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Abu Dhabi says to fund wider 2016 deficit mainly via bond issues

Posted on 25 April 2016 by VRS  |  Email |Print

Abu Dhabi expects to post a wider budget deficit of 36.9 billion dirhams ($10.1 billion) in 2016 because of low oil prices, and plans to cover the gap mainly with international bond issues, a prospectus for a bond sale by the emirate showed.
The prospectus noted that Abu Dhabi’s sovereign wealth fund, the Abu Dhabi Investment Authority, could be directed to pay dividends to the government to help cover any deficit. But it did not say whether this was likely to be done in 2016………………………………………..Full Article: Source

Australia’s Future Fund in $1bn blow

Posted on 25 April 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund has swung into ­reverse, shedding $1 billion in three months as volatile market conditions exact a toll. The Federal Government’s Future Fund shrank 0.9 per cent in the March quarter, dragging the return so far this financial year to a anaemic 0.2 per cent.
It is the first time in four years the fund — set up a decade ago to pay for superannuation liabilities in the public sector — has gone backwards in a quarter. The slide came after a bruising opening to 2016 on the stockmarket. The benchmark ASX 200 index fell almost 8 per cent across January and February and only pared back half of those losses in March………………………………………..Full Article: Source

Australian Sovereign Wealth Fund Lifts Cash Levels Close to 25%

Posted on 25 April 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund increased the amount of cash it holds to almost one quarter of its A$117.4 billion ($91 billion) portfolio as it says global central banks have less firepower to respond to economic weakness.
The so-called Future Fund raised its holdings in cash to 22.9 percent as of the end of March, citing the prospect for lower future returns, according to a statement Friday. Since being formed in 2006, its assets have almost doubled from A$60.5 billion, with the fund returning 7.4 percent per year………………………………………..Full Article: Source

Future Fund cash holdings rise again after first-quarter loss

Posted on 25 April 2016 by VRS  |  Email |Print

The Future Fund has boosted its cash holdings by a further $2.4 billion to $26.8 billion as it posted its first negative quarterly return since June 2012. The Australian sovereign wealth fund returned a modest negative 0.9 per cent, as its assets declined to $117.39 billion from $118.4 billion from the start of the year as it continued to shift its allocation towards more defensive investments such as cash.
The high cash position, which accounts for 23 per cent of assets, and falling returns is highlighting the challenge facing the fund in attempting to avoid taking excessive investment risk while still hitting its mandated target………………………………………..Full Article: Source

Australian Sovereign Wealth Fund Lifts Cash Levels Close to 25%

Posted on 22 April 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund increased the amount of cash it holds to almost one quarter of its A$117.4 billion ($91 billion) portfolio as it says global central banks have less firepower to respond to economic weakness.
The so-called Future Fund raised its holdings in cash to 22.9 percent as of the end of March, citing the prospect for lower future returns, according to a statement Friday. Since being formed in 2006, its assets have almost doubled from A$60.5 billion, with the fund returning 7.4 percent per year………………………………………..Full Article: Source

Future Fund posts first quarterly loss since 2012

Posted on 22 April 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund, the Peter Costello-chaired Future Fund, has booked its first quarterly loss in years, which has whittled away the investment return over the financial year-to-date.
The disappointing result came as Mr Costello warned of persistent lower returns, with the Future Fund continuing to drive its holdings into safer cash assets as global central banks shave their ability to further stimulate the weak economy. The Future Fund missed its quarterly target of returns of 1.2 per cent, logging a negative 0.9 per cent return over the three months through March………………………………………..Full Article: Source

Azerbaijani banks buy almost $3M from State Oil Fund

Posted on 22 April 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan sold $2.9 million to eight banks through the auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said in a statement on April 21. SOFAZ offered $50 million for sale through the auction.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016………………………………………..Full Article: Source

