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Sovereign Wealth Funds Briefing - Archive | January, 2013

Kazakh wealth fund to cut deposits in foreign banks by half

Posted on 31 January 2013 by VRS  |  Email |Print

Kazakhstan’s sovereign wealth fund said it’s seeking to cut the share of deposits it has in foreign banks and provide more liquidity to domestic lenders.
Banks hold 2.9 trillion tenge ($19 billion) for companies owned by the Samruk-Kazyna fund, while 24 percent of that amount is deposited in foreign banks, Deputy Chief Executive Officer Yelena Bakhmutova told reporters in Almaty. The fund plans to cut the share in foreign banks to 10 percent of total deposits in two years, she said………………………………………..Full Article: Source

Qatari Diar puts Chelsea Barracks scheme on hold

Posted on 31 January 2013 by VRS  |  Email |Print

Qatari Diar was left pondering its options about what to do with one of the world’s most expensive housing schemes. The property arm of the Qatari sovereign wealth fund announced it had put its US$3 billion (Dh11.02bn) Chelsea Barracks project in prime central London on hold because of doubts about whether the scheme of 448 luxury flats would financially stack up.
Qatari Diar said it was “currently refining its strategy for the development of this unique site to progress and realise its vision for this important part of London”……………………………………….Full Article: Source

Samruk Kazyna sovereign wealth fund board chairwoman comments on Russia’s Sberbank President German Gref’s concerns

Posted on 31 January 2013 by VRS  |  Email |Print

Ms. Elena Bakhmutova, Vice Chairwoman of the Samruk Kazyna Sovereign Wealth Fund Board, commented on Russia’s Sberbank President German Gref’s concerns over the Fund’s policy towards banks.
Mr. Gref earlier expressed concerns that Kazakhstan is taking steps to restrict operations of foreign banks in Kazakhstan, including those of Sberbank. Notably, he referred to suggestions to set limits on deposits of national companies [owned by Samruk Kazyna] kept with foreign banks. According to him, this measure is discriminating against foreign banks and is an obstacle to fair competition within the Single Economic Space………………………………………..Full Article: Source

Nigeria: Management of Excess Crude Account

Posted on 31 January 2013 by VRS  |  Email |Print

Excess crude account - Govs insist on supreme court resolution. The 36 state governors, under the aegis of the Nigeria Governors Forum (NGF), yesterday lambasted the federal government over its attitude to the management of Excess Crude Account and resolved not to entertain further adjournments of the case pending at the Supreme Court.
Several attempts for an out-of-court settlement at the instance of the federal government had failed to appease the governors who described the deductions made by the federal government from the account as illegal. The governors stated this after their first meeting for the year, which was chaired by Rivers State Governor Rotimi Amaechi………………………………………..Full Article: Source

2012 Alaska Permanent Fund dividend payout: $878

Posted on 31 January 2013 by VRS  |  Email |Print

The number on every Alaskan’s mind was announced Tuesday morning by Revenue Commissioner Bryan Butcher in Anchorage. This year’s Alaska Permanent Fund dividend payout is $878. The dividend will be distributed to eligible Alaska residents on Oct. 4.
Altogether, there were 677,333 Alaska PFD applicants this year, and about 646,805 should qualify, Butcher said. The amount of money disbursed will be a little over $567 million. The oldest applicant was 107 years old, and the youngest was born “minutes before” the qualification deadline on December 31, 2011………………………………………..Full Article: Source

Perry: Take $1B from Rainy Day Fund for tax relief

Posted on 31 January 2013 by VRS  |  Email |Print

Gov. Rick Perry gave his public blessing this week to use billions from the state’s emergency piggybank to build roads and secure water. Left unsaid was his belief that spending from the Rainy Day Fund shouldn’t stop there.
During his State of the State address Tuesday, Perry called for spending $3.7 billion from the politically thorny fund for one-time infrastructure projects. Not announced to a packed House chamber was that in his budget proposal sent to lawmakers that same day, Perry suggests using nearly another $1 billion from the fund in tax relief………………………………………..Full Article: Source

