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Sovereign Wealth Funds Briefing - Archive | August, 2013

Oil fund on troubled waters in Norway

Posted on 30 August 2013 by VRS  |  Email |Print

Three-quarters of a trillion dollars is enough to burn a hole in anybody’s pocket. And so it is proving in Norway where ahead of parliamentary elections on September 9 proposals are stacking up to reform the country’s $750bn oil fund, the largest sovereign wealth fund in the world.
Many of the suggestions on the face of it are sensible. But taken together they risk upsetting the delicate balance that has allowed the Norwegian fund to quadruple in size since 2005 and become one of the world’s most influential investors………………………………………..Full Article: Source

Norwegian politicians mull private equity investments

Posted on 30 August 2013 by VRS  |  Email |Print

Norwegian politicians are reportedly planning to enable the country’s sovereign wealth fund, the largest of its kind in the world, to invest in infrastructure and private equity, both of which are banned under the current rules.
Representatives from the Conservatives and the Progress Party, both of which are currently in opposition, told Reuters that they are open to considering investing in different asset classes abroad………………………………………..Full Article: Source

Peru’s Fiscal Stabilization Fund may look overseas for investments

Posted on 30 August 2013 by VRS  |  Email |Print

Established in 1999, Peru’s Fiscal Stabilization Fund (FEF) may look to overseas investments. Locally known as ‘Fondo de Estabilización Fiscal’, the conservative-oriented US$ 7.1 billion sovereign wealth fund may seek higher yielding assets. Peruvian Finance Minister Luis Miguel Castilla is pushing for changes in fund strategy.
On the economic policy front, the government of Peru has been focused paying down public debt and feeding the FEF. At the end of July 2013, Peru had US$ 67.724 billion in gross international reserves – US$ 989 million higher than June………………………………………..Full Article: Source

Nigeria picks asset managers for wealth fund

Posted on 30 August 2013 by VRS  |  Email |Print

Nigeria has appointed three asset managers to run its sovereign wealth fund: Goldman Sachs, UBS and Credit Suisse. The Sovereign Investment Authority (SIA) says these global investment banks were selected after a comprehensive process of review and evaluation of world class candidates.
The account is also known as the Stabilisation Fund — it aims to act as a buffer against short term macroeconomic instability. It holds the country’s oil and mineral profits………………………………………..Full Article: Source

Nigeria: TCN board seeks funding from Excess Crude Account

Posted on 30 August 2013 by VRS  |  Email |Print

The reconstituted supervisory board of the Transmission Company of Nigeria (TCN) has asked the federal government to finance expansion projects in Nigeria’s power sector with funds from the Excess Crude Account (ECA).
Chairman of the board and a onetime chairman of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) Haman Tukur, who spoke shortly after the board’s inauguration by the Minister of Power, Prof. Chinedu Nebo, yesterday in Abuja, asked the government to set aside at least $2 above the official benchmark price of crude oil to finance projects in the power sector………………………………………..Full Article: Source

Nigeria picks Goldman, Credit Suisse, UBS for wealth fund

Posted on 29 August 2013 by VRS  |  Email |Print

Nigeria’s sovereign wealth fund on Wednesday appointed Goldman Sachs , UBS and Credit Suisse as asset managers for the 20 percent portion of its $1 billion fund that is meant to cushion against oil price shocks, it said.
The sovereign wealth fund (SWF) seeks to help Nigeria better manage its oft squandered oil windfall, with a threefold aim of putting money aside for infrastructure investment, providing a savings pot for future generations and lastly protecting against commodity price shocks - the so-called stabilization fund………………………………………..Full Article: Source

Barclays’s Azar sees Middle East M&A driven by SWFs

Posted on 29 August 2013 by VRS  |  Email |Print

Middle East mergers and acquisitions, at a six-year high, will be driven by sovereign wealth funds and regional transactions amid an economic recovery in the Persian Gulf, according to a Barclays Plc (BARC) executive.
“M&A is back. Money is cheap and companies are feeling better about growth through acquisitions,” Makram Azar, vice chairman of investment banking, said in an interview yesterday. “There are two types of M&A happening in this region - sovereigns looking at acquisitions abroad to diversify and regional consolidation.”……………………………………….Full Article: Source

