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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

Sovereign funds wary of hidden emerging market exposure: Templeton

Posted on 03 April 2014 by VRS  |  Email |Print

Sovereign wealth funds see emerging market turbulence as a long term buying opportunity, but are wary of excessive exposure via some of their Western holdings such as luxury goods makers, a top investment official at Franklin Templeton said.
David Smart, who heads a team managing assets for sovereign funds and supranational clients at Franklin Templeton, said the $5 trillion sector can afford to ride out volatile swings thanks to its long-term horizons…………………………….Full Article: Source

Planned sovereign wealth fund may well be only Zim entity able to pay for stakes in mines

Posted on 28 March 2014 by VRS  |  Email |Print

The introduction of the Sovereign Wealth Fund (SWF) by the Zimbabwe government could not have been more timeous, according to experts, as it will be used for much-needed infrastructure development. This also comes amid investor dissatisfaction in the Zimbabwean mining industry, owing to the country’s Indigenisation and Economic Empowerment Act and mining royalties policies.
In his speech at the Zimbabwe Chamber of Mines’ (CoM’s) seventy-fourth annual general meeting in May last year, CoM president John Chikombero said the operating environment for the mining industry in 2012 was, to a large extent, similar to that of 2011: the country’s mining industry remains a primary contributor to Zimbabwe’s gross domestic product and was expected to provide impetus for economic growth……………………………………Full Article: Source

Sovereign funds wary of emerging market volatility

Posted on 27 March 2014 by VRS  |  Email |Print

Sovereign wealth funds see emerging market turbulence as a long-term buying opportunity, but are wary of excessive exposure via some of their Western holdings such as luxury goods makers, a top investment official at Franklin Templeton said.
David Smart, who heads a team managing sovereign funds and supranational clients at Templeton, said the US$5 trillion sector could afford to ride out volatile swings thanks to its long-term horizons. “In terms of our client base, we haven’t seen any evidence of de-risking,” he said. “If anything we’ve seen willingness to take advantage of opportunities. They have the ability to withstand volatility. They see it as a long-term acquisition opportunity.”………………………………..Full Article: Source

China growth unsatisfactory, but it’s early: CIC

Posted on 27 March 2014 by VRS  |  Email |Print

A senior official in China’s sovereign-wealth fund said the country’s economic growth so far this year has been disappointing but it is too early to draw alarm. China’s “first-quarter growth is not satisfactory but it is like a trial run–it does not represent the entire year,” said Li Xiaopeng, head of China Investment Corp.’s supervisory board, at a Credit Suisse investment conference in Hong Kong.
CIC’s supervisory board is responsible for monitoring the behavior of the sovereign-wealth fund’s directors and executives. “The very real growth takes place in [the second quarter], so don’t worry,” he said, noting the Lunar New Year holiday that traditionally skews China data in the first quarter…………………………………Full Article: Source

CIC eyes agriculture, tips H2 China growth

Posted on 27 March 2014 by VRS  |  Email |Print

China’s sovereign wealth fund has singled out global agricultural investments as a particular area of interest, with other favoured sectors including information technology, real estate and infrastructure.
We are interested in agricultural industry-not only in emerging markets but also in other markets,” said Li Xiaopeng, chairman of the board of supervisors at China Investment Corporation. “We hope agricultural investment can provide CIC with stable returns over the long term.”………………………………..Full Article: Source

There’s a price to pay for our indebtedness to PNG

Posted on 21 March 2014 by VRS  |  Email |Print

The first is that PNG has effectively given up on its sovereign wealth fund. Millions of Australian dollars have been spent on advising the PNG government on setting up a SWF. It was once seen as so important that it was the subject of a separate agreement between the two countries.
A SWF was legislated back in 2012, but proper procedures were not followed so it is not binding. The entire point of the SWF was to receive and manage the proceeds from the massive liquefied natural gas project that will come on line this year………………………………………..Full Article: Source

GIC outlines investment principles

Posted on 17 March 2014 by VRS  |  Email |Print

GIC has offered insights into the five guiding principles it uses to ensure its investments achieve the best long-term returns for Singapore. The sovereign wealth fund also said it uses a “heat map” of the globe monitoring the way various markets are performing by using different colours on the map.
The insights were offered by GIC’s chief investment officer, Mr Lim Chow Kiat, when he spoke on Thursday at the Investment Management Association of Singapore annual conference at Raffles City Convention Centre. Even though there may be “short-term temptations”, GIC’s mission to safeguard and enhance the nation’s reserves for the long haul is never forgotten, he noted……………………………………….Full Article: Source

Move by Norway sovereign wealth fund to invest in renewables could have ‘global impact’

Posted on 14 March 2014 by VRS  |  Email |Print

The government of Norway will mandate the country’s sovereign wealth fund, the largest in the world, to invest in renewable energy, Prime Minister Erna Solberg announced in Oslo “We are thrilled that Norway is stepping forward to lead on renewable energy,” says Nina Jensen, CEO of WWF-Norway. “If done at scale, this will have global impact and redefine how we use money consistent with commitments to limit climate change.
“We have long advocated that the fund invest up to 5% in infrastructure for renewable energy. This will require a change in the guidelines for the fund, similar to the mandate to investing in property that was granted in 2010………………………………………..Full Article: Source