Fortis to sell minority stake in ITC to Singapore’s sovereign wealth fund

Posted on 21 April 2016 by VRS  |  Email |Print

Fortis Inc. has signed a deal to help finance its blockbuster US$11.3 billion acquisition of U.S. electric transmission company ITC. The utility company announced Wednesday it has an agreement that will see Singapore’s sovereign wealth fund take a minority stake in ITC Holdings Corp. for US$1.228 billion in cash.
Under the agreement, GIC Private Ltd. will acquire a 19.9 per cent equity interest in ITC Holdings Corp. The ITC deal announced in February would expand Fortis’s holdings in the U.S. and give it access to more than 25,000 kilometres of transmission lines………………………………………..Full Article: Source

SOFAZ earns over 350M manats in 1Q2016 due to exchange rate difference

Posted on 21 April 2016 by VRS  |  Email |Print

Azerbaijan’s State Oil Fund’s (SOFAZ) extra-budgetary revenues related to the revaluation of foreign exchange totaled 354.1 million Azerbaijani manats in 1Q2016, said SOFAZ’s message Apr. 20.
The official exchange rate is 1.5128 AZN/USD as of Apr. 20. As of Apr. 1, 2016, SOFAZ’s assets have increased by 2 percent - up to $34.25 billion compared to the beginning of 2016 ($33.57 billion). SOFAZ’s budget revenues reached 2.02 billion manats during the reporting period, while the expenditures - 1.95 billion manats, said the message………………………………………..Full Article: Source

SOFAZ assets gets 2% rise

Posted on 21 April 2016 by VRS  |  Email |Print

The revenues from managing assets for first quarter 2016 amounted to 148.8 mln. manat. Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-March, 2016 reached 2,023.1 million manat, while budget expenditures constituted 1,946.7 million manat, APA reports.
Revenue of 1,874.3 mln. manat was received from implementation of oil and gas agreements, including 1,869.8 mln. manat from the sale of profit oil and gas, 0.1 mln. manat as bonus payments and 4.4 mln. manat as transit payments………………………………………..Full Article: Source

Malaysia’s 1MDB bonds rally as fund row stokes volatility

Posted on 20 April 2016 by VRS  |  Email |Print

1Malaysia Development Bhd’s bonds maturing in March 2023 rose, halting a three-day slide on concern the state investment company may default on its debt obligations after a spat with Abu Dhabi’s sovereign wealth fund.
The US$3 billion 4.4 per cent notes jumped 4.3 cents to 84.3 cents on the dollar to yield 7.36 per cent as of 1:50 pm in Hong Kong, according to Bloomberg-compiled prices. The securities slumped 12.4 cents on April 18, the most since at least April 2014. The company’s US$1.75 billion of 5.99 per cent notes due May 2022 fell 3.9 cents to 102 cents Monday………………………………………..Full Article: Source

Graft Denials Come Under Strain in Malaysia Fund Scandal

Posted on 20 April 2016 by VRS  |  Email |Print

Malaysia’s prime minister and the company he founded, 1MDB, have weathered a year-long barrage of corruption allegations with nothing-to-see-here assurances, but a string of recent revelations is placing those denials under growing strain.
On Monday an Abu Dhabi sovereign-wealth fund which was helping 1MDB recover from massive debts abruptly withdrew its safety net, declaring the Malaysian state-owned company in default on a $1.1 billion loan. The move centres on suspicions that 1MDB — rather than repay the loan to the Abu Dhabi fund, International Petroleum Investment Co (IPIC) — instead diverted the money………………………………………..Full Article: Source

NSIA to fund infrastructure with $250m additional capital

Posted on 20 April 2016 by VRS  |  Email |Print

Nigeria Sovereign Investment Authority, NSIA, managers of Nigeria sovereign wealth fund, has said that 40 per cent of the additional $250 million (an equivalent of N49.3 billion) allocated to it by the Federal Government February this year would be deployed to fund on-going infrastructure projects on behalf of the government.
The Authority said that another 40 per cent of the fund would be invested in alternative assets classes, an area it recorded remarkable success in 2015, while the remaining 20 per cent would be deployed to the Stabilisation Fund………………………………………..Full Article: Source

