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Sovereign Wealth Funds Briefing - Archive | August, 2014

Mubadala Trafigura’s Brazil iron ore terminal will start this year

Posted on 19 August 2014 by VRS  |  Email |Print

Trading firm Trafigura and Abu Dhabi sovereign wealth fund Mubadala said that their Brazilian port for exporting iron ore will start this year, in response to a steelmaker with a contract to use the port that said the opening could be pushed back to 2015. Mr Eugenio Mamede chief operating officer for the port, said that Porto Sudeste is on track to start operation in the beginning of the last quarter of 2014.
Trafigura owns a controlling stake in the port with Abu Dhabi government investment fund Mubadala Development Company. The export terminal located in Rio de Janeiro state will be able to handle 50 million tonnes of iron ore per year, and could expand to 100 million tonnes………………………………………..Full Article: Source

Arab investors to pump huge funds to Europe

Posted on 19 August 2014 by VRS  |  Email |Print

Arab investors are increasingly looking to the UK and continental Europe’s commercial real estate markets to pump their huge funds. Europe is the preferred target of Arab investors with 80 percent of the expected $180bn Arab investment flowing in to UK and Europe over the next 10 years. In the UK, London is the preferred destination.
According to the Arab news portal, the Middle East Sovereign Wealth Funds (SWFs), which makes up 35 percent of SWFs assets under management are among the world’s largest source of capital………………………………………..Full Article: Source

China faces buyer’s remorse in Canada’s oil patch

Posted on 19 August 2014 by VRS  |  Email |Print

Chinese companies have shelled out more than $30-billion in Canada’s energy industry, but many of those investments have been hit with operational problems, delays and weak returns, leading to growing impatience in some quarters in China.
PetroChina Co. Ltd., Sinopec, CNOOC Ltd., China Investment Corp. and other state-owned enterprises made a raft of big bets on oil sands projects, shale developments and domestic companies since 2005 and many have yet to pay off. There is “absolutely” some buyer’s remorse stemming from many of China’s big-ticket acquisitions, said Samir Kayande, vice-president of energy research at ITG Investment Research, who has done intensive studies of some of the deals………………………………………..Full Article: Source

Bengal Finmin meets GIC top brass to attract investment

Posted on 19 August 2014 by VRS  |  Email |Print

West Bengal Finance Minister Amit Mitra today met the top brass of Singapore-based global investment firm GIC to attract investments. A West Bengal government delegation headed by Chief Minister Mamata Banerjee is on a 5-day tour to Singapore to attract investment for the state. GIC is one of the world’s largest global investors.
“We met the top brass of GIC and the meeting is fruitful,” Mitra told a TV channel over phone from Singapore. He said the GIC team consisted of 11 members, including managing director, analysts, PE fund managers, economists among others while from the state government several officials including the Chief Secretary was present………………………………………..Full Article: Source

Hopeful of Singapore’s GIC Group investing in Bengal: Mitra

Posted on 19 August 2014 by VRS  |  Email |Print

After holding a “fruitful” meeting with Singapore’s leading investment fund - the GIC Group, West Bengal Finance Minister Amit Mitra on Monday exuded confidence of securing big ticket investment for the state. Led by Chief Minister Mamata Banerjee, a delegation of ministers, bureaucrats and entrepreneurs are camping in the city state scouting for investment.
“Quite aware of Bengal and looking at the list of those who are investing in our state, they ended the meeting with a positive intent. The biggest thing is they have asked us to send them projects and if they found them bankable, they will invest,” Mitra said after holding a meeting with GIC representatives………………………………………..Full Article: Source

Norway SWF Urged to Upgrade Oversight Before Diversifying

Posted on 19 August 2014 by VRS  |  Email |Print

The Labor Party in Norway has called for the $880 billion Government Pension Fund—Global to up its governance game before moving into private equity and infrastructure. Norway’s biggest political party has challenged the country’s $880 billion sovereign wealth fund to improve its governance before hiking exposure to riskier assets.
The Labor Party’s concerns centre on the fund’s purchase of a stake in Formula One prior to its planned IPO, initially planned for 2012. However, the listing was subsequently cancelled, leaving the Norway Government Pension Fund—Global with a private equity holding that its investment rules do not permit it to own………………………………………..Full Article: Source

