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Sovereign Wealth Funds Briefing - Category | Financials more

Russia’s Well for Corporate Bailouts Appears to Be Running Dry

Posted on 10 March 2015 by VRS  |  Email |Print

With the economy flailing, the Russian government set up a corporate bailout program last year, tapping one of the country’s sovereign wealth funds. Almost immediately, companies started applying. The state-owned oil giant Rosneft has requested $21.3 billion. Gazprom, the dominant natural gas player, has asked for $3.2 billion for a subsidiary.
The list goes on: Russia’s railroad monopoly, which is also the largest employer in the country; an owner of Moscow’s airports; a venture capital firm investing in nanotechnology; and a company exporting Russian nuclear power plants. But the sovereign wealth fund, the National Wellbeing Fund, might not have enough to cover their needs. The fund had roughly $75 billion in reserves at the beginning of the month………………………………………..Full Article: Source

IMF assumes Ukraine to get $15.4 billion from creditor talks

Posted on 10 March 2015 by VRS  |  Email |Print

The International Monetary Fund’s bailout programme for Ukraine assumes Kiev will be able to get $15.4 billion from talks with its creditors, according to four sources familiar with the IMF’s documents. The assumption is necessary to ensure Ukraine’s sovereign debt can fall to 70 percent of gross domestic product by 2020, a level the IMF would deem sustainable, according to three people.
Under its rules, the IMF cannot lend to countries unless it believes they will be able to pay back the money eventually. Targeting a particular level for debt renegotiation, considering debt talks have not yet begun, points to the uncertainty surrounding the $40 billion international rescue package for Ukraine announced last month………………………………………..Full Article: Source

Bain Said to Seek Up to $3 Billion for Asia Buyout Fund

Posted on 10 March 2015 by VRS  |  Email |Print

Bain Capital, the firm co-founded by former U.S. presidential candidate Mitt Romney, plans to seek $2.5 billion to $3 billion for its third Asia fund after a surge in the volume of buyout deals in the region last year, three people with knowledge of the matter said. Global private equity firms have been raising billions of dollars to devote to Asia as funds amassed from 2005 and 2008 reach the end of their investment cycles.
RRJ Capital, run by former executives of Goldman Sachs Group Inc. and Temasek Holdings, is seeking as much as $4.5 billion for a pool that will mostly invest in China, a person briefed on the matter said this month. Baring Private Equity Asia said in February it raised almost $4 billion for its sixth Asia-focused fund………………………………………..Full Article: Source

Priaro: Albertans must ‘look in the mirror,’

Posted on 09 March 2015 by VRS  |  Email |Print

In 2014, the government reported the Heritage Savings Trust Fund was worth $17.5 billion on March 31, 2014 and had achieved a 10-year annual average return of 7.5 per cent. However, in 1987, the value of the fund was $12.7 billion. In the intervening 27 years of Progressive Conservative governments under Don Getty, Ralph Klein, Ed Stelmach, Alison Redford and Dave Hancock, the fund grew by an average of only 1.4 per cent annually.
Adjusting for inflation averaging 3.1 per cent annually over the same period, the fund actually shrank in real terms by 33 per cent since 1987. The fund was established by Peter Lougheed in 1976 with an initial contribution of $1.5 billion from general revenue. Thirty per cent of Alberta’s resource revenue accrued to the fund from 1976 to 1982………………………………………..Full Article: Source

Malaysia’s 1MDB to be dismantled under debt plan: sources

Posted on 06 March 2015 by VRS  |  Email |Print

Malaysia’s indebted and controversy-ridden state investor 1MDB will be left as a skeletal structure and possibly dissolved under a debt repayment plan in which most of its assets will be sold, sources with direct knowledge of the matter said.
The power and property fund, a pet project of Prime Minister Najib Razak with assets worth US$14 billion, was hit by losses last year and nearly defaulted on a loan payment. The near-miss drove down the ringgit currency and Malaysian government bonds and prompted calls from opposition leaders to make the fund’s accounts more transparent………………………………………..Full Article: Source

