Thu, Sep 29, 2022
Welcome mteam

Sovereign Wealth Funds Briefing - Category | Uncategorized more

World’s largest sovereign-wealth fund may have hit its limit

Posted on 17 August 2016 by VRS  |  Email |Print

After the Brexit, there has been evidence of large inflows of money into equity markets, and those inflows seem to discount valuation and growth concerns in favor of dividends that are higher than comparable interest attainable from near-term and midterm duration fixed income.
In what seems like a search for yield, after the Brexit, the spigot seemed to open for these inflows, and it is my opinion that these inflows are coming from the biggest boys in the room, namely sovereign-wealth funds (SWFs). Sentiment on the Street suggests that these massive funds can push this market up forever, and they certainly have the money, but they also have mandates, ones that are not easily modified, and therefore certain limitations exist………………………………………..Full Article: Source

Temasek unit buys Tata Communications 17 data centers for $634m

Posted on 20 May 2016 by VRS  |  Email |Print

Tata Communications Ltd., part of India’s biggest conglomerate, announced the sale of 74 percent stake in its data center business to a unit of Temasek Holdings for an enterprise value of $634 million to raise funds for expansion and pare debt. Singapore Technologies Telemedia Pte. is buying the majority stake in 14 data centers in India and three Singapore facilities while Tata Communications will retain the remaining 26 percent.
The transaction is expected to close “in the coming weeks” and the proceeds will go toward new investments, according to Rangu Salgame, Tata Communications’ chief executive officer for growth ventures………………………………………..Full Article: Source

SWFs Selling Out

Posted on 20 April 2015 by VRS  |  Email |Print

On Tuesday the China Investment Corp. (CIC) disclosed that it had sold more than 375.6 million shares in Shanghai-based Semiconductor Manufacturing International Corp. (SMIC) in a series of transactions over the first three months of 2015, lowering its stake to 10.5 percent of SMIC’s shareholder capital.
CIC had subscribed to purchase some HK$161.1 million ($20.6 million) in the company’s Hong Kong-listed shares in August 2014. However, SMIC’s share price has risen since then — its shares listed on the New York Stock Exchange have gained nearly 41 percent over the past 12 months — and the fund appears to have moved to cash in on the excess return…………………………………….Full Article: Source

Taiwan: Central bank turns down sovereign wealth fund idea

Posted on 23 July 2014 by VRS  |  Email |Print

The central bank yesterday rejected suggestions that it use the nation’s foreign-exchange reserves to establish a sovereign wealth fund, saying the two differ in operations and objectives. Local media reported last week that former minister without portfolio Schive Chi had called for the establishment of a sovereign wealth fund to better manage the nation’s forex reserves, raise their profitability and help narrow the nation’s deficit.
However, the central bank did not agree, issuing a 49-page reference report in response. “There are foreign-exchange reserves to maintain stability in the foreign-exchange market,” the bank said in the report………………………………………..Full Article: Source

Timor Leste Petroleum Fund escalates 50 times in under seven years

Posted on 06 July 2012 by VRS  |  Email |Print

Timor Leste (East Timor) gained its independence from Indonesia in a United Nations sponsored referendum in 1999 and became a sovereign state and member of the United Nations in May 2002.
With a population of 1.1 million, it is the second smallest country in Southeast Asia, after Brunei, and was the least developed at independence with its sole export being organic coffee. Economic growth has since been rapid, on the back of oil revenues and reconstruction from war………………………………………..Full Article: Source

Plan of Kazakh National Welfare Fund board of directors’ activity approved

Posted on 05 July 2012 by VRS  |  Email |Print

A regular full meeting of the board of directors of the Sovereign Wealth Fund Samruk-Kazyna chaired by Prime Minister Karim Massimov was held on July 3. A plan of the board of directors for the second half of the year was approved, the fund said.
The order of evaluating Samruk-Kazyna corporate governance has been approved during a meeting. The procedure has been developed on the basis of diagnostic techniques of corporate governance in the companies of Samruk-Kazyna. The principles of international best practice of the corporate governance have been laid in its basis………………………………………..Full Article: Source

Brazil’s foreign reserves increase $1.5 bln in June

Posted on 04 July 2012 by VRS  |  Email |Print

Brazil’s foreign currency reserves picked up $1.5 billion in June from the previous month, reversing the drop saw in May, as the value of country’s investments increased.
Foreign exchange reserves, which are a significant part of Brazil’s protection against global crises, totaled $373.9 billion in June, up from $372.4 billion recorded in May, the Central Bank of Brazil said on its website Tuesday………………………………………..Full Article: Source

Opalesque Exclusive: Newly launched Sovereign Wealth Fund aims to top 150 billion assets in first year

Posted on 01 April 2011 by VRS  |  Email |Print

Taurus Orators, the well-known alternative thinking group who last year launched an unsuccessful bid for the QE II to be used as a floating hedge fund hotel have been appointed to run a new sovereign wealth fund on behalf of a number of high net worth individuals.

This fund will be called the “X-Sovereign Wealth Fund” and the initial subscribers are ex-President Ben Ali of Tunisia, and ex- President Hosni Mubarak of Egypt. Discussions have been held with President Muammar Gaddafi of Libya and President Robert Mugabe of Zimbabwe. A number of other wealthy Middle East and African leaders have also expressed a keen interest to get involved.

Taurus Orator’s role will be to select various investment managers around the world to ensure global diversification. It is estimated that the assets under management could easily top $150bn in the first year if other leaders decide to contribute.

