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Sovereign Wealth Funds Briefing - Archive | September, 2014

CIC to Cut Stake in Singapore Commodity Trader Noble Group

Posted on 30 September 2014 by VRS  |  Email |Print

Sovereign-wealth fund China Investment Corp. is seeking to raise up to 405 million Singapore dollars (US$318 million) by selling a portion of its stake in Singapore-listed commodity trader Noble Group, people with knowledge of the deal said Monday.
CIC, which currently owns close to a 15% stake in Noble Group, will see its holding fall to about 10% post sale, one of the people said. China’s sovereign-wealth fund had spent US$850 million in 2009 to buy a stake in the Hong Kong-based Noble Group, a diversified commodities company with assets ranging from Brazilian sugar mills to Australian iron ore to oilseed-processing facilities in China and India………………………………………..Full Article: Source

Temasek Holdings units take stake in homegrown shoe firm Star 360

Posted on 30 September 2014 by VRS  |  Email |Print

Heliconia Capital and Pavilion Capital, both units of Temasek Holdings, have made an investment in local firm Star 360, a distributor and retailer of sports and fashion footwear, apparel and accessories. None of the parties have disclosed the amount of the investment.
Heliconia is an investment firm that provides growth capital to Singapore’s leading small and medium sized enterprises, while Pavilion specialises in private equity investment in North Asia. As strategic partners, both firms will provide insight and advice on key management decisions………………………………………..Full Article: Source

Khazanah will not list Themed Attractions this year

Posted on 30 September 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd will not be listing its wholly-owned subsidiary Themed Attractions and Resorts Sdn Bhd (TAR) this year but would like its leisure and tourism arm to be listed eventually, said Khazanah managing director Tan Sri Azman Mokhtar.
“I can confirm that it (listing) will not be this year. (TAR is) doing well and we’ve no hurry to list it. We’ll list it when it’s ready,” he said. He said the decision to list TAR will be made jointly between Khazanah, the board of TAR as well as TAR CEO………………………………………..Full Article: Source

Khazanah hopes govt enacts MAS Act early next year

Posted on 30 September 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd hopes the government will enact the “MAS Act” early next year, before MAS NewCo is set up in the middle of next year. According to the RM6 billion recovery plan for MAS, its shares will be delisted from Bursa Malaysia by year-end and a new company (Newco) will be created to carry on the airline’s business.
To facilitate the restructuring of the national carrier in a comprehensive, timely and holistic manner, the government will table a new law in Parliament called the MAS Act. Managing Director Tan Sri Azman Mokhtar said the act is an important enabling act, which the Prime Minister is expected to table in Parliament next week……………………………………….Full Article: Source

Indonesia’s Bumi Resources cuts rights issue size, in talks with creditors

Posted on 30 September 2014 by VRS  |  Email |Print

PT Bumi Resources Tbk , Indonesia’s biggest coal miner, has cut its planned rights issue, saying it sees an opportunity to negotiate with some creditors on its debt. In June, Bumi said it will issue up to 32.2 billion shares to raise 8.05 trillion rupiah ($664 million), mainly to pay off its debt to creditors, including Chinese sovereign wealth fund China Investment Corp.
In October last year, CIC agreed to convert part of Bumi’s debt into stakes in the miner and associated subsidiaries. In July, Bumi transferred a 19 percent stake worth $950 million in its unit, Kaltim Prima Coal, cutting its debt to the Chinese sovereign wealth fund to $1.04 billion………………………………………..Full Article: Source

Angola in the fast lane

Posted on 30 September 2014 by VRS  |  Email |Print

Oil wealth has propelled Angola’s fast-growing economy, but it could be heading for a crash without Government and banking sector reforms.
Though risk exposure associated with the oil sector and sovereign debt remains, Moody’s noted that the country is supported by the Government’s strong debt-to-GDP ratio (23 per cent) and the gradual growth in foreign exchange reserves. The recent creation of the sovereign wealth fund, Fundo Soberano de Angola, should also serve as a buffer against potential economic shock………………………………………..Full Article: Source

