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Sovereign Wealth Funds Briefing - Category | Financials more

Azerbaijan’s Devaluation in Disguise

Posted on 18 February 2015 by VRS  |  Email |Print

Though Azerbaijan is not as tied to the Russian economy, it still is facing difficulties driven by the drop in oil prices. Government finances are based on a $90 a barrel price of oil while currently it is a fraction of that. Thus one of the moves is to tap the $37 billion oil fund – State Oil Fund of the Azerbaijani Republic (SOFAZ).
While some of the investment that will proceed is for prestige projects including that of the May 2015 European Games, much of it will be spent on infrastructure that should in the long-term boost the economic potential of Azerbaijan………………………………………..Full Article: Source

Temasek sold 7.3 million shares in Alibaba during rally

Posted on 17 February 2015 by VRS  |  Email |Print

Temasek Holdings sold shares in Alibaba Group Holding in the fourth quarter as the Chinese Internet firm’s shares rallied following its initial public offering in September. The Singapore investment firm sold 7.3 million American Depositary Receipts (ADR) in Alibaba, leaving it with 10.7 million shares, according to a filing with the US Securities and Exchange Commission (SEC).
The value of Temasek’s holding in Alibaba declined by US$487.5 million (S$660 million), the biggest decrease among the firm’s US-listed holdings. “They must have made about US$300 million through that sale,” said Mr Enrico Soddu, an analyst at Institutional Investor’s Sovereign Wealth Centre in London………………………………………..Full Article: Source

China’s Silk Road dream falls into place with US$40b fund

Posted on 17 February 2015 by VRS  |  Email |Print

Beijing has launched its US$40 billion Silk Road infrastructure fund along the lines of a long-term private equity venture to boost businesses in countries and regions along the route, the central bank governor said. The announcement serves as a prelude to the publication of a blueprint that sheds light on the country’s ambitions to create the New Silk Road economic belt and the 21st-century maritime Silk Road.
The fund’s investors included China’s foreign-exchange reserves, Export-Import Bank of China, China Development Bank and the country’s sovereign wealth fund, the PBOC said………………………………………..Full Article: Source

Temasek Sold Alibaba Shares Last Quarter, Added Gilead

Posted on 16 February 2015 by VRS  |  Email |Print

Temasek Holdings Pte sold shares in Alibaba Group Holding Ltd. in the fourth quarter as the Chinese Internet firm’s shares rallied following its initial public offering, and put more money into pharmaceuticals maker Gilead Sciences Inc.
Singapore’s state-owned investment firm sold 7.3 million American depositary receipts in Alibaba, leaving it with 10.7 million shares, according to a Feb. 13 filing with the U.S. Securities and Exchange Commission. The value of its holding in Alibaba declined by $487.5 million, the biggest decrease among the firm’s U.S.-listed holdings………………………………………..Full Article: Source

Malaysian Fund 1MDB Settles $550M Loan With Lenders

Posted on 16 February 2015 by VRS  |  Email |Print

Sovereign wealth fund 1Malaysia Development Bhd has settled a 2 billion ringgit ($550 million) loan with Malaysian lenders, its president said on Friday, a move that could help the state-backed investor move forward with a $3 billion initial public offering.
According to a media report posted on the fund’s Facebook and Twitter accounts, 1MDB President Arul Kanda said, “the loan was settled in advance of the due date, per the terms of the loan facility agreement………………………………………..Full Article: Source

World’s biggest wealth fund has peaked as oil sinks, Norway says

Posted on 16 February 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund has reached its peak amid a collapse in oil prices, according to the governor of Norway’s central bank. The development means western Europe’s biggest crude producer needs to get used to lower revenue from its petroleum industry, Governor Oeystein Olsen said in the text of a speech delivered in Oslo on Thursday.
“At an oil price of around US$60 per barrel, transfers to” the wealth fund “may come to a halt,” he said. As head of the central bank, Olsen oversees Norway’s US$860 billion Government Pension Fund Global………………………………………..Full Article: Source

Return on assets of the Oil Fund of Azerbaijan fell to 1.43%

Posted on 12 February 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan Republic (SOFAZ) reports about drop in return on assets in 2014. According to SOFAZ, by the end of the last year return on assets fell to 1.47% (to 1.43% taking into account gold) against 1.77% in 2013 and 2.16% in 2012. Return on assets reached its peak in 2007 (4.49%), and over the last 10 year it was estimated at the average level of 2.56%.
Last year investments into bonds brought 0.7% of return, investments into shares – 0.3%, investments into deposits – 0.18%, using money market instruments – 0.01%, investments into real estate – 0.24%. Investments into gold were unprofitable (-0.05%)………………………………………..Full Article: Source

