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Sovereign Wealth Funds Briefing - Archive | December, 2012

China Investment Corporation eyes BC forests, spells FIPA danger

Posted on 14 December 2012 by VRS  |  Email |Print

The China Investment Corporation (ICI), one of the world’s largest sovereign wealth funds, is set to become a powerful landowner in British Columbia if a $100 million deal with Island Timberlands, the second-largest owner of private forests in the province, goes through.
The Ancient Forest Alliance (AFA) is concerned that closure of the deal, especially in light of Canada’s pending ratification of the Foreign Investment Protection and Promotion Agreement (FIPA), could have negative consequences for protection of BC’s treasured old-growth forests, forestry jobs, and the rights of First Nations, according to an AFA press release………………………………………..Full Article: Source

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Khazanah sells TNB shares for RM407mln via placement

Posted on 14 December 2012 by VRS  |  Email |Print

State-owned sovereign fund Khazanah Nasional Bhd has sold 60 million shares worth RM406.8 million in Tenaga Nasional Bhd (TNB) via a private placement exercise. The sale, seen as part of the sovereign fund’s divestment in government-linked companies, was managed by placement agents – CIMB Group Holdings Bhd and Deutsche Bank.
The shares sold represented 1.1% of TNB’s paid-up capital. Transacted at RM6.78 per share, the price represents a discount of 2% of TNB’s closing price on Tuesday. The shares closed three sen higher at RM6.95………………………………………..Full Article: Source

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SOFAZ executive director meets with USA delegation

Posted on 14 December 2012 by VRS  |  Email |Print

Shahmar Movsumov, the Executive Director of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) met with USA delegation headed by Texas Comptroller of Public Accounts, Susan Combs on December 13, 2012.
Mr. Movsumov briefed the guests on the Fund’s activity, management of its assets, Sovereign Wealth Funds, major projects financed by the Fund. He talked about SOFAZ’s leading role in implementation of the Extractive Industries Transparency Initiative (EITI)………………………………………..Full Article: Source

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NZ Super drops firms over Israel-Palestine positions

Posted on 13 December 2012 by VRS  |  Email |Print

New Zealand Superannuation Fund has excluded three companies from its US$17 billion portfolio for their roles in the Israel-Palestine conflict. The sovereign wealth fund passively held shares of Africa Israel Investments, its subsidiary construction company, Danya Cebus, and Shikun & Binui in its global equity portfolio. The Israel-based holding/construction companies transgressed NZ Super’s relatively strict responsible investing policy and cannot reenter the portfolio until in they are compliance.
The firms were excluded for “their involvement in constructing Israeli settlements…and a separation barrier in the Occupied Palestinian Territories,” according to a statement from NZ Super………………………………………..Full Article: Source

Nigeria: Experts want SWF incorporated into budget

Posted on 13 December 2012 by VRS  |  Email |Print

Experts that converged in Abuja Tuesday to x-ray the nation’s economic indices canvassed the integration of the Sovereign Wealth Fund (SWF) into the annual budget as well as an aggressive diversification of the economy with non-oil export as the fulcrum.
The forum was the fourth Economic Policy and Fiscal Strategy seminar organised by the Centre for the Study of the Economies of Africa (CSEA)………………………………………..Full Article: Source

Nigerian governors demand $1 bln from Excess Crude Account

Posted on 13 December 2012 by VRS  |  Email |Print

Nigeria’s 36 state governors want a $1 billion payout from the country’s crude oil savings account to fund projects, said Sokoto state Deputy Governor Mukhtar Shagari.
The governors want the federal government to disburse “at least about $1 billion from the excess crude account to help the state governments to meet up with their financial responsibilities as the year is coming to an end, because most of the states have contracts that are ongoing and are very important to the people of this country,” Shagari, who spoke on behalf of the governors, said today in an e-mailed statement from Abuja, the capital………………………………………..Full Article: Source

