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Bahrain Sovereign Fund Plans to Beat 2014 Foreign Deal Flow

Posted on 28 May 2015 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund intends to complete more acquisitions this year than in 2014 as it diversifies its international holdings and pursues a goal of doubling in size. Bahrain Mumtalakat Holding Co. completed four acquisitions in 2014, Chief Executive Officer Mahmood Al Kooheji said Wednesday in a telephone interview from Manama.
The fund has already made two acquisitions this year and expects to announce at least two more before the end of 2015, he said. Mumtalakat will continue to focus on co-investing with other firms to expand its $11.1 billion of assets in the next seven years, Kooheji said…………………………………Full Article: Source

Bahrain fund Mumtalakat rejects mismanagement claims as 2014 profit rises

Posted on 28 May 2015 by VRS  |  Email |Print

The head of Bahrain sovereign fund Mumtalakat has rebutted allegations made by some parliamentarians that the fund has been financially mismanaged, pointing on Wednesday to increased earnings as proof of its performance. The fund, which holds stakes in Bahraini companies including Aluminium Bahrain (Alba), Gulf Air and Batelco, posted a 10.8 per cent increase in net profit in 2014 as higher revenue outpaced a rise in impairments.
Gulf sovereign wealth funds are facing growing pressure to prove they are wisely investing national reserves, as lower oil prices force governments to consider cutbacks to infrastructure programmes and generous state subsidies. Earlier this year Bahrain’s parliament launched a probe of Mumtalakat, looking at alleged administrative violations at the fund after an audit report revealed irregularities at Bahraini state companies…………………………………Full Article: Source

Singapore’s Temasek reduces stake in Amyris Biotech

Posted on 28 May 2015 by VRS  |  Email |Print

Temasek Holdings has reduced its stake in Amyris Biotechnologies by 1.12 per cent, to 39,340,967 shares. The Singapore based fund now owns 36.12 per cent of the industrial bioscience materials company. Currently, Amyris has a market capitalisation of $160.65 million.
The company focuses on leveraging its bioscience technology to develop and provide renewable compounds for different industries. The firm applies an industrial bioscience technology platform to provide alternatives to select petroleum-sourced products that are used in the consumer care, specialty chemical and transportation fuel sectors……………………………………Full Article: Source

Temasek-Backed InnoVen Seeks Asia Expansion to Fill Lending Gap

Posted on 28 May 2015 by VRS  |  Email |Print

InnoVen Capital India, controlled by Temasek Holdings Pte, is seeking to expand its venture debt business across Asia as banks in the region shy away from lending to early-stage companies.
The seven-year-old Mumbai firm plans to use its underwriting model honed in India to expand into Southeast Asia this year and later to China, Chief Executive Officer Ajay Hattangdi said in a May 26 interview. InnoVen has provided debt to over 50 venture capital-backed companies including Snapdeal.com, the Indian web marketplace backed by billionaire Masayoshi Son’s SoftBank Corp……………………………………Full Article: Source

Zeti says report about 1MDB account in Singapore received

Posted on 27 May 2015 by VRS  |  Email |Print

Bank Negara has received information from the Monetary Authority of Singapore (MAS) about an account connected to 1Malaysia Development Bhd (1MDB) in BSI Bank Ltd in the republic, Bank Negara governor Tan Sri Zeti Akhtar Aziz said.
In a Bernama report, Zeti said Bank Negara had received a report from MAS about an account linked to the debt-ridden strategic investment firm at the Swiss-based BSI Bank. She said a report from MAS would be shared with other Malaysian agencies, but declined to name them for confidentiality…………………………………..Full Article: Source

What exactly are 1MDB assets in S’pore bank?

Posted on 26 May 2015 by VRS  |  Email |Print

This smells fishy. How could a statement on a paramount issue like 1Malaysia Development Berhad (1MDB) be casually written by a lowly ministry official without the approval of the finance minister whose job is on the line?
If indeed the minister did not vet through the statement as alleged given the severity of the matter, then the rakyat should seriously question the type of the minister we have put in charge of running our country. It would be little wonder that the country is in a state it is now………………………………………..Full Article: Source

Nigeria earned N12.3 trillion as excess crude oil money in 4 years – Okonjo-Iweala

Posted on 26 May 2015 by VRS  |  Email |Print

Nigeria earned a huge $61.7 billion (about N12.3 trillion) in four years as excess crude oil money, the finance minister, Ngozi Okonjo-Iweala, said Saturday. According to the minister, Nigeria earned about $18.14 billion in 2011; $18.16 billion in 2012; $15.19 billion in 2013; $8.01 billion in 2014, and $2.17 billion in 2015.
The Excess Crude Account is one of the two accounts (dollar and Naira) where the Nigerian government saves revenue earnings from the difference between budgeted benchmark crude oil price and the actual price at the international market in a given year………………………………………..Full Article: Source

