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Sovereign Wealth Funds Briefing - Category | Financials more

Assets of Iran’s National Development Fund reach $60 bln

Posted on 05 May 2014 by VRS  |  Email |Print

Assets of the National Development Fund (NDF) of Iran amount to $60 billion, the deputy director general of the fund has announced. “The NDF’s reserves were around $54 billion when president Hassan Rouhani took the office last August, and since then the figure has reached $60 billion, deputy director general of the NDF,” Qasem Hosseini told Trend on May 2.
Hosseini went on to say that the fund isn’t facing any problems, and the situation is desirable. The NDF is Iran’s sovereign wealth fund. It was founded in 2011 to replace Oil Stabilization Fund………………………………………..Full Article: Source

Malaysia Sovereign Wealth-Fund Seeks Debt

Posted on 02 May 2014 by VRS  |  Email |Print

1Malaysia Development Bhd, the Malaysian state fund that came under fire for bonds it arranged through Goldman Sachs a couple of years ago, is back in the market to raise funds.
Also known as 1MDB, the company requested fresh proposals for financing from bankers, according to people familiar with the matter, to refinance a 6.17 billion ringgit ($1.89 billion) syndicated bridge that must be paid by May 22. 1MDB’s financing also is urgent because of the delay in its initial public offering—of US$1.5 billion—to later this year, which could have raised funds that go toward paying off debt………………………………………..Full Article: Source

Norway’s US$860bln oil fund sharply raises Mexico, Brazil govt debt holding

Posted on 02 May 2014 by VRS  |  Email |Print

Norway’s US$860 billion sovereign wealth fund sharply cut its government bond holdings in the United States and Germany while increasing its stake in Mexican and Brazilian debt, it said on Wednesday. The fund, one of the world’s biggest investors, also said it returned 1.7 per cent in the first quarter, compared with 4.66 per cent in the fourth quarter of last year.
“All asset classes contributed positively to the result and there were only minor differences between them,” Chief executive Yngve Slyngstad said in a statement. “The return was boosted by lower interest rates in the fund’s main markets.” The fund increased its bond holdings to 37.7 per cent of its portfolio from 37.3 per cent three months earlier and cut its equity holdings to 61.1 per cent of the fund from 61.7 per cent………………………………………..Full Article: Source

Norwegian sovereign wealth fund gains 1.7% in first quarter

Posted on 02 May 2014 by VRS  |  Email |Print

Norway’s Government Pension Fund Global said on Wednesday that its portfolio gained a mere 1.7% in the first quarter, the lowest return for the world’s largest sovereign wealth fund since the second quarter of last year.
The so-called “oil fund” saw its equities holdings, which account for almost two-thirds of its 5.1 trillion kroner (€618.6bn) in assets under management, appreciate by 1.5% in the three months to March 31, while fixed income investments delivered returns of 2%………………………………………..Full Article: Source

Qatari fund to pay $1.6bln for acquisition of Heritage Oil

Posted on 02 May 2014 by VRS  |  Email |Print

British oil company Heritage Oil agreed a 924 million pound ($1.6 billion) takeover offer from a fund owned by the former chief executive of Qatar’s sovereign wealth fund. Heritage, whose main oil production is in Nigeria, said on Wednesday it was recommending a 320 pence per share cash offer, which represented a 25 percent premium to its closing price the day before the approach was announced.
Its suitor, Al Mirqab Capital, is the private investment vehicle of Qatar’s Sheikh Hamad Bin Jassim Bin Jabor Al Thani and his family. Sheikh Hamad, who was chief executive of the Qatar Investment Authority until last year, is regarded as the driving force behind the emergence of the Gulf Arab state’s sovereign wealth fund as one of the world’s most sought-after investors, scooping up stakes in bluechip companies, luxury brands and prime real estate………………………………………..Full Article: Source

