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Sovereign Wealth Funds Briefing - Archive | August, 2012

Low yield environment increases sovereign wealth fund pressures

Posted on 31 August 2012 by VRS  |  Email |Print

Low nominal rates and the end to so-called “risk free” investing is adding to the growing pressure on sovereign wealth funds (SWFs) to perform. Relative to pre-2008 levels, official institutions which hold some $10tn in foreign exchange reserves lose approximately $250bn a year. This reality is forcing sovereign wealth funds to critically examine their investments and look for ways to recapture some of those losses.
“Managers of public wealth have been impacted by the crisis like every other investor, institutional and individual. They have realized that there are no longer assets that are entirely risk free. They are under huge pressure to find more income; since 2008, because of the decline in nominal rates, they are earning hundreds of billions of dollars less,” explains Terrence Keeley, Global Head of BlackRock’s Official Institutions Group,in an interview with Opalesque………………………………………..Full Article: Source

Qatar fund confirms opposition to Glencore’s Xstrata bid

Posted on 31 August 2012 by VRS  |  Email |Print

Glencore International PLC’s effort to form the world’s fourth-largest mining conglomerate by merging with Xstrata PLC edged closer to collapse Thursday, after Xstrata’s second-largest shareholder, sovereign-wealth fund Qatar Holding LLC, said it would vote against the deal, based on the current offer.
In its second public statement since Glencore and Xstrata announced plans to merge into a mining juggernaut with a market capitalization of about $70 billion, Qatar Holding said it “has determined that it will not support the proposed merger terms of 2.8 new Glencore shares for every one existing Xstrata share…although it continues to support the principle of a combination of Glencore with Xstrata.”……………………………………….Full Article: Source

Qatar to block Glenstrata mega-merger

Posted on 31 August 2012 by VRS  |  Email |Print

The Qatari sovereign wealth fund, the second-largest shareholder in Xstrata behind Glencore, said yesterday it will block the mega-merger between the two commodity giants.
Qatar has been fighting for an improved ratio on the 2.8 shares for every one existing Xstrata share offered by Glencore in February. It said in June that a ratio of 3.25 would better reflect the benefits of the merger. Glencore has so far resisted calls to up the share ratio, with chief executive Ivan Glasenberg calling the 2.8 ratio a “fair” deal………………………………………..Full Article: Source

Kazakhstan expects oil fund to reach $100 bln by 2015

Posted on 31 August 2012 by VRS  |  Email |Print

Kazakhstan’s government expects assets held by its sovereign wealth fund to more than double to $100 billion by 2015, Economic Development and Trade Ministry said in a statement distributed today in the capital, Astana.
The value of assets held by the National Oil Fund reached $53.3 billion in July, the Central bank said Aug 6. Kazakhstan, which holds about 3 percent of the world’s oil reserves according to BP Plc, created the National Oil Fund in 2000 to guard against declines in the price of crude. The fund holds 80 percent of its assets in bonds and 20 percent in stocks, the central bank said in November 2010, Kazinform has learnt from Bloomberg………………………………………..Full Article: Source

A more ethical Future Fund isn’t a bad idea

Posted on 31 August 2012 by VRS  |  Email |Print

The proposal for a more ethical Future Fund could be better, says James Rose, but investors should join the conversation rather than throw their arms up in horror. Not for the first time, the Greens have caused some hubristic harrumphing from the business sector with an idea that shines a light into an area Big Business would rather remain darkened.
The latest Greens missile is from Senator Richard Di Natale, and it concerns the marrying of social conscience and moral values with hard business………………………………………..Full Article: Source

Bumi Resources signs deal to sell 50pct stake in unit for $200 mln

Posted on 31 August 2012 by VRS  |  Email |Print

Thermal coal company Bumi Resources has signed a pact to sell its entire 50% stake in unlisted coal unit PT Fajar Bumi Sakti for $200 million, people involved in the deal told Dow Jones Newswires on Friday, as it sheds assets to pay off some of its debt.
The move comes days after Bumi Resources reported that it swung to a net loss of $322 million in the first-half of 2012, raising concerns on how it will repay the $1.3 billion worth of loans it owes China Investment Corp., or CIC. A banker on the deal said Bumi Resources will use the proceeds from the stake sale to repay $600 million of its total loans from CIC………………………………………..Full Article: Source