Fortis redeems FCCBs worth $100m held by GIC: Report

Posted on 25 May 2015 by VRS  |  Email |Print

Fortis Healthcare, the second-largest Indian hospital chain by revenues, has redeemed $100 million worth of outstanding foreign currency convertible Bonds (FCCBs) listed on the Luxembourg Stock Exchange, a report said.
The report by VCCircle said these FCCBs were purchased by Singapore sovereign wealth fund GIC in May 2010. These bonds were optionally convertible at Rs 167 ($2.63) per share with a yield-to-maturity of 5.537 per cent per annum. As of May 2015, Fortis maintains a market capitalisation of $1.23 billion, according to a Reuters quote………………………………………..Full Article: Source

Restructuring plans for 1MDB to be tabled next week to Cabinet

Posted on 22 May 2015 by VRS  |  Email |Print

1Malaysia Development Berhad’s (1MDB) restructuring report is expected to be tabled to the Cabinet next week, Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah said. He said the restructuring of the alleged debt-ridden government investment arm was possible and he had concrete plans on how to do so.
“Whenever you want to do a restructuring, firstly you have to know what their position is, which is very clear.Then you have to look at how to go from there and for that we have concrete plans. I’m completing the report and next week I will table it to the Cabinet. After that maybe we can announce the next part of 1MDB’s restructuring,” Ahmad Husni said………………………………………..Full Article: Source

Ahmad Husni: 1MDB’s US$1b assets in BSI Bank was ‘mistaken’ as cash

Posted on 22 May 2015 by VRS  |  Email |Print

Second Finance Minister Datuk Seri Ahmad Husni Mohamad says 1Malaysia Development Bhd (1MDB) has made a mistake and misinterpreted the nature of its assets kept in BSI Bank in Singapore. “I feel it was a mistake, a mistake in the nature that it was interpreted when 1MDB said that it had redeemed (US$1.1 billion from Cayman Islands) and kept it in a bank in Singapore,” he told reporters at Parliament lobby.
Ahmad Husni explained that it was “assets” and not cash that was redeemed from Cayman Islands as reported before. “It is actually savings (in the form of unit)… that is unit, that it is, unit that is being backed by the sovereign wealth fund,” he said………………………………………..Full Article: Source

Cash, then assets, 1MDB funds in Singapore now in ‘units’

Posted on 22 May 2015 by VRS  |  Email |Print

1Malaysia Development Berhad (1MDB) is experiencing “short term” cashflow problem with the ability to pay its debts, said Finance Minister II Datuk Seri Husni Hanadzlah. He assured that the Government would find a solution for the debt-laden government investment arm.
“The problem is a short term cashflow problem, that is all. We will settle it. In terms of asset quality, they have the assets to pay all. It is only a short term cashflow problem,” he told reporters at Parliament lobby, Thursday. Husni said 1MDB might have misinterpreted the investment of US$1.103bil (RM4bil) in BSI Bank (Singapore) Ltd………………………………………..Full Article: Source

Negative Rates in Europe, Shifted Sovereign Fund Behavior

Posted on 21 May 2015 by VRS  |  Email |Print

Asian and Middle Eastern sovereign wealth funds and large pension investors have been awarding a slurry of mandates to opportunistic credit managers. For example, in May, the £4.8 billion London Pensions Fund Authority hired Apollo Global Management for a £150 million allocation to target distressed debt, real estate debt, leveraged senior loans and private lending in developed markets.
hina Investment Corporation (CIC) recently moved forward on a deal to invest in WLR Cardinal Mezzanine Fund, a €350 million debt fund, co-managed by private equity firm WL Ross & Co. and Dublin-based Cardinal Capital Group. These public institutional investors have been trying to decrease any unnecessary long-term exposure to the European sovereign debt market………………………………………..Full Article: Source

Investment Corporation of Dubai posts 83% profit rise

Posted on 20 May 2015 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD) posted an 83.5 per cent increase in profit during the first half of last year compared with the year-earlier period, the sovereign wealth fund said. Net profit attributable to the equity holders of ICD rose to Dh12.08 billion in the six months ended June 30 compared with Dh6.58bn in the year-earlier period, the fund said in a statement to Nasdaq Dubai.
ICD did not give a reason for the profit increase. Revenue increased by nearly 14 per cent to Dh98bn in the first half of last year from Dh86bn in the year-earlier period. Total assets grew 5.8 per cent to Dh643.7bn from Dh608.3bn in the comparable period the previous year………………………………………..Full Article: Source

