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Sovereign Wealth Funds Briefing - Archive | August, 2014

World’s Biggest Wealth Fund Says U.S. Corporate Debt Boom Ending

Posted on 29 August 2014 by VRS  |  Email |Print

The head of debt investment at Norway’s $880 billion sovereign wealth fund, the world’s largest, said a rally in U.S. corporate bonds may be coming to an end.
Looking at “American corporate investment grade bonds, we see that the spread lies around 100 basis points, that is nearly just as low as they were before the financial crisis,” Ole Christian Froeseth, head of fixed-income at the oil fund, said in a lecture in Oslo today. “One can argue that there isn’t much juice left in this spread, especially not in relation to where we were during the financial crisis.”……………………………………….Full Article: Source

Singapore’s GIC reduces stake in Parkson

Posted on 29 August 2014 by VRS  |  Email |Print

Parkson Holdings Bhd announced via Bursa that Singapore’s sovereign wealth fund, GIC Private Ltd, ceased to be a substantial shareholder in the company. GIC sold 5.74 million shares or 0.5% on the open market, leaving it with a 4.57% interest in Parkson. According to Bursa filings, GIC had been continually selling the company’s shares since April.
At least one research house, AllianceDBS Research, had issued a sell call on the counter. “Parkson’s FY14 results missed consensus (-12%) but beat our expectations (+8%). Net profit plunged 42% year-on-year (yoy) despite revenue growth of 1.4%. Q4FY14 earnings were dragged down by weak China operations (under Parkson Retail Group [PRG]) with earnings before income tax (Ebit) dropping 29% yoy despite revenue rising 1%………………………………………..Full Article: Source

GIC makes huge investment in KKBOX

Posted on 29 August 2014 by VRS  |  Email |Print

The Government of Singapore Investment Corp (GIC) has invested US$104 million in the popular Taiwan-based music streaming service KKBOX Inc. The investment plans to boost KKBOX’s business across Asia, the two sides said.
A joint statement said GIC’s investment would be used to fund KKBOX’s “overseas expansion, as well as refine its technology and service.” The investment underlines GIC’s “confidence in the long-term growth potential of KKBOX given its unique music streaming service and strong franchise in its home markets,” it said………………………………………..Full Article: Source

Even at reduced levels, the oil dividend provides a significant fillip to Alaska’s income.

Posted on 29 August 2014 by VRS  |  Email |Print

The Alaska Permanent Fund was founded in 1976 as a basin to hold “at least 25 percent of all mineral lease rentals, royalties, royalty sales proceeds, federal mineral revenue-sharing payments and bonuses received by the state.” Its beneficiaries, according to the state constitution, were to be “Alaska and all present and future generations of Alaskans.”
Each year, about one-quarter of the oil production tax flows into the fund’s coffers. And even though production in Alaska has fallen over time, the elevated price of oil has kept the volume of revenues high. In 2013, some $840 million flowed into the fund………………………………………..Full Article: Source

Direct Institutional Investors: Why Sovereign Wealth Funds and Pensions are Important

Posted on 29 August 2014 by VRS  |  Email |Print

The Sovereign Wealth Fund Institute (SWFI) tracks direct public asset owner investment flows. Public asset owners are becoming bigger players in the capital markets. Increasingly, public asset owners are increasing assets, investing more directly, hiring more internal staff and acquiring more services. Public funds, particularly sovereign wealth funds, have grown enormously over the past decade.
In higher frequency, governments, asset managers, bankers and private equity funds have sought more information regarding these sovereign investors. As of August 2014, sovereign wealth funds are a US$ 6.7 trillion investor class. When combined with public funds over US$ 10 billion in assets, the figure surpasses US$ 22 trillion………………………………………..Full Article: Source

GIC invests $130m in music streaming services provider KKBOX

Posted on 28 August 2014 by VRS  |  Email |Print

GIC has invested US$104 million (S$130 million) in KKBOX, a provider of music streaming services in Asia, the two companies said in a joint statement on Wednesday. KKBOX, which was established in 2004 by a group of Taiwanese software programmers, will use the funds to expand overseas and improve its technology and service, said the company’s co-founder and chief executive Chris Lin.
GIC said it has “confidence in the long-term growth potential of KKBOX given its unique music streaming service and strong franchise in its home markets”. “With the rising demand of consumer technology in the region, there will be exciting opportunities for the company as it embarks on its expansion,” the sovereign wealth fund and KKBOX said in the statement………………………………………..Full Article: Source