State Oil Fund of Azerbaijan did not buy physical gold for 3 quarters at a run

Posted on 12 February 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) did not buy physical gold over three quarters in a row (2nd, 3rd and 4th quarters of 2014). The Fund informs that as of 1 January 2015 it owned physical gold worth $1.15 bn which was equivalent to 3.13% of its investment portfolio ($36.7 bn).
“By the reported date SOFAZ had 30.17 tons of gold (970,146 ounces of gold),” SOFAZ said in a statement. This level of reserves conformed to the indicator by 1 April 2014………………………………………..Full Article: Source

Yield of Azerbaijan’s oil fund in euro reached 10.04% of yield

Posted on 12 February 2015 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has called the euro the most successful investment in 2014. SOFAZ reports that last year its investments in euro (EUR 10.25 bn or 33.9% of assets) ensured for it 10.04% of yield in base currency, including 8.57% from currency difference.
At that, the operations in the base currency, the U.S. dollar, were unprofitable (-2.79%), including losses from exchange rate difference (-4.27%). The Fund kept $19.869 bn or 33.9% of its assets in the American currency. Assets in the British currency were estimated at 1.159 bn pounds (4.9% of all assets) and in the Australian currency- $214.9 (0.5%)………………………………………..Full Article: Source

Enough with the lies – how involved is Jho Low with 1MDB?

Posted on 10 February 2015 by VRS  |  Email |Print

DAP National Publicity Secretary Tony Pua has accused 1Malaysia Development Berhad (1MDB) and Jho Low of hiding the truth from Malaysians regarding the latter’s apparent non-involvement in the government’s sovereign wealth fund. Quoting an expose by the New York Times and more shocking revelations by the Sarawak Report that showed otherwise, the MP for Petaling Jaya Utara said, “it is now clear that both Jho Low and 1MDB have at best, been economical with the truth. At worst, they are lying through their teeth to Malaysians.
In the NYT expose, three people who had regular dealings with 1MDB said Low was “regularly consulted”, something Pua pointed out, that Low himself had admitted to when he agreed he was consulted from “time to time and without receiving compensation”………………………………………..Full Article: Source

Oil To Account For Only 5% Of UAE’s GDP By 2021- Deputy PM

Posted on 10 February 2015 by VRS  |  Email |Print

The contribution of oil revenues to the UAE’s GDP is set to drop from around 30 per cent at present to only five per cent by 2021, the country’s deputy PM said on Monday. Speaking at the Government Summit in Dubai, Sheikh Saif bin Zayed, who is also the UAE’s Interior minister, said that the current drop in oil prices was a “challenge, but not a crisis.”
Sheikh Saif stressed that the country was diversifying into sectors such as investment – through institutions such as sovereign wealth fund ADIA, and into developing its human resources. “While oil is considered the wealth of a country, our true wealth lies in investing in the mind, investing in the education of our children,” he said………………………………………..Full Article: Source

The State Oil Fund of Azerbaijan announced growth of its assets by 3.42% in 2014 in spite of AZN 1.612 bn loss

Posted on 10 February 2015 by VRS  |  Email |Print

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) announced growth of its assets by 3.42% in 2014. According to the Fund, last year SOFAZ assets grew from $35.877 bn up to $37.104 bn. Budget revenues of SOFAZ for 2014 reached AZN 12.731 bn, while budget expenditures constituted AZN 10.117 bn. In other words, SOFAZ budget was executed with surplus of AZN 2.613 bn.
According to the Fund, revenue of AZN 12.343 bn was received from implementation of oil and gas agreements, including AZN 12.319 bn from the sale of profit oil and gas, AZN 1.7 million as acreage fees, AZN 8.9 million as transit payments, AZN 13.3 million as bonus payments and AZN 0.1 million from the sale of assets received from foreign companies. The revenues from managing assets of the Fund for 2014 amounted to AZN 387.2 million………………………………………..Full Article: Source