ADIA names Suresh Sadasivan head of Asia internal equities, excluding Japan

Posted on 29 August 2013 by VRS  |  Email |Print

The Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, Wednesday said it named Suresh Sadasivan as head of Asia, excluding Japan, within its internal equities department.
Sadasivan will help develop the strategy, oversee management and manage risk of the department’s investment portfolios for that region, according to an ADIA press release. He previously held the position of head of Asia Pacific equities within the fund’s legal and general investment management division. ADIA doesn’t disclose the value of its holdings, but is estimated to have around $627 billion (Dh2.3 trillion) of assets by the Sovereign Wealth Fund Institute………………………………………..Full Article: Source

Ex-LGIM executive joins Abu Dhabi sovereign fund

Posted on 29 August 2013 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, said on Wednesday it had appointed Suresh Sadasivan as head of its internal equities department for Asia excluding Japan.
Sadasivan will be responsible for developing strategy, managing risk and overseeing management of investment portfolios focused on that region for ADIA, a company statement said………………………………………..Full Article: Source

Who needs fund managers? New equities head at ADIA

Posted on 29 August 2013 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA) has appointed the former head of Asia Pacific equities at Legal & General Investment Management to run an internal team. The sovereign wealth fund has brought Suresh Sadasivan on board as head of Asia, ex Japan, it announced today. He will replace Lars Roemer Sorensen, who left the fund a few months ago after more than a five year tenure.
In its latest annual report, ADIA said it had brought five percentage points of its considerable assets under the auspices of its in-house investment team. At the end of 2012, some 75% of its assets were managed externally, down from approximately 80% a year earlier………………………………………..Full Article: Source

Norway’s opposition mulls SWF infrastructure investment abroad

Posted on 29 August 2013 by VRS  |  Email |Print

The world’s largest sovereign wealth fund, Norway’s $740-billion oil fund, might be allowed to invest in foreign infrastructure projects in the future, two opposition parties seen as front runners to form the next government said.
Currently Norway’s oil fund can invest only in equities, bonds and property. Some think tanks and non-governmental organisations have argued that it should also be able to invest in infrastructure and private equity as they fit the fund’s profile as a long-term investor………………………………………..Full Article: Source

Assets of the National Oil Fund to exceed $122 bln by 2016

Posted on 29 August 2013 by VRS  |  Email |Print

Assets of the National Oil Fund will exceed $122 billion by 2016 says the Kazakhstan’s Minister of Economic Affairs and Budget Planning Erbolat Dossayev. “With the oil revenues at the planned level, the assets of the National Oil Fund will rise from $93.9 billion in 2014 to $122.1 billion in 2016”, the Minister said.
As of August 1, the assets of the National Oil Fund stand at $64.343 billion (11.39% up against the start of the year). The National Fund of Kazakhstan was created in 2000 as a stabilization fund that accumulates windfall revenues from oil sales and ensures the economy of Kazakhstan will be stable against the price swings of oil. The assets of the National Fund assets are monitored by the National Bank of the Republic of Kazakhstan………………………………………..Full Article: Source

Azerbaijani oil fund cites revenues from ACG, Shah Deniz projects

Posted on 29 August 2013 by VRS  |  Email |Print

Since early 2001, the state oil fund SOFAZ, an entity that accumulates and manages Azerbaijan’s oil and gas revenues, has received over $89.428 billion within the implementation of the project on developing the giant Azeri-Chirag-Gunashli (AGC) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea, SOFAZ told Trend news agency on August 28.
According to SOFAZ, from early 2013 to August 26 it has received over $10.657 billion under the ACG project. The ACG block of fields has been producing since 1997. The production started from the Chirag part of the field and continues successfully………………………………………..Full Article: Source

