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Sovereign Wealth Funds Briefing - Archive | April, 2013

IFC chief intensifies infrastructure drive, courts SWFs

Posted on 24 April 2013 by VRS  |  Email |Print

The new head of the International Finance Corporation, the World Bank’s private sector arm, has pledged to redouble the institution’s focus on infrastructure financing – including by bringing sovereign wealth funds directly into transactions – to help combat what he sees as an acute shortage of bankable deals in Latin America and other emerging markets.

Jin-Yong Cai, who took over as CEO in October, said that the multilateral was in advanced talks with sovereign wealth funds (SWFs) to co-invest in infrastructure and other projects – a development that would advance existing cooperation between the IFC and the state investors………………………………………..Full Article: Source

Thailand: Sovereign fund has key backer

Posted on 23 April 2013 by VRS  |  Email |Print

A former central bank governor has suggested the Bank of Thailand step into the foreign exchange market rather than slash the policy rate to curb the baht’s strength.
MR Chatumongkol Sonakul, who was also the central bank’s board chairman until last year, recommends using part of the country’s US$200 billion in international reserves, representing 60% of gross domestic product, to create a sovereign wealth fund and use it as a tool to intervene in the foreign exchange market. The baht, emerging as Asia’s strongest currency against the greenback this year, reached a fresh 16-year high of 28.61-28.65 last Friday, before weakening to 28.67/69………………………………………..Full Article: Source

CIC plays down concerns over China credits

Posted on 23 April 2013 by VRS  |  Email |Print

China’s banking system remains safe and sound despite growing concerns over shadow banking, according to a senior executive of China Investment Corporation (CIC), the country’s sovereign wealth fund that manages US$200 billion of its foreign exchange.
“As long as the economy sustains its healthy growth and macro policy remains consistent, we can solve some of these banking issues,” says Jin Liqun, chairman of the firm’s board of supervisors, in a Beijing forum organized by Pioneer Investments………………………………………..Full Article: Source

Massive sovereign wealth fund gobbles up JGB – UBS

Posted on 23 April 2013 by VRS  |  Email |Print

Market attention is now shifting to the Government Pension Investment Fund in Japan. This giant asset manager has Y111.9trn ($1.19trn). It is not a sovereign wealth fund, however its size is likely to exceed established sovereign wealth funds globally. Currently, GPIF has around 60% of its assets in Japanese government and state FILP bonds.
In contrast, less than 13% of its assets are in Japanese stock, while foreign assets account for about 23% of funds. GPIF reports into the Ministry of Health, Labor and Welfare………………………………………..Full Article: Source

PKR questions timing of 1MDB’s $3 bln bond issuance

Posted on 23 April 2013 by VRS  |  Email |Print

Parti Keadilan Rakyat (PKR) has questioned why $3 billion (RM9.1 billion) worth of bonds was issued by 1Malaysia Development Berhad (1MDB) three working days before the dissolution of parliament.
“The International Financing Review Asia (IFR Asia) said that the bond issuance was completed on March 29,” said PKR Investment and Trade chief Wong Chen at a press conference at PKR headquarters. He said this was a key issue on the “big questionable financial act” by caretaker Prime Minister Datuk Seri Najib Razak, who is the chairman of 1MDB and the caretaker Finance Minister………………………………………..Full Article: Source

Mumtalakat wins sovereign wealth fund award

Posted on 23 April 2013 by VRS  |  Email |Print

Bahrain Mumtalakat Holding Company (Mumtalakat), the investment arm of the Kingdom of Bahrain, was presented with the first Foreign Sovereign Wealth Fund award by RAM Rating Services Berhad (RAM Ratings) during the 2013 annual RAM League Awards in Kuala Lumpur. RAM Ratings has been hosting the annual League Awards for the past decade, recognizing institutions which have demonstrated accomplishment and leadership in the Malaysian debt capital market.
In July 2012, Mumtalakat established its MYR 3 billion (approximately US$1 billion) equivalent sukuk murabahah program in Malaysia. The sukuk program has a tenure of 20 years and allows Mumtalakat to issue from time to time one or more series of sukuk murabahah to Malaysian institutional investors………………………………………..Full Article: Source