Fitch expects further moderate growth of Azerbaijan’s sovereign assets

Posted on 30 September 2014 by VRS  |  Email |Print

Azerbaijan’s sovereign balance sheet is one of the strongest of any rated sovereign and underpins the rating, the statement says. The State Oil Fund of Azerbaijan (SOFAZ) reached USD37.6bn in 1H14. Adding USD15bn in foreign-exchange reserves at the Central Bank of Azerbaijan (CBAR), the sovereign’s gross external assets are equivalent to 69% of GDP.
Fitch expects further modest growth in sovereign assets as the current account registers (diminishing) surpluses in 2014-16. This should provide a buffer against oil price or production shocks and support the manat’s (AZN) peg to the USD at AZN0.78/USD1………………………………………..Full Article: Source

Reformed Irish SWF could still be used to pre-fund pension liabilities

Posted on 30 September 2014 by VRS  |  Email |Print

Using the Ireland Strategic Investment Fund’s (ISIF) assets to pre-fund the country’s pension liabilities should not be ruled out, the head of the Irish debt management office has said.
John Corrigan, outgoing chief executive at the National Treasury Management Agency (NTMA), said pension provision remained on the government agenda, despite last year’s decision to transform the National Pensions Reserve Fund (NPRF) into the ISIF, severing its ties with the pre-funding of state pension liabilities………………………………………..Full Article: Source

Alberta Heritage Savings Trust Fund up for debate

Posted on 30 September 2014 by VRS  |  Email |Print

The endowment funds created by former premier Alison Redford will be up for debate next week when Albertans voice their opinion on the province’s savings. The Legislative Assembly of Alberta’s Standing Committee on the Alberta Heritage Savings Trust Fund will hold a public meeting to “discuss changes” to the $17.5 billion fund and it’s endowments on Oct. 9 at 4:30 p.m. inside the University of Alberta’s Lister Centre.
In March, Redford announced two new funds and two endowments springing from the Heritage Savings Trust Fund that were given a $1.1 billion allocation for the 2014-15 fiscal year. Prentice has already directed Don Scott, the new Minister of Innovation and Advanced Education, to “assess the proposed value” of the Social Innovation Endowment that saw an immediate capitalization of $500 million from the province’s savings in 2014………………………………………..Full Article: Source

Suffering Wealth and Sovereign Wealth

Posted on 29 September 2014 by VRS  |  Email |Print

The Excess Crude Account (ECA), which was set up by former President Olusegun Obasanjo under the inspiration of Dr. Ngozi Okonjo-Iweala in 2004, was the saving grace. Nigeria would have lapsed into a catastrophic economic downturn. Yet, when Obasanjo set up ECA, governors kicked against it, describing it as unconstitutional. All money must be shared, they said.
If Obasanjo had caved in, there would have been nothing to fall back on in 2009 when the crunch set in. We still make use of it till today. So much for constitionalism. ECA is, of course, not the same thing as SWF. ECA simply saves the difference between the budgeted and the actual prices of crude oil. It is a stabilisation fund, summoned when it is needed, especially by the governors who continue to wave the constitution in our face anything they crave raw cash. SWF, on the other hand, is primarily an investment………………………………………..Full Article: Source

Angola: Sovereign Fund President Checks Projects in Bungo

Posted on 29 September 2014 by VRS  |  Email |Print

The CEO of the Angola Sovereign Fund (FSDEA), José Filomeno dos Santos, assessed the implementation of agricultural projects funded by his institution in the municipality of Bungo, northern Uige province.
Accompanied by Uíge governor, Paulo Pombolo, and Sovereign Fund officials, Filomeno dos Santos visited two Bungo’s peasant associations with 200 members each. During the visit to the peasant associations, the FSDEA chief was briefed on the production process and the constraints faced by the growers in flowing out their crops into the consumer markets………………………………………..Full Article: Source

Aabar wealth fund to work with Goldman Sachs on options for RHB stake

Posted on 29 September 2014 by VRS  |  Email |Print

Aabar Investments PJSC, owned by Abu Dhabi’s sovereign wealth fund, is working with Goldman Sachs Group Inc. as it explores options for its stake in RHB Capital Bhd., according to people with knowledge of the matter.
Aabar, the Malaysian bank’s second-largest shareholder with a 21.2 per cent stake, is seeking to protect the value of its investment as the lender negotiates a three-way merger with CIMB Group Holdings Bhd. and Malaysia Building Society Bhd., the people said. It hasn’t yet signed a formal mandate with Goldman Sachs, one person said, asking not to be identified as the talks are private………………………………………..Full Article: Source

