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Sovereign Wealth Funds Briefing - Archive | February, 2013

Australia’s Future Fund drops tobacco investments

Posted on 28 February 2013 by VRS  |  Email |Print

Australia’s US$86 billion state pension fund will sell off its 222 million Australian dollar (US$228 million) of holdings in tobacco companies after considering the health problems caused by smoking. The decision by the Future Fund also comes after the government recently introduced tough new plain-packaging laws for tobacco products. The Fund’s move was widely expected after the Future Fund said in October it was reviewing its tobacco holdings.
This isn’t the first time the fund has changed its investment allocation on ethical grounds. In 2011, it sold its holdings in 10 defense companies that manufactured munitions such as cluster bombs and land mines………………………………………..Full Article: Source

Australia: Putting out the welcome mat to sovereign wealth funds

Posted on 28 February 2013 by VRS  |  Email |Print

In keeping with its goal of encouraging more foreign investment into Australia, the Federal Government will change existing laws to ensure foreign pension and sovereign wealth funds can access the Managed Investment Trust (MIT) withholding tax regime.
In summary, the regime allows a MIT to make payments to non-residents at concessional withholding tax rates, offering an attractive Australian investment option for foreign funds where they and their members are ultimately based overseas. The use of MITs in Australia is growing rapidly. In the superannuation industry alone, the value of savings under management has exploded from $183 billion in 1993 to $1.5 trillion today………………………………………..Full Article: Source

China invests forex reserves in UK property

Posted on 28 February 2013 by VRS  |  Email |Print

U.K.-registered Gingko Tree Investment Ltd., a wholly owned unit of China’s State Administration of Foreign Exchange (SAFE), has invested more than 1.6 billion U.S. dollars in at least four deals, including a water utility, student housing, and office buildings in London and Manchester, according to data providers that track property deals and disclosures by the companies that received the investments.
China Investment Corporation, China’s sovereign wealth fund, has also been actively investing in U.K. property and infrastructure. Last November, CIC bought Winchester House for about 400.6 million U.S. dollars. Its investments in U.K. infrastructure include small stakes in Heathrow Airport Holdings and water utility Thames Water………………………………………..Full Article: Source

The murky waters of the Libyan Investment Authority

Posted on 28 February 2013 by VRS  |  Email |Print

The Libyan Investment Authority (LIA) is the sovereign wealth fund (SWF) of Libya. In other words, it is a state-owned institute that is responsible for the proper investment management of Libya’s mounting oil revenue surpluses (any revenue in excess of the subscribed annual fiscal budget for the Libyan Government).
According to the official website of the LIA, the fund was established by a General Peoples Committee Decree in December 2006 to “protect and develop the value of Libya’s oil revenue reserves and to diversify the sources of national income away from the dependence on these.”……………………………………….Full Article: Source

Britain should develop links with Azerbaijan, MP says

Posted on 28 February 2013 by VRS  |  Email |Print

Britain should develop links with Azerbaijan, British MP, member of the Energy and Climate Change of the House of Commons, Chris Pincher believes. In his article published on monthly British political magazine Parliamentary Brief, Pincher writes that Azerbaijan can become crossroads between Europe and Asia, as well as a crucial energy supplier.
The Azeris running SOCAR, the state oil company, and SOFAZ, its sovereign wealth fund, are western-educated, westward-looking men, who see Azerbaijan’s future in the WTO, the article says. This new generation of political leaders look to the British/American model, not the Chinese model, for inspiration, Pincher believes………………………………………..Full Article: Source

SOFAZ analyzes funding for Trans-Anatolian pipeline

Posted on 28 February 2013 by VRS  |  Email |Print

Increasingly, Europe and its Eastern neighbors are in need of steady energy supplies. Pipeline politics are influencing investment and geopolitical decisions. Natural gas from Central Asia is attempting to connect with European and Turkish energy consumers through new routes.