Sovereign wealth funds could be private equity’s new best friend

Posted on 22 April 2013 by VRS  |  Email |Print

With private equity firms testing the limits of limited partners’ ability and willingness to fill their new-fund coffers, sovereign wealth funds (SWFs) are emerging as a potential source of capital to help bridge the fund-raising gap. As we point out in Bain’s Global Private Equity Report 2012, SWFs are eager to partner with a wide range of PE firms—provided general partners (GPs) understand how to work with them.
Managers of investible assets of some of the world’s richest nations, SWFs command enormous resources, which have quadrupled over the past decade to some $4.7 trillion in 2011. Increasingly, SWFs are looking to deploy assets in alternative investments, of which PE is a prime candidate………………………………………..Full Article: Source

Comment: Lessons to be learned from Norway

Posted on 22 April 2013 by VRS  |  Email |Print

“Money makes money” and “when it rains it pours” are two old phrases that come to mind when reading about the financial performance of Norway’s sovereign wealth fund. The Norwegians found a whole lot of oil many years ago. They invested the proceeds in a state fund, which is now the largest of its kind in the world. It is now worth 3.8tn krone (€512 billion).
And last year, its second best performance ever, it rose by 13.4 per cent. The fund’s investments in shares jumped by 18.1 per cent last year on the back of a global stock market boom………………………………………..Full Article: Source

Alaska oil wealth fund’s India exposure crosses Rs. 1,000 crore

Posted on 22 April 2013 by VRS  |  Email |Print

Alaska Permanent Fund Corp, which oversees the American state’s oil wealth portfolio, has increased its investment in Indian stocks to over Rs. 1,000 crore with increased holdings in bluechips like ICICI Bank, Infosys, HDFC and Reliance Industries Ltd.
The global fund, that oversees $46 billion worth assets invested across 70 nations, had equity investments worth about $190 million (over Rs. 1,000 crore) across shares of at least 75 listed Indian companies at the end of fiscal 2012-13 ended last month, shows its latest portfolio………………………………………..Full Article: Source

Galaxy Securities said to start gauging demand for initial offer

Posted on 22 April 2013 by VRS  |  Email |Print

China Galaxy Securities Co., a brokerage controlled by the country’s sovereign wealth fund, started gauging demand today for a $1.5 billion initial share sale in Hong Kong, two people with knowledge of the matter said.
The company, based in Beijing, aims to start trading early next month, said the people, asking not to be identified because the information is private. Founded in January 2007, Galaxy Securities is controlled by Central Huijin Investment Ltd., a unit of China Investment Corp., according to the brokerage’s website………………………………………..Full Article: Source

Khazanah set to call TIME on 45pct stake

Posted on 22 April 2013 by VRS  |  Email |Print

Government-owned investment agency Khazanah Nasional Bhd is expected to announce the buyer of its entire 45 per cent stake in TIME Engineering Bhd next month.
A source said Khazanah is in the final lap of evaluating the three shortlisted companies, which are Skali Group, Censof Holdings Bhd and MyEG Services Bhd………………………………………..Full Article: Source

SMSF experts say ageing population a concern for industry

Posted on 22 April 2013 by VRS  |  Email |Print

Self-managed superannuation fund leaders are calling for more policy debate around the longevity of superannuation, as the ageing population sparks concerns about how the industry will adapt.
Industry experts speaking at a CPA Australia conference on SMSFs said the SMSF sector will change greatly in the next five to 10 years, signalling administrative and licensing reforms and lower costs, but also forecasting potential problems as the majority of SMSF holders enter old age………………………………………..Full Article: Source

Ministry to partner sovereign fund authority on infrastructure

Posted on 22 April 2013 by VRS  |  Email |Print

The Federal Ministry of Works is to partner with the Nigerian Sovereign Investment Authority (NS on the Lagos-Ibadan Expressway and an additional 39-kilometer road linking the Second Niger Bridge.
The Minister of Works, Mike Onolememen, an architect, disclosed this when a delegation from the organization led by its Managing Director, Mr. Uche Orji paid him a courtesy call, in his Mabushi Office. The Federal Government owned authority established Sovereign Wealth Fund (SWF) with an initial funding of US$1 billion………………………………………..Full Article: Source

