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Sovereign Wealth Funds Briefing - Archive | December, 2013

Norway’s oil fund faces key strategy decisions

Posted on 30 December 2013 by VRS  |  Email |Print

Norway’s $815bn oil fund faces a crucial year with several big decisions expected on its strategy as a debate rages over whether the world’s largest sovereign wealth fund has become too big.
The oil fund will provide its new strategy for the next three years in the coming weeks. Then the new centre-right government in Norway will have its first chance to put its own stamp on the fund’s operation while the finance ministry will decide whether the fund should manage its money in a more active manner………………………………………..Full Article: Source

Norway’s wealth fund to buy property stake from Prologis

Posted on 30 December 2013 by VRS  |  Email |Print

Norway’s $812-billion sovereign wealth fund, the world’s largest, has agreed to buy a 45-percent stake in a portfolio of U.S. warehouses valued at $1 billion from U.S.-based Prologis as the fund builds up its still-small property assets.
The fund will pay $450 million for the stake, leaving Prologis with 55 percent to manage the assets. The deal involves forming a joint-venture between the two organizations, the second between the two. Last year the fund agreed to buy from Prologis a 50-percent stake in a portfolio of European warehouses for 1.2 billion euros………………………………………..Full Article: Source

Will Norway dedicate its sovereign wealth fund to renewables?

Posted on 30 December 2013 by VRS  |  Email |Print

Norway’s new Prime Minister, Erna Solberg of the Conservative Party, who entered into office on 16 October, may at first instance appear less occupied by global issues like climate change than her predecessor Jens Stoltenberg of the Labour party.
But on a few critical climate issues she looks like more of a reformer than Mr Stoltenberg, in particular when it comes to what role Norway’s enormous Sovereign Wealth Fund could play in financing the transition to a low-carbon economy………………………………………..Full Article: Source

DC’s still waiting with open arms for Norges

Posted on 30 December 2013 by VRS  |  Email |Print

One of the first commercial real estate investments Norges Bank Investment Management made in the US, one year ago, was in the Washington DC area. Since then the sovereign wealth fund has been snapping up properties around the country and per its new agreement with Prologis, will clearly continue.
The question for the local CRE community is when will the love return for DC? On one hand the Prologis JV holds out hope. As we reported yesterday, Prologis and Norges signed a $1 billion agreement to extend its European partnership into the US. The venture will acquire a $1 billion stabilized portfolio of 66 logistics facilities totaling approximately 12.8 million square feet across the U.S. ……………………………………….Full Article: Source

Kazkommertsbank, businessman may get control of Kazakh BTA Bank

Posted on 30 December 2013 by VRS  |  Email |Print

Kazkommertsbank and Kazakh businessman Kenes Rakishev may buy equal stakes in BTA Bank, acquiring control over Kazakhstan’s third-largest lender, Kazakh sovereign wealth fund Samruk-Kazyna said on Monday.
Samruk-Kazyna will retain a minority stake in BTA Bank, the fund said after reaching what it called a preliminary and non-binding deal with the investors………………………………………..Full Article: Source

KazMunaiGas to invest $4.5 bln into geological exploration in 2014-2019

Posted on 30 December 2013 by VRS  |  Email |Print

KazMunaiGas National Oil and Gas Company plans to invest a total of $4.5 billion into geological exploration in 2014-2019, Tengrinews.kz reports, citing Samruk-Kazyna Sovereign Wealth Fund Managing Director Malik Salimgiriyev.
According to the Company’s Strategy, by 2022 the Company’s proven recoverable reserves of oil and condensed gas should make up 1.413 billion tons as compared to 789.6 million tons as of the end of 2013. To this end, in the following 5 years a total of about $4.5 billion will be invested into geological exploration both on land and in offshore zones, Mr. Salimgiriyev said………………………………………..Full Article: Source

GIC buys 50pct of Broadgate from Blackstone in British Land tie-up

Posted on 30 December 2013 by VRS  |  Email |Print

GIC Pte bought Blackstone Group LP’s 50 percent stake in London’s Broadgate office complex in the latest overseas acquisition for the Singapore sovereign wealth fund as it seeks stable returns from real estate.
GIC purchased the cluster of 17 office buildings, shops and restaurants, which spans 4.7 million square feet in the City of London’s financial district, according to a statement by GIC and Blackstone today. New York-based Blackstone agreed to sell the stake for more than 1.7 billion pounds ($2.8 billion), Bloomberg News reported on Aug. 20………………………………………..Full Article: Source