After latest funding, Flipkart valued at $15 billion

Posted on 20 May 2015 by VRS  |  Email |Print

Flipkart has raised $550 million from some of its existing investors, in a deal that now values the company at about $15 billion, The Wall Street Journal reported on Tuesday, citing an unnamed source.
In December, the online e-commerce player had got a cash infusion of $700 million, raising a total of nearly $2 billion in 2014. Morgan Stanley Investment Management, DST Global, run by Russian billionaire Yuri Milner, Singapore sovereign-wealth fund GIC, Scotland-based independent investment firm Baillie Gifford and Hong Kong’s Steadview Capital are among some of Flipkart’s existing investors………………………………………..Full Article: Source

Azerbaijani State Oil Fund reveals revenues from Shah Deniz project

Posted on 19 May 2015 by VRS  |  Email |Print

The revenues of Azerbaijani State Oil Fund from the implementation of the project for development of Shah Deniz project totaled $2.237 billion since 2007 to May 1, 2015, SOFAZ told Trend May 18.
SOFAZ said its revenues from Shah Deniz project stood at $117.2 million in Jan.-Apr. 2015, including $37.7 million in April. The contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field’s reserve is estimated at 1.2 trillion cubic meters of gas………………………………………..Full Article: Source

POSCO to finalize cooperation deal with Saudi fund

Posted on 18 May 2015 by VRS  |  Email |Print

POSCO Co., South Korea’s largest steelmaker, likely will sign a comprehensive cooperation deal with South Arabia’s sovereign wealth fund next month that includes the sale of a stake in its construction unit, industry sources said Sunday.
POSCO was supposed to complete the deal with the Public Investment Fund (PIF) earlier last month to sell a 38 percent stake in POSCO Engineering & Construction for about US$1 billion………………………………………..Full Article: Source

Alaska Permanent Fund returns 2.8% in quarter, up 4.7% for 9-month period

Posted on 14 May 2015 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 2.8% in the quarter ended March 31 and 4.7% in the fiscal year-to-date, said a news release from the $53.9 billion sovereign wealth fund. The fund’s strategic risk benchmark returned 2.2% and 2.7%, respectively, during the same periods. The permanent fund’s fiscal year ends June 30.
For the quarter, the best-performing asset class was the fund’s outsourced CIOs at 4.7%, followed by global equities at 3.4%. The rest of the asset classes were international equity, which returned 2.9%; private equity, 2.7%; domestic equity and real estate, 2.5% each; international fixed income, 2.2%; domestic fixed income, 1.6%; absolute return and infrastructure, 1.3% each; multiasset emerging markets, 0.5%; and private markets OCIOs, -1.2%……………………………….Full Article: Source

KIC portfolio ends 2014 at $84.7 billion, up 17.6% from year before

Posted on 13 May 2015 by VRS  |  Email |Print

Korea Investment Corp.’s investment portfolio was valued at $84.7 billion at the end of 2014, up 17.6% from the year before, said its latest annual report, released Monday. For the year, KIC posted a total investment gain of $2.7 billion, or 3.8%, on total assets under management after costs, and 9.79% against a basket of 33 currencies used by the sovereign wealth fund. For the past five years, the corresponding figures for the fund’s annualized returns were 7.43% and 5.66%, respectively.
A KIC spokesman couldn’t immediately explain why the fund’s year-end value of $84.7 billion was up a much stronger 17.6% for the year. At the end of 2014, equities accounted for 43.8% of KIC’s portfolio, down from 48.4% the year before. Fixed income, meanwhile, stood at 39.2% of the portfolio, up from 34.3% the year before………………………………………..Full Article: Source

Temasek’s contribution sought for govt coffers

Posted on 13 May 2015 by VRS  |  Email |Print

A constitutional change was sought yesterday to make Temasek Holdings a bigger contributor to the Government’s coffers, as Singapore prepares for more social and infrastructure spending. The Constitution of the Republic of Singapore (Amendment) Bill - one of six new Bills tabled in Parliament yesterday - will allow the Government to include Temasek in its Net Investment Returns framework.
Set up in 2009, the framework allows the Government to spend up to half of the long-term investment returns on the net assets managed by the Monetary Authority of Singapore and GIC. Yesterday’s proposed amendment will bring Temasek into the fold………………………………………..Full Article: Source