Azerbaijani banks buy almost $20M from State Oil Fund

Posted on 20 April 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan sold $19.9 million to eight banks through the auction held by the Central Bank of Azerbaijan (CBA), SOFAZ’s message said Apr. 19. SOFAZ offered $50 million for sale through the auction, according to the message.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016………………………………………..Full Article: Source

Abu Dhabi Fund Calls 1MDB in Default After Missed Payment

Posted on 19 April 2016 by VRS  |  Email |Print

International Petroleum Investment Company says debt deal with Malaysian fund has been terminated. A key Middle Eastern business partner of 1Malaysia Development Bhd. said the Malaysian state development fund has failed to make a $1.1 billion payment as part of a debt-restructuring agreement and that as a result a debt deal between the two entities has been terminated.
The announcement, made in a London Stock Exchange filing by the International Petroleum Investment Company, an Abu Dhabi sovereign-wealth fund, marks a deterioration in relations between the two funds and signals fresh complications for 1MDB as it tries to work its way out from under billions of dollars of debt………………………………………..Full Article: Source

1MDB risks US$50m default as IPIC refuses to step in

Posted on 19 April 2016 by VRS  |  Email |Print

1MDB is facing the risk of default as Abu Dhabi-owned sovereign wealth fund International Petroleum Investment Company (IPIC) is no longer willing to service bond interest for the Malaysian fund, according to The Straits Times of Singapore.
1MDB has a US$50 million interest payment for its US$3.5 billion bond, which is due tomorrow. “Malaysian government officials, who spoke to The Straits Times on condition of anonymity, said IPIC has informally told 1MDB that it has no intention of honouring the interest payment because of the alleged default of the bond agreement………………………………………..Full Article: Source

Malaysia’s 1MDB at Risk of Default as Partner Ends Bond Support

Posted on 19 April 2016 by VRS  |  Email |Print

Malaysia’s state investment company, already a target of global investigations into allegations of money laundering and embezzlement, has another major problem: It now faces the risk of sinking into default.
1Malaysia Development Bhd. failed to make a payment of more than $1 billion in connection with a loan made last year by Abu Dhabi’s sovereign wealth fund, according to a London stock exchange filing. That means that 1MDB and Malaysia’s finance ministry “are in default,” Abu Dhabi’s International Petroleum Investment Co. said………………………………………..Full Article: Source

Qatar and CVC drop £6bn Sainsbury takeover bid

Posted on 18 April 2016 by VRS  |  Email |Print

The Qatar sovereign wealth fund and private equity group CVC have ended plans to launch a dramatic takeover approach for the UK supermarket group J Sainsbury. The Qatar Investment Authority (QIA) is understood to have joined forces with CVC Capital Partners and brought in Canadian property specialist Brookfield group earlier this year to launch a takeover bid for the grocer, according to Sky News Business.
The plans received formal approval from the City’s Takeover Panel in a sign of how close the consortium got to going public with the offer. It is understood that city grandee Archie Norman, who is currently chairman of ITV and made his reputation as chairman of Asda, was identified as a potential chairman of Sainsbury’s………………………………………..Full Article: Source

1MDB affair a simple confidence trick

Posted on 18 April 2016 by VRS  |  Email |Print

The senior management of 1MDB, we are led to understand from last week’s public statements, sent US$3.5bn around four years ago to a company they believed was Aabar Investments PJS, owned by International Petroleum Investment Co, Abu Dhabi’s sovereign wealth fund.
But the money didn’t get to that particular Aabar. Instead it went to an eponymous Aabar, in the form of Aabar Investments PJS Limited, a British Virgin Islands-registered company which had nothing to do with the Middle East state’s sovereign wealth fund. It was just that by some strange coincidence it just happened to have exactly the same name with a few letters added on at the end in the form of “Limited.”……………………………………….Full Article: Source