SOFAZ, UN Working Group on business and human rights discuss cooperation

Posted on 28 August 2014 by VRS  |  Email |Print

Executive Director of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) Shahmar Movsumov met a delegation of the UN Working Group on business and human rights. During the meeting, Movsumov spoke about management of the fund`s resources, its investing activities and projects financed by SOFAZ.
The SOFAZ Executive Director also highlighted the Fund`s activities, as well as issues related to the implementation of the Extractive Industries Transparency Initiative………………………………………..Full Article: Source

Estimated at $1,930, Alaska PFD big but no record

Posted on 28 August 2014 by VRS  |  Email |Print

The annual Permanent Fund dividend that will be distributed to qualifying Alaskans in a little more than a month is projected to be worth $1,930.49, give or take $100, according to an analysis by Alaska Dispatch News.
At that amount, the check would more than double last year’s $900, a boost that comes because the distribution is based on fund revenues over five years. The dismal year of 2009, when the fund’s overall value declined as the nation was mired in recession, drops out of the equation………………………………………..Full Article: Source

Khazanah okays MAS plan, awaits Cabinet approval

Posted on 28 August 2014 by VRS  |  Email |Print

State asset manager Khazanah Nasional Bhd has approved the comprehensive restructuring plan for the loss-making Malaysia Airlines that will see up to 6,000 jobs disappear, say sources. The plan will be discussed by the Cabinet, a day after the Khazanah board had a meeting chaired by the sovereign wealth fund’s chairman Prime Minister Datuk Seri Najib Razak.
“The plan has been approved, now its up to the Cabinet,” a source said. The centrepiece of the plan will include shaving off thousands of jobs, as well as putting in place opportunities for re-training and placing out staff members, and drawing up retrenchment packages in the loss-making flag carrier………………………………………..Full Article: Source

Khazanah prepares to swing axe?

Posted on 28 August 2014 by VRS  |  Email |Print

Malaysia Airlines (MAS) is reported to be considering axing up to 5,000 staff as part of its restructuring under sovereign wealth fund, Khazanah Nasional. This would amount to around a quarter of the carrier’s staff. The carrier is widely considered to be overstaffed, and was struggling well before the twin tragedies of this year.
Loss making routes, including flights to China and Frankfurt, are also reported to be in the firing line, and the airline is also said to be reviewing its fleet plans………………………………………..Full Article: Source

PNG Gas revenue flows

Posted on 28 August 2014 by VRS  |  Email |Print

A total of 12 shipments of LNG gas have already left PNG shores, raking in almost US$600 million (K1.5 billion) in revenue for all the partners, including the government. Prime Minister Peter O’Neill told Parliament Wednesday,that the country has started the early export of LNG gas and to date 12 shipments have taken place with an estimated US$50 million per shipment.
He said the government is expected to receive an estimated US$30 billion revenue over the next 20 years, which is substantial revenue. He said the project is managed by ExxonMobil and all revenue from the gas export are parked in a trust account that is managed by ExxonMobil and not the PNG government………………………………………..Full Article: Source

Singapore’s GIC sees tough investment climate in next decade

Posted on 27 August 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC, which manages more than $100 billion of the city-state’s foreign reserves, warned in its annual report of a tough investment outlook over the next decade as global central banks withdraw ultra-easy monetary policies. According to GIC, prices of all major asset classes have been inflated by the massive stimulus measures, and now face weak future returns.
“Global financial markets have been recovering strongly from the 2008/09 global financial crisis, supported by low interest rates and unconventional monetary policies,” GIC indicated in the report. As central banks unwind monetary stimulus measures and interest rates increase, “financial assets will see diminished returns”, it said………………………………………..Full Article: Source