CIC doubles Goodman play

Posted on 13 December 2012 by VRS  |  Email |Print

China Investment Corporation is expected to more than double its money when it offloads a 6.9 per cent stake in the Goodman Group for $519.2 million, just 3 1/2 years after the sovereign wealth fund first bought into the listed Australian industrial property giant in 2009.
The deal, fully underwritten by investment bank Goldman Sachs, involves 166.7 million securities being sold with a floor price of $4.45, which leaves CIC with a stake of about 9.9 per cent. Morningstar Equities analyst Tony Sherlock said that CIC had picked up the stake “for a song” and made an “amazing return” on its investment………………………………………..Full Article: Source

Goodman confirms relationship with CIC

Posted on 13 December 2012 by VRS  |  Email |Print

Goodman Group (Goodman or the Group) notes the sale of GMG securities undertaken by China Investment Corporation (CIC) and acknowledges the great support that CIC has provided to Goodman since participating in its recapitalisation in 2009.CIC’s investment in Goodman has performed well over this period and following its partial sale of
GMG securities, CIC continues to be the Group’s largest investor. Goodman Group Chief Executive Officer, Greg Goodman said, “We have a strong relationship with CIC and look forward to further building on this as we explore opportunities in all of the major markets in which Goodman operates globally.”……………………………………….Full Article: Source

Khazanah allocates RM10 mln to protect national parks from erosion

Posted on 13 December 2012 by VRS  |  Email |Print

Khazanah Nasional Berhad has given its commitment to allocate RM10 million to protect Pulau Kukup National Park and Tanjung Piai National Park from coastal erosion, Johor National Park Corporation director Suhairi Hashim said.

“The allocation is for the installation of sand-filled structures called Geotubes to control erosion, as well as oil detection buoy and litter trap up to one kilometre away from the beach, by March next year as part of the company’s social corporate responsibility,” he said………………………………………..Full Article: Source

Khazanah sells 1.1pct stake in Tenaga in off-market deal

Posted on 13 December 2012 by VRS  |  Email |Print

Khazanah Nasional Bhd, the investment holding arm of the Malaysian government, sold 60 million shares, or a 1.1% stake, in state power company Tenaga Nasional Bhd (5347.KU) for 406.8 million ringgit ($133.4 million) Wednesday through a private placement.
The shares were sold at MYR6.78 apiece, representing a 2.0% discount to Tuesday’s closing price, according to a joint statement from banks involved in the private placement. CIMB and Deutsche Bank were the joint placement agents for the deal………………………………………..Full Article: Source

Russian National Welfare Fund to invest in domestic securities - Putin

Posted on 13 December 2012 by VRS  |  Email |Print

Russia’s National Welfare Fund should invest up to 100 billion roubles ($3.25 billion) into Russian securities next year, President Vladimir Putin said on Wednesday in his an annual state-of-the-nation address.
The National Welfare Fund, presently worth $87.5 billion, is the larger of two sovereign wealth funds accumulated from oil revenues. It is designated to support the long-term stability of the pension system, and is presently mostly invested abroad in bonds of western governments. ($1 = 30.7530 Russian roubles)……………………………………….Full Article: Source

How sovereign wealth funds invest

Posted on 13 December 2012 by VRS  |  Email |Print

Investment decisions of sovereign wealth funds (SWFs) differ from those of other institutional investors, academic research demonstrates. SWFs, similar to other institutional investors, are less likely to invest in private equity versus public equity internationally, according to a newly published paper, written by Sofia Johan of York University, April Knill of Florida State University, and Nathan Mauck from the University of Missouri.
However, the economic significance of this impact is surprisingly low, the paper asserted. “Unlike other institutional investors, SWFs are more likely to invest in private equity versus public equity in target nations where investor protection is low and where the bilateral political relations between the SWF and target nation are weak.”……………………………………….Full Article: Source

India plans SWF to invest abroad

Posted on 12 December 2012 by VRS  |  Email |Print

India is all set to join an elite club of 30 nations that have sovereign wealth funds (SWF) by dipping into an estimated surplus of Rs. 2,50,000 crore with cash-rich public sector companies in addition to using a small chunk of foreign exchange reserves.
With only two months to go for the UPA government’s last budget before the next general election, details of the fund are still being stitched up. One option being considered is to create special instruments that public sector companies can invest in and use the funds raised from them to shop overseas………………………………………..Full Article: Source