How the QIA Deal for Claridge’s Hotel Group Came Together

Posted on 13 May 2015 by VRS  |  Email |Print

Two weeks ago, a press release from Colony Capital, the Los Angeles-based real estate firm run by Thomas Barrack, ended one of the highest profile and most acrimonious property battles of recent times. Colony announced that Constellation Hotels Holding, an arm of the Qatar Investment Authority (QIA), had bought Irish investor Paddy McKillen’s 36 percent stake of the Maybourne Hotels Group, handing control to the sovereign wealth fund.
The deal represents the denouement of an epic struggle for control of three of London’s most storied hotels — Claridge’s, the Berkeley, and the Connaught — that has pitted the brothers David and Frederick Barclay, billionaire owners of the Telegraph Media Group and the Ritz Hotel in London, against McKillen and Derek Quinlan, a former tax inspector turned major property investor, both aligned with QIA………………………………………..Full Article: Source

Russia Wealth Fund to Team With China for $25 Billion of Lending

Posted on 11 May 2015 by VRS  |  Email |Print

Russia’s sovereign wealth fund will join China Construction Bank Corp. to deliver as much as $25 billion in loans as western sanctions push President Vladimir Putin to look to Asia for financing. China Construction Bank will provide 85 percent of loans each totaling as much as $1.5 billion, with the Russian Direct Investment Fund lending the other 15 percent, RDIF Chief Executive Kirill Dmitriev said in a phone interview.
RDIF is a unit of Vnesheconombank, the state development bank. “In essence, we guarantee a part of the loan,” Dmitriev said. As many as 70 of Russia’s largest companies could borrow under the plan, he said………………………………………..Full Article: Source

Shardul Amarchand, JSA, Khaitan act on Temasek Avantha buy

Posted on 08 May 2015 by VRS  |  Email |Print

J Sagar Associates (JSA) and Khaitan & Co advised Advent International Corporation and Temasek Holdings on their Rs 2,000 crore ($311m) buy of Crompton Greaves’ consumer electrical business from Avantha Holdings which was advised by Amarchand Mangaldas’ Delhi office.
JSA partners Somasekhar Sundaresan, Vikram Raghani, Manisha Kumar and Gautam Gandotra, senior associates Neha Varma and Bir Bahadur Sachar and associates Upamanyu Talukdar and Sujay Athani, and Khaitan partners Haigreve Khaitan, Aakash Choubey, Niren Patel, Arindam Ghosh, Avaantika Kakkar and Adheesh Nargolkar, associate partner Ashwin Bishnoi and executive director Daksha Baxi acted for Advent and Temasek………………………………………..Full Article: Source

Sembcorp Industries posts 23% drop in Q1 net profit

Posted on 08 May 2015 by VRS  |  Email |Print

Sembcorp Industries, whose biggest shareholder is Temasek Holdings, reported a 23 per cent drop in first-quarter net profit and warned of challenges facing its Singapore energy and marine businesses.
Sembcorp earned S$142.2 million in the three months ended March, down from S$184.8 million in the same period a year ago. Net profit from its utilities business fell 19 per cent to S$74.5 million, while earnings from its marine operations declined 13 per cent to S$64.7 million. Sembcorp’s turnover fell 11 per cent to S$2.3 billion during the first three months of 2015………………………………………..Full Article: Source

Hong Kong Monetary Authority racks up HK$85.9 billion in forex losses over 15 months

Posted on 08 May 2015 by VRS  |  Email |Print

The Hong Kong Monetary Authority needs to improve its foreign exchange trading strategies after racking up a grand total of HK$85.9 billion in forex losses over the past 15 months. Cutting exposure to the yen, euro and pound and using hedging tools are among the investment advice offered by currency traders.
“The HKMA could be a better currency trader if it could adjust its currency mix in the near future,” said Jasper Lo Cho-yan, marketing director of Tung Shing Futures. He said the HKMA had to reduce its exposure to the yen, pound and euro………………………………………..Full Article: Source

Ireland’s sovereign wealth fund relaunches with EUR1bln investment

Posted on 05 May 2015 by VRS  |  Email |Print

Ireland’s sovereign wealth fund is set to re-emerge as a significant investor in the country’s recovering economy after the €64bn Irish banking collapse drained its resources during the crisis. The Ireland Strategic Investment Fund is the successor to the National Pension Reserve Fund, a rainy-day vehicle established in 2001 when the country was flush with Celtic Tiger-era cash.
One of the NPRF’s purposes was to provide for an expected explosion in pension payments as the Irish population ages after 2025. At its peak just before the Irish banking crisis of 2008-10, the NPRF had assets of €23bn and a broad investment portfolio. It received a cash injection each year from central government equivalent to 1 per cent of Irish gross national product………………………………………..Full Article: Source