CVC Capital said to seek $12.2 bln for buyout fund

Posted on 31 January 2013 by VRS  |  Email |Print

CVC Capital Partners Ltd., the private-equity firm whose investments include Formula One racing and Samsonite luggage, is targeting 9 billion euros ($12.2 billion) for one of the largest buyout pools currently being sought, according to three people familiar with the matter.
CVC, which last year sold a stake in itself to three sovereign-wealth funds, plans to remain private, unlike some of its U.S. competitors………………………………………..Full Article: Source

Rise of African SWFs

Posted on 30 January 2013 by VRS  |  Email |Print

As African countries’ wealth grows, governments are exploring new way to manage their reserves with more fiscal responsibility, accumulate wealth and bring more transparency and accountability in how they manage their new-found riches.
Angola, Ghana and Nigeria - all major or promising hydrocarbons’ players - established sovereign wealth funds in 2012, and Tanzania expressed its intention to establish a fund to manage its oil and gas reserves. African states are relatively minor players in the global SWF industry. Major oil producers Norway and Abu Dhabi lead the way with two of the largest and successful sovereign wealth funds………………………………………..Full Article: Source

Qatar plans to invest $5bln in Malaysia petrochem complex

Posted on 30 January 2013 by VRS  |  Email |Print

Qatar’s sovereign wealth fund plans to spend half of the $10bn it expects to invest in Malaysia on a petrochemicals complex aimed at transforming the southeast Asian nation into a global hub for the oil and gas trade. The Pengerang Integrated Petroleum Complex in the southern state of Johor is expected to help Malaysia compete with neighbouring Singapore to become the region’s top petrochemical hub.
“We are in discussions about this. We may invest up to $5bn in the next three to four years into petrochemical projects here (in Pengerang),” Qatar Holding LLC Vice-Chairman Hussain Ali Al Abdulla told reporters in Kuala Lumpur………………………………………..Full Article: Source

Qatar’s sovereign fund sees its investments in Malaysia surpassing US$10bln

Posted on 30 January 2013 by VRS  |  Email |Print

Qatar’s sovereign fund anticipates that its investments in Malaysia will surpass the US$10bil (RM30.8bil) mark, which when fullymaterialised, should make it among the largest foreign investors here.
A big portion of that amount US$5bil (RM15.4bil) will be pumped into petrochemical projects within the country over the next three to four years, particularly in the Pengerang project in Johor. The investments will come from Qatar Holding LLC, an investment arm of the Qatar Investment Authority (QIA), said Qatar Holding vice-chairman Dr Hussain Ali Al- Abdulla………………………………………..Full Article: Source

Qatar, Greece to set up joint-venture fund

Posted on 30 January 2013 by VRS  |  Email |Print

Qatar and Greece could each invest up to 1 billion euros ($1.35 billion) in a joint fund to support small and mid-sized Greek companies, extending the Gulf state’s support of ailing European economies.
n November, the investment arm of Qatar’s sovereign wealth fund, Qatar Holding, and an investment fund backed by the Italian government agreed to invest up to EUR2 billion in Italian companies over the next four years………………………………………..Full Article: Source

Qatar puts $4.7bln London project on hold

Posted on 30 January 2013 by VRS  |  Email |Print

Qatar has put its largest single investment in London, the GBP£3bn (US$4.7bn) Chelsea Barracks housing development, on hold, citing concerns about the UK economy.
A spokesperson for Qatari Diar, the property investment arm of Qatar’s sovereign wealth fund, confirmed the project, which Prince Charles lobbied to be built in his preferred architectural style, was under review. “The strategy is under review,” a Qatari Diar spokeswoman said………………………………………..Full Article: Source

Excess crude account: Govs to seek final resolution from Supreme Court

Posted on 30 January 2013 by VRS  |  Email |Print

Determined to definitely resolve its dispute with the Federal Government over the Excess Crude Account (ECA), the Nigeria Governors’ Forum (NGF) is, again, set to go to the Supreme Court. However, the Federal Government Tuesday approved the distribution of $1 billion from the ECA among the 36 states and the Federal Capital Territory (FCT) to enable them to execute projects.
The decision received the blessing of President Goodluck Jonathan, according to the Chairman of the Nigeria Governors’ Forum (NGF) and Rivers State Governor, Rotimi Amaechi, at a joint media briefing of State House correspondents at the end of the 45th National Economic Council (NEC) meeting, with his Abia State counterpart, Theodore Orji; the Minister of National Planning, Dr. Shamsudeen Usman and Minister of State for Finance, Yerima Ngama………………………………………..Full Article: Source