SOFAZ assets jump

Posted on 10 February 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ which is in charge of accumulating and managing the country’s oil and gas revenues, announced about the increase in its assets. The fund reported that its assets increased by 3.42 percent as of January 1, 2015, compared to $35.877 billion in early 2014 and exceeded $37.104.
SOFAZ revenues totaled 12.731 million manats while budget expenditures constituted 10.117, 2 billion manats. Revenue of 12.343, 8 billion manats was received from the implementation of oil and gas agreements, including 12.319, 8 billion manats from the sale of profit oil and gas, 8.9 million manats as transit payments, 13.3 million manats as bonus payments………………………………………..Full Article: Source

Temasek tells S&P: S’pore is not debt-ridden Greece

Posted on 09 February 2015 by VRS  |  Email |Print

A plan by ratings agency Standard & Poor’s to overhaul the way it rates investment holding companies has drawn a strongly worded response from Temasek Holdings.The Singapore investment firm noted that the “confusing” proposal lumps Singapore together with countries such as Jamaica and even Greece, which is battling a debt crisis.
Temasek has issued bonds targeted at professional investors. It has previously said that it is also looking at offering retail bonds.Temasek spokesman Stephen Forshaw said a company should be rated based on its underlying credit quality, according to business and financial factors………………………………………..Full Article: Source

Australia’s Future Fund surges; aims to reduce risk

Posted on 06 February 2015 by VRS  |  Email |Print

Australian sovereign wealth fund, the Future Fund, said a dramatic fall in the local currency helped it return 13 percent in calendar 2014, as it moves to de-risk its portfolio to offset volatile commodity and equity markets. The fund set up in 2006 to cover public servant pensions, grew by nearly A$13 billion ($10 billion) to A$109 billion by Dec. 31, partly by boosting cash to 12.8 percent of its portfolio from 9 percent a year earlier.
The fund reduced its investments in equities over the year due to increased market volatility, said managing director David Neal. Developed global equities were cut to 20.9 percent of the portfolio from 24.5 percent a year earlier, and Australian equities to 8.8 percent from 10.1 percent………………………………………..Full Article: Source

Future Fund assets swell to $109 billion

Posted on 06 February 2015 by VRS  |  Email |Print

Australia’s Future Fund assets have swelled to $109 billion after investments in private equity and infrastructure and a shift into US dollars, and away from the Australian dollar, helped it generate a 13.2 per cent return in 2014. But as interest rates fall and central banks hit their limits the fund’s investment team is warning of lower returns and rising economic and investment risks as it moved more than $5 billion of assets into cash.
Stephen Gilmore, the head of risk and investment strategy warned that the investment environment was becoming more challenging as risks are rising when falling interest rates are reducing returns……………………………………….Full Article: Source

Norway Oil Fund Divests Risky Assets

Posted on 06 February 2015 by VRS  |  Email |Print

Norway’s sovereign-wealth fund on Thursday said it divested itself from 49 risky assets in 2014 due to uncertainty about the sustainability of their business models. The world’s biggest fund, which has been built on the country’s oil and gas revenues, said it divested from companies that could be exposed to new climate and environmental regulations. The companies were predominantly in coal and gold mining.
“We have gradually increased the scope of risk-based divestments, both geographically and thematically,” said the fund’s Chief Executive Yngve Slyngstad. “In total, we have divested from 114 companies in the past three years.”……………………………………….Full Article: Source

Russia’s ‘anti-crisis’ fund has little to spare

Posted on 06 February 2015 by VRS  |  Email |Print

As Russia grapples with plunging oil prices and Western sanctions, attention is focusing on a $74 billion National Wealth Fund used to help the country weather crises. The NWF was used heavily in 2009 to fund emergency measures for banks and companies during the economic downturn, and it has been tapped in recent months to help firms cope with sanctions imposed over the Ukraine conflict - leading some to dub it an “anti-crisis fund”.
Last week, Russia announced a $35 billion “anti-crisis” spending plan to help the economy. But conflicting government statements have sown confusion about how exactly Moscow will finance the new measures as the country heads for recession and companies struggle to refinance their debts………………………………………..Full Article: Source