Australia funds eye liquid investments

Posted on 13 March 2014 by VRS  |  Email |Print

Australian fund managers are eying an increasingly liquid market: water. A state-run system giving farmers fixed allocations for river water flowing into the country’s agricultural heartland is tempting speculators to buy up those rights in anticipation of higher prices.
A specialist fund manager, Blue Sky Alternative Investments Ltd., recently raised 20 million Australian dollars (US$18 million) to pour into the fledgling market, following earlier moves by San Diego, Calif.-based Summit Global and VicSuper, one of Australia’s biggest pension funds………………………………………..Full Article: Source

Norway may divest from fossil fuels – is it hypocrisy or pragmatism?

Posted on 11 March 2014 by VRS  |  Email |Print

Norway’s $840 billion sovereign wealth fund is the biggest investment fund in the world. On average, it owns 1.3 per cent of every publicly listed company. Investors around the world watch its decisions. So when the Norwegian parliament voted late last month to look into selling off its holdings of fossil fuel companies, it was a big deal for both the financial and environmental community.
It’s estimated fossil fuel shares make up about 8.4 per cent of the fund’s portfolio – about $44 billion. Divestment would be a huge victory for the climate movement, which has encouraged institutional investors to get out of carbon-intensive companies on both moral and financial grounds………………………………………..Full Article: Source

Sovereign wealth fund demand for U.S. properties picks up

Posted on 11 March 2014 by VRS  |  Email |Print

Commercial real estate investment sales topped $355 billion last year, a 19 percent hike over 2012 and the highest dollar volume since the financial crash in 2008, according to New York-based research firm Real Capital Analytics.
The firm expects 2014 volume to approach $400 billion, rivaling the dollar volume levels in 2004 and 2005. And within that, endowment funds and, in particular, sovereign wealth funds, keep ratcheting up their appetites for U.S. assets in a search for yield……………………………………….Full Article: Source

Sovereign-wealth funds must move out of shadows

Posted on 11 March 2014 by VRS  |  Email |Print

The need for greater transparency among emerging-market economies owning an increasing share of cross-border investments is moving slowly up the global economic agenda. Last week’s announcement by the International Forum of Sovereign Wealth Funds (IFSWF) that it’s moving its secretariat from Washington to London is, by itself, only a small step. Yet it heightens pressure for large-scale public investors deploying funds internationally to open up on their operations.
Counting all the investments of central banks, official investment agencies, sovereign funds and public pension funds, global public investors now own about $30 trillion of assets worldwide — a growing force on the world investment scene………………………………………..Full Article: Source

Singapore’s SWFs won’t opt for riskier bets

Posted on 10 March 2014 by VRS  |  Email |Print

A government official has said that the government of Singapore will not ask tis investment arm to take on riskier bets for higher returns. The official said that Singapore sovereign-wealth fund GIC Pte. Ltd., and the state investment company Temasek Holdings Pte. Ltd will not be asked to buy riskier investments to increase revenues even as government expects spending increases to be higher than revenue growth in the coming decade.
Josephine Teo, senior minister of state for finance said, “Our government spending needs will increase over time, but that should not drive the investment strategies of GIC and Temasek. If the government is in need of more revenues besides that obtainable the solution is not for our investment entities to take more risk in the hope of higher returns.”……………………………………….Full Article: Source

Norwegian wealth fund may ditch Australian resource firms

Posted on 04 March 2014 by VRS  |  Email |Print

Some of Australia’s biggest resource companies could lose a major investor if Norway goes through with a plan to ban its famous sovereign wealth fund from investing in coal, oil and gas. Norway’s sovereign wealth fund is the world’s biggest at $840 billion and is a major shareholder in companies such as BHP Billiton, Woodside Petroleum and Whitehaven Coal.
A non-government majority in the Norwegian parliament had been edging towards a vote on banning the fund from investing in coal, and the pressure has forced the government to launch a year-long expert review into whether the fund should cease investing in all forms of fossil fuel………………………………………..Full Article: Source

Norway to study pulling wealth fund investment from oil, gas, coal

Posted on 04 March 2014 by VRS  |  Email |Print

Norway’s ruling parties have agreed to study whether its US$840-billion wealth fund, itself built on oil revenues, should pull out of investing in oil, gas and coal for environmental reasons, the Progress Party said on Friday.
The minority government and two small opposition parties agreed to set up an independent panel to study the issue and present its findings next year, potentially heralding one of the biggest changes for the fund since it was set up in 1990………………………………………..Full Article: Source