The Trans-Anatolian pipeline (TANAP) is a pipeline project that aims to transport 16 billion cubic meters of gas per annum through Georgia, Turkey and then to Europe. The pipeline will avoid Russia and Iran. The pipeline will deliver gas from the Caspian field of Shah Deniz to Europe………………………………………..Full Article: Source

Angola wealth fund is family affair

Posted on 27 February 2013 by VRS  |  Email |Print

Criticized by political opponents and human-rights groups for its secretive finances and super-rich political elite, Angola recently set up a sovereign-wealth fund to deploy oil revenue on behalf of the poor.
While the move by President José Eduardo dos Santos has led some observers to praise the new fund as a welcome step, critics are complaining about his choice to help run the fund: his 35-year-old son…………………………………..Full Article: Source

Qatar SWF hires UBS to invest $3bln in VTB

Posted on 27 February 2013 by VRS  |  Email |Print

Qatar’s sovereign wealth fund has hired UBS to advise on a possible $3 bn investment in Russian state-controlled bank VTB, a source with direct knowledge of the matter said. Russia’s second-biggest lender, advised by Citigroup, has been working on a capital increase to support day-to-day operations. Analysts say the Moscow stock exchange is too small to supply VTB’s needs.
Qatar Holding, widely seen as an opportunistic investor, has a history of investing in large banks in need of capital. At the peak of the global financial crisis, it invested in banks such as Barclays and Credit Suisse on terms regarded as favourable to the fund. “Talks are very advanced”, one of the people said about Qatar’s discussions with VTB…………………………………..Full Article: Source

VTB biggest Micex gainer on Qatar UBS hire report

Posted on 27 February 2013 by VRS  |  Email |Print

VTB Group rebounded, headed for the biggest gain on Russia’s benchmark stock gauge, after Reuters reported Qatar’s sovereign wealth fund hired UBS AG (UBSN) for advice on a possible $3 billion investment in the bank.
The bank gained as much as 1.7 percent after falling 2.4 percent earlier and traded up 1.3 percent at 5.56 kopeks by 3:24 p.m. in Moscow. The amount of shares traded was 48 billion, equivalent to about 1.4 times the three-month average. The Micex tumbled 1.2 percent…………………………………..Full Article: Source

GIC raises US$1.25bln by selling shares in Global Logistic Properties

Posted on 27 February 2013 by VRS  |  Email |Print

The Government of Singapore Investment Corp (GIC) has raised US$1.25 billion by selling about 596 million shares in warehouse operator Global Logistic Properties (GLP).
GIC sold the shares at S$2.60 each, which is a 4.8 per cent discount to Monday’s closing price. Following the share sale, it now holds a 37 per cent stake in GLP, down from 49 per cent…………………………………..Full Article: Source

Judge GIC on its long-term returns

Posted on 27 February 2013 by VRS  |  Email |Print

With more than US$100 billion (S$125 billion) of funds, the Government of Singapore Investment Corporation (GIC) is one of the largest sovereign wealth funds in the world, and is highly regarded internationally for its professionalism. Chief investment officer Ng Kok Song, 64, stepped down on Feb 1, after 27 years of managing Singapore’s foreign reserves.
He steered GIC through financial booms and busts, including the October 1987 Black Monday stock market crash, the Asian financial crisis, the dot.com bubble and the recent global financial crisis…………………………………..Full Article: Source

Temasek-backed Mapletree prices Singapore IPO at top

Posted on 27 February 2013 by VRS  |  Email |Print

A real estate investment trust backed by Temasek Holdings Pvt Ltd has priced its Singapore IPO at S$0.93 each, the top of the indicative range, a source briefed on the matter told Reuters on Tuesday. The IPO would raise about US$1.3 billion (S$1.6 billion), in the city-state’s biggest REIT offering.
Mapletree Greater China Commercial Trust, with retail developments in mainland China and in Festival Walk, an up-market shopping centre in Hong Kong’s Kowloon district, had offered units in the trust in S$0.88 to S$0.93 range…………………………………..Full Article: Source

Daimler bearish on CIC stake purchase

Posted on 27 February 2013 by VRS  |  Email |Print

German car giant Daimler is not expecting sovereign wealth fund China Investment Corp to continue with its purchase of the ten percent stake in the company. The observation was made by Daimler’s Chief Financial Officer Bodo Uebber.
In an interview with Handelsblatt, “No, I don’t expect this to happen. There is a lot of speculation about us looking for another anchor shareholder in addition to Kuwait, but that’s not true.” Currently, Kuwait holds a 7.6 percent stake in the German carmaker…………………………………..Full Article: Source

