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Sovereign Wealth Funds Briefing - Archive | October, 2013

The Future Fund’s secret to success (Video)

Posted on 24 October 2013 by VRS  |  Email |Print

Australia’s sovereign wealth fund is toasting another strong result thanks to rising equity markets and its move away from debt securities over the past 12 months. The Future Fund’s average annual return over three years has been nearly 10 per cent.
However experts say a number of mainstream super funds have done better………………………………………..Full Article: Source

Citigroup arbitration released by Abu Dhabi sovereign fund

Posted on 23 October 2013 by VRS  |  Email |Print

Abu Dhabi Investment Authority made public an arbitration ruling against it in its claim against Citigroup Inc.over a $7.5 billion investment in the bank in 2007, after a judge ordered the decision made public.
U.S. District Judge Kevin Castel in Manhattan ordered a redacted version of the 84-page decision made public, over the objections of Abu Dhabi Investment Authority, a sovereign wealth fund also known as ADIA. The fund complied yesterday. Citigroup announced the result of the arbitration in November 2011………………………………………..Full Article: Source

Mubadala appoints Verno Capital to advise on Russia

Posted on 23 October 2013 by VRS  |  Email |Print

Mubadala Development Co. hired Verno Capital to advise on its co-investment with the Russian Direct Investment Fund, said Dimitri Kryukov, the fund’s founder. The advisory mandate is related to a $2 billion investment fund, which Mubadala, based in Abu Dhabi, set up earlier this year with the RDIF, Kryukov said in an interview in Moscow.
The Russian government established the RDIF in 2011 to lure foreign investment and wean the world’s largest energy supplier of its dependency on commodity exports………………………………………..Full Article: Source

KIA 1st of strategic planning globally

Posted on 23 October 2013 by VRS  |  Email |Print

The Lord Mayor of London Alderman Roger Gifford, Head of London’s global financial district, said Kuwait Investment Authority (KIA), the country’s leading fund, is the first global sovereign wealth fund of strategic planning and success in selection of investment opportunities.
In an exclusive interview with KUNA, Lord Gifford said his two-day visit to the country was his second, during which he met with a number of Kuwaiti officials to follow up on issues of common interests, adding that it preceded end of his term as mayor………………………………………..Full Article: Source

Temasek sells stake in K-REIT for S$125 mln

Posted on 23 October 2013 by VRS  |  Email |Print

Singapore state investor Temasek Holdings has sold its entire direct stake in property firm Keppel Reit (K-REIT) for around S$125 million ($101.04 million), the Business Times reported.
Temasek’s share sale works out to be a stake of 3.74 percent in the property firm which it had received as part of a dividend distribution from Keppel Corp, the paper said citing sources………………………………………..Full Article: Source

Blackstone, GIC buy stake in Goldman’s European insurer

Posted on 23 October 2013 by VRS  |  Email |Print

Blackstone Group LP and GIC Pte, Singapore’s sovereign wealth fund, agreed to buy a majority stake in Goldman Sachs Group Inc’s European insurance business.
Blackstone, the world’s biggest private-equity firm, and GIC will each buy 28.5 percent of the shares in Rothesay Life Ltd., a London-based insurer run by Goldman Sachs partner Addy Loudiadis, Goldman Sachs said in a statement today. Massachusetts Mutual Life Insurance Co. will also buy 7 percent, and Goldman will retain 36 percent. The price wasn’t disclosed………………………………………..Full Article: Source

Selangor plans RM1bln sovereign wealth fund

Posted on 23 October 2013 by VRS  |  Email |Print

The Selangor state government is planning to set up a RM1 billion sovereign wealth fund as a way to develop its major urban centres like Petaling Jaya and Klang into “worldclass” cities. The Selangor Urban Development Fund will raise part of the money from private sector businesses in real estate and infrastructure development by leveraging assets like stateowned land.
The fund will be parked under the state’s Mentri Besar Inc. Selangor Mentri Besar Tan Sri Khalid Ibrahim revealed the plan in Johor while presenting a paper at the Future of Urban Living Conference in Iskandar………………………………………..Full Article: Source

