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Sovereign Wealth Funds Briefing - Archive | September, 2009

Kuwait wealth fund mulls renewables

Posted on 30 September 2009 by VRS  |  Email |Print

From Kuwait’s sovereign wealth fund is considering opportunities in renewable energy, including potential investments in Italy, the fund’s managing director and an Italian minister said on Tuesday.

‘It (the Kuwait Investment Authority) will not hesitate in investing in this new sector if the viability of these investments and long-term returns were proved,’ Kuwait’s state news agency Kuna said citing KIA managing director Bader al-Saad. He did not elaborate……………….Full Article: Source

Kuwait’s SWF eyes Italian investment opportunities

Posted on 30 September 2009 by VRS  |  Email |Print

From Kuwait’s sovereign wealth fund chief is in talks in Rome to discuss possible investment opportunities in Italy.

Bader Al-Saad, managing director of Kuwait Investment Authority (KIA) is on an official two-day visit to the Italian capital to “attend several meetings in order to fetch the best options of investments in Italy”, KUNA News Agency reported……………….Full Article: Source

Kuwait sovereign fund denies losing $94 bln

Posted on 30 September 2009 by VRS  |  Email |Print

From Kuwait Investment Authority (KIA), the Gulf state sovereign wealth fund, on Tuesday denied a United Nations claim its assets slumped by $94 billion due to the global financial crisis.
KIA acting managing director Othman Ibrahim al-Issa said in a statement cited by the official KUNA news agency that the authority has asked the UN agency which reported the losses to rectify the mistake……………….Full Article: Source

Russia woes Gulf SWFs

Posted on 30 September 2009 by VRS  |  Email |Print

From Reuters: Prime Minister Vladimir Putin promised to launch a new Russian privatisation drive on Tuesday before courting over lunch the heads of some of the world’s largest sovereign wealth funds and money managers.

Several Russian officials have said that Russia, struggling to come out of its worst recession in more than a decade, should embark on fresh privatisation after several years in which the state’s role in the economy has steadily grown……………….Full Article: Source

SWFs to focus on commodity firms

Posted on 30 September 2009 by VRS  |  Email |Print

From Sovereign wealth funds (SWFs) are expected to pick up strategic equity stakes in commodity firms over the next three quarters due to the long-term returns of this asset class, a new tracking tool shows.

Equity holdings in the oil sector are also attractive, with crude prices having risen consistently for the past four months……………….Full Article: Source

Japan’s sovereign wealth fund could focus on emerging economies

Posted on 30 September 2009 by VRS  |  Email |Print

From The head of Japan’s sovereign wealth fund (SWF) initiative said 30 per cent of a proposed US$100 billion fund could be invested in emerging economies.

The proposed fund is also aimed at targeting long term investments, such as natural resources, energy, and food production……………….Full Article: Source

Global sovereign funds show an interest to investments in Azerbaijan

Posted on 30 September 2009 by VRS  |  Email |Print

From Shahmar Movsumov, the executive director of the State Oil Fund of Azerbaijan (SOFAZ), stated that there were about 30 sovereign funds (SFs) around the world with overall assets of $3 trillion and they had great interest to investments in Azerbaijan.

The major condition for SFs’ investments in Azerbaijan is availability of fully functional stock exchange……………….Full Article: Source

State Oil Fund of Azerbaijan ready to begin operations at domestic stock market

Posted on 30 September 2009 by VRS  |  Email |Print

From Baku Shahmar Movsumov, the executive director of the State Oil Fund of Azerbaijan (SOFAZ), stated that being one of the sovereign funds itself SOFAZ can conduct now operations at stock market abroad.

“Currently we are working at the New York Exchange (NYMEX) and NASDAQ, but in the prospect we do not rule out beginning of operations at the stock market of Azerbaijan,” he said……………….Full Article: Source

CIC invests $2 bln in Goldman fund, others

Posted on 30 September 2009 by VRS  |  Email |Print

From Reuters: China Investment Corp, the $200 billion sovereign fund, is set to pour a total of $2 billion into three U.S. distressed asset-focused funds, including one managed by Goldman Sachs, sources said on Tuesday.

