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Sovereign Wealth Funds Briefing - Archive | January, 2013

Is Sovereign wealth fund a right?

Posted on 15 January 2013 by VRS  |  Email |Print

The Nigerian government through the ingenuity of the current finance minister Dr. Ngozi Okonjo-Iweala and the approval of President Goodluck Jonathan has just established the National Sovereign Wealth Fund (NSWF) last year.
Financial pundits have already described the establishment of the Nigeria’s National Sovereign Wealth Fund as the most significant economic policy decision to have been taken by President Jonathan since coming into office as an elected President in May 2011. What is sovereign wealth fund and why is this a human right if one may ask?……………………………………….Full Article: Source

Saudi sovereign wealth fund buys stake in utility ACWA Power

Posted on 14 January 2013 by VRS  |  Email |Print

Saudi Arabian sovereign wealth fund Sanabil and the nation’s pension agency acquired 19 percent of ACWA Power International, a company that invests in power and water projects in the kingdom and regionally.
Riyadh-based ACWA issued 89.5 million new shares to Sanabil and the Saudi Public Pension Agency, each of which will have a seat on ACWA’s board of directors, the company said in an e- mailed statement yesterday. Morgan Stanley (MS) advised ACWA on the transaction, which will give Sanabil and the pension agency stakes of 13.7 percent and 5.7 percent, respectively. No financial details were given in the statement………………………………………..Full Article: Source

Kuwait Investment Authority had $261bln assets in 2012

Posted on 14 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.
Oil-producing 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

AUB sells Ahli Bank 33pct stake to sovereign fund

Posted on 14 January 2013 by VRS  |  Email |Print

Ahli United Bank, Bahrain’s largest listed lender, has sold most of its 33 percent stake in Qatar’s Ahli Bank to sovereign fund Qatar Foundation. The sale, involving all but 1,000 of Ahli United’s 37.38 million shares, still requires the approval of Ahli Bank shareholders, an Ahli Bank filing to the Qatar bourse said on Thursday.
No price was given but the stake would have been worth 1.93 billion riyals ($530.2 million) at Wednesday’s 51.70 riyals closing price. Ahli Bank, Qatar’s seventh-largest lender by market value, had said in November its strategic partner would offload its holding and that the proposed sale was being reviewed by the Qatar central bank. The purchase by a Qatari sovereign fund not known for investments in the financial sector could indicate a lack of interest among other commercial banks, a Dubai-based banker said………………………………………..Full Article: Source

Norway excludes nuclear arms component makers from oil fund

Posted on 14 January 2013 by VRS  |  Email |Print

Norway’s sovereign-wealth fund excluded U.S.-based engineering companies Babcock & Wilcox Co. (BWC) and Jacobs Engineering Group Inc (JEC) from its investment portfolio because of their production of nuclear arms components.
The $700 billion Government Pension Fund Global has sold its shares in both companies, the Finance Ministry said……………………………………….Full Article: Source

Azerbaijani State Oil Fund brings first batch of gold

Posted on 14 January 2013 by VRS  |  Email |Print

Approximately, 1 ton (32 150 troy ounces) of the purchased gold, conforming to the requirements of LBMA was transferred to Azerbaijan by UK’s Brink’s Global Services on January 11, 2013 and temporarily stored in the vaults of the Central Bank of the Republic of Azerbaijan, SOFAZ said.
Some 14 934 kg of gold (480 146 troy ounces) was included into SOFAZ investment portfolio as of December 31, 2012. The gold purchased by the Fund is temporarily stored in JP Morgan’s London vault considering its experience and competitive storage costs………………………………………..Full Article: Source

Morgan Stanley M&A banker Popper to join Temasek

Posted on 14 January 2013 by VRS  |  Email |Print

Morgan Stanley’s top mergers and acquisitions banker in Southeast Asia Jonathan Popper will join Singapore state investor Temasek Holdings to lead its M&A team, two sources with knowledge of the matter said on Friday.
Popper’s departure could affect the long-running battle for Fraser & Neave Ltd as he was involved in advising the Thai group that is keen to take over the Singapore property and soft drinks conglomerate………………………………………..Full Article: Source