Wealthy Norway mulls investment in renewables

Posted on 23 October 2013 by VRS  |  Email |Print

Norway’s new government is mulling over the prospect of investing some of its sovereign wealth fund in renewable energy projects across the world.
The government, to be led by Conservative party leader Erna Solberg, is set to establish an investment programme for the Government Pension Fund of Norway with the purpose of backing sustainable projects and companies………………………………………..Full Article: Source

Alaska’s Permanent Fund notches nifty $2.2 bln return in last quarter

Posted on 23 October 2013 by VRS  |  Email |Print

Alaska’s Permanent Fund continued to swell in the first three months of the fiscal year, gaining $2.2 billion to reach a total of $47 billion, according to the corporation that manages Alaska’s biggest account.
The fund, the piggy bank that puts money into Alaskans’ pockets each fall, is invested conservatively and returned 4.6 percent during the 90-day stretch starting in July, said a statement from the Alaska Permanent Fund Corp. For all of fiscal year 2013, the fund increased in value $4.3 billion………………………………………..Full Article: Source

Assets of Azerbaijani State Oil Fund hit $36 bln

Posted on 22 October 2013 by VRS  |  Email |Print

Budget revenues of the State Oil Fund of the Republic of Azerbaijan from January-September, 2013 reached 10.086 billion manat, while budget expenditures constituted 8.746 billion manat, a message from the State Oil Fund said.
According to the message, revenue of 9.774 billion manat was received from implementation of oil and gas agreements, including 9.766 billion manat from the sale of profit oil and gas, 1.7 million manat as acreage fees, 6.0 million manat as transit payments, 0.3 million manat as bonus payments and 0.06 million manat from the sale of assets received from foreign companies………………………………………..Full Article: Source

SOFAZ cites revenues from ACG, Shah Deniz projects

Posted on 22 October 2013 by VRS  |  Email |Print

Since early 2001 as of October 1, Azerbaijan’s state oil fund SOFAZ received over $90.878 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 Baku-based Trend news agency on October 18.
SOFAZ, an entity that accumulates and manages Azerbaijan’s oil and gas revenues, reported that it received over $12.107 billion under the ACG project in January-September 2013………………………………………..Full Article: Source

Will Norway’s green aspirations hurt Statoil?

Posted on 22 October 2013 by VRS  |  Email |Print

The Norwegian government is looking at making more green investments. Seeing as Norway runs a sovereign wealth fund worth around $700 billion and is the majority owner of the oil major Statoil , its investment decisions impact the real world. It is unlikely that Statoil would be forced to make unprofitable investments just to tickle Oslo’s fancy, but it is still important to examine all of the options.
Statoil’s history in renewables: The company has had small interests in renewables for a number of years. The encouraging news is that a number of its green investments are in wind-related resources. It recently acquired a 70% interest in the Dudgeon wind project in the U.K. It also has joint ownership of the Sheringham Shoal offshore wind farm………………………………………..Full Article: Source

Oman Investment Fund signs MoU to back antimony roasting facility

Posted on 22 October 2013 by VRS  |  Email |Print

On October 9, 2013, London-based Tri-Star Resources signed a non-binding Memorandum of Understanding (MoU) with the Oman Investment Fund and Castell Investments Limited, a subsidiary of Dubai Transport Company, to create a joint venture company to build and operate an antimony roasting facility in Oman. Publicly-traded Tri-Star Resources is an integrated antimony development company.
The joint venture company is to be called Strategic and Precious Metals Processing LLC and will be incorporated in the Sohar Free Trade Zone in Oman. The facility is estimated to cost US$ 60 million. Final binding joint venture agreements are expected to be completed in November 2013………………………………………..Full Article: Source