CIC plans to invest around $600-$700 million each in three distressed asset investment funds, another managed by U.S. investment firm Oaktree Capital, said the sources briefed on CIC’s plan……………….Full Article: Source

CIC braves U.S. distressed assets

Posted on 30 September 2009 by VRS  |  Email |Print

From Reuters: China is no stranger to rolling the dice on risky U.S. investments. But like most big investors, it has been staying away from the tables for a while.
Now we have word that its $200 billion sovereign wealth fund is pouring $2 billion into three funds focused on U.S. distressed assets. The funds are run by Goldman Sachs, Oaktree Capital and a third, as yet unidentified manager……………….Full Article: Source

CIC commodity spree continues

Posted on 30 September 2009 by VRS  |  Email |Print

From China’s sovereign wealth fund, China Investment Corporation (CIC), has announced two separate investments in two days totaling US$2.75bn. CIC announced recently it would be increasing new overseas investment in 2009 by more than ten times last year’s figure of US$4.8bn.

The fund has taken over US$1.9bn of debt from Indonesia’s largest coal producer, PT Bumi Resources, which has revived Bumi’s capital expenditure and its implementation of growth strategies……………….Full Article: Source

China eyeing CP Prima

Posted on 30 September 2009 by VRS  |  Email |Print

From China Investment Corporation reportedly intended to be a share holder at PT Central Proteinaprima Tbk/ CP Prima.

A source revealed that the foreign company is going after shares at Asian companies which are currently undervalue. “According to the info, it’s the CIC (China Investment Corporation) that’s probing into CPRO’s shares,” the source said in Jakarta on Monday, September 28……………….Full Article: Source

CIC loan benefits Bumi: Srivastava

Posted on 30 September 2009 by VRS  |  Email |Print

From PT Bumi Resources Tbk. (BUMI) sees their debt instrument to China Investment Corporation (CIC) is more profitable for the company and its shareholders. It is based on the calculation of the internal rate of return (IRR) of the debt, reaching 19 percent per year.

“The total IRR of the CIC loan is cheaper than issuing new stock,” said Bumi Resources’ senior vice president investor relations Dileep Srivastava in a text message to VIVAnews in Jakarta on Tuesday night, Sept. 29……………….Full Article: Source

GIC’s Tan eyes profit from protecting downside

Posted on 30 September 2009 by VRS  |  Email |Print

From Reuters: Tony Tan, the man leading Singapore’s biggest sovereign wealth fund, is no longer the doomsdayer he was more than a year ago when he warned that the global economy could face its worst recession in 30 years.

Tan and his team at the Government of Singapore Investment Corp (GIC) are now looking at emerging markets with cautious optimism and have built up a warchest to do deals — with eight percent of estimated $200 billion plus assets in cash……………….Full Article: Source

Singapore’s GIC’s well-timed moves

Posted on 30 September 2009 by VRS  |  Email |Print

From The Government of Singapore Investment Corporation (GIC) has done well in the timing of its stock market moves given the size of its portfolio, said fund managers and analysts on Tuesday.

GIC steadily sold some of its equities from July 2007 until the onset of the global financial crisis last September, thereby cutting its exposure to public equities by over 10 percentage points of its total portfolio and boosting its cash holdings……………….Full Article: Source

GIC fund signals shift to Asia

Posted on 30 September 2009 by VRS  |  Email |Print

From Singapore sovereign wealth fund GIC Tuesday signaled it would shift its focus to Asia after its portfolio shed 20 percent following heavy losses on Western investments during the global meltdown.

The Government of Singapore Investment Corp (GIC), which invests the city-state’s massive foreign reserves, did not provide the current value of its portfolio or how much it actually lost during the period……………….Full Article: Source

Cash rich Singapore fund heads to emerging markets

Posted on 30 September 2009 by VRS  |  Email |Print

From Singapore’s GIC, the world’s fourth-biggest sovereign wealth fund, is ready to use its bigger cash pile to buy into emerging markets and alternative investments such as real estate and natural resources, but warned that bonds may not be safe due to inflation risks.