Future Fund and super returns on par

Posted on 29 April 2014 by VRS  |  Email |Print

The Future Fund has achieved rolling 3 year returns of about 9.5% pa, putting the de facto sovereign wealth fund on par with workplace super funds when the Future Fund’s tax-free and member-free status is taken into account. The $98 billion Future Fund has just released its March 2014 portfolio update and advised that so far this financial year it has earned 9.8% and that it is opening up a big gap over CPI+4.5% performance benchmark.
Preliminary super fund performance results from Rainmaker’s March 2014 SelectingSuper survey shows super fund workplace default investment options to be returning 8.4% pa, indicating the Future Fund’s is on par with these leading institutional investors after allowing for tax and fee differences………………………………………..Full Article: Source

Norway oil fund reassessing risk on significant Russian holdings

Posted on 28 April 2014 by VRS  |  Email |Print

Norway’s $850 billion sovereign wealth fund, the world’s biggest, is reviewing risk in Russia, where it has “significant” holdings, Chief Executive Officer Yngve Slyngstad said.
“We observe that there’s a different risk profile,” Slyngstad told reporters in Oslo yesterday, after testifying to lawmakers on the fund’s investment strategy. “We are at any given time also considering conditions that have dimensions of geopolitics and geopolitical risk.”……………………………………….Full Article: Source

Temasek’s Olam offer turns unconditional, deadline extended to May 23

Posted on 25 April 2014 by VRS  |  Email |Print

Investment firm Temasek Holdings’ offer that values Olam International at S$5.3 billion has turned unconditional and the deadline for acceptances has been extended by two weeks to May 23, according to a regulatory filing by the commodities giant on Thursday.
Temasek’s unit, Breedens Investments, offered earlier this month to buy all the outstanding shares in Olam that it and its concert parties did not already own at S$2.23 per share, representing an 11.8 per cent premium to the last traded price………………………………………..Full Article: Source

Formula One backlash haunts Norway wealth fund as hearing starts

Posted on 24 April 2014 by VRS  |  Email |Print

Norway’s $850 billion sovereign wealth fund needs to prepare its arguments to persuade lawmakers it can handle an expansion into private equity after an investment in Formula One backfired.
Yngve Slyngstad, the fund’s chief executive officer, and central bank Governor Oeystein Olsen, who oversees the fund, have been summoned to testify tomorrow at a Finance Committee hearing at the Oslo parliament………………………………………..Full Article: Source

Transurban group to pay $7.05bln for Qld Motorways

Posted on 24 April 2014 by VRS  |  Email |Print

Transurban, Australian Super and a unit of Abu Dhabi’s sovereign wealth Tawreed Investments are the new owners of Queensland Motorways after agreeing to pay $7.05 billion for the 70-kilometre network of roads in the Brisbane area, according to an email statement sent to Data Room.
The Transurban-led group beat out another bidding group led by Melbourne-based infrastructure investors Hastings, Spanish infrastructure operator and investor Abertis, the Kuwait Investment Authority and Dutch pension fund APG after the two groups were asked to submit their best and final offers for Queensland Motorways at 5 pm this afternoon, Data Room reporting has discovered………………………………………..Full Article: Source

FG, states, LGs share N1.912tn in first quarter

Posted on 23 April 2014 by VRS  |  Email |Print

In his opinion, the Emerging Markets Strategist, Standard Bank Plc, Samir Gadio said the oil revenue, which is continuously monetised and shared among the three tiers of governments, prevents any tangible accumulation of the forex reserves as well as the Excess Crude Account (ECA).
Gadio added: “Clearly, this model is not sustainable. Nigeria is already a distinct laggard in terms of fiscal savings-to-GDP ratio compared to oil producing peers and will most likely be unable to withstand an external shock should oil prices fall in the future.”He stressed the need to make the Sovereign Wealth Fund very effective, adding that there is need for increased fiscal accountability………………………………………..Full Article: Source

1MDB net profit up 74pct to RM778mln

Posted on 22 April 2014 by VRS  |  Email |Print

1Malaysia Development Bhd, the government’s sovereign wealth fund, saw its net profit surge 74% to RM778.24 million for the year ended March 31, 2013 from RM44.72 million a year before.
Revenue in the same 12-month period grew four times to RM2.59 billion from RM633.2 million previously. However, its liabilities, basically its debts or obligations, ballooned more than five times to RM42.3 billion from RM8.4 billion as at the end of the financial year March 31, 2012………………………………………..Full Article: Source