On Nigeria’s sovereign wealth fund

Posted on 22 October 2013 by VRS  |  Email |Print

There was a time the Minister of Finance, Dr Ngozi Okonjo-Iweala, was championing the need for the country to have a Sovereign Wealth Fund. I really don’t know how far she has gone on this, but I support her reasons for coming up with the fund.
We can’t just keep spending all we are earning from crude oil. I understand some state governors are against this fund because it will mean that they will be forced to contribute to the account, which will result in a reduction of their allocation from the Federation account………………………………………..Full Article: Source

NZ Super to offer more active mandates

Posted on 22 October 2013 by VRS  |  Email |Print

After posting its strongest-ever result from active investment activities, the New Zealand Superannuation Fund is reviewing plans to invest more in emerging markets and energy-related assets.
These value-added plays help NZ Super achieve a high level of diversification as well as improve returns, says head of investments Fiona Mackenzie……………………………………….Full Article: Source

Malaysia’s Khazanah raises stake in Sri Lanka’s JKH

Posted on 22 October 2013 by VRS  |  Email |Print

Malaysia’s Khazanah Nasional Berhad said it had rasied its stake in Sri Lanka’s John Keells Holdings to above 10 percent of the company. Khazanah originally bought an 8.85 percent stake in March 2012, though, Broga Hill Investments Ltd, an investment vehicle.
In a stock exchange filing Broga Hill Investments said it now had a 10.55 percent stake in JKH. JKH is raising funds through a rights issue for a 650 million US dollar plus integrated resort in Colombo………………………………………..Full Article: Source

Global SWFs’ combined portfolio rises to USD6trn

Posted on 21 October 2013 by VRS  |  Email |Print

Global sovereign wealth funds now hold more than USD 6 trillion in investments with Middle East funds contributing 35% of the assets, according to latest data from Sovereign Wealth Fund Institute.
Collectively, the funds’ assets have risen by more than USD 1 trillion in nine months, suggesting that the richest fund continue to find investment opportunities in a low-growth economic environment. The SWF Institute data from 73 funds, however, is around USD 600 billion higher than estimates by Preqin Sovereign Wealth Fund Review, which recently pegged the SWFs’ combined assets at USD 5.38 billion………………………………………..Full Article: Source

Norway wealth fund cautions against costs exacted by high-speed trading

Posted on 21 October 2013 by VRS  |  Email |Print

Despite being one of the largest single investors in the world, Norway’s sovereign wealth fund rarely makes waves. Now, though, the $750 billion fund is preparing to raise its voice on a sensitive topic: the increasing computerization of the stock markets and the costs it has imposed on big long-term investors.
Wall Street firms and exchanges have long said that the speed and competition in the markets has made trading cheaper for everyone. Mary Jo White, the chairwoman of the Securities and Exchange Commission, recently referred to the United States stock market as the “envy of the world.”……………………………………….Full Article: Source

Volume of proceeds to Azerbaijan’s State Oil Fund from ACG project nears $91 bln

Posted on 21 October 2013 by VRS  |  Email |Print

As of Oct. 1, some $90,878.5 million was received by the State Oil Fund of Azerbaijan (SOFAZ) from early 2001 within frameworks of the project of development of the Azeri-Chirag-Guneshli (ACG) block of oil field in the Azerbaijani sector of the Caspian Sea, SOFAZ told Trend on Friday.
SOFAZ said that in January-September 2013 it received $12,107.6 million as part of the Azeri-Chirag-Guneshli project. The contract for development of Azeri-Chirag-Guneshli large offshore field was signed in 1994………………………………………..Full Article: Source

AfDB ups expectations of NSWF for infrastructure funding

Posted on 21 October 2013 by VRS  |  Email |Print

The Africa Development Bank (AfDB) says it expects the Nigerian Sovereign Wealth Fund (NSWF) to be the chief mobiliser of funding requirement by Nigeria to meet its infrastructure need in coming years.
The AfDB estimates that full implementation of its Infrastructure Action Plan (IAP) for Nigeria would require some $350 billion of development expenditures between 2011 and 2020 and has proposed for the SWF to mobilise from other public and private sources at least $3 for each $1 of SWF contributions to the programme………………………………………..Full Article: Source

