Wed, Sep 3, 2014
A A A
Welcome sandeep.kottawar@wns.com
RSS

Sovereign Wealth Funds Briefing - Archive | January, 2013

Foreign stocks boost Alaska Permanent Fund

Posted on 23 January 2013 by VRS  |  Email |Print

The easing of fears over the European debt crisis and the state of China’s economy led to a boost in foreign stocks held by the Alaska Permanent Fund Corp. Officials with the corporation that oversees Alaska’s oil wealth portfolio says the fund ended the second quarter of the fiscal year with a return of 2.7 percent.
The corporation says the fund is up 7.3 percent for the year, and had a value Dec. 31 of $43.7 billion………………………………………..Full Article: Source

Azeri State Oil Fund assets grew 14.5pct to $34.1 bln in 2012

Posted on 22 January 2013 by VRS  |  Email |Print

Azerbaijan’s State Oil Fund, known as Sofaz, said its assets grew 14.5 percent last year to $34.1 billion as of Jan. 1. Sofaz, established in 1999 to manage the Caspian Sea nation’s income from sales of oil and natural gas, transferred $12.6 billion to Azerbaijan’s state budget, according to a statement e-mailed by the Baku-based fund today.
The fund channeled $382 million to fund construction of housing for people displaced by the war with neighboring Armenia over the Nagorno-Karabakh region, according to the statement. It invested $255 million in reconstruction of the Samur-Absheron irrigation system and spent $152 million on the Baku-Tbilisi- Kars railway project, Sofaz said………………………………………..Full Article: Source

S. Korea’s sovereign fund reaps in abundant in 2012

Posted on 22 January 2013 by VRS  |  Email |Print

Korea Investment Corporation (KIC), South Korea’s sovereign wealth fund, saw its investment returns surpass benchmark last year as returns from stocks and bonds investment increased amid the persistent strategy to diversify portfolio from the long-term perspective, the sovereign fund said Monday.
KIC’s returns of investment from conventional assets such as stocks and bonds reached 11.83 percent in 2012, topping the benchmark yield of 11.17 percent, the sovereign wealth fund said in a statement. The figure was a rebound from a minus 3.32 percent yield tallied in the previous year, and it marked the highest in three years………………………………………..Full Article: Source

Super fund eyes farms offshore

Posted on 22 January 2013 by VRS  |  Email |Print

The New Zealand Superannuation Fund is considering buying more overseas farmland amid growing demand for food in emerging markets like China and Indonesia.The fund’s general manager of investments, Matt Whineray, has told Reuters news agency that the $21 billion fund is aiming to increase its allocation for crop, dairy and livestock farming operations from less than 1% to 3%.
The Fund is also also interested in assets that struggling European banks may sell to improve their capital base as well as catastrophe bonds issued by firms offering insurance against natural disasters in the United States, Japan and Europe………………………………………..Full Article: Source

Impasse over the SWF: Don’t just blame the governors

Posted on 22 January 2013 by VRS  |  Email |Print

The law establishing the Nigerian Sovereign Investment Authority (NSIA) was approved in May 2011. Nigeria’s progress towards joining the club of nations with a fully operational sovereign wealth fund (SWF) has been painfully slow, and the headline cause of the delay has been the resistance of the state governors. It has been said that Nigeria is the only member of OPEC without a fund in operation.
This can be challenged semantically but there are other high-profile nations outside the club. The UK springs to mind in this context. We can look at weaknesses in the British physical infrastructure and wonder what impact savings from North Sea oil taxes for a rainy day might have had……………………………………….Full Article: Source

Fund set up for sharing wealth

Posted on 22 January 2013 by VRS  |  Email |Print

The National Indigenisation and Economic Empowerment Fund has created a platform for equitable distribution of resources to all Zimbabweans, analysts have said. While the fund was established mainly to warehouse shares for future acquisitions by black Zimbabweans, its function has been expanded to achieve broad-based empowerment through the provision of some financing mechanisms to the economy.
The fund will, among other functions, be responsible for national projects such as financing infrastructure projects, budgetary support, provision of concessionary loans to industry and funding for the informal sector, as well as critical social programmes………………………………………..Full Article: Source

