Sat, Oct 25, 2014
A A A
Welcome sandeep.kottawar@wns.com
RSS

Sovereign Wealth Funds Briefing - Archive | May, 2012

GIC, Canada fund among bidders for $1.4 bln Kyobo stakes: sources

Posted on 31 May 2012 by VRS  |  Email |Print

Government of Singapore Investment Corp (GIC) and Canada’s Ontario Teachers Pension Plan are among final bidders to buy stakes in South Korea’s unlisted Kyobo Life Insurance, sources said, in deals worth up to $1.4 billion.
Daewoo International Corp and state-run Korea Asset Management Corp (KAMCO) are offering about a one-third stake in the life insurance company in two separate sales. The final bids for the stakes were made on Tuesday, the sources, who had direct knowledge of the matter, told Reuters………………………………………..Full Article: Source

Malaysia’s Felda Global locks in Qatar Holding as cornerstone-source

Posted on 31 May 2012 by VRS  |  Email |Print

Qatar Holding LLC, a unit of the Gulf nation’s sovereign wealth fund, has agreed to take part in the planned $3 billion listing of Malaysia’s Felda Global Ventures Holdings Bhd as a cornerstone investor, a source with direct knowledge of the deal told Reuters.
It would be the first time a Middle Eastern sovereign fund has acted as a cornerstone in a Malaysian initial public offering (IPO)………………………………………..Full Article: Source

Towards a resolution of Nigeria’s sovereign wealth fund controversy

Posted on 31 May 2012 by VRS  |  Email |Print

The cat-and-mouse game between the federal government (FG) and the 36 state governments (SGs) over the Excess Crude Oil Account (ECA) and the Nigeria Sovereign Wealth Fund (NSWF) is gradually coming to a climax. After listening to the arguments of both parties in the case filed by the SGs against the FG over the ECA/NSWF, the Chief Justice of the Federation (CJN) on May 21, 2012 decided to adjourn the case to September 25, 2012 for what may be the final decision on the case.
It will be recalled that since President Obasanjo unilaterally established the ECA in 2004, there has been a raging controversy between the FG and the 36 SGs over the constitutionality of the ECA………………………………………..Full Article: Source

BT pension fund buys stake in British utility Thames Water

Posted on 31 May 2012 by VRS  |  Email |Print

BT Group Plc’s pension fund said it acquired a minority percent stake in Thames Water, Britain’s largest water and sewage company, from Macquarie Group Ltd.
Macquarie has been selling down its holding in Thames Water and sold an 8.76 percent stake to China Investment Corp., China’s largest sovereign wealth fund in January………………………………………..Full Article: Source

Mercer lists priorities for Norway’s GPFG

Posted on 31 May 2012 by VRS  |  Email |Print

A report finding Norway’s $582.7-billion sovereign wealth fund could face significant losses in a range of climate-change scenarios is unlikely to result in changes to the fund’s investment strategy, Norway’s state secretary Hilde Singsaas says.
Norway’s Ministry of Finance released the report into the Government Pension Fund Global’s (GPFG) that it commissioned from Mercer and which recommends the fund make it a priority to increase allocations to low-carbon intensive infrastructure, environmentally friendly real estate and green-investment opportunities in private equity………………………………………..Full Article: Source

Removal of tax quirk for SWFs could benefit US buyout houses

Posted on 31 May 2012 by VRS  |  Email |Print

Proposals to allow sovereign wealth funds to invest in US private equity funds without losing their tax-exempt status could boost investment in the asset class, says US law firm Pepper Hamilton in a recent note.
Sovereign wealth funds are often formed as entities separate to a government, and if a SWF conducts any so-called ‘commercial activity’ anywhere in the world, they currently stand to lose their special sovereign-related tax exemption status (on certain types of income) in the US. Commercial activities are defined as “business conducted for income or gain”………………………………………..Full Article: Source