Qatar to fund Dh2bln Arab cultural centre in Washington

Posted on 21 October 2013 by VRS  |  Email |Print

The Qatar Foundation plans to open a centre dedicated to teaching Arab culture and the Arabic language to American pupils as part of a massive development project in Washington that Doha is helping finance.
The first phase of CityCenterDC, one of the largest construction projects in the United States, is being financed by US$622 million (Dh2.28bn) from the Qatari Diar Real Estate Investment Co, which is part of the country’s sovereign wealth fund, the Qatar Investment Authority………………………………………..Full Article: Source

Thailand’s central bank rules out sovereign fund

Posted on 21 October 2013 by VRS  |  Email |Print

Thailand’s central bank governor Prasarn Trairatvorakul yesterday ruled out the possibility of a sovereign wealth fund any time soon, saying there was a lack of instruments to manage risks. “We have diversified our investment portfolio within the risk management framework,” he said. “There is no initiative to establish any kind of a fund at the moment.”
Earlier, Pongpen Ruengvirayudh, the deputy governor overseeing monetary stability, said the bank was 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 its balance sheet. Such a sovereign wealth fund would be managed by a separate organisation or the central bank………………………………………..Full Article: Source

Well-trained managers the SAFE way to manage assets

Posted on 21 October 2013 by VRS  |  Email |Print

Sources say other government agencies in Beijing such as China Investment Corp (CIC), the mainland’s US$480 billion sovereign wealth fund, are mulling similar plans. For LBS and even the British government, the deal shows mutual trust and, in the long run, may increase Chinese interest in investing in Britain. After all, some of those LBS graduates could go on to become top central bankers and government leaders.
The manager of the world’s largest foreign exchange reserves appears to have finally come to a valuable conclusion - if you want to manage your assets well, you must first know how to manage your people………………………………………..Full Article: Source

Superannuation fund wants to invest in iwi businesses

Posted on 21 October 2013 by VRS  |  Email |Print

The New Zealand Superannuation Fund says it’s keen to work with iwi to invest in businesses. The fund invests money, on behalf of the Government, to help pay for the increased cost of superannuation in the future.
Superannuation Fund chief executive Adrian Orr says they are continually working to find good investments in New Zealand. Mr Orr says his team is working with various iwi groups, particularly Tainui and Ngai Tahu, and the fund is very keen to co-invest with iwi, either within their rohe (territory) or elsewhere………………………………………..Full Article: Source

Fitch assigns Kazakhstan’s Samruk-Kazyna ‘BBB+’ rating

Posted on 21 October 2013 by VRS  |  Email |Print

Fitch Ratings has assigned Kazakhstan’s Joint Stock Company Sovereign Wealth Fund Samruk-Kazyna a Long-Term foreign currency rating of ‘BBB+’, Long-Term local currency rating of ‘A-’, National Long-Term rating of ‘AAA(kaz)’ and Short-term foreign currency rating of ‘F2′.
The Outlooks on the Long-Term ratings are Stable. Fitch has also assigned a Long-Term local currency rating of ‘A-’ and a National Long-Term Rating of ‘AAA(kaz)’ to the Fund’s 23 senior unsecured domestic bond issues with total value of KZT1,090bn………………………………………..Full Article: Source

Khazanah issues $482 mln Islamic bond exchangeable to IHH shares

Posted on 18 October 2013 by VRS  |  Email |Print

Malaysian state investor Khazanah Nasional Bhd said on Friday it has issued S$600 million ($482.14 million) in Singapore dollar-denominated Islamic bonds, or sukuk, that can be exchanged for shares in IHH Healthcare Bhd.
The issuance, which can be exchanged into IHH shares at a premium of 10 to 17 percent over the reference share price of 4.19 ringgit ($1.33), as Khazanah diversifies on its fund-raising strategy………………………………………..Full Article: Source