State Oil Fund of Azerbaijan announces total revenue from Azeri-Chirag-Guneshli

Posted on 29 August 2013 by VRS  |  Email |Print

According to the data on August 26, since early 2001 within the implementation of project on block development of oil and gas fields of Azeri-Chirag-Guneshli (ACG) in Azerbaijani sector of the Caspian sea, State Oil Fund of Azerbaijan (SOFAZ) has recieved $89 428.4 million, SOFAZ told to Trend on Wednseday.
According to Fund, since early 2013 to August 26 within the Azeri-Chirag-Guneshli project the Fund received $10 657.5 million. The contract on Azeri-Chirag-Guneshli was signed on September 20, 1994………………………………………..Full Article: Source

Volume of revenues to Azerbaijani State Oil Fund from Shah Deniz project exceeds $1.4 bln

Posted on 29 August 2013 by VRS  |  Email |Print

As of August 26, around $1 467.6 million has come into Azerbaijan’s State Oil Fund since 2007, supporting the implementation of the project to develop the Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea, the State Oil Fund told Trend on Wednesday.
According to the report, the volume of revenue to the State Oil Fund within the Shah Deniz project amounted to $254.6 million from the beginning of this year to August 26. Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas. The contract to develop the offshore Shah Deniz field was signed on June 4, 1996………………………………………..Full Article: Source

State Oil Fund of Azerbaijan acquires about 25 tons of gold

Posted on 29 August 2013 by VRS  |  Email |Print

As of August 26, 2013, the State Oil Fund of Azerbaijan purchased 24 tons 887 kilograms (800,146 ounces) of gold, the Fund told Trend on Wednesday. The fund began purchasing gold from the first quarter of 2012, and as of July 1, 2013 the amount of the purchased gold amounted to 22 tons 399 kilograms (720,146 ounces).
According to the strategy of the State Oil Fund, five percent of the investment portfolio can be directed towards the purchase of gold. According to plans, the State Oil Fund buys gold in lots, and this process will take place over two years………………………………………..Full Article: Source

The problems inherent in plans for a UK sovereign wealth fund

Posted on 29 August 2013 by VRS  |  Email |Print

One of the features of economics is the way that ideas get recycled, repackaged and then re-presented. Sometimes this is a good thing as life can be circular and human behaviour changes much less than we might like to think over time.
However it is also true that the boat can have sailed and we have simply missed it. This was my major thought when I saw proposals for the UK to create a Sovereign Wealth Fund. After all we would need some sovereign wealth would we not? An opportunity to create a Sovereign Wealth Fund was available around 30 years ago if we had used part of the North Sea Oil revenues for this purpose………………………………………..Full Article: Source

India: 10 PSUs to raise Rs 15,000 cr via Sovereign Wealth Funds

Posted on 29 August 2013 by VRS  |  Email |Print

In an effort to boost forex inflows, the Finance Ministry has worked out a strategy for as many as 10 public sector entities to tap Sovereign Wealth Funds (SWFs) to raise at least Rs 15,000 crore in foreign currency. This will be part of a tax-free bond issue.
This is the first time that such funds have been allowed to be part of a tax-free bond issue. SWFs are normally state-owned, with funds collected from budget and trade surpluses. The money is normally invested in real and financial assets at home and abroad. Oil-rich West Asian nations own many of the world’s largest SWFs………………………………………..Full Article: Source

Sovereign wealth funds see profits of 2012 diminishing

Posted on 29 August 2013 by VRS  |  Email |Print

The world’s biggest sovereign wealth funds may see their bumper profits of 2012 diminish this year as recent diversification into high-growth emerging markets starts to produce disappointing returns.
Their long-term horizon may allow many sovereign funds, which globally control $5 trillion of oil and other windfall assets, to weather losses. But the sheer size of these funds may increasingly limit the window of opportunities even when emerging markets recover………………………………………..Full Article: Source