Temasek, KKR eyeing stake in Alliance Tire

Posted on 14 January 2013 by VRS  |  Email |Print

Private equity firms including Singapore state investor Temasek Holdings and KKR & Co are separately in advanced talks to buy Warburg Pincus LLC’s majority stake in Indian tyre maker Alliance Tire Group for about $400 million, three sources with direct knowledge of the matter said.
Other interested bidders include US private equity firms Advent International and TPG Capital, said the sources, all of whom declined to be named as the details of a possible deal are not yet public. Alliance Tire aimed to generate sales of more than $600 million in 2012, its website showed………………………………………..Full Article: Source

Khazanah, Sun Life Financial to buy Aviva’s M’sian ops

Posted on 14 January 2013 by VRS  |  Email |Print

Canada’s Sun Life Financial and Malaysian state investor Khazanah have agreed to buy Aviva’s Malaysian insurance joint venture with lender CIMB for about RM1.7 billion (S$690 million), sources said.
The deal will help the Canadian company expand its Asian footprint. The consortium of Sun Life Financial and Khazanah Nasional edged out rival Manulife Financial Corp to win the eight-month-old auction, sources familiar with the sale process said………………………………………..Full Article: Source

Future fund mentioned in February last year is in progress at last

Posted on 14 January 2013 by VRS  |  Email |Print

Former prime minister John Howard built a future fund during the boom period of the early 2000s and fossil fuel-rich Norway has a sovereign wealth fund which quarantines royalties for future generations.
A State Government spokesman said “some internal work” had been conducted on progressing the future fund concept, but it was likely outside experts would soon be called in. “The Government is now looking to commission a firm to provide advice on the establishment of a future fund and how it should sit in Government,” he said………………………………………..Full Article: Source

Canada overdue for new SWFs, says report

Posted on 14 January 2013 by VRS  |  Email |Print

Canada is ready and overdue for new sovereign wealth funds to preserve its resource wealth for later generations, according to new report from the Canadian International Council.
“I think every province that has revenues from non-renewable resources should set one up,” Madelaine Drohan, the report’s author, said. “And the ones that have them should be putting away more money. When the Alberta Heritage Fund was started out in 1976, contributions were supposed to be 30% of oil and gas royalties. Now, if you compare Alberta’s contribution record with that of Norway’s, Alberta would look pretty bad.”……………………………………….Full Article: Source

RBC boosts Mideast wealth fund assets by 20pct on risk profile

Posted on 11 January 2013 by VRS  |  Email |Print

A Royal Bank of Canada executive said the cash, stocks, bonds and other assets it holds on behalf of Middle East sovereign-wealth funds rose by 20 percent in 2012 as the investment pools diversify away from riskier lenders.
Cormac Sheedy, senior executive officer for the Middle East and Africa at the bank’s RBC Investor Services Trust unit, said the firm stepped up its efforts in 2012 to compete with London and New York-based banks such as HSBC Holdings Plc (HSBA), State Street Corp. (STT), JPMorgan Chase & Co. (JPM) and Bank of New York Mellon Corp. (BK) that traditionally dominated custodian services in the region………………………………………..Full Article: Source

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Nigeria: SWF investment must be policy-driven – Analysts

Posted on 11 January 2013 by VRS  |  Email |Print

Some economists have called on the Federal Government to ensure that the investment of the Sovereign Wealth Fund is transparent and policy-driven. According to them, by institutionalising the process and making monthly updates on investment available to Nigerians, the confusion that occurs when there is a change of leadership in the country will be avoided.
The economists made the call, in separate interviews with our correspondent, while expressing concerns about the SWF………………………………………..Full Article: Source