Local bank buys $20M from SOFAZ

Posted on 14 April 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $20 million to a bank through the auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said Apr.13. SOFAZ offered $50 million for sale through the auction.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Malaysia fund 1MDB’s payment to Abu Dhabi fund IPIC may have ended up in the movie business

Posted on 13 April 2016 by VRS  |  Email |Print

The trail of breadcrumbs from a troubled Malaysian state investment fund took another twist Tuesday when Swiss authorities said some of the money ended up in the movie business.
On Monday, an Abu Dhabi sovereign wealth fund, International Petroleum Investment Co. (IPIC), and its subsidiary Aabar Investments PJS, said that they never received $3.5 billion in payments from troubled 1Malaysia Development Berhad (1MDB). The payments were related to a guarantee for a bond placed by Goldman Sachs………………………………………..Full Article: Source

Abu Dhabi fund IPIC says it didn’t receive billions in payments sent by Malaysia fund 1MDB

Posted on 12 April 2016 by VRS  |  Email |Print

The mystery over who controlled a British Virgin Islands-registered company that received $3.5 billion from Malaysia’s scandal-tainted state fund 1MDB deepened on Monday when a company in the Middle East with an almost identical name said the BVI firm did not belong to it.
Abu Dhabi’s sovereign wealth fund, International Petroleum Investment Co. (IPIC), and its subsidiary Aabar Investments PJS said in a joint statement the BVI firm with an almost identical name, Aabar Investments PJS Ltd., “was not an entity within either corporate group.”……………………………………….Full Article: Source

Mid-East company denies links to 1MDB

Posted on 12 April 2016 by VRS  |  Email |Print

A Middle Eastern company has denied any links to a British Virgin Islands (BVI)-registered firm with a similar name that had received US$3.5 billion (S$4.7 billion) from troubled Malaysian investment firm 1Malaysia Development Berhad (1MDB).
Abu Dhabi’s sovereign wealth fund, International Petroleum Investment Co (IPIC), and its subsidiary Aabar Investments PJS (Aabar), said in a joint statement the BVI firm that received Malaysia’s money, Aabar Investments PJS Ltd (Aabar BVI), “was not an entity within either corporate group”………………………………………..Full Article: Source

Mystery deepens over $3.5 billion Malaysia’s 1MDB sent to BVI entity

Posted on 12 April 2016 by VRS  |  Email |Print

The mystery over who controlled a British Virgin Islands-registered company that received $3.5 billion from Malaysia’s scandal-tainted state fund 1MDB deepened on Monday when a company in the Middle East with an almost identical name said the BVI firm did not belong to it.
Abu Dhabi’s sovereign wealth fund, International Petroleum Investment Co (IPIC), and its subsidiary Aabar Investments PJS said in a joint statement the BVI firm with an almost identical name, Aabar Investments PJS Ltd, “was not an entity within either corporate group.” They had neither received any payments from the BVI company, which was wound up last June, nor assumed any liabilities on its behalf, the statement said………………………………………..Full Article: Source

Norway’s Wealth Fund Faces Demonstration Over Tax Havens

Posted on 12 April 2016 by VRS  |  Email |Print

Norwegian opposition parties and organizations are planning protests outside parliament in Oslo to pressure the country’s $850 billion sovereign wealth fund to dump investments in tax havens, seizing on the indignation that has followed the Panama leaks.
More than 35 groups including the Socialist Left Party, the Labor Party’s youth wing, and the Tax Justice Network are lending their support to a demonstration outside parliament in the city’s center at 6:30 p.m. local time, according to the event’s Facebook page. About 450 people have so far registered their intention to participate………………………………………..Full Article: Source