Global fund assets to top $100 trillion on real estate boom, PwC says

Posted on 22 April 2014 by VRS  |  Email |Print

Global fund assets are projected to grow by 60% to $101.7 trillion by 2020, fuelled by the shift toward individual retirement plans, a surge in high-net-worth individuals in emerging markets and growth in sovereign wealth fund (SWF) assets, PwC says.
Rapid urbanisation and demographic changes, especially within emerging markets, will lead to substantial growth in the real estate investment industry over the next six years. This will prompt institutional investors to raise allocations in real estate more than in other asset classes, according to Real Estate 2020: Building the future, a report from PwC………………………………………..Full Article: Source

Samruk-Kazyna fund to privatize over 200 state firms

Posted on 17 April 2014 by VRS  |  Email |Print

The Republic of Kazakhstan’s Samruk-Kazyna Sovereign Wealth Fund plans to place over 200 national companies on the market, Daniyar Mukhtarov writes for Trend. The sell-off is being conducted as part of a privatization program, Chairman of the Board at Samruk Kazyna, Umirzak Shukeev said.
Specifically, those companies working in non-core business will be privatized. An example is companies producing solar panels as part of the Kazatomprom national atomic agency………………………………………..Full Article: Source

1MDB net profit up 74pct to RM778mln

Posted on 17 April 2014 by VRS  |  Email |Print

1Malaysia Development Bhd, the government’s sovereign wealth fund, saw its net profit surge 74% to RM778.24 million for the year ended March 31, 2013 from RM44.72 million a year before. Revenue in the same 12-month period grew four times to RM2.59 billion from RM633.2 million previously.
However, its liabilities, basically its debts or obligations, ballooned more than five times to RM42.3 billion from RM8.4 billion as at the end of the financial year March 31, 2012. 1MDB’s balance sheet showed that its non-current liabilities, that could include long-term borrowing, bonds payable and long-term lease obligations, almost quadrupled to RM30.6 billion from RM7.8 billion previously………………………………………..Full Article: Source

Singapore’s Keppel Corp Q1 net profit falls 5 pct

Posted on 17 April 2014 by VRS  |  Email |Print

Singapore’s Keppel Corporation Ltd said on Wednesday its net profit in the first quarter dropped 5 percent on the year to S$339 million ($270.46 million). Singapore’s state investor Temasek Holdings owns a stake of more than 20 percent in Keppel.
Keppel is the world’s top offshore jackup drilling rig producer and has business in property development and infrastructure. The firm booked revenue of nearly S$3 billion for the quarter, up 8.6 percent from a year earlier, it said in a statement………………………………………..Full Article: Source

Excess Crude Account rises to $3.6bln FG, states, LGs share N641.3bln in March

Posted on 17 April 2014 by VRS  |  Email |Print

It emerged Tuesday that the Excess Crude Account (ECA) now stands at about $3.6 billion compared to $3.4 billion in February. The Accountant General of the Federation (AGF), Mr. Jonah Otunla, disclosed this after the monthly meeting of the Federation Account Allocation Committee (FAAC) which also yesterday shared a total distributable revenue amounting to N641.38 billion among the three tiers of government March.
Also, the committee also voted unanimously at its plenary to remove oil subsidy from its books, according to Chairman, Commissioners of Finance Forum, Mr. Timothy Odah. He said their resolution would be communicated to the presidency for immediate action………………………………………..Full Article: Source

$2.7 billion out of Kazakhstan National Oil Fund to stimulate economy in 2014

Posted on 16 April 2014 by VRS  |  Email |Print

$2.7 billion out of the National Oil Fund accumulating windfall oil revenues is to be allocated in 2014 to stimulate the country’s economy growth, Tengrinews.kz reports, citing the country’s Minister of Economic Affairs Yerbolat Dossayev.
“One of the sources to boost the country’s economy growth will be $5.5 billion out of the National Oil Fund to be allocated in 2014 and 2015. $2.7 of the amount will be allocated this year, with $552 million being spent to support small and middle-sized businesses, another $1.3 billion being spent to bolster the country’s banking sector, and $ 828 million to support the Industrial Development Program………………………………………..Full Article: Source