Norway Fund Told to Forget Riskier Assets Until Oversight Fixed

Posted on 18 August 2014 by VRS  |  Email |Print

Norway’s $880 billion sovereign wealth fund can’t be allowed to chase riskier assets until lawmakers fix the oversight gaps that emerged in connection with its purchase of Formula One shares, according to the biggest party in the nation’s parliament.
“The Formula One case was quite an eye-opening experience for politicians who are dealing with issues regarding this fund,” Marianne Marthinsen, the Labor Party’s finance spokeswoman, said in an interview in Oslo on Friday. “It illustrates that we need a strong system of monitoring.”……………………………………….Full Article: Source

PE Has Lowest Return Among Alternative Assets For Korea Investment Corp.

Posted on 18 August 2014 by VRS  |  Email |Print

Private equity has generated an 8.6% return during 2013 for Korea Investment Corp.the lowest among all alternative asset classes that the Korean sovereign wealth fund invests in, KIC’s most recent annual report shows. The $72-billion fund is the latest sovereign wealth fund to release annual reports this month, following its counterparts in China and Singapore. Those reports offer a rare window into performance of historically secretive sovereign wealth funds, which are increasingly flexing their muscle in the private equity industry both as fund investors and as direct deal makers.
KIC got into private equity investing in 2009, and in 2010, entered real estate and hedge funds. According to its annual report, private equity has generated lower returns than the other two asset classes, on all three metrics that KIC uses to measure returns. For 2013, private equity returned 8.6%, compared with 9% and 9.5% for hedge funds and real estate, respectively………………………………………..Full Article: Source

Singapore’s investment funds blaze ecommerce trail

Posted on 18 August 2014 by VRS  |  Email |Print

Singapore’s two investment funds, GIC and Temasek, have emerged as the biggest state-backed investors in technology, telecoms and ecommerce in the past 12 months, ploughing a combined $3bn into the sectors. That dwarfs investment by their global peers, which have committed about $200m, says the Sovereign Wealth Center, which tracks sovereign wealth fund activity globally.
Moves include GIC’s investment last month in Flipkart, India’s largest eretailer, and Temasek’s purchase in May of a stake in China’s JD.com, an Amazon-like ecommerce site that competes head-to-head with Alibaba………………………………………..Full Article: Source

Temasek: Africa’s Emerging Economic Ally

Posted on 18 August 2014 by VRS  |  Email |Print

The current exponential growth being witnessed across African economies has got investors worldwide seeking to take part in the continent’s emergence. As a result, the African economic landscape is dotted with more and more wealth funds and investment companies, one of which is Temasek Holdings, the Singaporean sovereign wealth fund.
Incorporated by the government in 1974, ownership and management of the government’s investments on a commercial basis were transferred to Temasek to allow the government prioritize policy making. Among these investments were the Economic Development Board’s stakes in local and foreign private investment sectors and the companies acquired or established by the government………………………………………..Full Article: Source

Temasek diversifies China bets

Posted on 18 August 2014 by VRS  |  Email |Print

Temasek Holdings has bought into two United States-listed Chinese technology firms, signalling its intent to continue its diversification away from bank holdings. Temasek, directly or through its units, bought 602,139 American Depositary Receipts (ADR) of China’s second-largest e-commerce site JD.com with a market value of US$17.2 million (S$21.4 million), showed a filing with the US Securities and Exchange Commission on Thursday.
It also purchased a net 603,764 ADRs in security software maker Cheetah Mobile, valued at US$12.8 million. Both companies were listed in May. The transactions help Singapore’s investment firm extend its reach in the world’s second-largest economy and ease its reliance on the nations’ banks. While two of Temasek’s six-biggest listed global holdings by market value are still Chinese lenders, it also acquired stakes in consumer-related firms this year and last………………………………………..Full Article: Source