Azerbaijani banks buy $80M from State Oil Fund

Posted on 12 April 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $80 million to 21 banks through the auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said Apr.11. SOFAZ offered $100 million for sale through the auction.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

The Gulf’s sovereign dilemma

Posted on 11 April 2016 by VRS  |  Email |Print

To withdraw or not to withdraw?” asks American University of Sharjah professor Dr Jorg Bley in a column for Arabian Business (see page 34) about the present state of Gulf sovereign wealth funds (SWFs). The multibillion-dollar funds have enjoyed strong growth in recent years but analysts now warn that growth is slowing as flat oil prices and low liquidity force governments to break into their investment vehicles.
Across the Gulf, evidence abounds of governments drawing down on SWF assets to plug budget deficits or otherwise stabilise national economies. The biggest oil-producing nations are under particular stress while commodity prices remain low — the International Monetary Fund (IMF) estimated that Gulf countries together lost more than $300bn of hydrocarbon revenues last year………………………………………..Full Article: Source

Saudi Aramco IPO could raise $106 billion for sovereign wealth fund

Posted on 11 April 2016 by VRS  |  Email |Print

Saudi Arabia’s sovereign wealth fund could receive $106 billion in cash from the sale to the public of a 5% stake in oil giant Aramco’s parent company, according to the Sovereign Wealth Fund Institute. “Suitable investors in Aramco could be long-term institutional investors such as the Canadian pensions, or even Asian sovereign wealth funds,” the Las Vegas-based consultant and researcher said in a report.
“If an Aramco deal goes through, it could be a blueprint for other Saudi state-owned entities to follow, thus potentially increasing the cash pot of the Public Investment Fund while enlarging domestic markets.”……………………………………….Full Article: Source

Alibaba arm to lift target in record tech funding

Posted on 11 April 2016 by VRS  |  Email |Print

Alibaba Group Holding’s finance affiliate has increased the amount it’s raising to at least $3.5bn and gained the support of powerful state-backed investors in a record technology funding, according to people familiar with the matter.
Zhejiang Ant Small & Micro Financial Services Group Co, controlled by Alibaba’s billionaire founder Jack Ma, could be valued at about $60bn, said the people, who asked not to be identified because the deal is being negotiated in private. China Investment Corp, the country’s sovereign wealth fund, and an investment vehicle of China Construction Bank Corp are leading its latest round, the people said………………………………………..Full Article: Source

IMDB scandal-linked company closed down

Posted on 11 April 2016 by VRS  |  Email |Print

A tax haven company linked to a $450 million takeover bid involving central players in Malaysia’s 1MDB scandal has been quietly shut down, documents show. The Seychelles-registered company, PetroSaudi International (PSI), was used by Saudi businessman Tarek Obaid to buy Malaysian investment banking conglomerate UBG from its shareholders in 2010 in a transaction dubbed “Project Unicorn”.
One of the main beneficiaries of the deal was the Abu Dhabi-Kuwait-Malaysia Investment Corporation (ADKMIC), which owned more than half of UBG………………………………………..Full Article: Source

Azerbaijani banks buy $50M from State Oil Fund

Posted on 08 April 2016 by VRS  |  Email |Print

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) sold $50 million to 21 banks through the auction held by Azerbaijan’s Central Bank (CBA), SOFAZ said April 7. SOFAZ said that the banks bought the entire foreign currency amount put up for sale.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016………………………………………..Full Article: Source

World’s Biggest Wealth Fund Under Pressure to Exit Tax Havens

Posted on 06 April 2016 by VRS  |  Email |Print

Norwegian lawmakers are pushing for the country’s $850 billion sovereign wealth fund to drop all investments in companies that use tax havens as indignation over the practice swells.“Norway will have a serious problem in explaining how we can continue using the world’s biggest fund to legitimize robber states that are hiding corrupt money,” said Snorre Valen, a lawmaker for the Socialist Left, who urged other parties in parliament to back the initiative.
The fund has an estimated 200 billion kroner ($24 billion) in assets parked in tax havens, according to Valen………………………………………..Full Article: Source