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China eyes Australia’s dairy sector

Posted on 11 January 2013 by VRS  |  Email |Print

With growing demand to keep its population fed, China is on the lookout for assets around the world as they seek to cash in on Asia’s booming food demand and secure sufficient supplies for the future.
China’s eyes are currently on Australia, with the Wall Street Journal reporting that China Investment Corp (CIC) a, Chinese sovereign wealth fund, is among three large funds vying to take a stake in Australian dairy producer Van Dieman’s Land Co (VDL)………………………………………..Full Article: Source

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Temasek raises S$843 mln through Shin stake sale

Posted on 11 January 2013 by VRS  |  Email |Print

A unit of Temasek Holdings has raised around S$843 million through the sale of a 10.3 per cent stake in Thai telecommunications group Shin Corp, benefiting from a recent rally in the stock. Cedar Holdings, 49 per cent owned by Temasek, sold 330 million Shin shares at 63.25 baht each, raising 20.87 billion baht (S$843 million), IFR reported. The term sheet, seen by Reuters, had an indicative price of 62.75 to 63.75 baht per share.
This was the third time in more than two years Cedar has diluted its holding in Shin, after it sold nearly 8 percent of Shin in August 2011 and another 6.2 percent in January 2012………………………………………..Full Article: Source

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Temasek affiliate cuts Shin Corp stake

Posted on 11 January 2013 by VRS  |  Email |Print

An affiliate of Singapore state investment company Temasek Holdings has sold part of its stake in Thai telecommunications holding company Shin Corp. (INTUCH) for around $687 million as Temasek reshuffles its portfolio, a person with knowledge of the deal said Thursday.
Shin Corp. was founded by former Thai Prime Minister Thaksin Shinawatra, the brother of current Prime Minister Yingluck Shinawatra. It has major stakes in Thailand’s largest cellular-service provider and its sole satellite operator………………………………………..Full Article: Source

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Mystery deal gets even murkier

Posted on 11 January 2013 by VRS  |  Email |Print

Temasek Holdings, Singapore’s state-owned investment company, appears to be on course to divest its controversial holdings in Shin Corp. You might recall that the Shin Corp deal in 2006 led to a yellow-shirt revolt against Thaksin Shinawatra. The military stepped in to oust him from power. Thailand has since suffered from political instability, with the ghost of Thaksin casting a dark shadow over the whole country.
It emerged on Wednesday that Temasek and its partners in Cedar Holdings Ltd sold 330 million Shin Corp shares at Bt63.25 apiece for a total of Bt20.87 billion. The price was a 5.6 per cent discount on Shin Corp’s Wednesday close at Bt67. But the buyer or buyers remain a mystery………………………………………..Full Article: Source

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U.S. objects to MSR Resort bankruptcy plan

Posted on 11 January 2013 by VRS  |  Email |Print

The United States government has objected to a bankruptcy reorganization plan that calls for the sale of MSR Resort hotel group to a Singapore sovereign wealth fund, saying it is an attempt to dodge taxes. The plan creates tax liabilities of $331 million with no recourse for the Internal Revenue Service (IRS) to recover them, Preet Bharara, U.S. attorney for the Southern District of New York, said in an objection filed on Wednesday.
The Government of Singapore Investment Corp bid $1.5 billion for the hotels group, including the Arizona Biltmore Resort & Spa in Phoenix and Grand Wailea Resorts Hotel & Spa in Hawaii, in August. The hotel group is owned by the hedge fund Paulson & Co. GIC is a sovereign wealth fund that manages Singapore’s foreign reserves and is a large real estate investor in the United States. The fund is a lender to MSR and made an offer shortly after the group filed for bankruptcy protection…………………………………………Full Article: Source

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Ireland’s pensions reserve fund earmarks EUR500mln for SMEs

