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Sovereign Wealth Funds Briefing 27.May 2015

Posted on 27 May 2015 by VRS |  Email |Print

The government is finalising a mechanism that will allow private equity firms and sovereign wealth funds, including Khazanah, Macquarie and Temasek to buy stakes in highway projects, freeing up resources for the sector. “There is a lot of interest…we are examining how best to leverage it…There are various options,” a road ministry official told ET, confirming that these three investors are among those that want to take over road projects in India and are waiting for a clear policy directive.
One option under consideration is a government-promoted special purpose vehicle that will pick up part of the equity in projects in which PEs and SWFs are interested. The Rs 20,000 crore National Investment and Infrastructure Fund, proposed by finance minister Arun Jaitley in his budget speech, could be tapped for this…………………………………..Full Article: Source

Posted on 27 May 2015 by VRS |  Email |Print

Larger investors, particularly the institutional pension plans, insurance companies and sovereign wealth funds, as well as development finance institutions (“DFIs”), continue to have an important role in the development of the market. We mention below a number of areas where their influence is being felt.
More generally, we are seeing greater outbound investment from key groups of Asian investors as they look to increase the diversification of their portfolios (as a result of regulatory change or otherwise). For example, Chinese insurers are starting to emerge as a force, particularly so far in real estate and infrastructure. Similarly, there has been a resurgence from Japanese and Korean investors looking outbound in recent years…………………………………..Full Article: Source

Posted on 27 May 2015 by VRS |  Email |Print

What started as Chinese sovereign funds making exploratory investments in Australia has now proliferated into investment sprees by Chinese developers, banks, ultra high net worth individuals (UHNWI’s) and institutional investors such as insurance companies.
The attractiveness of mature gateway markets in the UK, US and Australia is pulling capital out of China, providing quality products and higher yield returns with diversification benefits and assisting institutions and developers build their brand internationally………………………………….Full Article: Source

Posted on 27 May 2015 by VRS |  Email |Print

Bank Negara has received information from the Monetary Authority of Singapore (MAS) about an account connected to 1Malaysia Development Bhd (1MDB) in BSI Bank Ltd in the republic, Bank Negara governor Tan Sri Zeti Akhtar Aziz said.
In a Bernama report, Zeti said Bank Negara had received a report from MAS about an account linked to the debt-ridden strategic investment firm at the Swiss-based BSI Bank. She said a report from MAS would be shared with other Malaysian agencies, but declined to name them for confidentiality…………………………………..Full Article: Source

Posted on 27 May 2015 by VRS |  Email |Print

Sovereign wealth funds are sprouting across Africa – 15 countries have created funds in the last 20 years, managing a total of $159bn at the end of September 2014. Angola, Nigeria, Senegal and Ghana all started funds in the last 3 years and and funds are discussed, expected or being born in: Kenya, Liberia, Mauritius, Mozambique, Namibia, Niger, Uganda, Sierra Leone, South Sudan, Tanzania, Uganda, Zambia and Zimbabwe.
A key research event at Chatham House in September 2014 identified some principles of African SWF Demand, Development and Delivery. Funds with strict rules should limit politicians’ discretion and they can ensure that money is earmarked for public investments. For instance Ghana has a rule that oil revenues must fund “development-related expenditures”. In many cases this funding can be done through the governments’ budget and oversight systems, which otherwise funds might undermine and bypass………………………………….Full Article: Source

Posted on 27 May 2015 by VRS |  Email |Print

Africans should be asking these questions about their sovereign wealth funds (SWF): 1.Set clear fund objectives: Examples include saving for future generation, stabilizing the budget, earmarking natural resource revenue for development priorities. 2.Establish fiscal rules for deposits and withdrawals that align with the objectives. Botswana avoids such rules. Where funds are allowed to invest domestically, including in social spending, they should work with national budget processes. Angola’s sovereign fund can bypass normal budgetary procedures.
3.Establish investment rules, There have been notorious problems worldwide, one of Africa’s worst examples has been the Libyan Investment Authority under “brother leader” Gadhafi, when his son Saif al-Islam Gadhafi had almost sole discretion to manage approximately $65bn and billions went to close acquaintances…………………………………..Full Article: Source

Posted on 27 May 2015 by VRS |  Email |Print

Oh for the days of stability in the Middle East and the rule of Libyan strongman Muammar Qaddafi. At least then an entertaining lawsuit pitting the Libyan Investment Authority against Goldman Sachs Group Inc and Societe Generale might actually have proceeded.
As the escalating chaos in Libya has ripped apart the social fabric of the country, not to mention slashing oil production by as much as 1/3, the civil disarray that was predicted (by us) to become a factor in the lawsuit the oil rich nation had filed against large banks may come to pass…………………………………..Full Article: Source

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