Australia’s $85 Billion Sovereign Fund Cuts Stocks to Add Cash

Posted on 05 February 2015 by VRS  |  Email |Print

Australia’s Future Fund, the country’s sovereign wealth manager, moved more of its A$109.2 billion ($85 billion) into cash and pared equity holdings in anticipation of continued volatility in global markets.
The Melbourne-based fund lowered its allocation to global stocks to 30.3 percent as of Dec. 31, down 2.8 percentage points from a year earlier, according to an e-mailed statement today. Cash holdings rose 3.8 percentage points to 12.8 percent. Private equity and property allocations also increased, while the fund reduced investments in debt and Australian shares. The Future Fund posted a 13.2 percent return in 2014………………………………………..Full Article: Source

1MDB’s debt burden sparks fears of fallout for Malaysian economy

Posted on 05 February 2015 by VRS  |  Email |Print

When Ananda Krishnan, Malaysia’s second-richest man, sold a collection of power plants to a little-known fund called 1MDB in 2009, few outside Southeast Asia’s third-largest economy paid any attention. But reports that the 76-year-old tycoon, whose fortune is estimated by Forbes at $9.8bn, is close to getting his hands back on some of those assets have catapulted the now heavily indebted state-run 1MDB - or 1Malaysia Development Berhad - into the spotlight.
Set up six years ago, 1MDB has no less a figure than the country’s prime minister, Najib Razak, chairing its advisory board, while Goldman Sachs, the Wall Street bank, has twice arranged multibillion-dollar debt issues for it……………………………………….Full Article: Source

Temasek Leads Series D Round In Data Analytics Company Manthan System; IDG Ventures, DFJ Exit

Posted on 05 February 2015 by VRS  |  Email |Print

Singapores’s sovereign wealth fund, Teamsek has led an investment round worth R370 Cr in big data analytics firm, Manthan Systems, buying out existing investors IDG Ventures and DFJ eVentures. Other existing investor Norwest Ventures also participated in this fourth round.
Fidelity has partially exited with this investment. The valuation of the current round is not ascertained, however reports previously pegged the latest round’s valuation to be around R5000 Cr. Manthan’s will use the investment to accelerate its focus on consumerization of technology, boost the SaaS adoption of its product portfolio, for product development and to expand its marketing footprint globally………………………………………..Full Article: Source

Resurgent banking market sees Irish SWF shift to junior debt, equity funding

Posted on 04 February 2015 by VRS  |  Email |Print

A resurgent banking sector has seen the Ireland Strategic Investment Fund (ISIF) reassess its role as debtor to Irish companies, with rising competition from lenders leading the sovereign wealth fund to consider other roles.
Donal Murphy, the €7.1bn fund’s head of infrastructure and credit finance, told IPE the funding gap that existed after the financial crisis was often no longer there, replaced by a “wall of liquidity coming from bank debt back into Ireland”. “There are plenty of scenarios where there is a very competitive bank market with a large number of banks seeking roles on individual transactions and individual deals,” he said………………………………………..Full Article: Source

Russia to spend $7.9 bln from wealth fund on infrastructure projects-minister

Posted on 04 February 2015 by VRS  |  Email |Print

Russia’s economy minister said on Tuesday the government planned to spend 525 billion roubles ($7.9 billion) from the state’s National Wealth Fund to support infrastructure projects including one to produce liquefied natural gas, Yamal LNG.
The money from the fund will not be used for state anti-crisis spending programme, the minister, Alexei Ulyukayev, told reporters after President Vladimir Putin met officials at a residence outside Moscow……………………………………….Full Article: Source

China’s NSSF returns 11.43%

Posted on 03 February 2015 by VRS  |  Email |Print

The National Social Security Fund (NSSF), China’s supplementary pension fund, realised a return of 11.43% on investment in 2014, boosting its total AUM to more than 1.5 trillion RMB (US$240 billion), according to a report from Securities Daily. This beat the returns of 6.2% and 7% achieved in 2013 and 2012, respectively. China’s CPI inflation rate lingered somewhere between 1.4% and 2.5% in 2014.
“The NSSF has displayed an inflation-beating [average] return of 8.5% per annum since its inception in 2000. Over the previous seven to eight years, our equities investments have not only managed to deliver better than market performance, but they also outperformed the fund’s fixed income return,” Wang Zhongmin, the fund’s vice chairman, said during a conference in Beijing………………………………………..Full Article: Source

Sharp rise for Uganda NSSF profit

Posted on 02 February 2015 by VRS  |  Email |Print

The National Social Security Fund (NSSF) has recorded a 23% increase in operating profit for half year ending December 31, 2014 when compared to the same period in the last fiscal year.
The Fund reports better returns on its investments and better cost management. Profit before interest for the six months increased to Ushs202 billion up from Ushs156 billion during the same period last Financial Year. Over the same period, NSSF’s total assets grew from Ushs3.9 trillion to Ushs4.9 trillion………………………………………..Full Article: Source