But acceptance to the fund is not cut and dried despite the qualification of being a wealthy ex-politician. Ex-Prime Minister Tony Blair is still smarting because his application was turned down because he only has millions and not billions. Ex- President George Bush’s joint application with Dick Cheney is still being considered by the fund managers.

Ex-President Hosni Mubarak has requested that Berlusconi be appointed as an advisor given the careful attention that he paid to the assets of the ex-President’s granddaughter. There is also a distinct possibility that President Berlusconi may soon also be eligible as an investor in the fund.

Adolph R Shole, the Chairman of the Fund notes: “With a fund of this size we may even consider launching a bid for the new QE II to turn it into a floating fund management village dedicated to the management of this money. This will put the assets of the fund on the high seas to avoid any possible attachment by any government, but we will avoid sailing too close to Somalia!”.

For more background information see

Amyris Biotechnologies secures investment from Temasek Holdings

Posted on 01 April 2010 by VRS  |  Email |Print

Amyris Biotechnologies, Inc. announced that Temasek Holdings has invested $47.8 million into the company. Amyris intends to use these funds to support commercial plant design and construction activities as well as ongoing operations in the U.S. and Brazil.
“We are privileged to welcome Temasek as a significant investor, and appreciate having them join us as we look to commercialize and scale our renewable fuels and chemicals,” said John Melo, chief executive officer of Amyris………………………………Full Article: Source

Chinese SWF investing under the radar

Posted on 03 March 2010 by VRS  |  Email |Print

From Lcbackerblog: Sovereign wealth funds are at their lest effective–and most transparent, when they operate as single entity investment vehicles.
China has been among the most successful at starting to re-arrange their sovereign investing on more sophisticated–and potentially less transparent (and accountable) –basis……………………………………….Full Article: Source

Temasek Holdings recovers huge portfolio losses with $37bn value gain (+40%) in Q2

Posted on 11 August 2009 by VRS  |  Email |Print

From Komfie Manalo, Opalesque Asia: Singapore’s state fund Temasek Holdings has recovered a huge portion of its portfolio losses since March-09 as its value saw a major rebound on a strong global equity markets performance, according to a Strait Times analysis., which quoted the report, said that Temasek had reaped an estimated $37bn gain from March 31 to July 31, or a 40% upswing. Findings showed that much of Temasek’s gains since the end of March had been driven by its exposure to financial firms.

It added that the jump in value saw Temasek’s portfolio reach about $164bn at the end of July. The publicly-listed fund lost over $40bn for the 12 months to March 31 this year.

Temasek tries new tack to counter losses

Last month, Temasek announced it had introduced radical changes in the direction of the state-run funds to counter losses.

According to a report by, Temasek allowed institutions, as well as Singapore’s public, to team up on the firm’s investments. Temasek offered few details on the plan.

The plan set Temasek apart from the world’s other government-run funds, because it became more transparent, a rare quality with sovereign wealth funds, the report said.

Temasek problems, real or just PR issue

In June, Bryan Goh’s article in Opalesque noted that Temasek’s track record had been under fire because of its investments in Merrill and Barclays.

Goh said: “Temasek should not shy away from taking risk, particularly now. The last 30 years have seen steady growth in economies and wealth. The democratization of risk through the rise of derivatives, the growth of capital employed in active management across markets, in arbitrage and relative value as well as traditional investing, the widening and deepening of markets, have all contributed to a gradual reduction in continuous risk.”

NZ state fund to invest in public-private partnership

Posted on 24 July 2009 by VRS  |  Email |Print

From Reuters: A New Zealand fund that will use private capital to help fund public infrastructure works has signed up the state pension fund as its first investor, the manager of the fund said on Thursday.

The New Zealand Superannuation fund will contribute up to NZ$100 million ($66 million) to a fund with an initial investment limit of NZ$500 million, to be managed by infrastructure investment firm HRL Morrison and Co………..Full Article: Source

2009 Sovereign Wealth Fund review as they currently control an aggregate $3.22tn in assets under management

Posted on 02 April 2009 by VRS  |  Email |Print

Despite the global turmoil that has seen the assets of other institutional investors drop over the course of 2008/2009, the formation of a number of significant new sovereign wealth funds has seen the aggregate capital controlled by these giant investment vehicles grow by 6% from 2008 figures.

Sovereign wealth funds currently control an aggregate $3.22tn in assets under management, up from $3.05tn in 2008. They remain a vitally important source of capital, and have been making important investments across all the different asset classes over the past year…..Full Press Release: Source

Alberta expects first deficit in 15 years

Posted on 20 February 2009 by VRS  |  Email |Print

From Reuters: Canada’s energy-rich province of Alberta is expected to report its first budget deficit in 15 years this fiscal year, racking up more than C$1 billion ($800 million) in red ink as the value of its savings fund sinks.

Provincial Finance Minister Iris Evans said the province will report a balanced operating budget, with revenues equalling expenses for 2008-09…… Full Article: Source

Hong Kong’s foreign currency reserve assets fall US$800m

Posted on 10 February 2009 by VRS  |  Email |Print

From Hong Kong’s foreign currency reserve assets stood at US$181.7 billion at the end of January, down US$800 million on December, the Monetary Authority says.

Including unsettled forward contracts, the foreign currency reserve assets of Hong Kong also stood at US$181.7 billion. The December figure was US$184.8 billion….. Full Article: Source

September 2022
« Nov