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World’s Biggest Wealth Fund Among Reach Energy Investors

Posted on 24 July 2014 by VRS  |  Email |Print

Malaysia’s Reach Energy Bhd. has attracted investors including Norway’s $890 billion sovereign wealth fund in an initial public offering to fund its acquisitions of oil and gas fields. orges Bank Investment Management, the world’s largest sovereign wealth fund, is among cornerstone buyers in the 750 million-ringgit ($237 million) IPO of Reach Energy, Managing Director Shahul Hamid Mohd Ismail said in a July 21 interview.
State-run funds Koperasi Permodalan Felda Malaysia Bhd. and Lembaga Tabung Haji are also buying stakes in the so-called special-purpose acquisition company, Shahul said………………………………………..Full Article: Source

Optimising fortunes of Nigeria’s Sovereign Wealth Fund

Posted on 23 July 2014 by VRS  |  Email |Print

In many parts of the world, Sovereign Wealth Fund (SWF) has become an effective tool to transform the economic landscape and development aspirations of countries, especially those endowed with enormous oil wealth or other commodities. However, in their quest to attain Eldorado, some have succeeded, while a good number have burnt their fingers.
While some countries such as the Gulf States have employed the instrumentality of their sovereign wealth funds to develop their economies, Saudi Arabia and some others remain undeveloped poverty-stricken nations, in spite of their oil wealth. The rulers in these countries, instead of developing their economies prefer to bail out Western countries and buy U.S treasure bonds………………………………………..Full Article: Source

Government Fund With Majority Malaysia Airlines Stake Considers Taking It Private

Posted on 21 July 2014 by VRS  |  Email |Print

The government fund that owns a majority stake in Malaysia Airlines is increasingly leaning toward taking the company private, after the carrier lost a second plane in five months, according to people familiar with the matter.
Khazanah Nasional Bhd., Malaysia’s state investment fund and holder of a 69% stake in flag-carrier operator Malaysian Airline System Bhd., had already been considering a purchase of the rest of the company, along with other restructuring proposals, even before a full flight from Amsterdam to Kuala Lumpur crashed in Ukraine on Thursday………………………………………..Full Article: Source

Will 1MDB go bust without asset revaluations?

Posted on 18 July 2014 by VRS  |  Email |Print

The Finance Ministry must explain whether 1Malaysia Development Bhd (1MDB) may go bankrupt or even insolvent if they continue to rely on an Asset Revaluation Gain of RM2.7 billion to record a profit of RM778 million and ignores the rise in total debts to RM42.3 billion that nearly matches its total assets of RM44.7 billion.
When 1MDB finally submitted its much-delayed accounts for financial year 2013 ended March 31to the Companies Commission of Malaysia, after having changed auditors, 1MDB revealed once againthat it cannot make money without creatively manufacturing a paper profit from land revaluation………………………………………..Full Article: Source

Russian sovereign wealth fund launches Chinese webpages

Posted on 17 July 2014 by VRS  |  Email |Print

The Russian Direct Investment Fund, a sovereign wealth fund, launched a Chinese version of its “Invest in Russia” information portal Wednesday. The portal is tailored for Chinese users and contains specific data on Sino-Russian economic, trade and investment cooperation.
In a statement emailed to Xinhua, the fund said the portal provides statistical and analytical data from various industries and regions, as well as a database of potential development sites where production assets could be located. It also includes data on investment opportunities in different regions………………………………………..Full Article: Source

GIC said to have backed out of Tokyo property deal

Posted on 16 July 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC has backed out of buying a Tokyo property from Lone Star Funds due to a legal dispute over the property’s ownership, said people familiar with the transaction.
GIC earlier this year agreed to buy Meguro Gajoen, an office complex and a wedding hall, for about US$1.3 billion (S$1.61 billion). If finalised, it would be one of the largest property deals in Tokyo since the 2008 financial crisis. However, GIC is now cautious about completing the sale due to a lawsuit filed in April by the family of Meguro Gajoen’s founder, Mr Rikizo Hosokawa, said the sources………………………………………..Full Article: Source