Bidders line up for $5bn port contest

Posted on 02 February 2015 by VRS  |  Email |Print

Global Infrastructure Partners has teamed up with Queensland Investment Corporation and ­Borealis in the contest to buy the Port of Melbourne, which could sell for as much as $5 billion. The consortium, advised by Credit Suisse and Gresham, will compete with other parties for Australia’s busiest container and cargo port, being sold by advisers Morgan Stanley and Flagstaff.
Other bidders known to be ­preparing to compete in the sales process are IFM, advised by JPMorgan, and Hastings Funds Management together with Wren House, which are advised by Royal Bank of Canada and UBS. Wren House is the infrastructure arm of sovereign wealth fund Kuwait ­Investment Authority………………………………………..Full Article: Source

Chinese money flows into UK

Posted on 02 February 2015 by VRS  |  Email |Print

Chinese companies are increasingly investing in the United Kingdom’s infrastructure sector, with the potential to invest 105 billion pounds ($170 billion) in the energy, property and transport sectors by 2025. In the years following the outbreak of the global financial crisis, Chinese companies and sovereign wealth funds have invested in UK infrastructure projects as financial investors.
In 2012, China Investment Corp, the country’s sovereign wealth fund, bought an 8.68 per cent stake in Thames Water Utilities Ltd and a 10 per cent stake in Heathrow Airport Holdings. In 2011, Cheung Kong Infrastructure Holdings purchased the UK utility company Northumbrian Water for 2.4 billion pounds. ……………………………………….Full Article: Source

1MDB is turning into a serial borrower

Posted on 02 February 2015 by VRS  |  Email |Print

Petaling Jaya Utara MP Tony Pua, look at it this way. The PM (as chairman of the sovereign fund) is caught between a rock and a hard place. If the loan is not repaid, those banks that lend the money to 1MDB (1Malaysia Development Berhad) would be in trouble in respect of their capital ratio adequacy caused by the non-performing loan (NPL) and BNM (Bank Negara Malaysia) would be forced to take action.
This is turn might cause a severe stress on the financial and banking system which the central bank can ill-afford at the present time………………………………………..Full Article: Source

Disgraceful for M’sia that Najib’s 1MDB has to ‘beg’ RM2 bil from Ananda to repay overdue loan

Posted on 02 February 2015 by VRS  |  Email |Print

It is a complete embarrassment for the Malaysian Government that 1Malaysia Development Bhd (1MDB) had to stoop to begging a loan from billionaire Ananda Krishnan to repay an overdue RM2 billion debt.
Yesterday, it was reported by both Reuters and The Edge Financial Daily that businessman Tan Sri Ananda Krishnan is understood to have firmed up an agreement to loan beleaguered 1Malaysia Development Bhd (1MDB) as much as RM2 billion to help the strategic investment fund settle a debt obligation to Malayan Banking Bhd (Maybank) and RHB Bank Bhd due at the end of this month. ……………………………………….Full Article: Source

What does AK want in return?

Posted on 02 February 2015 by VRS  |  Email |Print

The Treasury must come clean and make public all the terms behind Ananda Krishnan’s RM2bn rescue of the government investment company 1Malaysia Development Bhd, the DAP’s publicity secretary Tony Pua, said.
He said it was “a complete embarrassment” for the government that 1MDB “had to stoop to begging a loan” from billionaire Ananda Krishnan to repay 1MDB’s overdue RM2 billion debt to Malayan Banking and RHB Bank. Ananda Krishnan (AK) sold his power-generatIng group Tanjung Energy to 1MDB, which paid him through a two-part loan totalling RM5.5bn, the Edge has previously reported. It said there were no problems with the first part, a RM3.5bn 10-year loan. ……………………………………….Full Article: Source