Norway’s $840 bln oil fund to review mining investments

Posted on 03 March 2014 by VRS  |  Email |Print

Norway’s $840 billion sovereign fund, the world’s biggest equity investor, has cut its investments in gold and coal miners due to environmental concerns and will review the entire mining sector this year, it said on Friday.
The fund, which grew by $200 billion in 2013 alone and owns about 1 percent of all global stocks, exited its investments in 27 gold and coal miners in 2013 and cut its stakes in others. The wider sector review potentially heralds one of the biggest changes since it was set up as a sovereign wealth fund in 1998………………………………………..Full Article: Source

Norway plans to pull oil fund out of fossil fuels

Posted on 03 March 2014 by VRS  |  Email |Print

Norway said Friday that it would consider pulling its enormous state oil fund out of overseas investments in fossil fuels. Norway has the world’s largest sovereign wealth fund, which has invested the nation’s oil wealth in a range of stocks, bonds and other vehicles — including major oil and gas companies.
An independent panel of experts will report back to parliament in 2015 on the likely consequences of the fund — which is worth almost $840 billion (610 billion euros) — divesting from coal, oil and gas businesses, the rightwing ruling coalition said Friday. It was not clear whether any pull-out would affect all fossil fuel extraction companies, or whether it would also include power companies………………………………………..Full Article: Source

Khazanah joins sovereign funds’ expansion spree

Posted on 28 February 2014 by VRS  |  Email |Print

When Khazanah Nasional Bhd. announced 2013 returns last month, the Malaysian sovereign wealth fund highlighted its international presence for the first time and plans to continue expanding abroad.
Khazanah, which has locations in Beijing and Mumbai, said in the annual report it opened offices in San Francisco and Istanbul, and included a map of the various countries where its companies have operations………………………………………..Full Article: Source

80 Samruk-Kazyna companies may be privatized in 2014

Posted on 28 February 2014 by VRS  |  Email |Print

Around 80 companies that are part of Kazakhstan’s Samruk-Kazyna Sovereign Wealth Fund might be privatized in 2014, Tengrinews reports citing the Fund’s Chairman Umirzak Shukeyev.
“We have chosen around 80 companies that meet the criteria. The list includes 27 companies of KazMunaiGas (national oil and gas company), 34 companies of Kazakh Temir Zholy (national railway company), 11 companies of KazAtomProm (national nuclear company), 2 companies of Kazakhstelekom (national Internet and TV provider), 8 companies of Samruk-Energo (national manager of power assets) and 1 company of KEGOC (Kazakhstan Electricity Grid Operating Company),” Shukeyev said at the meeting of Sovereign Wealth Fund……………………………………….Full Article: Source

Khazanah joins sovereign funds’ expansion spree: Southeast Asia

Posted on 27 February 2014 by VRS  |  Email |Print

When Malaysia’s sovereign wealth fund announced its 2013 return last month, it highlighted its international presence for the first time in its annual report and plans to continue expanding abroad. Khazanah Nasional Bhd., which has locations in Beijing and Mumbai, said it opened offices in San Francisco and Istanbul with a map that included the various countries where its companies have operations.
“The new offices indicate a further internationalization of their investments,” said Victoria Barbary, director at the London-based Institutional Investor’s Sovereign Wealth Center. “I expect Khazanah to seek more technology investment through its office in California. And that might help bolster some knowledge transfer to their domestic firms.”……………………………………….Full Article: Source

Temasek playing with fire … again

Posted on 25 February 2014 by VRS  |  Email |Print

In the investment world, one must either be very dumb or very smart to make moves such as the one reportedly being contemplated by the Singapore sovereign fund Temasek Holdings Pte in Thailand.
Reports over the past week said that Temasek was looking to divest its shareholding in Shin Corp Plc (now called Intouch or INTUCH), and make a financial killing in the process. Temasek purchased nearly 96% of Shin in 2006 for 49.25 baht a share and is sitting on potential capital gains of billions of dollars as the current share price of INTUCH is around 70 baht………………………………………..Full Article: Source

Norway’s oil fund to double specialists

Posted on 24 February 2014 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund is looking to more than double the number of industry specialists in its equities team as the $840bn Norwegian oil fund steps up efforts to outperform global stock markets. Norway’s oil fund is one of the world’s biggest equity investors, owning on average 1.25 per cent of every listed company globally.
Giving a rare insight into the inner workings of the oil fund, Petter Johnsen, its chief investment officer for equities, told the Financial Times he was looking to bulk up the number of portfolio managers that follow specific sectors such as US banks or European insurers………………………………………..Full Article: Source

Private equity and SWF investments rising in MENA

Posted on 21 February 2014 by VRS  |  Email |Print

Private equity and sovereign wealth fund (SWF) investments in the MENA region are strongly rebounding aided by the improved confidence in the regional economy, according to a report by Ernst & Young (EY).
Out of 442 deals announced in the MENA region during 2013, SWFs were involved in 19 deals with a deal value of $14.5 billion. This makes SWFs the single largest buyer constituency in MENA, contributing to 29 per cent of overall deal values………………………………………..Full Article: Source

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