Alabama Trust Fund rolls out RFP for global custodian

Posted on 31 August 2012 by VRS  |  Email |Print

Alabama Trust Fund Board, Montgomery, is searching for a global custodian, according to an RFP posted on the Alabama state treasurer’s website.
The selected firm would provide global custodial and securities lending services for the $2.3 billion Alabama Trust Fund and the $417 million County Municipal Government Capital Improvement Trust Fund………………………………………..Full Article: Source

SWFs adopt new risk approach to target better liquidity

Posted on 31 August 2012 by VRS  |  Email |Print

Sovereign wealth funds are building risk monitoring systems based on warning signs such as rising commodity prices to help them reduce the risk in their portfolios in advance of market shocks, according to a panel of experts.
Sung Cheng Chih, former chief risk officer for the government of Singapore Investment Corporation (GIC) and currently a consultant to several sovereign institutions, said: “The financial crisis highlighted the importance of preparing for contingencies, with some funds now seeking to create risk dashboards based on pre-agreed signals for portfolio de-risking.”……………………………………….Full Article: Source

Barclays faces U.K. criminal probe over Qatar payments

Posted on 30 August 2012 by VRS  |  Email |Print

Robert DiamondBarclays Plc (BARC) faces a criminal probe into fees it paid in 2008 to Qatar’s sovereign wealth fund as the bank sought to raise money to avoid a government bailout.
The Serious Fraud Office, which prosecutes bribery and white-collar crime, told the London-based bank it has “commenced an investigation into payments under certain commercial agreements between Barclays and Qatar Holding LLC,” the lender said in a statement………………………………………..Full Article: Source

Norway fund no to Xstrata deal‎

Posted on 30 August 2012 by VRS  |  Email |Print

Ivan GlasenbergNorway has joined forces with Qatar in opposition to the $70 billion merger between commodities trader Glencore and miner Xstrata, further threatening one of the biggest deals in the natural resources industry over the past decade.
Norges Bank Investment Management, the manager behind Norway’s oil-backed sovereign wealth fund, has spent more than $500 million over the last few weeks buying Xstrata shares, according to regulatory fillings………………………………………..Full Article: Source

Wealth fund holds key to Qtel’s $2.2 bln Kuwaiti bid

Posted on 30 August 2012 by VRS  |  Email |Print

As Qatar Telecom (Qtel) dangles a $2.2 billion bait to persuade minority shareholders in its Kuwaiti unit Wataniya to sell out, it knows one major investor is positioned to frustrate its goal of 100 percent control.
Step forward the Kuwait Investment Authority (KIA), the sovereign wealth fund whose 23.5 percent stake in Wataniya makes it the second biggest shareholder and puts it in prime position to decide the fate of Qtel’s offer for the 47.5 percent it does not already own………………………………………..Full Article: Source

Nigeria: SWF takes off October

Posted on 30 August 2012 by VRS  |  Email |Print

After much delay, the controversial Sovereign Wealth Fund (SWF) will become operational October 2, 2012 following the federal government’s approval of its Board and appointment of its key management officers. The SWF will commence with an initial capital of $1 billion.
Also, the Excess Crude Account (ECA) which is a fore runner of the SWF has increased to $7.35billion. Disclosing these at a media briefing in Abuja, Coordinating Minister for the Economy and the Minister of Finance, Dr Ngozi Okonjo-Iweala, said commencement of the SWF operations was the result of a rigorous and transparent process which lasted almost a year………………………………………..Full Article: Source