Temasek Sees Valuation Concerns in Chinese Technology Industry

Posted on 06 April 2016 by VRS  |  Email |Print

There is valuation concern within China’s technology industry after investors piled into the sector in the last couple of years, said an executive of Temasek Holdings Pte, an investor in e-commerce giant Alibaba Group Holding Ltd. before its 2014 initial public offering.
The Singapore state investment company is considering moving to earlier-stage investments in the industry as valuations get higher for companies that move closer to initial public offerings, said Wu Yibing, Temasek’s China head, at the Credit Suisse Asian Investment Conference in Hong Kong on Tuesday………………………………………..Full Article: Source

1MDB was unsustainable due to low capital, high debt: Abdul Wahid Omar

Posted on 05 April 2016 by VRS  |  Email |Print

The financial structure of Malaysian state investment vehicle One Malaysia Development Berhad (1MDB) was unsustainable from the very start, according to a top government minister.
1MDB’s design was an exception, not the norm, for Malaysian government-linked companies, Abdul Wahid Omar, Economic Planning Minister of Malaysia, told CNBC’s”The Rundown” on Monday. Rather than being listed like other firms, 1MBD, which was set up in 2009, was wholly owned by the Ministry of Finance, he said………………………………………..Full Article: Source

Finance Ministry: 1MDB has no overdue debts

Posted on 05 April 2016 by VRS  |  Email |Print

1Malaysia Development Berhad (1MDB) does not have any overdue debts, says the Finance Ministry. “1MDB has never failed to settle its debts, including payment of loan interest,” the Ministry said in a written reply to Mohamed Hanipa Maidin (PAS-Sepang) who wanted to know 1MDB’s outstanding debts and lenders.
On the amount of 1MDB debt guaranteed by the Government, the ministry said it amounted to RM5.8bil. On March 25, 1MDB said its subsidiary Edra Energy (Langat) Sdn Bhd, had fully repaid a RM700mil syndicated term loan facility to a consortium of domestic banks………………………………………..Full Article: Source

1MDB gets time extension to hold AGM, submit audited statements

Posted on 05 April 2016 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) has been given an extension by the Companies Commission of Malaysia (CCM) till Sept 30, 2016 to hold its AGM and approve its audited financial statements for the financial year ended March 31, 2015.
It said in a statement that it was currently unable to prepare its financial statements for audit pending the return of the relevant financial documents seized during a raid on July 8, 2015. The initial deadline for 1MDB to submit its accounts had been Sept 30, 2015, but the CCM gave it an extension to March 31, 2016………………………………………..Full Article: Source

Nigeria’s sovereign wealth fund assets grew by 20pct to $1.07 bln in 2015 - SIA

Posted on 04 April 2016 by VRS  |  Email |Print

Total assets of Nigeria’s sovereign wealth fund grew to 213.67 billion naira ($1.07 billion) in 2015, up by 20 percent compared with the previous year, its managing director said on Friday. Nigeria, Africa’s biggest oil producer, established the Sovereign Investment Authority (SIA) in 2011 with $1 billion of seed capital in an effort to manage oil export revenues.
President Muhammadu Buhari took office last May and has prioritised cracking down on corruption and mismanagement, particularly in the oil sector, which has deepened an economic crisis exacerbated by falling crude prices………………………………………..Full Article: Source

SWF: State govts to get dividends in 2018

Posted on 04 April 2016 by VRS  |  Email |Print

State governments will have to wait till 2018 and pray that the three funds of the Sovereign Wealth Fund (SWF) make consistent profits before they can start receiving dividends on their Sovereign Wealth Investment (SWI).
National Sovereign Investment Authority (NSIA) Managing Director of the Authority, Uche Orji said: “the law says after five years of profitability in each of the three funds, that is when the state governments will start getting dividends. “If things continue like this in the next two years our anticipation is that we will start paying dividends to the states by the end the of 2017 to 2018.’’……………………………………….Full Article: Source