Khazanah to sell up to $133 mln of stake in Tenaga Nasional

Posted on 12 December 2012 by VRS  |  Email |Print

Malaysian state investor Khazanah Nasional Bhd is selling up to 60 million shares worth around 408 million Malaysian ringgit ($133 million)in the country’s largest electricity utility, Tenaga Nasional Bhd , according to a source familiar with the deal.
The sale will be priced at between 6.75 and 6.80 ringgit per share, said the source who declined to be named as the information was private. The selling price is about 1.7 to 2.5 percent lower than the stock’s closing price of 6.92 ringgit on Tuesday………………………………………..Full Article: Source

China sovereign fund to sell 6.9pct stake in Goodman Group

Posted on 12 December 2012 by VRS  |  Email |Print

China’s sovereign wealth fund sold a 6.9 percent stake in Goodman Group (GMG), Australia’s biggest industrial property trust, to raise about A$519 million ($547 million), according to two people with knowledge of the matter.
China Investment Corp. sold the 116.67 million shares at A$4.45 each and will retain a stake in Goodman of about 9.9 percent, said the people, declining to be identified as the details aren’t public. Goldman Sachs Group Inc. (GS) managed the share sale to local and foreign investors, the people said………………………………………..Full Article: Source

CIC cashes in on share price surge to reduce holding in Goodman Australia

Posted on 12 December 2012 by VRS  |  Email |Print

China’s sovereign wealth fund CIC has reduced its stake in industrial property developer and manager Goodman Australia by 6.9%. Goodman Australia is part of Goodman Group, an international integrated property group that owns, develops and manages logistics and business space across continental Europe, the United Kingdom and the Asia-Pacific region.
CIC has sold $519.2 million worth of shares (116.7 million shares at $4.45 a share) to leave it with a 9.9% holding in Goodman Australia………………………………………..Full Article: Source

China poised to buy chunk of Timberlands

Posted on 12 December 2012 by VRS  |  Email |Print

China Investment Corp. (CIC) may be close to purchasing a sizeable chunk of Island Timberlands which owns about 260,000 hectares of private forest lands on Vancouver Island and the Sunshine Coast.
In November, the Wall Street Journal reported that CIC “is close to purchasing a 12.5 per cent stake in some timber assets in Canada from an infrastructure affiliate of Brookfield Asset Management Inc. for about $100 million………………………………………..Full Article: Source

Qatar Holding eyes $1bln investment in China

Posted on 12 December 2012 by VRS  |  Email |Print

Qatar Holdings, the investment arm of Qater’s sovereign wealth fund, has been granted a $1 billion of quota to invest in China’s capital markets, China’s foreign exchange regulator said on Tuesday.
Official Chinese media reported in June Qatar was applying for a $5 billion quota in China’s Qualified Foreign Institutional Investor (QFII) scheme, the main channel for foreign investment in Chinese stock and bond markets………………………………………..Full Article: Source

Safe breaks QFII record with $1bln quota to SWF

Posted on 12 December 2012 by VRS  |  Email |Print

Qatar Investment Authority is awarded $1 billion in QFII quota, beating the previous high of $700 million, as China’s foreign exchange regulator hands out $2.5 billion to 11 firms in its latest batch. China’s foreign exchange regulator has smashed its record high for a single QFII quota as part of a fresh batch of awards amounting to almost $2.5 billion.
The State Administration of Foreign Exchange (Safe) has handed $1 billion to Qatar Holding, a subsidiary of sovereign wealth fund QIA, to invest in China’s domestic securities market………………………………………..Full Article: Source

Qatar in second Champs-Elysées buy

Posted on 12 December 2012 by VRS  |  Email |Print

Qatar Investment Authority (QIA), the sovereign wealth fund that bought London’s Harrods department store in 2010 for US$2.22bn, has snapped up a second luxury property unit on Paris’s Champs-Elysées boulevard, according to reports in Europe.
French private equity fund LBO France has sold a luxury housing complex on the Parisian shopping avenue and QIA is believed to be the undisclosed buyer……………………………………….Full Article: Source