Russia Reserve Fund to be Increased by 50pct to $90 bln

Posted on 22 January 2013 by VRS  |  Email |Print

Russia will increase its rainy day Reserve Fund by a half, or 900 billion rubles ($29.3 billion), to reach a total of RUB2.8 trillion–slightly more than expected thanks to increased revenue from oil and gas, the finance ministry said on its website Monday.
The Fund should help even out any fiscal consequences of a potential drop in oil prices to $60-$70 per barrel–currently at almost $95 per barrel in Europe–said Julia Tsepliaeva, head of Market Economics Russia and CIS at BNP Paribas, in a research note………………………………………..Full Article: Source

China boosts Kuwait’s quota for investment

Posted on 21 January 2013 by VRS  |  Email |Print

China’s foreign exchange regulator has increased the amount which Kuwait’s sovereign wealth fund can invest directly in the Chinese securities markets to $1 billion. The quota allows the fund to buy yuan-denominated stocks and bonds. Only five other foreign investors in China have quotas as large as $1bn.
They are Qatar Holding, the Hong Kong Monetary Authority, Norway’s Norges Bank, Government of Singapore Investment Corporation and Singapore-based investment firm Temasek Fullerton. Kuwait has a sovereign wealth fund managing assets well in excess of $300bn. The fund said last October that its investments in greater China, including Hong Kong, had grown to $15bn………………………………………Full Article: Source

Sovereign wealth funds poised to bridge funding gap

Posted on 21 January 2013 by VRS  |  Email |Print

Sovereign wealth funds, which command some of the world’s largest cash mountains, are expected to increase investments in private equity as Europe’s banks, pension funds and insurers retreat from the industry under the pressure of capital regulation.
Buyout firms are now just as likely to contact Kuwait, Dubai, Abu Dhabi or Australia as well as attempting to impress traditional funding sources in France, Germany, or Italy, according to market executives. Commodity-rich nations in the Middle and Far East are now playing a crucial role in the fundraising process………………………………………Full Article: Source

Malaysian sovereign wealth fund reports record gains, acquisition

Posted on 21 January 2013 by VRS  |  Email |Print

Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia, reported a 24.3% jump in the net value of its investment portfolio in 2012 to a record 86.9 billion Malaysia ringgit ($28.9 billion.) Khazanah noted that its annual gains handily outpaced the 14.1% increase logged by the Malaysian stock market’s Kuala Lumpur Composite Index.
In an annual review released Thursday, Khazanah cited its property development investments in Malaysia’s southern-most state of Johor Bahru, bordering Singapore, as well as initial public offerings by portfolio companies IHH Healthcare Berhad and cable-TV network Astro Malaysia Holdings Berhad, as factors contributing to its annual gains………………………………………Full Article: Source

Wealth funds can tap low-carbon economy

Posted on 21 January 2013 by VRS  |  Email |Print

Energy and finance leaders discussed ways to encourage greater private sector investment in renewable energy and low-carbon, climate-friendly projects as a tactic to mitigate climate change and diversify the global energy mix.
Specifically, leaders focused on the growing opportunities for sovereign wealth funds, development banks and pension funds to view the new energy industry as a growth opportunity, especially in developing economies………………………………………Full Article: Source

Temasek won’t join Silver Lake for Dell buyout

Posted on 18 January 2013 by VRS  |  Email |Print

Singapore state investor Temasek Holdings Pte Ltd is not interested in investing in Dell Inc as part of a consortium led by private equity firm Silver Lake Partners, a person with knowledge of the matter said.
“It’s not happening,” the person familiar with the situation told Reuters on Thursday, responding to media reports that Temasek is one of the potential investment partners Silver Lake has tapped to join. A Temasek spokesman declined to comment on market speculation………………………………………..Full Article: Source

Khazanah net assets jump 24pct after IHH Healthcare, Astro IPOs

Posted on 18 January 2013 by VRS  |  Email |Print

Khazanah Nasional Bhd., Malaysia’s state investment company, said the value of its holdings rose 24 percent last year after making gains from divesting shares in companies, including Asia’s biggest hospitals operator.
The net asset value of Khazanah’s investments climbed to 86.9 billion ringgit ($29 billion) at the end of 2012 from 70 billion ringgit a year earlier, the Kuala Lumpur-based fund said in a statement today. It outperformed a 10 percent gain in the benchmark FTSE Bursa Malaysia KLCI Index, which closed the year at a record………………………………………..Full Article: Source

