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Sovereign Wealth Funds Briefing - Archive | September, 2012

KazMunaiGaz pays $947 mln dividend to sovereign wealth fund

Posted on 28 September 2012 by VRS  |  Email |Print

KazMunaiGaz National Co., Kazakhstan’s state energy producer, paid 142 billion tenge ($947 million) in 2011 dividends to the sovereign wealth fund Samruk- Kazyna, its owner.
KazMunaiGaz paid 293.35 tenge a share on Sept. 14, the Astana-based oil and gas producer said today in a statement on the Kazakhstan Stock Exchange website. The company’s 484 million ordinary shares are all held by Samruk-Kazyna, according to the bourse’s website………………………………………..Full Article: Source

Slovenia set to approve creation of a sovereign-wealth fund

Posted on 28 September 2012 by VRS  |  Email |Print

Gunter DeuberSlovenian lawmakers probably will approve the creation of a sovereign-wealth fund and pass legislation on bank stability as the former Yugoslav republic intensifies efforts to avoid an international rescue.
Lawmakers gather in Parliament today to approve creation of a wealth fund designed to manage assets valued at more than 10 billion euros ($12.8 billion). They will also vote on a plan to exchange as much as 4 billion euros worth of state-backed bonds for banks’ non-performing loans, while banks would get an additional capital boost of as much as 1 billion euros from the government, according to Finance Minister Janez Sustersic………………………………………..Full Article: Source

China sovereign wealth fund sees 3.9pct annual return

Posted on 28 September 2012 by VRS  |  Email |Print

The China Investment Corporation (CIC), the nation’s sovereign wealth fund, announced Thursday that the annualized yield of its overseas investment stood at 3.9 percent since it was founded five years ago.
The company said the result showed that the corporation has maintained and increased the value of the nation’s foreign exchange reserves amid fluctuating global financial markets………………………………………..Full Article: Source

China’s sovereign wealth fund space set for shake up

Posted on 28 September 2012 by VRS  |  Email |Print

China’s sovereign wealth funds are due to undergo a host of changes, as they continue to strengthen their offshore presence. Against growing headwinds, China Investment Corp, the National Council for Social Security Fund and the State Administration of Foreign Exchange have each managed to maintain positive growth of their domestic assets since 2009, and all three have cemented positions among the top fifteen SWFs globally in terms of assets.
While the three major funds have undergone rapid development in recent years, diversifying their onshore allocations and expanding their presence and investment spread internationally, Shanghai-based Z-Ben Advisors says in its China Sovereign Wealth Funds Report 2012, that a slew of more fundamental changes are on the horizon………………………………………..Full Article: Source

Temasek could make a tidy profit

Posted on 28 September 2012 by VRS  |  Email |Print

Temasek Holdings would likely rake in more than S$2 billion in profit if it sold its 18 per cent stake in Britain’s Standard Chartered Bank at current prices, a tidy return on an investment which had come in for some criticism.
The government-owned company, which has assets of around S$200 billion, initially got into StanChart in 2006 by taking over the entire stake, amounting to just under 12 per cent, owned by the late hotel and banking billionaire Khoo Teck Puat for some S$6.5 billion………………………………………..Full Article: Source

Province wants to know how $16 bln trust fund should be used

Posted on 28 September 2012 by VRS  |  Email |Print

How should Alberta spend its 30-year-old $16-billion Alberta Heritage Savings Trust Fund? That’s the question the government is asking Albertans to answer at a public meeting on Oct. 3.
“It is important that Albertans take the time to be part of conversations affecting Alberta’s financial future,” Dave Quest, MLA for Strathcona-Sherwood Park and chair of the Standing Committee on the Alberta Heritage Savings Trust Fund, said in a statement. “At the upcoming public meeting we’ll be seeking direction from participants as to what the next generation of the Heritage Fund should look like.”……………………………………….Full Article: Source

London firm overcharged pensions reserve fund by over €3m

Posted on 28 September 2012 by VRS  |  Email |Print

The National Pensions Reserve Fund was overcharged of more than €3 million by London-based financial services firm State Street Bank Europe, the report of the Comptroller and Auditor General has revealed.
The State body, which comes under the remit of the National Treasury Management Agency, discovered the overcharging offence, which took place between February and May last year, last October. It has since recouped the €3.2 million owed to it. The NTMA learned of the incident after reading media reports of the departure of two SSBE executives in October………………………………………..Full Article: Source