Putting out the welcome mat to foreign pension and sovereign wealth funds - MIT withholding tax changes

Posted on 27 February 2013 by VRS  |  Email |Print

In keeping with its goal of encouraging more foreign investment into Australia, the Federal Government will change existing laws to ensure foreign pension and sovereign wealth funds can access the Managed Investment Trust (MIT) withholding tax regime.
In summary, the regime allows a MIT to make payments to non-residents at concessional withholding tax rates, offering an attractive Australian investment option for foreign funds where they and their members are ultimately based overseas…………………………………..Full Article: Source

Singapore wealth fund GIC cuts GLP stake in US$1.25bln sale

Posted on 26 February 2013 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC cut its stake in warehouse operator Global Logistic Properties (GLP) by about a quarter, selling around 596 million GLP shares at S$2.60 each, according to a term sheet seen by Reuters.
The sale, which raised about $1.25 billion, was at the bottom of a S$2.60-$2.66 per share indicative range. GLP closed at S$2.75 on Monday. The Government of Singapore Investment Corp (GIC) said in a statement on Tuesday that the sale was part of the sovereign fund’s “regular rebalancing activities for its overall portfolio” and that it remained a substantial long-term shareholder………………………………………..Full Article: Source

GIC says it remains ‘substantial’ long-term shareholder in GLP

Posted on 26 February 2013 by VRS  |  Email |Print

Government of Singapore Investment Corp. said its sale of a stake in Global Logistic Properties Ltd. (GLP) is part of its rebalancing of its holdings and that it remains a “substantial” long-term shareholder in the real estate company.
GIC, Singapore’s sovereign wealth fund that’s Global Logistic’s biggest shareholder, is raising S$1.5 billion ($1.2 billion) selling part of its stake in GLP, according to a term sheet obtained by Bloomberg News today………………………………………..Full Article: Source

Global Logistic shares drop on GIC stake sale

Posted on 26 February 2013 by VRS  |  Email |Print

Global Logistic Properties Ltd. (GLP) fell the most in almost 17 months in Singapore trading after Government of Singapore Investment Corp. said it is selling a stake in the biggest owner of industrial properties in Japan.
Shares of the company, also known as GLP, declined as much as 7.3 percent to S$2.55 and traded at S$2.56 as of 10:40 a.m. in Singapore, set for the biggest drop since Oct. 4, 2011………………………………………..Full Article: Source

India abandons a stupid idea: No sovereign wealth fund

Posted on 26 February 2013 by VRS  |  Email |Print

An idea born more out of hubris than good sense is bound to die an unsung death. And so it is with the much-touted India sovereign wealth fund (SWF). The idea was dusted up in the first years of UPA-2, where the government assumed that 9-10 percent growth was a given, and thus India can dream big on the world stage, buying this oilfield and that coalfield. But we now know that the dream was unreal.
Living consistently beyond our means has impoverished not only the exchequer, but the country as well. We are now down to a new normal growth of 5 percent………………………………………..Full Article: Source

Chinese sovereign wealth backs Talison takeover in Australia

Posted on 26 February 2013 by VRS  |  Email |Print

China Investment Corporation, a Chinese sovereign fund that boasts around $500 billion in assets, threw its weight behind Chengdu Tianqi’s $847-million takeover of Talison Lithium, a major lithium miner listed in Canada and Australia.
The massive sovereign wealth fund is to buy a 35-percent stake in Chengdu Tianqi’s Australian subsidiary, Windfield Holdings, for $300 million, providing nearly half the remaining funds Chengdu Tianqi, a lithium processor, needs to takeover Talison through Windfield………………………………………..Full Article: Source