Khazanah says end-2012 investments at $40.3 bln

Posted on 18 January 2013 by VRS  |  Email |Print

Khazanah Nasional Bhd , Malaysia’s state investment arm, saw its total portfolio value swell 12 percent to 121.6 billion Malaysian ringgit ($40.3 billion) at the end of last year, a top executive said. Azman Mokhtar, managing director of Kuala Lumpur-based Khazanah Nasional Bhd, said the increase reflected the success of the firm’s investment strategy.
“We believe the portfolio is balanced and well-positioned to benefit from exposure into the Asia-Pacific growth region as well as several dynamic sectors that we expect to continue outperforming,” Azman told reporters at an annual review on Thursday………………………………………..Full Article: Source

Khazanah MD brushes off suggestions for a privatised MAS

Posted on 18 January 2013 by VRS  |  Email |Print

Khazanah Nasional Bhd managing director Tan Sri Azman Mokhtar has brushed off suggestions that flag carrier Malaysia Airlines should be taken private. “When you take something private, you have to pay above the market price. It does not put money into the company, that goes to the seller. But the operation needs money. Do those suggesting this realise this?
“Yes, we can take it private, but that doesn’t solve any problems. In fact you have to pump in more money because now you own 100%,” he told the media at the state investment firm’s annual review………………………………………..Full Article: Source

Khazanah to buy Aviva’s Malaysian insurance JV

Posted on 18 January 2013 by VRS  |  Email |Print

Canada’s Sun Life Financial Inc and Malaysian state investor Khazanah will buy the Malaysian insurance joint venture of Britain’s No.2 insurer Aviva Plc and lender CIMB Group.
The deal helps Sun Life, Canada’s No. 3 insurer, expand in Southeast Asia, a region that insurers are increasingly interested in because of its rapid growth, high savings rates, and young population. Aviva is exiting markets across the world to boost its underperforming share price………………………………………..Full Article: Source

CIC eyes more investments

Posted on 18 January 2013 by VRS  |  Email |Print

China Investment Corp. (CIC) will expand its investments in manufacturing and real estate this year in search of better returns, says Lou Jiwei, chairman of the country’s sovereign wealth fund.
Lou said that CIC long focused on investments in the financial and commodities sectors, but this year it would increase investment in manufacturing in a bid to further diversify. CIC would also increase investment in industries with stable returns, such as real estate and infrastructure………………………………………..Full Article: Source

Middle Eastern sovereign funds seek new assets

Posted on 18 January 2013 by VRS  |  Email |Print

Middle Eastern sovereign wealth funds are likely to set their sights beyond their traditional investments of trophy assets in London over the next two years as spending climbs back towards boom levels.
Economists at CBRE said yesterday that investment flows from the Middle East into European property totalled about Dh20.2bn (US$5.5bn) last year - about 90 per cent of all Middle Eastern investment into property outside of the region………………………………………..Full Article: Source

Abu Dhabi sovereign wealth fund eyes stake in Mirvac’s Sydney tower

Posted on 18 January 2013 by VRS  |  Email |Print

The Abu Dhabi Investment Authority is in “extensive” talks with Mirvac Group to acquire a stake in 190-200 George St. in central Sydney, The Australian Financial Review reported Jan. 16.
The A$500 million office block is tipped as the new headquarters for Ernst & Young. AMP Capital holds a 50% option over the tower and is expected to acquire the half share within the “next few months,” according to the publication………………………………………..Full Article: Source

Azeri State Fund to double gold reserves, buy Asian real estate

Posted on 18 January 2013 by VRS  |  Email |Print

Azerbaijan’s State Oil Fund plans to double its gold holdings this year to 30 metric tons and invest in real estate in Asian capitals as it diversifies reserves. The fund, known as Sofaz, bought almost 15 tons of bullion last year as part of its plan to spend $1.5 billion to purchase 30 tons of gold in 2012 and 2013, Executive Director Shahmar Movsumov told state television channel AzTV.
Sofaz, which last month announced acquisitions of properties in London, Paris and Moscow, plans to focus on real estate in Asian capitals this year, Movsumov said………………………………………..Full Article: Source

“Kazakhstan-2050″ Strategy reviewed at Samruk-Kazyna Fund

Posted on 18 January 2013 by VRS  |  Email |Print

A Wednesday meeting at JSC “Samruk-Kazyna” National Welfare Fund” focused on the new “Kazakhstan-2050″ Strategy: new political course of a successful country”. The event brought together reps of the local maslikhat and the ‘Nur Otan’ People’s Democratic Party. The participants noted the party should use available resources to solve problems of the population.
Besides, those present pointed out in order to implement the new state-of-the-nation address of President Nazarbayev it is crucial to explain all the aspects of the document and new principles of the social policy to people………………………………………..Full Article: Source