State Oil Fund to determine priorities for real estate investments in Turkey

Posted on 28 September 2012 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) is starting to invest in real estate in Turkey, a Turkish government source reported to Trend. “The State Oil Fund is currently considering proposals. Commercial office property in the country’s private sector is particularly preferred,” the source said.
He said SOFAZ is considering the purchase of property in Istanbul. However, the expansion of investments in property located in other Turkish cities is also possible in future………………………………………..Full Article: Source

Sparx to start Japan property fund on sovereign-fund mandate

Posted on 27 September 2012 by VRS  |  Email |Print

Shuhei AbeSparx Group Co., a Japanese asset management company, will start a fund that will invest in the nation’s residential properties after receiving money from a sovereign wealth fund in the Middle East.
Sparx will start the fund with AD Investment Management Co., which manages a real estate investment trust, on Sept. 28 with initial capital of about 9 billion yen ($116 million), said Sparx Chief Executive Officer Shuhei Abe. The fund, which will last for five years, has a maximum capacity of 40 billion yen and will invest in six apartment developments in Tokyo and Nagoya, he said………………………………………..Full Article: Source

Qatar SWF dismisses talk of Brazilian gold miner bid

Posted on 27 September 2012 by VRS  |  Email |Print

Eike BatistaThe investment arm of Qatar’s sovereign wealth fund is refuting media reports that it is in talks to buy a major stake in a Brazilian gold producer. Qatar Holding said in a rare denial Wednesday that it has never been in discussions with Brazil’s AUX about an acquisition. It says there is “no foundation, past or present, to such speculation.”
AUX is controlled by billionaire Eike Batista, Brazil’s richest man. Media reports said the mining company was negotiating to sell a 49 percent stake to Qatar Holding for about $2 billion. Qatar Holding is the main investment arm of the natural gas-rich Gulf state Qatar’s sovereign wealth fund. It has shown a growing interest in commodities, and has built a large stake in Anglo-Swiss mining group Xstrata………………………………………..Full Article: Source

Nigeria: Excess Crude Account - Governors give FG fresh condition for settlement

Posted on 27 September 2012 by VRS  |  Email |Print

Governors of the 36 states of the federation, yesterday, returned to the Supreme Court to challenge what they termed “massive illegal deductions” from the Excess Crude Account by the Federal Government.
The governors are, among other things, contending that “the establishment and operation of, and unilateral deductions from the Excess Crude Account during the period 2004-2007, were inconsistent with the provisions of section 162 of the 1999 Constitution of the Federal Republic of Nigeria.”……………………………………….Full Article: Source

SWF: States, FG know fate November

Posted on 27 September 2012 by VRS  |  Email |Print

The Supreme Court yesterday fixed Nov. 21 for the federal and state governments to brief it on the out-of-court settlement option over the one billion dollars (N5.5 trillion) Sovereign Wealth Funds controversy. Justice Christopher Chukwuma-Ene gave the date after parties had briefed the court on the latest steps toward amicable settlement of the matter.
“The court shall for the last time indulge parties with the application for adjournment filed by the defendant. This matter is, therefore, adjourned to Nov. 21 for parties to brief the court on the finality of the settlement option. The court shall, however, commence hearing of the case if agreement was not reached on that date,’’ he said………………………………………..Full Article: Source

Temasek not looking to offload Standard Chartered stake

Posted on 27 September 2012 by VRS  |  Email |Print

Temasek is not actively seeking to exit Standard Chartered but the Singapore sovereign wealth fund has received proposals from buyers looking to purchase its stake in the British bank, says a source close to the fund.
The well-placed source said, contrary to media speculation, the group had never placed a strict ‘not for sale’ sign over its 18 percent stake in the emerging markets-focused bank………………………………………..Full Article: Source

Temasek sells SingTel stake for USD1 bln

Posted on 27 September 2012 by VRS  |  Email |Print

In one of the largest block trades in Asia this year, Temasek Holdings on September 25 raised S$1.28 billion (US$1.04 billion) from a selldown of its stake in Singapore Telecommunications (SingTel).
The Singapore state’s investment company sold 400 million shares in SingTel at S$3.20 each, which represents a discount of 3.9% to the stock’s close on September 25. The offering was priced at the lower end of S$3.20 to S$3.25 initial guidance. The deal was launched with an option of additional 100 million shares, which did not get exercised………………………………………..Full Article: Source

