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Kazakh leader orders government to open oil fund for projects

Posted on 12 November 2014 by VRS  |  Email |Print

Kazakhstan’s president ordered his government on Tuesday to allocate $3 billion from the National Fund every year from 2015 to 2017 to bolster growth in an economy hit by falling oil prices and a slowdown in Russia.
The National Fund, which is replenished with windfall revenues from oil exports, stood at $76.8 billion as of Oct 31. Kazakhstan, Central Asia’s largest economy and the second-largest former Soviet oil producer after Russia, similarly tapped its fund after being hard hit during the global financial crisis of 2007-09, spending $10 billion to cushion the effects………………………………………..Full Article: Source

Annual $3 billion to be allocated out of National Oil Fund to bolster nation’s wellbeing

Posted on 12 November 2014 by VRS  |  Email |Print

As part of his Address to the Nation, Kazakhstan’s President Nursultan Nazarbayev has instructed his Government to allocate another $3 billion annually for the following 3 years out of the National Oil Fund accumulating windfall oil revenues, a Tengrinews.kz journalist reports from an extended sitting of the Nur Otan Party Political Council.
“The accumulated funds should be channeled at enhancing the nation’s wellbeing and they should be handled prudently. I commission to allocate an annual $3 billion in 2015, 2016 and 2017”, he said………………………………………..Full Article: Source

DAP rep, in diatribe, says 1MDB risks defaulting RM42 billion loan

Posted on 12 November 2014 by VRS  |  Email |Print

1Malaysia Development Berhad’s (1MDB) dismal performance in paying up RM317.3 million for a land acquisition despite repeated extensions was a sign that it was financially stretched, said a DAP lawmaker in a scathing attack on the debt-ridden state investment vehicle.
Petaling Jaya Utara MP Tony Pua said 1MDB has just missed the third deadline to pay up for a RM317.3 million land from Tadmax Resources Bhd. “After paying the 10% deposit for the land in February this year, 1MDB had been unable to make payment for the balance of the transaction despite shifting the deadline from August 20 to September 30 to October 10 and then to October 31,” the lawmaker told reporters at the Parliament lobby today………………………………………..Full Article: Source

‘Distribution of ECA funds violates provisions’

Posted on 11 November 2014 by VRS  |  Email |Print

The distribution of Excess Crude Account (ECA) savings among the three tiers of government has been described as a violation of the provisions establishing it. ECA, which came into force in 2007, by the signing of a Memorandum of Understanding (MoU) between the Federal Government and the states, prominently featured a clause the prohibited access to the fund until it is in excess of a certain amount.
The Acting Chairman of the Fiscal Responsibility Commission (FRC), Victor Muruako, made the disclosure while presenting his paper titled “Fiscal Responsibility and Declining Oil Prices”, at the Fiscal Governance Forum in Abuja, Monday………………………………………..Full Article: Source

1MDB attempting to cover up massive losses by revaluing their assets, claims Rafizi

Posted on 11 November 2014 by VRS  |  Email |Print

PKR said that the controversial government-owned investment company 1Malaysia Development Berhad could face bankruptcy if it continued to record massive losses year after year. Pandan MP Rafizi Ramli, who is a strong critic of the sovereign wealth fund, said Putrajaya was trying to cover up the real losses recorded by 1MDB by revaluing the entity’s assets.
He revealed that for the financial year ending March 31, 2014, 1MDB had recorded a loss of RM665 million, which was based on its profit or loss and financial position statements that were audited and filed with the Companies Commission of Malaysia………………………………………..Full Article: Source

Russiam Minister Tells SWF to Disburse New Subsidized Loans for Russian Banks

Posted on 10 November 2014 by VRS  |  Email |Print

The Russian economic development minister has urged the country’s sovereign wealth fund to disburse subsidized loans to national banks to help them finance the Russian economy. “I think it is a good idea to use money from the National Wealth Fund as a basis for funding commercial banking operations so that our biggest lenders could get subsidized loans and, in their turn, give loans to such companies as [Russian crude producer] Rosneft and so on,” Economic Development Minister Alexei Ulyukayev said.
“It will be a win-win situation. [The National Wealth Fund] will make a good client and provide a predictable asset to the banks, reasonable loans on acceptable internal market conditions to companies, while the NWF will be able to make a transparent investment into a subsidized [financial] instrument. It could be carried out via NWF, or directly, or there can be other opportunities,” Ulyukayev said. The Russian National Wealth Fund (NWF) is Russia’s state-owned sovereign wealth fund investing in real and financial assets………………………………………..Full Article: Source