Singapore’s GIC ramps up Brazil assets

Posted on 18 August 2014 by VRS  |  Email |Print

The Government of Singapore Investment Corporation (GIC) has acquired an 18.5% stake in Brazilian education company Abril Educacao for an undisclosed price, in its latest move to increase exposure to Latin American assets. Based on the closing share price of Abril, a leading player in the Brazilian primary and secondary education market, on August 14, the stake was worth about US$265 million.
Abril employs about 7,000 staff and operates schools in Sao Paulo and Rio de Janeiro, as well as publishing textbooks and providing learning systems. It focusses on the so-called K-12 segment, which covers primary and secondary education………………………………………..Full Article: Source

SOFAZ to invest in China’s market

Posted on 18 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 said. 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………………………………………..Full Article: Source

Singapore’s GIC takes 18.5% stake in Brazil education firm

Posted on 15 August 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC said on Friday it has acquired an 18.5 per cent stake in Brazilian education services company Abril Educacao. GIC did not say how much it paid for the stake in Abril, a leading player in Brazil’s primary and secondary education market.
Based on Abril’s latest closing share price, the stake is worth about US$265 million (S$330 million). Funds managed by Brazilian buyout firm Tarpon Investimentos in June also took a significant stake in Abril……………………………………….Full Article: Source

Temasek acquires US-listed stocks in two Chinese firms

Posted on 15 August 2014 by VRS  |  Email |Print

Singapore investment company Temasek Holdings has bought US-listed stocks in Chinese consumer and technology firm JD.com Inc and security software maker Cheetah Mobile in the second quarter, according to a Bloomberg report.
Citing a filing with the US Securities and Exchange Commission, Temasek - directly or via its units - acquired 602,139 American Depositary Receipts (ADRs) of e-commerce site JD.com with a market value of US$17.2 million, Bloomberg said. It also purchased a net 603,764 ADRs in Cheetah Mobile, worth US$12.8 million………………………………………..Full Article: Source

Temasek Adds China Holdings With JD.com, Cheetah Stakes

Posted on 15 August 2014 by VRS  |  Email |Print

Temasek Holdings Pte, Singapore’s state-owned investment firm, purchased U.S.-listed stocks in Chinese technology and consumer firms backed by the country’s billionaires as it diversifies away from bank holdings.
Temasek, directly or through its units, bought 602,139 American depositary receipts of China’s second-largest e-commerce site JD.com Inc. (JD:US) with a market value of $17.2 million, according to a filing yesterday with the U.S. Securities and Exchange Commission………………………………………..Full Article: Source

Khazanah’s offer a good exit oppoturnity: Analyst

Posted on 15 August 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd’s bid to buy up shares in troubled national carrier Malaysian Airline System Bhd (MAS) it does not already own for 27 sen a piece represents a good exit opportunity for minority shareholders, analysts said.
Major shareholder Khazanah last Friday, announced that it plans to take MAS private in a bid to restructure the company away from the public eye. It had said that the de-listing is the first part of a detailed restructuring plan likely to be finalised by the end of the month………………………………………..Full Article: Source

Super Fund building in lockdown as Gaza protest escalates

Posted on 15 August 2014 by VRS  |  Email |Print

Police are guarding the New Zealand Superannuation Fund building in downtown Auckland as pro-Palestinian protesters gather outside. ONE News reporter Helen Castles understands six activists are inside and have chained themselves to an office on level 12.
Staff have been told the building is in lockdown. The protesters are chanting ‘Occupy’ and ‘Free Palestine’. Earlier this week there were calls for the Super Fund to drop its shareholding in an Israeli chemical company that produces a lethal chemical allegedly used in fighting in Gaza………………………………………..Full Article: Source

Balance of Timor-Leste Petroleum Fund at US$16.6 billion in June

Posted on 15 August 2014 by VRS  |  Email |Print

The Timor-Leste Petroleum Fund had a balance of US$16.6 billion at the end of June, compared to US$15.7 billion at the end of last March, the Central Bank of Timor-Leste announced on Wednesday in Dili. A Central Bank press release concerning the second quarter of the year indicated that gross capital inflows rose to US$1.084 billion, of which nearly US$700 million was due to royalty payments from the National Petroleum Authority.
The Fund’s return on investments was about US$413 million, with US$119.45 million referring to the entry of dividends and US$311.60 million to interest, as a consequence of changes affecting the market value of securities held on 30 June 2014, states the text………………………………………..Full Article: Source