Chinese investment essential, Turnbull tells business forum

Posted on 27 September 2012 by VRS  |  Email |Print

Malcolm Turnbull has defended foreign investment as essential to Australian agriculture as the Coalition debates a Chinese buy-in to Tasmania’s dairy industry. The former Liberal leader has also urged China to be more patient about anxieties over investments by foreign state owned corporations - even offering advice for how Beijing can improve its image.
The China Investment Corporation is negotiating for a stake in Australia’s largest dairy operation, the Van Diemen’s Land Company. The proposal follows hard on the heels of fierce complaints by the Nationals - Senator Barnaby Joyce in particular - over a Chinese bid for massive cotton farm Cubbie Station………………………………………..Full Article: Source

Russia restructures its sovereign funds, gets more aggressive

Posted on 27 September 2012 by VRS  |  Email |Print

Earlier this month, we learned that Russia would be launching a new sovereign fund… to replace two of its existing sovereign wealth funds, which, you’ll recall, originally replaced a now defunct sovereign fund… which itself was only set up in 2004. Confused? Me too. So let’s pause here for a bit of history and context.
In 1998, Russia had a major financial crisis. And, as was the case with the Asian financial crisis of 1997, the Russian crisis served as the policy “spark” that led to reserve accumulation (although the huge inflows of resource revenues were probably as big a driver as the 1998 crisis)………………………………………..Full Article: Source

Temasek to reduce SingTel stake

Posted on 26 September 2012 by VRS  |  Email |Print

Singapore state-investment firm Temasek Holdings Pte. Ltd. is seeking to raise up to US$1.34 billion through the sale of shares in Singapore Telecommunications Ltd., part of a broader effort by the sovereign wealth fund to shift its investments toward emerging markets.
Temasek, the world’s ninth-largest state investment firm, according to the Sovereign Wealth Fund Institute, has been expanding its footprint in China and shelling out for energy and resources assets, and away from Singapore and mature-market financial services. It also wants to book gains from its previous investments………………………………………..Full Article: Source

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Who might buy Temasek’s stake in StanChart?

Posted on 26 September 2012 by VRS  |  Email |Print

The rekindling of the idea that Temasek, the Singapore sovereign wealth fund, may be looking to dispose of its 18% holding in Standard Chartered is sure to reawaken speculation over who could carry out a potential takeover of the emerging markets-focused bank. However, there is one sizeable issue: a lack of natural buyers.
The Financial Times this morning reported that Temasek had sounded out potential buyers for its shares in Standard Chartered, though it added that there were no live discussions with any potential buyers………………………………………..Full Article: Source

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StanChart down as Singapore fund mulls sale of its 18pct stake

Posted on 26 September 2012 by VRS  |  Email |Print

It was perhaps somewhere under the flashing lights and fireworks of the Singapore F1 Grand Prix last weekend that a hushed conversation about the fate of emerging-markets bank Standard Chartered took place. But maybe the conversation wasn’t quite hushed enough. It’s emerged that Singapore’s state-owned investment fund Temasek has started talking to buyers about selling its £6 billion, 18% stake in the FTSE 100 bank.
It could herald more than just a stake-sale. Cormac Leech, banking analyst at Liberum Capital, reckons Standard Chartered, whose logoed-skyscraper looms large over Singapore city centre, might have a takeover on its own horizon………………………………………..Full Article: Source

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CIC says investors need clarity on Canada takeover rules

Posted on 26 September 2012 by VRS  |  Email |Print

Investors need clarity on Canada’s foreign takeover rules, said Felix Chee, China Investment Corp.’s chief representative in Canada. Chee told a conference in Ottawa today that the lack of clarity on foreign investment rules benefits the Canadian government. Canada is reviewing the $15.1 billion bid by Cnooc Ltd. for Nexen Inc. (NXY), a Calgary-based energy producer.
Chee said Cnooc’s 100 percent bid for Nexen makes approval more difficult. Canada reviews most foreign takeovers to make sure they provide a net benefit to the country………………………………………..Full Article: Source