ICD sets up Dubal Holding

Posted on 10 November 2014 by VRS  |  Email |Print

Dubai’s sovereign wealth fund Investment Corporation of Dubai (ICD) has set up a new subsidiary – Dubal Holding – to manage its 50 per cent shareholding in Emirates Global Aluminium (EGA), said a press statement on Saturday.
ICD and Mubadala Development Company set up DGA by merging their subsidiaries Dubal and Emirates Aluminium (Emal). EGA’s combined annual production currently accounts for 50 per cent of the total primary aluminium produced within the Gulf Cooperation Council region………………………………………..Full Article: Source

Leak reveals Future Fund and multinationals’ secret offshore tax deals

Posted on 07 November 2014 by VRS  |  Email |Print

Directors of the Australian government’s Future Fund as well as PricewaterhouseCoopers, Macquarie and AMP could be forced to face a Senate inquiry into tax avoidance following a global investigation into secret tax deals in Luxembourg.
Thousands of leaked documents published by the International Consortium of Investigative Journalists on Thursday revealed how Australian and multinational companies used accounting firm PwC to strike deals in Luxembourg to shift profits and avoid tax………………………………………..Full Article: Source

MAS minority shareholders approve Khazanah plan

Posted on 07 November 2014 by VRS  |  Email |Print

Malaysia Airlines (MAS) minority shareholders have approved Khazanah Nasional Bhd’s privatisation offer of 27 sen a share at its EGM on Thursday. The proposal received 93.3% approval from the minority shareholders who turned up at the EGM, which was held at the MAS academy in Kelana Jaya.
This was the ailing airline’s most important EGM ever in its corporate history, as its fate was decided by the minorities to enable it to start afresh in July next year. Its share price fell to an intra afternoon low of 18.5 sen. At 4.30pm, it was unchanged at 26 sen………………………………………..Full Article: Source

1MDB bled RM665m in a year

Posted on 07 November 2014 by VRS  |  Email |Print

Sovereign wealth fund 1Malaysia Development Bhd (1MBD) booked a net loss of RM665.36 million in its previous financial year, a local daily reported today citing a filing with the Companies Commission of Malaysia (CCM).
According to a report by The Star, 1MDB’s filing showed a loss before tax of RM668.55 million against reported revenues of RM4.258 billion.The filing was made after the sovereign wealth fund closed its books yesterday, some seven months after the end of its financial year in March 31, 2014………………………………………..Full Article: Source

1MDB pulls out of Caymans

Posted on 07 November 2014 by VRS  |  Email |Print

1MALAYSIA Development Bhd’s (1MDB) RM7.18bil in offshore accounts in the Cayman Islands is expected to be channelled back to the country by December. “Sixty per cent of the money is already back. The remaining 40% will be brought back by the end of this year,” Deputy Finance Minis­ter Datuk Ahmad Maslan said in his reply to Tony Pua (DAP-Petaling Jaya Utara) when winding up his ministry’s debates on Budget 2015.
He said the repatriation would be done despite the profits of between 6% and 7% per annum from the investments. Later, when met at the Parlia­ment lobby, Ahmad said the money was being brought back to fund 1MDB’s projects such as the Tun Razak Exchange and Bandar Malaysia development projects………………………………………..Full Article: Source

Saudi Arabia’s sovereign wealth fund sees 9 percent asset growth since January

Posted on 06 November 2014 by VRS  |  Email |Print

Total assets of Saudi Arabia’s main sovereign wealth fund, SAMA Foreign Holdings (SAMA), have jumped 9 percent since January, allowing it to maintain its position as the world’s third-largest, according to a report by the Sovereign Wealth Fund Institute (SWFI).
In its most recent ranking of global sovereign wealth funds, the Washington-based SWFI said SAMA’s total assets had risen to 737.6 billion US dollars in October, up 9 percent from 675.9 billion dollars in January. However, Dr. Ali Al-Tuwati, an economics professor at the King Abdulaziz University in Jeddah, told Asharq Al-Awsat that SAMA’s position in the rankings would likely fall next year if global oil prices did not stabilize………………………………………..Full Article: Source

