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Sovereign Wealth Funds Briefing - Archive | June, 2013

Qatar sells Porsche stake

Posted on 19 June 2013 by VRS  |  Email |Print

Qatar Holding, the investment arm of the Gulf state’s sovereign wealth fund, has decided to sell its 10 percent shareholding in Porsche Automobil Holding SE (PSE). However, the sovereign fund will retain its 17 percent stake in Volkswagen, Europe’s biggest auto maker.
The luxury Porsche brand is owned by Volkswagen. After the sale, the Porsche and Piech families would once again own all of Porsche’s common stock. Qatar Holding has decided to sell its share in the company after Volkswagen’s (VW) takeover of Porsche last year………………………………………..Full Article: Source

Malaysia’s 1MDB plans US$1bln IPO

Posted on 19 June 2013 by VRS  |  Email |Print

Sovereign wealth fund 1Malaysia Development Bhd (1MDB) plans to raise about $1 billion through a public listing of its power assets in Malaysia next year, according to Dow Jones Newswires. Sovereign wealth fund 1Malaysia Development Bhd (1MDB) plans to raise about $1 billion through a public listing of its power assets in Malaysia next year, according to Dow Jones Newswires.
The proposed initial public offering is the latest in a string of announced or rumoured listings that could return Malaysia to the ranks of top regional IPO markets. The funds raised through the share sale will help pay off some of the debts of the Malaysian investment company, Dow Jones said in its report, quoting people familiar with the plans………………………………………..Full Article: Source

Malaysia sovereign-wealth fund plans $1 bln IPO

Posted on 18 June 2013 by VRS  |  Email |Print

1Malaysia Development Bhd, a Malaysian sovereign-wealth fund, plans to raise about $1 billion from an initial public offering of its power assets in the country in the first half of next year, two people familiar with the development said.
The proposed share sale comes after the government fund came under scrutiny earlier in the year for its debt-fueled acquisitions of assets, including these power assets that will be in the pending IPO. The IPO will also be the latest planned after pending elections that returned the ruling coalition to power made many companies put their listing plans on hold, earlier in the year………………………………………..Full Article: Source

Temasek sets up U.K. unit to focus on investments in Europe

Posted on 18 June 2013 by VRS  |  Email |Print

Temasek Holdings Pte, Singapore’s state-owned investment company, said it has set up a U.K.-based unit that will focus on investments in the region.
John Cryan, president of Europe and co-head of the portfolio and strategy group, was named as one of the two directors of the new unit, Financial News reported earlier today. Stephen Forshaw, a spokesman for the investment company, confirmed in an e-mailed statement that the creation of the “U.K-incorporated entity” will help Cryan’s role………………………………………..Full Article: Source

Chinese sovereign wealth fund boosts stakes in nation’s lenders

Posted on 18 June 2013 by VRS  |  Email |Print

Central Huijin Investment Ltd., a unit of China’s sovereign wealth funds, increased its stakes in the nation’s four biggest banks last week. Central Huijin bought 19.3 million yuan-denominated A shares in Industrial & Commercial Bank of China Ltd. (601398), 24.5 million in China Construction Bank Corp. (939), 18.5 million in Bank of China Ltd. (3988) and 42.9 million in Agricultural Bank of China Ltd. (601288) on June 13, the four lenders said.
Central Huijin will continue to buy shares in the banks in the following six months, according to the statements. The benchmark Shanghai Composite Index (SHCOMP) has retreated 11 percent from this year’s high set on Feb. 6 amid concern the economic recovery will falter. Mainland-traded shares of AgriBank have dropped 4.6 percent this year while those of the other three biggest banks are virtually unchanged………………………………………..Full Article: Source

Central Huijin purchases ‘to boost A-share market’

Posted on 18 June 2013 by VRS  |  Email |Print

Increasing purchases in the A-share market by a company linked to the sovereign wealth fund will soon benefit the stock market after it dropped to a six-month low last week, experts said. The increased investment into the A-share market by Central Huijin, a subsidiary of China’s sovereign wealth fund, will boost market performance, financial news portal Caijing said on Monday.
The benchmark Shanghai Composite Index grew by 0.09 percent to 2,163.88 on Monday morning. Central Huijin Investment Co, China’s main holding company for State-owned financial firms, bought shares of Everbright Bank and New China Life Insurance on the secondary market in Shanghai on Thursday and Friday, the two companies said in separate announcements………………………………………..Full Article: Source