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CIC’s space ambitions remain grounded

Posted on 26 September 2012 by VRS  |  Email |Print

China Investment Corp. (CIC) is mulling how to make the most of its recent acquisition of a minority stake in a leading European satellite operator. But whatever the move is, experts say, it’s unlikely to result in a technology transfer that China craves.
The company is now the third-largest shareholder of Eutelsat Communications SA. In June, it bought 7 percent of the world’s third-largest satellite operator for €385.2 million from Spanish infrastructure company Abertis, which still holds 8.35 percent of Eutelsat and is the second-largest shareholder………………………………………..Full Article: Source

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CIC likely to increase alternatives allocation

Posted on 26 September 2012 by VRS  |  Email |Print

One of China’s largest sovereign wealth funds is likely to increase its private equity and alternatives allocation to as much as 70% over the next decade and take a more strategic approach to investments, according to new research.
China Investment Corporation, which currently invests about a quarter of its portfolio in private equity and alternatives, is likely to raise that threshold significantly in the coming years, according to a report published on Tuesday by consultancy Z-Ben Advisors………………………………………..Full Article: Source

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NZ Superannuation Fund excludes four firms from portfolio

Posted on 26 September 2012 by VRS  |  Email |Print

New Zealand Superannuation Fund has excluded four companies from its $19 billion investment portfolio, following severe breaches of its responsible investment standards. The firms that were excluded from the fund’s portfolio include Freeport-McMoRan, KBR, Tokyo Electric Power Company and Zijin Mining Group.
NZ Superannuation Fund said this decision were based on information from its specialist screening agency which identified where the companies had breached global standards of good corporate behaviour such as the UN Global Compact………………………………………..Full Article: Source

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PNG LNG project to bankroll sovereign wealth fund

Posted on 26 September 2012 by VRS  |  Email |Print

Revenue from the LNG project will be allocated to social and economic initiatives, according to the PNG LNG Quarterly Report. It said revenue generated from the project would go towards two funds created under the Sovereign Wealth Fund (SWF) that would support economic and social initiatives and also stabilise fluctuations in revenue income from resource projects.
“The Papua New Guinea government is establishing a stabilisation fund and a development fund under the Organic Law on the Sovereign Wealth Fund that was passed by the Papua New Guinea parliament in February 2012,” the report said………………………………………..Full Article: Source

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Providence equity said to sell stake in firm to investors

Posted on 26 September 2012 by VRS  |  Email |Print

Providence Equity Partners Inc., the buyout firm with holdings in Univision Communications Inc. and the cable-television network of the New York Yankees, sold a minority stake to Florida’s state pension system and a sovereign-wealth fund, said a person with knowledge of the move.
Proceeds from the sale, which will give the two investors less than 10 percent in the company, will be used to expand the business, said the person, who asked not to be identified because the transaction was private………………………………………..Full Article: Source

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Mumtalakat prices sukuk

Posted on 26 September 2012 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund Mumtalakat priced a 300 million ringgit ($97.7m) five-year sukuk on September 7 via Standard Chartered and CIMB Islamic. The murabaha-structured deal is the first by the AA2 (Ram) rated borrower in the ringgit market and has been issued off its three billion ringgit sukuk programme.
Mumtalakat went on investor meetings in the summer but held back from issuing because basis swaps were not favourable for Gulf borrowers at the time………………………………………..Full Article: Source

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SWF: S/Court gives FG, states time for settlement

Posted on 26 September 2012 by VRS  |  Email |Print

The Supreme Court, on Tuesday, gave the Federal Government and the 36 state governments more time to resolve the legal tussle which arose from the decision of the Federal Government to transfer the sum of $1 billion from the Excess Crude Account to the recently created Sovereign Wealth Fund.
The apex court consequently fixed November 22 for reports of settlement. The 36 states of the federation had, through their counsel, Adegboyega Awomolo SAN, instituted a suit challenging the legality of the Federal Government’s action………………………………………..Full Article: Source

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Excess Crude Account: States offer new settlement terms

Posted on 26 September 2012 by VRS  |  Email |Print

States are demanding a sweeping change in the way the Federal Government has been handling monies accruing to the central purse as part of their condition to drop their suit challenging the legality of the Excess Crude Account (ECA).
They have proposed new conditions to resolve the lingering dispute between them and the Federal Government over illegal deductions from the Federation Account………………………………………..Full Article: Source