The strategy of the Government of Singapore Investment Corporation, the larger of the city-state’s two wealth funds with an estimated $200 billion or more, appears to be evolving as it cut its equity and bond holdings to increase its exposure to alternatives like property and resources……………….Full Article: Source

QIA may increase stake in VW after Porsche merger

Posted on 30 September 2009 by VRS  |  Email |Print

From Bloomberg: Qatar wants to increase its stake in Volkswagen AG after the German carmaker completes its takeover of Porsche SE, an executive at the emirate’s investment agency board said.

“If they give me the opportunity, I will,” Hussain Al- Abdulla, a Qatar Investment Authority board member, said today in an interview at the Doha Business Roundtable, when asked whether the emirate plans to expand its holding after the German manufacturers combine……………….Full Article: Source

Utilities, sovereign wealth new investors in N.Sea

Posted on 30 September 2009 by VRS  |  Email |Print

From Reuters: A new breed of investor is moving into the North Sea, taking over from many of the oil majors that have dominated the region since large-scale commercial oil and gas production began in the 1960s.

European utilities and companies backed by sovereign wealth funds — all with good cash flow and the need to secure energy reserves — have begun scooping up oil and gas assets……………….Full Article: Source

Sources of SWF in Norway

Posted on 30 September 2009 by VRS  |  Email |Print

From The “Norwegian Government Pension Fund – Global” (GPFG) manages the oil and gas revenues of the state of Norway. It was established in 1990 as the “Norwegian Government Petroleum Fund” but changed its name in January 2006 (Eriksen 2006).
The fund’s official mandate is “to support government saving to finance pension expenditure and underpin long-term considerations in the use of Norway’s petroleum revenue” (NBIM 2009)……………….Full Article: Source

Minister praises Mumtalakat role

Posted on 30 September 2009 by VRS  |  Email |Print

From Industry and Commerce Minister Dr Hassan Fakhro yesterday received Mumtalakat chief executive Talal Alzain and praised the role of the firm to boost administrative competence and productivity in government-owned companies.
He expressed his confidence in the ability of Mumtalakat to ensure the best use of government-owned properties and boost the GDP, hailing its drive to bolster the national economy and encourage investments……………….Full Article: Source

Korean fund set to swoop on HSBC tower

Posted on 30 September 2009 by VRS  |  Email |Print

From South Korea’s $200 billion (£125 billion) state pension fund would be “interested” in buying the Canary Wharf headquarters of HSBC if the bank was to put the skyscraper up for sale.

The giant government-run fund has already declared plans for a global property-buying spree and said that the tower was among a number of trophy assets that it was considering buying in London, Paris, New York, Hong Kong and Tokyo……………….Full Article: Source

Lawmakers question Permanent Fund investment strategy

Posted on 30 September 2009 by VRS  |  Email |Print

From Alaska legislators are continuing to question the Alaska Permanent Fund’s new “leading edge” asset allocation strategy, with leading legislators saying they should have been consulted on such a change.

At a meeting of the Legislative Budget & Audit Committee in Anchorage Monday, top officials with the Alaska Permanent Fund Corporation defended the strategy……………….Full Article: Source

Alaska Airlines offers Permanent Fund dividend sale

Posted on 30 September 2009 by VRS  |  Email |Print

Alaska Airlines launched a Permanent Fund Dividend sale today, with ticket prices as low as $89 for travel to and from Anchorage and Fairbanks, as well as savings on select routes between Alaska and the lower 48 states, Canada, Hawaii and Mexico.

“This sale stretches our customer’s travel budget further and makes travel to the sunny beaches of Mexico and Hawaii even more affordable,” said Bill MacKay, the airline’s senior vice president for the state of Alaska……………….Full Press Release: Source

Gulf states’ sovereign wealth funds lose $350bln

Posted on 29 September 2009 by VRS  |  Email |Print

From Telegraph: Four oil-exporting Gulf states saw their sovereign wealth funds lose $350bn (£220bn) between them last year as the financial crisis hit.
The funds from Saudi Arabia, Kuwait, Qatar and Abu Dhabi saw the value of their assets drop to $1.115 trillion because of the global fall in markets, according to the United Nations’ World Investment Report. ………………..Full Article: Source

Singapore wealth fund GIC recovers more than half of last year’s loss as stocks rebound

Posted on 29 September 2009 by VRS  |  Email |Print

From Singapore state investment company GIC said Tuesday its investments fell more than 20 percent in the 12 months ending March, but have recovered more than half that loss as global stocks surged in recent months.