NZ Super Fund reports record return

Posted on 18 October 2013 by VRS  |  Email |Print

The New Zealand Superannuation fund had a record 2013 financial year, returning nearly 26%, or $4 billion. Over the 10 years it’s existed the Fund has built up to now be worth $23 billion.
It follows a contrarian investment strategy, whereby it invests in an asset which it believes is well below fair value, but with a long-term view to see that value materialise. Superannuation Fund chief executive Adrian Orr says it’s that investment strategy that has really worked for it………………………………………..Full Article: Source

China’s investment in UK: Osborne pushes the nuclear button

Posted on 18 October 2013 by VRS  |  Email |Print

The announcement that Chinese companies can take a stake in British nuclear plants was hardly a surprise: George Osborne had already told reporters that the UK welcomed Chinese investment in all its infrastructure – citing the sovereign wealth fund CIC’s existing investment in Thames Water and Heathrow.
China has massively increased investment in Europe in recent years. One study this spring, by private equity firm A Capital, found that Chinese state-owned companies invested more than $12.6bn (£7.8bn) in the continent last year: a year-on-year increase of about 20%. Cash-strapped European countries have proved relatively welcoming………………………………………..Full Article: Source

Fitch rates Kazakhstan sovereign wealth fund Samruk-Kazyna ‘BBB+’

Posted on 18 October 2013 by VRS  |  Email |Print

A global rating agency Fitch Ratings has assigned Kazakhstan’s Joint Stock Company Sovereign Wealth Fund Samruk-Kazyna a Long-Term foreign currency rating of ‘BBB+’, Long-Term local currency rating of ‘A-’, National Long-Term rating of ‘AAA(kaz)’ and Short-term foreign currency rating of ‘F2′. The Outlooks on the Long-Term ratings are Stable, agency reported on Thursday.
Fitch has also assigned a Long-Term local currency rating of ‘A-’ and a National Long-Term Rating of ‘AAA(kaz)’ to the Fund’s 23 senior unsecured domestic bond issues with total value of KZT1,090bn………………………………………..Full Article:

Norway cuts ties with two Malaysian forestry companies

Posted on 18 October 2013 by VRS  |  Email |Print

Norway has blacklisted two Malaysian timber companies after an investigation brought to light the environmental havoc they have wreaked on Borneo’s tropical forests. On Saturday, the Norwegian Government Pension Fund Global (GPFG) — the world’s largest sovereign wealth fund — announced it has sold stakes in WTK Holdings Berhad and Ta Ann Holdings Berhad, Malaysian companies with extensive logging operations and timber plantations.
The decision is based on recommendations from the fund’s Council on Ethics, which conducted an investigation that found “unacceptable risk” of large-scale forest destruction, non-compliance with environmental laws, and poor forest management practices………………………………………..Full Article: Source

Gavin McCrone: Is an oil fund still feasible?

Posted on 18 October 2013 by VRS  |  Email |Print

According to John Swinney, the answer is Yes – and an independent Scotland will have one in 2017. But the right time for it may well have passed, says Gavin McCrone.
In her article in this newspaper on Monday, Lesley Riddoch referred to “the McCrone Oil Report cover-up of the 1970s” and in the summer Rory Bremer, in his special programme about Scottish politics, referred to the “suppression of the McCrone Report”. I’ve begun to think it’s time I explained myself………………………………………..Full Article: Source