British Land partners with Singapore sovereign wealth fund for Broadgate

Posted on 30 December 2013 by VRS  |  Email |Print

Property development and investment firm British Land Company PLC Tuesday said it has entered a joint venture with GIC - Singapore’s sovereign wealth fund - for a top office complex in the City of London.
The joint venture follows GIC’s recent agreement to acquire a 50% stake in Broadgate, built around Liverpool Street Station. The stake had been previously owned by Blackstone Real Estate Partners Europe III and Blackstone Real Estate Partners VI………………………………………..Full Article: Source

Qatar fund in talks to invest $200 mln Indian property

Posted on 30 December 2013 by VRS  |  Email |Print

Qatar Investment Authority (QIA), the sovereign wealth fund of the gas-rich Gulf emirate, is in talks to invest $200 million in residential property in India, a source with direct knowledge of the matter told Reuters.
QIA is holding “conversations” with Kotak Realty Fund, run by Kotak Mahindra Bank, which would manage the investments on behalf of the fund, said the source, who asked not to be named because the deal has not been finalised. Kotak would also make a small investment and plans to focus on residential property developments in major cities across Asia’s third-largest economy for QIA, the source said………………………………………..Full Article: Source

Global mining companies look for Qatari fund

Posted on 30 December 2013 by VRS  |  Email |Print

Global mining companies which are projected to face challenging market conditions in 2014, are looking for GCC Sovereign Wealth Fund, including from Qatar. Deolitte, leading consulting and financial advisory firm that tracked top mining trends for 2014, said the Middle East is a significant source of potential wealth for the mining companies.
“Although these investors have not yet committed, funding from countries like Qatar, Abu Dhabi and Saudi Arabia may not be far off,” Deloitte’s “Tracking the Trends 2014” report said………………………………………..Full Article: Source

Sovereign wealth funds shun Indian tax-free bonds

Posted on 30 December 2013 by VRS  |  Email |Print

A volatile rupee, the lack of any specific tax advantage and unattractive interest rates have ensured that not even one issue has been subscribed by these wealth funds. Sovereign wealth funds have shunned tax-free bonds issued by state-run Indian companies and financial institutions despite the government’s attempts to woo these foreign funds in the numerous overseas road shows by finance minister P. Chidambaram.
A volatile rupee, the lack of any specific tax advantage and unattractive interest rates have ensured that not even one issue has been subscribed by these wealth funds, according to officials from these financial institutions and merchant bankers………………………………………..Full Article: Source

Super Fund in $494mln UK mall purchase

Posted on 30 December 2013 by VRS  |  Email |Print

Superannuation giant AustralianSuper has spent $494 million to acquire a half stake in London’s The Centre: MK Mall, blazing the trail for homegrown superannuation funds to invest in offshore property.
In its first direct property investment, the $65 billion fund acquired 50 per cent of the 400,000sq m centre with Hermes Real Estate Investment Management, which acted on behalf of the BT Pension Scheme. AustralianSuper’s head of property Jack McGougan said the asset had huge growth potential………………………………………..Full Article: Source

Nigeria: House raises questions about SWF

Posted on 30 December 2013 by VRS  |  Email |Print

Barely two hours after she laid the 2014 budget proposals to the National Assembly, queries about the propriety of the Sovereign Wealth Fund (SWF), were on Thursday thrown at the Coordinating Minister of the Economy (CME), Dr Ngozi Okonjo-Iweala by the chairman of the House committee on finance, Dr Abdulmumini Jibrin.
The queries about the SWF were part of 50 questions the committee chairman had prepared for the minister. Titled: “State of the Economy”, part of the preamble to the committee’s questions by Jibrin was: “you will recall that the Committee on Finance had invited you to appear and make a comprehensive presentation on the state of the economy.”……………………………………….Full Article: Source

The promise and perils of sovereign wealth funds

Posted on 20 December 2013 by VRS  |  Email |Print

Although sovereign wealth funds (SWFs) have been around for decades, it was not until the subprime mortgage crisis of 2007 that they truly garnered recognition as major players in the investment market. When they did, they were hailed as saviors for injecting billions of dollars into struggling US companies.
With foreign direct investment into the US shrinking, SWFs provide an attractive alternative source of capital. And they are growing. Global SWF assets increased 16% last year, and are currently valued at more than US$6 trillion; roughly equivalent to Japan’s GDP………………………………………..Full Article: Source