Tanzania sets up special unit to scrutinise gas revenues and wealth fund

Posted on 15 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

Norway defends how its wealth fund is run

Posted on 14 August 2014 by VRS  |  Email |Print

Norway Finance Minister Siv Jensen has said that a probe into the world’s biggest sovereign wealth fund’s purchase of Formula One shares shouldn’t be used as an excuse to tighten oversight of the investor. “We do have control mechanisms to oversee that everything is done in a proper manner - the control board is doing their job,” Ms Jensen said. “Governing of the bank and of the fund has served us very well.”
The US$890 billion fund, which is managed by the central bank, had to defend itself earlier this year after lawmakers asked if it had exceeded its investment remit when it bought a stake in the car racing group ahead of a planned initial public offering………………………………………..Full Article: Source

CIC Set to be ‘Picky’ and ‘Stingy’ with Asset Managers, Says Consultant

Posted on 14 August 2014 by VRS  |  Email |Print

Asset managers shouldn’t expect ‘easy money’ from China Investment Corp., even though the world’s fourth largest sovereign wealth fund last week reported a rise in net profit and a healthy increase in its top-line assets that grew to $652 billion in 2013 from $575 billion.
The giant sovereign wealth fund, which owns private equity firm Citic Capital, said its net profit increased to $86.9 million in 2013 from $77.7 billion a year before; it also reported a 9.3% return on its overseas investments in 2013, a decline from 10.6% in 2012. But China-based consulting firm Z-Ben Advisors cautions that the general “good news…may not be felt by asset managers attempting to win their mandates.”……………………………………….Full Article: Source

CIC Pays ‘Astonishingly Low’ Money Management Fees – Z-Ben

Posted on 14 August 2014 by VRS  |  Email |Print

Money managers hoping to win a coveted contract to manage a slice of China’s sovereign wealth have their work cut out for them. China Investment Corp., one of the largest sovereign wealth funds in the world with about $600 billion under management, on Friday reported a 9.3% return on its overseas investments in 2013, compared with a 10.6% return in 2012.
Consulting firm Z-Ben Advisors has drilled into the report and found some depressing news for money managers: the fees CIC is paying for its money to be managed are “astonishingly low.”……………………………………….Full Article: Source

IMF Urges SWF for China’s Casino City

Posted on 14 August 2014 by VRS  |  Email |Print

Macau has been urged to create a sovereign wealth fund (SWF) and invest the billions in profits made from its engorged gambling industry. The International Monetary Fund (IMF) said the explosion of the betting tourism in the Special Administrative Region (SAR) since 2001 meant its government had received huge revenues over the last decade.
“To ensure that public finances remain on a sound footing as the gaming sector matures and the population ages, they recommended the adoption of a medium-term budget framework,” an IMF report on the region said………………………………………..Full Article: Source

Minorities group backs Khazanah plan for MAS

Posted on 14 August 2014 by VRS  |  Email |Print

The Minority Shareholder Watchdog Group (MSWG) has supported Malaysia Airlines’ (MAS) proposed privatisation by Khazanah Nasional Bhd, describing it as a reasonable option for minority shareholders to take their investment out of the ailing national carrier.
MSWG also hopes that those responsible for MAS’ poor financial performance will be made accountable, said its chief executive officer Rita Benoy Bushon. She said Khazanah’s offer price of 27 sen a share to acquire all MAS’ shares is a 12.5 per cent premium over its pre-suspension price of 24 sen last Thursday………………………………………..Full Article: Source

‘Khazanah Able To Rescue MAS’

Posted on 14 August 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd should be given the benefit of engineering the rescue of Malaysia Airlines (MAS), says MIDF Research head Zulkifli Hamzah. He said the delisting of MAS will accord Khazanah greater manoeuvrability to restructure the company and ensure its long-term viability.
Zulkifli also does not expect MAS to be declared bankrupt because of Khazanah’s strong backing. “This has not been attempted before. Thus, the government should be given the benefit of engineering the rescue of MAS, away from the prying eyes of the public, which can be distracting at times………………………………………..Full Article: Source

Will Sovereign Wealth Funds Become Activist Shareholders?