CIC bullish on gold in face of price slump

Posted on 19 April 2013 by VRS  |  Email |Print

Wealth fund’s exposure is limited, board chief says, citing good performance of investment, and sees metal’s price rising over the long term. A senior official at China Investment Corp says the US$500 billion sovereign wealth fund has exposure to gold, although “not on a big scale”, and the fund is confident that gold prices will rise in the long run owing to limited global supply.
Jin Liqun, supervisory board chief at China Investment Corp, made the comment yesterday after gold prices tumbled earlier this week, reversing a 12-year winning streak……………………………………..Full Article: Source

Over 50 pct of Azerbaijani State Oil Fund’s investment portfolio concentrated in U.S. dollars

Posted on 19 April 2013 by VRS  |  Email |Print

As of the first quarter, around 51.32 percent of the total volume of the investment portfolio of the Azerbaijani State Oil Fund (SOFAZ) are in U.S. dollars ($17.53 billion), SOFAZ said. As of Jan.-March, the total amount of SOFAZ investment portfolio amounted to over $34.15 billion or 99.5 percent of total volume of assets.
Around 38.81 percent of the investment portfolio are concentrated in euro (over 10.33 billion euro), 4.82 percent — in British pounds sterling (about 1.08 billion pounds sterling), 1.37 percent — Turkish Lira, 0.62 percent — Australian Dollars, 0.29 percent — Russian Rubles, 0.5 percent — Azerbaijani Manat. The rest part of the portfolio (2.76 percent) is concentrated in gold……………………………………..Full Article: Source

Banks in which Azerbaijan’s Oil Fund placed its deposits named

Posted on 19 April 2013 by VRS  |  Email |Print

Audit firm Ernst & Young Holdings (CIS) BV has made audit of consolidated financial statements of the State Oil Fund of Azerbaijan (SOFAZ) for 2012 on the consolidated balance sheet.
The audit report says that SOFAZ net operating income before taxation for 2012 amounted to AZN 790.345 million and after payment of profit tax AZN 787.137 million. Fund’s total assets for 2012 were confirmed at the level of AZN 26.89 bn, including foreign assets for AZN 26.01 bn and non-foreign exchange assets for AZN 877 million. SOFAZ total financial assets were confirmed at AZN 24.127 bn……………………………………..Full Article: Source

Head of Kuwait Investment Authority denies role in stock market trading

Posted on 19 April 2013 by VRS  |  Email |Print

The head of Kuwait Investment Authority has denied reports suggesting that the country’s sovereign wealth fund may have played a role in driving up recent trading in the national stock market. Bader Mohammad al-Saad told Al Arabiya on Thursday that the Investment Authority has long-term strategic investment purposes and does not interfere in daily market trading.
The traded value in Kuwait’s bourse reached on Thursday 92 million dinars ($322.86), which is the highest value in more than two years. On Wednesday, the bourse rallied to breach the 7,000 points mark for the first time in 30 months……………………………………..Full Article: Source

Europe shows little promise for Denmark’s biggest pension fund

Posted on 19 April 2013 by VRS  |  Email |Print

The head of Denmark’s biggest pension fund warned that Europe is showing few signs of emerging from its crisis. “We all hope for a better Europe, but there is little reason for optimism at this point,”Carsten Stendevad, chief executive officer at ATP, which manages $140 billion in assets, said.
ATP said in December the fund is broadening its investment scope to benefit more from global growth as the euro area stays mired in a recession. The strategy emulates an approach adopted by Norway’s $725 billion sovereign wealth fund, which is relying less on European assets to generate returns……………………………………..Full Article: Source