Chinese fund had losses in Canada

Posted on 20 December 2013 by VRS  |  Email |Print

The head of China Investment Corp.’s Toronto office is stepping down as the Chinese sovereign wealth fund broadens its North American investments after suffering losses in Canada, sources say.
Felix Chee, who was appointed in January 2011 as chief representative for CIC’s first international office, will leave when his term ends this month, say the sources, who asked not to be identified as they weren’t authorized to speak about the plans. Chee didn’t return calls to his Toronto office and emails seeking comment………………………………………..Full Article: Source

1MDB mulls RM1.5bln Islamic bond issue

Posted on 20 December 2013 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB), the country’s sovereign wealth fund, is considering selling RM1.5 billion sukuk, according to two people with knowledge of the plan. The proceeds will be used to finance the relocation of an air force base in Sungai Besi, here, they said.
1MDB agreed to take over the redevelopment of the site from the government in June 2011 on condition it would pay to build a new military air base in Negri Sembilan, according to a June statement………………………………………..Full Article: Source

Superannuation fund members enjoy double-digit growth in 2013

Posted on 20 December 2013 by VRS  |  Email |Print

Super funds members can enjoy double-digit growth this year despite predictions of poor performance in December. Strong growth in international shares helped boost nest eggs in November and resulted in median growth funds (61 to 80 per cent growth assets) increasing by 0.8 per cent.
Research firm SuperRatings found the returns in December were shaped to be the worst in 2013 after Australian and international share markets both dropped (-4.1 per cent and -2.0 per cent respectively)………………………………………..Full Article: Source

Norway’s wealth fund and MetLife form JV

Posted on 20 December 2013 by VRS  |  Email |Print

Norges Bank Investment Management, the manager of Norway’s $800 billion sovereign wealth fund, and MetLife have formed a joint venture to invest in Class A office properties in key U.S. office markets. It is the third such venture formed by NBIM in the past year as the wealth fund looks to boost its real property holdings.
The joint venture’s initial investment is in One Financial Center in Boston. NBIM has acquired a 47.5 percent share of the asset from Beacon Capital. Concurrently, MetLife increased its ownership share in the property to 52.5 percent………………………………………..Full Article: Source

Putin bets $15 bln to capture junk-rated Ukraine Vassal

Posted on 20 December 2013 by VRS  |  Email |Print

Vladimir Putin got what he wanted by anchoring Ukraine to Russia and pushing the European Union back from his borders. The cost is yet to be tallied. The Russian leader is lending $15 billion to a junk-rated borrower and offering a 33 percent gas-price cut on a gamble that Ukraine will become a permanent ally and President Viktor Yanukovych will hold off a surging protest movement in the 2015 election.
The prize is a crucial step in his crusade to halt what he sees as the West’s relentless encroachment on Russian interests since the end of the Cold War………………………………………..Full Article: Source

CalPERS hedge fund chief to join Future Fund

Posted on 20 December 2013 by VRS  |  Email |Print

The United States’ largest public pension fund will be losing its head of hedge funds to Australia’s sovereign wealth vehicle. Craig Dandurand is wrapping up his final week as portfolio manager of absolute return assets after 13 years at the California Public Employees’ Retirement System (CalPERS) in Sacramento.
In the New Year, Dandurand and his family will relocate to Melbourne, Australia, where he will take up the role of director of debt and alternatives at the Future Fund.“We’re excited to have Craig join the team and think his experience will be an asset to our efforts,” Will Hetheron, the fund’s head of public affairs, said………………………………………..Full Article: Source

Former treasurer Peter Costello to head Future Fund

Posted on 19 December 2013 by VRS  |  Email |Print

The Abbott government is likely to appoint Peter Costello as the permanent chairman of the Future Fund early in the new year. Costello, who was Australia’s longest serving treasurer and established the $90 billion sovereign wealth fund in 2006, was appointed acting chairman of the fund on Wednesday following the departure of David Gonski. The position was described as temporary, but it is understood that is not the intention.
Treasurer Joe Hockey and Finance Minister Mathias Cormann appointed Mr Costello for a “period of three months or until a permanent chairman is appointed”………………………………………..Full Article: Source