1MDB’s accounts finally submitted

Posted on 16 April 2014 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) has submitted its long-awaited accounts for the financial year ended March 31, 2013 on April 9, according to the Companies Commission of Malaysia (SSM). “1MDB has submitted the company’s annual return together with the audited financial statement for the financial year ended March 31, 2013 on April 9, 2014,” SSM said.
“As such, 1MDB has complied with the requirement of section 165(4) Companies Act 1965 (Act 125) which requires company to submit its annual return within one month after the annual general meeting (AGM),” it added………………………………………..Full Article: Source

Kazakhstan: $2.7 bln out of the National Oil Fund to stimulate the economy in 2014

Posted on 15 April 2014 by VRS  |  Email |Print

$2.7 billion out of the National Oil Fund accumulating windfall oil revenues is to be allocated in 2014 to stimulate the country’s economy growth, Tengrinews.kz reports, citing the country’s Minister of Economic Affairs Yerbolat Dossayev.
“One of the sources to boost the country’s economy growth will be $5.5 billion out of the National Oil Fund to be allocated in 2014 and 2015. $2.7 of the amount will be allocated this year, with $552 million being spent to support small and middle-sized businesses, another $1.3 billion being spent to bolster the country’s banking sector, and $ 828 million to support the Industrial Development Program………………………………………..Full Article: Source

Qatar Investment Authority again reduces ABC H-shares

Posted on 15 April 2014 by VRS  |  Email |Print

Biggest sovereign wealth fund from Middle East Qatar Investment Authority once again reduced shares in Agricultural Bank Of China Limited.
Information from the Hong Kong bourse said that Qatar Investment Authority sold off 50 million H-shares in ABC through affiliated Qatar Holding for HKD 3.47 per share or HKD 173.5 million in total, diluting stake from 21.07% to 20.91%………………………………………..Full Article: Source

SOFAZ 2014 expenditures reduced up to AZN 760 mln

Posted on 14 April 2014 by VRS  |  Email |Print

President Ilham Aliyev has issued a decree on amendments to the decree “On 2014 budget of State oil Fund of Azerbaijan”. APA-Economics reports that the amendment is related to task to the State Oil Company of Azerbaijan on establishment of closed joint-stock company (OJSC), of which authorized capital makes AZN 100 mln and 51%-equity belongs to state, 49% - to SOCAR, under the President’s order on “several measures regarding other projects on Shah Deniz-2 and establishment of Southern Gas Corridor” dated to February 25, 2014, and task to the State Oil Fund of Azerbaijan on providing the financing of OJSC’s shares belonging to the state.……………………………………….Full Article: Source

Taxpayers’ AIB stake worth up to EUR11bln – Noonan

Posted on 14 April 2014 by VRS  |  Email |Print

State-owned AIB could be worth between “€10bn and €11bn”, according to Finance Minister Michael Noonan. This is the first time that the Government has revealed what its stake in AIB could be worth.
In February, it emerged that a Gulf sovereign wealth fund had made a €500m offer to buy a stake in AIB. The “tentative” approach had been made in September by an unnamed “sovereign wealth fund”. The approach was rebuffed at an early stage………………………………………..Full Article: Source

Bill would let landlords garnish Permanent Fund dividends

Posted on 11 April 2014 by VRS  |  Email |Print

Landlords would be entitled to garnish the Permanent Fund dividends of renters under a bill approved by a House committee. House Bill 282 updates the Alaska Landlord and Tenant Act for the first time in decades.
The House Judiciary moved the bill Wednesday to the full House. It would have to be passed by both the House and Senate before the legislative session ends April 20 to become law. Among other things, the bill allows landlords to garnish the PFDs of tenants to cover repairs that cost more than the renter’s security deposit………………………………………..Full Article: Source