China sovereign fund sees gold price rebound on global recovery

Posted on 18 April 2013 by VRS  |  Email |Print

World gold prices will pick up over time as a global economic recovery gains traction, a senior official of China’s $482-billion sovereign wealth fund said on Wednesday.
Gold has fallen about 18 percent so far this year after an unbroken 12-year string of gains. It rebounded to $1,381.80 an ounce on Wednesday after tumbling to $1,321.35 the previous day………………………………..Full Article: Source

Gold will bounce back, Greek debt is a buy: China’s sovereign wealth fund

Posted on 18 April 2013 by VRS  |  Email |Print

Gao Xiqing, president of China Investment Corp., the country’s $500-billion sovereign wealth fund, recently denounced Japan thusly (paywall): “Treating the neighbors as your garbage bin and starting a currency war would not only be dangerous for others but eventually be bad for yourself.”
But today, another CIC head, Jin Liqun, blew off those concerns: “Monetary easing … is a necessary but not sufficient condition,” said Jin, who chairs CIC’s supervisory committee (paywall). It’s hard to know why they differ—or even whether they differ. Both Gao and Jin are chatty guys, and the media quotes them a lot. That’s probably because, unlike China’s generally wooden political elite, they are comfortable with the media, speak great English, and have dry wits…………………………………Full Article: Source

CIC: China will grow at sustainable levels

Posted on 18 April 2013 by VRS  |  Email |Print

China’s economy will grow at sustainable levels and there is no need for panic about the level of growth, Jin Liqun, chairman of China Investment Corp supervisory board told CNBC on Wednesday. “I don’t think people need to panic, China will continue to grow at sustainable levels. The government target will be met without much difficulty,” said Jin.
China’s first quarter economic growth figure came in at 7.7 percent which was below expectations and lower than the previous quarter’s 7.9 percent growth, raising questions about the strength of the rebound in the world’s second largest economy. The government’s gross domestic product growth target for 2013 is 7.5 percent…………………………………Full Article: Source

Qatar plans to buy hedge fund managers as part of expansion strategy

Posted on 18 April 2013 by VRS  |  Email |Print

The Qatar Financial Centre has plans in place to buy hedge funds as part of a strategy to bolster the asset management industry based in the country. In an interview given to a local media outlet, Yousuf Al-Jaida, chief strategic development officer said the QFC is currently implementing a four-stage process to build the local asset management presence in Doha and that the strategy of buying hedge funds is part of “Wave 2”.
Al-Jaida told MENA Fund Manager that the QFC is currently implementing “Wave 1” of its strategy which centres on incentivising global asset managers to set up shop in Qatar by offering to seed new funds, with capital supplied by Qatar’s Sovereign Wealth Fund…………………………………Full Article: Source

Parrado’s guide to building sovereign wealth funds

Posted on 18 April 2013 by VRS  |  Email |Print

They may be on opposite sides of the Earth, but Chile in Latin America and Central Asia’s sparsely populated Mongolia share more than a few similarities. Both boast some of the biggest copper deposits in the world and now Mongolia has turned to Chile for advice on how best to steward income from its forecast bounty that stretches out beneath the Gobi desert.
It is sourcing help from one of the architect’s of Chile’s rocketing $22.9-billion sovereign fund. Eric Parrado, former international financial coordinator at Chile’s ministry of finance and now advising other emerging economies on the steps to managing resource wealth, has become synonymous with Chile’s global reputation on wealth fund expertise…………………………………Full Article: Source

India: PM pushes for $100bln sovereign wealth fund

Posted on 17 April 2013 by VRS  |  Email |Print

The prime minister’s office does not agree with the finance ministry position that the country does not have enough foreign exchange to set up a sovereign wealth fund. Prime minister Manmohan Singh is keen on creating a $100 billion fund. Finance minister P Chidambaram will soon meet the prime minister to discuss the next steps towards creating the fund. “Inputs from various ministries have been received. The prime minister will now give a final directive,” says an official.
At a recent meeting chaired by the prime minister’s principal secretary Pulok Chatterjee, finance ministry officials said that the foreign exchange was not enough for the fund…………………………………….Full Article: Source