Daimler says does not expect CIC to take 10 pct stake

Posted on 26 February 2013 by VRS  |  Email |Print

German car maker Daimler does not expect Chinese sovereign wealth fund China Investment Corp to take a 10 per cent stake in the company, its chief financial officer told a German newspaper. “No, I don’t expect this to happen. There is a lot of speculation about us looking for another anchor shareholder in addition to Kuwait, but that’s not true,” Bodo Uebber told Handelsblatt in an interview published on Monday.
In January, shares in Daimler rose following a Chinese media report that CIC, the country’s investment vehicle, was interested in buying a stake of between 4 and 10 per cent stake in Daimler………………………………………..Full Article: Source

Assets in East Timor’s oil fund totalled US$11.777 bln at the end of 2012

Posted on 26 February 2013 by VRS  |  Email |Print

East Timor’s Oil Fund grew by US$720.94 million in the fourth quarter of 2012 and ended the year with a total value of US$11.777 billion, said the East Timor Central Bank. The report on the last three months of 2012, available on the East Timor Central Bank’s website and dated 12 February, said that the “capital of the fund increased from US$11.054 billion to US$11.777 billion.”
Capital added to the fund from taxes, royalties and other revenue totalled US$1.234 billion and a total of US$590.4 million had been taken out of the fund………………………………………..Full Article: Source

Qatar National Bank buys 100pct of NSGB

Posted on 26 February 2013 by VRS  |  Email |Print

The Egyptian Financial Supervisory Authority (EFSA) has approved the offer presented by Qatar National Bank (QNB) to buy 100% of National Société Générale Bank (NSGB). QNB is 50%-owned by the Qatar Investment Authority (QIA), the sovereign wealth fund spearheading Qatar’s international acquisitions lately, including stakes in Barclays, Volkswagen and Harrods.
The Qatari Bank submitted a mandatory tender offer (MTO) for 100% of the NSGB shares, according to a statement by EFSA, after being required by the authority to buy the totality of the shares rather than its originally planned 77% stake, which it announced in December………………………………………..Full Article: Source

The sovereign wealth trust fund: The walking stick on the pilgrimage to sustainable growth

Posted on 26 February 2013 by VRS  |  Email |Print

Recently the media has highlighted raising controversy surrounding the activities of Sovereign Wealth Funds (SWFs). Potential investments by the Chinese SWF in U.S. assets have been blocked, supposedly due to concerns over national security. People fear politically motivated investments and accuse SWFs of insufficient transparency in their actions.
While these concerns are valid (and very applicable to some players in the market), condemning SWFs all together would be fatal for some countries that desperately need them to support and stabilize their economy. Think about this: Why do commodity-exporting countries succumb to the so-called resource curse? Why is it that despite all the resource abundance, countries like Nigeria have not been able to capitalize on this? The perplexing question has a simple answer. It is poor, or even, wicked revenue management. That’s why a sovereign wealth fund (SWF) should be the tools of choice to overcome the resource curse………………………………………..Full Article: Source

India: Sovereign wealth fund plan scrapped

Posted on 25 February 2013 by VRS  |  Email |Print

The proposal of the Prime Minister’s Office (PMO) to create a Sovereign Wealth Fund (SWF) has been scrapped following overall assessment that India does not have sufficient foreign exchange to support it.
The most vocal resistance came from the Finance Ministry, with both the economic affairs and expenditure departments saying cash-rich PSUs should use their reserves and decide independently on commercial terms. “In the prevailing situation… it would be more advisable if PSUs with surplus funds and technical know-how take independent decisions to invest in acquiring assets based on commercial gains,” said the economic affairs department at a meeting held by the principal secretary to the PM………………………………………..Full Article: Source

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Qatar Holding seeks credit rating

Posted on 25 February 2013 by VRS  |  Email |Print

Qatar Holding, the foreign investment arm of the Gulf state’s sovereign wealth fund, plans to seek a credit rating in the “next few months”, its CEO said in comments published by Bloomberg.
If the move goes ahead, the ratings agency would likely require some degree of disclosure from the fund, which is seen as largely opaque. The Doha-based investment fund had zero debt on its balance sheet at the end of last year, Ahmad Mohamed Al-Sayed said………………………………………..Full Article: Source

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Qatar Holding to launch new 12 bln dollar investment firm