Porsche family buys back stake from Qatar fund

Posted on 18 June 2013 by VRS  |  Email |Print

Descendants of German automobile entrepreneur Ferdinand Porsche have bought back a 10 per cent stake in their holding company from Qatar’s sovereign wealth fund. Carmaker Porsche confirmed the transaction today but didn’t reveal the sales price.
The Porsche and Piech families are now again the sole shareholders of Porsche Automobil Holding SE. That company is the largest single shareholder of Volkswagen AG, which in turn manufactures the Porsche luxury cars. Qatar Holding, the investment arm of the Gulf state’s sovereign wealth fund, had bought the stake four years ago when a Porsche takeover bid for much-larger Volkswagen collapsed amid overly high debt………………………………………..Full Article: Source

Qatar sells back 10 pct Porsche stake to founding families

Posted on 18 June 2013 by VRS  |  Email |Print

Qatar Holding, the investment arm of the Gulf state’s sovereign wealth fund, has sold its 10 percent stake in Porsche SE to the luxury carmaker’s family shareholders, four years after it first invested in the firm. Qatar Holding, which owns stakes in some of the world’s largest companies, said it sold the common shares in the automaker to the Porsche and Piech families. It did not disclose the value of the transaction.
The sovereign fund arm said it remained committed to the Integrated Automotive Group which includes Volkswagen and Porsche through its 17 percent stake in VW. Europe’s largest automaker last year sealed the purchase of Porsche’s car-making business after a merger failed in a tangle of legal disputes………………………………………..Full Article: Source

South Africa wealth fund to expand investment in Dangote group

Posted on 18 June 2013 by VRS  |  Email |Print

Public Investment Corporation (PIC), South Africa’s biggest sovereign wealth fund, on Monday said last week’s transaction with Dangote Cement will open up new acquisition prospects in Dangote’s other operations.
Head of Resources at PIC, Fidelis Madavo, said these operations included Dangote’s sugar, flour, oil refinery and port operations. Last week PIC said it had bought 1.5 percent of Dangote Cement, Nigeria’s largest listed company, in a deal valued at $289.3 million. PIC bought the shareholding at 179 naira a share………………………………………..Full Article: Source

The transformation of Ireland’s NPRF into a SDSWF

Posted on 18 June 2013 by VRS  |  Email |Print

Irish Finance Minister Michael Noonan along with other senior public officials provided key updates regarding the NTMA Amendment Bill 2013. The bill would modify the direction of the National Pension Reserve Fund’s €6.4 billion discretionary portfolio toward Irish commercial investments.
In effect, the remaining part of the sovereign pension fund would transform itself into a strategic development sovereign wealth fund (SDSWF). The SDSWF would be called the Ireland Strategic Investment Fund (ISIF)………………………………………..Full Article: Source

Kazakhstan National Fund to publish expenses

Posted on 18 June 2013 by VRS  |  Email |Print

Reports on expenditures of the National Fund of Kazakhstan are going to be published on websites of managing holdings, Tengrinews.kz reports citing Kazakhstan Finance Minister Bolat Zhamishev. “There are issues with transparency of use of the National Fund’s money aimed for anti-crisis activities. We have repeatedly presented the information (expenditures reports) during discussions.
But since the questions keep coming both in this room and outside of it, we plan to star publishing results of the monitoring of money return and the secondary use of the anti-crisis funds at the website of all the managing holdings that operate the funds to ensure transparency of the use of this money and provide access to the information to the country’s population,” Zhamishev said at the joint meeting of the Parliament’s chambers………………………………………..Full Article: Source