Why There’s Less To Saudi Arabia’s New $2 Trillion Wealth Fund Than Meets The Eye

Posted on 04 April 2016 by VRS  |  Email |Print

Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman (known to most people in the kingdom as MBS) has renewed his push to reform the Saudi economy, by announcing plans to create a $2 trillion sovereign wealth fund and part-privatize the national oil company Saudi Aramco within two years.
In an interview with Bloomberg, MBS also said Saudi Arabia will not freeze crude oil production unless other countries do so. Extensive interviews are a relatively rare phenomenon for Saudi leaders, so such public pronouncements are useful indicators of what the authorities in Riyadh are thinking………………………………………..Full Article: Source

Investigators believe money to finance ‘The Wolf of Wall Street’ came from a Malaysian state fund

Posted on 04 April 2016 by VRS  |  Email |Print

It took years for Leonardo DiCaprio and Marin Scorsese to make “The Wolf of Wall Street,” the 2013 adaptation of the book by former stock broker Jordan Belfort that highlighted his debauched exploits and the illegal actions that led to him going to prison for fraud.
Global investigators believe much of the movie’s $100 million budget was diverted from a Malaysian state fund that was established to spur local economic development. Investigators in two countries believe that 1Malaysia Development Bhd., or 1MDB, which was set up seven years ago by the prime minister of Malaysia, Najib Razak, moved $155 million into Red Granite Pictures, one of the production companies behind “The Wolf of Wall Street.”……………………………………….Full Article: Source

Singapore’s GIC gets P217-M tax refund

Posted on 04 April 2016 by VRS  |  Email |Print

The Court of Tax Appeals (CTA) has granted a P216.9-million tax refund on the interest income earned on Treasury bond (T-bond) investments made by Singapore’s sovereign wealth fund in 2012. In a 23-page decision dated March 17, the CTA First Division said GIC Pte. Ltd., owned and controlled by the Singapore government, is entitled to a tax exemption under the National Internal Revenue Code (NIRC).
Monetary benefits from interest income on T-bonds are subject to a 20% final withholding tax to be remitted by the Bureau of the Treasury to the Bureau of Internal Revenue (BIR)………………………………………..Full Article: Source

Would Australia’s Future Fund really provide cheap finance to Carmichael coal?

Posted on 31 March 2016 by VRS  |  Email |Print

Could Australia’s sovereign wealth fund be the key source of finance that enables Adani’s Carmichael mega coal mine in the Galilee Basin? News has emerged that India’s Finance Minister, Arun Jaitley, will meet with Finance Minister Mathias Cormann and Chairman of the Future Fund, Peter Costello, on an Australian visit aimed at trying to secure subsidised government funding for Adani’s proposed coal mega-mine.
Having utterly failed to attract finance from the commercial banking sector for the initial A$10 billion required for the mine, rail and port project, Adani is now looking to its friends in the Indian and Australian government for a little sugar. ……………………………………….Full Article: Source

Local banks buy over $28mln from SOFAZ

Posted on 31 March 2016 by VRS  |  Email |Print

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) sold $28.35 million to five local banks through the auction held by Azerbaijan’s Central Bank (CBA) March 30, SOFAZ said March 30. SOFAZ offered $100 million for sale through the auction, and will continue selling foreign currency through auctions in 2016.
The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Dexus Adds Cash Distribution to Sweeten Investa Office Fund Deal