Posted on 25 February 2013 by VRS  |  Email |Print

Qatar Holding, a unit of the Gulf Arab state’s sovereign wealth fund, will launch a new investment firm worth $12 billion to purchase assets globally, a top official said on February 19. Qatar Holding vice-chairman, Hussain al-Abdullah, who is also a board member of Qatar Investment Authority (QIA), said the company would be listed on the Doha stock exchange in six to eight weeks.
“You name it - shares, bonds, real estate, private equity. We will look at every sector in every country around the world,” he told reporters in the Qatari capital………………………………………..Full Article: Source

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FG urged to provide effective guidelines for SWF

Posted on 25 February 2013 by VRS  |  Email |Print

A former Director in the Central Bank of Nigeria (CBN), Titus Okunronmu, on Saturday 2013 urged the Federal Government to provide effective guidelines for the take-off of the Sovereign Wealth Fund.
Okunronmu made this known in Lagos, saying there was the need for sharing formula guidelines to ensure transparency. According to him, states will not need the same amount of money at the same time, so the Federal Government needed to devise a way of meeting each state’s demand at different times………………………………………..Full Article: Source

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My Sojourn into the Excess Crude Account

Posted on 25 February 2013 by VRS  |  Email |Print

I knew for a fact that even after Obasanjo left office, foreign reserves accretion continued and peaked at almost $63 billion in September 2008.
It was only after the global economy went into a tailspin, oil prices crashed from a peak of $147 per barrel attained in July 2008, the US government allowed Wall Street investment bank Lehman Brothers to fail two months later, and foreign investors exited the Nigerian equities market in droves during the same period, that the country’s foreign reserves took a beating………………………………………..Full Article: Source

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China quietly invests reserves in U.K. properties

Posted on 25 February 2013 by VRS  |  Email |Print

China’s foreign-exchange regulator has been actively but discreetly investing in U.K. property and infrastructure, marking a significant shift in how the secretive manager of the world’s largest foreign-currency reserves uses its funds.
In recent years SAFE, which is responsible for investing most of China’s $3.31 trillion worth of foreign-exchange reserves, has mainly kept a low profile, taking very small positions in blue-chip stocks or allocating funds to third-party asset managers to invest on its behalf. But SAFE’s recent U.K. investments signal a new willingness to take significant direct ownership stakes, following in the footsteps of China Investment Corp., the better-known investor of Beijing’s sovereign wealth………………………………………..Full Article: Source

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Nigeria: $1bn SWF to become operational by March – FG

Posted on 22 February 2013 by VRS  |  Email |Print

The $1 billion Sovereign Wealth Fund (SWF) will operate in accordance with the agenda set up for it, and will become operational by the end of next month, the federal government stated.
Minister of finance and the coordinating minister for the economy (CME) Dr. Ngozi Okonjo-Iweala said, at the end of the second meeting of the National Executive Council (NEC) in 2013 at the presidential villa, Abuja, that the operation of the fund will be in three areas: Stabilization Fund, Infrastructure Fund and Future Generation Fund……………………………………..Full Article: Source

Nigeria appoints JP Morgan as sovereign wealth fund’s custodian

Posted on 22 February 2013 by VRS  |  Email |Print

The Federal Government of Nigeria on Thursday confirmed the operational pattern of the Sovereign Wealth Fund (SWF) which is expected to take off next month and the appointment of a leading financial services firm, JP Morgan, as the custodian. The government also dismissed as untrue the reported disagreement between it and the 36 state governors under the aegis of Nigeria Governors Forum over its take off.
The Fund’s Chief Executive Officer, Mr. Unche Orji, who spoke to journalists at the end of the National Economic Council meeting presided over by Vice President Namadi Sambo at the Presidential Villa, Abuja said the Fund was going on as planned as government was determined to ensure that it becomes operational by March ending……………………………………..Full Article: Source

Sovereign wealth fund begins in March, says CEO

Posted on 22 February 2013 by VRS  |  Email |Print

Nigeria’s Sovereign Wealth fund (SWF) will begin full operations by the end of next month, its Chief Executive Officer, Uche Orji, has said. He disclosed this to State House correspondents yesterday at the end of the National Economic Council (NEC) meeting presided over by Vice President Namadi Sambo at the Presidential Villa, Abuja.
Orji, who briefed journalists alongside Governor Peter Obi of Anambra State; Minister of Finance, Dr. Ngozi Okonjo-Iweala; and the Minister of National Planning, Shamsudeen Usman, had ealier given a progress report of the fund at the NEC meeting. He said the Fund was in the process of puting its full complement of staff in place by March, when limited security investment would begin……………………………………..Full Article: Source