Khazanah okays MAS plan, awaits Cabinet approval

Posted on 27 August 2014 by VRS  |  Email |Print

State asset manager Khazanah Nasional Bhd has approved the comprehensive restructuring plan for the loss-making Malaysia Airlines that will see up to 6,000 jobs disappear, say sources. The plan will be discussed by the Cabinet today, a day after the Khazanah board had a meeting chaired by the sovereign wealth fund’s chairman Prime Minister Datuk Seri Najib Razak.
“The plan has been approved, now its up to the Cabinet,” a source said. The centrepiece of the plan will include shaving off thousands of jobs, as well as putting in place opportunities for re-training and placing out staff members, and drawing up retrenchment packages in the loss-making flag carrier………………………………………..Full Article: Source

Norway prospers as wealth fund value soars

Posted on 27 August 2014 by VRS  |  Email |Print

Public spending could get a boost in Norway after it was revealed the country’s sovereign wealth fund could reach six trillion kroner ($973 billion), the Norwegian government said on Monday. The Norwegian oil fortune by the end of 2014 is estimated to grow several hundred billion kroner larger than the government predicted in May this year. Dagens Næringsliv reported on Monday the extra revenue is around 500 billion kroner above earlier estimates.
Prior to the budget conference to be held in Oslo on Wednesday and Thursday this week, government officials were given secret files highlighting the large growth in Finance Minister Siv Jensen’s wealth fund………………………………………..Full Article: Source

Norway’s soaring oil fund gives government more spending power for 2015

Posted on 27 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund is growing far faster than expected, potentially leaving the government with more money to spend in next year’s budget, financial daily Dagens Naeringsliv reported on Tuesday.
The fund’s value could hit almost 6 trillion Norwegian crowns ($973 billion) by the end of the year, according to a new government forecast cited by the paper. That compares with a year-end estimate of 5.48 trillion crowns made in May. The newspaper gave no explanation for the discrepancy, but the fund invests heavily in foreign stock markets, many of which have been trading around multi-year highs………………………………………..Full Article: Source

Ho Iat Seng: Consider options ahead of Macau sovereign fund

Posted on 26 August 2014 by VRS  |  Email |Print

The President of the Legislative Assembly says that before a fund is created other options should be considered, as the first may be too risky. The President of the Legislative Assembly, Ho Iat Seng, said that if the government of Macau decides to create a sovereign wealth fund it must act very carefully, as times are very unstable for investment.
“I’m always concerned about the return rates of sovereign funds. These days, the return rates are low. I believe that if it is decided to create a sovereign fund it will require us to be very prudent”, Mr. Ho Iat Seng said during a meeting with journalists for the annual report of the legislative year………………………………………..Full Article: Source

Singapore’s GIC in final talks to buy Tokyo building for $2b: Sources

Posted on 26 August 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund is in talks to buy a Tokyo office tower for about 170 billion yen (S$2.04 billion), three people with knowledge of the deal said, in what would be Japan’s biggest property transaction since the financial crisis.
Singapore’s GIC Pte, which already has a large presence in Japan’s property market, outbid the asset management unit of Goldman Sachs Group Inc, which also participated in the final bid for the property, which was put up for sale by Secured Capital, part of Asian private equity firm PAG……………………………………….Full Article: Source

Corpbank majority owner working with Oman wealth fund on restructuring plan

Posted on 26 August 2014 by VRS  |  Email |Print

The majority owner of Bulgaria’s troubled Corporate Commercial Bank (Corpbank) said yesterday it was working with Oman’s sovereign wealth fund and other interested investors to restructure the lender. Corpbank’s fate has been in limbo since June, when a run on deposits prompted the central bank to seize control of it and close its operations, sparking the worst banking crisis in the poor Black Sea state since 1990s.
Tsvetan Vassilev’s Bromak owns just over half of Corpbank, the Balkan country’s fourth-largest lender. Oman’s sovereign wealth fund is the second-biggest shareholder with a stake of about 30%. The central bank said on Friday it had asked the two shareholders to unveil plans for the bank’s rescue by the end of August………………………………………..Full Article: Source

Tanzania Sets Up Special Unit to Scrutinise Gas Revenues and Wealth Fund

Posted on 26 August 2014 by VRS  |  Email |Print

Tanzania’s government is forming a special unit to monitor its natural resource revenues from major gas discoveries that promise to lift the country from poverty and free it from dependency on foreign aid in the coming decades.
The east African nation has enough natural gas, more than 50.5 trillion cubic feet discovered so far, to provide energy independence and bring significant export revenues. But Tanzania lacks experience in exploiting oil and gas, so relies on contracts with foreign companies such as Statoil of Norway and ExxonMobile to develop its immense offshore finds………………………………………..Full Article: Source