NewQuest, GIC partially exited stake of IKang in its $153mln IPO

Posted on 10 April 2014 by VRS  |  Email |Print

Beijing-based private medical services provider iKang Guobin Healthcare Group has raised $153 million by offering 10.9 million shares at $14 per share on the NASDAQ. NewQuest Capital Partners and Singapore’s GIC Private Ltd. has partially exited from iKang.
At the same time, Best Investment Corporation, a subsidiary of China’s sovereign wealth fund China Investment Corporation, is to pay $40 million for a stake of about 4.6% of iKang at $13.00 per share, according to a previous filing. Last April, GIC Private and Goldman Sachs jointly committed $100 million to iKang. Goldman Sachs is not selling in the IPO, but its stake will be diluted from 13% to 10.8%………………………………………..Full Article: Source

Norway to examine return on $850bln wealth fund before restructuring

Posted on 10 April 2014 by VRS  |  Email |Print

Norway will wait to see whether property investments by its $850bn (€616bn) sovereign wealth fund pay off before considering new asset classes including infrastructure and private equity. “Whether we do it next year or the year after, that hasn’t been decided,” Paal Bjoernestad, state secretary in charge of the fund at the Finance Ministry, said. “We will come back to it – it’s not off the table.”
Prime Minister Erna Solberg’s Conservative-led government, in power since October, has backed away from pre-election talk of restructuring the fund and is now signaling any changes to the world’s largest sovereign investor are likely to be slow………………………………………..Full Article: Source

SOFAZ revenues from Shah Deniz, ACG projects made public

Posted on 08 April 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has gained more than $1.7 billion from 2007 to April 1, 2014 by implementing the development project of the giant Shah Deniz gas condensate field in the Caspian Sea. SOFAZ received some $115.6 million as part of the Shah Deniz project from January 1 to April 1, SOFAZ said.
The Shah Deniz field, one of the world’s largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas. Overall, the field has proved to be a secure and reliable supplier of gas to Azerbaijan, Georgia, Turkey, and Europe………………………………………..Full Article: Source

Viable SMSF size underestimated

Posted on 08 April 2014 by VRS  |  Email |Print

The size at which a self-managed superannuation fund (SMSF) becomes a viable alternative to regular funds may be considerably higher than the industry currently estimates due to the impact of scale on performance. The industry typically advises that a minimum balance of between $100,000 and $200,000 is the tipping point at which SMSFs costs match those of pooled superannuation funds.
However, Rainmaker analysis of Australian Taxation Office (ATO) performance data suggests that there is a significant scale effect associated with fund returns which means the SMSFs don’t receive a material benefit until they have much higher balances………………………………………..Full Article: Source

Qatar-backed Tiffany & Co reports Q4 loss

Posted on 07 April 2014 by VRS  |  Email |Print

Tiffany & Co., the US luxury jewellery retailer in which the Qatar Investment Authority owns an 8.7 percent stake, reported fourth quarter results that were up on an ongoing basis in spite of the economic environment, but were turned into a loss by an unfavourable arbitration ruling.
The company incurred a net loss for the quarter ended January 31, 2014 (fiscal 2013) of $103.6m, compared to net income of $179.6m in the fourth quarter of fiscal 2012………………………………………..Full Article: Source

Kazakhstan’s state wealth fund plans sell-offs, debt issues

Posted on 04 April 2014 by VRS  |  Email |Print

Kazakhstan’s sovereign wealth fund has drawn up a privatisation programme, planning to sell off state-controlled assets in the oil and gas, nuclear and railway industries worth around $10 billion by 2020.
Companies within Samruk-Kazyna also plan to borrow about $8 billion on domestic and foreign markets in the next two years to help fund their projects, the fund’s Financial Director Nurlan Rakhmetov told Reuters in an interview………………………………….Full Article: Source