Norway’s $900 Billion Fund Might Stop Getting Fresh Cash

Posted on 05 May 2015 by VRS  |  Email |Print

What happens to a wealthy, oil-reliant nation when crude prices collapse and unprecedented monetary easing threatens to scupper returns for its sovereign wealth fund? Yngve Slyngstad, who manages Norway’s $900 billion wealth fund, has said many times in the past year that in a low-and even negative-interest rate world the fund will not be able to hit its expected 4 percent real return.
The real world impact is that fiscal spending will need to be checked. The Norwegian government has a self-imposed rule capping use of the fund’s money in its budget to the expected return………………………………………..Full Article: Source

Australia’s Future Fund heavy in cash

Posted on 05 May 2015 by VRS  |  Email |Print

Australia’s A$117 billion ($90.9 billion) Future Fund is holding more cash this year, as the hunt for value in global markets becomes increasingly challenging. “We’ve always thought quite hard and quite deeply about the option value of cash,” concluding that cash doesn’t have to be a “drag … on your portfolio, provided you have a process in place and a governance in place” to deploy it when the time is right, David Neal, the Future Fund’s managing director, said.
The topic is relevant to a central debate among asset owners over whether the deluge of central bank liquidity inflating market valuations now will succeed in returning the global economy to sustainable growth………………………………………..Full Article: Source

Temasek unit, Abu Dhabi fund said to plan sale of UAE firm Dunia

Posted on 05 May 2015 by VRS  |  Email |Print

Abu Dhabi fund Mubadala Development Co. and a unit of Singapore’s Temasek Holdings are among shareholders exploring the sale of U.A.E. consumer finance company Dunia, four people with knowledge of the plan said.
The shareholders, which also include Abu Dhabi-listed Waha Capital PJSC and family-owned Arenco Group, are seeking to hire a financial adviser for the sale shortly, according to the people. A full sale of Dunia may fetch about US$500 million, two of the people said, adding a formal process was yet to begin………………………………………..Full Article: Source

Abu Dhabi SWF in $2.4 billion Hong Kong hotel deal

Posted on 05 May 2015 by VRS  |  Email |Print

Sovereign wealth fund (SWF) the Abu Dhabi Investment Authority (ADIA) will pay HK$18.5 billion (US$2.4 billion) for a 50% stake in three Hong Kong hotels, in what is the latest example of a Gulf wealth fund investing into the territory’s real estate market. As part of the deal, ADIA, one of the world’s richest SWFs, will form a 50/50 joint venture (JV) with Hong Kong conglomerate New World Development (NWD) – the current owner of the properties – to which 100% of the hotels’ share capital will be transferred.
The three properties are the Grand Hyatt Hong Kong, the Renaissance Harbour View, and the Hyatt Regency Hong Kong. Going forward, the new JV will seek to pursue other investments in the hospitality industry, a statement issued by NWD said. Founded in 1976, ADIA is the world’s second largest SWF, with approximately US$773 billion in assets, according to data from the Sovereign Wealth Fund Institute………………………………………..Full Article: Source

How NZ Super’s Portuguese Bank Loan Went Awry

Posted on 04 May 2015 by VRS  |  Email |Print

The New Zealand Superannuation Fund appears to have made a rare misstep with its investment in Portugal’s Banco Espirito Santo, which led to a $150 million write-down and left the fund embroiled in two separate court cases. But are angry stakeholders treating the fund too harshly?
It was supposed to be a low-risk investment. On July 3, 2014, the New Zealand Superannuation Fund teamed up with New York-based Goldman Sachs Group and a number of asset management firms to provide a $784 million loan to Lisbon-based Banco Espirito Santo (BES), then Portugal’s largest listed bank, in a complex arrangement involving a vehicle named Oak Finance Luxembourg. Shortly thereafter, things began to go wrong………………………………………..Full Article: Source

Norway sovereign fund produces record €42bn 1Q return

Posted on 04 May 2015 by VRS  |  Email |Print

Norway’s €825n sovereign wealth fund made its highest-ever quarterly return of €42bn (NOK401bn) in the first three months of 2014, driven by a sharp value rise in its equities portfolio and outperformance from its listed real estate.
The €825bn Government Pension Fund Global, managed by Norges Bank Investment Management, in 1Q14 returned 5.3% on investments, of which equity investments, 62.5% of total assets, returned 7.5% while fixed income returned 1.6%. Investments in real estate returned 3.1% with unlisted holdings returning 1.6% despite a negative currency impact of 1pt and listed real estate returning by 8.1%, reflecting strong performance in Europe and globally. NBIM is a prominent investor in European property groups including France’s Gecina, Germany’s Deutsche Annington and Britain’s Land Securities………………………………………..Full Article: Source