India: Government eyes gas assets abroad with PSU funds

Posted on 17 April 2013 by VRS  |  Email |Print

Given the revenue account deficit and apprehensions of devaluation of rupee vis-a-vis dollar resulting in worsening fiscal deficit, the government has put the proposal of constituting a sovereign wealth fund (SWF) to acquire assets abroad on the back burner.
“Constitution of a SWF is possible and desirable only when the current account is surplus and investing funds in acquiring assets abroad, based on commercial decisions, give better returns as against putting these funds in treasury,” the finance ministry conveyed at a recent meeting in the Prime Minister’s Office (PMO). HT is in possession of the minutes of the meeting held in the PMO…………………………………….Full Article: Source

Chinese investment in Europe hits record high

Posted on 17 April 2013 by VRS  |  Email |Print

The study by A Capital is the most comprehensive investigation yet into Chinese investment in Europe. The private equity firm itself counts the Chinese government among its investors, in the form of the China Investment Corporation (CIC).
Chinese firms have caused a furor in the past for their partial or complete takeovers of German flagship companies like concrete pump manufacturer Putzmeister, warehouse equipment maker Kion and consumer electronics manufacturer Medion…………………………………….Full Article: Source

Qatar says focusing in on German investments

Posted on 17 April 2013 by VRS  |  Email |Print

Qatar’s aggressive sovereign wealth fund is focusing its investment strategy in Germany on companies selling in emerging markets as well as real estate, an executive board member of the Qatar Investment Authority has said.
The QIA, the most active Middle East sovereign wealth fund in recent years, is estimated to be worth around $200bn and has bought stakes in companies ranging from German sports car maker Porsche to Barclays…………………………………….Full Article: Source

Africa’s SWF: Investing for tomorrow

Posted on 17 April 2013 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) are not new to the continent. Botswana’s Pula Fund dates back to 1994, Algeria formed its Revenue Regulation Fund in 2000 and in Tripoli the government created the Libyan Investment Authority (LIA) in 2006.
Chad, Mauritania, Gabon, Namibia and São Tomé e Príncipe also have SWFs, though information on their assets and investment targets is harder to come by.So, if you are an African finance minister with a windfall to invest, what do you choose?……………………………………Full Article: Source

Angola misses deadline on $5bln fund

Posted on 17 April 2013 by VRS  |  Email |Print

Angola said on Tuesday it missed its own deadline to publish an investment policy for a planned $5 billion sovereign wealth fund due to a legal challenge, slowing efforts to diversify its oil-dependent economy.
Africa’s second-largest oil producer announced plans for the fund in October, to invest in everything from water projects to sub-Saharan hotels. It has made little progress since, frustrating investors who had hoped for clearer signals on potential spending…………………………………….Full Article: Source

Israel pushes for sovereign wealth fund to protect shekel

Posted on 17 April 2013 by VRS  |  Email |Print

Israel is on its way to launching a sovereign wealth fund (SWF), designed to prevent a steep appreciation of the shekel following the country’s plans to allow access to its natural gas fields.
The country’s cabinet voted to re-approve the establishment of a SWF, after the initial proposal from the previous administration failed to be passed by the Knesset - the Israeli legislative branch of government which passes all laws - before its election in January…………………………………….Full Article: Source

Azerbaijan Oil Fund’s assets grew up to $34.326 bln

Posted on 17 April 2013 by VRS  |  Email |Print

For the 1st quarter the State Oil Fund of Azerbaijan (SOFAZ) had budget net surplus at AZN 593.8 million or 16.85% of revenues for the reported term.According to SOFAZ, in the 1st quarter it received AZN 3.5 bn of revenue and made AZN 2.929 bn of expenditures. Due to that, SOFAZ assets for the quarter increased by 0.6% - from $34.129 bn up to $34.325 bn.
The basis of revenue for the quarter were proceeds from oil and gas production PSA contracts for AZN 3.413 bn, including revenue from sale of profit oil and gas for AZN 3.410 bn. Another AZN 110.4 million were brought to Fund’s budget by revenues from the management of its assets. Transit fee provided AZN 2.1 million, bonus AZN 200,000, sale of assets transferred by foreign companies AZN 10,000…………………………………….Full Article: Source