Nigeria: FG appoints ex-JP Morgan MD to head sovereign fund

Posted on 30 August 2012 by VRS  |  Email |Print

Former Managing Director of JP Morgan Uche Orji has been appointed to run the Nigerian Sovereign Wealth Fund (NSWF) for the next five, the Minister of Finance said.
Dr. Ngozi Okonjo-Iweala also said at a press briefing in Abuja that Alhaji Mahey Rasheed will serve as chairman of the board with six other members. Alhaji Rasheed was a former deputy governor of the Central Bank of Nigeria and a member of the Board of First Bank………………………………………..Full Article: Source

Rasheed, Orji to lead sovereign wealth fund

Posted on 30 August 2012 by VRS  |  Email |Print

About 10 months after it announced the commencement of the Sovereign Wealth Fund (SWF) with $1 billion as seed capital, the Federal Government Tuesday unveiled the board of the Nigerian Sovereign Investment Authority (NSIA) with Alhaji Mahey Rasheed as Chairman and Uche Orji as its pioneer Managing Director.
While Rasheed is a former deputy governor of the Central Bank of Nigeria (CBN) and is presently a member of board of directors of First Bank Nigeria Plc, Orji, who previously served as managing director of leading investment bank in the United States of America – JP Morgan – is the Global Coordinator and Head, US Semiconductor Research as well as Co-Head of US Tech Sector Research at another prominent investment bank – USB………………………………………..Full Article: Source

German sovereign wealth fund (Video)

Posted on 30 August 2012 by VRS  |  Email |Print

Bloomberg’s Tom Keene and Sara Eisen recap the op-ed pieces and analyst notes providing insight behind today’s headlines. They speak on Bloomberg Television’s “Bloomberg Surveillance.”.………………………………………Full Article: Source

Samruk-Energo becomes Kazakhstan’s largest power company

Posted on 30 August 2012 by VRS  |  Email |Print

The total installed generation capacity of Samruk-Energo power plants will rise to 7,970.9 from 3,970.9 megawatt, which makes up 40.3% of station capacity of Kazakhstan’s unified energy system.
The Samruk-Kazyna fund’s board of directors decided to pass a 50% stake in the authorized capital of Ekibastuz Thermal Power Station-1 to the authorized capital of Samruk-Energo, the company’s press service reported to the kapital.kz business web portal………………………………………..Full Article: Source

China FX invest to avoid chasing short-term market move

Posted on 30 August 2012 by VRS  |  Email |Print

Investment of China’s huge foreign exchange reserves need to avoid chasing short-term market movements, which could become speculative. The central bank owned newspaper said its becoming increasingly challenging to invest China’s huge amount of foreign exchange reserves because of turmoil in the world financial markets.
It said the PBOC will stick to diversification of China’s forex reserves but will avoid chasing short term market moves. Lou Jiwei, chairman of China Investment Corp, the country’s sovereign wealth fund, said in an interview with Wall Street Journal in June that there is too much risk in Europe’s public markets and CIC has reduced its exposure to that………………………………………..Full Article: Source

The Caisse, Future Fund into infrastructure

Posted on 30 August 2012 by VRS  |  Email |Print

Two of the world’s biggest institutional investors have recently made significant forays into Australian infrastructure, seeing opportunities in the country across a wide array of assets.
Canada’s second largest pool of pension assets, la Caisse de dépôt et placement du Québec (the Caisse), has made a $139.2-million investment in five projects. Macky Tall, the fund’s senior vice president of investments in infrastructure, says the Caisse team is looking at other opportunities in Australia………………………………………..Full Article: Source

Sovereign wealth funds lured to Australian property

Posted on 30 August 2012 by VRS  |  Email |Print

Sovereign pension funds are buying into Australian direct property developments, including the high-profile Barangaroo development, in a bid to grow members’ investments, with local fund managers also getting in on the act.
Just this month, the National Pension Service of Korea agreed to co-invest $360 million for 50 per cent ownership in 13 industrial properties in Australia with Dexus Property Group. The partnership could more than double in the next five years and fund further industrial property developments, Dexus said………………………………………..Full Article: Source