Government of Singapore Investment Corp., known as GIC, said in an annual report that the loss during its last fiscal year pulled down the fund’s 20-year nominal annual rate of return in Singapore dollar terms to 4.4 percent from 5.8 percent…………………Full Article: Source

Singapore GIC’s portfolio at a glance

Posted on 29 September 2009 by VRS  |  Email |Print

From Reuters: The Government of Singapore Investment Corp’s (GIC) annual report on Tuesday showed its portfolio shrank by over 20 percent in the 12 months to March 2009.

The fund raised its exposure to alternative investments but said it was now bearish on bonds. It also indicated that it will reduce its huge cash holdings…………………Full Article: Source

Wealth fund GIC looks to Asia

Posted on 29 September 2009 by VRS  |  Email |Print

From Reuters: The Government of Singapore Investment Corp, or GIC, the larger of Singapore’s two wealth funds with an estimated $200 billion or more in assets, said it was bearish on bonds but cautiously optimistic about prospects for emerging markets and Asia.

GIC’s portfolio shrank by over 20 percent in the 12 months to March 2009, pushing its average nominal returns in dollar terms for the 20 years to March 31 down to 5.7 percent, from 7.8 percent a year ago, the Singapore fund said in its annual report…………………Full Article: Source

Singapore GIC lost around S$59 bln in FY09

Posted on 29 September 2009 by VRS  |  Email |Print

From Dow Jones: Government of Singapore Investment Corp. suffered a loss around S$59 billion in the fiscal year ended March, making it one of the worst years for the sovereign wealth fund since it was established in 1981, a person familiar with the situation said Tuesday.

“The equities investments suffered the most, followed by falls in property valuations. It was one of the worst years ever,” the person told Dow Jones Newswires…………………Full Article: Source

GIC says investments drop 20 pct, UBS stake has loss

Posted on 29 September 2009 by VRS  |  Email |Print

From Bloomberg: Government of Singapore Investment Corp.’s assets fell more than 20 percent in the year to March 31 as the collapse in financial markets drove down the value of its stake in UBS AG.

GIC, manager of more than $100 billion of the city’s foreign reserves, said it continues to lose money on the holding in UBS, though it has made a profit on its investment in Citigroup Inc…………………Full Article: Source

State Oil Fund of Azerbaijan declares bargain-sale of foreign investors’ property

Posted on 29 September 2009 by VRS  |  Email |Print

From The State Oil Fund of Azerbaijan (SOFAZ) has announced sales of assets it is transferred in accordance with production sharing agreements (PSAs).

The Fund reports that disassembled old pipes with diameter 1 220 mm, pipes of other types, steel beams, beam channels, details used in drilling works, spare parts, insulators and other materials were set out for sales…………………Full Article: Source

Kuwaiti wealth fund struggles to refinance Aston Martin debt

Posted on 29 September 2009 by VRS  |  Email |Print

From Warwickshire-based luxury car firm Aston Martin is at the centre of new fears as the Kuwaiti wealth fund that owns half of the car firm admitted it was struggling to refinance its debt.

Reports said Kuwait’s Investment Dar had confirmed it had signed an agreement with creditors and investors to freeze claims and provide more time to agree a deal…………………Full Article: Source

CIC agrees to invest US$1 bln in Oaktree Capital

Posted on 29 September 2009 by VRS  |  Email |Print

From China Knowledge: China Investment Corp, China’s sovereign wealth fund, has agreed to invest approximately US$1 billion in Oaktree Capital Management LP, a Los Angeles-based investment firm, the Wall Street Journal reported.

Oaktree, which was founded in 1995 in Los Angeles and New York by a team of debt investors including Howard Marks, is expected to use the funds to invest in distressed debt and other fixed income assets…………………Full Article: Source

China Huijin completes scheme to buy big bank shares

Posted on 29 September 2009 by VRS  |  Email |Print

From Reuters: Central Huijin, an arm of China’s sovereign wealth fund, has completed a year-long scheme to buy yuan-denominated A shares in the country’s three biggest listed state-owned banks, the lenders said over the weekend.