Canary Wharf Group directors to pocket £23m from Qatari-led takeover

Posted on 30 January 2015 by VRS  |  Email |Print

Directors of Canary Wharf Group are in line for a £23m windfall following the £2.6bn Qatari-led takeover of the property firm’s parent. Sir George Iacobescu, the head of Canary Wharf Group, will get the biggest share, £3.8m, from the sale of his Songbird shares to the Qatari Investment Authority and Canadian firm Brookfield Properties.
In 2013, Iacobescu was awarded more shares that have not been released yet and would be worth a further £2.3m, taking his potential total windfall to £6.1m. A Romanian engineer who escaped Nicolae Ceauşescu’s communist regime in the 1970s, Iacobescu has been involved in the construction of the Docklands financial district in east London from its beginnings in the late 1980s……………………………………….Full Article: Source

Ananda Krishnan to lend 1MDB up to RM2 billion to settle debts

Posted on 30 January 2015 by VRS  |  Email |Print

Businessman T. Ananda Krishnan (AK) is understood to have firmed up an agreement to loan beleaguered 1Malaysia Development Bhd (1MDB) as much as RM2 billion to help the strategic investment fund settle a debt obligation to Malayan Banking Bhd (Maybank) and RHB Bank Bhd due at the end of this month, sources say.
It is understood that the loan, however, is merely an interim measure. “It (the loan) is more for 1MDB to clear this obstacle – the two banks – than anything else. The two (AK and 1MDB) are still looking at how to resolve the issue,” the source said……………………………………….Full Article: Source

Where is 1MBD’s RM7bil in Cayman Islands?

Posted on 30 January 2015 by VRS  |  Email |Print

1Malaysia Development Berhad’s (1MDB) future looks really bleak. If, as according to this report, that it has to sell its stake in order to pay its debt every month, then eventually it will have nothing left when all its properties are sold.
Secondly, it seems like a desperate measure of a person who is about to go bankrupt, when it (1MDB) sells its property (Edra Global Energy Bhd) back to the same person, T Ananda Krishnan, who sold the property to them two years ago……………………………………….Full Article: Source

Khazanah raises RM1.62 billion from placement of 2% stake in Tenaga

Posted on 30 January 2015 by VRS  |  Email |Print

CIMB Investment Bank Bhd and Credit Suisse (Singapore) Ltd, as joint bookrunners, have today successfully completed a placement of 112 million existing shares, representing a 2% stake in Tenaga Nasional Bhd.
The shares were placed out at RM14.50 each, and raised gross proceeds of RM1.62 billion for Khazanah Nasional Bhd. The placement price represents a 2% discount to the closing market price on Jan 28, 2015, of RM14.80 per share……………………………………….Full Article: Source

2014 state budget’s revenues hit 18 bln manats

Posted on 30 January 2015 by VRS  |  Email |Print

According to operative data, revenues of Azerbaijan’s state budget amounted to 18.4 billion manats, while expenditures-to over 18.699 billion manats in 2014, Finance Ministry said on January 28. The country’s state oil fund SOFAZ transferred 9.3 billion manats to the state budget as well.
Some 24 percent or 4.5 billion manats of expenditures were used for spending of social means, which is 9.9 percent or 403.9 million manats more compared to 2013……………………………………….Full Article: Source

Malaysia’s Khazanah selling Tenaga stake worth up to $454 mln-term sheet

Posted on 29 January 2015 by VRS  |  Email |Print

Malaysian state investor Khazanah Nasional Bhd is selling 112 million shares worth up to $454 million in Malaysia’s largest power group Tenaga Nasional Bhd, according to a term sheet seen by Reuters on Wednesday.
The shares are being priced at between 14.40 and 14.60 ringgit per share, according to the sheet, which is equivalent to a discount of about 1.35 to 2.7 percent to the closing price of Tenaga’s shares on Wednesday………………………………………..Full Article: Source

NZ Super Fund returns 13.89pct in 2014

Posted on 29 January 2015 by VRS  |  Email |Print

The New Zealand Superannuation Fund returned 13.89 percent during 2014, ending the year worth $27.54 billion, but it’s warning of lower returns in the future. The sovereign wealth fund was set up to help fund universal superannuation for future generations but the Government suspended annual capital contributions in July 2009 in order to pay down debt.
The Guardians of the Fund calculate that if government contributions had continued as set out in the legislation the fund would now be worth $43.4b. As at December 31, 2014, capital contributions not made totalled around $11.68b. They are forecast to re-start in 2020/21………………………………………..Full Article: Source