SWFs say goodbye West, hello East

Posted on 29 August 2012 by VRS  |  Email |Print

Fabio ScacciavillaniDespite the mire of the recession, global sovereign wealth funds (SWFs) continued to line their commodity-filled boots. Soaring GDP in emerging markets has fuelled a 28 per cent rise in the total assets held by SWFs since the inception of the financial crisis.
The notoriously cash-rich and media-shy government investment vehicles boasted a total capital haul of $4.8 trillion in December 2011, compared to the $3.75 trillion recorded in September 2008. Amid the Eurozone debt crisis and a global liquidity crunch, sovereign wealth funds have emerged as vital forefront players in the international financial market………………………………………..Full Article: Source

Norway fund opposes Glencore-Xstrata merger

Posted on 29 August 2012 by VRS  |  Email |Print

A Norwegian sovereign wealth fund has opposed the terms of commodities trader Glencore’s proposed $30 billion takeover of miner Xstrata, the Financial Times reported on Wednesday, without citing sources.
Norway joins Qatar whose own sovereign wealth fund investment arm demanded improved terms and threatened to vote against the deal. Qatar Holding is the second-largest shareholder in Xstrata with a 12 percent stake………………………………………..Full Article: Source

Kazakhstan expects oil fund to reach $100 bln by 2015

Posted on 29 August 2012 by VRS  |  Email |Print

Kazakhstan’s government expects assets held by its sovereign wealth fund to more than double to $100 billion by 2015, Economic Development and Trade Ministry said in a statement distributed today in the capital, Astana.
The value of assets held by the National Oil Fund reached $53.3 billion in July, the Central bank said Aug 6. Kazakhstan, which holds about 3 percent of the world’s oil reserves according to BP Plc (BP/), created the National Oil Fund in 2000 to guard against declines in the price of crude………………………………………..Full Article: Source

Sovereign wealth fund to finance Far East development

Posted on 29 August 2012 by VRS  |  Email |Print

The money accumulated in Russia’s Sovereign Wealth Fund could be transferred to Vnesheconombank’s subsidiary, Far East Development Fund, which was established to implement investment projects in the country’s Far East, First Deputy Prime Minister Igor Shuvalov said at a news conference devoted to Russia’s presidency at the 2012 Asia-Pacific Economic Cooperation (APEC) forum.
He went on to say that projects in the Far East will be executed in cooperation with the Asian Development Bank (ADB). Russia’s Foreign Ministry and Economic Development Ministry are establishing close ties with this institution, Shuvalov noted………………………………………..Full Article: Source

Nigeria announces board to manage proposed $1bln SWF fund from oil revenue

Posted on 29 August 2012 by VRS  |  Email |Print

Officials say Nigeria will launch a $1 billion sovereign wealth fund in the coming months to invest some of the nation’s oil revenue. Nigeria’s Finance Ministry made the announcement Tuesday. It said the board managing the fund will be led by Mahey Rasheed, a board member at Nigeria’s First Bank PLC. Uche Orji of UBS will serve as the fund’s managing director and CEO.
Nations use sovereign wealth funds to invest in stocks or securities. Nigerian authorities pushed for the creation of a sovereign wealth fund as a means to better save the billions of dollars the nation annually earns annual from oil revenues. Opaque budgeting and corruption sees much of the money siphoned away………………………………………..Full Article: Source

Sovereign wealth fund kicks off as board is unveiled

Posted on 29 August 2012 by VRS  |  Email |Print

The Federal Government on Tuesday moved closer to joining most of its OPEC partners in steering oil revenues into longer-term investment, announcing a top management team for its new Sovereign Wealth Fund (SWF).
Addressing journalists in Abuja, the Coordinating Minister of the Economy and Minister of Finance, Ngozi Okonjo-Iweala said the Federal Government has approved the appointment of Mahey Rasheed, a member of the board of First Bank, as the board chairman of the Nigerian Sovereign Investment Authority while Uche Orji, UBS executive and former JP Morgan head is to serve as the managing director of the institution………………………………………..Full Article: Source