Posted on 30 March 2016 by VRS  |  Email |Print

Dexus Property Group has sweetened its offer for Investa Office Fund, which said it wasn’t aware of a competing bid from a consortium that’s speculated to include Blackstone Group and China Investment Corp.
Dexus added a cash distribution of 7 Australian cents to its existing offer, taking the total to A$4.24 a unit or A$2.6 billion ($2 billion), Investa Office Fund said in a statement to the stock exchange Wednesday. Dexus cited a A$19 million drop in transaction costs largely due to reduced financing costs for the special distribution………………………………………..Full Article: Source

Local banks buy $0.5M from SOFAZ

Posted on 29 March 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ sold $0.5 million to three local banks through the auction held by Azerbaijan’s Central Bank (CBA) March 28, SOFAZ reported on March 28. SOFAZ offered $100 million for sale through the auction, and will continue selling foreign currency through auctions in 2016.
The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Fiscal surplus of $3.45b, thanks to Temasek’s inclusion in NIR

Posted on 29 March 2016 by VRS  |  Email |Print

From a $4.88 billion deficit last year to back in the black this year. An overall surplus of $3.45 billion is projected for 2016, buoyed by bigger contributions from Singapore investment company Temasek Holdings.
What is more, the surplus is forecast even as spending rises, including a marked increase in healthcare and business support. Helping offset the rising expenditure is Temasek’s inclusion in the net investment returns (NIR) framework this year. This will push the NIR contribution to the nation’s coffers to $14.7 billion, up 48.6 per cent from $9.9 billion last year………………………………………..Full Article: Source

Singapore’s GIC sovereign fund expects low US stock returns

Posted on 24 March 2016 by VRS  |  Email |Print

GIC expects below-average returns from U.S. stocks over the next five to 10 years, but the Singapore sovereign wealth fund still sees the U.S. as an important source of investment opportunities.
“The greatest strength of the U.S. is the private sector. If that continues to be the case, we are not concerned,” said Lim Chow Kiat, GIC Private Ltd’s chief investment officer. “We find a lot of investment opportunities in the U.S.,” he said. “A lot of exciting things are coming out of the private sector on a daily basis.”……………………………………….Full Article: Source

Temasek-linked group taking Select private with S$0.525 a share offer

Posted on 24 March 2016 by VRS  |  Email |Print

Catalist-listed food caterer Select Group is being taken private by a consortium led by Temasek Holdings-linked Dymon Asia Private Equity. The consortium also includes Select’s co-founders Tan Chor Khoon and Tan Choh Peng, who are brothers.
The offer price is S$0.525 a share, a 23.5 per cent premium over the last transacted price on March 18. Shareholders holding approximately 53.6 per cent of the total issued shares have undertaken to accept the offer………………………………………..Full Article: Source

SOFAZ reveals revenues from ACG field

Posted on 24 March 2016 by VRS  |  Email |Print

Revenues of Azerbaijan’s State Oil Fund (SOFAZ) from the development project of Azeri-Chirag-Guneshli (ACG) block of oil and gas fields totaled $117.799 billion from early 2001 to March 1, 2016, SOFAZ told Trend.
“The Fund’s revenues from the project totaled $790 million in Jan.-Feb. 2016, some $442 million of which accounted for January,” said SOFAZ. A contract for development of ACG block of fields was signed in 1994. The proven oil reserve of the block nears one billion tons………………………………………..Full Article: Source

UOB-Temasek fund lends to Thai, Malaysian startups

Posted on 23 March 2016 by VRS  |  Email |Print

United Overseas Bank, Singapore’s third-largest bank, and Singaporean sovereign wealth fund Temasek Holdings have signed two financing agreements with Southeast Asian startups through their joint venture. InnoVen Capital signed venture debt financing deals totaling $5 million with Malaysia-based KFit Holdings, an e-commerce health and fitness company and Thailand-based Pomelo Fashion.
Last year, UOB and Temasek Holdings signed a deal to provide venture debt financing of $500 million for startups in China, India and Southeast Asia. So far, they have each committed up to $100 million in paid-up capital to InnoVen to help finance Asian venture companies………………………………………..Full Article: Source

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