How Norway has avoided the ‘curse of oil’

Posted on 26 August 2014 by VRS  |  Email |Print

For while other countries have struck oil and then binged on the revenues, by contrast Norway is continuing to invest its oil and gas money in a giant sovereign wealth fund. The fund, worth about $800bn (£483bn), owns 1% of the entire world’s stocks, and is big enough to make every citizen a millionaire in the country’s currency, the kroner. In effect, it is a giant savings account.
And most Norwegians are seemingly very content with this - according to a 2012 study by New York’s Columbia University Norway is one of the world’s happiest countries. “We had to invest a lot of money before we could spend anything,” says Prof Alexander Cappelen, from the Norway School of Economics, explaining why the country has apparently avoided the pitfalls of vast wealth………………………………………..Full Article: Source

Norway Buys Yen Bonds as Local Pension Fund Cuts: Japan Credit

Posted on 25 August 2014 by VRS  |  Email |Print

Norway’s wealth fund, the world’s biggest, is diving into Japanese sovereign bonds, even as Japan’s government retirement fund prepares to cut holdings. The Oslo-based Government Pension Fund Global increased Japanese sovereign allocations 15 percent to 160.8 billion kroner ($26 billion) in June from the end of 2013, its biggest debt holding after U.S. Treasuries, the investor said.
Japan’s Government Pension Investment Fund, the world’s largest pool of retirement money, has signaled it will put more of its $1.23 trillion into domestic and overseas equities………………………………………..Full Article: Source

China fund buys stake in FieldAware

Posted on 25 August 2014 by VRS  |  Email |Print

Irish technology start-up FieldAware has secured a multi-million cash injection from the Chinese government. The China Investment Corporation, a sovereign wealth fund with $200bn in reserves, has snapped up a large stake in the Trinity College spin-off.
It is the first time the Chinese government has invested in an Irish technology company. Two more similar deals are due to be announced in the coming weeks. Unlike their US and British counterparts, Chinese investors have funded relatively little of Ireland’s booming tech start-up scene - but this may mark the beginning of a new relationship between the two countries………………………………………..Full Article: Source

Ho Iat Seng: Consider options ahead of Macau sovereign fund

Posted on 25 August 2014 by VRS  |  Email |Print

The President of the Legislative Assembly says that before a fund is created other options should be considered, as the first may be too risky.The President of the Legislative Assembly, Ho Iat Seng, said that if the government of Macau decides to create a sovereign wealth fund it must act very carefully, as times are very unstable for investment.
“I’m always concerned about the return rates of sovereign funds. These days, the return rates are low. I believe that if it is decided to create a sovereign fund it will require us to be very prudent”, Mr. Ho Iat Seng said during a meeting with journalists for the annual report of the legislative year. He also recalled his experience, back in 2007, when he was involved in the decision to create the China Investment Corporation, a sovereign wealth fund that manages part of the People’s Republic of China’s foreign exchange reserves………………………………………..Full Article: Source

India: Set up sovereign wealth fund to manage investments in PSUs

Posted on 25 August 2014 by VRS  |  Email |Print

Apex public sector enterprises body SCOPE today suggested setting up a sovereign wealth fund to manage investments in state-owned units. “Globally, many countries have created sovereign wealth fund or sovereign holding structure for their state-owned enterprises for improving governance and deliverability.
“Therefore, there is need for structural change which could be arrived at by wide deliberations between academicians, researchers, professional and government and people at large. This would help in improving corporate governance practices and far better professionalization,” Standing Conference of Public Enterprises (SCOPE) Director General U D Choubey said in a statement………………………………………..Full Article: Source

MAS Urged With Khazanah For Smooth Takeover

Posted on 25 August 2014 by VRS  |  Email |Print

A Member of Parliament (MP) today appeals to Malaysia Airlines’ (MAS) workers especially its employees unions to give their full cooperation to Khazanah Nasional Bhd to ensure the takeover of MAS by Khazanah can proceed smoothly. Anuar Manap, MP of Sekijang, said it was critical for all interested parties in an effort to revive MAS to be in consensus, united and think of one objective – what is the best method to save MAS which is a symbol of national pride.
“The full support is not only demanded of the rakyat, but definitely from those in MAS itself. Through the restructuring process by Khazanah, I am confident MAS will get out of the financial turmoil it is facing now via a rejuvenation process that is truly effective,” he told Bernama………………………………………..Full Article: Source