Posted on 14 August 2014 by VRS  |  Email |Print

There are some concerns as to whether Sovereign Wealth Funds (SWFs) will become activist shareholders because of an equivocation of the term “activist”, notes Harvard Law School Forum. June Rhee, Co-editor of HLS Forum on Corporate Governance and Financial Regulation in the recent post dated August 7, 2014 titled: “Sovereign Shareholder Activism: How SWFs Can Engage in Corporate Governance” notes activism is linked to the increasing importance of corporate governance.
The author notes with respect to equity investments in publicly traded firms, there are some concerns that Sovereign Wealth Funds will become ‘activist’ shareholders. The author points out there are primarily two threshold issues that need to be addressed before one develops policy responses to sovereign shareholder activism………………………………………..Full Article: Source

Timor-Leste SWF hits 40% equities allocation

Posted on 13 August 2014 by VRS  |  Email |Print

The Central Bank of Timor-Leste has released the Quarterly Report of the Petroleum Fund of Timor-Leste for the second quarter of 2014, during which period the fund hit its new target of investing 40% of its assets-under-management in equities. The portfolio return in the quarter was 2.66% compared with the benchmark return of 2.73% – meaning that since the fund’s inception nine years ago, overall returns are exactly in line with the benchmark.
Over the quarter, the fund’s capital grew from $15.7 billion to $16.6 billion. Gross cash inflows to the fund from royalties and taxes were $541.3 million, while cash outflows were $3.87 million for direct external and internal management costs………………………………………..Full Article: Source

CVC in talks with Singapore’s GIC over Holcim-Lafarge assets

Posted on 13 August 2014 by VRS  |  Email |Print

Private equity firm CVC is in talks with Singapore’s Government Investment Corporation over possible joint bids for assets of cement firms Holcim and Lafarge, Sky News reported on Tuesday, without naming its sources.
Private equity funds have been queuing up to buy the assets since Holcim of Switzerland and France’s Lafarge announced a merger in April that would create a group with $44 billion in annual sales………………………………………..Full Article: Source

CVC Looks To Cement Deal With Sovereign Funds

Posted on 13 August 2014 by VRS  |  Email |Print

The private equity firm CVC Capital Partners is joining forces with some of the world’s biggest sovereign wealth funds to bid for £4bn of cement assets that would make it a major player in the building materials sector.
Sky News has learnt that CVC is in discussions with Singapore’s Government Investment Corporation (GIC) about a combined offer for a package of businesses being sold by Holcim and Lafarge , the Swiss and French cement giants, as they look to seal a £32bn merger………………………………………..Full Article: Source

China’s sovereign wealth giant seeks overseas investments

Posted on 13 August 2014 by VRS  |  Email |Print

China Investment Corporation (CIC), a sovereign wealth fund responsible for managing the country’s foreign exchange reserves, has vowed to diversify its portfolio. Interest in overseas investment has been on the rise in China, particularly since it became clear that the renminbi is no longer a one-way bet on appreciation.
Last year, CIC’s assets grew to $652 billion (€486.9 billion) from $575 billion and the fund achieved a 9.33% return, according to a fund report published last Friday………………………………………..Full Article: Source

Funds Switch View On China: HKMA

Posted on 13 August 2014 by VRS  |  Email |Print

The unusually large flows have kept the HKMA busy as it has been forced to inject more than 75 billion Hong Kong dollars (US$9.7 billion) into the foreign exchange market in a bid to cool down the local currency, which has been hitting the strong side of the band that it’s allowed to trade in.
The currency peg permits the Hong Kong dollar to trade between HK$7.75 and HK$7.85 to the U.S. dollar. The HKMA buys or sells the local unit whenever it touches either side of the band………………………………………..Full Article: Source