Direct sovereign wealth fund transactions drop 36pct in 2012

Posted on 18 January 2013 by VRS  |  Email |Print

Data released earlier this week by the Sovereign Wealth Institute reveal that total direct investments made by sovereign wealth funds in 2012 was $57.3 billion. That figure is down 36% from 2011’s $89.5 billion, and down 46% from a high of $105.6 billion.
The largest growth by sector was seen in consumer staples, information technology, materials and real estate; while direct investments in media and entertainment, financials, telecom and industrials saw the greatest declines………………………………………..Full Article: Source

Britain could get shale gas ‘wealth fund’

Posted on 17 January 2013 by VRS  |  Email |Print

Britain could create its own “sovereign wealth fund” like oil-rich Gulf states to protect future windfalls from shale gas for the taxpayer, a minister suggested last night. John Hayes, an energy minister, said the Government has not ruled out setting up a fund to allow future generations to benefit from the expected boom in shale gas.
He said shale gas could have a “profound economic effect” on the UK, when money is raised from the sale of licences to drill shale gas and extra tax income………………………………………..Full Article: Source

Sovereign funds’ spending rebounds in quarter, Institute says

Posted on 17 January 2013 by VRS  |  Email |Print

Sovereign wealth funds’ direct investments picked up in the fourth quarter from a year earlier, signaling a rebound after spending dropped to a six-year low in 2012, the Sovereign Wealth Fund Institute said.
Full-year direct spending, which excludes money outsourced to other funds or asset managers, slumped 36 percent to $57.3 billion, the Las Vegas-based institute said in an e-mailed statement. That’s the lowest since 2006, when direct investments amounted to $14.8 billion, it said………………………………………..Full Article: Source

Norway handles oil wealth right, report says

Posted on 17 January 2013 by VRS  |  Email |Print

A new report has some advice for Canada when it comes to managing its oil wealth — be more like Norway. The study from the Canadian Centre for Policy Alternatives released Thursday calls for a more hands-on approach both provincially and federally toward developing the resource, divvying up its riches and reducing its environmental impacts.
Norway set up its Government Pension Fund Global in 1990. It is now the largest sovereign wealth fund in the world at $664 billion and continues to grow. By contrast, the Alberta Heritage Savings Fund, set up by the Lougheed government in 1976, contains only about $16 billion………………………………………..Full Article: Source

SWFs dominate big office investments in 2012

Posted on 17 January 2013 by VRS  |  Email |Print

Norway’s Government Pension Fund Global leads a slew of cash-rich sovereign wealth funds that were the most active players in the largest office investments in Europe during 2013. Norway’s €500 bn oil fund invested at least €1.5 bn in three of the largest office real estate investments last year, according to data compiled by PropertyEU Research.
The largest single deal was the sale-and-leaseback of Credit Suisse’s Uetlihof complex in Zurich for €830 mln………………………………………..Full Article: Source

Western over-regulation will drive investment to Asia: CIC

Posted on 17 January 2013 by VRS  |  Email |Print

The sovereign wealth fund’s executive VP, Jesse Wang, labels proposed US and UK regulatory change “anti-globalisation” and challenges Hong Kong to step into the breach. The deputy head of China’s $400 billion sovereign wealth fund CIC has ridiculed UK and US regulatory change and challenged Hong Kong to step into the breach as a global financial hub.
Speaking at the Asian Financial Forum in Hong Kong this week, Jesse Wang labelled Vickers Report recommendations for British banks to separate high street and investment banking operations as “anti-globalisation”………………………………………..Full Article: Source

Asiacell lures state funds in biggest mideast IPO since 2008

Posted on 17 January 2013 by VRS  |  Email |Print

Asiacell Communications PJSC, the Iraqi telecom operator planning the Middle East’s biggest initial share sale since 2008, has received commitments from sovereign-backed funds, according to the deal’s organizer.
Institutional investors from the Persian Gulf, Europe and the U.S. have registered orders, said Shwan Ibrahim Taha, chairman of Rabee Securities in Baghdad, the sole arranger of the initial public offering. “Some of these funds are sovereign backed,” he said in an e-mailed answer to questions yesterday without naming any of the funds………………………………………..Full Article: Source