GIC-led group in talks to buy IndCor in S$10b deal

Posted on 05 November 2014 by VRS  |  Email |Print

GIC, the Republic’s sovereign wealth fund, is leading a consortium in negotiations to buy IndCor Properties from United States private equity giant Blackstone Group in a deal valued at about US$8 billion (S$10.3 billion), sources familiar with the matter said.Chicago-based IndCor, formed in 2010 as a portfolio company of Blackstone, holds warehouses and distribution centres across the US, said the company’s website.
“Talks are still ongoing. We don’t know whether there will be a deal yet,” said one source, who declined to be identified as the discussions remained confidential. A spokeswoman for GIC declined to comment, while Blackstone had not replied to an email seeking comment by press time………………………………………..Full Article: Source

Blackstone Said Near $8 Billion Deal to Sell IndCor Unit

Posted on 05 November 2014 by VRS  |  Email |Print

Blackstone Group LP is close to a deal to sell IndCor Properties Inc., an owner of U.S. industrial real estate, to investors led by Singapore’s GIC Pte for more than $8 billion, said two people with knowledge of the matter.
The GIC partnership is seeking $5 billion in debt to finance the acquisition, said one of the people, who asked not to be identified because the negotiations are private. The two sides have reached an agreement in principle that could still fall apart, another person said………………………………………..Full Article: Source

Will 1MDB change auditors again, asks DAP

Posted on 05 November 2014 by VRS  |  Email |Print

With 1Malaysia Development Bhd (1MDB) yet to submit its financial statements as required under the law, a DAP lawmaker has questioned whether the sovereign fund will change its auditors again.
Tony Pua (DAP - Petaling Jaya Utara) said as of yesterday, the company and its subsidiairies did not submit their financial statements to the Companies Commission despite the October deadline. The wealth fund last submitted the March 2013 statements in April this year, after a seven-month delay and a change of auditors from Ernst & Young to Deloitte Malaysia………………………………………..Full Article: Source

NZ Super Fund dumps AMP Capital

Posted on 03 November 2014 by VRS  |  Email |Print

The Guardians of New Zealand Superannuation, the manager of the NZ superannuation Fund, said it had terminated AMP Capital’s New Zealand active equities mandate, effective from last Thursday.
The value of the mandate was NZ$257.5 million. AMP Capital was appointed to the mandate in 2003. “The decision does not affect the Fund’s 5 per cent allocation to New Zealand equities,” the Guardians of NZ said in a statement. Superfund spokeswoman, Catherine Etheredge, declined to comment on the reasons for the move………………………………………..Full Article: Source

Khazanah divests Westports shares

Posted on 03 November 2014 by VRS  |  Email |Print

Malaysian stock market data has shown that Khazanah Nasional has started its divestment in Westports, seliing 161.52m shares in an off-market transaction.
The shares, which represented a 4.74 % stake, were transacted at an average price of MYR2.90 ($0.88) and were carried out via a book building exercise. Khazanah has previously announced it would divest stakes in non-core assets………………………………………..Full Article: Source

Why rich Norway can’t afford to be complacent

Posted on 03 November 2014 by VRS  |  Email |Print

Norway might have built up the world’s largest sovereign wealth fund, but it cannot afford to be complacent,the country’s finance minister told CNBC. Market volatility, falling oil prices and a slowdown in global economic growth are all factors that could put the country’s economic success at risk, Finance Minister Siv Jensen told CNBC on Friday.
Norway has amassed a vast amount of money due to its oil reserves. In 1990, it set up a sovereign wealth fund that has become the largest in the world, with a market value of $860 billion, according to Norges Bank which manages the fund…………………………………………Full Article: Source

Libya’s $60bn sovereign wealth fund thrown into chaos

Posted on 31 October 2014 by VRS  |  Email |Print

Libya’s $60bn sovereign wealth fund has been thrown into chaos by the sudden replacement of its chairman amid a fierce power struggle for control between the official elected government and Islamists who have seized control of the capital Tripoli. Former minister Abdulrahman Benyezza was replaced as chairman of the board of the fund on October 27, The Telegraph understands. His position was taken by Hassan Ahmed Bouhadi.
The change at the top of the Libyan Investment Authority (LIA) comes as the fund, which was the main investment vehicle of the former regime led by Muammar Gaddafi, is locked in a bitter court battle with Wall Street giant Goldman Sachs. The LIA is claiming that the bank cosied up to its employees and hoodwinked it into making $1.2bn-worth of trades during the Gaddafi era that it did not understand, and is seeking damages………………………………………..Full Article: Source