Dr M: Full Khazanah ownership will not revive MAS

Posted on 13 August 2014 by VRS  |  Email |Print

Former Malaysian prime minister Mahathir Mohamad yesterday criticised the takeover of Malaysia Airlines by Khazanah Nasional, the country’s sovereign wealth fund, saying full ownership of the beleaguered carrier was not likely to make a difference.
Last Friday, the state investment agency made an offer to take the airline private by paying 27 sen apiece or some RM1.4 billion (S$547 million) to buy the remaining shares it does not own. In the coming fortnight, it is expected to detail its proposed complete revamp of the airline………………………………………..Full Article: Source

Former PM criticises de-listing of Malaysia Airlines by sovereign wealth fund

Posted on 13 August 2014 by VRS  |  Email |Print

Influential former prime minister Mahathir Mohamad on Tuesday criticised the takeover of crisis-hit Malaysia Airlines by the country’s sovereign wealth fund as a recipe for more losses by the carrier. Sovereign fund Khazanah Nasional, which has controlled the airline for years via a 70 percent ownership stake, said last Friday it plans to buy all remaining shares, de-list the stock, and take the carrier private before undertaking a “complete overhaul”.
The fund acted after the double tragedies of flights MH370 and MH17 pushed Malaysia Airlines (MAS) — which had already been losing money for years — to the financial brink. “Khazanah has been in full control of Malaysia Airlines all this time. And all this time Malaysia Airlines has been bleeding profusely,” Mahathir, prime minister from 1981-2003, wrote on his blog………………………………………..Full Article: Source

NZ Superannuation fund linked to fighting in Gaza

Posted on 13 August 2014 by VRS  |  Email |Print

There are calls for the NZ Superannuation Fund to drop its shareholding in an Israeli chemical company that produces a lethal chemical allegedly used in fighting in Gaza. Labour’s foreign affairs and energy spokesman David Shearer and the Peace Foundation are calling for the NZ Superannuation Fund to immediately drop its shareholding in Israel Chemicals Ltd, a manufacturer of white phosphorus.
NZ Superannuation Fund says they are monitoring the conflict between Israel and Palestine and expect all the companies they invest in to obey international and local laws………………………………………..Full Article: Source

SOFAZ invests over $2 bln in Southern Gas Corridor CJSC

Posted on 13 August 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, an entity that accumulates and manages Azerbaijan’s oil and gas revenues, has invested $2.164 billion in Southern Gas Corridor Closed Joint Stock Company in the long term, SOFAZ said.
The investment was made by purchasing the bonds of Southern Gas Corridor CJSC, which issued bonds worth $917,320,800 and $1,246,355,000 within two emissions. In late July, the new issues of the Southern Gas Corridor’s bonds amounting $1.2 billion was put for mass sale at Baku Stock Exchange (BSE), and InvestAZ Company was chosen as the broker of the acquirer………………………………………..Full Article: Source

Norway oil fund boosts active ownership

Posted on 13 August 2014 by VRS  |  Email |Print

Norway’s huge sovereign wealth fund that’s fueled by oil revenues has taken another step towards what it calls its “active ownership” in publicly traded companies. Its latest step also addresses critics looking for more openness by fund managers.
The Financial Times reported last week that the fund’s decision to reveal in advance how it will vote on key issues at many companies is likely to also boost shareholder activism in Europe. Thomas Sevang, communications director for the fund, told newspaper Aftenposten that revealing how it will vote ahead of a company’s annual meeting is aimed at “increasing transparency around its active ownership.”……………………………………….Full Article: Source

Norwegian Sovereign Wealth Fund Keeps Diversifying Portfolio

Posted on 13 August 2014 by VRS  |  Email |Print

The Norwegian sovereign wealth fund invested in real estate in London, buying a 343 million-pound asset in the Mayfair district. According to Norges Bank Investment Management, the fund bought a 57.8% share in estate between Regent Street and Bond Street from the Church Commissioners for England.
‘The consideration is net of the fund’s £36.1 million share of total existing debt. The Crown Estate purchased a 6.4 percent stake at the same time for £38 million. Contracts were completed on 8 August 2014,’ reads a note released on Sunday………………………………………..Full Article: Source