Fund can help us, says Peter Costello

Posted on 19 December 2013 by VRS  |  Email |Print

Peter Costello has claimed a broader role for the $92 billion Future Fund he established as treasurer in the last years of the Howard government, declaring it a sovereign wealth fund to help the nation through “difficult days”.
But Mr Costello, appointed the fund’s acting chairman following the resignation of businessman David Gonski to become ANZ chairman, said the fund should only pursue investments that deliver a return, playing down suggestions it could be used for nation-building projects………………………………………..Full Article: Source

NZ Super Fund continues to grow - value lifts to $25bln

Posted on 19 December 2013 by VRS  |  Email |Print

The New Zealand Superannuation Fund returned 27.76% on its investments in the last 12 months to lift its value to nearly $25 billion at the end of November. Since inception in 2003, the fund has returned 9.55% a year and in November returned 1.66%.
The fund, set up by former finance minister Sir Michael Cullen and also know as the ”Cullen fund”, was established to pre-fund New Zealand’s superannuation requirements………………………………………..Full Article: Source

Malaysia 1MDB said to weigh 1.5 bln ringgit Islamic bond

Posted on 19 December 2013 by VRS  |  Email |Print

1Malaysia Development Bhd., the sovereign wealth fund whose debt tripled in two years, is considering selling 1.5 billion ringgit ($461 million) of sukuk, according to two people with knowledge of the plan.
The proceeds will be used to finance the relocation of an air-force base in Sungai Besi in Kuala Lumpur, said the people who asked not to be named because the information is private. 1MDB agreed to take over the redevelopment of the site from the government in June 2011 on condition it would pay to build a new military air base in the state of Negri Sembilan, located south of the capital, according to a June statement………………………………………..Full Article: Source

GIC sells Beijing airport stake for S$382 mln

Posted on 19 December 2013 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC has sold a stake in the operator of China’s biggest airport for HK$2.36 billion (S$382 million) to NWS Holdings, controlled by Hong Kong billionaire Cheng Yu-tung, the Bloomberg news agency reported.
NWS will buy 383 million shares, or about 8.8 per cent, of Beijing Capital International Airport at HK$6.15 apiece, the report said, citing a Hong Kong stock exchange filing………………………………………..Full Article: Source

CIC weighs gearing up investments in the U.S.

Posted on 19 December 2013 by VRS  |  Email |Print

China’s giant sovereign-wealth fund is considering moving its North American base to New York from Toronto, according to people with direct knowledge of the matter, in a potential shift that reflects growing interest at the fund in a recovering U.S. economy and doubts over its faltering investments in the Canadian energy and resources sector.
A move to New York would mark a change in strategy by China Investment Corp., which has $580 billion in assets under management. Although CIC has bought U.S. assets, it has stayed out of the U.S. partly to avoid criticism sometimes directed at China’s authoritarian government………………………………………..Full Article: Source

China Investment’s Chee to step down from Toronto office

Posted on 19 December 2013 by VRS  |  Email |Print

The head of China Investment Corp.’s Toronto office is stepping down as the Chinese sovereign wealth fund broadens its North American investments after suffering losses in Canada, said two people with knowledge of the matter.
Felix Chee, who was appointed in January 2011 as chief representative for CIC’s first international office, will leave when his term ends this month, according to the people, who asked not to be identified as they weren’t authorized to speak publicly about the plans. Chee didn’t return calls to his Toronto office and emails seeking comment………………………………………..Full Article: Source

CIC to stay in Toronto despite investment losses, sources say

Posted on 19 December 2013 by VRS  |  Email |Print

China Investment Corp. has no plans to close its Toronto office, people close to the fund said, despite reports the giant investment fund is considering moving its North American headquarters to New York.
The $580-billion (U.S.) sovereign wealth fund opened the office in the city in 2011, its first on the continent.
At the time, the decision was touted as a coup for the financial community; Manulife Financial Corp. chief executive officer Don Guloien called it “a great tribute to the investment possibilities that CIC sees in Canada.”……………………………………….Full Article: Source

Volcker snags China sovereign wealth fund

Posted on 19 December 2013 by VRS  |  Email |Print

It looks like the Volcker Rule will force one of the world’s biggest investors in hedge funds, China Investment Corp., to exit many of its fund stakes. The sovereign wealth fund, which ranks second on Hedge Fund Alert’s roster of the largest fund investors, is a U.S. bank holding company by virtue of controlling stakes in large Chinese banks with operations in the States.
That means it is subject to Volcker Rule provisions barring banks from investing in hedge funds and private equity vehicles run by unaffiliated managers. Unless it restructures its bank holdings, or takes advantage of narrow exemptions in the final version of the rule regulators adopted last week, CIC would have to liquidate its stake in any fund managed by a U.S. firm, as well as vehicles run by non-U.S. managers with backers in the States………………………………………..Full Article: Source