Temasek Ramps Up New Investments

Posted on 09 July 2014 by VRS  |  Email |Print

Temasek Holdings Pte. Ltd. increased its investments in the year ended in March to the highest since the global financial crisis, even as weaker markets in Asia slowed the growth of its portfolio, which touched a record 223 billion Singapore dollars (US$179 billion).
Singapore’s state-investment company invested S$24 billion, up 20% from the preceding year, as it capitalized on opportunities from an uneven global economic recovery, according to its latest annual report released Tuesday…………………………………..Full Article: Source

Singapore’s Temasek takes it on the chin

Posted on 09 July 2014 by VRS  |  Email |Print

Despite last year’s global stock market rally, Temasek Holdings, Singapore’s sovereign wealth fund, generated a shareholder return of just 1.5 percent for the 12 months ended March 31, hurt by its focus on Singapore and China.
“It’s nothing to do the dance of joy over, but it’s still squeezing a positive TSR (total shareholder return)” despite “paper losses” on its equity holdings,” said Song Seng Wun, head of research at CIMB. “On the plus side, hopefully, is that the new net investment will help future earnings,” he said, but added he expects it will take a while for the China rebalancing story to play out…………………………………..Full Article: Source

Temasek Holdings optimistic on China prospects

Posted on 09 July 2014 by VRS  |  Email |Print

Temasek Holdings is optimistic about China’s prospects, and said it will continue to invest in Chinese banks. Speaking at a briefing on its performance for the 12 months ended March 2014, the Singapore investment firm said Chinese banks are a good proxy for the long term growth of the world’s second largest economy.
As for concerns on shadow banking in China, Temasek said it is closely monitoring this, and that the Chinese government has put in place measures to address the issue. Wu Yibing, head (China) of Temasek Holdings, said: “Overall we see they have plenty of policy headroom and also plenty of political will to address these questions…………………………………..Full Article: Source

Temasek remains keen on Chinese lenders

Posted on 09 July 2014 by VRS  |  Email |Print

Singapore’s sovereign investor Temasek Holdings Pte Ltd said yesterday it intends to keep investing in Chinese banks even as it reported a slowdown in its portfolio growth due to a drop in the value of some of its bank holdings.
Temasek, headed by Ho Ching, the wife of Prime Minister Lee Hsien Loong, owns a six per cent stake in China Construction Bank and a two per cent stake in Industrial and Commercial Bank of China. It also has holdings in other banks, including a stake of just under 18 per cent in British bank Standard Chartered…………………………………..Full Article: Source

Leakages, political bickering threaten Nigeria SWF goals

Posted on 09 July 2014 by VRS  |  Email |Print

The goals of Nigeria’s Sovereign Wealth Fund (SWF), which include providing a countercyclical rainy day fund, as well as savings for future generations is being threatened by political bickering and oil revenue leakages.
While the SWF announced last month that it made capital gains of N1.2 billion ($7.75 million) in the first quarter (Q1) of 2014 representing 0.5 percent return on total capital of $1.55 billion, the need to grow the fund through regular monthly transfers by the Government has failed to materialise…………………………………..Full Article: Source

Malaysia Airlines to be privatised and restructured

Posted on 04 July 2014 by VRS  |  Email |Print

Sovereign wealth fund, Khazanah Nasional is planning a “major restructuring of the loss-making airline,” Malaysia Airlines (MAS) Reuters has reported. The carrier has been severely affected by the ongoing turbulence surrounding the disappearance of Flight MH370.
MAS has experienced a steep drop in passenger traffic since the aircraft was reported missing, a deciding factor in it announcing record losses for 2014 to date. MAS’ financial troubles predate Flight MH370, having posted losses for the last three years in an increasingly crowded market. Its market share has been increasingly narrowed by rivals such as AirAsia and Lion Air on short-haul routes, and the big three Gulf carriers on medium and long-haul flights………………………………………..Full Article: Source