NP’s Nordic model dream just a fantasy

Posted on 13 August 2014 by VRS  |  Email |Print

It is true that Norway is a bit more like the socialist paradise that the Scottish Nationalists imagine. But only a bit. Norway has donned its own version of a golden straitjacket by ensuring that it puts its oil wealth in a gigantic sovereign wealth fund (valued at about £508 billion) rather than spending it on infrastructure or welfare.
Norway is opening its welfare-state to welfare entrepreneurs: the new hospital in Oslo is being built with private money. It is also doing everything it can to promote private-sector entrepreneurs: private companies are selling Norway’s oil extraction skills across the world………………………………………..Full Article: Source

Nigeria’s Sovereign Wealth Releases Fund For $726m Niger Bridge

Posted on 13 August 2014 by VRS  |  Email |Print

Nigeria Sovereign Investment Authority (NSIA), managers of the nation’s sovereign fund, told BusinessDay that it will release the fund for the construction of the second River Niger Bridge. This fund serves as part of NSIA equity stake in the construction of the bridge.
“We are about to pay Julius Berger for the early works of the bridge,” Managing Director NSIA, Uche Orji told BusinessDay. NSIA has three funds that guide its investment activities; Nigeria Infrastructure Fund which it allocates 40 percent of its assets, Stabilization Fund (20 percent) and future generation fund (40 percent)………………………………………..Full Article: Source

China’s sovereign fund CIC in talks to buy aircraft lessor Avolon - sources

Posted on 12 August 2014 by VRS  |  Email |Print

China’s $653 billion (£388.94 billion) sovereign wealth fund, China Investment Corp (CIC), is in talks to buy Dublin-based aircraft leasing firm Avolon for $4 billion to $5 billion including debt, according to people familiar with the matter.
CIC is teamed up with Aviation Industry Corporation of China (AVIC), a state-owned aerospace and defence company, in its bid for Avolon, which provides aircraft leasing and lease management services to airlines and aircraft investors, one of the people said……………………………………Full Article: Source

With Sovereign Wealth Fund, It’s Necessary to Take Long View

Posted on 12 August 2014 by VRS  |  Email |Print

China Investment Corp. (CIC), the country’s sovereign wealth fund, reported a 9.33 percent return on its overseas investments in 2013. The figure, reported on August 8, is slightly lower than the previous year’s 10.6 percent.
The cumulative annualized rate of return for the overseas portfolio since it was established in 2007 is 5.7 percent, compared with 5.02 percent in 2012. Ding Xuedong, CIC’s chairman and CEO, said the figure would be higher than 6 percent if investments in the first half of this year were counted……………………………………Full Article: Source

Controversial 1MDB’s IPO delay

Posted on 12 August 2014 by VRS  |  Email |Print

1MALAYSIA Development Bhd’s (1MDB) plans to float its energy unit, 1MDB Power, in the second half of this year may be postponed to early 2015 as the sovereign wealth fund has to make adjustments to its financial books, analysts said.
They said the initial public offering (IPO), targeted to raise US$3 billion (RM9.6 billion), has been put on hold while 1MDB clears some issues with Maybank Invesment Bank Bhd (MIBB), one of its listing advisers. 1MDB officials have declined to comment on the matter. At US$3 billion, the planned IPO was set to become Malaysia’s second-largest public offer after Felda Global Ventures Holdings Bhd’s RM10 billion IPO in June 2012……………………………………Full Article: Source

Angola SWF joins London-based international forum

Posted on 12 August 2014 by VRS  |  Email |Print

Angola’s sovereign wealth fund, the Fundo Soberano de Angola (FSDEA), has become a member of the International Forum of Sovereign Wealth Funds (IFSWF), the international body for sovereign investors, which relocated from Washington, DC, to London last month.
The FSDEA has endorsed the IFSWF’s voluntary code of conduct, the Santiago Principles, the forum said. FSDEA was established in 2012 with a seed capital of $5 billion, and a mandate to invest Angolan surplus revenues from hydrocarbons “to promote growth, prosperity and social and economic development across Angola”……………………………………Full Article: Source