Trinidad and Tobago’s government contributions to sovereign wealth fund plummet

Posted on 18 October 2013 by VRS  |  Email |Print

Although average crude oil prices in 2012 were at “historically high levels,” for the second time in its history, government contributions to the Heritage and Stabilisation Fund, T&T’s sovereign wealth fund, have plummeted. Contributions to the Heritage and Stabilisation Fund have been falling steadily, since it recovered from a US$0 contribution in 2009. It fell from US$477.3 million in 2010, to US$451 million in 2011, to US$207 million in 2012, and now to US$42 million in 2013.
Opening the budget debate in the Senate on September 20, two days after it was approved in the Lower House, Minister of Finance and the Economy Larry Howai confirmed the second lowest contribution in the fund’s history when he said: “The net asset value of the Heritage and Stabilisation Fund stood at approximately US$5 billion at the end of fiscal 2013 [Desk thumping] while transfers to the fund over the period amounted to US$42 million.”……………………………………….Full Article: Source

Norway state oil fund may contemplate selling stake in Hungary’s MOL

Posted on 17 October 2013 by VRS  |  Email |Print

Norway’s state oil fund may consider selling its cc. 1.6% stake in Hungarian oil and gas group MOL, as its Code of Ethics does not allow it to invest in companies under suspicion of corruption, Hungarian business daily Napi Gazdaság reported on Wednesday.
Shareholders are not exactly happy about the news and the share price sunk by 6% in the morning, although it has recouped some of its losses later in the day. MOL’s spokesman said the report was baseless and the company had no information that the Norwegian shareholder would contemplate a possible sale of its MOL stake………………………………………..Full Article: Source

MOL’s shares fall on press speculation about Norway fund

Posted on 17 October 2013 by VRS  |  Email |Print

Shares in MOL fell sharply on Wednesday partly in response to a local press report which suggested that Norway’s $790 billion sovereign wealth fund might consider selling its holding in the Hungarian energy company.
Hungarian business daily Napi Gazdasag, citing the ethics rules of Norway’s $790 billion wealth fund, said that based on those rules, the fund might consider selling its MOL shares, without giving any sources………………………………………..Full Article: Source

Norway’s sovereign wealth fund gives a boost to global renewable energy

Posted on 17 October 2013 by VRS  |  Email |Print

The Norwegian sovereign wealth fund is the largest in the world at around $750 billion, and a new government is currently being formed in Oslo that is considering investing some of the wealth in renewable energy projects across the world.
Formed in 1990, the fund generates money from taxes on Norway’s oil and gas industry, as well as owning several fields in the North Sea, and a 67% stake in Statoil. It also owns large shares in many of Europe’s largest companies, and it has been calculated that one in every $80 invested in equities around the world is owned by Norway, giving the fund massive influence over the global financial market………………………………………..Full Article: Source

KIC lags far behind nat’l pension fund in returns: data

Posted on 17 October 2013 by VRS  |  Email |Print

Korea Investment Corp. (KIC), South Korea’s sovereign wealth fund, has made far less profits this year from overseas stock and bond investment than those reaped by the national pension fund, data showed Thursday, raising doubts on its asset management capability.
The sovereign wealth fund, which manages 67 trillion won (US$62.7 billion) of taxpayer money, posted a return ratio of 2.47 percent from its offshore stock and bond investment for the first seven months of this year, according to KIC document submitted to parliament………………………………………..Full Article: Source

South Korea sovereign fund ups alts. investments

Posted on 17 October 2013 by VRS  |  Email |Print

South Korea’s sovereign wealth fund has poured some US$3 billion into alternative investments this year. The investments bring the Korea Investment Corp.’s alternatives holdings to roughly 10% of its $65 billion portfolio, chief investment officer Dong-Ik Lee told Pensions & Investments. KIC has set a 20% alternatives target, which Lee said it expected to reach over the next few years.
Hedge funds have won the biggest share of KIC’s alternatives allocation, with 39%. Private equity accounts for 31% and real-estate for 26%. Lee said eventually the numbers would skew more towards p.e………………………………………..Full Article: Source