Khazanah may take Malaysia Airlines private

Posted on 03 July 2014 by VRS  |  Email |Print

Malaysian state investor Khazanah Nasional plans to take Malaysia Airlines private as the first step in a major restructuring of the loss-making carrier following the disappearance of Flight MH370, said two people with knowledge of the matter.
A delisting would pave the way for Khazanah to revive the ailing carrier, possibly by selling its profitable engineering, airport services or budget airline units, trimming its payroll and installing a new management team………………………………………..Full Article: Source

Russian state fund attracts western investors for Moscow Exchange deal

Posted on 03 July 2014 by VRS  |  Email |Print

Several investors, including those from Europe and the US, have partnered with a Russian state-owned fund to invest in the Moscow stock exchange, despite rising tensions with the west over Russia’s annexation of the Ukrainian region of Crimea earlier this year.
The Russian Direct Investment Fund, a $10 billion vehicle set up in 2011 to help attract foreign investment into the country, said on Wednesday that it has teamed up with a consortium of unnamed institutional investors from the UK, Germany, US, China, Singapore, United Arab Emirates and Qatar to buy part of the Moscow Exchange being sold by the Central Bank of Russia………………………………………..Full Article: Source

Norway’s Frontier Gamble Will Bolster Market, HSBC Says

Posted on 26 June 2014 by VRS  |  Email |Print

Norway’s decision to have its $890 billion sovereign wealth fund boost investments in frontier markets will probably attract more institutional investors to the asset class, according to HSBC Holdings Plc.
The sovereign wealth fund, which is the world’s largest, said in a strategy report yesterday that it will target more frontier markets and include additional currencies to generate higher returns. MSCI Inc.’s gauge of stocks in the smaller developing nations has gained 16 percent this year, more than triple the 4.5 percent return on its emerging markets Index………………………………………..Full Article: Source

Norway Sovereign Wealth Fund Unveils “New Strategy” - Buy 5% Of Every European Stock

Posted on 26 June 2014 by VRS  |  Email |Print

Having learned last week that the world’s central banks are their sovereign wealth proxies have secretly pumped over $29 trillion into markets in the last few years, it is not entirely surprising to hear from one of the largest - Norway $888 billion oil fund - that it is buying stocks with bond hands and feet.
As The Financial Times reports, Yngve Slyngstad, chief executive of Norway’s sovereign wealth fund, is hiring aggressively to manage its real estate portfolio and while the oil fund already owns 2.5% of every listed European company on average, it plans to go above 5%. Phew, bagholder found………………………………………….Full Article: Source

Russia: Minister Proposes Splurging Welfare Fund on Infrastructure Projects

Posted on 26 June 2014 by VRS  |  Email |Print

Russia should take all of the money from a fund earmarked to cover future pension deficits and invest it in profitable infrastructure projects to generate good returns, Economic Development Minister Alexei Ulyukayev told the Vedomosti business daily in an interview published Wednesday. The government earlier this month raised the cap on spending from the National Welfare Fund, which collects revenue from oil and gas sales, the country’s biggest exports.
It now allows 60 percent of the fund to be spent on domestic infrastructure projects, up from an earlier 40 percent. The fund, designated to cover the future pension deficit of the country’s rapidly aging population, was $87 billion at the beginning of the month………………………………………..Full Article: Source

Bullish sovereign funds will look to emerging markets, says survey

Posted on 26 June 2014 by VRS  |  Email |Print

Middle East sovereign wealth funds will remain focused on emerging markets as they seek long term growth from India, Africa and Latin America, a new study has found. Alternative investments, including property and private equity will also figure largely, according to the Invesco Global Sovereign Asset Management Study from the US-based investment management company.
About 54 per cent of Middle East sovereign investors, which includes sovereign wealth funds (SWFs), state pension funds, central banks and government ministries, will increase their funding levels this year, driven by strong country surpluses and government support………………………………………..Full Article: Source

How Alberta turned its Heritage Fund into a cash machine for big-spending politicians