Committee wants SWF investment in Nigerian equities

Posted on 12 December 2012 by VRS  |  Email |Print

The Committee for the Resuscitation of the Capital Market set up by the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, has recommended that the Sovereign Wealth Fund (SWF) should invest part of its funds in Nigerian equities market for the stability of the market.
In its report, obtained exclusively by THISDAY, the committee, which was chaired by the Central Bank of Nigeria’s (CBN) Deputy Governor in charge of Financial Stability, Dr. Kingsley Moghalu, advised that a major institutional investor like the SWF could help create stability since foreign institutional investors, which currently account for 70 per cent of the equities market, have contributed to its volatility………………………………………..Full Article: Source

Govs demand $1bln from Excess Crude account

Posted on 12 December 2012 by VRS  |  Email |Print

Despite of the ongoing litigation between the federal and state governments over the Excess Crude, the state governors are asking for the release of $1 billion from the account, to enable them to meet their contractual obligations in their various states.
Rising from a meeting in the Presidential Villa, Abuja, on Tuesday, under the National Economic Council (NEC) presided over by Vice-President Namadi Sambo, they resolved to seek the intervention of the Attorney-General of the Federation on the best way to achieve it without subverting the court process………………………………………..Full Article: Source

Serbia foreign exchange reserves at EUR 10.65bln

Posted on 12 December 2012 by VRS  |  Email |Print

At the end of November the foreign exchange (FX) reserves of the National Bank of Serbia (NBS) stood at EUR 10.65 billion. The reserves covered money supply (M1) by 432 percent and more than seven months of imports of goods and services.
The main contribution to November growth in NBS foreign exchange reserves came from inflow in respect of the sale of Republic of Serbia securities on the international and domestic financial markets to the amount of EUR 663 million and through disbursement of loans and donations to the amount of EUR 30.3 million………………………………………..Full Article: Source

Future sovereign wealth fund to create ‘world-beating Royal Baby Experts’

Posted on 11 December 2012 by VRS  |  Email |Print

George Osborne confirmed the launch of the UK’s first Future Sovereign Wealth Fund, tasked with ‘creating and sustaining a world-class Royal Baby Expert Industry for at least the next 21 bloody years’. £6million has been set aside for much-needed infrastructure projects, such as widening the pavements outside Kensington Palace and making sure all hotels near posh universities can handle bookings up to 2030.
A further £3million will provide broadband connections, a baby name app, and a copy of ‘What to expect when you’re expecting’ to all journalism apprentices promising to ‘churn out any old shit, as long as it’s about royal babies’………………………………………..Full Article: Source

SWFs and world’s biggest investors still ‘reckless’ on climate risk: study

Posted on 11 December 2012 by VRS  |  Email |Print

A newly released survey of the world’s largest retirement funds, insurance companies and sovereign wealth funds’ has found the industry’s overall management of climate risk to be vastly inadequate, with many funds lacking any form of climate policy, and many more failing to adjust their investment decisions as a result of climate change.
“This first survey of the of the world’s 1,000 largest retirement funds, insurance companies and sovereign wealth funds’ …paints a disturbing overall picture of greenwash and reckless mismanagement but with some signs of progress,” said Dr John Hewson, chairman of the independent not-for-profit organisation, Asset Owners Disclosure Project, which on Tuesday released the first ever global climate investment index, based on its findings………………………………………..Full Article: Source

Qatar eyes investment in Greek defence sector

Posted on 11 December 2012 by VRS  |  Email |Print

Qatar is interested in Greek defence companies being privatised and could submit investment plans when Prime Minister Antonis Samaras visits the Gulf state early next year, Greece’s defence minister said on Monday.
Other investment areas expected to be discussed include real estate projects such as the Hellenikon project, a 620-hectare development near central Athens, Europe’s largest real estate project. Qatar Holding, the investment arm of Qatar’s sovereign wealth fund, is participating in the tender of this project………………………………………..Full Article: Source