Harrods pays Qatari owners GBP118m dividend after record year

Posted on 31 October 2014 by VRS  |  Email |Print

The Qatari owners of Harrods have banked a £117.6m dividend on the back of another year of brisk trade at the London department store. The famous Knightsbridge store was snapped up by Qatar Holding, the investment arm of Qatar’s sovereign wealth fund, in 2010 for an estimated £1.5bn. The retailer’s parent group paid the dividend to a Qatari offshore company based in the tax haven of Bermuda. In 2013 the owners drew a dividend of £68.6m.
Operating profits at the store, which is heavily reliant on the wealthy tourists who flock to the capital, increased 13% to £122.9m on record sales of £794m in the year to 1 February. It also paid an internal royalty fee of £35.6m, according to the accounts for the Harrods Limited subsidiary………………………………………..Full Article: Source

1MDB denies claims over amassed debt, commissions paid

Posted on 31 October 2014 by VRS  |  Email |Print

Sovereign wealth fund 1 Malaysia Development Berhad today denied allegations that it was recklessly building up over RM37 billion in debt and impropriety in the commissions it paid for bond and fund-raising. In a statement on its website, 1MDB said that its ability to raise funds from quality investors showed the confidence vested in the firm, also pointing out that it had never missed any scheduled payments to its borrowers.
“All of our debt is backed by solid assets, and the total value of our assets (RM44.67 billion as at the financial year end of March 2013), comfortably exceeds the value of our total debts (RM37 billion for the same period),” it said in a lengthy statement in reply to concerns over its growing debt, which has attracted the attention of former prime minister Tun Dr Mahathir Mohamad………………………………………..Full Article: Source

Norway’s oil fund hit by European equities

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s $860bn oil fund made its first negative return in equities in more than two years as a weak performance by European stock markets hurt the world’s largest sovereign wealth fund.
Richard Milne, Nordic correspondent, reports that the oil fund made an overall return of 0.1 per cent in the third quarter as a positive performance by bonds rescued the negative return of 0.5 per cent from equities. European stocks - which still represent nearly half of the fund’s equities portfolio - had a negative return of 4.3 per cent while US and Asian stocks both performed well………………………………………..Full Article: Source

Norway Faces New Economic Realities With Oil’s Price Decline

Posted on 30 October 2014 by VRS  |  Email |Print

As global oil prices slide, there are signs Norway’s luck is running thin. On Wednesday, Statoil AS A, the oil and gas major 67%-owned by the Norwegian government, posted its first quarterly net loss since it floated on the stock market in 2001.
Separately, Norway’s $838 billion sovereign-wealth fund—the largest of its kind in the world that long has been fueled by oil revenues—said it achieved a slim 0.1% return on investments in the third quarter, thanks to a loss on its substantial holdings of European equities………………………………………..Full Article: Source

Norway’s Oil Fund Posts Flat Returns in 3Q–Update

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s oil fund, the world’s biggest sovereign wealth fund, reported a 0.1% profit on its investments in the third quarter, as a loss on its equity investments was offset by a fixed-income gain, and said geopolitical uncertainty was hurting European stocks while U.S. stocks gained.
Norges Bank Investment Management, the arm of the central bank that manages the fund, said Wednesday that earnings on its investments totaled 15 billion Norwegian kroner ($2.27 billion). The total value of the fund on September 30 was NOK5.534 trillion. Equity investments lost 0.5% in the third quarter, while fixed-income investments gained 0.9%, NBIM said. U.S. shares contributed positively, while European shares contributed negatively, NBIM said………………………………………..Full Article: Source

Tesco woes drag down Norway’s $860 bln wealth fund in third quarter

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s $860-billion sovereign wealth fund, the world’s largest, booked a flat return in the third quarter as it was dragged down by weak European stocks, foremost among them embattled retailer Tesco. The fund, one of the world’s biggest investors, is the top shareholder in the British supermarket group, which has lost 53 percent of its market value over the past year after an accounting scandal and a number of profit warnings.
“It is clear that our investment in the British company Tesco has performed particularly poorly in the course of the year,” Chief Executive Yngve Slyngstad told a news conference to present the fund’s third-quarter results………………………………………..Full Article: Source