Bank of Thailand eyes sovereign wealth fund

Posted on 28 August 2013 by VRS  |  Email |Print

The Bank of Thailand is studying a plan to use its surplus foreign reserves to establish what would be called a New Opportunity Fund, aimed at increasing returns as a part of efforts to improve the central bank’s balance sheet.
Pongpen Ruengvirayudh, the central bank deputy governor overseeing monetary stability, said such a sovereign wealth fund, if established, would be managed by a separate organisation or even the central bank itself. The study will not take long, but the fund’s size cannot yet be estimated………………………………………..Full Article: Source

Future Fund accused of withholding docs in airport spat

Posted on 28 August 2013 by VRS  |  Email |Print

AustralianSuper has upped the ante in its dispute over the Future Fund’s purchase of a stake in Perth airport, accusing the $80 billion sovereign wealth fund of withholding crucial documents.
AustralianSuper said it had requested documentation from the Future Fund in relation to the allocation of the purchase price of the airport assets from the Australian Infrastructure Fund (AIX) and is pursuing this matter in the best interest of its two million members. “These documents are being sought so that we can determine whether to pursue a claim arising from the sale of the AIX assets,” said an AustralianSuper press release………………………………………..Full Article: Source

Saudi Arabia ranks second in terms of SWF assets

Posted on 28 August 2013 by VRS  |  Email |Print

Saudi Arabia ranked second globally and first at the Arab level in terms of the assets of sovereign wealth funds (SWFs), local media said quoting a report released by the SWF Institute.
According to the report, assets and foreign holdings of the Saudi Arabian Monetary Agency (SAMA), or the Kingdom’s central bank, stood at $675.9 billion in August of the current year compared to $532.8 billion in June. Norway, represented by the Government Pension Fund, occupied the first rank globally on holding the biggest SWF assets valued at $737.2 billion, the report said………………………………………..Full Article: Source

Norwegian Pension Fund asks Statoil for improved shale gas disclosure

Posted on 28 August 2013 by VRS  |  Email |Print

The NOK151bn (€18.7bn) Government Pension Fund Norway (GPFN) has asked energy company Statoil to improve reporting on its US shale gas operations.
Melanie Brooks, senior analyst for responsible investment at Folketrygdfondet, the fund’s manager, said that information on how the company manages environmental challenges was vital due to the associated financial risk………………………………………..Full Article: Source

2Q 2013 Linaburg-Maduell Transparency Index Ratings

Posted on 28 August 2013 by VRS  |  Email |Print

The second quarter results for 2013 on sovereign wealth fund transparency have now been released to the public. The Linaburg-Maduell Transparency Index was developed at the Sovereign Wealth Fund Institute by Carl Linaburg and Michael Maduell.
The Linaburg-Maduell transparency index is a method of rating transparency in respect to sovereign wealth funds. Pertaining to government-owned investment vehicles, where there have been concerns of unethical agendas, calls have been made to the larger “opaque” or non-transparent funds to show their intentions………………………………………..Full Article: Source

Future Fund denies wrongdoing in Perth Airport deal

Posted on 27 August 2013 by VRS  |  Email |Print

The Future Fund will oppose a preliminary discovery application lodged by AustralianSuper, denying any liability for the damages incurred by Australia’s largest super fund during its acquisition of a shareholding in Perth Airport Development group.
In February the $60 billion AustralianSuper threatened legal action against the $85 billion sovereign wealth fund. The Future Fund is alleged to have breached a shareholders’ agreement in its $2 billion purchase of a stake in Perth airport from Australian Infrastructure Fund (AIX). AustralianSuper is seeking damages — thought to be in the region of $100 million………………………………………..Full Article: Source