Former AllianceBernstein manager joins Abu Dhabi SWF

Posted on 17 January 2013 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA) has hired former AllianceBernstein global equity manager Gregory Eckersley to run its equities division. The British manager has been appointed the $627 billion sovereign wealth fund’s global head of internal equities and will be in charge of the team that invests directly into global stocks.
He joins the SWF from hedge fund 1770 Capital Partners, a firm he co-founded in 2011 alongside two colleagues following his departure from AllianceBernstein where he had worked for 16 years………………………………………..Full Article: Source

Excess Crude Account rises to $9.2bln as FG, states, LGs share N567.7bln in December

Posted on 17 January 2013 by VRS  |  Email |Print

The Excess Crude Account (ECA) created to provide succour in rainy days including shoring up monthly revenue shortfalls currently stood at about $9.242 billion. The value of the ECA was made public Tuesday even as the Federation Account Allocation Committee (FAAC) shared total distributable revenue amounting to N567.708 billion to the three tiers of government for the month of December.
Gross revenue for the month increased by N11.600 billion to N581.059 billion compared to N569.459 billion received for the previous month………………………………………..Full Article: Source

Why you would be mad to work for a sovereign wealth fund

Posted on 17 January 2013 by VRS  |  Email |Print

With job cuts being rolled out across the financial sector, many professionals are eyeing opportunities at large sovereign wealth funds, which are recruiting heavily, particularly in the Middle East. In my experience, however, it would be like signing up to the civil service.
In my eyes you would be mad to take a role at one of the large SWFs in the region – they are huge, unwieldy behemoths, where the decision-making process is arduous and wealth continues to expand regardless of their investment strategies………………………………………..Full Article: Source

SWF transactions total more than $57bln in 2012, data shows

Posted on 16 January 2013 by VRS  |  Email |Print

Direct sovereign wealth fund transactions in calendar year 2012 totaled $57.3 billion, representing a 36% drop from the previous year of $89.5 billion, according to data from the Sovereign Wealth Fund Institute. Which sovereign wealth funds are most active? The Government of Singapore Investment Corporation (GIC), Temasek, and other wealth funds that don’t follow index strategy.
“It depends on the philosophy of the fund. You won’t have the Alaska Permanent Fund buying a large stake because if you look at their asset allocation, a lot it is externally managed. And they’ve done quite well,” the Sovereign Wealth Fund Institute’s President Michael Maduell said………………………………………..Full Article: Source

Future Fund to take flight with $2bln airport push

Posted on 16 January 2013 by VRS  |  Email |Print

The federal government Future Fund has been given approval to spend $2 billion buying stakes in a range of Australian and European airports. Investors in the Hastings Fund Management-controlled Australian Infrastructure Fund (AIX) on Tuesday voted to sell its holdings in the sought-after airport assets to the Future Fund.
The vote means the Future Fund can take control of AIX’s stakes in Perth Airport, Queensland Airports, Northern Territory Airports and the Australian Pacific Airports Corporation, which owns Melbourne and Launceston airports………………………………………..Full Article: Source

Australia Infrastructure Fund holders OK sales

Posted on 16 January 2013 by VRS  |  Email |Print

Australian Infrastructure Fund Ltd. shareholders approved a deal to sell the company’s assets, including interests in airports across the country and in Europe, to Australia’s sovereign wealth fund for 2 billion Australian dollars (US$2.1 billion).
Australia’s Future Fund, set up by the government six years ago to pay for civil servant pensions, has been gradually increasing its exposure to infrastructure. The A$80 billion fund offered A$3.22 per security for the assets, a 22% premium to the company’s share price as of Aug. 23, when the proposal was announced………………………………………..Full Article: Source

CIC eyes real assets, flags global risks

Posted on 16 January 2013 by VRS  |  Email |Print

China Investment Corporation is eyeing greater exposure to manufacturing, property and real-asset investments, says chairman and chief executive Lou Jiwei. Much of the investment by China’s sovereign wealth fund last year was into public stock and bond markets, but in 2013 it plans to allocate more directly to real assets and property.
China Investment Corporation (CIC) sees a “slow recovery” taking place this year, said Lou Jiwei, chairman and chief executive of the $400 billion fund, speaking at the Asian Financial Forum in Hong Kong this week………………………………………..Full Article: Source