IMF expects 14% fall of SOFAZ assets

Posted on 30 October 2014 by VRS  |  Email |Print

IMF expects 14.4% fall in assets of the State Oil Fund of Azerbaijan. According to the official report made by the IMF mission as a result of its visit to Baku, the State Oil Fund of Azerbaijan (SOFAZ) will close the year of 2014 with the assets at the level of $38.309 bn but already in 2015 they will fall to $32.802 bn.
Nevertheless, the Fund believes that the gross official international reserves of the government will grow. In 2014 they are expected to be at the level of $15.787 bn and in 2015 – at the level of $17.787 bn………………………………………..Full Article: Source

How Excess Crude Account Was Depleted From $9bn To $2bn – Okonjo-Iweala

Posted on 29 October 2014 by VRS  |  Email |Print

The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Monday disclosed how insistence by the states to share the money in the Excess Crude Account (ECA) resulted in the depletion of the account from $9 billion to $2 billion last year.
Okonjo-Iweala, who made this disclosure while defending the 2015-2017 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Policy (FSP) before the Joint Senate Committee on Finance and National Planning, said for the economy to remain stable, the ECA which she said later rose from $2 billion to $4.1 billion needs to be further raised and stabilised at $5 billion………………………………………..Full Article: Source

Nigeria needs to beef up excess crude account to $5bn – minister

Posted on 29 October 2014 by VRS  |  Email |Print

Nigeria’s Minister of Finance Ngozi Okonjo-Iweala, has said that Nigeria needs to raise its excess crude account, which currently stands at $4.1 billion to $5 billion in order to sustain stability of the economy. Nigeria’s Vanguard newspaper report on Tuesday said that Okonjo-Iweala told the Senate committees on Finance and National Planning, during consideration of the 2015-2017 Medium Term Expenditure Framework (MTEF) on Monday in Abuja that the excess crude account was built to be able to cushion us at times like this.
She explained that when the country had some kind of difficulties and “I think it played that role to perfection during the crises of 2008, when oil fell to 38 to 40 dollars per barrel”. “We have calculated that in order to help us regain this stability, we need a minimum of about 5 billion dollars and anything about that is good. The IMF actually calculated $6.3 billion to be maintained in that account………………………………………..Full Article: Source

Kuwait sovereign fund to resume selling stakes in local firms

Posted on 24 October 2014 by VRS  |  Email |Print

The Kuwait Investment Authority (KIA) has decided to resume selling stakes in major local companies to the public, planning to offer its stake in Kuwait Investment Co in the first half of 2015, state news agency KUNA reported.
The decision was made by KIA’s board of directors late on Wednesday, KUNA quoted the sovereign wealth fund as saying. The KIA, one of the world’s largest sovereign funds with assets estimated at over $400 billion, began offering stakes in listed Kuwaiti firms to the public in the 1990s as part of efforts to transfer more of the country’s corporate wealth into private hands………………………………………..Full Article: Source

Kuwait Wealth Fund to Sell $5.4 Billion of Company Stakes

Posted on 24 October 2014 by VRS  |  Email |Print

Kuwait Investment Authority, the sovereign wealth fund which started as a Bank of England account dedicated to receiving oil money, will sell stakes in three local companies worth 1.56 billion dinars ($5.4 billion).
The KIA, as the fund is known, will sell its Kuwait Investment Co. holding in a public offering in the first half of next year, according to a statement on the website of the official KUNA news agency. Kuwait Finance House and Mobile Telecommunications Co. shares will also be sold………………………………………..Full Article: Source

QIA assets rise to $450bn

Posted on 24 October 2014 by VRS  |  Email |Print

The size of Qatar Investment Authority ’s ( QIA ) assets has touched $450bn. The QIA has invested its fund in a wide range of sectors including banks, real estate, tourism, agriculture; both inside and outside Qatar, Al Sharq reported. The major focus of QIA ’s foreign investments is on West European countries like the UK, France and Germany.
The combined asset in these countries stands at an estimated $80bn. UK alone attracts $35bn. QIA has invested an estimated amount of $25bn in France, while in Germany’s industrial sector attracted $20bn. Total investments in the US stands at $11bn, the daily reported………………………………………..Full Article: Source