Posted on 26 June 2014 by VRS  |  Email |Print

Alberta’s Heritage Savings Trust Fund stands as an excellent example of how governments waste opportunity, fritter away money and undermine the long-term interests of taxpayers, even as they claim to be working in the public interest.
On Tuesday the Fund revealed it earned $2.1 billion last year, a record 16% return on investment, and now has $17.5 billion in the kitty. This was treated as a triumph by provincial leaders………………………………………..Full Article: Source

Why a £520bn oil fund could give your portfolio an extra kick

Posted on 25 June 2014 by VRS  |  Email |Print

Which country has the largest sovereign wealth fund? The UK? Germany? Guess again… with just a population of four million people, it’s Norway. Norges Bank Investment Management has benefited from the country’s vast oil wealth, tripling its assets under management (AUM) since the financial crisis to $888bn.
To ensure that it can cope with the surge of inflows, it has announced that it will expand its mandate to invest more actively in both bonds and equities over the next years, which some experts believe could provide a boost for two markets in particular. Managers of the fund will widen its mandate to include frontier markets for the first time and will more than double the number of large companies it has more than 5 per cent in – from 45 to 100……………………………………….Full Article: Source

What Sovereign Wealth Funds Think Now

Posted on 24 June 2014 by VRS  |  Email |Print

Sovereign wealth funds–charged with preserving the accumulated fortunes of their home nations–are well known for their opaque, tightly-guarded investment decisions. Shining a light behind their closed doors isn’t easy. But U.K. asset manager Invesco has attempted to provide a glimpse at what these behemoth funds are thinking, and has compiled a second-annual survey of 52 sovereign investors.
The thick report is full of intriguing statistics, but perhaps the biggest reason to pay attention is the simplest: the investors interviewed control, and deploy, enormous amounts of money. The group surveyed manages a mind-boggling $5.7 trillion of assets, an amount on par with the collective economic output of Germany and the U.K. combined………………………………………..Full Article: Source

Private markets, public investors: The march of the sovereigns

Posted on 18 June 2014 by VRS  |  Email |Print

Sovereign wealth funds, typically set up by oil-exporting nations, have been around for decades, in the case of Kuwait since 1953. But their influence has increased in recent years, as China has adopted a similar strategy for investing some of its vast foreign-exchange reserves while existing funds have been fuelled by gains from high oil prices.
However, a new survey of assets held by public investors shows that such wealth funds are still outpunched by more traditional players. Central banks are the biggest holders of assets, followed by public pension funds, with sovereign wealth funds coming third………………………………………..Full Article: Source

Debate continues over PNG’s Sovereign Wealth Fund

Posted on 17 June 2014 by VRS  |  Email |Print

Debate over PNG’s Sovereign Wealth Fund continues even though the first shipment of liquefied natural gas has been delivered to Japan. The purpose of the Fund is to control the spending of the considerable revenue generated by the PNG LNG project.
Disputes over the best fomat for the Fund and procedural mistakes when passing the establishing legislation in 2011 are the reasons the Fund has not been set up………………………………………..Full Article: Source

Qatar SWF Drops Flashy Deals as Foreign Policy Shifts, Report Says

Posted on 17 June 2014 by VRS  |  Email |Print

The Qatar Investment Authority, Qatar’s main sovereign wealth fund, appears to be shunning the flashy deal-making of its past in favor of a more conservative approach, in line with a shift in the country’s foreign policy away from high-visibility regional diplomacy, according to a recent report by GeoEconomica, a Geneva-based political risk advisory firm.
Estimated to have about $175 billion under management, the QIA has long been one of the Middle East’s biggest and most aggressive investment pools………………………………………..Full Article: Source

NSIA Joins Int’l Sovereign Wealth Funds Forum

Posted on 16 June 2014 by VRS  |  Email |Print

The Nigeria Sovereign Investment Authority (NSIA) has been admitted into the International Forum of Sovereign Wealth Funds - IFSWF. A statement on Thursday, said the NSIA was admitted by the IFSWF at its board meeting of May 28, 2014, “based on your proven willingness to endorse, on a voluntary basis, the Santiago Principles.”
The IFSWF, a voluntary group of Sovereign Wealth Funds (SWFs), was established by the International Working Group of Sovereign Wealth Funds in April 2009, to among others promote “understanding of the Santiago Principles - a set of 24 guidelines for the operation of SWFs.”……………………………………….Full Article: Source