Slovenia plans wealth fund to streamline state-asset management

Posted on 30 May 2012 by VRS  |  Email |Print

Janez SustersicSlovenia plans to create a sovereign- wealth fund by merging agencies that are managing state assets to boost revenue from their investments.
“The aim is to streamline the management of state assets and make them more efficient,” Finance Minister Janez Sustersic told reporters in Ljubljana. “We will later decide which are just portfolio investments, which are strategic and we want to keep and which companies will be sold.”……………………………………….Full Article: Source

Asia: Tensions rise between central banks and SWFs

Posted on 30 May 2012 by VRS  |  Email |Print

Brian BakerCentral banks in Asia – as elsewhere – are increasingly looking at new types of investment* with a view to diversifying their exposure and boosting returns.
This is raising various issues, one of which is the effect it is having on their relationships with their sovereign wealth funds. In some cases these are already tense, given the competition between the two entities; moves into new asset classes by central banks may be causing further strains………………………………………..Full Article: Source

Nigeria: SWF - Governors ask South Court to abort FG’s plan to withdraw $2 bln

Posted on 30 May 2012 by VRS  |  Email |Print

Legal tussle over the proposed creation of a “Sovereign Wealth Fund” assumed a fresh dimension, yesterday, as Governors of the 36 states of the federation approached the Supreme Court, asking it to abort plans by the Federal Government to withdraw $2 billion from the “Excess Crude Account.”
The governors made the request on a day they told a seven-man panel of Justices of the apex court, presided by Chief Justice of Nigeria, CJN, Justice Dahiru Musdapher, why they failed to reach agreement with the Federal Government, regarding its plans to transfer $1 billion from the “Excess Crude Account” to a new account to be known as the “Sovereign Wealth Fund.”……………………………………….Full Article: Source

UAE central bank data indicate investment jump by sovereign funds

Posted on 30 May 2012 by VRS  |  Email |Print

Sovereign wealth funds and other government entities in the United Arab Emirates greatly increased their overseas investments during 2011 as higher oil prices led to a large rise in the country’s balance of payments surplus, new figures from the U.A.E. central bank indicate.
Capital outflows from U.A.E. public sector entities rose to 95 billion U.A.E. dirhams ($26 billion) in 2011 from AED10 billion in 2010, according to the recently-released central bank annual report for 2011. That was the highest outflow since 2008, when the global financial crisis led to a sharp drop in the U.A.E’s oil revenues………………………………………..Full Article: Source

Qatar plans to raise spending

Posted on 30 May 2012 by VRS  |  Email |Print

Qatar plans to boost government spending by 27 per cent in the fiscal year that began in April, including on wages, social services and infrastructure, but it expects to see a comfortable surplus.
Qatar, a major global investor through its sovereign wealth fund, has yet to release budget data for 2011-12. It overshot its budget by 21pc on average in the previous two years, finance ministry data shows………………………………………..Full Article: Source

Manabi seeks Batista gains in bear-market IPO: Corporate Brazil

Posted on 30 May 2012 by VRS  |  Email |Print

Manabi SA, the first Brazilian iron- ore company to go public since 2006, is counting on Ontario Teachers’ Pension Plan to spark investor interest in its share sale after Brazil’s benchmark stock index entered a bear market.
Rio de Janeiro-based Manabi filed on May 16 to sell shares in Sao Paulo and Toronto to help finance $4.12 billion of iron ore projects in Brazil’s Minas Gerais state. Canada’s third- biggest pension fund is Manabi’s top investor with a 21 percent holding, while South Korea’s sovereign wealth fund and Southeastern Asset Management also have stakes in the company………………………………………..Full Article: Source

Azerbaijan reduces volume of transfers from State Oil Fund

Posted on 30 May 2012 by VRS  |  Email |Print

The successful execution of the state budget allowed it to reduce the amount of transfers from the State Oil Fund of Azerbaijan (SOFAZ), Finance Minister Samir Sharifov said during the discussion of the draft law On State Budget Execution for 2011 in Parliament on Tuesday.
“Execution of expenditures below the target level and income above 100 per cent allowed transfers from the State Oil Fund amounting to 203 million manat below the target level,” Sharifov said………………………………………..Full Article: Source