HKBN IPO priced at top of range as GIC, CVC, Carlyle raise nearly S$1b

Posted on 06 March 2015 by VRS  |  Email |Print

US private equity firm CVC Capital Partners, Singapore’s sovereign wealth fund GIC and a unit of Carlyle Group raised a combined HK$5.5 billion (S$966 million) after Hong Kong’s second-largest broadband Internet provider HKBN priced its initial public offering at the top end of the marketed range, people familiar with the deal said today (March 5).
The IPO was priced at HK$9 per share, at the top of the HK$8 to HK$9 indicated range, said the sources, who couldn’t be named because details of the sale of 645 million shares weren’t yet public. Two other investors raised about HK$310 million in the listing, from which HKBN - previously known as Hong Kong Broadband Network - itself received no funds. No new shares were offered in the sale, worth HK$5.8 billion in total………………………………………..Full Article: Source

CVC, GIC, Carlyle raise $750 mln after HKBN prices IPO at top of range

Posted on 05 March 2015 by VRS  |  Email |Print

Private equity firm CVC Capital Partners, a unit of Carlyle Group LP and Singapore’s sovereign wealth fund GIC raised a combined $750 million after Hong Kong’s second-largest broadband Internet provider, HKBN, priced its initial public offering at the top of expectations, IFR reported on Thursday citing people familiar with the deal.
The IPO was priced at HK$9 per share, at the top of the HK$8 to HK$9 marketing range, according to IFR, a Thomson Reuters publication. CVC, GIC and Carlyle’s AlpInvest Partners were among HKBN shareholders offering 645 million existing shares in the IPO. HKBN, previously known as Hong Kong Broadband Network, raised no funds from the offering………………………………………..Full Article: Source

Russian state’s rainy day fund drops as finances squeezed

Posted on 04 March 2015 by VRS  |  Email |Print

The Russian government’s rainy-day fund has shrunk by almost 10 percent in dollar terms in February after the state sought to fill a hole in its budget, where revenues have suffered due to low oil prices. The Reserve Fund is used to support Russian public finances in time of low oil and gas prices and is held in dollars, euros and British pounds. It fell to $77.05 billion from $85.09 billion in January, the finance ministry said Tuesday. The fall in ruble terms was sharper, almost 20 percent, since the ruble gained ground against the dollar and other currencies last month.
The finance ministry said the government had used 500 billion rubles ($8 billion) from the fund to supplement a drop in budget revenue. That followed a separate withdrawal of 50.48 billion rubles in January. Russia’s other main sovereign fund, the National Wealth Fund, rose by $900 million in February to $74.92 billion, the ministry said Tuesday, although its value in ruble terms fell……………………………………….Full Article: Source

Russian Wealth Fund Falls Most Since 2010 as Deficit Widens

Posted on 04 March 2015 by VRS  |  Email |Print

Russia’s Reserve Fund dropped the most in more than four years last month as the government unsealed one of the country’s two sovereign wealth funds to cover a widening budget deficit.
The holdings shrank $8 billion to $77.1 billion, the lowest since December 2012, as the Finance Ministry used its maximum yearly allowance of 500 billion rubles ($8 billion) for budget financing, according to a Tuesday statement by the ministry in Moscow. The fund disposed of securities equal to $3.6 billion, 3.1 billion euros ($3.5 billion) and 510 million pounds ($769 million)……………………………………….Full Article: Source