Ai to boost African pension, sovereign wealth fund by $1 trn

Posted on 29 September 2014 by VRS  |  Email |Print

Africa Investor, Ai has announced its $1billion Africa investor Sovereign Infrastructure Investment Platform, for African pension and sovereign wealth funds – continually developed in close partnership with African pension and sovereign wealth funds.According to a statement after the summit, Ai , a leading international investment and communications group and US institutional investors, including sovereign wealth and pension funds, have agreed to invest in Africa’s fastest growing sectors and capital markets.
The new Ai platform is uniquely designed to increase intra-African investment, which is currently at a mere 5 per cent compared to intra-European investment levels in excess of 70 per cent………………………………………..Full Article: Source

With $100 billion in foreign reserves: is Libya’s central bank monopolizing the country’s economic potential?

Posted on 29 September 2014 by VRS  |  Email |Print

Oil accounts for 95 percent of state revenue in Libya and 65 percent of the country’s Gross Domestic Product (GDP). The country has the largest oil reserves in Africa and the fifth largest in the world, with oil terminals scattered across the country but mainly concentrated in the northeast. With the Tripoli-based bank’s full control of these vital oil revenues, it has become a key, if not the supreme player in the ongoing civil war, according to well-placed sources and analysts.
And it’s not the oil revenues alone that the bank holds. The CBL controls the country’s entire purse strings at the moment, including $100bn in foreign currency reserves. It is from the bank’s headquarters that money is distributed and assets accessed across Libya. This includes money that the Tobruk-based House of Representatives (HoR) needs to spend and function as an effective political force………………………………………..Full Article: Source

After 23 years in office, why was the UAE’s central bank governor replaced?

Posted on 29 September 2014 by VRS  |  Email |Print

It was quite a shock to hear that the UAE has replaced the governor of its central bank, Sultan bin Nasser Al Suwaidi, who has been in the job for 23 years. His replacement is the CEO of the Emirates Investment Authority, a sovereign wealth fund, Mubarak Al Mansouri.
When men like this go suddenly there is always the question of what went wrong but this is just speculation as we have no idea. Clearly it might just be thought a change at the top was overdue. Bankers have long been critical about the internal mechanisms of the UAE central bank………………………………………..Full Article: Source

Linklaters and Freshfields advise as GIC takes co-ownership of RAC with Carlyle

Posted on 29 September 2014 by VRS  |  Email |Print

Linklaters and Freshfields Bruckhaus Deringer have taken on key roles as Singapore’s sovereign wealth fund GIC prepares to become co-owner of RAC, the UK’s second largest roadside assistance provider.
Following the investment, which is due to be completed by the end of the year, GIC and private equity house The Carlyle Group will jointly own a majority stake in the business with RAC management holding the remaining shares. The deal was run as a dual-track offering, with the initial public offering (IPO) mooted earlier in the summer abandoned after GIC was identified as a buyer………………………………………..Full Article: Source

1MDB land issue in Penang: Guan Eng demands answers

Posted on 29 September 2014 by VRS  |  Email |Print

As more questions surface about the 1Malaysia Development Board (1MDB) and its lack of transparency, the Penang government is pushing for answers to the sovereign fund’s purchase of land in the state. With debts reportedly amounting to around RM38 billion after operating for five years, Chief Minister Lim Guan Eng said the people have the right to know how IMDB, which is the federal government investment arm, used its funds.
In Penang, he said the board purchased 234 acres of freehold land in Air Itam in two deals on April 29, 2013, just six days before the May 5, 2013 general election; and in a third and final deal on September 23, 2013………………………………………..Full Article: Source