Kazakh sovereign wealth fund works out development strategy to 2022

Posted on 30 May 2012 by VRS  |  Email |Print

“The code of corporate governance is aimed at improving and systematization of the Fund’s corporate governance, insuring the greater transparency in fund management and confirmation of fund’s willingness to meet the standards of good corporate governance,” the Fund said.
Moreover, the Board of Directors of Samruk-Kazyna decided to set up a specialized committee under the board of directors of Samruk-Kazyna, which will realize comprehensive and objective analysis of the impact of the Fund’s organizations on the development of the economy and sectors of the economy………………………………………..Full Article: Source

F1 snubs sovereign wealth funds in IPO race

Posted on 30 May 2012 by VRS  |  Email |Print

The owners of Formula One motor racing are shunning ultra-wealthy government-backed investment funds as they attempt to sell billions of pounds worth of shares in the sport, sources said Tuesday.
The bankers working for CVC Capital Partners, F1’s controlling shareholder, held talks in the last week with dozens of potential investors as F1 races towards a Singapore flotation that will value it at more than £6.5 billion ($10 billion)………………………………………..Full Article: Source

Expecting a rebound, Alaska Permanent Fund to invest in foreclosures

Posted on 30 May 2012 by VRS  |  Email |Print

The Alaska Permanent Fund Corporation (APFC) is eyeing troubled real estate markets to boost its portfolio. The $40-billion-dollar fund plans to make an initial investment of $400 million in the company American Homes 4 Rent LLC.
The fund’s board of trustees is looking at investing in depressed housing markets across the nation. Their plan is to invest through the property management firm American Homes 4 Rent LLC, which owns around 1,000 single-family homes and will scoop up foreclosed properties………………………………………..Full Article: Source

Proposed regulations ease sovereign wealth fund investment into private equity funds

Posted on 30 May 2012 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) represent a significant source of investor funds for private equity funds. By some estimates, SWFs have nearly $5 trillion of funds under management.1 An important part of planning for SWF investment in funds is to ensure that U.S. source interest and dividends are exempt from U.S. withholding taxes.
The Internal Revenue Code long has provided such an exemption for interest and dividends received by foreign governments. Temporary regulations were issued in 1988. After 24 years, Treasury has issued proposed regulations that, in some cases, should ease investment by SWFs in private equity funds………………………………………..Full Article: Source

UAE: Sovereign wealth funds’ investment abroad soars

Posted on 29 May 2012 by VRS  |  Email |Print

Giyas GokkentSovereign wealth funds and other government entities in the UAE greatly increased their overseas investments during 2011 as higher oil prices led to a large rise in the country’s balance of payments surplus, new figures from the UAE Central Bank indicate.
Capital outflows from UAE public sector entities rose to Dh95 billion ($26 billion) in 2011 from Dh10 billion in 2010, according to the recently-released Central Bank annual report for 2011. That was the highest outflow since 2008, when the global financial crisis led to a sharp drop in the UAE’s oil revenues………………………………………..Full Article: Source

South Africa Mine Union supports resource tax

Posted on 29 May 2012 by VRS  |  Email |Print

The South African National Union of Mineworkers supports the ruling African National Congress’s proposal for a resource-rent tax for the mining industry as an alternative to nationalizing mines, Business Day reported, citing the union.
The additional taxes raised should be used for a sovereign wealth fund and a state-owned mining company, the union proposed at its national congress last week, according to the Johannesburg-based newspaper………………………………………..Full Article: Source

Yongda shelves Hong Kong IPO

Posted on 29 May 2012 by VRS  |  Email |Print

China Yongda Automobiles Services Holdings, which sells BMWs and Toyotas in China, said Monday it has scrapped its plan to raise up to US$433 million in an initial public offering in Hong Kong owing to deteriorating equity markets, in the biggest IPO casualty of weak markets in Asia this year.
The postponement is noteworthy because Yongda had secured US$150 million of cornerstone investment from Baring Private Equity Asia V Holding Ltd. and Oman sovereign wealth fund Oman Investment Fund………………………………………..Full Article: Source