ECA: Jonathan approves $1bln to States

Posted on 30 January 2013 by VRS  |  Email |Print

In what may appear to be an attempt to placate governors, who had been at daggers-drawn point with the Presidency, President Goodluck Jonathan Tuesday approved the distribution of $1billion from the Excess Crude Account (ECA) among the 36 States and the Federal Capital Territory (FCT).
This was one of the outcome of the first 2013 edition of the National Economic Council (NEC) presided over by Vice President Namadi Sambo Tuesday………………………………………..Full Article: Source

Ex-Temasek exec Rozario forms advisory firm

Posted on 30 January 2013 by VRS  |  Email |Print

Francis Rozario, who spearheaded Singapore state investor Temasek Holdings Pte Ltd’s investment in Asian banks, has set up his own advisory firm to serve financial institutions. Rozario told Reuters he had co-founded Singapore-based Asia Capital and Advisors Pte Ltd with Leslie Menkes, who headed Morgan Stanley’s onshore private banking business in Asia.
A former Citigroup executive, Rozario left Temasek’s Fullerton Financial Holdings unit in the middle of 2011 after working at the state investor for about eight years………………………………………..Full Article: Source

GIC helps Laxfield start $1bln UK debt strategy

Posted on 30 January 2013 by VRS  |  Email |Print

With an initial capital infusion from the real estate arm of the Government of Singapore Investment Corp., Laxfield Capital has launched a new commercial lending program. The locally based commercial mortgage origination, investment management and advisory firm will invest up to $1 billion in commercial mortgages in the United Kingdom over the next 24 months.
According to Adam Slater, managing director of Laxfield Capital, the program will fill the gap in the large-size commercial mortgage sector left by lenders currently unable to provide whole loans of more than £100 million, at up to 75% LTV, particularly outside core locations or prime assets………………………………………..Full Article: Source

NZ Superannuation Fund to increase allocation to catastrophe bonds and ILS

Posted on 30 January 2013 by VRS  |  Email |Print

Here’s some more evidence of the increasing interest that large pension funds are showing in the catastrophe bond, insurance-linked securities and reinsurance-linked investment space. The New Zealand Superannuation Fund, a fund for the state-run retirement benefit (pension) available to all working New Zealanders, already has an allocation to cat bonds in its alternative investment portfolio but is considering increasing it further.
We wrote about the NZ$20 billion plus pension funds allocation to the ILS space back in 2010 here and here. The allocation to catastrophe insurance-linked securities currently amounts to approximately NZ$260m which the pension fund places with U.S. ILS fund manager Elementum Advisors, and we assume the investment continues to be managed by that firm………………………………………..Full Article: Source

Kazakhstan sovereign wealth fund Samruk-Kazyna expands the investment horizons

Posted on 30 January 2013 by VRS  |  Email |Print

Samruk-Kazyna increases the potential for cooperation in the implementation of investment projects in the petrochemical, hydro and thermal power, renewable and alternative energy, engineering, pharmacy.
Kazakhstan Sovereign Wealth Fund Samruk-Kazyna was established to improve the competitiveness of the national economy and prevent the negative impact of the world markets on the economic growth in the country. The main instrument to achieve these goals - diversification and innovative development of the national economy. (Press Release)

Rep. Jay Love files bill to pay back Alabama Trust Fund

Posted on 30 January 2013 by VRS  |  Email |Print

Rep. Jay Love, R-Montgomery, has filed legislation that would require the state to pay back $437 million borrowed from the Alabama Trust Fund by 2026.
The legislation would establish benchmarks for repayment of the money, taken to shore up the state’s troubled General Fund, which pays for most noneducation funding in the state. About $145 million was transferred from the ATF into the General Fund for the current fiscal year; additional transfers are scheduled for FY 2014 and FY 2015………………………………………..Full Article: Source