Oil Price Slump: NSIA Rules Out Withdrawal from SWF

Posted on 04 March 2015 by VRS  |  Email |Print

The federal government is unlikely to make withdrawals from Nigeria’s Sovereign Wealth Fund (SWF), even as the price of crude oil declines. The Nigeria Sovereign Investment Authority (NSIA), set up in 2012, isn’t yet large enough to make withdrawals worthwhile, the organisation’s Managing Director/Chief Executive, Mr. Uche Orji, said in an interview with Bloomberg Television at the Global Financial Markets Forum in Abu Dhabi. Withdrawals will be an option in future years once the fund is larger, Orji said.
The Nigerian government had proposed cutting the oil-price benchmark to $52 a barrel from $65 a barrel suggested in December as a result of the drop in oil prices. The plan, supported by the Nigerian senate, must be approved by lawmakers in the House of Representatives. Nigeria relies on oil exports for more than 90 per cent of foreign exchange income and 70 per cent of government revenue. Revenue raised from oil sold for more than the budgeted benchmark is saved in the Excess Crude Account……………………………………….Full Article: Source

Middle East and Africa private wealth set to hit $7.2t by 2018

Posted on 04 March 2015 by VRS  |  Email |Print

With private wealth in the Middle East and Africa projected to reach $7.2 trillion by 2018, Dubai International Financial Centre is well positioned with its laws and regulations modified specifically to help firms tap this opportunity and bring world-class wealth management competence into the region, Abdul Aziz Al Ghurair, vice-chairman of the Dubai International Financial Centre, or DIFC, said on Tuesday.
“The Middle East and North Africa is home to nine of the world’s largest sovereign wealth funds with assets of approximately $2 trillion. Other institutional wealth in the region includes GCC pension funds, whose assets are set to grow 8.8 per cent a year to reach $5 trillion by 2020.”………………………………………Full Article: Source

MAS turnaround takes off with Khazanah’s $603m boost

Posted on 04 March 2015 by VRS  |  Email |Print

Sovereign wealth fund Khazanah Nasional said yesterday it will kick-start the immensely challenging task of turning around flag carrier Malaysia Airlines (MAS) with a RM1.6 billion (S$603 million) injection and cost savings through contract reviews.
MAS has been badly hurt financially after the disappearance of Flight MH370 on March 8 last year, and the shooting down of MH17 over Ukraine four months later. Both disasters prompted some travellers to avoid MAS. Its last reported quarter (July to September last year) showed planes were 11.3 per cent less full compared to the number a year ago……………………………………….Full Article: Source

Future Fund seeks global tax consultant

Posted on 03 March 2015 by VRS  |  Email |Print

The $110 billion Future Fund is in the market for a global tax consultant to help the sovereign wealth fund put its tax affairs in order following the Lux Leaks scandal that erupted last year. The tender for the Future Fund’s new Melbourne tax service comes just months after the group was revealed to have used tax haven Luxembourg and entities in the Cayman Islands to minimise taxes.
Future Fund chief financial officer Paul Mann brushed off suggestions the tender process was linked to the scandal. “The global tax consultant service is being tendered because the original term for the contract has expired,” Mr Mann said………………………………………..Full Article: Source

Nigerian Sovereign Fund Doesn’t Expect State to Tap It for Funds

Posted on 03 March 2015 by VRS  |  Email |Print

The government of Nigeria is unlikely to make withdrawals from the sovereign wealth fund in Africa’s largest oil producer, even as the price of crude declines. The Nigeria Sovereign Investment Authority, set up in 2012, isn’t yet large enough to make withdrawals worthwhile, Uche Orji, managing director and chief executive officer, said in an interview with Bloomberg Television at the Global Financial Markets Forum in Abu Dhabi.
Withdrawals will be an option in future years once the fund is larger, he said. The Nigerian government has proposed cutting the oil-price benchmark to $52 a barrel from $65 a barrel suggested in December as a result of slumping prices. The plan, supported by the Nigerian senate, must be approved by lawmakers in the House of Representatives………………………………………..Full Article: Source