Posted on 11 January 2013 by VRS  |  Email |Print

The National Pension Reserve Fund (NPRF) has teamed up with international “vulture funds” to buy up struggling businesses and, it is hoped, return them to viability. The joint venture with “turnaround” specialist Better Capital is one of three new initiatives that will see the NPRF pump €500m of the €14bn it manages into helping stabilise small- and medium-sized enterprises (SMEs), with loans and investment.
A further €350m is being provided by international investors as part of the same initiative. UK-based Jon Moulton’s Better Capital has teamed up to create a new €100m SME Turnaround Fund, financed 50:50 with the NPRF, to buy companies that are on the point of collapse but have the potential to be restructured………………………………………..Full Article: Source

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China’s sovereign wealth fund vies for Australian dairy stake

Posted on 10 January 2013 by VRS  |  Email |Print

China Investment Corp. is among three large funds vying to take a stake in Australian dairy producer Van Diemen’s Land Co., or VDL. Executives from China’s US$482 billion fund are due to visit Tasmania state in February for further discussions over investing in the company, which is seeking to raise 180 million Australian dollars (US$189 million) to expand its milk production, two people familiar with the matter said.
VDL Chief Executive Michael Guerin told Deal Journal Australia the company had signed agreements for three large funds to conduct due diligence, but declined to confirm whether CIC was among them. All three have put in proposals featuring varying amounts of equity and debt, and he expects to finalize the deal by the middle of the year, he added………………………………………..Full Article: Source

China’s CIC state fund oversees a fortune

Posted on 10 January 2013 by VRS  |  Email |Print

China is said to be planning to buy a stake in German car and truck maker Daimler. Managing the deal financially would be the China Investment Corporation (CIC). But who calls the shots there?
China own the world’s biggest currency reserves, with around three trillion euros ($3.9 trillion) at its disposal. It’s the prime task of the China Investment Corporation (CIC) to manage a significant part of those reserves and to invest them profitably. The CIC, which was founded in 2007, has capital of almost 400 billion euros, making it one of the world’s biggest investment companies………………………………………..Full Article: Source

CIC, partners launch Europe-China growth fund

Posted on 10 January 2013 by VRS  |  Email |Print

China Investment Corporation (CIC), the country’s sovereign wealth fund, announced Thursday it has launched a joint growth fund with the Belgian Federal Holding and Investment Company and private equity firm A CAPITAL to invest into European groups to boost their growth in China.
The new fund is targeting solidly performing European midcaps with revenues over 100 million euros and strong growth potential in China, according to a joint statement released by the three companies………………………………………..Full Article: Source

Temasek Group pares shin stake with 20.9 bln baht stock sale

Posted on 10 January 2013 by VRS  |  Email |Print

Temasek Holdings Pte and its partners sold 20.9 billion baht ($687 million) of Shin Corp. (INTUCH) shares, paring its stake in the company that controls the biggest Thai mobile-phone operator, according to a term sheet.
Singapore’s state-owned investment company and its partners in Cedar Holdings Ltd. offered 330 million Shin shares at 63.25 baht each, according to the term sheet sent to investors………………………………………..Full Article: Source

Temasek unit to raise $845mln in Shin Corp share sale

Posted on 10 January 2013 by VRS  |  Email |Print

A unit of Singapore investment firm Temasek Holdings will raise US$687 million (S$845 million) through the sale of its 10.3 per cent stake in Thai telecommunications firm Shin Corp.
Cedar Holdings will sell 330 million Shin Corp shares at 63.25 baht (S$2.56) each, which would raise 20.87 billion baht, IFR reported. Its term sheet, seen by Reuters, had an indicative price of 62.75 baht to 63.75 baht per share……………………………………….Full Article: Source

Future Fund adds more US property to investment pie

Posted on 10 January 2013 by VRS  |  Email |Print

The $80 billion Future Fund has stepped up its investment in the US property market with a $US350 million ($333m) stake in a fund investing in US residential apartments and a $US59m investment in Dallas-based property company The Howard Hughes Corporation.
The investments, made last last year, are part of the Future Fund’s move to expand its exposure to international property. The fund had more than $2 billion invested in the North American property market out of its total $5.1bn property portfolio as of the end of September………………………………………..Full Article: Source