SWFs rushing to invest in India

Posted on 13 June 2014 by VRS  |  Email |Print

Several sovereign wealth funds (SWF) and overseas pension funds are rushing to invest in India, driven by hopes of economic recovery under a new stable government. At least three sovereign funds from West Asia have invested over $5 billion in the past eight months and one global pension fund has committed to invest $450 million.
Two other funds are scouting for investments in India’s real estate and infrastructure developers. “Risk of returns are out of the way and these funds can invest capital for longer tenure,” said the head of a realty fund, which has received investments from two SWFs in West Asia. Private equity (PE) experts say a trend is visible of both SWF and pension funds investing heavily in the past six months………………………………………..Full Article: Source

SWFs: A race worth joining to unlock Africa’s hidden potential?

Posted on 12 June 2014 by VRS  |  Email |Print

Africa has experienced a rise in the establishment of sovereign wealth funds (SWFs) over the past decade. The Sovereign Wealth Fund Institute, a United States (US)-based research organisation, defines the term sovereign wealth fund as “a state-owned investment fund or entity” often set up from balance of payments surpluses, official foreign currency operations, privatisation proceeds, government transfer payments, fiscal surpluses and receipts from resource exports.
SWFs can be based on either commodities or non-commodities. Commodities-based SWFs are established from revenue derived from commodity exports, which are owned or taxed by the government. Non-commodities based SWFs are established from revenue raised through, for example, the transfer of assets from official foreign reserves………………………………………..Full Article: Source

Wealth funds move steadily into Indian equities since Dec-end

Posted on 11 June 2014 by VRS  |  Email |Print

Pension funds and sovereign wealth funds’ holdings of Indian equity have increased by Rs 23,758 crore since the beginning of the calendar year, in anticipation of improving economic fundamentals and a stable government at the Centre. The total assets with these two segments rose from Rs 2.18 lakh crore in December 2013 to Rs 2.42 lakh crore in the latest available data from the stock market regulator.
Both sovereign wealth funds and pension funds are seen to be relatively stable long-term investors. An increased proportion of such funds are perceived to bring greater stability to markets because they do not generally move in and out for short-term gain………………………………………..Full Article: Source

More Direct Sovereign Wealth Money Pouring Into BRIC Countries

Posted on 06 June 2014 by VRS  |  Email |Print

Sovereign wealth funds are plowing more money into (Brazil, Russia, India and China) BRIC nations, despite economic and political headwinds in emerging markets. Proprietary data from the Sovereign Wealth Fund Institute shows that more direct sovereign fund investment for 2014 is funneling into BRIC countries compared to similar quarters in 2013.
According to the Sovereign Wealth Fund Transaction Database, for the first two quarters of 2013, about US$ 4.37 billion of direct sovereign wealth fund investment was allocated toward BRIC countries. For the first two quarters of 2014, BRIC countries received about US$ 4.62 billion. Furthermore, second quarter figures for 2014 are not fully counted for in the database. The 5.7% increase in BRIC direct sovereign wealth fund investment from those similar quarters indicates that sovereign funds remain tepidly optimistic in these dynamic growth markets……………………………………….Full Article: Source

Surging debt at Malaysia’s shadowy fund emerges as new sovereign risk

Posted on 02 June 2014 by VRS  |  Email |Print

Lurking beneath Malaysia’s solid investment-grade sovereign rating is a risk posed by a $14 billion investment fund that is not even generating enough cash from operations to cover interest costs.
Regarded as a cross between a sovereign wealth fund and a private investment vehicle, with Prime Minister Najib Razak chairing its advisory board, 1Malaysia Development Berhad (1MDB) is struggling under the burden of $11 billion in borrowed money…………………………………..Full Article: Source

Is there an SWF in your future?