Exactly where sovereign wealth funds are stashing their cash

Posted on 03 March 2015 by VRS  |  Email |Print

The world’s premier state-owned investment decision money have been investing profits from oil and fuel reserves to economical markets to aid diversify absent from their reliance on commodities.
True estate has turn into a beloved among the some of the world’s biggest sovereign prosperity funds these as Norway’s Government Pension Fund World-wide (GPFG), which now has close to $893 billion under administration in accordance to Sovereign Wealth Fund Institute and the Qatar Investment Authority, but resources are now progressively eyeing choice assets to supply new revenue streams and wide range for their portfolios………………………………………..Full Article: Source

Temasek faces new normal as Singapore eyes funds

Posted on 02 March 2015 by VRS  |  Email |Print

Temasek Holdings’s long-term investing strategy will have to include more short-term and liquid assets after the Government opened up the option to draw more funds from the state-owned investment company.
Singapore’s Government is “now ready” to include part of Temasek’s capital gains in its annual budget as the country spends more on its subway network, airport, education and social security to support an ageing population, Finance Minister Tharman Shanmugaratnam said in his Budget Statement on Feb 23. ……………………………………….Full Article: Source

NZ Super Fund challenges European senior bank debt precedent

Posted on 02 March 2015 by VRS  |  Email |Print

The New Zealand Superannuation Fund is concerned its loss of US$150 million in the collapse of Portugal’s Banco Espirito Santo has set a precedent endangering protections for holders of senior bank debt under Europe’s new bank resolution laws.
The sovereign wealth fund with NZ$28 billion under management launched legal action last week to recover funds it lent to BES in July last year through a vehicle called Oak Finance. The deal was arranged by Goldman Sachs and protected by credit default swap insurance………………………………………..Full Article: Source

Of Najib, 1MDB & the DISAPPEARANCE of Malaysia’s public funds

Posted on 02 March 2015 by VRS  |  Email |Print

The statements given by Prime Minister Datuk Seri Najib Razak and 1Malaysia Development Berhad (1MDB) chairman Tan Sri Lodin Wok Kamaruddin pertaining to the funding and the status of the 1MDB, and whether it involves public funds or not, are rather confusing for the people to grasp.
While Najib stated that, “I wish to stress here that 1MDB is a strategic investment fund owned by the Malaysian government and I will not allow anyone to use or misappropriate public funds for personal interest or gain,”… in the official 1MDB website Lodin wrote,”… whereas a sovereign wealth fund is directly funded by the government and invests on its behalf, 1MDB raises and invests its own capital………………………………………..Full Article: Source

Mumtalakat ‘has no plans to sell assets’

Posted on 02 March 2015 by VRS  |  Email |Print

Mumtalakat does not plan to sell off any assets this year and would pursue business projects as usual, its top official has said. The sovereign wealth fund’s chief executive Mahmood Al Kooheji said this during a keynote interview on the fund’s priorities for the year ahead and the importance of transparency and corporate governance.
Mumtalakat invests in strategic non-oil Bahraini enterprises and manages around $10 billion of assets. The interview was held at 4th GCC Financial Forum, co-hosted by the Economic Development Board, with more than 500 industry officials, financiers, energy professionals and analysts discussing the impact of decline in oil prices on Bahrain’s real economy, the kingdom’s hydrocarbons strategy and future dynamics for the financial sector………………………………………..Full Article: Source

Malaysia sovereign fund plans $279 mln “social impact” sukuk

Posted on 27 February 2015 by VRS  |  Email |Print

Malaysia’s $40 billion sovereign wealth fund Khazanah Nasional plans to issue a sukuk worth up to one billion ringgit ($279.17 million) to help fund schools, its managing director said on Thursday.
Speaking to Reuters on the sidelines of an Islamic finance event in London, the fund’s head Azman Mokhtar said the planned “social impact sukuk” is awaiting regulatory approval from Malaysian financial regulators. The move is aimed at opening funding for education to a broad pool of investors rather than financing it out of its own reserves, he added………………………………………..Full Article: Source