GIC invests in mortgage program, Laxfield says

Posted on 29 January 2013 by VRS  |  Email |Print

Government of Singapore Investment Corp. invested in a mortgage program that will provide loans for commercial property in the U.K., Laxfield Capital said. The lending program will invest as much as 1 billion pounds ($1.6 billion) over the next 24 months, Laxfield, a London-based mortgage company, said in a statement on its website.
GIC, the Singapore sovereign wealth fund managing more than $100 billion of the city’s reserves, confirmed the investment in an e-mail and declined to disclose the amount of the funds injected………………………………………..Full Article: Source

GIC invests in $1.6bln UK property fund

Posted on 29 January 2013 by VRS  |  Email |Print

Singapore’s sovereign wealth fund has backed a 1 billion pound ($1.6 billion) lending programme for British offices, shops and warehouse property that could bring much-needed funds into a debt-starved sector.
The Government of Singapore Investment Corporation, one of the world’s largest sovereign wealth funds, will underwrite the loans to be issued by commercial mortgage provider Laxfield Capital. The programme targets lending of up to 1 billion pounds over the next 24 months, Laxfield Capital said in a statement on Monday………………………………………..Full Article: Source

Due to Azerbaijan’s Oil Fund, IFC Catalyst Fund reached $280 mln

Posted on 29 January 2013 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) ensured formation of IFC Catalyst Fund in the amount of $280 million. The International Finance Corporation (IFC) reports that IFC Catalyst Fund focused on equity investments to support climate investments has already mobilized $280 million from the governments of Canada and the UK and the sovereign wealth fund of Azerbaijan. The IFC itself contributed $75 million to the fund.
In turn, SOFAZ announced that its investments in managed IFC Asset Management Company funds and co-financing of projects reached $150 million - $50 million was invested in 2013 in IFC Catalyst Fund and $100 million - in 2010 in the IFC African, Latin American, and Caribbean Fund………………………………………..Full Article: Source

Kazakhstan sovereign wealth fund Samruk-Kazyna expands the investment horizons

Posted on 29 January 2013 by VRS  |  Email |Print

Samruk-Kazyna increases the potential for cooperation in the implementation of investment projects in the petrochemical, hydro and thermal power, renewable and alternative energy, engineering, pharmacy. Kazakhstan Sovereign Wealth Fund Samruk-Kazyna was established to improve the competitiveness of the national economy and prevent the negative impact of the world markets on the economic growth in the country. The main instrument to achieve these goals - diversification and innovative development of the national economy.
To date, the Fund that has successfully implemented the bailout program - is the effective holding company in relation to its subsidiaries and a strategic investor, which aims at creating a balanced investment portfolio. Samruk-Kazyna is more than 500 companies in the industrial and production sector, working in the key areas of the national economy: oil and gas, mining, chemical, transport and communication, electricity and banking. (Press Release)

Abu Dhabi-led grouping eyes exit from Jordan airport

Posted on 29 January 2013 by VRS  |  Email |Print

An Abu Dhabi-led consortium investing US$850m to expand Jordan’s main airport is looking to exit a 25-year concession to manage the facility, preferring to cash in the investment rather than stay involved for coming years.
Three banking sources told Reuters Airport International Group (AIG), formed of French, Greek and Jordanian firms to expand the Queen Alia International Airport with an additional terminal, had approached banks to advise on the possible sale. The AIG consortium is led by Abu Dhabi-owned Invest AD, which has a 38 percent stake, and Kuwait’s Noor Financial Investment Co, with a 24 percent ownership………………………………………..Full Article: Source

Kuwait wealth fund eyes Europe, US projects

Posted on 28 January 2013 by VRS  |  Email |Print

Kuwait Investment Authority (KIA), the Gulf state’s sovereign wealth fund, plans to invest in European and US infrastructure projects, its managing director said. The fund, which has an estimated US$261bn of assets under management, is interested in investing in Texas Pacific Group and CBC, Badr Al Saad told Al Arabiya at the World Economic Forum in Davos.
“We think that these countries need to develop their infrastructure. We think that investments in infrastructure will be big in the next five years,” said Al Saad………………………………………..Full Article: Source