Record returns for Norway’s sovereign wealth fund

Posted on 04 May 2015 by VRS  |  Email |Print

Norway’s state-owned pension fund, the world’s largest sovereign wealth fund, on Wednesday reported a record quarterly return, owing primarily to the European Central Bank’s easing of monetary policy. For the first three months of the year, the fund yielded a return of 5.3 percent, or 401 billion kroner (47.8 billion euros, $52.7 billion), the Norwegian central bank said.
The fund, whose value amounted to 7.01 trillion kroner (836 billion euros, $922 billion) at the end of the quarter, is managed by the central bank. The quarterly result was the highest ever registered by the fund, which has been fuelled since 1996 by Norway’s oil revenues which are then reinvested abroad………………………………………..Full Article: Source

Norwegian sovereign wealth fund achieves highest quarterly return

Posted on 30 April 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund achieved a return of 5.3 percent, or 401 billion kroner (53 billion U.S. dollars), in the first quarter of 2015, the highest ever quarterly return in krone terms, the fund said on Wednesday.
Previously the two best quarters in the fund’s history in krone terms were back in 2009 when the fund returned 270 billion kroner in the second quarter and 325 billion kroner in the third, according to a statement of the fund, formally known as the Government Pension Fund Global (GPFG) and ranked as the world’s biggest sovereign wealth fund………………………………………..Full Article: Source

Norway Wealth Fund Has Record Gain as ECB Feeds Stock Surge

Posted on 30 April 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund gained a record 401 billion kroner ($53 billion) in the first quarter after unprecedented monetary stimulus drove up the value of its equity holdings. The 5.3 percent increase in the first three months of the year was driven by a 7.5 percent rise in its stock portfolio, the $900 billion fund said in Oslo on Wednesday. Its bonds returned 1.6 percent while real estate rose 3.1 percent.
“There were big price movements in the European market,” Yngve Slyngstad, chief executive officer of the fund, said in a statement. “After a weak return on European stocks last year, the market rallied in the first quarter.”……………………………………….Full Article: Source

Oman fund, Spanish firm to finance Spanish companies abroad

Posted on 30 April 2015 by VRS  |  Email |Print

Oman’s largest sovereign wealth fund and Spain’s Compania Espanola de Financion del Desarollo have agreed to establish a fund, initially 200 million euros ($220 million) in size, to finance Spanish firms, the Omani fund said on Wednesday.
The State General Reserve Fund (SGRF) said it had reached the agreement after talks between the Omani and Spanish governments. The SGRF is estimated to have assets of about $13 billion, according to the Sovereign Wealth Fund Institute, which tracks the industry………………………………………..Full Article: Source

Future Fund posts 20pc one-year return

Posted on 29 April 2015 by VRS  |  Email |Print

The $117 billion Future Fund has returned 20 per cent over the past 12 months and 15 per cent for the first nine months of the financial year. In a portfolio update as at 31 March 2015, the sovereign wealth fund announced a one-year return of 19.9 per cent, which is well above its target return of 6.1 per cent.
Since 2006, Future Fund has generated investment returns of $56.5 billion on the original contributions from government which were valued at $60.5 billion at the time of transfer. Future Fund chair Peter Costello said the fund’s “patient and disciplined approach to investing for the long term has delivered well”………………………………………..Full Article: Source

Future Fund tops up on cash, warns some assets “overpriced”

Posted on 29 April 2015 by VRS  |  Email |Print

The Future Fund has increased its cash holdings to 15 per cent over the last quarter, signifying a growing sense of caution at Australia’s sovereign wealth fund as it seeks safe haven at a time of record low interest rates and “overpriced” assets. More than $17 billion, or 15.2 per cent of the fund’s assets were held in low-returning cash at the end of the March quarter, up from $14 billion or 12.8 per cent at the end of the December quarter.
Fund managers tend to move to cash to protect their investments from losses in the event of a downturn. But a macro-economic environment dominated by ultra-low rates and even negative yields in some parts of the world means that in this cycle, cash returns will be poor………………………………………..Full Article: Source

Future Fund tops up on cash, warns some assets “overpriced”