Norway retains its sovereign wealth crown

Posted on 17 June 2013 by VRS  |  Email |Print

Norway’s Government Pension Fund has been named as the world’s largest sovereign wealth fund. Boasting $737.2 billion in assets, Norway topped the most recent list compiled by the SWF Institute, published on June 13. It’s the second time in seven months that Norway has taken the top spot.
Arriving in second place was UAE’s Abu Dhabi Investment Authority (ADIA), which is estimated to have $628 billion in assets. The third position was held by China’s SAFE Investment Company ($567.9 billion), followed by Saudi Arabia’s SAMA Foreign Holdings ($532.8 billion), leaving China’s Chinese Investment Corporation in fifth place ($482 billion)……………………………………Full Article: Source

Ireland: Stimulus fund does not alter Government’s fiscal stance

Posted on 17 June 2013 by VRS  |  Email |Print

A sovereign wealth fund is a nice thing to have. States enjoying windfalls often set up such funds. The Irish State enjoyed huge windfall tax gains from the property boom/bubble.
While Charlie McCreevy did many bad things during his seven years at the helm of the Department of Finance, including decentralisation, benchmarking and an utterly reckless spending splurge in the two years running up to the 2002 election, his setting up of a sovereign wealth fund more than a decade ago was one of his better decisions……………………………………Full Article: Source

Nigeria: Uduaghan: We’ll support sovereign wealth fund but…

Posted on 17 June 2013 by VRS  |  Email |Print

Governor Emmanuel Uduaghan of Delta State Friday expressed support for the Sovereign Wealth Fund and charged the federal government to ensure effective participation of all the states in the management of the initiative.
He gave the charge in Asaba during the second anniversary lecture of the fifth Assembly of the Delta State House of Assembly. The governor explained that state governors were not against the establishment of the SWF “per se, but the way and manner” in which it was being managed……………………………………Full Article: Source

South Africa’s PIC to invest more in Dangote companies

Posted on 17 June 2013 by VRS  |  Email |Print

After investing over N49 billion in the shares of Dangote Cement Plc, there are indications that South African sovereign wealth fund manager, Public Investment Corporation (PIC) is considering investing more in companies linked to Africa’s richest man, Alhaji Aliko Dangote.
Head of Resources at the Pretoria-based PIC, Fidelis Madavo, while noting the plans of the funds to tap into industries benefiting from economic growth said, the deal with Dangote Cement would also offer opportunities in Dangote’s sugar, flour, oil refinery and port operations……………………………………Full Article: Source

Middle East sovereign funds looking towards Morocco

Posted on 17 June 2013 by VRS  |  Email |Print

Morocco has set its sights on becoming a model for regional reform different from Egypt, Saudi Arabia, Bahrain, and Libya. This bodes very well for its future prosperity. Tourism has historically been one of Morocco’s most important industries. These reforms will avert the kind of turmoil which has kept visitors away from such countries as Egypt and Tunisia.
Moreover, at the same time that it is opening up its political system, Morocco is committed to continuing to invest in its tourism industry. It seems that Middle Eastern based sovereign funds are keener on investing in hospitality and resort developments compared to their Asian and European peers. This is good news for the Kingdom of Morocco……………………………………Full Article: Source

Qataris poised for discounted buy of iconic Barcelona hotel

Posted on 17 June 2013 by VRS  |  Email |Print

Qatar Investment Authority is reportedly within days of signing the acquisition of the flagship Hotel Vela in Barcelona at a significant discount. The Middle-East sovereign wealth fund is reportedly going to pay €200 mln, 23% down on the rumoured €260 mln development cost.
Located on the Barcelona waterfront, the five-star hotel was designed by architect Ricardo Bofill. The hotel is operated by W Hotels, a luxury brand of hotel chain Starwoods, and provides 473 guest rooms including 67 suites……………………………………Full Article: Source

India: Finmin plans $300-mln fund with British help to lure SWFs, pension funds

Posted on 17 June 2013 by VRS  |  Email |Print

In an attempt to woo sovereign wealth funds (SWFs) and pension funds to India’s infrastructure debt funds (IDFs), the finance ministry is planning to set up a $300-million ‘feeder fund’ with the help of the UK government.
Sources told FE that a feeder fund, the size of which could be enhanced in future, will be listed on the UK stock exchange, and pool in funds from SWFs and pension funds in order to lend to Indian infrastructure projects at a 3 to 4% interest rate, much lower than the prevailing domestic interest rates……………………………………Full Article: Source