Africa: AU wants wealth funds to finance investment

Posted on 28 January 2013 by VRS  |  Email |Print

The African Union (AU) has appealed to its member states with sovereign wealth funds in the Euro zone and the US to repatriate the funds to finance multi-billion-dollar investment plans aimed at fast-tracking trade and economic growth on the continent.
AU Commission Deputy Chairperson Erastus Mwencha said while current peacekeeping, infrastructure and education expansion programmes were financed by foreign aid, the AU was seeking more innovative ways to enable the African private sector to take ownership of most of the projects………………………………………..Full Article: Source

China wealth fund: Investment must chase demand

Posted on 28 January 2013 by VRS  |  Email |Print

Chinese companies should pursue broader opportunities in economies enjoying increasing consumer demand rather than concentrating on commodities and high technology, local media Monday cited the head of China’s sovereign wealth fund as saying.
Demand is increasing in Europe, Asia and Africa, and Chinese companies should “seize this opportunity” to expand overseas, the state-run China Securities Journal cited China Investment Corp. Chairman Lou Jiwei as saying at a forum over the weekend. Chinese companies should be allowed more freedom to invest overseas, as global economic adjustment after the financial crisis is creating opportunities, Mr. Lou said………………………………………..Full Article: Source

CIC chief bullish on China growth

Posted on 28 January 2013 by VRS  |  Email |Print

China’s economy will grow at more than 8 percent this year, underpinning the global economy that is bound for a “mild, tortuous and slow” recovery in 2013, predicted Lou Jiwei, head of China’s sovereign wealth fund, on Saturday.
Demand has become a most-sought-after resource around the globe, and China’s economic growth makes up the lion’s share of global demand, as market demand in debt-laden Europe is lackluster and even shrinking, Lou, chairman of the China Investment Corp (CIC), said at an economic forum in Beijing………………………………………..Full Article: Source

GSIS, SSS tapped for sovereign wealth fund

Posted on 28 January 2013 by VRS  |  Email |Print

A wash with cash and with the peso exhibiting a worrisome strength vis-à-vis the dollar on the back of a steady stream of remittances, the government economic team is eyeing the creation of a sovereign wealth fund (SWF) that could be marshaled to take care of big-ticket items, like funding infrastructure projects.
There are snippets of information that reveal that while the Bangko Sentral ng Pilipinas (BSP) could be tapped to provide the initial funding of about $20 billion from out of its gross international reserves (GIR) of $84 billion, the primary problem bugging the economic team is what agency would be tasked to take charge of the SWF………………………………………..Full Article: Source

Falklands make GBP8mln transfer to “Oil Development Reserve”, future sovereign wealth fund

Posted on 28 January 2013 by VRS  |  Email |Print

The government of the Falkland Islands has made a transfer of over 8 million pounds (£ 8.274 million) to the new Oil Development Reserve, a first step towards a ‘Sovereign Wealth Fund’ based on the Norwegian model it was explained at this week’s meeting of the Standing Finance Committee.
The Falkland Islands Government (FIG) was showing a surplus of £3.910 million compared to a revised budget surplus of £3.515 million, a favourable performance of £0.395 million in first six months of the 2012/13 financial year. This appeared less than anticipated, explained the FIG Management Accountant, due to the transfer of oil related taxation receipts to the Reserve………………………………………..Full Article: Source

Sovereign funds eye retail investment in Italy, Spain

Posted on 28 January 2013 by VRS  |  Email |Print

Sovereign wealth funds are considering investments in southern Europe despite deep and prolonged recessions and the Eurozone crisis now into its third year, the ICSC-Thomson Reuters Global Retail Real Estate Forum heard last week.
The prospect of high yields from prime retail is attracting cash-rich investors, but deals are difficult as sellers are unwilling and risks of further falls remain. Sovereign wealth funds, that derive their wealth from national oil reserves and currency stockpiles, have more than $4tr assets under management said Bruce Nutman, partner and head of retail investment at British realtor Knight Frank. Funds……………………………………….Full Article: Source