1MDB Said to Seek Loan Extension Before $3 Billion Energy IPO

Posted on 28 January 2015 by VRS  |  Email |Print

1Malaysia Development Bhd. is planning to seek another one-month extension on a 2 billion ringgit ($554 million) loan to give it more time to sell a stake in its energy unit, two people familiar with the matter said.
The state-owned investment company needs more time to repay the debt as it’s still in discussions with billionaire T. Ananda Krishnan, Malaysia’s second-richest person, said the people who asked not to be named as the process is private………………………………………..Full Article: Source

Moody’s: Abu Dhabi’s assets buffer oil price drop

Posted on 28 January 2015 by VRS  |  Email |Print

According to Moody’s while the drop in oil prices will likely cause Abu Dhabi’s (Aa2 stable) economic growth to slow in 2015 and put an end to four consecutive years of double-digit fiscal surpluses, the emirate’s sizeable stock of foreign assets will help cushion the impact of lower oil revenues in the coming years.
The emirate also has a sizeable stock of offshore assets in its off-budget investment vehicles, including in the Abu Dhabi Investment Authority (ADIA), Abu Dhabi Investment Council, International Petroleum Investment Company (IPIC) and Mubadala. These exceed the total liabilities of Abu Dhabi government-related institutions and other emirate governments, according to Moody’s………………………………………..Full Article: Source

Shahmar Movsumov: “Low oil price means decline of SOFAZ assets by $3 bln”

Posted on 27 January 2015 by VRS  |  Email |Print

Low oil price means decline of SOFAZ assets by $3 bln, Executive Director of the State Oil Fund of Azerbaijan (SOFAZ) Shahmar Movsumov said. According to him, eh raw material prices will probably be stabilized in the second half of 2015: “It’s clear that no one expects rebound of these prices as in 2009-2010, however it will exceed the current level”.
Though economic development weakened due to oil price decline, Azerbaijan could keep its exchange rate: “GDP growth made 2.8% in 2014 in connection with decline of oil production over 2%, while it was 5.8% in 2013. Central Bank spent $1.13 bln from its financial resources to keep exchange rate of manat stable in December”……………………………………….Full Article: Source

Lone Star checks into Jurys Inn with £680m deal

Posted on 27 January 2015 by VRS  |  Email |Print

Jurys Inn became the latest target for Lone Star on Monday when the US distressed-debt investor swooped on the Irish and British hotel chain, ending years of debt restructuring at the company that was saddled with leverage at the height of the property boom. In 2008, Quinlan Private sold a 50 per cent stake to the Oman Investment Fund, one of the fund’s first investments, but along with other Irish property groups, Jurys Inn’s debts quickly soured during the downturn.
Think of a Gulf sovereign wealth fund with a penchant for investing in Britain. The names of Kuwait or Qatar will probably be first to the lips of many City dealmakers, writes Joseph Cotterill. The Sultanate of Oman keeps to a lower profile. Yet the region’s largest non-Opec oil producer has not one but two internationally active SWFs, each with investments beyond the Gulf norm………………………………………..Full Article: Source

Azeri Oil Fund to Invest $500 Million in Yuan, Keep Ruble Assets

Posted on 26 January 2015 by VRS  |  Email |Print

Azerbaijan’s State Oil Fund, known as Sofaz, will invest $500 million in yuan assets this year and continue to pursue real estate across Asian markets to diversify its portfolio, the fund’s executive director said.
“At the end of last year, we approved a quota to invest in the renminbi,” Shahmar Movsumov said in an interview in Davos, Switzerland, referring to the Chinese currency also known as the yuan. “We’re completing all the necessary paperwork and this year will start investing the whole amount” of $500 million………………………………………..Full Article: Source

Russians party on in Davos as vodka flows, Ukraine in havoc

Posted on 26 January 2015 by VRS  |  Email |Print

VTB Bank isn’t letting a bad year get in the way of a good party. Executives at the state-controlled Russian bank, which has cut hundreds of employees following U.S. and European Union sanctions, are betting a little jazz and vodka with the world’s elite will dull the pain.
Kirill Dmitriev, the CEO of Russia’s main sovereign-wealth fund, plans to be fully involved with the week’s events. Dmitriev’s Russian Direct Investment Fund is one of the sponsors of a dinner for sovereign-wealth funds. The executive plans to give a speech and use the event to build relationships with “funds from Asia, the Middle East, and Latin America.”……………………………………….Full Article: Source