Citigroup and the multi-billion investment that went terribly wrong

Posted on 11 December 2012 by VRS  |  Email |Print

At issue is the $7.5bn investment that Abu Dhabi Investment Authority, a large sovereign wealth fund, made in Citigroup Inc. (C) in November 2007, just after the bank fired Chairman and CEO Chuck Prince. Michael Klein, one of Citigroup’s most senior investment bankers, negotiated the deal; Robert Rubin, the former Treasury Secretary, in nearly his first official act after taking over for Prince as Citigroup’s chairman, flew off to Abu Dhabi to bless it.
A year later, of course, Citigroup collapsed, and American taxpayers bailed it out to the tune of $45bn, plus another $306bn to ring-fence a pile of toxic assets. ADIA, as the Abu Dhabi fund is known, lost nearly its entire investment after Citigroup’s shares were diluted down to pennies on the dollar by the rescue financing. (ADIA did receive some $2.5bn in dividends on its stock before Citigroup’s implosion.)……………………………………….Full Article: Source

Ghanaian oil revenue hits $340 mln

Posted on 11 December 2012 by VRS  |  Email |Print

Ghana’s petroleum revenue accruing to the state this year has hit USD340 million following the announcement of a third quarter receipt of USD64.91 million. Of the total receipts, USD146.5 million representing 42.7 per cent was transferred to the Ghana National Petroleum Corporation (GNPC).
The Ministry of Finance is yet to report on third-quarter transfers to the Ghana Petroleum Funds (GPF), which, according to the Petroleum Revenue Management Act, should receive any excess revenues above the quarterly Annual Budget Funding Amount (ABFA) – the share of revenues spent directly on the annual budget………………………………………..Full Article: Source

As Singapore eyes Iskandar, area anticipates new investment wave

Posted on 11 December 2012 by VRS  |  Email |Print

The chief of the Iskandar Regional Development Authority said Iskandar Malaysia in Johor will develop into a metropolis of international standing. “To grow into a big metropolis, you need the right ingredients and we have it all in Iskandar,” IRDA chief executive, Ismail Ibrahim, said.
Ismail said the Khazanah Nasional and Temasek Holdings partnership to develop parcels of land in Iskandar has spurred interest among Singaporean investors. The two sovereign wealth funds plan to build 3 billion ringgit worth of properties in Iskandar through their partnership called Pulau Indah Ventures. Ismail said the project showed confidence from Singapore, which would lead to more investments from the country and other global investors………………………………………..Full Article: Source

India: Fertiliser industry seeks ‘sovereign fund’ to buy production assets abroad

Posted on 10 December 2012 by VRS  |  Email |Print

Fertiliser makers want the Centre to create a ‘sovereign fund’ that can enable Indian firms set up joint ventures and acquire production assets abroad. This is to ensure long-term supply of nutrients and raw materials at reasonable prices.
“It is for the Government to decide the size of the fund. But given the capital costs of over $1.1-1.2 billion for a 10-lakh-tonne (lt) a year potash plant, it could start with that sum and then expand gradually,” R. G. Rajan, Chairman, Fertiliser Association of India (FAI) and CMD of Rashtriya Chemicals and Fertilisers (RCF), said………………………………………..Full Article: Source

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Zimbabwe: ‘Nation needs wealth fund’

Posted on 10 December 2012 by VRS  |  Email |Print

Zimbabwe needs a Sovereign Wealth Fund more than anything else using its vast minerals. “This SWF will be among other things be responsible for financing infrastructure backlog which needs close to US$14 billion, retiring the national debt which is hovering around US$10,6 billion, budgetary support, provide concessionary loans to industry, address balance of payments problems, provide funding to the informal sector and critical social programmes.
“It is enlightening to see that the Minister of Youth Development, Indigenisation and Empowerment has set up the National Indigenisation Economic Empowerment Fund which is earmarked to support economic empowerment programmes which will definitely spur economic growth.”……………………………………….Full Article: Source

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Putting the squeeze on Chinese investment