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SWFs: The new geopolitical power tools, says MIT scholar

Posted on 25 September 2012 by VRS  |  Email |Print

The $5 trillion held in sovereign wealth funds (SWFs) worldwide is more than just resource riches and future social services, according to the Massachusetts Institute of Technology’s Shannon Murphy. More and more, it’s also political power. Sovereign wealth funds “provide the ‘carrot’ of sizable, patient capital, and wield a ‘stick’ via their ability to serve as investors of last resort,” Murphy writes.
“This has resulted in sovereign wealth funds becoming, in some ways, a proxy for power/influence at home and abroad. The ability of non-OECD [Organisation for Economic Co-operation and Development] states to leverage SWF resources to earn excess financial return and accrue global influence, facilitate domestic economic development or meet the long term needs of citizens is reorienting relationships.”……………………………………….Full Article: Source

Temasek said to mull sale of StanChart stake

Posted on 25 September 2012 by VRS  |  Email |Print

Singapore state investment company Temasek Holdings Pte. Ltd. has sounded out potential buyers for its GBP6 billion ($9.7 billion) stake in Standard Chartered PLC.
The fund had been judging buyer interest for its 18% shareholding in recent months, according to the report. The people also stressed that there were no live discussions with any potential buyer, and Temasek and Standard Chartered declined to comment, the report said………………………………………..Full Article: Source

China’s wealth fund keen on NZ council-owned Tasmanian farms

Posted on 25 September 2012 by VRS  |  Email |Print

China Investment Corp, the $US200 billion sovereign wealth fund, is in talks to invest in Van Diemen’s Land Co as the New Plymouth District Council-owned dairy farmer seeks to raise up to $A180 million to ramp up production.
A tie-up with the Chinese fund would come after Tasmanian Premier Lara Giddings returned from a trade mission that included pitching agriculture and mining investment opportunities to China Investment Corp………………………………………..Full Article: Source

Australian state courts dairy investment from China’s CIC

Posted on 25 September 2012 by VRS  |  Email |Print

Australia’s island state of Tasmania is courting dairy investments from China’s giant sovereign wealth fund, China Investment Corp, as the world’s most populous country looks overseas to secure food supplies.
Tasmania’s move comes after Canberra last month approved a Chinese company’s bid for a giant cotton farm, which ignited fresh debate about foreign investment in Australian agriculture………………………………………..Full Article: Source

Qatar in talks to buy Batista’s $2 bln AUX stake

Posted on 25 September 2012 by VRS  |  Email |Print

Qatar Holding, the investment arm of the Gulf state’s sovereign fund, is in advanced talks to buy a 49-percent stake in Brazilian billionaire Eike Batista’s gold company AUX for about $2 billion, three banking sources said.
Batista, Brazil’s richest man, said in June that he expected to sell the AUX stake, which owns gold mining rights in Colombia, for about $2 billion by September………………………………………..Full Article: Source

Batista to sell 49pct AUX stake to Qatar for $2 bln, Veja says

Posted on 24 September 2012 by VRS  |  Email |Print

Brazilian billionaire Eike Batista will announce soon the sale of a 49 percent stake in his AUX gold business to a sovereign wealth fund in Qatar, Veja magazine reported, without saying how it obtained the information.
Bloomberg reported in June that Batista was planning to sell a stake AUX to the Qatar Investment Authority for about $2 billion, citing a person with knowledge of the transaction………………………………………..Full Article: Source

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China fund targets dairy industry

Posted on 24 September 2012 by VRS  |  Email |Print

China’s giant sovereign wealth fund is looking to make its first significant investment in the Australian dairy industry, as it tries to lock up food ­supplies for its growing middle class. In a potential test case for foreign investment laws, China Investment Corp, which is estimated to have $US190 billion to invest outside its home market, sent four executives to Tasmania this month.
They inspected two large dairy operations in the state’s north which have a combined value of more than $200 million and significant capacity for expansion………………………………………..Full Article: Source

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China seeking stake in Australian dairy