Societe Generale’s Libya case to run to court

Posted on 25 August 2014 by VRS  |  Email |Print

French bank has opted against getting $1.5bn bribery case stemming from Gaddafi days thrown out. Societe Generale has opted to allow a bribery case brought by Libya’s sovereign wealth fund to go to court, having previously indicated that it would attempt to have the case thrown out.
The French bank is accused by the Libyan Investment Authority (LIA), which is believed to control about $60bn (£36bn) of the country’s wealth, of paying some $58m in bribes to key officials in the Gaddafi regime and at the top of the fund to smooth over trades that lost the LIA hundreds of millions, in the years before Muammar Gaddafi was overthrown in 2011………………………………………..Full Article: Source

Libyan sovereign wealth fund set to sue SocGen in alleged bribery case

Posted on 25 August 2014 by VRS  |  Email |Print

Société Générale has decided against filing a summary judgment application in the UK High Court over its earlier plea to have a bribery-linked lawsuit filed against it by Libya’s sovereign wealth fund to be dismissed.
The Libyan Investment Authority, which apparently oversees assets worth almost $60bn, has charged SocGen with paying about $58m in bribes to influential members of the erstwhile Gaddafi regime - including senior LIA executives - to smooth over transactions that cost the state-backed fund hundreds of millions of dollars………………………………………..Full Article: Source

Kuwait’s oil revenues masks inherent weakness

Posted on 25 August 2014 by VRS  |  Email |Print

The credit rating agency Standard and Poor’s has made the right move in retaining Kuwait’s ratings, namely AA for the long-term and A-1 for short-term with a stable outlook. The assumptions were made on some significant data available with S&P.
The S&P report suggests that Kuwait enjoys a sizable net asset position, compromising 2.7 times the GDP. Undoubtedly, this is something extraordinary in today’s world where maintaining such positions are an exception. This fact is supported by the latest Sovereign Wealth Institute data, placing Kuwait’s sovereign wealth fund at $410 billion. Certainly, this fund is a major contributor to investment income, which amounted to about $16 billion in 2013………………………………………..Full Article: Source

ORTEL: Create an American sovereign wealth fund

Posted on 22 August 2014 by VRS  |  Email |Print

In America, the cradle of capitalism, we need to have a sovereign wealth fund. Capitalized with at least $1 trillion in the beginning, our fund should be the largest, most forward-looking and most successful one in the world. If run independently (without partisan influence) by credentialed managers who might contribute their service gratis, America’s Sovereign Wealth Fund would produce consistent and outsized rates of return on invested capital.
Under exceptional management, our fund could grow in size to levels that might help reassure our foreign creditors, as these must already be more than worried given the size of America’s total debt, and our demonstrated pattern of bipartisan profligacy………………………………………..Full Article: Source

Norway’s gargantuan sovereign wealth fund, by the numbers

Posted on 22 August 2014 by VRS  |  Email |Print

Only 5 million people live in Norway, but thanks to the country’s careful management of its oil wealth, the country runs the largest sovereign wealth fund in the world. Everything about the fund is big. Very big. Reported assets, for example, totaled $890 billion at the end of June—that’s $178,000 for every Norwegian. And the fund holds around 1% of all the stocks and bonds in the world.
By the end of 2020 the government expects the fund—officially known as the Government Pension Fund Global—to be worth the equivalent of $1.1 trillion in today’s money. To try to put the fund’s size and growth in perspective, the chart below shows its year-end values converted into current dollars, alongside a few examples of things that fetch roughly the same amount of money today………………………………………..Full Article: Source