Qatar sovereign fund says German real estate good opportunity

Posted on 16 April 2013 by VRS  |  Email |Print

Qatar’s aggressive sovereign wealth fund is focusing its investment strategy in Germany on companies selling in emerging markets as well as real estate, an executive board member of the Qatar Investment Authority said on Monday.
The QIA, the most active Middle East sovereign wealth fund in recent years, is estimated to be worth around $200 billion and has bought stakes in companies ranging from German sports car maker Porsche to Barclays………………………………………..Full Article: Source

Azerbaijan’s State Oil Fund assets grew 0.6pct in first quarter

Posted on 16 April 2013 by VRS  |  Email |Print

Azerbaijan’s State Oil Fund, known as Sofaz, expanded its assets 0.6 percent to $34.3 billion as of April 1 from the end of last year. Sofaz’s gold holdings have increased to 18.4 metric tons by the end of the first quarter, according to an e-mailed statement today from the fund, which was established in 1999 in Baku, the Azeri capital, to manage the Caspian Sea nation’s income from the sale of oil and natural gas.
The fund started investing in gold, as well as in the Australian dollar, Russian ruble, Turkish lira and real estate last year to diversify holdings. It plans to increase its gold reserves to 30 tons by the end of the year………………………………………..Full Article: Source

SOFAZ loses $570 mln in changing of exchange rates

Posted on 16 April 2013 by VRS  |  Email |Print

Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-March, 2013 reached 3 523.4 million manats, while budget expenditures constituted 2 929.6 million manats.
Revenue of 3 413.0 mln. manats was received from implementation of oil and gas agreements, including 3 410.7 mln. manats from the sale of profit oil and gas, 2.1 mln. manats as transit payments, 0.2 mln. manats as bonus payments and 0.01 mln. manats from sale of assets received from foreign companies………………………………………..Full Article: Source

Sun Life Financial and Khazanah Nasional acquire CIMB Aviva for $602mln

Posted on 16 April 2013 by VRS  |  Email |Print

Canada-based Sun Life Financial and Khazanah Nasional in Kuala Lumpur have completed the acquisition of CIMB Aviva Assurance and CIMB Aviva Takaful after receiving regulatory approvals in Malaysia and Canada.
CIMB Aviva Assurance is a Malaysian life insurance firm, whereas CIMB Aviva Takaful is a Malaysian takaful company. Both Canadian and Malaysian companies have acquired 49% stake of the both companies from Aviva International and CIMB Group, respectively, with CIMB Group holding a 2% share in the companies………………………………………..Full Article: Source

Time for 1MDB to come out in the open

Posted on 16 April 2013 by VRS  |  Email |Print

So our old friends from Malaysia’s 1MDB are back again, or should I say were back again, since the US$3bn 10-year private placement arranged for the government investment vehicle by Goldman Sachs was closed in conspicuous silence some weeks ago – on March 29 to be precise.
The under-the-radar modus operandi mirrored that seen on the US$1.75bn 10-year private placement Goldman closed for 1MDB last June. As with that deal, the new transaction is likely spark controversy, not just because of the quiet manner in which it was completed but because it comes barely three weeks before Malaysia’s general election on May 5………………………………………..Full Article: Source

Indonesia c bank chief says DBS-Danamon deal may happen in May

Posted on 16 April 2013 by VRS  |  Email |Print

DBS Group Holdings Ltd’s bid to buy Indonesia’s PT Bank Danamon from Singapore state investor Temasek Holdings Pte Ltd may go ahead next month, Indonesia’s central bank chief said on Monday.
The US$7.2 billion deal has been stuck for a year because of regulatory obstacles with Bank Indonesia capping ownership stakes in local banks and politicians calling for the Monetary Authority of Singapore (MAS) to grant greater access for Indonesian banks in Singapore………………………………………..Full Article: Source

Israel cabinet OKs wealth fund to prevent “Dutch Disease”