Korea Investment Corp. Learns Hard Lesson

Posted on 23 October 2014 by VRS  |  Email |Print

Korea Investment Corp. , South Korea’s $72 billion sovereign-wealth fund, found out the hard way that cutting out the middleman isn’t always easy. The fund began doing deals on its own, or “direct investing,” in the late 2000s, a shift from its practice of using private-equity firms to handle the deal making.
Direct investing allows sovereign-wealth funds to avoid paying fees to private-equity firms, which typically charge 2% on assets and take 20% of any profit, and an increasing number of funds and other big investors have been doing it. Hongchul Ahn, chairman and chief executive of KIC, said in an email last week that the fund will change its approach to direct investing after “disappointingly lower returns.”……………………………………….Full Article: Source

Rosneft Asks for $49 Billion From State Welfare Fund to Survive Sanctions

Posted on 23 October 2014 by VRS  |  Email |Print

State-owned oil major Rosneft has requested more than 2 trillion rubles ($49 billion) from one of Russia’s oil-revenue-funded, rainy-day reserves to help it weather Western sanctions, Finance Minster Anton Siluanov told news agency RIA Novosti on Wednesday.
The sum amounts to over half the cash stored in Russia’s National Welfare Fund, a sovereign wealth fund that was created as a backstop to Russia’s pension system and held 3.2 trillion rubles ($83.2 billion) as of Oct. 10………………………………………..Full Article: Source

Russia’s energy companies may seek aid from National Welfare Fund — Dvorkovich

Posted on 23 October 2014 by VRS  |  Email |Print

Russian oil and gas companies may seek financial aid from the country’s National Welfare Fund (NWF) amid Western sanctions, Deputy Prime Minister Arkady Dvorkovich said on Wednesday. “The government is ready to consider proposals on projects in the oil and gas sector,” Dvorkovich said at the national oil and gas forum.
The government has received proposals from Russia’s largest independent gas producer Novatek and oil giant Rosneft, Dvorkovich said, adding the “government will consider them seriously.”……………………………………….Full Article: Source

FG, states share $2.7bn from Excess Crude Account

Posted on 23 October 2014 by VRS  |  Email |Print

The country’s revenue fell by N99.55bn in the month of September, thereby causing the three tiers of government on Wednesday to share N2.7bn that should have been transferred to the Excess Crude Account.
The Accountant-General of the Federation, Mr. Jonah Otunla, said the technical meeting of the Federal Accounts Allocation Committee that held earlier had suggested the sharing of the $2.7bn, which ought to have been transferred to the ECA that was established to provide a buffer for the country in the face of fluctuations in international crude oil prices………………………………………..Full Article: Source

SOFAZ budget revenues exceed 10 bln manats

Posted on 22 October 2014 by VRS  |  Email |Print

The budget revenues of Azerbaijan’s state oil fund SOFAZ reached 10.131 billion manats in the third quarter of 2014. This comes as the fund’s budget expenditures constituted 8.041 billion manats during the same period of time.
“Some 9.969 billion manats was gained from the implementation of oil and gas agreements, including 9.947 billion manats from the sale of profit oil and gas, 6.8 million manats from transit payments, and 13.3 million manats from bonus payments. Revenues from payments per acre in the first half of 2014 amounted to 1.7 million manats,” SOFAZ said on October 20………………………………………..Full Article: Source

Only 4.4% of SOFAZ investment portfolio intended for active investment

Posted on 22 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ), known for its conservatism, intended no more than 4.4% of its investment portfolio or about $1.639 bn for active investment instruments.
According to the Fund, by October 1, 0.9% ($440.391 million) of its investment portfolio ($37.265 bn) was intended for project financing and 3.5% ($1.199 bn) was invested in stocks. The rest investments were passive: fixed-income securities (82.2% of portfolio), deposits and market instruments (7.4%), physical gold (3.2%) and real estate (2.8%)………………………………………..Full Article: Source

Can Nigeria Achieve A $6.3bn Excess Crude Account?