India sets up special window for SWFs

Posted on 17 June 2013 by VRS  |  Email |Print

India is creating a special window in the government securities (G-Secs) segment for sovereign wealth funds (SWFs) and other long-term funds, with ease of entry and exit, Qatar Indian Embassy said.
During the recent visit to Doha of Indian Finance Minister P Chidambaram, India and Qatar had discussed investments by Qatar’s sovereign wealth fund, and other long-term investors in Asia’s third largest economy. The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) have issued notifications enabling such investments…………………………………..Full Article: Source

Total sovereign wealth funds’ assets amount to $5,473bln

Posted on 14 June 2013 by VRS  |  Email |Print

According to the SWF Institute’s latest Sovereign Wealth Fund Rankings, the total amount of sovereign wealth funds’ asset under management is now $5,473bn, to which oil and gas related revenues contributed $3,193bn. The rankings show Norway’s Government Pension Fund on top of the list, with $737bn in asset under management (AuM). The fund gets its capital mainly from oil revenues, and it scores 10 points out of 10 in the Linaburg-Maduell Transparency Index.
It is followed by the Abu Dhabi Investment Authority’s fund ($627bn in AuM, origin: oil, and index: 5 points); China’s SAFE Investment Company (around $567bn in AuM, origin: non-commodity, index: 4); Saudi Arabia’s SAMA Foreign Holdings ($532bn, origin: oil, index: 4 points); and the Kuwait Investment Authority fund ($342bn, origin: oil, index: 7 points). At the end of 2010, 58% of SWFs’ funding came from oil and gas related revenues. Asia had the greatest amount of SWFs, namely 40%, followed by the Middle East with 35% and Europe with 17%. The Americas and Africa only had each 3% of the share………………………………………..Full Article: Source

Putin rules to use wealth fund money to cover pension deficit

Posted on 14 June 2013 by VRS  |  Email |Print

Russian President Vladimir Putin has ordered the government to decide how many resources from the National Wealth Fund, designed to secure the pension system, could be used to cover the deficit of the pension fund, as cited by RIA Novosti on Thursday.
“Depending on the parameters of a formula to calculate pensions, we need to set limits within which we can use the resources of the National Wealth Fund to cover the deficit of the pension fund,” Putin, who is serving his third term in the Kremlin, said in his budget address to the government. Putin also said that resources of the National Wealth Fund and pension savings have to be used to finance infrastructure projects, whose implementation could help spur growth in a stagnating economy, among other measures………………………………………..Full Article: Source

Ireland: State investment vehicle to have EUR6.4bln fund

Posted on 14 June 2013 by VRS  |  Email |Print

A new State-run investment vehicle will have access to €6.4 billion from the National Pension Reserve Fund, according to the Government. The Ireland Strategic Investment Fund, which is set to be established under the NTMA (Amendment) Bill 2013, will be tasked with investing in areas of “strategic importance” to the country, with a particular emphasis on economic growth and job creation.
To facilitate this a new Bill will allow for money currently in the pension reserve fund to be invested in commercial projects in Ireland. Ministers Michael Noonan, Brendan Howlin and Pat Rabbitte, along with Minister of State Fergus O’Dowd, today gave more detail on the new fund as well as changes set to be made within the NTMA………………………………………..Full Article: Source

Angolan government prepares investment policy for Angola’s Sovereign Fund

Posted on 14 June 2013 by VRS  |  Email |Print

The Angolan government is preparing to name a new chairman of the Board of Directors of the Angola Sovereign fund and draw up the fund’s investment policy, a Fund director said in Luanda. In a statement cited by Angolan news agency Angop, Director José Filomeno dos Santos said that the government was also preparing the Fund’s investment strategy, and would continue working on preparing the institution’s professional management.
Dos Santos said that the Fund’s investment policy had been delayed by the late approval of the 2013 State Budget by parliament and the 2012 general elections………………………………………..Full Article: Source

Equity bull market intact as Falcon sees Central Bank support

Posted on 14 June 2013 by VRS  |  Email |Print

Falcon Private Bank, the wealth manager owned by an Abu Dhabi sovereign wealth fund, expects stock declines to be temporary as fund managers move from bond purchases and central banks step in to support asset prices.
Equities are in a multi-year bull market and will be underpinned by the shift of institutional money from bonds, valuations that are cheap on a historical basis and the accommodative stance of policy makers to capital markets, David Pinkerton, the chief investment officer for Falcon, said today in a phone interview from the bank’s Zurich headquarters………………………………………..Full Article: Source