CIC may move North American headquarters to New York from Toronto

Posted on 18 December 2013 by VRS  |  Email |Print

China’s giant sovereign-wealth fund is considering moving its North American base to New York from Toronto, according to people with direct knowledge of the matter, in a potential shift that reflects growing interest at the fund in a recovering U.S. economy and doubts over its faltering investments in the Canadian energy and resources sector.
A move to New York would mark a change in strategy by China Investment Corp., which has $580 billion in assets under management. Although CIC has bought U.S. assets, it has stayed out of the U.S. partly to avoid criticism sometimes directed at China’s authoritarian government………………………………………..Full Article: Source

KIC chief to reform sovereign wealth fund

Posted on 18 December 2013 by VRS  |  Email |Print

The new CEO of the state-run Korea Investment Corp. (KIC) said he will carry out reformative measures so that the state entity will be more faithful to its original mission as the manager of sovereign funds.
“The first task is to raise investment returns, which is now around 3.5 percent,” CEO Ahn Hong-chul said in a phone interview with The Korea Times. “It is not low, but it is not high either. I will make KIC one of the best sovereign funds in the world.”……………………………………….Full Article: Source

NWS to purchase Beijing Airport stake from GIC for $304 mln

Posted on 18 December 2013 by VRS  |  Email |Print

NWS Holdings Ltd. agreed to buy an 8.8 percent stake in Beijing Capital International Airport Co. from GIC Pte, the Singapore sovereign wealth fund, for about HK$2.36 billion ($304 million).
The purchase of 383 million shares at HK$6.15 a share will give the services and transportation unit of Hong Kong’s New World Development Co. a holding of 20.4 percent of the airport operator’s Hong Kong-listed H shares, according to a Hong Kong stock exchange filing………………………………………..Full Article: Source

ANZ Bank names Australia sovereign fund head Gonski as chairman

Posted on 18 December 2013 by VRS  |  Email |Print

Australia & New Zealand Banking Group Ltd. (ANZ) named David Gonski, the head of the country’s sovereign wealth fund, as its chairman to succeed John Morschel.
Gonski, 60, will take over in May after stepping down as chairman of Australia’s Future Fund in January, he said in a statement. He took up the role in April 2012 and his term was due to expire in April 2017, according to the fund’s latest annual report………………………………………..Full Article: Source

David Gonski steps down as Future Fund chair for ANZ

Posted on 18 December 2013 by VRS  |  Email |Print

David Gonski has stepped down as chairman of the Future Fund to become chairman of ANZ Banking Group, with the government expected to announce a successor shortly. Mr Gonski will join the ANZ Board in February, succeeding John Morschel as chairman in May 2014.
Mr Gonski said in a statement that he would step down as chairman of the Guardians of the Future Fund during January 2014 “to avoid any possible conflict of interest with my new position and allowing sufficient time for a smooth transition and handover to my successor”………………………………………..Full Article: Source

Ukraine scores $15 bln from Russia, 33% gas discount

Posted on 18 December 2013 by VRS  |  Email |Print

After stringing along Russia, the EU and the Ukrainian people, President Viktor Yanukovich has inked an agreement worth $15 billion in securities and from January 1, can start buying Russian gas for $268 instead of $400 per 1,000 cubic meters. The Russian government will essentially buy $15 billion in Ukrainian debt by investing in Ukrainian securities using money from Russia’s Welfare Fund, President Vladimir Putin announced Tuesday at a meeting with Yanukovich in Moscow.
“For the purpose of supporting the Ukrainian budget the Russian government has made a decision to invest part of the National Welfare Fund, to the tune of $15 billion, in Ukrainian government securities,” Putin said. Russia will invest roughly 17 percent of its $88 billion National Welfare Fund, which, together with Russia’s Sovereign Wealth Fund is used as a sort of buffer for the country’s oil-dependent budget………………………………………..Full Article: Source

Russia plans to use other sources along with National Welfare Fund to buy Ukraine’s Eurobonds