Posted on 21 October 2014 by VRS  |  Email |Print

At the recently concluded IMF/World Bank Annual Meetings, the World Bank, arguably prompted by recent global trends such as the drop in oil prices, had advised the Nigerian Federal Government to increase its fiscal buffers by raising the excess crude account from $4.1 billion to $6.3 billion, a 54 percent increase.
Dr Ngozi Okonjo-Iweala, Nigeria’s Minister of Finance, being a key representative of the country at the meeting, had re-assured Nigerians that the feat was achievable saying; “We would look at how we would strengthen the buffer. There is no cause for alarm, we are on top of the game.”……………………………………….Full Article: Source

State Oil Fund of Azerbaijan does not buy physical gold for 2 quarter at a run

Posted on 21 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has not bought physical gold for two quarters (Q2 and Q3 of 2014) at a run. The Fund informs that as of 1 October it had physical gold in the amount of $1.18 bn that was equivalent to 3.2% of its investment portfolio ($37.265 bn.
“By the reported date SOFAZ had at disposal 30.17 tons of gold (970,146 ounces),” the Fund reported. This level of reserves was similar to the indicator by 1 April 2014. Nevertheless, SOFAZ can buy more gold, at least, for $680.1 million, as investment rules allow the Fund to invest in physical gold up to 5% of its portfolio, that as of 1 October 1 was equivalent to $1.86 bn………………………………………..Full Article: Source

Oil Fund’s assets for Jan-Sept exceed $37.305 bn

Posted on 21 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) increased its assets by 3.98% for Jan-Sept 2014. According to SOFAZ, over the past 9 months of the year Oil Fund’s assets grew from $35.877 bn in early 2014 up to $37.305 bn. “During the first 9 months of 2014 Oil Fund’s revenues totaled AZN 10.1 bn and expenditures AZN 8.04 bn,” SOFAZ said in a statement.
As a result, the SOFAZ budget was implemented with surplus of AZN 2.09 bn. “Our revenues consist mainly from oil and gas PSA contracts in the amount of AZN 9.969 bn, including AZN 9.947 bn from profit oil and gas,” the Fund said………………………………………..Full Article: Source

Mainstream media gloss over GIC’s $269 million capital loss

Posted on 21 October 2014 by VRS  |  Email |Print

GIC had actually bought the property in June 2007 when the British pound was very strong against our currency at about 1GBP=$3.06. When converted into local currency, the purchase price would be a whopping $1.469 billion. GIC had therefore made a capital loss of about $269 million, a huge embarrassment to the government.
From June 2007 to October 2014, the British currency lost 33% against the Singapore dollar. GIC would of course have made some rental gains which is nothing to shout about – the property was bought near the top of the stock market cycle and rental yields and property prices are inversely correlated. Any net rental gains would have probably been offset by the capital loss and transaction costs. Our CPF investment yielded close to nothing………………………………………..Full Article: Source

SOFAZ revenues more than $2 bn from “Shah Deniz”

Posted on 20 October 2014 by VRS  |  Email |Print

The reserves are estimated at 1.2 trl of cubic meters of gas. As of October 1, 2014, since 2007 the revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project of gas condensate field “Shah Deniz” in the Azerbaijani sector of the Caspian Sea amounted to $2,006 m.
Oxu.Az reports citing Day.az that the information was provided by the State Oil Fund. According to the fund, from January to October 1, 2014 the State Oil Fund in the framework of the “Shah Deniz” project received $409 m………………………………………..Full Article: Source

Where did RM4 billion for Putrajaya’s SRC International go, asks DAP

Posted on 17 October 2014 by VRS  |  Email |Print

Prime Minister Datuk Seri Najib Razak must explain what has happened to a RM4 billion loan secured by a wholly-owned subsidiary of the Ministry of Finance, which failed to submit its annual accounts on time, a DAP lawmaker said today.
Petaling Jaya Utara MP, Tony Pua said SRC International Sdn Bhd had secured a RM4 billion Islamic loan from the government’s pension fund, Kumpulan Wang Amanah Persaraan (KWAP), and which was guaranteed by the federal government.The loan was disbursed in two tranches in August 2011 and March 2012……………………………………….Full Article: Source

Afghanistan, Kazakhstan ready to join BTK project

Posted on 17 October 2014 by VRS  |  Email |Print

Afghanistan and Kazakhstan are interested in joining the Baku-Tbilisi-Kars (BTK) railway project, Azerbaijan’s Transport Minister Ziya Mammadov told reporters on Oct.16. He made the remarks on the sidelines of the “Baku-Tbilisi-Kars railway line - new opportunities in the development of the Silk Road” international conference in Baku.
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) finances the project in accordance with the Azerbaijani president’s decree ‘On the implementation of the Baku-Tbilisi-Kars project activities’ dated February 21, 2007………………………………………..Full Article: Source