World’s biggest wealth fund takes focus off emerging markets

Posted on 22 August 2014 by VRS  |  Email |Print

Norway’s €663bn sovereign wealth fund, the world’s largest, is slowing its expansion into emerging markets as it scales back a two-year mission to tap into the fastest growing markets. “We are gradually picking up some new markets but at a less rapid pace than we did at the beginning of the year,” Yngve Slyngstad, the fund’s chief executive officer, said in Oslo.
The fund has been accelerating its investment into emerging markets since 2012, when it won permission to realign large parts of its portfolio away from developing markets to help boost returns. At the time, the government approved a plan to reduce holdings in Europe to 41pc from 54pc of the total portfolio………………………………………..Full Article: Source

Norway sovereign fund up 3.3% in Q2

Posted on 22 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, returned 192 billion kroner (S$38.79 billion) in the second quarter as energy stocks and emerging markets led a rally amid turmoil in Iraq and Ukraine. The Government Pension Fund Global gained 3.3 per cent in the quarter, the Oslo-based investor said yesterday. The US$880 billion fund’s stock holdings returned 4 per cent and its bonds 2 per cent. Real estate returned 3 per cent.
“Equity markets rose in the second quarter and emerging markets performed best,” Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which runs the fund, said in a statement. “Considerable liquidity flowed into the market, which pushed asset prices up.”……………………………………….Full Article: Source

SOFAZ to invest in China’s market

Posted on 22 August 2014 by VRS  |  Email |Print

Azerbaijan s state oil fund SOFAZ intends to invest in the Chinese market with the government debt securities, SOFAZ told Trend Agency on August 14. China as the second largest economy in the world remains an attractive market for the growing number of foreign investors. Prospects of the Chinese Yuan as an additional investment currency attract considerable interest of various categories of investors, including sovereign wealth funds.
SOFAZ has recently applied to the People s Bank of China to use broad investment opportunities in the Chinese market, SOFAZ said. The decision was made after careful evaluation of investments in the context of the overall investment portfolio. Currently the fund is at the stage of negotiation with the Chinese authorities on the approval of the quota. The outcomes of the negotiations will be released after the signing of agreements between Azerbaijan and China………………………………………..Full Article: Source

Russia Tensions May Hurt Norway Oil Fund Earnings

Posted on 21 August 2014 by VRS  |  Email |Print

The effect on European equities of tensions between Russia and the West could pose a challenge to Norway’s $890 billion sovereign-wealth fund, its chief executive said Wednesday. Yngve Slyngstad also told The Wall Street Journal that the fund has retained its holdings in Russian banks and oil companies despite the tensions, and U.S. and European sanctions against Russia.
“The biggest challenge regarding Russia is of course how it leads to a pricing of other assets, first and foremost our European stockholdings, and we have a huge share of our equity holdings in Europe,” he said………………………………………..Full Article: Source

Norway’s Wealth Fund Gains $31 Billion on Global Stock Surge

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, returned 192 billion kroner ($31 billion) in the second quarter as energy stocks and emerging markets led a rally amid turmoil in Iraq and Ukraine. The Government Pension Fund Global gained 3.3 percent in the quarter, the Oslo-based investor said today. The $880 billion fund’s stock holdings returned 4 percent and its bonds 2 percent. Real estate returned 3 percent.
“Equity markets rose in the second quarter and emerging markets performed best,”Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which runs the fund, said in a statement. “Considerable liquidity flowed into the market, which pushed asset prices up.”……………………………………….Full Article: Source

Norway to keep $8.2bn Russian assets – for now

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s massive sovereign wealth fund yesterday announced that it was likely to hang on to its $8.2bn (£4.93bn) worth of Russian assets des­pite Western sanctions on Moscow. However, the $885bn fund – one of te world’s biggest investors said it did not plan further purchases because of political risk.
The fund has $8.2 billion invested in Russian bonds and stocks, and kept that holding broadly unchanged in recent months, chief executive, Yngve Slyngstad told a news conference. During that time, western countries imposed sanctions on Russia, accusing it of backing separatist rebels in eastern Ukraine. Moscow, denying the charge, hit back by stopping imports of many food products………………………………………..Full Article: Source

Norway oil fund to double number of top executives

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s $885bn oil fund is doubling the number of its senior executives in the latest sign it is restructuring itself to tackle its ever-increasing size and its shifting responsibilities as an investor. Norges Bank Investment Management, the arm of the Norwegian central bank that manages the fund, is creating a number of new positions to help manage its nascent property portfolio, as well as appointing three chief investment officers.
These three officers will be responsible for different investment strategies rather than specific asset classes as the oil fund merges its equities and corporate credit analysis functions………………………………………..Full Article: Source