CIC eyes more investments in manufacturing, property

Posted on 16 January 2013 by VRS  |  Email |Print

China Investment Corp. (CIC) will expand its investments in manufacturing and real estate this year in search of better returns, says Lou Jiwei, chairman of the country’s sovereign wealth fund.
Lou said on January 14 at the Asian Financial Forum in Hong Kong that CIC long focused on investments in the financial and commodities sectors, but this year it would increase investment in manufacturing in a bid to further diversify. CIC would also increase investment in industries with stable returns, such as real estate and infrastructure………………………………………..Full Article: Source

China fund may cut US debt holdings

Posted on 16 January 2013 by VRS  |  Email |Print

China’s sovereign wealth fund, which has more than 480 billion in assets, could cut holdings of US Treasury Bonds as they are becoming a less attractive investment, state media said Tuesday.
The Shanghai Securities News quoted Lou Jiwei, chairman of sovereign wealth fund manager China Investment Corp (CIC), as telling a conference in Hong Kong on Monday that the US economic recovery had made other investments appealing………………………………………..Full Article: Source

Shareholders of Singapore’s Olam approve fee payment to Temasek

Posted on 16 January 2013 by VRS  |  Email |Print

Shareholders of Olam International Ltd approved the payment of US$6.4 million (RM) in fees to a unit of Singapore state investor Temasek Holdings Pte Ltd for fully backing the embattled commodity firm’s US$1.2 billion bonds-with-warrants issue.
The sub-underwriting fee, which had been expected to receive approval, is being paid to Temasek, also Olam’s second-biggest shareholder, as the Singapore commodities firm taps the debt market for funds to bolster its financial position………………………………………..Full Article: Source

Abu Dhabi fund appoints Eckersley to oversee internal equities

Posted on 16 January 2013 by VRS  |  Email |Print

The Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, appointed Gregory Eckersley as global head of its internal equities department, overseeing portfolios, risk management and the due- diligence process.
Eckersley joined ADIA from 1770 Capital Partners, a fund he jointly started in 2011 that focuses on global energy, mining and commodities, the Abu Dhabi-based sovereign wealth fund said………………………………………..Full Article: Source

Qatar withdraws from tender for Elliniko

Posted on 16 January 2013 by VRS  |  Email |Print

Qatar has pulled out of the bidding for the development of the site of Athens’s former international airport at Elliniko. The tender details issued by the Hellenic Republic Asset Development Fund (TAIPED) last week were only picked up by three interested parties instead of the four that the fund had short-listed for the second round of bidding.
The Qatari Diar Real Estate Investment Co, a subsidiary of the Qatar Investment Authority (QIA) that had initially taken part in the tender, did not come to sign the documents of confidentiality to receive the tender details for Elliniko………………………………………..Full Article: Source

UAE SWF assets put at $451bln

Posted on 16 January 2013 by VRS  |  Email |Print

Country’s oil revenue also climbed to all time high of over $124bn. Strong oil prices along with high output boosted the assets of the UAE’s sovereign wealth funds (SWFs) to all time high of around $451 billion at the end of 2012, according to a key Western financial group.
The country’s oil export earnings also soared to their highest level of more than $124 billion, pushing its current account balance to a new peak………………………………………..Full Article: Source

China’s sovereign wealth fund in big 2012 turnaround

Posted on 15 January 2013 by VRS  |  Email |Print

China Investment Corporation (CIC), the world’s biggest sovereign wealth investor said 2012 was a much better year for the $482-billion fund, with returns of over 10 percent. “2012 was a much easier year than 2011 and the returns are much better,” Chairman and Chief Executive of CIC, Lou Jiwei said. “[T]he final numbers have not come out…but we are confident our returns will be over 10 percent.”
Double digit returns would be a big turnaround for the fund, which suffered its first ever decline in profits in 2011. Net profit declined 6.1 percent in 2011 to $48.4 billion compared to 2010………………………………………..Full Article: Source

CIC chief hopes to cut treasury purchases

Posted on 15 January 2013 by VRS  |  Email |Print

China’s sovereign wealth fund hopes to reduce its reliance on purchases of U.S. Treasurys and boost investments in other assets as the U.S. economic recovery makes U.S. government debt less attractive, the Shanghai Securities News reported Tuesday, citing the fund’s head.
The report cited China Investment Corp. Chairman Lou Jiwei as telling a conference in Hong Kong that the fund would like to add more stocks to its portfolio. He didn’t provide a definite time frame for any investment shift, merely saying that over the long run the attractiveness of U.S. debt would diminish………………………………………..Full Article: Source