Posted on 18 December 2013 by VRS  |  Email |Print

The Russian Finance Ministry plans to use other sources along with the National Welfare Fund to buy Ukraine’s Eurobonds in 2014, Russian Finance Minister Anton Siluanov told reporters on Tuesday.
“This can be not only the resources from the National Welfare Fund. We will consider other resources, proceeding from the variability of our resources in the next year,” he said, noting that the sum of 15 billion dollars will be confirmed within 18 months and the resources from the welfare fund will make a larger part of it……………………………………….Full Article: Source

Permanent Fund Dividend: Benefits of Alaskan life

Posted on 18 December 2013 by VRS  |  Email |Print

The Permanent Fund Dividend (PFD), or Alaska Dividend, is a unique yearly dividend for Alaska residents. In 1959, Alaska’s largest oil reserve was discovered and it became clear as the pipeline was constructed that Alaska would accrue a great deal of wealth from its oil reserves. So in 1976, Alaska amended its constitution to dedicate approximately 25 percent of its yearly oil revenues to a state investment fund.
It is called the Alaska Permanent Fund. The purpose of the fund is to ensure future generations of Alaskans will be able to benefit from Alaska’s natural resources, even when those resources have been depleted……………………………………….Full Article: Source

Azeri oil fund to lift investments in equities, Asian property

Posted on 17 December 2013 by VRS  |  Email |Print

Azerbaijan’s state oil fund plans to double the proportion of equities in its investment portfolio and buy real estate in Asia next year, the fund’s executive director told Reuters, as it further diversifies its assets.
The $34 billion fund of increasingly wealthy Azerbaijan holds proceeds from oil contracts, oil and gas sales, transit fees and other revenues, and uses investment proceeds to help pay for social spending and infrastructure projects………………………………………..Full Article: Source

Fondo Strategico Italiano takes stake in Valvitalia

Posted on 17 December 2013 by VRS  |  Email |Print

The Italian Strategic Fund (FSI) has acquired 151 (not 191) million euro, 49.5% of the capital of Valvitalia, a company that operates in the production and supply of equipment and components intended for ‘oil industry.
The contract was signed yesterday, 15th December, while the transaction is expected in January 2014. This was announced by the President of the Fund, Giovanni Gorno Tempini, and the CEO Maurizio Tamagnini during a press conference. Majority shareholder remains the Ruggeri family………………………………………..Full Article: Source

Singapore’s sovereign wealth fund GIC subscribes to Green Dragon Gas bond

Posted on 17 December 2013 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has fully subscribed to the first tranche of US$35 million of the Green Dragon Gas (GDG) convertible bond issue. GDG is an independent companies involved in the production and sale of CBM gas in China.
The bond is unsecured with a 7 per cent coupon, and is due in Dec 2015, convertible into ordinary shares at a conversion price of US$6.06 per share. Green Dragon Gas plans to use the net proceeds to launch next year’s drilling plan, and for working capital………………………………………..Full Article: Source

China sovereign fund Huijin completes purchase of bank shares

Posted on 17 December 2013 by VRS  |  Email |Print

China’s government has completed its purchase of shares in the country’s four biggest banks, marking the end of the latest round of interventions aimed to support its chronically weak stock market.
Central Huijin Investment Co, which holds Beijing’s investments in state-owned financial firms, finished buying shares of Industrial and Commercial Bank of China , China Construction Bank , Agricultural Bank of China , and Bank of China , the four banks said in stock exchange filings on Monday………………………………………..Full Article: Source

Sovereign funds expand in Africa

Posted on 16 December 2013 by VRS  |  Email |Print

Africa may not be home to the world’s largest sovereign wealth funds (SWFs) – those are in the Middle East and Asia – but the continent is becoming an important place for bankers, as several countries create funds to save commodities revenues.
Over the past two years, oil producers Nigeria, Ghana and Angola have established sovereign funds, managing $1bn, $100m and $5bn respectively, opening a new chapter for Africa. Other countries are likely to follow over the next decade, according to Mthuli Ncube, chief economist at the African Development Bank………………………………………..Full Article: Source

Norway’s $800 bln oil fund buys into MetLife’s Boston tower

Posted on 16 December 2013 by VRS  |  Email |Print

Norway’s $800 billion sovereign wealth fund has purhcased a 47.5 percent stake in One Financial Center, a 46-story office tower with 1.3 million rentable square feet in Boston, joining MetLife in the property, it said on Friday.
The fund, commonly known as the oil fund, purcahsed its stake from an affiliate of Beacon Capital Strategic Partners V, L.P. for a net price of $238 million, it said in a statement. MetLife, which will manage the property, meanwhile purchased 2.5 percent, bringing its total holding to 52.5 percen, the oil fund added………………………………………..Full Article: Source