Alternatives becoming core to portfolios: BlackRock

Posted on 29 May 2012 by VRS  |  Email |Print

Alternatives are coming in from the cold and are becoming a core portfolio constituent for investors, says Joseph Pacini, head of the strategy group at BlackRock Alternative Investors (BAI) for Asia-Pacific ex-Japan.
More recently, it formed a joint venture with sovereign fund China Investment Corporation (CIC) to invest in private equity deals on the mainland and globally. Pacini declined to comment on the CIC partnership, but noted that “global investors outside of the region clearly see China as a continued growth engine”………………………………………..Full Article: Source

Alaska Permanent Fund to invest 1 pct in foreclosed home market

Posted on 29 May 2012 by VRS  |  Email |Print

The Alaska Permanent Fund Corp. will be expanding its investment into the home market. Executive director Mike Burns tells the Juneau Empire that the fund intends to buy hundreds of foreclosed properties and maybe more.
Burns says fund trustees at their meeting in Anchorage last week decided to make buys in some of the nation’s most distressed housing markets. He says the plan is to buy foreclosed properties and rent them out while waiting for the real estate markets to improve………………………………………..Full Article: Source

Qatar Investment Authority seeks QFII licence

Posted on 28 May 2012 by VRS  |  Email |Print

Qatar Investment Authority has applied for a licence to invest directly in the Chinese onshore market, and sources say it is hiring staff in Asia, although the timeframe for both is unclear.
The sovereign wealth fund’s assets under management – derived chiefly from the country’s liquefied natural gas exports – are set to increase to $135 billion this year, says the Institute of International Finance. A QIA board member said this year that the fund would be investing $30 billion in 2012 alone………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Mubadala considers buying Turkish Halkbank, Vatan says

Posted on 28 May 2012 by VRS  |  Email |Print

Mubadala Development Co. PJSC, a sovereign wealth fund of Abu Dhabi, is considering a bid to buy state-owned Turkish lender Turkiye Halk Bankasi AS, Vatan newspaper reported.
Mubadala officials have visited Turkey several times in the past six months and may be considering an offer of around $10 billion for the Turkish bank, Vatan reported citing unnamed banking officials………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Halkbank gains on report wealth fund is considering a bid

Posted on 28 May 2012 by VRS  |  Email |Print

Turkiye Halk Bankasi AS, a state-run Turkish bank, rose after Vatan newspaper reported Mubadala Development Co. PJSC, a sovereign wealth fund of the Emirate of Abu Dhabi, is considering making a bid for the lender.
The shares gained 1.9 percent to 11 liras at 11:13 a.m. in Istanbul, outperforming the Turkish banking index, which declined 0.9 percent………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Hassad Food of Qatar may invest $625 mln this year

Posted on 28 May 2012 by VRS  |  Email |Print

Hassad Food Co, the agricultural investment arm of Qatar’s sovereign wealth fund, may invest 500m euros ($625m) this year to increase food supplies for the desert emirate, the company’s chairman said.
“Buying agricultural land isn’t a goal for the company,” Nasser al-Hajri said in an interview in the Qatari capital Doha. “The goal is to produce and improve the production from different parts of the world.”……………………………………….Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Qatar goes on European shopping spree

Posted on 28 May 2012 by VRS  |  Email |Print

While most investors have either been choking back the tears or avoiding the beleaguered, recession-hit eurozone, one wealthy Arabian emirate has been on a trolley dash.
Over the past three months, Qatar - a state no bigger than Yorkshire - has embarked on the financial equivalent of a £7bn supermarket sweep………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Giant Gulf funds refocus on alternatives

Posted on 28 May 2012 by VRS  |  Email |Print

Sovereign wealth funds from the region with the world’s highest concentration of state-backed capital, the Gulf of Arabia, are set to increase their allocation to hedge funds and other alternative investments.
Speaking at a roundtable conducted behind closed doors in the Gulf last month, and just published, Bhisham Manraj, head of fixed income, currency and commodity coverage of Middle East and North Africa sovereign wealth funds at Bank of America Merrill Lynch, said: “We will see increasing interest from SWFs for alternative investments………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Sovereign wealth fund to re-invest state ‘profits’