Bumi shareholders re-approve CIC debt-for-equity swap

Posted on 04 April 2014 by VRS  |  Email |Print

Shareholders in Indonesia’s troubled PT Bumi Resources voted on Thursday in favour of new terms to settle the firm’s $1.3 billion debt with China’s sovereign wealth fund, CIC, after Indonesia’s financial services authority (OJK) rejected an earlier vote.
The latest vote to approve the debt-for-equity swap with CIC should come as good news for shareholders in the firm that has suffered downgrades from ratings agencies and faces bloated debt loads………………………………….Full Article: Source

Permanent fund donations continue growth

Posted on 04 April 2014 by VRS  |  Email |Print

Alaskans pledged record donations from their permanent fund dividends once again this year, according to an announcement from the PFD fundraising campaign, Pick.Click.Give. The campaign released the pledge results from the PFD filing period between Jan. 1 and March 31 on Tuesday, noting more than $2.7 million in donations from 26,773 Alaskans.
Pick.Click.Give is a statewide campaign that aims to make it easier for Alaska residents to donate to their favorite Alaska nonprofit organizations by giving the money directly from their PFD. Though the filing period has ended, people can still return to their applications online and add a donation through Pick.Click.Give. through Aug. 31………………………………….Full Article: Source

Oil and gas account for $1.7 bln of state’s general fund

Posted on 04 April 2014 by VRS  |  Email |Print

A detailed tax study in New Mexico shows that the oil and gas industry is responsible for more than $1.7 billion in general-fund revenues in fiscal year 2013.Earlier this year, the New Mexico Tax Research Institute released the Fiscal Impacts of Oil and Natural Gas Production in New Mexico, a 325-page study of the state’s oil and gas industry contributions to the general fund.
The study says that the oil and gas industry contributes about 31.5 percent of the total amount in the general fund. Furthermore, the report breaks down information by county. In fiscal year 2013, the state’s general fund was about $5.6 billion, according to the study………………………………….Full Article: Source

Nigeria: SWF Posts N505.6mln Income in 15 months

Posted on 02 April 2014 by VRS  |  Email |Print

The Nigeria Sovereign Investment Authority (NSIA) which is responsible for the management of Nigerian Sovereign Wealth Fund (SWF) has reported a total income of N505.694 million for the 15 months which ended December 2013.
According to the results audited by PricewaterhouseCoopers and made available to THISDAY, NSIA recorded a gross operating income of N1.466 billion and non-operating income of N495 million, bringing the total gross income to N1.961billion……………………………..Full Article: Source

NEC demands details of spending on Excess Crude Account

Posted on 28 March 2014 by VRS  |  Email |Print

The National Economic Council (NEC) Thursday requested the federal government to give the details of the spending on Excess Crude Account (ECA) to the states. Governor Godswill Akpabio of Akwa Ibom State made this known after the NEC meeting presided over by the Vice-President Namadi Sambo in Abuja.
NEC, which is the highest economic decision-making body statutorily presided over by the vice-president with all state governors,had not been held in the last six months. Other members of the council include the Minister of the Federal Capital Territory (FCT), Attorney-General of the Federation and some ministers……………………………………Full Article: Source

Russia to aid banks, businesses in case of crisis – Finance Minister

Posted on 28 March 2014 by VRS  |  Email |Print

Russia will support banks and businesses with large external debts in the event of a financial crisis by dipping into an $88 billion emergency sovereign wealth fund, Finance Minister Anton Siluanov told the Prime news agency Thursday.
“The National Wealth Fund is an emergency resource that can be used in the case of a crisis to help banks and big companies that have large obligations to external creditors,” Siluanov said at the Moscow stock exchange, adding that he so far saw no grounds for such a move……………………………………Full Article: Source

Temasek diversifies from China Banks with Watson: Update

Posted on 27 March 2014 by VRS  |  Email |Print

Temasek Holdings Pte’s plan to buy a stake in the retail arm of billionaire Li Ka-shing’s Hutchison Whampoa will help the investment firm extend its reach in China and ease its reliance on the nation’s banks.
Singapore’s state-owned investment company agreed on March 21 to buy 25% of A.S. Watson & Co. for HK$44 billion ($7.2 billion), marking its biggest acquisition based on data compiled by Bloomberg. The health and beauty chain has stores in more than 20 Chinese cities including Shanghai and Beijing, according to its website…………………………………Full Article: Source