Posted on 10 December 2012 by VRS  |  Email |Print

Australian politicians grappling with how to answer the Chinese foreign investment question were presented with an interesting case study over the weekend. The Canadian government approved the $C15.1 billion ($A14.6 billion) takeover bid by state-owned China National Offshore Oil Corp for Canadian oil and gas producer Nexen Inc, which marks China’s largest-ever foreign deal.
One keen observer of Chinese investment in Canada is Felix Chee, who heads the China Investment Corp’s Toronto office. He convinced the CIC that the massive sovereign wealth fund should open their first overseas branch in Canada, over Australia, the United States and Britain, and is a major player in determining the outlook of Chinese foreign investment in Canada………………………………………..Full Article: Source

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Chinese investors buy 80pct of AIG plane unit for $4.2 bln

Posted on 10 December 2012 by VRS  |  Email |Print

A Chinese group agreed to buy an 80.1 percent stake in the plane-leasing unit of American International Group Inc. (AIG) for $4.23 billion, the largest acquisition by that nation’s investors in the U.S.
The deal values ILFC at $5.3 billion, and eclipses China Investment Corp.’s $3 billion purchase of a stake in Blackstone Group LP (BX) in 2007………………………………………..Full Article: Source

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Sovereign wealth funds: Qatar seals its kingmaker role in Xstrata deal

Posted on 07 December 2012 by VRS  |  Email |Print

Much has been said about the impact on the commodities sector of Glencore’s proposed £56 billion ($89 billion) merger with Xstrata, which at the time of writing appeared to be heading for completion. However, in the long term it might be remembered for a different reason: the role of a Middle East sovereign wealth fund as kingmaker in a deal that has nothing to do with that region.
Qatar’s role – which, ultimately, decided if the deal would go ahead or not – came about because Qatar Holding, the international arm of the Qatar Investment Authority (QIA) sovereign wealth fund, holds a 12% stake in Xstrata. The Anglo-Swiss multinational mining company generally has precious little to do with the Gulf: it is the world’s largest exporter of power-station coal………………………………………..Full Article: Source

GIC to buy Paulson resorts for S$1.8 bln

Posted on 07 December 2012 by VRS  |  Email |Print

The Government of Singapore Investment Corp (GIC) is set to acquire a group of resorts owned by hedge fund Paulson & Co for the sum of US$1.5 billion (S$1.8 billion) after no competing bidders emerged for the bankrupt properties.
An auction for the properties was cancelled after no other bids were received, leaving GIC as the successful bidder, according to a filing yesterday in the United States Bankruptcy Court in Manhattan………………………………………..Full Article: Source

Singapore government will buy Grand Wailea, other resort properties

Posted on 07 December 2012 by VRS  |  Email |Print

The Government of Singapore Investment Corp. will buy the Grand Wailea on Maui and three other luxury U.S. resorts owned by a group led by New York-based Paulson & Co. for $1.5 billion after no other bidders stepped up to bid on the bankrupt resort properties.
An auction that had been scheduled for Thursday was canceled a day earlier after no other competing bids were received by the Monday deadline, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York in Manhattan………………………………………..Full Article: Source

Sovereign fund’s uncontested $1.5bln bid lands it MSR assets

Posted on 07 December 2012 by VRS  |  Email |Print

A Singapore sovereign wealth fund has emerged as the winning bidder for MSR Resort Golf Course LLC after no competing bidders came forward to best its $1.5 billion stalking horse bid for the company’s five-resort portfolio, according to court documents filed in New York federal bankruptcy court Wednesday.
No competing bids emerged before MSR’s Dec. 3 bid deadline, meaning Government of Singapore Investment Corp. (Realty) Private Ltd.’s $1.5 billion offer is now the winning bid, according to a notice filed by MSR on Wednesday………………………………………..Full Article: Source

Temasek buys stake in Turkish bank

Posted on 07 December 2012 by VRS  |  Email |Print

Singapore state-investment firm Temasek Holdings Pte. Ltd. has bought a stake in a Turkish government-owned bank and is looking at other lenders as it makes its first entry into the fast-growing economy, people with knowledge of the process said.
With a portfolio of more than $160 billion, Temasek is seeking to expand into emerging markets both within and outside Asia, with a focus on buying banks as a way to benefit from the rising spending by the growing middle class………………………………………..Full Article: Source