India allays concerns of Abu Dhabi investment vehicles

Posted on 22 February 2013 by VRS  |  Email |Print

India is receptive to the requirements of Abu Dhabi Investment Council (ADIC) and Abu Dhabi Investment Authority (ADIA) to be considered as separate agencies for investment limit purposes. This was conveyed to the UAE side by Commerce and Industry Minister Anand Sharma.
There is some apprehension that the Reserve Bank of India (RBI) and the Securities and Exchange Board of India may consider these two UAE agencies as one, as India has put in place sectoral caps for foreign investments……………………………………..Full Article: Source

UK Marriott hotels sale imminent

Posted on 22 February 2013 by VRS  |  Email |Print

The sale of 42 Marriott International properties in the UK, controlled by the Royal Bank of Scotland (RBS) Group, is in advanced stages, according to banking sources. Without disclosing the terms and the time frame of the deal, a banking source told Gulf News that the sovereign wealth fund, Abu Dhabi Investment Authority (Adia), is the prospective contender for the deal, estimated at approximately £640 million ($992 million).
Adia spokesperson, Erik Portanger, however, declined to comment. RBS acquired the Marriott hotels across England, Scotland and Wales in 2011 after the borrowers defaulted on a loan, according to a recent Times of London report. The UK publication also reported earlier that Adia and Qatar Investment Authority were the two bidders for the hotels……………………………………..Full Article: Source

No request from Qatar to invest in VTB - Russia

Posted on 22 February 2013 by VRS  |  Email |Print

Russia has not received a request from Qatar’s sovereign wealth fund to buy shares in state-controlled bank VTB, First Deputy Prime Minister Igor Shuvalov was quoted as saying on Thursday.
Shuvalov’s comments responded to a report in British newspaper The Daily Telegraph last week that VTB may issue the Qataris with US$1.5bn of new equity and US$1.5bn of mandatory convertible bonds under a proposed deal……………………………………..Full Article: Source

iNVEZZ explores 2012’s record levels of property investment by sovereign wealth funds

Posted on 22 February 2013 by VRS  |  Email |Print

James Navarro de Paz begins his news item on property investment by quoting a study undertaken by the Sovereign Investment Lab (SIB) at Bocconi University in Milan, which shows that in 2012 a record portion of sovereign wealth fund investments were in real estate assets, bringing some diversification to the typical portfolio mix of stocks and bonds.
De Paz continues by observing that the SIB report records a total of 38 property investments valued at around $10 billion (₤6.37 billion) in 2012. Although the total size of the investment is below the $13.4 billion (₤8.54 billion) achieved two years ago, it comprises a record 21 percent of the investments made by sovereign wealth funds last year. The iNVEZZ news piece quotes Andrew Rozanov , head of sovereign advisory at Permal Investment Management Services, who observes that the low yields of bonds and high volatility in the stock market have turned real estate assets into an attractive investment alternative. Rozanov points out that a property investment doesn’t just help diversify a portfolio, also it also protects against inflation. (Press Release)

Alaska Permanent Fund hits all-time high

Posted on 22 February 2013 by VRS  |  Email |Print

Alaska’s oil wealth portfolio has hit an all-time high: $45 billion. The Alaska Permanent Fund Corp. announced the fund hit the mark Tuesday. The corporation tracks the fund daily. CEO Mike Burns said hitting $45 billion is a sign the Alaska Permanent Fund has not only regained ground lost during the recession but also that it is growing.
Burns says the fund, by any measure, has been very successful. He says the patience Alaskans have had in growing the fund is extraordinary, and says it takes a lot of political will to keep the fund off limits for use on other things……………………………………..Full Article: Source