Posted on 15 April 2013 by VRS  |  Email |Print

Israel’s cabinet on Sunday re-approved the establishment of a sovereign wealth fund to prevent a steep appreciation of the shekel once natural gas fields start to generate high levels of income. Bank of Israel Governor Stanley Fischer has called for a sovereign wealth fund similar to Norway’s to safeguard the billions of dollars in windfall natural gas revenue.
Israel wants to avoid the so-called Dutch Disease, whereby a sudden explosion in national wealth overheats the currency and undermines export industries………………………………………..Full Article: Source

Israel gas-fund law shows ‘Dutch Disease’ awareness, Kandel says

Posted on 15 April 2013 by VRS  |  Email |Print

The creation of an Israeli sovereign wealth fund for revenue from natural-gas discoveries will help the government manage currency-market expectations, a top adviser to the prime minister said.
A draft law creating the fund was approved in principle today by the Cabinet, said Eugene Kandel, head of the National Economic Council. While the fund will probably enjoy income only in 2016 or 2017, the government is rushing to prepare the framework for its operation now, he said………………………………………..Full Article: Source

Israel: Government approves sovereign wealth fund

Posted on 15 April 2013 by VRS  |  Email |Print

The government approved the creation of a sovereign wealth fund to manage profits from Israel’s natural gas fields and prevent the influx of dollars from overvaluing the shekel. But the fund’s creation only becomes final after the Knesset legislates it.
Many states that discover large natural resource reserves set up such funds to avoid what economists call “Dutch disease.” Selling natural gas on the world market would flood Israel’s economy with dollars, making them cheap relative to the shekel. A strong shekel, in turn, would make Israeli goods more expensive on the world market, hurting exports………………………………………..Full Article: Source

Norway $730 bln wealth fund strategy unchanged

Posted on 15 April 2013 by VRS  |  Email |Print

Norway’s $730 billion sovereign wealth fund, Europe’s biggest equity investor, will continue to operate under its current strategy, the finance ministry said in a white paper on Friday.
“The ministry presents analyses of several aspects of the strategy, but does not present plans for major changes to the investment strategy of the fund,” it said in a statement………………………………………..Full Article: Source

Norway finance minister expects more volatile oil fund

Posted on 15 April 2013 by VRS  |  Email |Print

The value of Norway’s $724 billion oil fund is likely to fluctuate more in the coming years, said Minister of Finance Sigbjorn Johnsen Friday, adding that he still expected an average annual yield of 4%. “I think 4% is a realistic target,” Mr. Johnsen told Dow Jones Newswires after presenting the government’s annual review of the oil fund’s performance and strategies.
The fund returned 13.4% on its investments in bonds, stocks and real estate in 2012, its second best year ever. But Mr. Johnsen said the Norwegian people should expect more volatility in the fund’s value in the years to come………………………………………..Full Article: Source

Excess crude account hits $7bln; FG, states, LGs share N731.13bln

Posted on 15 April 2013 by VRS  |  Email |Print

The Excess Crude Account (ECA) is now $7 billion, as the Federal Government, states and the 774 local government councils in the country shared N731.13 billion.
The allocation, which is for March, was shared by the three tiers of government after a stormy session at the meeting of the Federation Account Allocation Committee (FAAC) in Abuja, occasioned by the face-off of state commissioners of finance with the Minister of State for Finance, Lawan Yerima Ngama………………………………………..Full Article: Source

Kuwaiti group invests in $15bln project

Posted on 15 April 2013 by VRS  |  Email |Print

The Kuwait Investment Authority is investing in the $15bn Hudson Yards office property project in Manhattan in a deal that illustrates how conservative sovereign wealth funds are taking on greater risk in the pursuit of higher returns. Sovereign wealth funds typically buy premier buildings for their rental yields or invest in real estate funds managed by private equity groups.
But with rental yields hovering around 4 per cent, sovereign wealth funds are now taking on development and construction risk on new buildings in the hope of earing double-digit returns on such investments………………………………………..Full Article: Source

Qatar SWF has ‘no global mission to conquer the world’