Norway debates overseas ventures after siege in Algeria

Posted on 28 January 2013 by VRS  |  Email |Print

Oil and gas made Norway one of the world’s most advanced and prosperous countries in just a few decades. Now the deadly siege in Algeria has fired up a debate here over how far its petroleum companies, and their skilled workers, should go in the hunt for resources and profits.
While many European countries are struggling under growing debt burdens, Norway, thanks to its petroleum reserves, has a sovereign wealth fund with an estimated $700 billion to protect its future………………………………………..Full Article: Source

Davos: Kuwait wealth fund warns of currency war

Posted on 28 January 2013 by VRS  |  Email |Print

The decline of the yen could spark a currency war in southeast Asia, Badr al-Saad, the head of Kuwait’s sovereign wealth fund, said. The Chinese economy will grow between 7.7 per cent to 8 per cent over the next two years, far better than developed economies, al-Saad, the managing director of Kuwait Investment Authority (KIA), told pan-Arab network al-Arabiya at the World Economic Forum in Davos, Switzerland.
“The only fear is the decline of the yen. The decline of the yen could trigger a currency war in the countries of southeast Asia, this is the only fear we have at the moment,” he said………………………………………..Full Article: Source

Yield-seeking sovereign wealth funds set to target new asset classes

Posted on 25 January 2013 by VRS  |  Email |Print

Low yields in traditional asset classes are prompting powerful sovereign wealth funds to reassess their asset allocation, according to Patrick Thomson, global head of Sovereigns at JP Morgan Asset Management.
Speaking at the Davos economic forum, Thomson said the very low level of yields in asset classes historically used by sovereign and central bank investors - 10-year US Treasury yields are currently trading below 2% - is leading to a readjustment of portfolios. Sovereign wealth fund assets are now thought to stand at around $5trn………………………………………..Full Article: Source

Risk averse pensions open doors for SWFs

Posted on 25 January 2013 by VRS  |  Email |Print

A change in risk appetite by pension funds and insurers addressing their funding status or readying for new regulation is set to create new opportunities for sovereign wealth investors, JP Morgan Asset Management has predicted.
A note from the asset manager today said changing attitudes, which often translated into a risk reduction, meant sovereign wealth funds (SWFs) would have more prospects to expand into one of four asset classes: emerging markets, Europe, private markets and alternatives, and co-investments………………………………………..Full Article: Source

Ireland’s NPRF considers ’suite of funds’ targeting SMEs

Posted on 25 January 2013 by VRS  |  Email |Print

The National Pensions Reserve Fund may soon commit to further funds targeting Ireland’s small and medium-sized enterprises (SME), the country’s minister for finance has said.
Indicating that an earlier €500m commitment to three SME funds would be the first of many, Michael Noonan told the Dáil the NPRF was examining other funds that would “complement” those managed by BlueBay Asset Management, Better Capital and Carlyle Cardinal Ireland………………………………………..Full Article: Source

Azerbaijan became first out of world’s developing economies which invested in IFC-run Asset Management Company Funds

Posted on 25 January 2013 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) and International Finance Corporation signed an agreement that expands their cooperation to support private sector development in emerging markets.
The IFC informs that in compliance with the agreement SOFAZ committed $50 million to the IFC Catalyst Fund which is designed to stimulate the development of funds and projects focused on renewable energy and climate-friendly solutions. This follows an investment by SOFAZ in 2010 of $100 million in the IFC African, Latin American, and Caribbean Fund. Azerbaijan was the first investor from an emerging market to invest in funds managed by the IFC Asset Management Company………………………………………..Full Article: Source

Bahrain’s sovereign wealth fund on transparency Video)

Posted on 25 January 2013 by VRS  |  Email |Print

Mahmood H. Al-Kooheji, CEO of Bahrain’s Sovereign Wealth Fund Mumtalakat, talks about the need for SWFs to be open in their investment process as well what investments interest his own fund.……………………………………….Full Article: Source