Alaska Permanent Fund Corp. says it will stick with hedge funds

Posted on 29 September 2014 by VRS  |  Email |Print

The Alaska Permanent Fund won’t be following the lead of California’s huge CalPERS public pension fund, which just made the startling decision to stop investing in hedge funds. But Mike Burns, executive director of the Alaska Permanent Fund Corp., which manages the Permanent Fund, says he understands why CalPERS managers did what they did.
“We think about it all the time,” he said. Hedge funds were created to “hedge” risk similar to an insurance policy. Big investors would use hedge funds to balance investment risks, like making investments that would go up if the stock market was to fall………………………………………..Full Article: Source

Main work completes on Georgian section of Baku-Tbilisi-Kars railway

Posted on 29 September 2014 by VRS  |  Email |Print

A section between Marabda and Kartsakhi stations was constructed in Georgia as part of the Baku-Tbilisi-Kars (BTK) railway project, Azeryolservis JSC under the Azerbaijani Transport Ministry said. Its subdivision is the contractor of three of the four stages of the railway line construction on the territory of Georgia.
SOFAZ finances the project in accordance with the decree of the President of Azerbaijan ‘On the implementation of the activities of the Baku-Tbilisi-Kars project’ dated February 21, 2007………………………………………..Full Article: Source

Temasek in talks to buy stake in Indian firm

Posted on 26 September 2014 by VRS  |  Email |Print

Three investment firms, including Singapore’s Temasek Holdings, are in advanced talks to buy a 30 per cent stake in the retail arm of India’s Aditya Birla Group for US$400 million (S$508 million) to US$500 million, two sources with direct knowledge of the matter told Reuters.
The other two firms involved in the talks are LVMH Moet Hennessy Louis Vuitton’s private equity arm, L Capital, and International Finance Corp (IFC), a unit of the World Bank that offers investment, advisory and asset management services to encourage private sector development in developing countries………………………………………..Full Article: Source

Carlyle to Sell Stake in U.K.’s RAC to Singapore’s Sovereign-Wealth Fund

Posted on 26 September 2014 by VRS  |  Email |Print

Carlyle Group has agreed to sell a stake in U.K. roadside-assistant provider RAC to Singapore’s sovereign-wealth fund instead of selling shares in the company to the public as it previously intended. The deal values RAC at more than £2 billion ($3.3 billion), a person familiar with the transaction said.
Carlyle and GIC will jointly own a majority stake and RAC managers will own a minority of the shares, the companies said Thursday in a joint statement. The price wasn’t disclosed. The investment is expected to be completed by the end of the year………………………………………..Full Article: Source

GIC Agrees to Become a Shareholder in RAC With Carlyle

Posted on 26 September 2014 by VRS  |  Email |Print

Carlyle Group LP agreed to sell a stake in U.K. roadside assistance company RAC Ltd. to Singaporean sovereign wealth fund GIC Pte. The world’s second-largest manager of investment alternatives to stocks and bonds will become a joint shareholder with GIC, and RAC management will retain a minority stake, the two companies said in a statement today. The value of the transaction wasn’t disclosed.
“Both Carlyle and GIC believe that RAC has a clear strategy with significant growth potential,” Andrew Burgess, partner at Carlyle Group, said in the statement. “GIC will provide a solid partnership for the business.”……………………………………….Full Article: Source

Are sovereign wealth funds changing strategy? (Video)

Posted on 26 September 2014 by VRS  |  Email |Print

Alasdair Warren, head of financial sponsors group for EMEA at Goldman Sachs, says that sovereign wealth funds are changing their investment strategies, after GIC acquired 50 percent of RAC.……………………………………….Full Article: Source

KIC to double its research staff

Posted on 26 September 2014 by VRS  |  Email |Print

Korea Investment Corp., the country’s $76 billion sovereign wealth fund, plans to almost double its research staff to pick stocks for two new funds that may eventually comprise 30 percent of its equity holdings.
KIC will probably increase the research unit to about 60 people by 2017 from the current level of 32, said Rhee Keehong, the fund’s deputy chief investment officer and research head. KIC, which only invests overseas, had about $35 billion in stocks and $25 billion in bonds last year, with the remainder in alternative assets and other investments………………………………………..Full Article: Source