Posted on 24 September 2012 by VRS  |  Email |Print

China’s sovereign wealth fund is negotiating to seek a stake in Australia’s largest dairying operation, the Van Diemen’s Land Company, which operates in Tasmania. The enterprise, which is in the north-west of the state, has 25,000 dairy cows and 6500 beef cattle and some 19,000 hectares in 27 farming operations, most of them dairying. It employs about 160 people.
It is now proposing to double its production and its workforce, with a $180 million investment. It is understood that the sovereign wealth fund has approached the Foreign Investment Review Board for preliminary consultations, prior to submitting a formal application if a deal is sealed………………………………………..Full Article: Source

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HKMA emerges as possible investor in ailing CVC Capital

Posted on 24 September 2012 by VRS  |  Email |Print

The Hong Kong Monetary Authority has emerged as a possible investor in troubled CVC Capital Partners, which is said to have raised money by selling a 10% stake to a trio of investors including Singaporean and Kuwaiti sovereigns.
If true, it would mark a notable private equity investment by the HKMA, which had reserved $11 billion out of its $300 billion exchange fund for alternative investments in the year ending December 2011. Additionally it brings into question the selection process by the authority’s Exchange Fund for alternative investments and the transparency of its investments in the asset class………………………………………..Full Article: Source

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NZ Super Fund, Morrison in airport bid

Posted on 24 September 2012 by VRS  |  Email |Print

The $19.7 billion New Zealand Superannuation Fund and Wellington-based asset manager Morrison Co have teamed up to bid for London’s Stansted airport, the Telegraph newspaper reported on its website.
The UK’s third largest airport is being put up for sale by BAA Ltd under pressure from the UK’s Competition Commission, which has already forced the airport investor to sell the Gatwick and Edinburgh airports………………………………………..Full Article: Source

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Nigerian governors to block oil wealth fund in court

Posted on 24 September 2012 by VRS  |  Email |Print

Nigeria’s state governors vowed on Thursday to go to court to stop the government putting oil revenues into a sovereign wealth fund. Africa’s top crude producer has been moving closer to joining its OPEC partners in creating a sovereign wealth fund for long-term investment of its oil cash.
The governors, who enjoy luxurious lifestyles and wield huge patronage, had been opposed to the fund because they feared it would reduce their share of the oil money………………………………………..Full Article: Source

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Nigerian state governors to return to court against wealth fund

Posted on 24 September 2012 by VRS  |  Email |Print

The governors of Nigeria’s 36 states will go ahead with their law suit challenging the legal standing of the country’s $1 billion sovereign wealth fund.
The operation of the fund by the federal government violates a constitutional provision that all government revenue must be shared among that states and the center, the governors said……………………………………….Full Article: Source

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Sovereign wealth fund not in contention - Okonjo-Iweala

Posted on 24 September 2012 by VRS  |  Email |Print

The Minister of Finance, Dr Ngozi Okonjo-Iweala, has said that the establishment of the $1 billion Sovereign Wealth Fund (SWF) is not in contention since it received the support of the 36 state governors.
Okonjo-Iweala made the clarification to reporters in Abuja on Friday following the Nigeria Governors Forum’s (NGF) decision to return to court over deductions from the Excess Crude Account for subsidy payments………………………………………..Full Article: Source

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Ireland’s ‘bad bank’ seeks sovereign funds

Posted on 24 September 2012 by VRS  |  Email |Print

Ireland’s “bad bank” plans to attract at least €500 million (Dh2.38 billion) to create a giant fund aimed at sovereign investors betting on a property recovery. The bad bank, otherwise known as the National Asset Management Agency (Nama), acquired €74bn in loans from five of the country’s largest lenders in 2009 as excessive lending to the property sector threatened to trigger the collapse of the entire Irish banking system.
Now the agency that controls assets worldwide, from terraced houses in the capital to huge developments across the country and others abroad, is pursuing regional investors as it bids to maximise returns to the government and replenish state coffers………………………………………..Full Article: Source

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The rise of sovereign wealth funds as a new category of investors

Posted on 24 September 2012 by VRS  |  Email |Print

Although the inflow of money from state-controlled investors was initially viewed with scepticism, many now hope that SWFs will help to overcome the slowdown in global M&A activities and more generally contribute to the economic recovery.
For financial service providers, such as investment bank and private equity houses, this development presents opportunities, but it also raises specific governance and compliance challenges, as illustrated by recent controversies surrounding the Libyan Investment Authority………………………………………..Full Article: Source