MetLife joins Norway fund in U.S. commercial property venture

Posted on 16 December 2013 by VRS  |  Email |Print

MetLife Inc. (MET), the largest U.S. life insurer, joined Norway’s $810 billion sovereign wealth fund in a venture to invest in U.S. office properties.
The initial investment with Norges Bank Investment Management was in One Financial Center, a 46-story building in Boston, the New York-based insurer said today in a statement distributed by Business Wire………………………………………..Full Article: Source

Norway’s oil fund may shun coal stocks, ruling conservatives say

Posted on 16 December 2013 by VRS  |  Email |Print

Norway may next year decide that its $800 billion sovereign wealth fund, the world’s biggest, should boycott companies that produce coal, the government’s leading party said.
The opposition Labor Party, Norway’s biggest, last month proposed a ban on investments in stocks and bonds issued by those companies in a bid to promote cleaner energy. That proposal could gather a majority in parliament and be included in the oil fund’s investment strategy, according to Nikolai Astrup, energy and environment spokesman for the Conservative Party, which heads the new government………………………………………..Full Article: Source

Versace: Italian fund steps off GBP900mln catwalk

Posted on 16 December 2013 by VRS  |  Email |Print

Italy’s sovereign wealth fund is close to bowing out of the race to buy a stake in Versace as a trio of international private equity firms battle to invest in one of the world’s best-known fashion houses.
Sky News understands that Fondo Strategico Italiano (FSI) is expected to miss out on the shortlist to acquire 20% of family-owned Versace in a deal likely to value the company at about £900m. Blackstone and CCMP Capital, two New York-based firms, and Investcorp of Bahrain were informed on Friday that they were being considered as Versace’s new investment partner………………………………………..Full Article: Source

Kazakh Samruk-Kazyna reaches agreement on sale of its shares in two banks

Posted on 16 December 2013 by VRS  |  Email |Print

Kazakh Sovereign Wealth Fund Samruk- Kazyna reached an agreement with Kazakh investor Bulat Utemuratov on the sale of its shares in Temirbank and part of its shares in Alliance Bank.
Samruk- Kazyna will sell 79.88 percent of the ordinary shares in Temirbank and 16 percent of the common and preferred shares in Alliance Bank, according to the agreement. Meanwhile, Samruk-Kazyna will remain the main shareholder of Alliance Bank with 51 percent of the common and preferred shares following the transaction………………………………………..Full Article: Source

Billionaire Utemuratov buys two Kazakhstan banks

Posted on 16 December 2013 by VRS  |  Email |Print

Kazakh billionaire Bulat Utemuratov has finalized the deal to purchase Alliance Bank and TemirBank from Samruk-Kazyna Sovereign Wealth Fund, Tengrinews reports.
Earlier this year, President Nazarbayev instructed Samruk-Kazyna to sell its share in Alliance Bank and Temirbank. At about the same time Chairman of Alliance Bank Maksat Kabashev said that the cost of Alliance Bank and Temirbank could range from $500 million to $1 billion. However, the price paid by Utemuratov to purchase these banks has not been unveiled yet………………………………………..Full Article: Source

Temasek redeems S$500mln zero coupon exchangeable bonds due 2013

Posted on 16 December 2013 by VRS  |  Email |Print

Temasek Holdings has on Monday redeemed S$500 million zero coupon guaranteed exchangeable bonds due 2013. They were redeemed through its wholly-owned subsidiary, Temasek Financial (III) Private Limited (TFin-III).
L&F HK was a zero coupon exchangeable bond issued by TFin-III at par in December 2011, with a maturity date of Dec 14, 2013………………………………………..Full Article: Source

Budget 2014: Battle over Excess Crude Account frustrates presentation

Posted on 16 December 2013 by VRS  |  Email |Print

The protracted battle between the upper and lower legislative houses of the National Assembly has frustrated the presentation of the 2014 budget, even as the NASS goes on recess, Thursday.
The Chairman, Senate Committee on Rules and Business, Senator Ita Enang says if President Goodluck Jonathan decides to submit the 2014 national budget without a resolution on the 2014-2016 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP), it may raise “legal issues”………………………………………..Full Article: Source

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