S.Africa vows to return Kadhafi assets to Libya

Posted on 14 June 2013 by VRS  |  Email |Print

South Africa will return assets and cash stashed by the slain Libyan dictator Moamer Kadhafi in the country after reaching an agreement with Tripoli, the finance ministry said on Thursday. The assets were placed in South Africa by the Libya Investment Authority, the Libya Africa Investment Portfolio and the Libya Africa Investment Company — funds closely controlled by Kadhafi’s regime.
Part of the missing money is allegedly controlled by Kadhafi’s former chief of staff Bashir Saleh. Saleh, who headed Libya’s $40-billion sovereign wealth fund, is wanted in Libya for fraud and is the target of an Interpol arrest warrant under the alias Bashir al-Shrkawi………………………………………..Full Article: Source

Malaysia’s Khazanah plans US$400 mln IPO of theme parks

Posted on 14 June 2013 by VRS  |  Email |Print

Khazanah Nasional Bhd, Malaysia’s state investment company, is planning to raise as much as US$400 million in an initial public offering (IPO) of its theme park business, said two people with knowledge of the matter.
Khazanah is working with Malayan Banking Bhd (Maybank) and Bank of America Corp on the share sale of Themed Attractions and Resorts Bhd, the people said, asking not to be named as the process is private. The Kuala Lumpur IPO may raise US$300 million to US$400 million as early as this year, they said………………………………………..Full Article: Source

The CIC hot potato

Posted on 14 June 2013 by VRS  |  Email |Print

China’s leaders are anxious to find a new chairman for China Investment Corporation (CIC), the country’s $500 billion sovereign wealth fund. The former head, Lou Jiwei , left the fund after he was appointed as the country’s new finance minister back in March. Since Lou’s departure, there’s been no official announcement of who is going to take his place over at CIC.
“I guess in the end it will still be Tu Guangshao, the deputy mayor of Shanghai,” a person close to CIC’s senior management told the EO on May 29 with a tone of exasperation in his voice………………………………………..Full Article: Source

Time to invest in Europe’s private markets, says CIC’s He

Posted on 14 June 2013 by VRS  |  Email |Print

The European debt crisis offers a good opportunity to invest in private markets, said head of private equity at China Investment Corporation Linbo He.He noted that private equity investments performed strongly in 1998-2005 despite a tough fundraising environment.
In contrast, performance deteriorated in 2004-2008 despite much better exit and fundraising opportunities. “I think the current crisis is actually making European countries to think about what they are doing and forcing them to reform,” said He………………………………………..Full Article: Source

Shale Gas: China’s untapped resource

Posted on 14 June 2013 by VRS  |  Email |Print

When I met recently with a senior investment officer from China Investment Corporation (CIC), the country’s sovereign wealth fund, I was told that CIC is very bullish on the United States. Why?
In CIC’s opinion, the existence of large shale gas reserves in the U.S. will provide a massive shot in the arm for the country’s large but mature economy — kind of a modern-day energy equivalent to the deus ex machina in Greek literature………………………………………..Full Article: Source

$62bln AusSuper fund eyes mergers

Posted on 14 June 2013 by VRS  |  Email |Print

AustralianSuper, the nation’s biggest industry fund, has tipped a spate of mergers through the $1.6 trillion retirement savings sector as funds seek to take on the wealth arms of the major banks. Ian Silk, the chief executive of the $62 billion AustralianSuper, has foreshadowed further deals by the fund, following mergers in recent years with the multibillion-dollar funds Westscheme and AGEST.
”It’s pretty clear that the regulators and public policy is pushing in the direction of a smaller number of large funds rather than a large number of smaller funds,” Mr Silk said………………………………………..Full Article: Source