Rasheed, Orji to lead sovereign wealth fund

Posted on 29 August 2012 by VRS  |  Email |Print

About 10 months after it announced the commencement of the Sovereign Wealth Fund (SWF) with $1 billion as seed capital, the Federal Government Tuesday unveiled the board of the Nigerian Sovereign Investment Authority (NSIA) with Alhaji Mahey Rasheed as Chairman and Uche Orji as its pioneer Managing Director.
While Rasheed is a former deputy governor of the Central Bank of Nigeria (CBN) and is presently a member of board of directors of First Bank Nigeria Plc, Orji, who previously served as managing director of leading investment bank in the United States of America – JP Morgan – is the Global Coordinator and Head, US Semiconductor Research as well as Co-Head of US Tech Sector Research at another prominent investment bank – USB………………………………………..Full Article: Source

Analysts see SWF heralding long-term savings

Posted on 29 August 2012 by VRS  |  Email |Print

Analysts advised the new board of the Sovereign Wealth Funds to set up operational structures and processes for the fund to achieve its objectives of building a savings base, enhancing the development of Nigerian infrastructure and providing stabilisation support in times of economic stress.
The advice comes on the heels of the appointment of the team, by Ngozi Okonjo-Iweala, minister of finance and co-ordinating minister of the economy, in Abuja. The appointment of the board will move Nigeria closer to joining most of its OPEC partners in steering oil revenues into longer-term investment………………………………………..Full Article: Source

Alabama Trust Fund not taking stand on $437mln vote

Posted on 29 August 2012 by VRS  |  Email |Print

The board that oversees the Alabama Trust Fund is not taking a position on whether voters should approve taking more than $437 million out of the fund to help operate state government.
The board chairman, Gov. Robert Bentley, said he did not ask the board to take a position during a meeting Thursday because the board manages the $2.3 billion fund, but it’s up to voters to decide the issue in a statewide referendum Sept. 18………………………………………..Full Article: Source

India: Panel calls for Rs 5,000-cr sovereign ‘fund of funds’

Posted on 28 August 2012 by VRS  |  Email |Print

Montek Singh AhluwaliaA Planning Commission appointed committee has recommended creation of a Rs 5,000-crore Sovereign ‘Fund of Funds’ to aid early stage venture funds. The committee has also suggested creating new source of capital for domestic venture capital.
The committee submitted its report with a presentation to Finance Minister P. Chidambaram and Deputy Chairman of the Planning Commission Montek Singh Ahluwalia. The recommendations of the Committee aim to create a ‘Vibrant Entrepreneurial Ecosystem in India.’ The committee has clubbed its recommendations under five themes………………………………………..Full Article: Source

Nigeria’s almost $1bln sovereign wealth fund opposed

Posted on 28 August 2012 by VRS  |  Email |Print

Ngozi Okonjo-IwealaNigeria plans to issue an international bond valued “anywhere from $500 million to $1 billion” by 2013 to develop the capacity of its oil and gas sector, the Co-ordinating Minister for the economy said. Dr Ngozi Okonjo-Iweala who is also the Finance Minister said Nigeria’s improved credit ratings by global rating agencies Fitch and Standard & Poors in 2011, increases international confidence in the country.
Also, global financial service provider JP Morgan said on August 15 it is considering listing Nigeria on its Government Bond Index – Emerging Markets (GBI-EM); a move that would increase Nigeria’s visibility and credibility on the international market with a possible increase in international funding………………………………………..Full Article: Source

Why inauguration of SWF management team was delayed

Posted on 28 August 2012 by VRS  |  Email |Print

The unusually long period spent on due diligence on the selected management team of the proposed Sovereign Wealth Fund (SWF) and their insistence on collecting letters of appointment before resuming work, were among the causes of the delay in the announcement of the team by the Federal Government, BusinessDay investigations have revealed.
Also, the strike action by the National Union of Petroleum and Natural Gas workers (NUPENG) which necessitated finance minister, Ngozi Okonjo-Iweala’s intervention, was responsible for the deferment of the inauguration of the SWF management team, from last week to this week………………………………………..Full Article: Source