Khazanah Nasional’s RM10bln Islamic notes affirmed at AAA

Posted on 27 August 2013 by VRS  |  Email |Print

Khazanah Nasional Bhd has proposed to issue RM10bil multi-currency Islamic securities programme via Danga Capital Bhd, which is a trust-owned special purpose vehicle. RAM Rating Services Bhd had on Monday reaffirmed the AAA rating of Danga Capital debt notes. It said the long-term rating has a stable outlook.
Danga, a trust-owned special purpose vehicle, had been incorporated for the sole purpose of facilitating the issuance of the Islamic securities programme (ISP)………………………………………..Full Article: Source

Norway’s oil fund can reinvest in Israel firms

Posted on 27 August 2013 by VRS  |  Email |Print

Norway’s $750 billion sovereign wealth fund can once again invest in Africa Israel Investments and its subsidiary, construction firm Danya Cebus, the Norwegian finance ministry said. The firms were excluded from the fund, the world’s largest, in 2010 on the recommendation of its ethics council as they were involved in the building of Israeli settlements in the West Bank.
A recent review revealed the firms and their subsidiaries were no longer involved in the construction of settlements in the West Bank and they had no plans for such activities in future, the finance ministry said in a statement……………………………………….Full Article: Source

Sovereign and pension funds exempt from Italy’s Tobin tax

Posted on 27 August 2013 by VRS  |  Email |Print

Financial transactions involving sovereign funds, such as treasury bonds, won’t be subject to the new Financial Transaction Tax (FTT) - the so-called Tobin tax - which goes into effect on October 16, the Italian economy ministry announced on Monday.
”Entities and organizations invested in by pension funds” will also be exempt from tariffs on equity and derivatives transactions, but ethical or socially responsible funds will not, the ministry clarified. Companies that buy shares in their controlled entities, or buy back their own stock to eliminate shares, also won’t pay the new tax destined to hit both counterparties in most equities transactions………………………………………..Full Article: Source

Mubadala Petroleum to develop offshore Thailand oil well

Posted on 27 August 2013 by VRS  |  Email |Print

Mubadala Petroleum, in concert with KrisEnergy Limited, has recently announced the approval of an oil well development off the coast of Thailand near the Pattani and Malay Basins.
According to a press release issued by Mubadala Petroleum, production will begin in the first half of 2015, with peak rates of 10,000 barrels of oil a day expected a few months after. The development will also include a minimum facility wellhead platform, a wellhead processing platform, and crude oil will be exported by way of a floating storage and offloading vessel………………………………………..Full Article: Source

Lawmakers hopeful Future Fund can work despite key differences in industries of WV and ND

Posted on 27 August 2013 by VRS  |  Email |Print

With a trust fund fueled by severance taxes from the oil industry, North Dakota has saved nearly $1.5 billion in just 20 months. While some West Virginia lawmakers hope to start a similar fund using taxes from the Marcellus shale industry, others are still skeptical of the revenues the state can expect.
North Dakota’s tax department collected nearly $3.5 billion from the state’s oil and natural gas production alone between 2011 and 2013. In those same two years, West Virginia collected about $875 million in severance taxes, which includes all of the state’s extraction industries………………………………………..Full Article: Source

Sovereign wealth funds are approaching 6 trillion in assets

Posted on 26 August 2013 by VRS  |  Email |Print

Sovereign wealth funds are approaching US$ 6 trillion in assets. Increases in stock markets globally have helped lift the value of sovereign wealth assets.“Rising globally, sovereign wealth funds are springing up from Africa to certain states in the U.S.,” commented Michael Maduell, President of the Sovereign Wealth Fund Institute.
Asia and the Middle East hold the bulk of sovereign wealth fund assets. Those regions have time and flow on their side………………………………………..Full Article: Source

New way for Norway’s investments

Posted on 26 August 2013 by VRS  |  Email |Print

The Norwegian government should establish a new fund, the Government Pension Fund – Growth, to invest in developing countries, resulting in the dual benefits of jobs creation and investment returns for the fund, recommends a report by Re-define, commissioned by Norwegian Church Aid.
The NCA, which is a member of the humanitarian alliance, Act Alliance, believes that the $760 billion sovereign wealth fund’s unique long-horizon positions it for investment in developing countries, and could go some way to providing capital for job creation………………………………………..Full Article: Source