Nordic giants offload Euro1.7mln stake in Providence Resources

Posted on 24 March 2014 by VRS  |  Email |Print

The world’s largest sovereign wealth fund has sold off its stake in Providence Resources – one of the more active companies working in the Irish oil industry. Norway’s €602.5bn Government Pension Fund, which is managed by Norges Bank, sold off its €1.7m stake in Providence Resources last year.
The decision to pull out of Providence, which is currently drilling oil off the coast of Cork, could be linked to a recent debate in Norway, where the resources-rich country is considering whether its sovereign wealth fund should stop investing in carbon energies – oil, gas and coal companies………………………………………..Full Article: Source

Kazakhstan Government increases reserve fund by $250 mln after tenge devaluation

Posted on 24 March 2014 by VRS  |  Email |Print

Amid adjustments of microeconomic indicators for the year 2014 the Kazakhstan Government has revised its budget. “We advise to increase the government reserve by $250 million to ensure timely response to emergency situations arising from fluctuations of the economy,” the Minister of Economy and Budget Planning Yerbolat Dosayev suggested at the meeting of the Cabinet.
To compensate the losses connected with the recent devaluation of tenge by nearly 20%, the government increased the projected state expenditures by $221 million. The projects that require immediate financing will be compensated the exchange rate difference. If required, similar measures will be taken into consideration for other projects in the budgeting for 2015-2017………………………………………..Full Article: Source

The sovereign wealth fund solution

Posted on 20 March 2014 by VRS  |  Email |Print

A SWF is a huge pile of capital that is owned by the state and invested for a return just like a mutual fund, a pension fund, or a university endowment. The wealth of such funds is, by definition, held collectively by the public, instead of being held privately.
To the extent that wealth concentrating in the hands of a tiny few is our concern, one obvious way to prevent that is to have the public hold a bunch of it collectively. If the public owns it, the super-capitalists don’t. That helps check our wealth inequality problem………………………………………..Full Article: Source

Superannuation fund returns top 10pct, says Chant West

Posted on 19 March 2014 by VRS  |  Email |Print

The average Australian superannuation fund has posted a return of more than 10 per cent in the first eight months of the financial year, according to research house Chant West. The median growth fund returned 2.1 per cent in February, taking the return for fiscal 2014 so far to 10.8 per cent, the firm said.
The average fund is up 13.1 per cent compared with a year ago and 7.1 per cent compared with 10 years ago………………………………………..Full Article: Source

Norway examines $850 bln wealth fund’s return measures

Posted on 19 March 2014 by VRS  |  Email |Print

Norway is examining new ways to calculate returns generated by the world’s biggest sovereign wealth fund in a move that could affect how much oil revenue the government uses in its budgets.
The Finance Ministry has ordered Statistics Norway to find out how different deflators, which adjust returns for inflation, will affect returns. The government is due next month release a white paper assessing the fund’s strategy and performance………………………………………..Full Article: Source

Nigeria: Excess Crude Account rises to U.S.$3.45 bln

Posted on 18 March 2014 by VRS  |  Email |Print

Following last week’s meeting of the Federation Allocation Accounts Committee (FAAC), the Excess Crude Account (ECA) has increased by $1.34 billion. This is as the Consumer Price Index (CPI) which measures inflation, in February moderated to 7.7 per cent year-on-year from 8.0 per cent the previous month.
According to the National Bureau of Statistics (NBS), the moderation in year-on-year rates in February was as a result of higher year-on-year changes exhibited in February 2013. The federal ministry of finance made this known yesterday in a statement by the special adviser to Mrs Okonjo-Iweala, Paul Nwabuikwu………………………………………..Full Article: Source

