange reserves, which amounted to US$3.73 trillion this March. Its total assets expanded to US$746.73 billion by the end of 2014, an increase of US$93.5 billion, CIC said in its annual report………………………………………..Full Article: Source

China sovereign wealth fund overseas returns fall, but assets swell by US$93b

Posted on 06 July 2015 by VRS  |  Email |Print

Assets at sovereign wealth fund China Investment Corp grew by US$93 billion to nearly US$750 billion last year, it reported, although subdued global growth slowed returns on its overseas portfolio. CIC was created in 2007 with US$200 billion to make better use of foreign exchange reserves, which have grown to US$3.73 trillion as of March this year.
Its total assets expanded to US$746.73 billion by the end of 2014, an increase of US$93.5 billion, CIC said in its annual report. But returns on the overseas portfolio dropped to 5.47 percent, down from 9.33 percent in 2013 and the weakest since 2011, according to the document. “During 2014, the global economy recovered at a slower speed than expected,” Ding Xuedong, chairman and chief executive officer of CIC, said in the report………………………………………..Full Article: Source

China sovereign fund net profit surges in 2014

Posted on 06 July 2015 by VRS  |  Email |Print

China Investment Corporation (CIC), the sovereign wealth fund, reported a huge net profit increase in 2014 in the company’s annual report, released Friday. Net profits hit 89.1 billion U.S. dollars last year, 2 billion dollars more than the previous year.
CIC branches abroad reported a net investment profit margin of 5.47 percent in 2014, lower than the annual average rate of 5.66 percent registered since the founding of the company in 2007. The company’s total assets surpassed 740 billion U.S. dollars, according to the report………………………………………..Full Article: Source

KIC doubles Alts allocation and shoots for $100bn AUM

Posted on 06 July 2015 by VRS  |  Email |Print

Korea Investment Corporation’s total assets under management are expected to surpass $100 billion by the end of 2015, says the sovereign wealth fund’s president and CEO. The fund intends to increase the proportion of its investment in alternative assets from the current 8% to 15% by the end of this year, with the intention of maintaining a high return profile for the fund.
Eventually the alternative proportion will be increased to 20% within five years. Hong-Chul ‘Hank’Ahn, KIC’s CEO & president, said the alternative investments structure and portfolio assets will be similar to those of the Yale University endowment, CalPERS and the Canada Pension Plan Investment Board. Although CalPERS has moved to lower its exposure to alternatives this year, the aforementioned institutions have typically held around 20% of their assets in alternative strategies……………………………………….Full Article: Source

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

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