Olam raises $712.5 mln from bonds as offering oversubscribed

Posted on 25 January 2013 by VRS  |  Email |Print

Olam International Ltd. (OLAM), the commodity supplier targeted by short-seller Carson Block, raised $712.5 million from a bond sale that it said was oversubscribed. Kewalram Singapore Ltd. and Temasek Holdings Pte, the two largest shareholders, took up all of their entitlement of bonds and warrants, the trading company said yesterday in a statement.
Olam, the world’s second-largest rice trader, said last month that it planned to sell $750 million in bonds and as much as $500 million in warrants to address any “lingering doubts” about its finances………………………………………..Full Article: Source

Alaska Permanent reports 7.3pct return for 6 months

Posted on 25 January 2013 by VRS  |  Email |Print

Alaska Permanent Fund Corp. returned 7.3% for the six months ended Dec. 31, including a 2.7% return for the quarter ended Dec. 31. The Alaska Permanent Fund returned 2.7% for the second quarter of fiscal year 2013 according to unaudited figures released today by the Corporation, ending on December 31 with a value of $43.7 billion. The Fund’s year-to-date return is 7.3%.
Non-U.S. stocks were the largest contributor to the Fund’s performance for the quarter and for the fiscal year-to-date. The Fund’s non-U.S. portfolio returned 5.8% for the quarter and 13.7% for the first six months of the fiscal year, while the global portfolio returned 3.7% and 11.0% for the respective periods. By comparison, the U.S. portfolio returned 0.7% for the quarter and 7.0% for the fiscal year-to-date………………………………………..Full Article: Source

Oman wealth fund in talks for Dubai ONIC stake

Posted on 24 January 2013 by VRS  |  Email |Print

An Omani sovereign wealth fund is in advanced talks to buy a near 42 percent stake in Oman National Investment Corp Holding (ONIC) from a unit of Dubai’s ruler’s personal investment firm, two sources aware of the matter said.
Oman Investment Fund, which has a regional and global investment portfolio, is in discussions to buy the stake, currently worth about US$59m, the sources said, speaking on condition of anonymity as the matter has not been made public………………………………………..Full Article: Source

Qatar eyes USD50bln yearly savings to boost reserves

Posted on 24 January 2013 by VRS  |  Email |Print

Qatar expects to save about $50bn each year until 2017 to take its international reserves — including sovereign wealth assets — to $485bn from the present estimated $215bn, according to International Monetary Fund estimates.
The Qatari have authorities indicated that they would continue to formulate budgets based on conservative oil prices, which, given the baseline assumptions for oil prices in the medium-term, would in IMF staff’s estimation enable continued large savings of about $50bn each year until 2017 through the Qatar Investment Authority, the Breton Woods institution said in its Article IV consultation report………………………………………..Full Article: Source

Future Fund defends airport asset takeover tactics

Posted on 24 January 2013 by VRS  |  Email |Print

Despite claims from investors that the Future Fund may have breached shareholder agreements regarding its $2 billion takeover of the airport assets of Australian Infrastructure Fund Ltd, the sovereign pension fund has said it is confident in its legal position. Several co-investors are seeking legal advice and potentially an injunction against the sale of airport holdings in Perth, Melbourne and the Gold Coast to the Future Fund.
They claim that the individual valuations placed on the AIF airport holdings by the Future Fund were distorted to avoid pre-emption over the most popular assets, which could represent a breach of the terms of the separate shareholder agreements government relations between the investors in the assets………………………………………..Full Article: Source

Wanted: Sovereign wealth funds to join Dell deal

Posted on 24 January 2013 by VRS  |  Email |Print

Mega U.S. buyout deals involving public investors in consortiums are a rare occurrence. Several large sovereign funds and public investors are keen on these types of consortium deals; however, they are stapled with unwanted public attention. In addition, if the investment sours, then public funds won’t hear the end of it in the media and board meetings.
Dell Inc. is contemplating going private and has formulated a special committee to assess the best possible outcomes. Silver Lake Partners, a private equity firm, is trying to assemble partners for a consortium to take Dell private. The leveraged buyout price according to news sources was speculated to be at US$ 13 to 14 per share. This would make Dell a mega buyout………………………………………..Full Article: Source