Malaysia sovereign wealth fund agrees to solar tariff, Star says

Posted on 18 March 2014 by VRS  |  Email |Print

Sovereign wealth fund 1Malaysia Development Bhd. secured a tariff rate of 40 sen to 46 sen a kilowatt-hour for a planned 50-megawatt solar farm in Kedah, the Star reported.
The deal was set as a result of negotiations between 1MDB and the government, the newspaper reported online today, citing people it didn’t identify. 1MDB didn’t immediately respond to an e-mail and phone call requesting comment………………………………………..Full Article: Source

Norway examines return calculations for $850 bln wealth fund

Posted on 18 March 2014 by VRS  |  Email |Print

Norway is examining new ways to calculate returns generated by the world’s biggest sovereign wealth fund in a move that could affect how much oil revenue the government uses in its budgets.
The Finance Ministry has ordered Statistics Norway to find out how different deflators, which adjust returns for inflation, will affect returns. The government is due next month release a white paper assessing the fund’s strategy and performance………………………………………..Full Article: Source

Temasek-led group offers $2.1 bln for remaining Olam shares

Posted on 17 March 2014 by VRS  |  Email |Print

A Temasek-led shareholders group has offered to pay $2.1 billion in cash for shares in Olam International Ltd (OLAM.SI) they don’t already own, putting the heft of the Singapore state investor behind the commodity trading firm’s weak balance sheet.
The proposal comes after a tumultuous stretch for Olam, one of the world’s leading traders in rice, coffee and cocoa, that saw it come under attack from short-seller Muddy Waters in late 2012 for its accounting practices………………………………………..Full Article: Source

SOFAZ budget for 2014 to be revised

Posted on 14 March 2014 by VRS  |  Email |Print

The 2014 budget of the State Oil Fund of Azerbaijan (SOFAZ) will be revised, due to the formation of a closed joint stock company for effective management of the Shah Deniz projects and gas deliveries to Europe, SOFAZ CEO, Shahmar Movsumov told journalists on March 12.
In February, Azerbaijani President Ilham Aliyev signed a decree on establishment of a closed joint-stock company for effective management of the projects within the second phase of the Shah Deniz gas and condensate field’s development, expansion of the South Caucasus Pipeline, Trans Anatolian Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP)………………………………………..Full Article: Source

Temasek unit makes offer to buy Olam at $2.23 per share

Posted on 14 March 2014 by VRS  |  Email |Print

A unit of Singapore investment firm Temasek Holdings is making an offer to buy all the shares owned by minority shareholders in agri-commodities trader Olam International. It will pay $2.23 a share in cash, valuing the company at about $5.3 billion based on the number of outstanding shares.
Breedens Investments, an indirect wholly-owned subsidiary of Temasek, is also offering to buy all the outstanding convertible bonds and warrants issued by Olam, it said on Friday………………………………………..Full Article: Source

Carrefour seeks Brazil private stake sale; Diniz eyes deal

Posted on 14 March 2014 by VRS  |  Email |Print

France’s Carrefour SA could raise as much as 5 billion reais ($2.1 billion) from the sale of a stake in its Brazilian unit, with potential bidders including Brazilian tycoon Abilio Diniz and a sovereign wealth fund, a person with direct knowledge of the situation said on Thursday.
Another potential bidder is a sovereign wealth fund that the source would not name. While the structure of the deal is still under discussion, it could include the sale of a stake in Atacadão, Carrefour’s cash-and-carry wholesale unit, a second source said………………………………………..Full Article: Source

Russian finance ministry to wait before resuming fx buys

Posted on 13 March 2014 by VRS  |  Email |Print

Russia’s finance ministry said on Wednesday it will wait for at least another two weeks before resuming daily foreign currency purchases to transfer excess revenues to one of its sovereign wealth funds, partly because the rouble is too weak.
The ministry indicated last month that it would convert around $5.8 billion to add to its $87 billion Reserve Fund, one of two sovereign funds financed from oil taxes. It needs to convert the funds into foreign currency and announced a gradual transfer that would involve it buying the equivalent of 3.5 billion roubles ($95.8 million) a day over three months………………………………………..Full Article: Source

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