Chile’s state investment fund beats pre-financial crisis levels

Posted on 21 February 2013 by VRS  |  Email |Print

Chile will siphon US$2 billion into a state-owned investment fund that, in part, buffers the country against the ups and downs of international markets, Finance Minister Felipe Larraín said Wednesday. He projected the sovereign wealth fund (SWF) to climb to US$22.9 billion, inching past US$22.7 billion for the first time since the 2008 financial crisis hit.
Given this fund’s boost, Chileans are calling on the government to shoulder a greater slice of the country’s sky-high gasoline prices……………………………………Full Article: Source

Temasek hires ST Engineering executive as senior MD

Posted on 21 February 2013 by VRS  |  Email |Print

Singapore state investor Temasek Holdings Pte Ltd has hired the deputy chief executive of Singapore Technologies Engineering Ltd as a senior managing director to look at investment opportunities in the liquefied natural gas sector.
Seah Moon Ming, an electronics engineer by training who oversaw four business units at ST Engineering, will be part of a new “enterprise development group” formed under Dilhan Pillay Sandrasegara, sources with direct knowledge of the matter told Reuters……………………………………Full Article: Source

India: Sovereign wealth funds lap up permits to buy bonds

Posted on 21 February 2013 by VRS  |  Email |Print

Sovereign wealth funds and endowments lapped up permits to buy Indian government and corporate bonds as the signs of macro-economic stability are getting stronger and the returns, at least in rupee terms, remain higher than peers.
The Securities & Exchange Board of India received bids for .Rs34,984 crore of corporate bonds where the auctioned amount was Rs 26,925 crore, with total investors at 49. “The auctions are an indication of appreciation of yield pick-up available here,” said Parthasarthy Mukherjee, president, treasury and international business, Axis Bank…………………………………..Full Article: Source

Qatar Holding plan will boost disclosure

Posted on 21 February 2013 by VRS  |  Email |Print

A plan by Qatar Holding, one of gas-rich Qatar’s main state investment funds, to seek a credit rating will cast more light on its multibillion-dollar international investments after questions over some of its dealings in recent months.
Ahmad al-Sayed, the chief executive of Qatar Holding, a subsidiary of Qatar’s sovereign wealth fund, said on Tuesday that the fund was preparing for a rating in the coming months, which would force the global investor to be more transparent……………………………………Full Article: Source

Qatar buys up distressed assets in a bid to reduce oil dependence

Posted on 21 February 2013 by VRS  |  Email |Print

Qatar is starting a $12 billion investment fund to buy distressed assets abroad in a bid to profit on the weakness of global markets. Qatar is joining several other players, including American and Chinese funds also targeting financial assets of foreign companies on the edge of bankruptcy or those already going through it.
The Doha Global Investments fund will receive $3 billion from Qatar’s sovereign wealth fund’s unit Qatar Holding LLC, Bloomberg reports. It will operate separately from the country’s sovereign wealth fund, although the two funds could take joint actions on many investments. It also plans to offer $3 billion in shares for the local investors to buy over the next six to eight weeks……………………………………Full Article: Source

$12bln Qatar fund adds new risk: public scrutiny

Posted on 21 February 2013 by VRS  |  Email |Print

Qatar’s sovereign wealth fund may regret spinning off part of its business. The Gulf emirate known for snapping up high-profile stakes in publicly listed entities is giving ordinary investors a chance to get a piece of the action. That, though, opens up the absolute monarchy to one risk it loathes: public criticism.
Doha Global Investment, as the new fund is called, is Qatar’s latest asset-management foray - the sovereign fund has smaller joint ventures with Credit Suisse and Barclays . Doha Global creates a new channel to redistribute Qatar’s hydrocarbon wealth as well as boost liquidity on the local exchange……………………………………Full Article: Source

Alaska’s oil wealth portfolio has hit an all-time high: $45 bln.