Huijin introduced the scheme on Sept. 23, 2008, in a bid to bolster share prices and stem stock market slides during the worst of the global financial crisis…………………Full Article: Source

Central Huijin raises stake in BOC to 67.53 pct

Posted on 29 September 2009 by VRS  |  Email |Print

From China Knowledge: Bank of China said that Central Huijin Investment Co Ltd,, a wholly-owned subsidiary of China’s sovereign wealth fund China Investment Corp, has purchased an additional 81.61 million A shares, or 0.03% of the company’s total outstanding shares, as of Sep. 22, 2009, sources reported.

Central Huijin now holds around 171.41 billion A shares of BOC in total, accounting for 67.53% of the lender’s total capital, according to a statement filed with the Shanghai Stock Exchange…………………Full Article: Source

China AgBank says location, timing of IPO undecided

Posted on 29 September 2009 by VRS  |  Email |Print

From Reuters: Agricultural Bank of China, the only big state lender that has yet to float shares, has not decided when and where to hold its long-awaited initial public offering (IPO). Central Huijin, the domestic investment arm of China’s sovereign wealth fund, owns half of AgBank following a $19 billion capital injection last November.

The comments by Pan Gongsheng, vice-president in charge of AgBank’s restructuring and listing, came in response to a report by the South China Morning Post on Monday, which said the bank planned to list shares only in Shanghai and not in Hong Kong…………………Full Article: Source

Most global estimates about size of SWFs are inaccurate

Posted on 28 September 2009 by VRS  |  Email |Print

From Sovereign wealth funds (SWFs) are keeping the world guessing on the exact size of their financial resources as most of them are still resisting growing global pressure to become more transparent, according to a Saudi official.

While the IMF and numerous other sources have tried to provide rough figures about the assets of those enormous investment vehicles, their estimates have remained mostly inaccurate, said Majed Abdullah Al Muneef, an advisor at the Saudi Ministry of Petroleum and Mineral Resources…………………Full Article: Source

China’s sovereign fund to invest $1 bln in L.A. firm

Posted on 28 September 2009 by VRS  |  Email |Print

From China’s sovereign-wealth fund, China Investment Corp., has committed to invest about $1 billion with Los Angeles-based Oaktree Capital Management LP, according to a media report Saturday.

Oaktree is expected to invest CIC’s money in distressed debt and other fixed-income assets, The Wall Street Journal reported in its online edition, citing unnamed sources…………………Full Article: Source

China fund increases stakes in 2 state banks

Posted on 28 September 2009 by VRS  |  Email |Print

From Dow Jones: Central Huijin Investment Ltd., an arm of China’s US$300 billion sovereign-wealth fund, has completed a plan to increase its shareholding in two of the nation’s largest state-run banks, the lenders said Saturday.

Huijin launched the program to increase its ownership in three of China’s biggest banks with direct purchases on the market a year ago, heeding the government’s call to halt its plummeting stock market at that time…………………Full Article (Subscription Required): Source

Bahrain SWF chief tops inaugural Power List

Posted on 28 September 2009 by VRS  |  Email |Print

From The chief executive of Bahrain’s $10bn sovereign wealth fund has topped the inaugural Arabian Business Bahrain Power List.

Talal Al Zain is CEO of Mumtalakat, which holds stakes in everything from national carrier Gulf Air, to Bahrain International Circuit, and telecoms operator Batelco. It also has significant holdings in National Bank of Bahrain, McLaren Group, and a number of real estate concerns…………………Full Article: Source

Temasek exits Fame India

Posted on 28 September 2009 by VRS  |  Email |Print

From Singapore’s sovereign wealth fund Temasek Holdings’ has exited its investment in multiplex chain Fame India in two bulk deals on Friday.