Norway PM plans lower oil money use

Posted on 26 August 2013 by VRS  |  Email |Print

Prime Minister Jens Stoltenberg plans to use less oil money in 2014, NOK 50 billion below the maximum four per cent rule. “As the figures now stand, we’ll be preparing to use barely three per cent of the Government Pension Fund next year,” he told business daily Dagens Næringsliv.
“Next year’s oil spending will be on par with the lowest ever recorded.” The Prime Minister added he believes spending the highest possible amount next year could create problems for the Norwegian economy “at a time we’re concerned about high cost growth, the exchange rate, and the rate of interest.”……………………………………….Full Article: Source

Oman Investment Fund may buy stake in Indian commodities and futures exchange

Posted on 26 August 2013 by VRS  |  Email |Print

Economic Times of India reports that Delhi-based broker Jaypee Capital Services is in advanced talks to sell part of its stake in the National Commodity & Derivatives Exchange Limited (NCDEX) to Omani sovereign wealth fund Oman Investment Fund.
Jaypee Capital Services is said to be close to selling 14.7 per cent to IDFC Private Equity Fund and Oman Investment Fund for INR 1.32 billion (INR 180 a share). About five per cent will go to IDFC PE for INR 440 million while 9.7 per cent will be sold to OIF for INR 880 million said Economic Times. The two deals value NCDEX at INR 9.12 billion. Motilal Oswal’s Investment Banking arm is Jaypee’s advisor………………………………………..Full Article: Source

Future Fund says infrastructure assets not in bubble territory

Posted on 26 August 2013 by VRS  |  Email |Print

The $85 billion Future Fund has defended the price it paid for a stake in Perth Airport and dismissed concerns that infrastructure assets are in bubble territory.
The fund, which was established in 2006 to oversee the retirement savings of commonwealth government public servants, said fears that recent entrants to the market, such as global pension and endowment funds, had pushed up prices to unsustainable levels were overdone………………………………………..Full Article: Source

Temasek Holdings captures gain on Cheniere Energy sale

Posted on 26 August 2013 by VRS  |  Email |Print

In a sale reportedly worth US$ 257 million, Temasek Holdings Pte has unloaded all of its roughly 9.2 million shares of Cheniere Energy Inc (LNG). An article posted by the Sovereign Wealth Fund Institute earlier notes that Temasek acquired the shares in May of 2012 through a partnership with RRJ Capital.
That purchase was worth US$ 468 million and gave the investors a 19.9% stake in the energy exporter. Public shares in Cheniere Energy rose dramatically after RRJ Capital and Temasek bought their stake. Officials at Temasek realized the potential of the Louisiana-based Sabine Pass facility, exporting liquefied natural gas to Asia……………………………………….Full Article: Source

In Jho Low, magazine sees link between 1MDB and Mid East funds

Posted on 26 August 2013 by VRS  |  Email |Print

It is an intricate network of firms, directorships and partnerships with flamboyant tycoon Jho Low at its centre, but Focus Malaysia believes it has unravelled it to show the connection between local investment fund 1 Malaysia Development Bhd (1MDB) and its Middle East backers.
In a front-page story on the enigmatic Penang-born businessman, the business weekly sought to chart the link between 1MDB and Jynwel Capital Ltd, the flagship of the mogul believed to be behind Korean pop sensation Psy’s appearance at the Barisan Nasional (BN) Chinese New Year open house in Penang earlier this year………………………………………..Full Article: Source

New Mexico has the money; Can it spend it correctly?