PAC wants AG to audit 1MDB immediately

Posted on 27 February 2015 by VRS  |  Email |Print

The Public Accounts Committee (PAC) wants the Auditor General’s Department to immediately carry out an audit of the government-owned 1MDB’s deals before it calls up the company.
PAC chairman Datuk Nur Jazlan Mohamed said the immediate audit should be of the source of the RM2 billion used to settle 1MDB’s loans with local banks, the RM3 billion injection of government funds into the debt-laden company, its dealings with PetroSaudi International (PSI), and whether the money parked in Cayman Islands has been brought back………………………………………..Full Article: Source

Samruk-Kazyna limits forex transactions of its subsidiaries

Posted on 26 February 2015 by VRS  |  Email |Print

Samruk-Kazyna National Wealth Fund of Kazakhstan has instructed its subsidiaries to abstain from making unnecessary foreign currency transactions, Tengrinews reports citing the head of the Fund Umirzak Shukeyev as saying at the press-briefing in the Central Communication Service’s headquarters on February 20.
“To support the Kazakh national currency we have introduced a special corporate standard that prohibits all of our subsidiaries from making unnecessary foreign exchange transactions. Unless there is a specific business need for such a transaction they will have to justify it to us that they really need the foreign currency,” he said………………………………………..Full Article: Source

Russian Direct Investment Fund Consortium to Acquire Shares in Vladivostok International Airport

Posted on 26 February 2015 by VRS  |  Email |Print

The consortium comprising the Russian Direct Investment Fund (RDIF), a $10 billion fund established to make equity investments into Russian economy, Changi Airports International (CAI), a wholly-owned subsidiary of the world’s leading airport operator Changi Airport Group, and Basic Element, one of Russia’s diversified industrial groups, has been announced as the winner of the tender to acquire shares in Vladivostok International Airport in Russia’s Far East. Each member will hold an equal share in the consortium.
The consortium’s bid was recognised as the best based on the strength of the technical, legal and financial components in the submission. The transaction will be closed after regulatory approvals are received. Vladivostok International Airport is strategically important for the development of the air transportation system in the region due to its geographical location - the crossing of two air routes between the Russian Far East and the Asia Pacific region. (Press Release)

Kazakhstan’s sovereign wealth fund to optimize its costs

Posted on 24 February 2015 by VRS  |  Email |Print

Kazakhstan’s Sovereign Wealth Fund Samruk-Kazyna in 2014 commissioned 13 projects worth US $2.9 billion and created more than 5.6 thousand temporary and 1.2 thousand permanent jobs, the Fund’s CEO Umirzak Shukeyev said last Friday while reporting on measures to implement the head of state’s instructions and Nurly Zhol program, and on the Fund’s financial results for the past year.
Samruk-Kazyna group of companies closed the year 2014 fairly well, Shukeyev said. According to preliminary data, the net income of the group was estimated at 458 billion tenge, the Fund said in a press release. The Fund has developed a set of measures in line with the President’s instructions, including optimization of its costs by 337 billion tenge or 7%………………………………………..Full Article: Source

SOFAZ assets rose to $ 37.42 bln in 2014

Posted on 24 February 2015 by VRS  |  Email |Print

For current year estimated decline 3 billion in the wake value crude (Il Sole 24 Ore Thomson Financial) - Baku, Feb. 23 - Sofaz, the Sovereign Fund of Azerbaijan closes 2014 with assets worth a total of 37.42 billion dollars , up from 3.42 billion on an annual basis. During 2014, revenues primarily from royalties until amounted to 15.729 billion dollars.
The outputs in favor of the state budget were approximately 12.9 billion in addition to funding for other special initiatives: scholarships for deserving students abroad, support for refugees from the region of Nagorno Karabakh occupied by Armenia, financing Kars railway line Baku Tbilis connection with Turkey, the company ‘management of pipelines and refinery Tap and Tanap Star-Petkim in Turkey……………………………………….Full Article: Source