AIX backing a bid from Future Fund

Posted on 10 January 2013 by VRS  |  Email |Print

Australian Infrastructure Fund investors are likely to back a $2 billion bid by the Federal Government’s Future Fund, which will see a change of ownership for the Gold Coast Airport.
AIX, which owns the airport and several other major infrastructure assets in Australia and overseas, has entered into a binding conditional agreement to sell its holding to the Future Fund. Security holders will have a final say on the proposal on Tuesday when the extraordinary general meeting is staged in Melbourne and analysts said they expected investors to get behind it………………………………………..Full Article: Source

Super fund is giving up on cigarettes

Posted on 10 January 2013 by VRS  |  Email |Print

The superannuation fund for health and community services workers has become the latest fund to dump its investments in tobacco. The chief executive of the Health Employees Superannuation Trust Australia (HESTA), Anne-Marie Corboy, confirmed the fund had started removing tobacco investments from its portfolios, following a decision by the fund’s board late last year.
Ms Corboy said she expected the fund, which has more than 750,000 members, to have sold all tobacco investments by April………………………………………..Full Article: Source

National pension fund to invest in small firms

Posted on 10 January 2013 by VRS  |  Email |Print

The National Pension Reserve Fund is to invest in small businesses by establishing three new funds to provide equity, credit and restructuring investment to Irish SMEs. The NPRF will invest up to €500 million across the funds, which include an SME equity fund, an SME credit fund and an SME turnaround fund.
The turnaround fund will invest in underperforming businesses that are at or close to the point of insolvency but have the potential for financial and operational restructuring, while the credit fund will lend to larger SMEs and mid-size corporates………………………………………..Full Article: Source

Better Capital partners with Irish pension fund

Posted on 10 January 2013 by VRS  |  Email |Print

Jon Moulton’s private equity firm has formed a joint venture with the Irish National Pensions Reserve Fund to help turnaround small Irish companies. Under the deal, Better Capital will manage a €100m fund called the SME Turnaround Fund to invest in underperforming Irish businesses that have the potential for restructuring.
Ireland’s €14 billion National Pensions Reserve Fund will commit €50m of the funding, with the remainder provided by Better Capital’s BECAP12 Fund………………………………………..Full Article: Source

The case for sovereign wealth funds in Canada

Posted on 09 January 2013 by VRS  |  Email |Print

Norway has a resource-based sovereign wealth fund. So do Timor Leste and Angola, but not Canada’s federal government. These funds are used by federal governments to sock away revenues from oil and gas, mining, and other commodities. The savings are then invested, with the potential to create massive wealth for future generations.
Canada has two sub-national funds. The Alberta Heritage Savings Trust Fund was set up in 1976 and has now about $16 billion, while Quebec’s Generations Fund held $4.3 billion at the end of March, 2012………………………………………..Full Article: Source

Azerbaijani state oil fund expands scope of real estate investments

Posted on 09 January 2013 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) is considering an opportunity to buy property in Turkey, Singapore, Indonesia and Malaysia, SOFAZ said. SOFAZ said that in particular variants of purchasing property in Istanbul and central cities of Singapore, Indonesia and Malaysia are being considered.
“At present, all the variants are being considered, analysed and evaluated,” SOFAZ said. “Depending on the research results in this area and in accordance with SOFAZ’s investment strategy for 2013, the final decision will be made.”……………………………………….Full Article: Source

GIC’s Lim to keep investment process ‘robust’

Posted on 09 January 2013 by VRS  |  Email |Print

Government of Singapore Investment Corp. has appointed Lim Chow Kiat to succeed Ng Kok Song as Group Chief Investment Officer effective 1 February 2013. Lim is currently Ng’s deputy.
Lim, in a statement, said that Ng has been a great influence in developing the professional investment capability of GIC. “As GCIO, my focus will be to build on that capability and ensure that the GIC investment process remains robust………………………………………..Full Article: Source