Posted on 23 August 2013 by VRS  |  Email |Print

New Mexico has America’s third-largest sovereign wealth fund, according to the Sovereign Wealth Fund Institute, an organization that monitors these government managed investment funds. Coming in at slightly more than $17 billion in size, it’s also the 31st largest such fund in the world. The Institute also ranks fund managers on how much integrity and transparency they exhibit in their fiduciary duties; New Mexico actually scores pretty high in this category as well.
That’s the good news. The bad news is the New Mexico Permanent Fund can only be used to invest in public education. But what if there was an opportunity to take a one-time piece of the fund, say 15 percent of the principle, and apply it over a four- to five-year New Mexico budget cycle, with some additional changes in the gross receipts tax, and then cut all New Mexico income taxes to zero, and do so on a permanent, sustaining basis?……………………………………….Full Article: Source

Nigeria and the quest for a sovereign wealth fund

Posted on 23 August 2013 by VRS  |  Email |Print

For quite some time now, especially during the time when late president Umaru Yar’Adua was alive, consideration for creation of a Sovereign Wealth Fund (SWF) for Nigeria was giving exploratory attention within government public policy and national economic management cycles.
The issue was rekindled when the current Minister of Finance, Olusegun Aganga was brought into the cabinet, following the death of President Yar’Adua on May 09, 2010. For example, a Technical Committee was established by Aganga to workout the modalities for the creation of the Fund………………………………………..Full Article: Source

Excess crude cash shrinks to $5.1bln

Posted on 23 August 2013 by VRS  |  Email |Print

Reserves in the Excess Crude Account (ECA) shrunk to $5.1 billion following the withdrawal of N115 billion from it to augment revenue shortfall for the July Federation Account Allocation Committee (FAAC) disbursements to the federal, states and local governments.
Minister of State for Finance Dr. Yerima Lawan Ngama told reporters after a belated FAAC meeting in Abuja yesterday that it became necessary to draw from the ECA because of a massive drop in revenue from N863.026 billion received in June 2013 to N497.984 billion in July………………………………………..Full Article: Source

Oman Investment Fund augments NCDEX stake

Posted on 23 August 2013 by VRS  |  Email |Print

The Oman Investment Fund (OIF) is said to be purchasing a 9.7% stake in futures exchange National Commodity Derivatives Exchange Ltd. (NCDEX) to the tune of Rs 88 crore (US$ 13.6 million). According to the Economic Times, the NCDEX shares are being acquired from Delhi-based broker Jaypee Capital Services Limited.
According to Sovereign Wealth Fund Institute transaction data, this will add to their already 5% stake in the exchange, a deal that was recorded at US$ 7.3 million………………………………………..Full Article: Source

Scandinavia’s richest economy stumbles as euro area rebounds

Posted on 23 August 2013 by VRS  |  Email |Print

Norway, western Europe’s biggest oil and gas producer and home to a $760 billion wealth fund, is struggling to spur demand just as the rest of Europe surfaces from half a decade of economic pain. According to DNB ASA (DNB), the country’s biggest bank, Norway will be the only European nation of the 15 it tracks whose economic growth won’t accelerate next year.
Signs of an economic slowdown come as the Labor-led government of Prime Minister Jens Stoltenberg trails in the polls against an opposition that’s promised tax cuts. Both sides have made pledges that draw on the nation’s sovereign wealth fund, the world’s biggest. Norwegians vote on Sept. 9………………………………………..Full Article: Source

Superannuation assets hit $1.62 trillion

Posted on 23 August 2013 by VRS  |  Email |Print

The size of the superannuation industry rose by 15.5 per cent in the 12 months to 30 June 2013, to $1.62 trillion. The Australian Prudential Regulation Authority’s (APRA’s) Quarterly Superannuation Performance report found total superannuation assets increased by $217.2 billion for the year to 30 June 2013, and $35.1 billion (2.2 per cent) for the June 2013 quarter.
While the self-managed superannuation fund (SMSF) sector still makes up the largest proportion of the industry at 31.3 per cent of assets, it recorded the smallest increase at 0.8 per cent………………………………………..Full Article: Source