Olam not similar to failed Enron, says ex-Temasek director

Posted on 07 December 2012 by VRS  |  Email |Print

Olam International Ltd. (OLAM), the commodity trader that Muddy Waters LLC said may fail, isn’t another Enron Corp., according to a former senior managing director at Temasek Holdings Pte.
“I completely reject” the Enron comparison made by Muddy Waters, Michael Dee, who worked at Temasek from 2008 to 2010, said.Olam is “a company that saw a tremendous business opportunity, to take an existing platform and grow it on the back of relatively inexpensive debt. And perhaps executed that a little bit too fast and too far.”……………………………………….Full Article: Source

Olam, Temasek and Singapore

Posted on 07 December 2012 by VRS  |  Email |Print

To briefly recap the questionable finances of Singapore, with $364 billion SGD in public debt and $266 billion in accumulated surpluses, all supposedly invested, totaling $630 billion SGD in public assets. Temasek and GIC claim to have earned 17% and 7% annually since 1974 and 1981 respectively.
However, the Singapore government only lists assets totaling a little more than $705 billion SGD on its balance sheet. In other words, it cannot mathematically 1) take in $630 billion SGD since 1974 2) claim to earn 17% and 7% in Temasek and GIC and 3) only have a little more than $700 billion SGD. Even after accounting for interest and currency costs, that is some truly magic accounting………………………………………..Full Article: Source

South Korea’s hedge fund industry - is seeing consistent growth on the back of government support

Posted on 07 December 2012 by VRS  |  Email |Print

A robust corner of Asia’s hedge fund industry lies in South Korea, where the government, faced with the familiar global problem of an ageing population, has actively encouraged the development of alternatives to boost pension and other investment returns.
Domestic Korean institutions have certainly adopted alternatives. The Korea Investment Corporation (the KIC) is the sovereign wealth fund of Korea with assets of some $50bn under management. In an interview with Asia Pacific Intelligence, Minjun Kim, Senior Investment Manager, Investment Strategy Group, Head of Hedge Funds for KIC, reports that currently the KIC has roughly about $1.3 billion invested in hedge funds. At the time of writing, the KIC is not allowed to invest in the domestic Korean hedge fund industry and observers feel that it won’t until the local funds have proved themselves capable of good and steady returns………………………………………..Full Article: Source

In 2013 Oil Fund to finance AZN 200 mln for fiber to home in Azerbaijan

Posted on 07 December 2012 by VRS  |  Email |Print

Aztelekom intends to invest AZN 30 million in the development of its network. Association’s head Magomed Mammadov informs that for the first three quarters of 2012 the volume of investments in the network amounted to about AZN 20 million.
“Our goal today is to increase the number of broadband internet users. As a whole, we plan to spend more than AZN 200 million in the broadband Internet project in regions in 2013 to be allocated by the State Oil Fund of Azerbaijan (SOFAZ),” he said………………………………………..Full Article: Source

A UK sovereign wealth fund?

Posted on 06 December 2012 by VRS  |  Email |Print

One of the reasons infrastructure investment by British pension funds is relatively low, compared with (for example) infrastructure investment by Canadian pension funds, is that the UK’s pension fund industry is fragmented: there aren’t that many huge pension funds with the resources and appetite to make big long-term investments in new roads, or railways or airports.
And to tell you what you already know, the UK doesn’t have a huge sovereign wealth fund, of the sort they have in Norway, much of the Middle East and Asia, keen and able to make massive long-term investments in the gubbins that underpin a nation’s ability to grow and create wealth………………………………………..Full Article: Source

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Kazakhstan wealth fund sued in U.S. by BTA Bank investors