Manat öldu: Devaluation in favour of Oil Fund

Posted on 24 February 2015 by VRS  |  Email |Print

Devaluation of manat on February 21 has identified the only player who won as a result of the Central Bank’s decision: the State Oil Fund of Azerbaijan (SOFAZ). In spite of foreign estimates manat devaluation didn’t cause total panic in Baku. In general, people treated this situation from philosophical point of view and even tried to joke. Thus, for example, today a man and his wife exchanged the following words while admiring fresh frosty air in the morning: “Nə “клёво”? Manat öldu” (What’s good in it? Manat has died).
Manat has died. It can rise from dead but there’s a direct beneficiary of its death. Such beneficiary is SOFAZ, which receives revenue in US dollars and transfers manats to the state budget………………………………………..Full Article: Source

Projected earnings of Temasek Holdings to be part of Govt’s Net Investment Returns Framework

Posted on 24 February 2015 by VRS  |  Email |Print

With government spending set to increase, Finance Minister Tharman Shanmugaratnam said that it is necessary to take steps to strengthen future revenues, with the first step being to include the projected earnings of Temasek Holdings in the Net Investment Returns (NIR) framework. Under this framework, the Government is allowed to spend up to 50 per cent of the expected long-term real returns on net assets managed by the investment entities of Monetary Authority of Singapore and GIC.
The portolios of GIC and MAS are already part of the NIR framework. The inclusion of Temasek Holdings was deferred as there was no established methodology for projecting the long term expected real returns on its portfolio, as well as its still evolving investment strategy, said Mr Tharman, who delivered the Budget Statement in Parliament today (Feb 23)………………………………………..Full Article: Source

Temasek to contribute more to govt coffers

Posted on 24 February 2015 by VRS  |  Email |Print

In a surprise move, Temasek Holdings from 2017 will be contributing more to the government’s coffers as it gets included in the Net Investment Returns (NIR) framework. It has been contributing about S$2 billion of dividends on average in the last five years. Singapore will include the total expected returns from Temasek Holdings in its NIR framework, said Tharman Shanmugaratnam, Deputy Prime Minister and Finance Minister, on Monday.
The current NIR framework - implemented in 2009 - permitted the government to spend up to 50 per cent of the expected long-term real returns on its net assets managed by GIC, and the Monetary Authority of Singapore (MAS)………………………………………..Full Article: Source

GIC among shareholders in HKBN IPO that could raise S$1b

Posted on 24 February 2015 by VRS  |  Email |Print

HKBN, Hong Kong’s second-largest broadband Internet provider, will launch its initial public offering today, with shareholders including GIC looking to raise up to HK$5.8 billion (S$1 billion), Thomson Reuters’ IFR reported. At the top of its indicative range, the IPO would be the second-largest in the Asia-Pacific region this year, after the US$1.13 billion (S$1.5 billion) raised by Jasmine International’s Internet infrastructure fund in Bangkok earlier this month.
GIC, private equity firm CVC Capital Partners, HKBN’s management and other shareholders will offer 645 million existing shares in an indicative range of HK$8 to HK$9 each, IFR said, citing sources familiar with the plans. HKBN, previously known as Hong Kong Broadband Network, will raise no funds from the IPO, with all proceeds going to GIC and other selling shareholders………………………………………..Full Article: Source

Malaysia’s teetering state investment fund plagued by scandal

Posted on 24 February 2015 by VRS  |  Email |Print

By meeting a repayment deadline for the first time in months, Malaysia’s troubled sovereign wealth fund, 1Malaysia Development Berhad, seems to have staved off a debt crisis that threatened the country’s entire banking system. Reports in Kuala Lumpur say Malaysian billionaire Ananda Krishnan came up with the $693 million that the fund, known as 1MDB, was due to repay by February 18 to the country’s largest bank, Malayan Banking Bhd, and a smaller financial house, RHB Capital Bhd.
While the payment appears to have given 1MDB some breathing space after the fund repeatedly failed to meet debt repayment deadlines, it has done nothing to remove questions about the $14.5 billion in debts the fund has accumulated since its founding in 2009………………………………………..Full Article: Source