Khazanah’s SCR offer ‘fair’, says MAS

Posted on 16 October 2014 by VRS  |  Email |Print

Malaysia Airlines (MAS) says its minority shareholders should accept Khazanah Nasional Bhd’s proposed selective capital reduction and repayment exercise (SCR) for the national airline as it is “fair”. MAS directors yesterday recommended the plan after the audit committee found parent Khazanah’s offer fair and reasonable, MAS said in a filing to Bursa Malaysia.
Khazanah in August proposed 27 sen per share totalling RM1.38 billion to buy the remaining 30.6 per cent stake it doesn’t own in the airline. The sovereign wealth fund plans to delist MAS by buying out the minority shareholders in the first stage of restructuring………………………………………..Full Article: Source

MAS asks shareholders to take Khazanah’s RM1.38b offer

Posted on 16 October 2014 by VRS  |  Email |Print

Malaysian Airline System Bhd., the carrier reeling from the crash of two planes this year, said small shareholders should accept a buyout offer from the carrier’s majority owner as it called the proposal fair. The airline’s directors recommended the plan after the audit committee found parent Khazanah Nasional Bhd.’s offer fair and reasonable, the Subang, Malaysia-based company said in a statement to the stock exchange today.
In August, the sovereign wealth fund proposed 27 sen per share, totalling RM1.38 billion (US$421 million), to buy the remaining 30.6 per cent stake it doesn’t own in the company. Khazanah is delisting the airline by buying out minority shareholders in the first stage of restructuring aimed at reviving the flag carrier………………………………………..Full Article: Source

Nigeria: World Bank Tasks FG to Raise Excess Crude Account to U.S.$6.3 Billion

Posted on 16 October 2014 by VRS  |  Email |Print

The World Bank has advised the federal government to increase its fiscal buffers by raising the excess crude account (ECA) to $6.3 billion. Finance Minister, Dr. Ngozi Okonjo-Iweala, disclosed this in Washington DC, saying the World Bank tasked the Federal Government on the need to increase its fiscal buffers by building external reserves to about $6.3 billion, up from the present level of $4.1 billion.
Speaking to Nigerian journalists at the end of the 2014 annual meetings, Okonjo-Iweala assured: “we would look at how we would strengthen the buffer. There is no cause for alarm; we are on top of the game. We have to be realistic about our ability to spend.”……………………………………….Full Article: Source

Putrajaya bailing out 1MDB by boosting IPO value, says DAP lawmaker

Posted on 15 October 2014 by VRS  |  Email |Print

Putrajaya is bailing out 1Malaysia Development Bhd (1MDB) through several power plant projects worth billions of ringgit, DAP national publicity secretary Tony Pua said. Pua, the Petaling Jaya Utara MP, questioned the latest power project awarded to 1MDB – a 2,000MW gas-turbine power plant in Malacca given via direct negotiation.
He said although the government had rescued 1MDB in a written reply to his parliamentary question on a power project awarded to 1MDB, circumstances as to how the tenders were awarded suggested otherwise………………………………………..Full Article: Source

Future Fund shows punters the way

Posted on 15 October 2014 by VRS  |  Email |Print

The Future Fund is on track for to exceed its CPI plus 4.5% target this financial year, after earning a solid 2.9% in the September quarter. Australia’s sovereign wealth fund may benefit from any further outperformance of international markets. It holds a hefty 34.1% of its portfolio in global equities, including 24.4% in Developed Markets offshore, versus just 9.0% in Australian equities.
The Future Fund generated a 14.3% return in fiscal 2013-14, in creasing its value to $101.59 billion. “Globally, policy makers are seeking to balance the challenge of moving towards more normal policy settings while maintaining efforts to encourage economic growth,” Future Fund MD David Neal said. “This continues to present both risks and opportunities for investors.”……………………………………….Full Article: Source

SOFAZ earns huge profits from ACG, Shah Deniz fields

Posted on 14 October 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has made $107.254 billion of profit in a 13-year period from 2001 to October 1, 2014 by implementing the project of developing the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea. “The fund received $12.222 billion from January to October 1, 2014 within the framework of ACG project,” SOFAZ told Trend Agency on October 10.
The ACG block of fields has been active since 1997. Production first started at the Chirag part of the block. It was followed successfully by Azeri Project; Central Azeri in February 2005, West Azeri in December 2005, and East Azeri in October 2006………………………………………..Full Article: Source

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