China still doubtful over euro’s prospects

Posted on 09 January 2013 by VRS  |  Email |Print

Chinese officials remain worried about the state of the euro, the visiting French finance minister said yesterday, while repeating assurances the eurozone has stabilized and that France is on track for recovery.
The questions on the euro came from Chinese Vice Premier Li Keqiang, as well as from Lou Jiwei, the head of sovereign wealth fund China Investment Corp, Pierre Moscovici said. CIC officials have said as recently as last month that they were not optimistic about the outlook for the debt crisis in the euro zone. China has picked up infrastructure assets in Europe but has been more cautious about bond purchases especially from the more troubled euro zone members………………………………………..Full Article: Source

BRICking investment

Posted on 09 January 2013 by VRS  |  Email |Print

The Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC) sealed the deal to form a vehicle to invest mainly in Russia and the former Soviet Republics. The joint fund will start out with $2bn in capital with the figure set to go up to $4bn.
China was the first but by it won’t be the last Russian partner in constructing such platforms, as the one with Kuwait also being in the pipeline, Dmitriev added. “..We’ll announce 2 more in 3-4 months,” he said. On December 24 the RDIF signed an agreement with State Bank of India (SBI), another country in the BRIC club………………………………………..Full Article: Source

Chinese companies to control over 40pct of Kazakhstan’s oil shortly

Posted on 09 January 2013 by VRS  |  Email |Print

The share of Chinese companies in the Kazakhstan’s Oil and Gas industry will exceed 40% in 2013, KazTag reports, citing an unidentified source.
“After KazMunaiGas EP acquires stakes in Kazakhoil Aktobe, Kazakhturkmunai and Mangistau Investments B.V. from KazMunaiGas, the China’s share will grow substantially China Investment Corporation and its controlled companies already own 30% in KazMunaiGas EP”, the source stressed……………………………………….Full Article: Source

Alaska’s Permanent Fund dividend: Examining its suitability as a model

Posted on 09 January 2013 by VRS  |  Email |Print

Discussing the Alaska Permanent Fund (APF) and Permanent Fund Dividend (PFD) as a model both for resource policy and for social policy, contributors explore whether other states, nations, or regions would benefit from an Alaskan-style dividend.
Many other jurisdictions could create similar funds and dividends, but most of them under-tax resources, giving resources away to corporations who sell them back to the people. Alaska’s Permanent Fund Dividend looks back at the success of the APF and PFD, and it looks forward (using theory and empirical investigation) to see how the Alaska model can be of use in other places and how the model might be altered and improved………………………………………..Full Article: Source

Zimbabwe Empowerment Fund grows to $4.9bln

Posted on 08 January 2013 by VRS  |  Email |Print

The Government of Zimbabwe says the Sovereign Wealth Fund (SWF) has grown to a financial capacity of over $4 billion. The fund is expected to be used to ensure that the majority can effectively participate in the mainstream economy.
It was created after foreign owned mining companies ceded shareholding to the indigenous people under the 51-49% ratio as stipulated by the Indigenisation and Economic Empowerment Act 2007………………………………………..Full Article: Source

Azerbaijan’s Oil Fund may transfer up to 60pct of its investment portfolio to foreign managers

Posted on 08 January 2013 by VRS  |  Email |Print

Azerbaijani President Ilham Aliyev approved the main directions (program) of the State Oil Fund of Azerbaijan (SOFAZ) for 2013. SOFAZ investment program 2013 composes the following areas of expenditure:
financing of activities related to social welfare issues and accommodation of refugees and IDPs; transfer to the state budget; financing for the project of reconstruction of the Samur-Absheron irrigation system; funding for the project of new railway Baku-Tbilisi-Kars; financing of the State Program on education of Azerbaijan youth abroad in 2007-15;……………………………………….Full Article: Source