Giant Norway Oil Fund Plans Bigger Push into Real Estate

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund is shaking up its leadership, doubling the number of top executives to 12 and hiring more staff as it prepares a significant boost to its investments in high-end office and retail properties in cities such as London, Paris, and New York.
“Looking at our real-estate purchases in the recent three years, we’ve barely kept pace with the fund’s growth,” Norges Bank Investment Management Chief Executive Yngve Slyngstad told The Wall Street Journal in an interview Wednesday………………………………………..Full Article: Source

World’s largest wealth fund slows investment into new markets

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s US$880 billion (RM2.7 trillion) sovereign wealth fund, the world’s largest, is slowing its expansion into emerging markets as it scales back a two-year mission to tap into the fastest growing markets.“We are gradually picking up some new markets but at a less rapid pace than we did at the beginning of the year,” Yngve Slyngstad, the fund’s chief executive officer, said yesterday in an interview after a press conference in Oslo.
The fund has been pouring into emerging markets since 2012, when it won permission to step up its investment. At the time, the government approved a plan to reduce holdings in Europe to 41 per cent from 54 per cent of the total portfolio………………………………………..Full Article: Source

Angola SWF to send students to Switzerland as it ‘invests in investing’

Posted on 21 August 2014 by VRS  |  Email |Print

Angola’s sovereign wealth fund, the Fundo Soberano de Angola (FSDEA), has launched a scholarship scheme for young Angolans to study business management, banking and finance in Switzerland with a view to improving the country’s capacity to invest its oil revenues wisely.
The programme, in partnership with the School of Management and Law of the Zurich University of Applied Sciences (ZHAW), will send talented young Angolans to Zurich to undertake “an intensive and exclusive management course with a focus on international business management and banking and finance”, according to a joint ZHAW and FSDEA statement………………………………………..Full Article: Source

Libyan sovereign wealth fund expected to hire new chief

Posted on 21 August 2014 by VRS  |  Email |Print

The Libyan Investment Authority, the violence-hit North African nation’s $60bn sovereign wealth fund, is likely to name senior World Bank executive Ahmed Ali Attiga as its new chairman by the end of the year, The Daily Telegraph gathers. Attiga, who is currently representing the World Bank’s International Finance Corporation unit in Jordan, hails from a high-profile Libyan family associated with King Idris, the ruler before the late Muammar Gaddafi.
Separately, it emerged on Tuesday that Goldman Sachs had withdrawn a summary judgment application it filed in April at the UK High Court, requesting the quashing of a lawsuit filed against the investment bank by the LIA. The state-backed investment fund had charged Goldman Sachs with mis-selling it second-rate investment products that cost the LIA billions………………………………………..Full Article: Source

ETF providers take on pension and sovereign wealth challenge

Posted on 21 August 2014 by VRS  |  Email |Print

Pension and sovereign wealth funds are not traditionally big investors in ETFs because of concerns over cost, flexibility and restrictions on buying listed securities. But that may be about to change as providers look to woo big institutional investors.
Of the 3,367 institutional buyers of exchange-traded funds (ETFs) across 50 countries in 2012 only 1% was a pension fund, while investment advisers accounted for 60%, according to consultancy ETFGI. Meanwhile few sovereign wealth funds admit to buying ETFs and some are decidedly negative about the products. For example, the $850 billion Government Pension Fund of Norway - the world’s largest sovereign wealth fund - states: “The fund does not invest through ETFs.”……………………………………….Full Article: Source

JP Morgan targets hedge funds and SWFs in new sales push

Posted on 21 August 2014 by VRS  |  Email |Print

JP Morgan has set up a dedicated equities salesforce in London to serve its hedge fund clients and sovereign wealth funds, as part of the bank’s push to become a top three cash equities house globally.
Simon Taylor, who re-joined the bank in 2012 after a stint as head of equity sales trading at Royal Bank of Scotland, has been tasked with leading the new 10-strong cash equity hedge fund sales team. He will report to Michael Wilson, head of equity sales in Europe, the Middle East and Africa………………………………………..Full Article: Source