$10 bln out of the National Oil Fund has gone to nowhere: President Nazarbayev

Posted on 24 January 2013 by VRS  |  Email |Print

Kazakhstan earmarked $ 10 billion out of the National Oil Fund [accumulating windfall oil revenues] to combat the financial crisis. However, the money has gone nowhere, a Tengrinews.kz journalist reports, citing President Nazarbayev as saying at a sitting in his Akorda Residence held to tally 2012 results.
“It’s easy to ask for money out of the National Oil Fund. The $ 10 billion allocated to combat the financial crisis is gone. There is no pay-off”, President said. According to President, “country’s banks are begging for the National Oil Fund’s money rather than working properly to earn money”………………………………………..Full Article: Source

Azerbaijani oil fund determines investment portfolio structure for 2013

Posted on 23 January 2013 by VRS  |  Email |Print

Some 85 per cent of the total value of the investment portfolio of Azerbaijani state oil fund SOFAZ for 2013 will be formed by monetary market instruments and the debt market. This is stipulated by the investment policy for 2013, approved by President Ilham Aliyev, according to Trend news agency.
Up to five per cent of the investment portfolio may be invested in stocks, up to five per cent in real estate and five per cent in gold, the document says. The projected total cost (average amount) of SOFAZ’s investment portfolio for 2013 was set at 25.2 billion manat, while as of late 2012 it was projected at 23 billion manat………………………………………..Full Article: Source

Push for UAE investment by sovereign wealth funds

Posted on 23 January 2013 by VRS  |  Email |Print

The Financial Services Association wants to encourage the UAE’s vast sovereign wealth funds to invest in local bourses to boost market liquidity and help develop a domestic industry for expatriate pensions. The industry group is also hoping to engage with the Central Bank and the Securities and Commodities Authority (SCA) as they conduct wholesale reform of financial regulation.
The FSA, which first found its voice as a means of uniting industry opinion during the outcry over the SCA’s regulation of mutual funds last year, is now seeking to actively influence policy decisions and promote the health of the market, said Arwa Hamdieh, the association’s co-founder………………………………………..Full Article: Source

Abu Dhabi Investment Authority recruits for equities

Posted on 23 January 2013 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA) has appointed Gregory Eckersley as global head of internal equities, effective immediately. Eckersley will be responsible, alongside senior management, for developing and implementing investment strategy for the internal equities department, as well as overseeing the activities of all internally-managed portfolios.
His role will also include oversight of risk management and due diligence processes. Based in Abu Dhabi, Eckersley will report to Mohamed Darwish Al Khoori. Eckersley joins ADIA with 16 years experience at AllianceBernstein. From 2006 until his departure in 2011, he was responsible for managing AllianceBernstein’s global and large cap growth equity portfolios based in New York………………………………………..Full Article: Source

Paris property seen in line for more sovereign wealth investment

Posted on 23 January 2013 by VRS  |  Email |Print

More sovereign wealth fund capital is likely to be invested in Paris property as its managers come under rising pressure to find the core assets and place growing amounts of national savings, say French property specialists. Malaysia’s PNB may be the next to jump the Channel from London following Hong Kong’s Monetary Authority and, more recently, Azerbaijan’s SOFAZ.
Olivier Gerard, President of Cushman & Wakefield France, which advised the State Oil Fund of Azerbaijan (SOFAZ) on its recent acquisition – a €135m historic office asset on the Place Vendome - said Paris is next in line for sovereigtn capital previously most active in New York and London………………………………………..Full Article: Source

New Zealand Super on track after strong 2012

Posted on 23 January 2013 by VRS  |  Email |Print

The New Zealand Superannuation fund is ahead of its long-term target after notching up strong returns in 2012, the latest data show. Since the fund’s launch in September 2003 it has returned 7.92%, exceeding the 90-day Treasury Bill rate by 2.84%.
The Fund’s long-term performance target is to beat the Treasury Bill rate by at least 2.5%. The New Zealand Superannuation fund returned 19.17% for the 12 months to 31 December 2012 and finished the year at a record high for the month-end of $20.92 billion, up from $17.73 billion at the end of 2011……………………………………….Full Article: Source

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