Oil Fund’s administrative costs limited to AZN 86.3 mln

Posted on 08 January 2013 by VRS  |  Email |Print

Estimated costs for managing the State Oil Fund of Azerbaijan (SOFAZ) have been approved by President Ilham Aliyev.
Under the relevant order, SOFAZ administrative costs are limited to AZN 86.3 million. Their basis will include purchase of non-financial assets for AZN 62.177 million, including buildings and structures for AZN 60 million. Bank expenditures will amount to AZN 6.238 million, labour payment AZN 3.887 million, capital repair of administrative and managerial assets AZN 2.4 million………………………………………..Full Article: Source

SOFAZ budget for 2013 approved with a deficit of AZN 2 bln for SOCAR projects

Posted on 08 January 2013 by VRS  |  Email |Print

The budget of the State Oil Fund of Azerbaijan (SOFAZ) for 2013 was approved with a phenomenal deficit of AZN 1.9 bn. Under the relevant presidential order, SOFAZ budget was endorsed with income of AZN 11.48 bn and expenditures of AZN 13.4 bn.
Fund’s net proceeds from the sale of hydrocarbons attributable to the share of Azerbaijan (excluding the cost of transportation of hydrocarbons, the cost of banking, customs clearance, independent survey, marketing, insurance, and except for the income attributable to investments or equity stake of SOCAR) amount to AZN 11.17 bn………………………………………..Full Article: Source

China wealth fund eyes stake in Daimler

Posted on 08 January 2013 by VRS  |  Email |Print

China’s sovereign wealth fund is considering buying a four to 10 per cent stake in German auto maker Daimler, the website of the official People’s Daily newspaper said at the weekend.
The potential purchase comes as China Investment Corp. (CIC), which had more than $480-billion from the wealth fund under management at the end of 2011, seeks bargains in Europe’s weak economy, said the website, quoting unnamed sources………………………………………..Full Article: Source

Daimler rises on report China wealth fund may buy stake

Posted on 08 January 2013 by VRS  |  Email |Print

Daimler AG (DAI) rose to a nine-month high after state-run Chinese newspaper People’s Daily reported the country’s sovereign-wealth fund may buy a stake in the world’s third-biggest maker of luxury cars.
China Investment Corp. may acquire a holding of 4 percent to 10 percent in Stuttgart, Germany-based Daimler, the People’s Daily said on its website today, citing an unidentified Internet posting. The story wasn’t carried in the newspaper’s print edition. Daimler Chief Executive Officer Dieter Zetsche has said repeatedly that he’s looking for a new long-term shareholder and would welcome an investor from China………………………………………..Full Article: Source

Daimler AG : CIC not in discussions to buy Daimler stake

Posted on 08 January 2013 by VRS  |  Email |Print

China Investment Corp. isn’t in discussions to buy a stake in German auto maker Daimler AG, according to people with direct knowledge of the matter. Citing weekend Chinese media reports, China’s People’s Daily Online website said on Monday that the Chinese sovereign wealth fund was about to buy a 4% to 10% stake in Daimler. Daimler shares were up 1.9% on Monday morning in Frankfurt.
One of the people with knowledge of the matter said CIC “isn’t in talks” to buy a Daimler stake………………………………………..Full Article: Source

HK’s forex reserves reach 317.3 bln USD in 2012

Posted on 08 January 2013 by VRS  |  Email |Print

Hong Kong’s official foreign currency reserve assets amounted to 317.3 billion U.S. dollars at the end of December last year, up 12.1 billion dollars from November, the city’s Monetary Authority announced Monday.
Including unsettled forward contracts, foreign currency reserve assets at the end of December stood at 317.3 billion dollars, compared with 306.8 billion dollars at the end of November………………………………………..Full Article: Source