English marks NZ Super Fund’s 10th anniversary

Posted on 17 October 2013 by VRS  |  Email |Print

Finance Minister Bill English congratulated the New Zealand Superannuation Fund on achieving its tenth anniversary, and having built a world-class sovereign wealth fund in that time.
The New Zealand Superannuation Fund, which invests to assist in meeting some of the long-term cost of New Zealand Superannuation, started in 2003 with $2.5 billion in cash. Since then it has returned an average of 8.84 per cent per annum and the fund now stands at $23 billion………………………………………..Full Article: Source

$23 bln in NZ Super Fund

Posted on 17 October 2013 by VRS  |  Email |Print

The Superannuation Fund, which has just turned 10 years old, has $23 billion in it. Finance Minister Bill English says New Zealand has built a world-class sovereign wealth fund in just a decade.
It was started by Labour finance minister Michael Cullen in 2003 to help meet the long-term cost of national superannuation. Dr Cullen put $2.5 billion in it to start it up………………………………………..Full Article: Source

Energy input in Heritage Fund decreases

Posted on 17 October 2013 by VRS  |  Email |Print

Contributions to the Heritage and Stabilisation Fund (HSF), Trinidad and Tobago’s US$5 billion sovereign wealth fund, have plummeted over the past three years, according to reports issued by the fund. Contributions to the fund have been falling steadily, from US$451 million in 2011, to US$207 million last year, then to the current figure of US$42 million.
Ministry of Finance officials, Minister of Energy and Energy Affairs Kevin Ramnarine and officials of the Central Bank of T&T were asked why. Ministry of Finance and Central Bank officials pointed to declining oil revenue, while Ramnarine pointed to the Ministry of Finance and the Economy for an answer………………………………………..Full Article: Source

Mubadala, Trafigura win control of Batista port in $996-mln deal

Posted on 17 October 2013 by VRS  |  Email |Print

Brazilian businessman Eike Batista ceded control of an iron ore port to Dutch energy firm Trafigura Beheer BV and an Abu Dhabi sovereign wealth fund in a $996-million (U.S.) deal that takes debt off his hands and secures new investment for the port.
The former billionaire’s latest effort to stave off the collapse of his once high-flying Grupo EBX conglomerate follows the sale of other key assets and comes amid talks with creditors of OGX Petróleo e Gas Participações SA. The oil producer missed a $44.5-million bond interest payment this month and, analysts say, risks going bankrupt within weeks………………………………………..Full Article: Source

Why a U.S. default could be great for sovereign wealth funds

Posted on 17 October 2013 by VRS  |  Email |Print

Before getting pied by critics, let us consider the possible benefits of a technical default by the U.S. Treasury for institutional investors. As the U.S. Congress reaches the 11th hour on a budget deal, and investors sit idly by waiting for a decision, television pundits and economists in the United States are voicing concerns ranging from the fall of the U.S. dollar’s exclusive global reserve currency status to a full out economic Armageddon.
At the publishing of this article, Congress in a last minute effort approved the debt ceiling, but these concerns will certainly be revisited again………………………………………..Full Article: Source

Norway orders review of $790 bln wealth fund

Posted on 16 October 2013 by VRS  |  Email |Print

Norway has ordered a review of its $790 billion wealth fund, one of the world’s biggest investors whose largesse helps underpin Norway’s generous social benefits, responding to concerns that the fund is unwieldy and its returns too low.
The government also in a regular review of the fund’s investment ethics ordered it to sell stakes in several companies due to ethical issues and expressed concern over investments in oil companies Royal Dutch Shell and Eni. But it stopped short of saying the latter stakes should be sold………………………………………..Full Article: Source

Norway wealth fund joins Axa for European property lending

Posted on 16 October 2013 by VRS  |  Email |Print

The manager of Norway’s sovereign-wealth fund, the world’s largest, formed a venture with Axa Real Estate Investment Managers to provide European commercial real estate debt as borrowers rush to refinance maturing loans.
Norges Bank Investment Management and Axa Real Estate, a unit of Europe’s second-largest insurer, will supply individual senior loans as large as 600 million euros ($814 million) mainly in the U.K., France and Germany, Axa Real Estate said……………………………………….Full Article: Source