GIC buying 50pct stake in Broadgate

Posted on 23 August 2013 by VRS  |  Email |Print

GIC Pte, the Singapore sovereign wealth fund, is the buyer of Blackstone Group LP’s stake in London’s Broadgate office complex, according to two people with knowledge of the transaction.
GIC is buying 50 per cent of Broadgate, a cluster of 16 office buildings, shops and restaurants on 12ha in London’s main financial district, according to the people. Bloomberg News reported on August 20 that Blackstone agreed to sell the stake for more than US$2.7 billion (RM8.9 billion)………………………………………..Full Article: Source

Singapore wealth fund in talks to become London City’s new landlord

Posted on 23 August 2013 by VRS  |  Email |Print

The Square Mile’s famous Broadgate Estate looks like it may be changing hands, with the Singapore sovereign wealth fund reportedly closing in on an £1.7bn sale. The 15-building estate right in the heart of the City is home to thousands of financial workers and several big names, including UBS.
The site has been co-run by US private equity giant Blackstone and US property firm British Land since 2009. Blackstone is now looking to sell its share to the Singapore Investment Corporation Private Limited (GIC)……………………………………….Full Article: Source

Bankruptcy at heart of $1.46 bln hotel deal including La Quinta

Posted on 23 August 2013 by VRS  |  Email |Print

Although the California hotel recovery is in full bloom with rising room rates and occupancy, signs of the bad old days during the last economic downturn were still in evidence as a report showed that one of the state’s largest hotel sales of the year was based on a bankruptcy.
The government of Singapore’s sovereign wealth fund bought the 2,000-acre La Quinta Resort & Club out of bankruptcy in February from New York hedge fund Paulson & Co. and Winthrop Realty Trust of Boston, according to consulting firm Atlas Hospitality Group………………………………………..Full Article: Source

Lawmakers hope for ‘future fund’ after North Dakota trip

Posted on 23 August 2013 by VRS  |  Email |Print

West Virginia legislators from both parties say they are hopeful about the prospects of setting up a “future fund” based on oil and gas revenues, after spending Thursday in meetings in North Dakota learning how that state’s legislature went about setting up a similar fund.
Senate President Jeff Kessler, D-Marshall, who spearheaded the trip of 19 legislators, said that he fully expects to propose legislation that would use oil and gas severance taxes to create a permanent fund for infrastructure, economic development or future tax relief………………………………………..Full Article: Source

Sovereign funds’ fortunes turn as emerging assets sour

Posted on 22 August 2013 by VRS  |  Email |Print

The world’s biggest sovereign wealth funds may see their bumper profits of 2012 diminish this year as recent diversification into high-growth emerging markets starts to produce disappointing returns.
Their long-term horizon may allow many sovereign funds, which globally control $5 trillion of oil and other windfall assets, to weather losses. But the sheer size of these funds may increasingly limit the window of opportunities even when emerging markets recover………………………………………..Full Article: Source

Norway’s oil fund can reinvest in Africa Israel Investments, Danya Cebus

Posted on 22 August 2013 by VRS  |  Email |Print

Norway’s $750 billion sovereign wealth fund can once again invest in Africa Israel Investments and its subsidiary, construction firm Danya Cebus , the Norwegian finance ministry said on Wednesday.
The firms were excluded from the fund, the world’s largest, in 2010 on the recommendation of its ethics council as they were involved in the building of Israeli settlements in the West Bank………………………………………..Full Article: Source

We will not ditch oil and gas, says Norway finance ministry after criticism of $750bln fund

Posted on 22 August 2013 by VRS  |  Email |Print

The $750 billion Government Pension Fund of Norway (GPF) has responded to a review of its investment strategy, which described its ethical footprint as “severely limited” and its attitude to climate change as “schizophrenic”.
The report, by the thinktank Re-Define and commissioned by Norwegian Church Aid, found what it calls “serious deficiencies” within the fund’s investments………………………………………..Full Article: Source

August 2013
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