Israel’s foreign currency reserves up in 2012

Posted on 08 January 2013 by VRS  |  Email |Print

Israel’s foreign exchange reserves stood at $75.866 billion at the end of December 2012, up slightly by $991 million from $74.875 billion at the end of 2011. The Bank of Israel also reported that the foreign exchange reserves rose $194 million in December 2012 from their level at the end of November. The reserves had fallen slightly in the previous two months.
The rise in December was due to a revaluation that increased the reserves by $338 million, and an increase of $67 million derived from private sector transactions. This was offset by government transfers abroad of $211 million………………………………………..Full Article: Source

China Investment Corp eyes Daimler stake

Posted on 07 January 2013 by VRS  |  Email |Print

China’s sovereign wealth fund plans to buy a 4 to 10 percent stake in German automaker Daimler AG, according to industry sources quoted in recent domestic media reports. The news in the Chinese-language press follows reports in late 2011 by Germany’s Manager magazine that Daimler has hired an investment bank to arrange a potential deal, with China Investment Corp considered the front-runner.
Daimler CEO Dieter Zetsche said at the time that the company would welcome additional investors from China. Recent reports on the potential CIC stake came after Abu Dhabi’s sovereign wealth fund Aabar sold its remaining 3.07 percent interest in Daimler last October………………………………………..Full Article: Source

CIC said to take stake in Mercedes-Benz

Posted on 07 January 2013 by VRS  |  Email |Print

China Investment Corp, the nation’s sovereign wealth fund, plans to buy a 4-10% stake in Mercedes-Benz, Yicai.com reported, citing people with knowledge of the issue. It was reported that Daimler AG sought investment from China as early as July 2011, and the German carmaker confirmed the intention five months later.
The rumor about CIC’s interest in Mercedes-Benz first surfaced in February 2012. It was not until recently the real size of the stake was disclosed. Daimler is seeking partnership with China as the eurozone economy continues to languish, market watchers say………………………………………..Full Article: Source

China’s investments prompt call for new rules

Posted on 07 January 2013 by VRS  |  Email |Print

The sovereign-wealth-fund talks were held under the auspices of the International Monetary Fund and produced what are known as the Santiago principles, for the Chilean city where the agreement was struck.
The funds committed to invest for commercial, not political, purposes; disclose more about their operations and investments; and abjure “inappropriate influence” by government owners. Outside analysts rank the funds’ compliance with the principles………………………………………..Full Article: Source

Sovereign funds plan to boost India exposure

Posted on 07 January 2013 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA), the world’s largest sovereign fund with assets under management of $627 billion, has set up a new “Active India” portfolio in its Internal Equities department to scale up investments in the country. This is part of a broader trend among sovereign wealth funds and multilateral investors looking to up their India exposure, amid worsening signs of Euro zone debt worries and a wobbly US recovery.
ADIA’s India portfolio is one of two new portfolios floated by the fund, the other being for Latin America. With this, the sovereign fund hopes to commence the build-out of teams under experienced fund managers to tap investment avenues, an executive privy to the exercise said………………………………………..Full Article: Source

A new CIO for Singapore’s sovereign wealth fund

Posted on 07 January 2013 by VRS  |  Email |Print

Singapore’s sovereign wealth fund will soon have a new chief investment officer, effective February 1, 2013. Lim Chow Kiat will succeed Ng Kok Song as the Government of Singapore Investment Corporation’s (GIC) Group Chief Investment Officer (GCIO).
Lim, 42, is currently the Deputy GCIO, after having joined the firm in 1993. Ng, 64, will be retiring after 42 years in the management of Singapore’s foreign reserves, a release by the GIC said. He started his career as an investment analyst in the Ministry of Finance in 1970. He moved to the Monetary Authority of Singapore when it was formed in 1971 and took over the function of managing Singapore’s reserves. In 1986, five years after GIC was formed, he joined GIC as the first non-expatriate director, and headed the equities and bond department………………………………………..Full Article: Source

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