Posted on 06 December 2012 by VRS  |  Email |Print

Investors in BTA Bank (BTAS), Kazakhstan’s third-largest bank by assets, accused its controlling shareholder, the Central Asian nation’s sovereign wealth fund Samruk-Kazyna, of defrauding them.
The investors claim in a lawsuit in Manhattan federal court that BTA Bank, which isn’t named as a defendant, defrauded them by inducing them to buy debt securities as part of a 2010 restructuring. The bank did so, the investors claim, by promising that virtually no dividends or distributions would be paid to X1Q6MH7D9182, which is a defendant………………………………………..Full Article: Source

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NZ Super Fund named world’s most innovative

Posted on 06 December 2012 by VRS  |  Email |Print

The New Zealand Superannuation Fund has been named the world’s most innovative sovereign fund. Last night, the Fund won the prestigious Sovereign Wealth Fund category in the 2012 aiCIO Industry Innovation Awards in New York.
The other finalists were the Australian Future Fund; Singaporean fund GIC; Norges Bank Investment Management and the State Oil Fund of Azerbaijan. Chairman Gavin Walker said the award recognised the Fund’s transparency, consensus-based decision-making and a shift away from a traditional asset allocation ‘bucket’ approach to investing………………………………………..Full Article: Source

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Paulson Resorts to be sold to GIC after auction canceled

Posted on 06 December 2012 by VRS  |  Email |Print

Government of Singapore Investment Corp. is set to buy a group of resorts owned by hedge fund Paulson & Co. for $1.5 billion after no competing bidders emerged for the bankrupt properties.
An auction for the properties was canceled after no competing bids were received, leaving GIC, a sovereign wealth fund, as the successful bidder, according to a filing today in U.S. Bankruptcy Court in Manhattan………………………………………..Full Article: Source

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Temasek buys stake in Turkish bank

Posted on 06 December 2012 by VRS  |  Email |Print

Singapore state-investment company Temasek Holdings Pte. Ltd. has bought a stake in a Turkish government-owned bank and is looking at other lenders as it makes its first entry into the fast-growing economy, people with knowledge of the process said.
With a portfolio of more than $160 billion, Temasek is looking to expand into emerging markets both within and outside Asia, with a focus on buying banks as a way to benefit from the rising spending by the growing middle class. Temasek already holds stakes worth $18 billion in China, mostly in state-owned banks………………………………………..Full Article: Source

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Olam says banks raised no credit concerns in Temasek talks

Posted on 06 December 2012 by VRS  |  Email |Print

Olam International Ltd., the commodity trader that Muddy Waters LLC alleges is in danger of default, said banks hired to help sell $1.25 billion in bonds and warrants didn’t raise concerns about its credit position in discussions with shareholder Temasek Holdings Pte.
Credit Suisse Group AG, DBS Bank Ltd., HSBC Holdings Plc and JPMorgan Chase & Co “confirm that there was no mention of any concern regarding Olam’s credit position in their discussions with Temasek,” which is supporting the bond sale, Singapore-based Olam said in a statement on its website………………………………………..Full Article: Source

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Khazanah launches up to $360 mln stake sale in AIA

Posted on 06 December 2012 by VRS  |  Email |Print

Malaysia’s state investor Khazanah Nasional Bhd launched on Wednesday an up to $360 million offering of shares in AIA Group, IFR reported, citing a term sheet of the transaction.
Khazanah, through its Mount Swettenham Investments unit, is offering 92.35 million AIA shares in a range of HK$29.84-HK$30.20 each, equivalent to a discount of up to 1.2 percent to Wednesday’s close, added IFR, a Thomson Reuters publication………………………………………..Full Article: Source

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Khazanah’s Mount Swettenham raised US$356 mln by selling AIA shares

Posted on 06 December 2012 by VRS  |  Email |Print

Malaysia’s state investor Khazanah Nasional Bhd has raised US$356 million by selling shares in AIA Group Ltd., a person familiar with the situation said Thursday.
Khazanah, through its Mount Swettenham Investments unit, sold 92.35 million shares at HK$29.84 each, at the low end of the indicative price range of HK$$29.84-HK$30.20, said the person, adding the deal was covered shortly after its Wednesday launch. The final price represented a 1.2% discount to Wednesday’s closing price of HK$30.20………………………………………..Full Article: Source

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