Norway’s Wealth Fund Buys $576 Million of Mayfair Area

Posted on 12 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, bought a stake in an estate in London’s Mayfair district for 343 million pounds ($576 million), expanding its property holdings in the U.K. capital.
The fund bought a 57.8 percent share in the 4-acre (1.6-hectare) Pollen Estate between Regent Street and Bond Street from the Church Commissioners for England, Oslo-based Norges Bank Investment Management said today. Separately, the Crown Estate acquired a 6.4 percent stake for 38 million pounds……………………………………Full Article: Source

MSCI supported assets of Azerbaijan’s Oil Fund

Posted on 12 August 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) received support of its assets’ cost from MSCI Inc., international analytical company. According to Russian sources, decision of MSCI Inc. to keep shares of Sberbank and VTB Bank during calculation of MSCI Russia stock index resulted in an increase of prices for shares of both banks.
Thus, today in trading at Moscow’s exchange Sberbank’s shares rose in price by 3.49% (up to 73.17 rubles for a share) and VTB shares – by 4.29% (up to 3.9 kopeck for a share)……………………………………Full Article: Source

Alaska Permanent Fund tops $50 billion mark, returns 15.5% for year

Posted on 12 August 2014 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, ended the fiscal year above $50 billion for the first time with a preliminary return of 15.5% for fiscal 2014, vs. 15.7% for its composite benchmark. The sovereign wealth fund reported $51.2 billion in total assets for the fiscal year that ended June 30, up $6.3 billion over the closing value for the prior fiscal year.
Returns for the $21 billion equity portfolios drove performance. The U.S. equity portfolio had the highest return at 27%, global equities returned 25% and the non-U.S. equity portfolio returned 20.2%……………………………………Full Article: Source

SWFs sidestep fund managers with more direct deals

Posted on 12 August 2014 by VRS  |  Email |Print

The world’s sovereign wealth funds (SWFs) are allocating the highest volume of assets via direct deals and co-investing since the global financial crisis, research showed, as the mega-rich institutional investors increasingly bypassed fund managers.
A report from the SWF Institute showed that direct deals and transactions by SWFs topped US$50.02 billion in value during the first half of 2014, or 23.1% higher than the equivalent period a year earlier. This was the highest first half on record since the first six months of 2008, which yielded $51.05 billion worth of direct investment, much of which was attributable to banking bailouts, the SWF Institute said……………………………………Full Article: Source

Mega Financial attracts interest of sovereign funds

Posted on 12 August 2014 by VRS  |  Email |Print

Several foreign sovereign funds have voiced an interest in investing in Mega Financial Holding Co, attracted by the state-run conglomerate’s stable profitability, company chairman Mckinney Tsai said.
Sovereign funds from Canada, Singapore, Norway, Malaysia and Abu Dhabi have all expressed an interest, with some having paid three visits, Tsai said. That would give the bank-focused group the necessary capital to acquire peers at home and abroad, in line with its aim to grow into a regional player, Tsai said……………………………………Full Article: Source

Sovereign wealth fund could help Macao overcome gambling dependency, IMF says

Posted on 11 August 2014 by VRS  |  Email |Print

Central bank could manage new sovereign wealth fund as Macao authorities seek higher return on booming reserves; IMF encourages idea in staff report. The Macao authorities are “willing to contemplate” establishing a sovereign wealth fund (SWF) according to the International Monetary Fund (IMF), as they chase a higher return on their reserves.
Macao overtook Las Vegas as the largest gaming centre in the world in 2005, and started rapidly accumulating foreign exchange reserves as a result. A decade-long gaming boom pushed reserves to $30 billion in January 2014 – nearly 60% of GDP - and, according to the IMF, the authorities are now considering handing some of the pot to a new SWF…………………………………Full Article: Source

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