Posted on 28 May 2012 by VRS  |  Email |Print

Kenya will use profits from its state enterprises to set up its first sovereign wealth fund that will reinvest the money to advance the country’s commercial interests in foreign countries, senior government officials said on Thursday.
The planned measure is part of the ongoing reforms in the operations of the state corporations expected to be completed when the proposed law and regulations are approved by parliament………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Alaska Permanent Fund plans to invest in foreclosed homes

Posted on 28 May 2012 by VRS  |  Email |Print

The Alaska Permanent Fund Corp. will be expanding its investment into the home market. Executive director Mike Burns tells the Juneau Empire that the fund intends to buy hundreds of foreclosed properties and maybe more.
Burns says fund trustees at their meeting in Anchorage last week decided to make buys in some of the nation’s most distressed housing markets………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Permanent fund looks to capitalize on housing crisis

Posted on 28 May 2012 by VRS  |  Email |Print

The time is right to buy houses, the Alaska Permanent Fund Corp. thinks. It will soon be buying hundreds, if not thousands, of foreclosed properties, said Executive Director Mike Burns.
The permanent fund’s board of trustees, meeting in Anchorage last week, decided to make a bold move into some of the nation’s most distressed housing markets, from San Diego to Tampa………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Wyoming’s Permanent Mineral Trust Fund can’t entirely protect the budget from volatile commodity prices

Posted on 28 May 2012 by VRS  |  Email |Print

The governor gave no mention what-so-ever to a source of funding that was supposed to insulate Wyoming’s budget from the whipsaw of commodities: The Wyoming Permanent Mineral Trust Fund (WPMTF)
Created thirty-eight years ago this month, the WPMTF mandated that a minimum of 1.5 percent of Wyoming severance taxes on gas, oil, coal, and other minerals be placed in a constitutionally protected trust………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Sovereign funds prominent investors in infrastructure assets

Posted on 28 May 2012 by VRS  |  Email |Print

A report prepared by KFH-Research regarding the performance and status of global infrastructure funds market, mentioned that despite the recent poor performance of subscriptions and money gathering, infrastructure funds are expected to attract more investors and to continue achieving reasonable growth; especially after the growing trend to spend funds on in infrastructure projects and the participation of the private sector in those projects.
In addition, the report noted that infrastructure funds began to recover starting from 2010, where total collected money reached $32 billion, before dropping to $16 billion in 2011………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

China fund may add $2bln to finance Alibaba share buyback

Posted on 25 May 2012 by VRS  |  Email |Print

The China Investment Corp. is in advanced talks to add as much as $2 billion into the Alibaba Group to hlep finance the Internet company’s efforts to buy back a stake from Yahoo, a person briefed on the matter said Thursday.
The Chinese Investment Corp., known as CIC, a $200 billion Chinese sovereign wealth fund, is one of several potential partners from whom Alibaba would raise money to pay for the stake repurchase. On Sunday, Alibaba announced a long-awaited deal to buy back half of Yahoo’s 40 percent stake in the company for $7.1 billion………………………………………..Full Article: Source

China’s CIC in advanced talk to buy stake in Alibaba Group

Posted on 25 May 2012 by VRS  |  Email |Print

Sovereign wealth fund China Investment Corp (CIC) is in advanced talks to buy an up to $2 billion stake in Alibaba Group, sources told Reuters, as the Chinese e-commerce powerhouse looks to secure the last of the funding it needs to buy back part of its stake from Yahoo Inc.
The involvement of CIC, China’s giant sovereign wealth fund which manages around $410 billion in assets, underlines the significance of the deal Alibaba has struck with Yahoo, which returns voting control back to founder Jack Ma………………………………………..Full Article: Source

CIC urges Europe to open further

Posted on 25 May 2012 by VRS  |  Email |Print

China will continue to support Europe’s attempts to overcome its eurozone crisis and Europe should be more open to inflows of capital, particularly at a time when the region needs liquidity, said a top official from China’s sovereign wealth fund.
“China’s commitment to supporting Europe and its efforts to deal with the sovereign debt crisis is firm and unambiguous,” Jin Liqun, chairman of the board of supervisors of China Investment Corp, said at an event held on Tuesday by the Center for Policy Studies, a think tank in the United Kingdom………………………………………..Full Article: Source