Russia faces $40bn battle to stave off banking crisis

Posted on 26 January 2015 by VRS  |  Email |Print

Russia may have to spend more than $40bn this year to avert a banking crisis, as the growing likelihood of a sharp recession threatens to pile extra costs on a sector suffering from Western sanctions over Ukraine and a plunge in the rouble.
Russian banks are seeing a deterioration in their loan quality, a rise in their risk management costs and increase in their cost of funding, and banking executives and analysts predict things are going to get worse. This represents a major challenge to President Vladimir Putin, who took power 15 years ago in the ashes of a crisis that wiped out the financial system, and whose popularity partly rests on his reputation for restoring stability………………………………………..Full Article: Source

Mumtalakat won’t sell assets to plug shortfall

Posted on 26 January 2015 by VRS  |  Email |Print

Bahraini sovereign fund Mumtalakat will not sell any assets or change its investment strategy in response to a likely oil price-driven shortfall in the state budget, it said. The fund holds stakes in Bahraini companies including Alba, Gulf Air and Batelco.
Mumtalakat is fully state-owned, but unlike a sovereign wealth fund it receives no surplus cash from the government, investing money generated from its own returns. State inflows to sovereign funds are in doubt this year across the Gulf region………………………………………..Full Article: Source

Samruk-Kazyna cuts spendings by $1.83 bln in 2015

Posted on 23 January 2015 by VRS  |  Email |Print

Samruk-Kazyna will reduce its spending by 337 billion tenge ($1.83 billion) in 2015, Tengrinews reports citing the press service of the company. The National Welfare Fund Samruk-Kazyna, is a sovereign wealth fund and joint stock company in Kazakhstan which owns, either in whole or in part, many important companies in the country, including the national rail and postal service, the state oil and gas company KazMunayGas, the state uranium company Kazatomprom, Air Astana airlines, and numerous financial groups.
The state is the sole shareholder of the fund. Umirzak Shukeyev is Chief Executive Officer and Chairman of the Management Board of Samruk-Kazyna. Independent directors are Alexander Mirtchev, Sir Richard Harry Evans and Nigel John Stapleton………………………………………..Full Article: Source

Bahraini fund Mumtalakat won’t sell assets to plug any budget shortfall

Posted on 23 January 2015 by VRS  |  Email |Print

Bahraini sovereign fund Mumtalakat will not sell any assets or change its investment strategy in response to a likely oil price-driven shortfall in the state budget, it said on Thursday.
The fund holds stakes in Bahraini companies including Aluminium Bahrain, Gulf Air and Batelco. Mumtalakat is fully state-owned, but unlike a sovereign wealth fund it receives no surplus cash from the government, investing money generated from its own returns………………………………………..Full Article: Source

GPT taps market to fund buyback of note

Posted on 23 January 2015 by VRS  |  Email |Print

GPT Group’s decision to tap the market for $375 million to pay for its buyback of a note held by its former white knight investor has been welcomed, but has also raised questions about GPT’s next step.
The proceeds will be used to redeem a $250m perpetual note issued to Singaporean sovereign wealth fund GIC in 2008 that carries a 10 per cent coupon………………………………………..Full Article: Source

GPT Group raises $325m as Singapore’s GIC exits

Posted on 22 January 2015 by VRS  |  Email |Print

The GPT Group has raised $325 million from institutional investors after agreeing to buy back a perpetual note held by its one-time “white knight”, Singaporean sovereign wealth fund GIC. The redemption of the note marks GIC’s exit from the company it aided in November 2008 in the depths of the financial crisis.
The investment has produced handsome returns for GIC, with yesterday’s deal on the note alone reaping the fund $75m. It has also received more than $100m in interest payments over the five years. In May last year, GIC sold its 8 per cent stake in GPT that was then valued at more than $500m………………………………………..Full Article: Source

SOFAZ investment portfolio hits 28 bln manats

Posted on 22 January 2015 by VRS  |  Email |Print

The predicted cost of the investment portfolio of Azerbaijan’s state oil fund SOFAZ was set at 28.2 billion manats for 2015. On January 19, Azerbaijani President Ilham Aliyev issued a decree approving the main directions (programs) on use of SOFAZ funds for 2015.
Forecasts for 2014 were set at the level of 27 billion manats, 25.2 billion manats in 2013, and 23 billion manats in 2012. “In 2015, SOFAZ will implement an investment policy, which allows obtaining the maximum yield at a low risk of loss of main capital,” the fund said………………………………………..Full Article: Source

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