Nigeria eyes $1bln new Eurobond

Posted on 28 August 2012 by VRS  |  Email |Print

The federal government is looking at issuing a Eurobond worth up to $1 billion next year to fund its power and gas sector reforms, taking advantage of the country’s likely inclusion in a JP Morgan emerging market index Minister of Finance, Ngozi Okonjo-Iweala said.
She also said that her long-term target was to scrap the country’s Excess Crude Account (ECA) and replace it with a planned sovereign wealth fund. “Ideally you would want to fold the two into one and that is our ultimate objective but for now I think the two in the short-medium term will run side-by-side until everybody gets comfortable with the sovereign wealth fund.”……………………………………….Full Article: Source

Roger J Kerr says SWFs will be less aggressive buyers of NZ Government bonds over coming months

Posted on 28 August 2012 by VRS  |  Email |Print

The local interest rate market will be focusing on international events this week, particularly the annual central banker’s bash at Jackson Hole, Wyoming where Fed boss Ben Bernanke will be delivering a major speech on “monetary policy since the GFC”.
My view is that Asian central banks and sovereign wealth funds will be somewhat less keen to be aggressive buyers of NZ Government bonds over coming months compared to the lumpy investment inflows from them witnessed earlier this year………………………………………..Full Article: Source

Eurozone needs a German sovereign wealth fund

Posted on 28 August 2012 by VRS  |  Email |Print

With the advent of the euro, exchange rate risk within the Economic and Monetary Union disappeared, and Germans were able to invest their excess savings in the common currency. As a result, German surpluses grew to become ingrained at 6 per cent of gross domestic product, more than a quarter of national savings.
However, German investors’ appetite for eurozone public and private debt has diminished sharply. Investment outside the eurozone is not an alternative, since a large part of German savings are intermediated by banks, which cannot take exchange rate risk………………………………………..Full Article: Source

GCC: High marks for regional sovereign wealth funds

Posted on 27 August 2012 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) of the six-nation Gulf Cooperation Council (GCC) states are substantial enough on the one hand and have positive implications for regional and global economies on the other. In other words, benefits of these SWFs are not confined to GCC economies, as these investments in the form of deposits, own ownership of securities issued by authorities in the US and others as well as investments are all over the world.
By one account, combined value of various SWFs of GCC authorities surpassed US$1.7 trillion at the start of the year. Certainly, this is a staggering figure by virtue of being some $600 billion above the monetary value of gross domestic product (GDP) of GCC states put together………………………………………..Full Article: Source

Qatar fund remains Xstrata buyer at current prices

Posted on 27 August 2012 by VRS  |  Email |Print

Qatar Holding is targeting a “strategic minority” stake in Xstrata even if a merger with Glencore does not go through and the fund is a buyer of the mining giant at current prices, sources familiar with the matter said.
The investment arm of the tiny Gulf state’s sovereign wealth fund has proved to be a stumbling block for commodities trader Glencore’s proposed $30 billion takeover of Xstrata, demanding improved terms and threatening to vote against the tie-up………………………………………..Full Article: Source

Qataris planning to double Xstrata stake

Posted on 27 August 2012 by VRS  |  Email |Print

Sovereign wealth fund Qatar Holding is set to more than double its stake in miner Xstrata if a planned £41billion merger with commodity trader Glencore fails.Qatar is thought to be planning to boost its 12 per cent stake in the miner to a quarter if shareholders reject the tie-up with Glencore in a vote on September 7.
Glencore , which already owns 34 per cent of Xstrata, is offering 2.8 new shares for every Xstrata share held to secure a deal it hopes will create a mining and trading powerhouse………………………………………..Full Article: Source