Future Fund has ethical responsibility

Posted on 25 May 2012 by VRS  |  Email |Print

How disingenuous can the Future Fund’s officers be? The federal government helped formulate and approve the United Nations policy on investments – no tobacco or armaments allowed.
When the Future Fund was being set up, its officers visited the United Nations Pension Fund in New York to which the Future Fund is directly comparable, as both funds provide superannuation payments to civil servants………………………………………..Full Article: Source

Australian fund managers feel strain from Europe’s debt crisis

Posted on 25 May 2012 by VRS  |  Email |Print

Australian fund managers may be on the other side of the world from the drama unfolding in Europe, but local wealth managers are nonetheless feeling the impact from the region’s debt crisis.
Australia’s A$77 billion Future Fund had A$4.32 billion, or 5.77% of its total equity and debt program, invested in Europe as of February 14, according to data supplied to the country’s parliament. Of that, less than 0.4% was in Europe’s most troubled countries–Greece, Portugal, Spain, Ireland and Italy………………………………………..Full Article: Source

It’s all in the timing at the Future Fund

Posted on 25 May 2012 by VRS  |  Email |Print

Sensitive details on the inner workings of the Future Fund were divulged when the general manager of the federal public service pension fund, Mark Burgess, faced his routine interrogation in Canberra.
It has emerged that the fund’s new chairman, David Gonski, is more of a morning person compared with his predecessor, the former Commonwealth Bank chief David Murray………………………………………..Full Article: Source

Zimbabwe: NGOs call for wealth fund

Posted on 25 May 2012 by VRS  |  Email |Print

Non-Governmental organisations in Zimbabwe have called on Government to urgently establish a Sovereign Wealth Fund as back-up when diamonds have been exhausted. Dr Cephas Zinhumwe, the chief executive officer of the National Association of Non-Governmental Organisations, made the plea.
“Government needs to establish a Sovereign Wealth Fund . . . Diamonds are a finite resource and we must plan for the future when these minerals run out,” Dr Zinhumwe said in his presentation………………………………………..Full Article: Source

Kazakhstan investments into the US economy stand at $41 bln: Central Bank Governor

Posted on 25 May 2012 by VRS  |  Email |Print

Kazakhstan has invested into the US economy a total of $41 billion, Newskaz.ru reports, citing the Kazakh Central Bank Governor Gregory Marchenko as saying May 24.
The National Fund of Kazakhstan was created in 2000 as a stabilization fund that accumulates windfall revenues from oil sales and ensures the economy of Kazakhstan will be stable against the price swings of oil. The assets of the National Fund assets are monitored by the National Bank of the Republic of Kazakhstan………………………………………..Full Article: Source

Sovereign wealth funds investing locally

Posted on 25 May 2012 by VRS  |  Email |Print

Sovereign governments and sovereign wealth funds (SWFs) are investing less internationally than they have done at any point in the last three years, according to the third annual Invesco Middle East Asset Management Study.
Gulf Cooperation Council (GCC) sovereign states have deployed wealth into local economies throughout the Arab Spring and SWFs show signs of diverting away from international trophy assets and other global investments………………………………………..Full Article: Source

SWFs looking to more alternatives - Opalesque

Posted on 25 May 2012 by VRS  |  Email |Print

The total assets under management of all Sovereign Wealth Funds globally is around $4.6trn and they are increasingly interested in alternative investments, according to discussion recorded at an Opalesque Gulf Round Table.
While most are active in fixed income and equities, which they manage internally and externally through specialized portfolio managers, there is a growing need for diversification and increased yield in the current low interest rate environment………………………………………..Full Article: Source