Funds steer clear of Dubai real estate

Posted on 13 June 2013 by VRS  |  Email |Print

Qatar, the natural-gas-rich nation that’s Dubai’s neighbour to the west, has focused on domestic projects and foreign investments in cities like London rather than developments on its doorstep. Qatari Diar Real Estate Investment Co, part of the country’s sovereign-wealth fund, helped build London’s Shard skyscraper and formed a partnership with Canary Wharf Group Plc to redevelop the Shell Centre near the London Eye Ferris wheel into a complex of offices and apartments.
Abu Dhabi Investment Authority, among the world’s biggest sovereign-wealth funds, has a maximum allocation of 10 per cent for real estate investments, according to its website. The fund, backed by the emirate’s oil revenue, only invests outside the UAE………………………………………..Full Article: Source

India to incentivise SWFs to rescue rupee

Posted on 13 June 2013 by VRS  |  Email |Print

The Finance Minister today held a meeting with several officials in the Department of Economic Affairs (DEA) and will announce measures for arresting the rupee fall. The government is thinking of ways to incentivise sovereign wealth funds (SWF), especially those in the Middle East which have large amounts of money to come and invest in Indian debt and equity markets. In Indian debt market, one of the ways to incentivise them that is being considered is to allow them to rollover funds once maturity is reached.
Typically, now the SWF will once again have to bid for bonds. If rollover funds are allowed, then transaction cost for them will reduce and it will facilitate them to once again invest their money because these funds are for the long haul………………………………………..Full Article: Source

AIB ‘will not repay EUR3.5bln cash it owes’ to the Irish SWF

Posted on 13 June 2013 by VRS  |  Email |Print

Analysts at Goodbody Stockbrokers do not believe AIB will repay €3.5bn owed to the National Pension Reserve Fund but instead think the State’s investment arm will convert the debt into more shares in the bank that is already more than 99pc state owned.
In a note to investors, Eamonn Hughes of Goodbody said he thinks AIB’s €3.5bn of “preference shares”, which are held by the National Pension Reserve Fund on behalf of the State, will convert to equity in the bank. A decision on how and when that will happen will be made before May 2014, he said………………………………………..Full Article: Source

Oil-fueled Norwegian SWF buys 2.4 msf industrial portfolio in UK

Posted on 13 June 2013 by VRS  |  Email |Print

LondonMetric Property Plc, a real estate investment trust, has recently completed the sale of its stake in a large distribution portfolio to a joint venture between U.S.-based Prologis’ European branch and Norges Bank Investment Management. The JV purchased the eleven industrial properties that comprise the portfolio for a fee of around $380 million, reflecting a net initial yield of 6.25 percent.
The industrial portfolio totals 2.4 million square feet of space, with 10 of the properties being held by LondonMetric in a 50 percent joint venture with Green Park Investments. The remaining Focus Distribution Centre at Tamworth, was wholly owned by the British REIT. According to a press release, after repayment of debt and fees, LondonMetric made a $105 million profit………………………………………..Full Article: Source

Norwegian Parliament calls for stronger implementation of no-deforestation policy for investments

Posted on 13 June 2013 by VRS  |  Email |Print

Norway’s $700 billion sovereign wealth fund last year stepped up its no-deforestation policy, asking portfolio companies to disclose their impacts on tropical forests as part of the fund’s risk management strategy related to climate change. It divested from 23 palm oil companies found to be non-compliant with its policy.
Now the Norwegian Parliament is calling for stricter criteria, including a provision that tree plantations should not count as regrowth of natural forest………………………………………..Full Article: Source

Severn Trent falls most in 6 years after takeover dumped

Posted on 13 June 2013 by VRS  |  Email |Print

Severn Trent Plc (SVT) slumped the most in more than six years in London as Borealis Infrastructure Management Inc. and its Kuwaiti-British partners abandoned a 5.3 billion-pound ($8 billion) plan to take over the water utility.
Severn Trent fell 8.9 percent, the biggest drop since Oct. 9, 2006, on six times the average daily volume of the past three months. Bidders including Kuwait’s sovereign wealth fund said they decided against increasing their proposal after failing to get “meaningful engagement” from the U.K.’s second-largest publicly traded water company………………………………………..Full Article: Source

India to woo investments from $700-bln Norway wealth fund

Posted on 12 June 2013 by VRS  |  Email |Print

India is eyeing investments from the $700-billion sovereign wealth fund of Norway. External Affairs Minister Salman Khurshid will be meeting the fund officials during his ongoing visit to that country.
A Ministry spokesman said that the Minister would take forward discussions that Fund officials had here with senior Government officials, including Finance Minister P. Chidambaram; and Deputy Chairman of Planning Commission Montek Singh Ahluwalia; in April. The Minister will explore ways to facilitate investments into the country, including in the infrastructure sector, the spokesman said………………………………………..Full Article: Source

Will sovereign wealth investments save the Indian rupee?