Norway bars five firms from its wealth fund

Posted on 16 October 2013 by VRS  |  Email |Print

Norway excluded five companies from the investments of the nation’s sovereign wealth fund, the world’s largest, for taking part in activities that damage the environment or for being linked to child labour.
Malaysia’s WTK Holdings Bhd and Ta Ann Holdings Bhd were excluded alongside China’s Zijin Mining Group and Peru’s Volcan Cia Minera SAA on the basis that their activities risk causing severe damage to the environment, the Oslo-based ministry said on Monday. India’s Zuari Agro Chemicals Ltd was also excluded “based on an assessment of the risk of contributing to the worst forms of child labour”, it added………………………………………..Full Article: Source

Government to “strategically invest” EUR6.4 bln NPRF pot

Posted on 16 October 2013 by VRS  |  Email |Print

Some of the remaining money in Ireland’s National Pension Reserve Fund (NPRF) is to be used to invest in capital projects. The Minister for Public Expenditure and Reform Brendan Howlin told the Dáil during his Budget speech that the Government will transform the NPRF into the Ireland Strategic Investment Fund.
Howlin said that this fund would “invest on a commercial basis in projects in Ireland that support economic activity and employment”………………………………………..Full Article: Source

Mubadala, Trafigura win control of Batista port in $996 mln deal

Posted on 16 October 2013 by VRS  |  Email |Print

Brazilian businessman Eike Batista ceded control of an iron ore port to Dutch energy firm Trafigura Beheer BV and an Abu Dhabi sovereign wealth fund in a $996 million deal that takes debt off his hands and secures new investment for the port.
The former billionaire’s latest effort to stave off the collapse of his once high-flying Grupo EBX conglomerate follows the sale of other key assets and comes amid talks with creditors of OGX Petróleo e Gas Participações SA. The oil producer missed a $44.5 million bond interest payment this month and, analysts say, risks going bankrupt within weeks………………………………………..Full Article: Source

China said to study investing more reserves in European property

Posted on 16 October 2013 by VRS  |  Email |Print

China’s agency that manages the nation’s $3.66 trillion of foreign-exchange reserves is looking to make more investments in European property, two people familiar with the situation said.
The State Administration of Foreign Exchange, seeking to diversify the nation’s investments, is looking at real estate and infrastructure projects with a focus on the U.K., France, Germany, Poland and the Czech Republic, said the people, who asked not to be identified as they weren’t authorized to speak publicly about the matter. Valuations for such projects are currently at an attractive level, they said………………………………………..Full Article: Source

CIC, RRJ invest in China-focused water treatment firm SIIC Environment

Posted on 16 October 2013 by VRS  |  Email |Print

China-focused water treatment company SIIC Environment Holdings Ltd is raising S$260.2 million ($208.7 million) by selling new shares to investors including Chinese sovereign wealth fund CIC and private equity firm RRJ Capital.
Singapore-listed water companies have been attracting big-name investors as they profit from exporting their expertise to China, which plans to spend $850 billion over the next decade to improve its scarce and polluted water supplies………………………………………..Full Article: Source

London Business School signs deal with China’s sovereign wealth fund

Posted on 16 October 2013 by VRS  |  Email |Print

One of the world’s largest sovereign wealth funds, China’s State Administration of Foreign Exchange (SAFE), has signed a landmark agreement with London Business School, to deliver world class education programmes to its employees.
The Memorandum of Understanding is the first that London Business School has signed with an organisation in China and arguably the most important anywhere in the world. It is designed primarily to offer SAFE’s employees access to London Business School’s Masters in Finance (MiF) programme, which is ranked number one in the world. Other relevant programmes such as the School’s number one ranked full-time MBA programme are also included as part of the agreement. (Press Release)

October 2013
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