Posted on 15 April 2013 by VRS  |  Email |Print

Experts say the country’s sovereign wealth fund is only focussed on investments with high returns. Bankers and politicians touting their countries’ wares have to work hard to get the attention of Qatar’s sovereign wealth fund, such is the range of its interests, from banks to cars to soccer clubs, and its exacting requirement for returns.
With estimated assets of about $200 billion, and more than a dozen potential deals on its radar every week, the state-run firm has no time for less than compelling investment opportunities and hopes to make more than 17 per cent on its book this year, according to one banker close to the fund………………………………………..Full Article: Source

Scepticism over US$6bln Qatari IPO

Posted on 15 April 2013 by VRS  |  Email |Print

The Qatar Investment Authority, the Gulf country’s sovereign wealth fund, is planning an IPO of a new US$12bn investment fund in what would be one of the largest ECM deals in the region. But with the sale of shares set to be restricted to investors based in the country, bankers are sceptical that the Qatari market has the capacity to absorb a deal of this magnitude.
The Doha Global Investment Co fund is scheduled to list on the Qatar Exchange in May with a free-float of 50%, suggesting a deal size of US$6bn, which would make it one of the largest IPOs in the EMEA region in the recent past. However, given Qatar’s small population and the size of its stock market, observers doubt that the the deal will go through in its present form………………………………………..Full Article: Source

Mumtalakat supports the palm association

Posted on 15 April 2013 by VRS  |  Email |Print

Bahrain Mumtalakat Holding Company (Mumtalakat), the investment arm of the Kingdom of Bahrain, announces its support to the Palm Association. The association raises funding with the aim of helping needy Bahraini families and making a difference in their lives by providing food parcels, educational sponsorships and home improvements.
Mumtalakat is proud to be associated with this Association and to donate BD7,000. The donation will support projects that the Palm Association undertakes each month, amongst which the cornerstone Feed-a-Family programme, which distributes approximately 155 food parcels to the value of BD20 every month to Bahraini families who have fallen on hard times………………………………………..Full Article: Source

Australian governments have blown mining boom cash, say economists

Posted on 15 April 2013 by VRS  |  Email |Print

Australians could be sitting on a $300 billion sovereign wealth fund to rival the oil-rich nation of Kuwait if we had banked the budget windfall of the now deflating mining boom. Instead, exclusive modelling for News Limited reveals successive federal governments have squandered the lot - and then some - in tax cuts, handouts and stimulus spending.
Most economists are tipping Labor’s fifth budget will reveal a budget still deep in deficit - by as much as $10 billion in 2013-14 - as revenues continue to disappoint. This is despite the mining boom delivering a $290 billion boost to the budget bottom line between 2003/4 to 2016/17, according to modelling by Canberra-based forecasting group Macroeconomics………………………………………..Full Article: Source

Super fund mortgage service slashes broker commissions

Posted on 15 April 2013 by VRS  |  Email |Print

QSuper members will gain access to a mortgage broking service which offers a refund on 50 per cent of the lending institutions’ ongoing commissions. Its financial planning arm QInvest will launch the new service through a newly formed team of salaried mortgage brokers, with 50 per cent of the value of ongoing commissions going into the running of the business.
The superannuation fund said the move would enable its members to get a better deal on their home loans and forms part of its move towards a holistic whole-of-life offering, which includes the annuity product it launched earlier this year………………………………………..Full Article: Source

Goldman Sachs Group and GIC joint investment iKang hundred million dollars

Posted on 15 April 2013 by VRS  |  Email |Print

The healthy iKang Management Group held a press conference to formally announce the joint strategic investment for a leading global investment bank Goldman Sachs Group and the Government of Singapore Investment Corporation, nearly 100 million dollars. Needless to say, the Chinese health management industry is by far the largest single private investment.
The iKang Group Chairman and CEO Mr. Zhang Ligang said the money will help the speed up iKang medical entities in major cities in China expansion, to establish a more comprehensive customer service platform, and on the basis of the healthy development of new business, to help iKang health management platform to build industry-leading………………………………………..Full Article: Source

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