Posted on 02 June 2014 by VRS  |  Email |Print

When Visa was on the runway for its IPO in early 2008, the bankers running the deal suggested meeting with sovereign wealth funds (SWFs) in the Middle East where they detected substantial interest. But they advised the global credit card giant to follow a two-step process ‘to bridge any cultural divides,’ recalls Jack Carsky, senior vice president of global IR at the credit payments company.
‘We made the effort to go out on two separate occasions’ to make initial introductions before the funds would get serious about investing, he recounts. The meetings ‘looked like the UN’, with the lead analyst ‘a kid who grew up in Iowa’ joined by colleagues from China and India. ‘The common factor was they were all fantastic analysts.’ The extra effort paid off when SWFs ‘became a cornerstone’ in the IPO, Carsky states…………………………………..Full Article: Source

RDIF Makes Strides with International Institutional Investors

Posted on 29 May 2014 by VRS  |  Email |Print

The second to last week of May was momentous for countries in Eastern Europe and Central Asia. The St. Petersburg International Economic Forum was hosted on May 22-24 in Russia. During the conference, the Russian Direct Investment Fund (RDIF) highlighted some significant recent deals and joint ventures. In a continuous strategy to expand foreign investment from non-Western nations, Russia has courted East Asian and Gulf countries.
Through money moves and conference speeches, Russia is making a case for institutional investors not to ignore one of the top eight largest economies in the world. For example, the Qatar Investment Authority (QIA) is going to invest US$ 2 billion in Russia through joint investments with the RDIF……………………………………….Full Article: Source

China sovereign wealth funds provide safe route to investment success

Posted on 26 May 2014 by VRS  |  Email |Print

Sometimes, investing in the mainland is a bit like stumbling into the Twilight Zone - especially if you are thinking about being a strategic investor in a major initial public offering. The idea of taking a strategic stake appeals because you get access to business sectors that a foreign firm might find hard to enter, given the notorious barriers in many mainland markets.
But then you have to understand that even domestically, the playing field is far from level. The plum, fat deals go to the state-owned enterprises. Private companies and foreign business get the scraps that are left………………………………………..Full Article: Source

China’s Sovereign Wealth Fund Welcomes ECB Stimulus

Posted on 26 May 2014 by VRS  |  Email |Print

China’s colossal sovereign wealth fund will contemplate further investment in European assets if the European Central Bank (ECB) rolls out further stimulus measures, the head of the fund has said.
Chairman Ding Xuedong, who runs the $575bn (£341bn, €422bn) China Investment Corporation (CIC), believes monetary easing in the eurozone will spell “good news.” Xuedong told CNBC that any forthcoming stimulus measures by the ECB will be justified………………………………………..Full Article: Source

Norway Loses Reputation as Stable Investment as Firms Recoil

Posted on 22 May 2014 by VRS  |  Email |Print

Norway is facing lawsuits from investors in the nation’s gas pipelines, including Allianz AG (AGFHREI) and Abu Dhabi’s sovereign wealth fund. They are seeking to reverse a 2013 decision by the government to cut the tariffs they can charge to transport fuel by as much as 90 percent.
The reductions were proposed less that 1 1/2 years after Norway ended its support for the then AAA and now junk-rated lender Eksportfinans ASA, roiling bond markets as far away as Japan…………………………………….Full Article: Source

Singapore’s GIC: in Buffett’s image

Posted on 21 May 2014 by VRS  |  Email |Print

We’ve all heard of the Sage of Omaha. Enter the Sage of Singapore? GIC, the Singaporean sovereign wealth fund fancies its chances. Like Warren Buffett, the fund, which is keen to boost its investment in Mexico, has a strategy of patience and long-term investment.
Here is Anthony Lim, its Americas president: We would like to build up a cachet, for people to see us as an institutional version of Warren Buffett. Gulp. Just Google “invest like Warren Buffett” and you’ll get more than a million matches, some even telling you why you will never succeed. GIC is under no illusions…………………………………Full Article: Source