Qatar stakes in Siemens, Shell reflect drive to step up development

Posted on 24 May 2012 by VRS  |  Email |Print

Efraim ChalamishQatar’s purchase of stakes in engineering group Siemens and oil giant Shell follow a pattern of the Gulf Arab state investing to accelerate its domestic development and, in the case of Shell, underlines its long-term faith in commodity prices.
“I see this as part of a broader strategic alliance between Gulf funds and Western companies and not only a liquidity and financial speculation story,” said Efraim Chalamish, a sovereign wealth fund expert and fellow at New York University. “This is a reflection of a strong interest (by wealth funds) in investing in (their) local markets, in addition to diversification abroad,” he said………………………………………..Full Article: Source

Redford looking for ‘conversation’ with Albertans on Heritage Fund

Posted on 24 May 2012 by VRS  |  Email |Print

Alison Redford.Alberta’s Heritage Fund is about to go under the microscope after a provincial election campaign where all parties said the province must put away more cash for future generations.
And with a national debate raging over Alberta’s energy wealth and whether it’s giving the country an acute case of “Dutch disease,” the fate of the $15.4-billion fund could take on greater importance………………………………………..Full Article: Source

Brazil’s Batista seeks stamp of approval with EBX sale

Posted on 24 May 2012 by VRS  |  Email |Print

Eike Batista, Brazil’s richest man, is selling stakes in his holding company to international investors to help bolster confidence after shares of his largest unit slumped to the lowest in seven months.
Sovereign wealth fund Mubadala bought the EBX stake for $2 billion last month. Batista agreed in January to sell 10 percent of his power company MPX Energia SA (MPXE3) to Dusseldorf-based EON for 850 million reais ($414.5 million) and in April he sold 20 percent of technology unit SIX Automacao to Armonk, New York- based IBM………………………………………..Full Article: Source

W.Australia: Can’t second-guess resources future, so wealth fund is vital

Posted on 24 May 2012 by VRS  |  Email |Print

WA is well overdue to have a sovereign wealth fund and the State Government is to be commended for introducing the concept in this year’s Budget. As one of the early advocates of a future fund, I recall the energy that went into the policy debates on the subject in the early 1980s.
Since then, sovereign wealth funds have been established in many parts of the world. The principle of reserving for future generations a significant proportion of revenues derived from the exploitation of non-renewable resources is hard to deny. Efforts to establish a WA future fund in the 1980s were unsuccessful because of a global recession, the lower prices for iron ore and sustained opposition from Treasury bureaucrats………………………………………..Full Article: Source

Greens fume over Future Fund’s tobacco shares

Posted on 24 May 2012 by VRS  |  Email |Print

The Future Fund’s shareholding in tobacco companies has soared to almost $250 million, despite Federal Government moves to discourage smoking. The value of tobacco company shares held by the Future Fund has increased by more than 50 per cent since the start of last year.
Mark Burgess from the Future Fund Management Agency has not been able to tell a Senate estimates hearing what is behind the increase. He says, however, that all investments are in line with the fund’s policies………………………………………..Full Article: Source

Future Fund’s tobacco stake lights up a storm

Posted on 24 May 2012 by VRS  |  Email |Print

The Future Fund’s stake in the tobacco industry has swelled by $78 million, an increase of more than 50 per cent, sparking criticism of the fund for investing in companies that are suing the government.
The taxpayer-owned fund, which also has shares in nuclear arms companies, yesterday disclosed tobacco shares worth $225 million in February, up from $147 million at the end of 2010………………………………………..Full Article: Source

Temasek Holdings raises stake in Singapore Airlines to 56pct

Posted on 24 May 2012 by VRS  |  Email |Print

Singapore Airlines Ltd. Wednesday said that the island nation’s state investment firm Temasek Holdings has raised its stake in the airline by a percentage point to 56% via a series of open market transactions.
Temasek’s total holding, both direct and deemed, earlier amounted to 55.02% of Singapore Airlines. The stakeholding rose to 56.00% as at May 18 after transactions by Temasek, its units and associates, according to a filing with the Singapore Exchange………………………………………..Full Article: Source

banner
May 2012
M T W T F S S
« Apr   Jun »
 123456
78910111213
14151617181920
21222324252627
28293031