1MDB chief: PetroSaudi deal made RM1.78b in profits

Posted on 24 February 2015 by VRS  |  Email |Print

Troubled sovereign fund 1Malaysia Development Bhd (1MDB) claimed that a joint venture (JV) with a Saudi Arabian company six years ago, which critics claimed was shady, had earned it a profit of US$488 million (RM1.78 billion).
In a statement on the company’s website, 1MDB president Arul Kanda Kandasamy also claimed that the money it had invested in the JV had been converted into murabaha notes when the plan did not go through. Earlier reports claimed that 1MDB had put US$1 billion into the deal with PetroSaudi International Ltd, a company with an allegedly sketchy track record………………………………………..Full Article: Source

Show Proof Of 1MDB’s US$488m Profit Whereabouts, DAP Insists

Posted on 24 February 2015 by VRS  |  Email |Print

DAP’s National Publicity Secretary Tony Pua today demanded the country’s 1Malaysia Development Board (IMDB) president Arul Kanda Kandasamy show proof of the whereabouts of a purported US$488 million profit from its joint venture with PetroSaudi International.
“Arul Kanda Kandasamy proudly announced that the sovereign fund made the US$488 million of profit from the PetroSaudi transaction but what we have at hand is at least US$1.1 billion missing in unknown whereabouts. “The next question to ask is hence, where exactly is the US$488 million of paper profit Arul was talking about,” said Pua who is also MP for Petaling Jaya in a press conference at the DAP’s headquarters………………………………………..Full Article: Source

Howai: No HSF deposits this year

Posted on 24 February 2015 by VRS  |  Email |Print

There will be no deposits to the Heritage and Stabilisation Fund (HSF) for this year. This has been confirmed by Finance Minister Larry Howai who told Guardian Media Limited who explained that because the price of oil has fallen below the price identified in the national budget, “there will be no room to make any deposits this year.”
Over the past 42 years that T&T has been exporting oil and gas, billions of dollars have been earned in revenue which has been used for many of the social and infrastructural projects the country benefits from today………………………………………..Full Article: Source

Kazakh state wealth fund considers up to $2.5 bln borrowing in 2015

Posted on 23 February 2015 by VRS  |  Email |Print

Kazakhstan’s sovereign wealth fund Samruk-Kazyna is considering borrowing up to $2.5 billion this year abroad or domestically, depending on market conditions, fund chief Umirzak Shukeyev said on Friday. “We will probably need to borrow $2 billion or up to $2.5 billion this year,” Shukeyev told a news briefing. “We are now thinking where to borrow. It will all depend on conditions.”
“If conditions on external markets are attractive enough for us, we will tap foreign markets, although right now we see that the siatuation on the internal market is more favourable for us to borrow.”……………………………………….Full Article: Source

Kazakh Fund Says FX Sales Alone Won’t Shore Up Tenge

Posted on 23 February 2015 by VRS  |  Email |Print

Kazakhstan’s sovereign wealth fund, which controls oil producer KazMunaiGaz and the nation’s rail monopoly, said selling its companies’ foreign-currency earnings alone won’t stave off pressure on the tenge to decline.
“We are ready to fully support” a request to stabilize the tenge and the Kazakh financial sector, “but we will do it intelligently, taking into account the needs of every unit,” Yelena Bakhmutova, deputy chief executive officer of the fund, known as Samruk-Kazyna, said in an interview in Almaty on Friday. “We will try to implement our part, but I am afraid that our deeds alone won’t change the situation on the market.”……………………………………….Full Article: Source