Posted on 21 February 2013 by VRS  |  Email |Print

The Alaska Permanent Fund Corp. announced the fund hit the mark Tuesday. The corporation tracks the fund daily. CEO Mike Burns said hitting $45 billion is a sign the Alaska Permanent Fund has not only regained ground lost during the recession but also that it is growing.
Burns says the fund, by any measure, has been very successful. He says the patience Alaskans have had in growing the fund is extraordinary, and says it takes a lot of political will to keep the fund off limits for use on other things……………………………………Full Article: Source

Qatar to list $12 bln firm with assets from wealth fund

Posted on 20 February 2013 by VRS  |  Email |Print

Qatar will create a new $12 billion investment firm, backed by blue-chip assets from its sovereign wealth fund, and list it on the local stock exchange, its main institutional backer said on Tuesday. Qatar Holding—the investment arm of the Qatari sovereign fund—said the new firm will invest in assets around the world.
“You name it—shares, bonds, real estate, private equity. We will look at every sector in every country around the world,” Hussain al-Abdullah, Qatar Holding’s vice-chairman, said…………………………………..Full Article: Source

Qatar Holding to seek credit rating, didn’t have debt last year

Posted on 20 February 2013 by VRS  |  Email |Print

Qatar Holding LLC, the foreign investment arm of the country’s sovereign wealth fund, plans to seek a credit rating from Standard & Poor’s and Moody’s Corp (MCO) in the “next few months” and had zero corporate debt on its balance sheet at the end of last year, the fund’s chief executive officer said.
“We have never been highly leveraged,” Ahmad Mohamed Al-Sayed, the fund’s chief executive officer, said in a phone interview with reporters. “In 2012, the balance sheet had zero corporate debt.”………………………………….Full Article: Source

Qatar to invest USD 17 bln in industrial firms in 3 years

Posted on 20 February 2013 by VRS  |  Email |Print

Qatar plans to invest 50 billion Qatari riyals (USD 17 billion) in industrial companies in the next three years, Qatar Investment Authority Board Member Hussein Al-Abdullah said here Tuesday.
Meanwhile, he remarked Qatar Holding, owned by Qatar Investment Authority, posted a 17.4 percent rise in net profits in 2012. The company has doubled the profits of its department store Harrods to 108 pounds in 2012 from 54 million pounds before it bought the famous London department store…………………………………..Full Article: Source

Kazakhstan’s Samruk-Kazyna cutting expenses

Posted on 20 February 2013 by VRS  |  Email |Print

Samruk-Kazyna National Welfare Fund will start cost saving, Tengrinews.kz reports citing the Fund’s press-service. 11 Kazakhstan companies have already implemented the cost saving program. “The group is expected to save around 70 billion tenge ($467 million) in three years. The fund’s cost saving program was developed with the help of international consultants.
All business processes, self-costs and other expenses of the companies were analyzed. The program is expected to improve the competitiveness and optimize the group’s activities. The three-year program is being implemented by KazMunaiGas, Kazakhstan Temir Zholy, KazAtomProm, Kazakhstan Engineering, Samruk-Energy, KEGOC, KazpPochta, Kazakhstan Development Bank, SK-Farmatsiya, Damu and Samruk-Kazyna Fund,” the press-service said…………………………………..Full Article: Source

CapitaLand, Temasek and Iskandar to build $3.2bln township in Danga Bay, Johor

Posted on 20 February 2013 by VRS  |  Email |Print

CapitaLand Malaysia and Temasek Holdings will develop a $3.2 billion township with Iskandar Waterfront Holdings in Malaysia’s Danga Bay. The agreement was inked today by the three companies at Danga Bay Convention Centre, witnessed by the prime ministers of Singapore and Malaysia.
The township development is located in one of five flagship zones in Iskandar Malaysia, and is about 10km from the Johor Causeway…………………………………..Full Article: Source

Tebrau up after IWK-Temasek JV reports

Posted on 20 February 2013 by VRS  |  Email |Print

Tebrau Teguh Bhd rose in early trades following news reports that Singapore’s Temasek Holdings Pte Ltd and a subsidiary will buy a man-made island from its major shareholder Iskandar Waterfront Holdings Bhd (IWK).At 10.39 am, the 6th most active stock was flat at 92.5 sen after rising 2.7% to a high of 95 sen, with trades of 10 million shares, against a declining broader market.
A dealer told theedgemalaysia.com: “This stock is seen as a proxy to Iskandar Malaysia development. There is so much happening there that you cannot ignore it…………………………………..Full Article: Source

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