CIC seeks balanced portfolio

Posted on 15 January 2013 by VRS  |  Email |Print

China Investment Corp, or CIC, is to balance out its portfolio this year, as a China-led global recovery mitigates risks, said CIC Chairman Lou Jiwei on Monday. The nation’s sovereign wealth fund wants to stick closely to its investment guidelines after it “under-bought” in Europe and “over-bought” in the United States and emerging markets in 2012 in response to global economic uncertainties.
“Our view is that 2013 will see a slow recovery … but there won’t be bright highlights, so we have decided to go back to having balance,” said Lou at the annual Asia Financial Forum in Hong Kong………………………………………..Full Article: Source

Daimler CEO says not in talks with China Investment Corp

Posted on 15 January 2013 by VRS  |  Email |Print

Daimler AG is not aware of China Investment Corp’s (CIC) plans to take a stake in the company and is not in talks with CIC, Chief Executive Dieter Zetsche told reporters at the Detroit auto show on Monday.
Zetsche also said Daimler was in talks with China’s BAIC Group about its role in an initial public offering of BAIC’s passenger car unit………………………………………..Full Article: Source

India to woo sovereign funds to aid infrastructure projects

Posted on 15 January 2013 by VRS  |  Email |Print

As India firms ups its plans to set up a multi-billion dollar sovereign wealth fund (SWF) to finance big-ticket investment projects, the finance ministry is simultaneously working on a plan to channelise investments from the 30-plus sovereign wealth funds across the world to facilitate greater foreign direct investment (FDI) into India’s infrastructure sector.
The government has already planned periodic road shows for attracting investments from big international investors and sovereign funds across the world, said sources. As much as $5 trillion is staked in these 30-odd global SWFs with Abu Dhabi having the biggest wealth fund with a corpus of over $600 billion………………………………………..Full Article: Source

Hong Kong Exchange Fund to boost investments in emerging markets

Posted on 15 January 2013 by VRS  |  Email |Print

Hong Kong’s Exchange Fund will boost investments in emerging-market securities and yuan-denominated assets after posting its second-highest annual investment income on record.
The fund’s 4.4 percent return on investments last year brought income of HK$108.6 billion ($14 billion), Hong Kong Monetary Authority Chief Executive Norman Chan said at a briefing in the city yesterday. That compared with a 1.1 percent gain in 2011 and the 5.6 percent annual average return since 1994, according to a statement by the HKMA………………………………………..Full Article: Source

AIF investors OK $2bln sale of assets to Future Fund

Posted on 15 January 2013 by VRS  |  Email |Print

Australian Infrastructure Fund shareholders approved a deal to sell the company’s assets, including interests in airports across the country and in Europe, to Australia’s sovereign wealth fund for $2 billion.
Preliminary, or proxy votes, cast ahead of a meeting in Melbourne today showed 88 per cent of shareholders were in favour of the deal, while 10 per cent were against. “The proxies cast ahead of the meeting do appear to have carried the matter,” company chairman Paul Espie said at the meeting………………………………………..Full Article: Source

‘Future Fund’ assets $261bln, surplus At $52bln

Posted on 15 January 2013 by VRS  |  Email |Print

A rainy day fund managed by Kuwait Investment Authority (KIA) had assets currently worth more than $261 billion at the end of March last year, a local newspaper reported on Sunday citing a government audit.
Kuwait, one of the world’s richest countries per capita, puts a percentage of its annual revenues into the Future Generations Fund, a nest egg for when oil supplies diminish or for when the economy suffers other shocks………………………………………..Full Article: Source

UAE SWF assets put at $451bln

Posted on 15 January 2013 by VRS  |  Email |Print

Strong oil prices along with high output boosted the assets of the UAE’s sovereign wealth funds (SWFs) to all time high of around $451 billion at the end of 2012, according to a key Western financial group. The country’s oil export earnings also soared to their highest level of more than $124 billion, pushing its current account balance to a new peak.
Figures by the Washington-based Institute for International Finance (IIF) showed the assets of the Abu Dhabi Investment Authority (ADIA) and other SWFs in the second largest Arab economy gained nearly $25 billion in 2012 to end the year at $451 billion………………………………………..Full Article: Source

January 2013
M T W T F S S
« Dec   Feb »
 123456
78910111213
14151617181920
21222324252627
28293031