China rides to Russia’s rescue with investment plan

Posted on 16 May 2014 by VRS  |  Email |Print

Russia’s sovereign wealth fund is set to announce a series of new deals with China next week, reflecting the increased importance that Chinese investment will hold in the Russian economy as Western capital flees the country.
Russian Direct Investment Fund will announce the four investments including one each in infrastructure, real estate and minerals at the St Petersburg International Economic Forum. The investments will be made through the Russia-China Investment Fund, a vehicle set up with the China Investment Corporation in 2012. The fund was set up with $1bn commitments apiece from the Chinese and Russian sovereign funds, and it is understood that to date, roughly 10% of that capital has been deployed, through a $200m investment in Russia Forest Products, a forestry company in Siberia. It has the potential to reach $4bn………………………………………..Full Article: Source

Will China Save Russia With Investment?

Posted on 16 May 2014 by VRS  |  Email |Print

Four deals will be in Russia infrastructure, real estate and minerals, and will be made through a vehicle called the Russia-China Investment Fund. This fund, seeded with $1 billion apiece from the RDIF and China’s sovereign wealth fund, the China Investment Corporation and with the hope of further expansion to $4 billion of assets, actually dates back to 2012, and these deals have clearly been a long time coming together (only one previous deal has been done from this venture, a $200 million investment in Russia Forest Products, a forestry company in Siberia).
But the timing, from Russia’s point of view, could not be better: an illustration that capital will still come to Russia no matter how much it has riled the west………………………………………..Full Article: Source

Libya’s sovereign wealth fund to invest in bourse, set up budget reserve fund

Posted on 15 May 2014 by VRS  |  Email |Print

The Libyan Investment Authority (LIA), the oil producer’s sovereign wealth fund, plans to invest billions of dollars in the local stock market to help fund badly needed infrastructure projects, its new head said in a interview.
Chairman Abdulmagid Breish also said the LIA, which owns assets worth $66 billion, plans a special fund to cover future budget deficits - a timely idea as protests at oil facilities undermine public finances………………………………………..Full Article: Source

GIC’s exit from GPT a positive for trusts

Posted on 14 May 2014 by VRS  |  Email |Print

Singapore fund GIC’s exit from the majority of its holding in GPT is increasingly being seen as a positive for the stock and the rest of the property trust market. GIC on Monday night sold down just under 8 per cent of GPT’s shares, valued at more than $500m, in a block trade that was managed by UBS.
GPT’s shares dipped 8c yesterday to close at $3.84 — a movement that reflected GIC selling its stake at a discounted $3.815. The sale sparked speculation GIC had been unhappy with the strategic direction of GPT, which was fiercely rejected by the company on Monday night………………………………………..Full Article: Source

Will Hollywood’s Boycott of Brunei-Owned Hotels Have an Impact?

Posted on 14 May 2014 by VRS  |  Email |Print

Beverly Hills is a long way from the Sultanate of Brunei, but their connection is in the news this month thanks to a Beverly Hills Hotel boycott by Richard Branson and Virgin Atlantic, DreamWorks Animation CEO Jeffrey Katzenberg, and other celebrities and travel groups.
The hotel is part of the London-based Dorchester Collection of luxe properties, and Dorchester is owned by Brunei Investment Agency, a state-run sovereign wealth fund. As Brunei implements violent new anti-gay and anti-adultery laws at home that call for stonings and floggings, protests are growing abroad. The BIA holds assets of about $40 billion, according to the Sovereign Wealth Fund Institute, a global research and consulting group……………………………………….Full Article: Source

SWFs have progressed on the road from Santiago but governance is still an issue

Posted on 08 May 2014 by VRS  |  Email |Print

When, in 2008, sovereign wealth funds met in Santiago de Chile, theycame together to adopt the Santiago Principles, covering issues of importance for SWFs including the setting of clear objectives, better coordination with macroeconomic policies, good corporate governance and transparent investment and risk management frameworks.
The name was given not just because the principles were finally agreed in Santiago de Chile, or because of the commitment to transparency and accountability of all SWF activities in the country. The name is also appropriate in that it recalls the pilgrims’ path to Santiago. It seemed that SWFs had taken that path before the global crisis of 2008-09………………………………………..Full Article: Source