Malaysia’s 1MDB Says May Sell Land Assets, Equity in Projects

Posted on 20 February 2015 by VRS  |  Email |Print

Malaysia’s 1MDB said it may sell assets and its real estate projects will sell land development rights and could enter into profit-sharing joint ventures, as the state fund seeks to cut down on its massive debt burden. Announcing the completion of a strategic review that begun last month, the fund also said it will meet maturing debt by refinancing from “best available sources” or repay it through the sale of land development rights.
1MDB has racked up debt of 41.9 billion ringgit ($11.6 billion) in a major spending spree to build up a portfolio of power plants. It confirmed that it plans to list its power assets this year. 1MDB’s debt woes have weighed on the ringgit in recent months. The ringgit was up 0.2 percent against the dollar after the announcement………………………………………..Full Article: Source

Permanent Fund gains 3.2 percent in most recent quarter

Posted on 19 February 2015 by VRS  |  Email |Print

The Alaska Permanent Fund returned 3.2 percent in the most recent quarter of fiscal 2015, bringing the year-to-date return to 1.9 percent.
The fund’s value is $52.8 billion as of Dec. 31, 2014, according to a news release. The statuatory net income — the amount used to calculate the annual Permanent Fund Dividend — was $597 million for the quarter………………………………………..Full Article: Source

Alaska Permanent gains 3.2% in quarter, surpassing benchmark by 110 basis points

Posted on 18 February 2015 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 3.2% for the quarter ended Dec. 31 and 1.9% fiscal-year-to-date, said a news release from the $52.8 billion sovereign wealth fund. The permanent fund’s strategic risk benchmark returned 2.1% and 0.5%, respectively, during the same periods. The permanent fund’s fiscal year ends June 30.
For the quarter, U.S. equity returned 5%; real estate, 4.6%; non-U.S. bonds, 2.8%; private equity, 2.2%; outsourced CIO allocations, 1.3%; U.S. bonds, 1.1%; global equity, 0.7%; infrastructure, 0.3%; absolute-return funds, 0.1%; private markets outsourced CIO allocations, -1.39%; non-U.S. equity, -3.7%; and multiasset emerging markets, -3.5 %………………………………………..Full Article: Source

Khazanah signs up luxury hotel firm

Posted on 18 February 2015 by VRS  |  Email |Print

Khazanah Nasional Bhd unit Destination Resorts and Hotels Sdn Bhd (DRH) is set to venture into another luxury hotel development here, tying up with Thailand-based Minor Hotel Group. The two parties inked an agreement last week to set up the first Anantara luxury resort in Malaysia, at a location yet to be decided.
Minor Hotel chairman William Heinecke said in a statement that the Thai firm may open more than one Anantara hotel in Malaysia. “We believe there is a vast potential for growth in the tourism sector in this beautiful country.” DRH is now undertaking the development of Desaru Coast, the region’s first integrated destination resort located at the south eastern Johor coastline………………………………………..Full Article: Source

Azerbaijan’s Devaluation in Disguise

Posted on 18 February 2015 by VRS  |  Email |Print

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

Temasek sold 7.3 million shares in Alibaba during rally

Posted on 17 February 2015 by VRS  |  Email |Print

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

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

Posted on 17 February 2015 by VRS  |  Email |Print

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

Temasek Sold Alibaba Shares Last Quarter, Added Gilead

Posted on 16 February 2015 by VRS  |  Email |Print

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

Malaysian Fund 1MDB Settles $550M Loan With Lenders

Posted on 16 February 2015 by VRS  |  Email |Print

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

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

Posted on 16 February 2015 by VRS  |  Email |Print

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

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

Posted on 12 February 2015 by VRS  |  Email |Print

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

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

Posted on 12 February 2015 by VRS  |  Email |Print

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

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

Posted on 12 February 2015 by VRS  |  Email |Print

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

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

Posted on 10 February 2015 by VRS  |  Email |Print

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

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

Posted on 10 February 2015 by VRS  |  Email |Print

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

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