Posted on 29 April 2015 by VRS  |  Email |Print

The Future Fund has increased its cash holdings to 15 per cent over the last quarter, signifying a growing sense of caution at Australia’s sovereign wealth fund as it seeks safe haven at a time of record low interest rates and “overpriced” assets.
More than $17 billion, or 15.2 per cent of the fund’s assets were held in low-returning cash at the end of the March quarter, up from $14 billion or 12.8 per cent at the end of the December quarter. Fund managers tend to move to cash to protect their investments from losses in the event of a downturn. But a macro-economic environment dominated by ultra-low rates and even negative yields in some parts of the world means that in this cycle, cash returns will be poor………………………………………..Full Article: Source

Australia’s Future Fund returns 15.1 per cent, but future high returns hard to match

Posted on 29 April 2015 by VRS  |  Email |Print

Australia’s sovereign wealth manager, the Future Fund, returned 15.1 per cent for the first nine months of the financial year on strong growth for all of its asset classes, but warned that recent high returns would be hard to match in the future.
The fund set up in 2006 by the federal government to cover pension liabilities for its public servants, grew to A$117 billion (US$92 billion) by the end of March, it said in a statement. Established with contributions of $60.5 billion, the fund’s return for the financial year to date is higher than its three- and five-year returns of 14.9 per cent and 11.6 per cent, respectively………………………………………..Full Article: Source

ISIF May Allocate €1 Billion to Irish Projects for 2015

Posted on 28 April 2015 by VRS  |  Email |Print

Irish Strategic Investment Fund (ISIF), a strategic development sovereign wealth fund (SDSWF), plans to allocate between €500 million and €1 billion to projects and investments in Ireland for the remaining part of the year. The ISIF has a number of mandates which include generating commercial returns, boosting Ireland’s economy and domestic job creation.
The ISIF is looking at over 100 proposals, building a pipeline of deals. Some allocations have been in Movidius and Malin Corporation. ISIF is also investigating opportunities to fill the investment gap in residential development construction. ISIF manages the remaining €7.4 billion left from the National Pension Reserve Fund (NPRF). ISIF is run by Ireland’s National Treasury Management Agency………………………………………..Full Article: Source

Khazanah says ‘too early to tell’ if MAS revamp will be successful

Posted on 24 April 2015 by VRS  |  Email |Print

Malaysian state-owned investment arm Khazanah Nasional Bhd managing director Tan Sri Azman Mokhtar said it was still “too early to tell” if loss-making Malaysian Airline System (MAS) would be successfully turned around under its restructuring.
Khazanah had privatised and delisted MAS in December 2014 to restructure the airline within five years. MAS’s revamp follows two aviation mishaps involving the airline last year. These mishaps had resulted in MAS posting a net loss of RM1.33 billion in the nine months ended September 30, 2014 from a net loss of RM830.25 milllion a year earlier………………………………….Full Article: Source

Malaysia to have world’s largest syariah pension fund

Posted on 24 April 2015 by VRS  |  Email |Print

Malaysia’s state pension fund will offer a syariah-compliant investment option for its members by 2017, Prime Minister Datuk Seri Najib Razak said. This would create the largest syariah fund of its kind in the world, Najib said at the launch of an investment conference here. He did not specify how big he thought the syariah-compliant standalone fund could be.
Malaysia’s sovereign wealth fund Khazanah Nasional will add to the government efforts by issuing a RM1 billion socially responsible Islamic bond, which has now received regulatory approval, Najib added. The moves could help boost Malaysia’s economy, which has faced weakness due to the slump in oil prices and rising debt………………………………….Full Article: Source

Dr M: 1MDB is not sovereign wealth but sovereign debt

Posted on 24 April 2015 by VRS  |  Email |Print

Tun Dr Mahathir Mohamad pointed out today that Putrajaya will have to bear the losses incurred by 1 Malaysia Development Berhad (1MDB), noting it was the government that had invested in the troubled state-owned firm to begin with.
The former prime minister said 1MDB was “wrong” from the beginning, pointing out that the sovereign wealth fund was not put before Parliament. “If 1MDB loses money, the government will bear the loss,” Dr Mahathir wrote on his blog. “Yet the operation of 1MDB is not overseen by government officers responsible for the management of government funds,” he added………………………………….Full Article: Source

What the BNY Mellon Forex Settlement Really Means for SWFs

Posted on 24 April 2015 by VRS  |  Email |Print

Regulators and law enforcement extracted a hefty fine for fraud at one of America’s most respected financial institutions. Have sovereign wealth funds learned their lesson?
To be sure, despite the size of the settlement, the numbers involved may not seem big by sovereign wealth standards. “One question here, is it material?” asks Patrick Schena, Adjunct Assistant Professor and Co-Head of the Fletcher Network for Sovereign Wealth and Global Capital at the Fletcher School of Tufts University outside Boston, who advises on custodial issues………………………………….Full Article: Source