Nigeria: Sovereign wealth fund should be invested locally – CIS President

Posted on 27 August 2012 by VRS  |  Email |Print

Our position remains that the fund should be well utilised, especially the future generation aspect of the fund. The fund should be invested in the Nigerian market. It does not make sense for Nigeria to take funds out of its own economy and deposit such funds with investment banks abroad or for them to be invested abroad, because that would mean that they will be using the fund to develop such economies.
We should use our savings and our reserves to develop our own economy. In any case, we have heard of countries that even lost major part of their funds in the process of sending the funds abroad. Libya is a good example. I understand Libya lost about 80 per cent of its Sovereign Wealth Fund. We do not want to do that here in Nigeria, therefore, we should use our funds here to develop our economy………………………………………..Full Article: Source

Angola seeks global PR support for new sovereign wealth fund

Posted on 27 August 2012 by VRS  |  Email |Print

Angola is set to appoint global PR support for the oil-rich nation’s new sovereign wealth fund. The fund is expected to receive as much as $25bn upon launch, and is forecast to become one of the world’s five largest sovereign wealth funds according to current oil price trends, reaching $120bn by 2020.
Expected to launch in 2010, the fund has been repeatedly delayed according to reports in the financial press. However, the IMF’s Angolan loan program calls for the fund’s creation, to invest the country’s oil wealth abroad………………………………………..Full Article: Source

Thailand: Sovereign wealth fund not always the correct answer

Posted on 27 August 2012 by VRS  |  Email |Print

Establishing a sovereign wealth fund requires a country to have healthy revenue sources and a sound management structure, otherwise it could fail as a tool for addressing foreign capital inflows and seeking a higher rate of return on assets, says Christopher Balding of Peking University’s HSBC Business School.
Dr Balding, an expert in sovereign wealth funds, said they have created a question of whether they truly serve their original mandate, for in many cases the goal of long-term investment has been sidetracked by political aims………………………………………..Full Article: Source

Future Fund to buy Australian Infrastructure for A$2 bln

Posted on 24 August 2012 by VRS  |  Email |Print

David NealAustralia’s sovereign wealth fund agreed to buy Australian Infrastructure Fund (AIX) for A$2 billion ($2.1 billion), acquiring stakes in airports across the country. The A$77 billion Future Fund will pay A$3.22 for each security, Australian Infrastructure Fund said in a statement today, 22 percent higher than the stock’s closing price yesterday. The shares climbed 18 percent to A$3.12 at 10:20 a.m. in Sydney after the statement.
Australian Infrastructure Fund’s assets include stakes in Perth Airport, Melbourne Airport and Queensland Airports, according to the statement. There’s no guarantee a deal will be reached, the company said………………………………………..Full Article: Source

Australian Infrastructure Fund shares soar on Future Fund offer

Posted on 24 August 2012 by VRS  |  Email |Print

Shares in Australian Infrastructure Fund Ltd soared as much as 19 percent to a 5 year high on Friday after it said it had agreed to a A$2 billion ($2.10 billion) offer from Australia’s Future Fund.
Under the deal, the sovereign wealth fund will acquire all of AIX’s assets, including interests in several state airports. Shares in AIX were trading at A$3.15, up 18.9 percent, at 1235 GMT………………………………………..Full Article: Source

GIC agrees maiden secondaries sale

Posted on 24 August 2012 by VRS  |  Email |Print

The secondaries arm of Credit Suisse has won the race to buy a portfolio of private equity interests from GIC, understood to be the first to be sold by the Singaporean sovereign wealth fund.
CS Strategic Partners has sought off competition from a number of other secondaries firms to agree to buy the portfolio, after GIC made the decision to explore a sale of a number of its private equity fund interests last December, according to two people familiar with the matter………………………………………..Full Article: Source