Posted on 12 June 2013 by VRS  |  Email |Print

A sharply falling rupee has led India’s finance officials to consider relaxing the investment rules for foreign sovereign wealth funds. As India continues to fight off the widening current account deficit, the finance ministry, the central bank, and market regulators are hoping that external investment could shore up the country’s finances, and stave off its declining currency.
Two senior ministry officials, who declined to be named, told Reuters the aim was to attract more capital flows from wealth funds in Middle East countries. Finance Minister P Chidambaram has visited the Middle East in recent months to drum up investment………………………………………..Full Article: Source

Norwegian pension fund KLP divests from Total over Western Sahara concerns

Posted on 12 June 2013 by VRS  |  Email |Print

Norway’s KLP pension fund company is removing French oil stock Total from its portfolio on ethical grounds due to the company’s involvement in Western Sahara, the fund said. Jeanett Bergan, head of responsible investment at KLP Asset Management (KLP Kapitalforvaltning), said: “KLP considers Total’s operations on the continental shelf off Western Sahara can be linked to contravention of fundamental ethical norms.”
Based on the pension fund’s own review, along with urging from the Norwegian authorities and the experience of previous similar cases, KLP said it decided investing in Total risked might flout basic ethical principles………………………………………..Full Article: Source

Abe measures may boost gains in stocks, Temasek’s Fullerton says

Posted on 12 June 2013 by VRS  |  Email |Print

Japan Prime Minister Shinzo Abe’s efforts to revive the economy and fight deflation could lead to further gains in the country’s stocks, according to the head of Temasek Holdings Pte’s fund-management unit.
Abe needs to get through next month’s election for the upper house of parliament before he’s able to detail his reform plans, said Manraj Sekhon, chief executive officer of Fullerton Fund Management Co. Abe’s success in pushing his policies could drive earnings higher and more liquidity into equities, Sekhon said………………………………………..Full Article: Source

South Africa’s PIC buys $289mln stake in Dangote Cement

Posted on 12 June 2013 by VRS  |  Email |Print

Dangote Cement Plc, the industrial company owned by Africa’s richest man, Aliko Dangote, has sold a 1.5 percent stake to Public Investment Corporation of South Africa (PIC), a Sovereign Wealth Fund, managing pension funds.
The stake was sold at 179 naira share, valuing the deal at 45.8 billion naira ($289 million) and giving the Lagos-based company an implied market capitalization of $19.3 billion, Moscow-based Renaissance Capital said in an e-mailed statement………………………………………..Full Article: Source

Africa experiencing surge in sovereign funds

Posted on 12 June 2013 by VRS  |  Email |Print

Africa is experiencing the strongest growth in new sovereign wealth funds in the world as its nations are amassing commodity revenues and foreign-exchange reserves, JP Morgan Asset Management said on Monday.
During the past two years, 15 state funds have been set up or are being considered in Africa, the group’s global head of sovereigns Patrick Thomson said. The region would see more starting in coming years, he said………………………………………..Full Article: Source

Dubai’s ICD raises $2.55 bln to refinance part of $6 bln loan

Posted on 12 June 2013 by VRS  |  Email |Print

Investment Corp of Dubai (ICD), the holding company for some of the emirate’s best-known companies, has signed an upsized $2.5bn, five-year loan facility, it has said in a statement.
The new deal, which was arranged by a group of eight local and international banks, refinances an existing $2bn facility which is due to mature in August. Bankers told Reuters last month that the new loan had attracted heavy demand from lenders, with ICD considering an increase on its original $2bn target………………………………………..Full Article: Source