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Nigerian governors to block oil wealth fund in court

Posted on 21 September 2012 by VRS  |  Email |Print

Ngozi Okonjo-IwealaNigeria’s state governors vowed on Thursday to go to court to stop the government putting oil revenues into a sovereign wealth fund. Africa’s top crude producer has been moving closer to joining its OPEC partners in creating a sovereign wealth fund for long-term investment of its oil cash.
The governors, who enjoy luxurious lifestyles and wield huge patronage, had been opposed to the fund because they feared it would reduce their share of the oil money………………………………………..Full Article: Source

Nigeria: President,governors in crucial meeting

Posted on 21 September 2012 by VRS  |  Email |Print

Goodluck JonathanPresident Goodluck Jonathan last night engaged state governors, under the platform of Nigeria Governors’ Forum, in a strategic meeting, as part of his ongoing efforts to resolve issues that have been raised by the state governors. These include illegal deductions from the federation account, the Sovereign Wealth Fund, onshore/offshore dichotomy and others.
The governors of the 36 states had dragged President Jonathan to the Supreme Court seeking legal redress against the federal government over what they called “illegal deductions” from the federation account. The governors had disclosed that the deductions, which the federal government was making, were specifically to offset oil subsidy payments, Excess Crude Account and other unconstitutional withdrawals……………………………………….Full Article: Source

SOFAZ plans Russian ruble purchase

Posted on 21 September 2012 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) will purchase Russian rubles until the end of the year, the executive director of SOFAZ Shakhmar Movsumov reported to the journalists on Wednesday.
To minimize risks, negotiations are being carried out with a number of Russian banks. Specific information on the purchase will be given upon reaching agreement. Movsumov said that the Fund already purchased an undisclosed amount of Australian dollars and Turkish liras………………………………………..Full Article: Source

Sovereign wealth fund closing in on Meadowhall deal

Posted on 21 September 2012 by VRS  |  Email |Print

Norway’s sovereign wealth fund is set to complete the £750m purchase of a 50% stake in the Meadowhall shopping centre in Sheffield, leaving British Land with its 50% ownership.
According to Property Week, and in a deal that could be announced as early as next week, Norges Bank Investment Management, which manages the £376bn sovereign wealth fund, and British Land have agreed terms of a joint venture that will own the 1.4m sq ft mall on a 50:50 basis………………………………………..Full Article: Source

British Land shelves Meadowhall mall stake sale

Posted on 21 September 2012 by VRS  |  Email |Print

British Land has shelved plans to sell part of its stake in the Meadowhall shopping mall in Sheffield, opting instead to retain its full 50 percent because of the centre’s strong performance over the past year, two sources familiar with the deal said.
British Land had put the holding up for sale to capitalise on strong demand for shopping mall assets, but has instead opted to form an equal partnership with Norway’s sovereign wealth fund which is buying half of the centre………………………………………..Full Article: Source

Thomas Properties Group, CalSTRS invest $859 mln in Austin Texas office portfolio

Posted on 21 September 2012 by VRS  |  Email |Print

Los Angeles-based Thomas Properties Group, Inc. and the California State Teachers’ Retirement System together purchased an eight-building, three-million-square-foot portfolio of office properties in downtown and suburban Austin, Texas. The purchase price was $859 million, which is subject to prorations and adjustments.
The portfolio was purchased from TPG-Austin Portfolio Syndication Partners, a venture among Lehman Brothers Holdings Inc., an off-shore sovereign wealth fund and TPG/CalSTRS LLC………………………………………..Full Article: Source

Private equity giant CVC sells stake to KIA, GIC

Posted on 21 September 2012 by VRS  |  Email |Print

UK-based private equity firm CVC Capital Partners has sold a 10% stake of the firm to a group of powerful, private investors, including the Kuwait Investment Authority (KIA), the Government Investment Corporation of Singapore (GIC), and an unnamed Asian fund.
CVC Capital — which manages capital on behalf of around 300 institutional, governmental and private investors worldwide — was formerly the private-equity business for Citicorp, now Citigroup Inc. It bought about 63% of Formula One in 2005 and 2006………………………………………..Full Article: Source

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