China investment fund sells stake to Qatar fund

Posted on 24 August 2012 by VRS  |  Email |Print

A state-owned Chinese investment company says it has sold a 22.2 percent stake to an arm of Qatar’s sovereign wealth fund. Citic Capital Holdings Ltd.’s deal with Qatar Holding LLC expands Beijing’s financial ties with Middle Eastern economies.
Citic Capital CEO Yichen Zhang said the company hopes the relationship with Qatar Holding will expand its investment opportunities abroad………………………………………..Full Article: Source

India: Fertilizer: Jena moots sovereign wealth fund

Posted on 24 August 2012 by VRS  |  Email |Print

The government has told Parliament it is creating a sovereign wealth fund to buy fertiliser and energy assets abroad. Union Minister of State for Chemicals and Fertilisers Srikant Jena said the govt is formulating a concept paper on the subject. The paper is being worked out in close consultation with various ministries including the planning commission, he added.
According to the minister, his ministry and the department of economic affairs have already been considering the matter. The working group on fertilisers set up by the planning commission had earlier suggested that the country should seriously consider buying fertiliser mineral assets abroad to be able to supply the deficiency in the domestic supply, the minister added………………………………………..Full Article: Source

Rwanda : Kagame leads Rwandans to setting up sovereign fund (Pictures)

Posted on 24 August 2012 by VRS  |  Email |Print

At the launch of the Agaciro Development on Thursday, presided over by President Paul Kagame, Rwf 1.2billion (US$2million) was pledged on the first day. We bring you photos of what transpired at the history-changing event which took place 23 August 2012 at Hotel Serena, Kigali.……………………………………….Full Article: Source

Qatar fund raises stake in Xstrata

Posted on 24 August 2012 by VRS  |  Email |Print

The battle lines are hardening in the fight over control for the mining company Xstrata. Qatar Holding, the sovereign wealth fund of the Persian Gulf nation, has increased its stake in the company to above 12 percent from 11.95 percent, buying nearly £24 million ($38 million) of shares, as it continues to oppose the planned $30 billion takeover of Xstrata by the commodities trading company Glencore International.
The move comes days after Ivan Glasenberg, Glencore’s chief executive, insisted that his company would not pay a higher price for Xstrata and could walk away from the deal. Qatar Holding, the second-largest Xstrata shareholder behind Glencore, has been steadily amassing a larger stake………………………………………..Full Article: Source

Alabama Trust Fund board members take no position on plan to transfer $437 mln

Posted on 24 August 2012 by VRS  |  Email |Print

Gov. Robert Bentley said today he didn’t ask the board that oversees the Alabama Trust Fund to take a position on a plan to transfer more than $437 million from the trust fund to the state General Fund.
“I did not feel that it was necessary for the board to take a position on that,” said Bentley, who chairs the nine-member board. “It’s really not their job. Their job is to invest the money and get as much money as possible from the $2.3 billion that we have in that fund,” Bentley said in an interview………………………………………..Full Article: Source

CIC, GIC jointly invest $1.3bln in Cheniere’s LNG plant

Posted on 23 August 2012 by VRS  |  Email |Print

China sovereign fund CIC and Government of Singapore Investment Corp have invested around US$500 million (S$628 million) each in US-based Cheniere Energy Partners Ltd’s planned liquefied natural gas (LNG) export plant, a source familiar with the matter said.
Houston-based Cheniere, which has regulatory approval to build the United States’ first LNG export plant in a generation, has been seeking funds to start construction………………………………………..Full Article: Source

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Qatar SWF buys 22 pct stake in China investment firm CITIC Capital

Posted on 23 August 2012 by VRS  |  Email |Print

A unit of Qatar’s sovereign wealth fund has bought a 22 percent stake in CITIC Capital Holdings, linking one of the Middle East’s most powerful investors with one of China’s top investment funds.
While the sum Qatar is paying for the stake is likely in the tens of millions of dollars, the partnership could have a big impact globally, given the hundreds of billions of dollars in cash each fund has access to. CITIC manages $4.6 billion, but is partly owned by CIC, China’s own sovereign wealth fund, which manages $482 billion………………………………………..Full Article: Source

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August 2012
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