The firm sold its 13.5% stake in Fame for a little more than Rs 14 crore to Gulshan Investment and Shail Investments. The identity of these two firms is not known…………………Full Article: Source

Exhibitor Fame India surges on block deal; Temasek has sold

Posted on 28 September 2009 by VRS  |  Email |Print

From Exhibitor Fame India (Formerly Shringar Cinemas Ltd) rose 4.95% to close at Rs30.75 even as the benchmark Sensex closed down 0.53%, or 88 points from its previous close on the Bombay Stock Exchange.
The Fame India scrip touched an intra-day high of Rs30.9, following a block deal for 46.95 lakh shares, representing a 13.5% stake in the company…………………Full Article: Source

Alaska dividend applicants increase again

Posted on 28 September 2009 by VRS  |  Email |Print

From Alaska Permanent Fund dividend applications rose this year and may again be outpacing the state’s population growth.
Roughly 628,000 people are eligible for a dividend this year, 12,285 more people than received a dividend last year…………………Full Article: Source

China’s CIC may launch domestic rare earth company

Posted on 25 September 2009 by VRS  |  Email |Print

From Reuters: China’s sovereign wealth fund, fresh from a series of investments in the global commodities sector, may launch its own domestic rare earth firm, a banking source and newspaper report said on Thursday.

China Investment Corp (CIC) could do so through Jianyin Investment, its wholly-owned domestic industrial investment arm, said the source, who is familiar with CIC. The $298 billion sovereign wealth fund’s primary focus is on foreign investments…………………Full Article: Source

CIC ramps up position in commodities

Posted on 25 September 2009 by VRS  |  Email |Print

From China Investment Corp has bought US$1.9 billion of debt from Indonesia’s PT Bumi Resources to ramp up its position in the commodities sector. Bumi said it will use the funds for debt restructuring and capital spending.

Jakarta-based Bumi is Indonesia’s largest producer and one of the world’s biggest exporters of thermal coal…………………Full Article: Source

SWF spends billions to diversify into resources firms

Posted on 25 September 2009 by VRS  |  Email |Print

From China Investment Corp (CIC), the nation’s sovereign wealth fund, has agreed to spend $2.75 billion to invest in commodities companies so far this week in order to spread out its holdings, analysts said on Thursday.

The Jakarta-based coal producer PT Bumi Resources announced yesterday that CIC has invested $1.9 billion in Bumi in the form of a debt-like plan…………………Full Article: Source

Indonesia Stock Exchange examines Bumi deal with Chinese SWF

Posted on 25 September 2009 by VRS  |  Email |Print

From The Indonesia Stock Exchange is looking into the $1.9 billion financing deal between PT Bumi Resources, the country’s largest coal producer, and a Chinese sovereign wealth fund that would require the Bakrie group company to ultimately pay 19 percent interest at maturity, an exchange director said on Thursday.

Eddy Sugito, a director of the exchange, known as the IDX, said the bourse was seeking an explanation of the phrase “debt-like instruments,” which was how Bumi described the nature of the investment being purchased by China Investment Corp., the sovereign wealth fund…………………Full Article: Source

ADIA files claim against Lehman

Posted on 25 September 2009 by VRS  |  Email |Print

From The Abu Dhabi Investment Authority (ADIA) is among a group of international creditors to file claims against the collapsed US investment bank Lehman Brothers.

ADIA is seeking payments from US$610 million (Dh2.24 billion) it held in commercial paper purchased in the weeks before Lehman’s failure. The debt, which yielded around 2.9 per cent, was due to mature just weeks after Lehman’s bankruptcy filing…………………Full Article: Source

Norway’s dirty little secrets

Posted on 25 September 2009 by VRS  |  Email |Print

From Guardian: Norway is no ethical leader – its pension fund, oil policy, environmental record and arms exports give the lie to its image.
Can the European left look to Norway to push the world’s powerful nations to act morally abroad?………………..Full Article: Source

Differing strategic visions behind Temasek split - Chip Goodyear

Posted on 25 September 2009 by VRS  |  Email |Print

From Former BHP Billiton CEO Charles “Chip” Goodyear confirmed that a divergence in strategy was behind his shock departure from Singapore sovereign wealth fund Temasek Holdings two months ago.

“Differences of strategic vision is the best way to put it,” Goodyear answered calmly, in response to a question in front of an audience of 300 investors at a conference in Hong Kong…………………Full Article: Source

September 2009
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