Australian sovereign fund joins Investa scrum

Posted on 23 April 2015 by VRS  |  Email |Print

The more than $109 billion Future Fund has waded into the contest for the Investa Property Group platform. It is highly likely Australia’s sovereign fund will partner with the ASX-listed DEXUS Property Group, sources said. However, the large sovereign funds and institutions have been advised not to enter exclusivity with managers such as DEXUS until the second round.
DEXUS has enlisted more than one capital partner. Sovereign wealth fund Abu Dhabi Investment Authority’s (ADIA) is also part of the consortium, it is understood. A shortlist for the $9 billion Investa Property Group will be drawn up by the end of next week with Morgan Stanley Real Estate Investing – which is exiting its Investa investment – keen to keep up the sale’s momentum……………………………………..Full Article: Source

Angola seeks $10bn for infrastructure despite oil price collapse

Posted on 23 April 2015 by VRS  |  Email |Print

Angola, Africa’s second-largest oil producer, is seeking to raise up to $10bn from foreign creditors as it attempts to push ahead with key infrastructure projects in the face of severe headwinds triggered by the collapse in crude prices. The southern African nation has slashed its budget for the year by a quarter, or about $15bn, after revising expenditure and halving its assumptions for oil price to $40 a barrel.
José Filomeno dos Santos, son of veteran president, José Eduardo dos Santos, and head of a $5bn sovereign wealth fund, adds: “Obviously there is a sense of worry . . . . [but there is] much more calm and more stability than we experienced in 2009. “We believe this situation will be managed much more smoothly.”…………………………………….Full Article: Source

WA future fund off limits despite budget woes

Posted on 22 April 2015 by VRS  |  Email |Print

WA has two years of financial pain to ride out but there’s no way the state government will raid its future fund, Premier Colin Barnett says. After Cabinet finalised the state budget on Monday, Mr Barnett said “large” deficits over the next two years could not be avoided.
But the future fund that was the centrepiece of the 2012/13 budget won’t be touched. Established with more than $1 billion in seed capital over four years using money from the Royalties for Regions fund, it aims to set aside cash from the state’s mineral resources for future generations…………………………………..Full Article: Source

Sovereign Wealth Funds Have an Active First Quarter 2015

Posted on 21 April 2015 by VRS  |  Email |Print

With recent noteworthy deals of sovereign wealth funds buying up massive real estate assets such as Norway’s SWF deal with Prologis on acquiring KTR Capital for US$ 5.9 billion or the Abu Dhabi Investment Council’s role in allocating to Spotify’s latest round, wealth funds continue to exhibit a greater role in direct investments.
Some notable first quarter deals in 2015 include the Qatar Investment Authority’s (QIA) role in buying the remaining portion of the Porta Nuova Development in Milan. The QIA, through Qatar Holding, bet big on the monumental urban rejuvenation development. Another colossal real estate deal in the first quarter 2015 is the China Investment Corporation (CIC) partnering with LaSalle Investment Management in acquiring the Meguro Gajoen complex in Tokyo for approximately 140 billion yen…………………………………..Full Article: Source

GE Holds Talks With Sovereign Funds for Finance-Assets Sale

Posted on 20 April 2015 by VRS  |  Email |Print

General Electric Co. has held talks with “a broad geographic spectrum” of sovereign wealth funds as part of the effort to sell the bulk of its lending business, Chief Financial Officer Jeff Bornstein said.
“We’re tracking every expression of interest inbound,” Bornstein said Friday in a telephone interview, declining to identify any suitors beyond saying that they included sovereign investors, banks, private-equity firms, hedge funds and insurers. “We have multiple, multiple pages of names. I think this is going to be very competitive.”…………………………………….Full Article: Source

World’s Biggest Wealth Fund Says Monetary Risks at Historic High

Posted on 20 April 2015 by VRS  |  Email |Print

For Norway’s $890 billion sovereign-wealth fund, the investment risks stemming from monetary policy have never been greater. Like most global investors, the Oslo-based fund is trying to navigate uncharted terrain as central banks across the world push out stimulus to protect economic growth and spur inflation.
“Monetary policy does affect pricing in today’s market to such an extent that monetary policy itself has been a risk you have to watch,” Yngve Slyngstad, chief executive officer of the fund, said in an interview on Wednesday at Bloomberg’s New York headquarters. “Investors are focused more on monetary policy changes than has been generally the case, than at any time, as far as I can remember.”…………………………………….Full Article: Source

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