Nigeria’s Dangote Cement sells $289 mln stake to SWF

Posted on 11 June 2013 by VRS  |  Email |Print

Dangote Cement Plc (DANGCEM), the Nigerian industrial company owned by Africa’s richest man, sold a 1.5 percent stake to an unidentified sovereign wealth fund, according to Renaissance Capital, which helped manage the sale.
The stake was sold at 179 naira share, valuing the deal at 45.8 billion naira ($289 million) and giving the Lagos-based company an implied market capitalization of $19.3 billion, Moscow-based Renaissance Capital said in an e-mailed statement. The stake was sold by Dangote Industries Ltd., which owns 95 percent of the company, according to data compiled by Bloomberg………………………………………..Full Article: Source

Metals producer Suriname to set up SWF

Posted on 11 June 2013 by VRS  |  Email |Print

South American metals and energy producer Suriname, which signed deals last week with U.S. and Canadian miners, said on Monday that it plans to improve safeguards for investors and set up a sovereign wealth fund.
Suriname also plans to set up a sovereign wealth fund, which would use revenues from resources such as gold and oil, Sapoen said, to invest in sectors such as agriculture and tourism………………………………………..Full Article: Source

Singapore’s GIC said to open Brazil office as investments climb

Posted on 11 June 2013 by VRS  |  Email |Print

Government of Singapore Investment Corp., which manages more than $100 billion of the nation’s reserves, is planning to open a Sao Paulo office next year after investing in Brazil, a person familiar with the matter said.
The sovereign wealth fund, known as GIC, has hired Gastao Valente as senior vice president and Marcos Freitas as assistant vice president for its Brazilian investments, the person said, asking not to be identified as the information is confidential. The two executives are now working at its New York office, the person said. Mah Lay Choon, a GIC spokeswoman, declined to comment on the plan………………………………………..Full Article: Source

GIC cuts Adani ports & SEZ Holding

Posted on 11 June 2013 by VRS  |  Email |Print

In a block deal on BSE, Indivest, an affiliate of Government of Singapore Investment Corporation sold 1.94 Cr shares of Adani Ports & Special Economic Zone at a price of R150 per share aggregating to around R290 Cr.
As on quarter ending March’13, Indivest held 3.55 crore shares, equivalent to 1.78% stake in Adani Ports, while Mavi Investments Fund held 2.2 Cr shares, equivalent to 1.1% stake………………………………………..Full Article: Source

China SWF boosts assets to $500bln

Posted on 11 June 2013 by VRS  |  Email |Print

China Investment Corp’s return on overseas investments hit 11% in 2012, boosting the total fund size to $500 billion, President Gao Xiqing told Chinese newswires. According to the Xinhua News Agency, the higher return on overseas investments was in part due to its diversified investment portfolio.
“The investment return in the past five years has surpassed previous expectations a little bit, but not that much,” Gao said. Created in 2007, the sovereign wealth fund was tasked to earn higher returns from riskier investments using part of China’s foreign exchange reserves, which at $3.44 trillion are the world’s largest………………………………………..Full Article: Source

India considers easing rules for sovereign wealth funds to stem rupee fall

Posted on 11 June 2013 by VRS  |  Email |Print

India’s finance ministry, the central bank and market regulators on Monday discussed loosening rules for investment by foreign sovereign wealth funds in response to a sharply falling rupee and a wide current account deficit that are hurting the economy.
Two senior ministry officials, who declined to be named, said the aim was to attract more capital flows from wealth funds in Middle East countries. Finance Minister P Chidambaram has visited the Middle East in recent months to drum up investment………………………………………..Full Article: Source

World’s largest sovereign wealth fund buying British

Posted on 11 June 2013 by VRS  |  Email |Print

Norway’s oil fund has purchased a GBP 250m portfolio of suburban warehouses in the U.K. as it moves forward with plans to increase its property assets. The Norwegian Pension Fund Global, the world’s largest sovereign wealth fund, is buying 11 warehouses to be used as distribution centres for retailers such as Tesco, Primark and the Co-op, according to the Financial Times.
The warehouses, which are being bought from LondonMetric - a property group merged between London & Stamford and Metric Property Investments - have a total floor area of 2.4 million square feet………………………………………..Full Article: Source

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