Goldman withdraws attempt to stop $1bn Libya fund dispute

Posted on 20 August 2014 by VRS  |  Email |Print

Goldman Sachs has withdrawn an application to have a $1bn lawsuit filed by the Libyan Investment Authority, a former client, thrown out of an English court ahead of trial. The US investment bank has withdrawn its request for a summary judgment in the dispute lodged at the High Court, it confirmed on Tuesday.
A summary judgment is when a matter is determined before trial, and Goldman’s withdrawal of its application removes one hurdle that the LIA would have had to overcome before getting a full hearing of the evidence in court………………………………………..Full Article: Source

Goldman to face Libya’s sovereign wealth fund in court over trades

Posted on 20 August 2014 by VRS  |  Email |Print

Goldman Sachs and Libya’s sovereign wealth fund are set to meet in a London court over claims the Wall Street bank exploited a position of trust by encouraging the fund to invest more than $1 billion in trades that ended up worthless.
Goldman had filed a summary judgment application - a request to decide a claim without going to trial - in the case brought by the Libyan Investment Authority (LIA) in January, but has recently withdrawn it, the LIA said in a statement. “Following the serving of the LIA’s reply evidence, Goldman Sachs has withdrawn its summary judgment application,” the LIA said………………………………………..Full Article: Source

Malaysia’s Khazanah Sells $476 Million Ringgit Islamic Bonds

Posted on 20 August 2014 by VRS  |  Email |Print

Malaysia’s state-owned investment fund, which is offering to take the national airline private, sold 1.5 billion ringgit ($476 million) of Islamic bonds today, said two people with knowledge of the deal.
Khazanah Nasional Bhd. priced the five-year debt to yield 4.14 percent, within its earlier guidance of 4.1 percent to 4.18 percent, said the people who asked not to be named because the information hasn’t been made public yet. The issuance is part of a 7 billion ringgit program to raise funds for corporate purposes, they said………………………………………..Full Article: Source

Invest Corp of Dubai, Korea’s Kexim sign deal

Posted on 20 August 2014 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD), the sovereign wealth fund of the Emirate of Dubai, and the Export-Import Bank of Korea (Kexim) have signed a Memorandum of Understanding (MoU) to form an alliance to explore international investment and export finance opportunities in Asia, the Middle East and Africa.
Kexim is the official trade finance agency of the Republic of Korea with a remit to provide export finance or support international investments in which Korean parties participate………………………………………..Full Article: Source

Nigeria: National revenue drops by N154.56b, says FAAC

Posted on 20 August 2014 by VRS  |  Email |Print

The fortunes of the three tiers of government suffered a huge decline last month as the Federal Government said the country recorded a N154.56 billion decline in gross federally collected revenue from N784.88 billion received in June to N630.32 billion in July, this year.
The Minister of State for Finance, Ambassador Bashir Yuguda said Federation Accounts Allocation Committee (FAAC) transferred N6.2 billion to the Excess Crude Account thus bringing the balance in the account to $4 billion while the sum of N35 billion was transferred to the domestic excess crude account for payment to oil marketers as subsidy………………………………………..Full Article: Source

Dubai and South Korea sign joint investments deal

Posted on 19 August 2014 by VRS  |  Email |Print

Dubai and South Korea are teaming up to fund joint investments as the emirate cements its role as the business launch pad for the Middle East and Africa.
Investment Corporation of Dubai, the emirate’s state holding company, on Monday signed a memorandum of understanding (MoU) for an alliance with the Export-Import Bank of Korea, the official trade finance agency of South Korea………………………………………..Full Article: Source

Dubai’s ICD Said to Seek $880 Million Atlantis Debt Refinancing

Posted on 19 August 2014 by VRS  |  Email |Print

Investment Corporation of Dubai, the emirate state-owned holding company, is seeking to refinance an $880 million loan taken out by resort hotel Atlantis, The Palm, according to four people with knowledge of the matter.
The company hired HSBC Holdings Plc (HSBA), Standard Chartered Plc (STAN), and Emirates NBD PJSC on the deal, three of the people said, asking not to be identified as the talks aren’t public. The company is seeking a significant cut on the 5.5 percent above the London interbank offered rate price it has on the existing deal, three of the people said. The new loan could be increased to about $1 billion, one of the people said………………………………………..Full Article: Source

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