City Urges Brunei Investment Agency to Divest of All Properties in Beverly Hills

Posted on 08 May 2014 by VRS  |  Email |Print

City Council members vote to condemn the Government of Brunei and other governments that engage in similar policies and requests that they divest themselves of all properties in Beverly Hills, including the Beverly Hills Hotel, despite pleas from dozens of hotel employees.
The Beverly Hills City Council proposed resolution to condemn the Sultan of Brunei for enacting legislation to allow stoning as a punishment for homosexuality and adultery, has drawn international media attention to the City Council meeting. The Brunei Investment Agency owns the Dorchester Collection………………………………………..Full Article: Source

Norwegian oil fund suffers losses on emerging market equities

Posted on 02 May 2014 by VRS  |  Email |Print

Norway’s Government Pension Fund Global has incurred losses from its Chinese and Japanese equity holdings, contributing to its stock returns trailing bonds and real estate over the first three months of the year.
The NOK5.1trn (€617bn) fund’s Chinese equity investments, which returned -6.1%, accounted for more than a quarter of the listed emerging market portfolio at the end of March, and significantly underperformed its average EM equity holdings, with the portfolio returning -0.5% overall………………………………………..Full Article: Source

Ukraine situation has altered Russia investment risks -Norway wealth fund head

Posted on 28 April 2014 by VRS  |  Email |Print

The situation in Ukraine has altered the risks affecting the Norwegian sovereign wealth fund’s investments in Russia, the head of the fund - the world’s largest of its kind - said on Friday.
The fund is one of the world’s biggest investors with holdings of $860 billion in some 8,000 companies across 82 countries. “We see that there is a different risk profile,” Yngve Slyngstad told reporters after speaking at a parliamentary hearing. “We have significant investments in Russia.”……………………………………….Full Article: Source

HKMA remains vigilant in ‘unstable’ environment

Posted on 17 April 2014 by VRS  |  Email |Print

Hong Kong and emerging markets will likely face continued capital outflows given tapering by the US Federal Reserve and the gradual normalisation of interest rates from a very low level, the top official of the Hong Kong Monetary Authority said.
“In the face of the expected unstable financial and investment environment in 2014, the HKMA will continue to closely monitor market developments to help safeguard monetary stability, and require banks to step up the management of interest rate, liquidity and credit risks,” HKMA chief executive Norman Chan tak-lam wrote in the annual report……………………………………….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

Zimbabwe: A sovereign wealth fund is critical to development

Posted on 16 April 2014 by VRS  |  Email |Print

In the Zimbabwe we want, a Sovereign Wealth Fund must be managed as the country’s endowment to future generations. It is not a fund to be plundered by government and used to meet current needs, but a savings account that must accumulate over time and be used to meet future developmental needs.
The Sovereign Wealth Fund can only be viable where there is disciplined fiscal management and there is no temptation to use that money for recurrent expenditure. In a country such as Zimbabwe there exists a huge probability of abuse of a Sovereign Wealth Fund to meet current revenue gaps………………………………………..Full Article: Source

Dubai would “do the same again” – CEO of sovereign wealth fund

Posted on 09 April 2014 by VRS  |  Email |Print

Dubai told international bankers on Monday that it was gearing up for another boom and did not regret the pro-growth policies which brought it to the brink of default five years ago. It appeared to win the endorsement of many of the bankers.
Over a dozen top Dubai officials and executives met about 100 representatives of financial powerhouses including Deutsche Bank, Nomura Holdings and Fidelity Investments for the emirate’s first big investor roadshow since the crisis………………………………………..Full Article: Source

Norway’s oil fund could dump shares in oil, coal

Posted on 07 April 2014 by VRS  |  Email |Print

Norway is considering excluding foreign oil and coal companies from its $860 billion sovereign wealth fund, which manages profits from Norway’s own fossil fuel industry.
In a shake-up of the fund that sharpens its environmental focus, Finance Minister Siv Jensen said Friday she had appointed a panel to assess the question on the grounds of possible damage to the climate. It will report back to the government in November………………………………………..Full Article: Source

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