Kazakh envoy meets with Director of Abu Dhabi Fund for Development

Posted on 26 September 2014 by VRS  |  Email |Print

On September 24, 2014 Ambassador of Kazakhstan to the UAE Kairat Lama Sharif met with Mr. Mohammed Saif Al Suwaidi, the Director General of the Abu Dhabi Fund for Development (ADFD. During the meeting Kairat Lama Sharif briefed on the process of reform of the “Samruk-Kazyna” Fund in several key areas, in accordance with the best international practices and advanced international experiences of sovereign wealth funds.
In addition, the Kazakh diplomat noted that currently transmission of the public assets and quasi-public sector’s assets to the competitive environment within the framework of second wave of privatization in Kazakhstan has begun. Mr. Mohammed Saif Al Suwaidi praised the efforts of Astana for sustainable economic growth of modern Kazakhstan………………………………………..Full Article: Source

Zimbabwe: Senate rejects Mugabe as trustee of Sovereign Wealth Fund

Posted on 26 September 2014 by VRS  |  Email |Print

Senate passed the Sovereign Wealth Fund (SWF) of Zimbabwe Bill with some Senators demanding the removal of a clause which said President Robert Mugabe should be a trustee of the fund. The Bill, which creates a fund to be set aside for use during crises, was brought before Senate by Finance deputy minister Samuel Undenge.
According to Undenge, other African countries like Angola and Botswana already had a SWF from their natural resources like diamonds, which they would fall back on to pay for pension obligations, provide capital injections in the event of crises or to ensure that future generations benefitted from the extraction of finite resources………………………………………..Full Article: Source

Nigeria: Suit On Sovereign Fund Adjourned Till Jan 26

Posted on 26 September 2014 by VRS  |  Email |Print

The Supreme Court on Tuesday said the legal tussle over the creation of the Sovereign Wealth Fund (SWF) was not ready for hearing. The case has been fixed for January 26, 2015. Presiding judge, Justice Mahmud Mohammed, said the case was not ripe for hearing because vital documents were not in the case file.
“In order to hear the case, it is necessary for counsels to go to the registry and make sure that all necessary processes were in the file,” Mahmud said. The sovereign wealth fund manages the surplus income produced from Nigeria’s excess oil reserves on behalf of the states and federal governments………………………………………..Full Article: Source

2014 Permanent Fund check set at $1,884

Posted on 26 September 2014 by VRS  |  Email |Print

Gov. Sean Parnell today announced that the 2014 Permanent Fund Dividend will be $1,884. The first dividends will be paid on Oct. 2, when approximately 510,731 applicants will receive a direct deposit into their bank account, and 88,186 will be mailed a check. Paper checks will enter the U.S. mail system on Oct. 2 from Juneau.
674,538 Alaskans applied for the 2014 dividend this year – an increase of approximately 1,587 applications from 2013. More than $944.4 million will be directly deposited into Alaskans’ bank accounts this year, with a total distribution, including checks, of $1.1 billion. Beginning Oct. 2, and continuing monthly thereafter, applications that become eligible will be paid either by check or direct deposit………………………………………..Full Article: Source

Korea’s Wealth Fund Doubling Staff to Pick Buffett-Style Stocks

Posted on 25 September 2014 by VRS  |  Email |Print

Korea Investment Corp., the country’s $76 billion sovereign wealth fund, plans to almost double its research staff to pick stocks for two new funds that may eventually comprise 30 percent of its equity holdings.
KIC will probably increase the research unit to about 60 people by 2017 from the current level of 32, said Rhee Keehong, the fund’s deputy chief investment officer and research head. KIC, which only invests overseas, had about $35 billion in stocks and $25 billion in bonds last year, with the remainder in alternative assets and other investments………………………………………..Full Article: Source

Temasek ‘a company like no other’

Posted on 25 September 2014 by VRS  |  Email |Print

Its beginnings were modest and fraught with risk but when Temasek Holdings held its 40th anniversary dinner last night, it had become, in the words of President Tony Tan Keng Yam, “a company like no other”.
In his keynote speech, Dr Tan said the investment firm was an “experiment born out of necessity” and had transformed itself into a Singapore institution that “epitomises a culture of constant hard work and ceaseless innovation to build for the future”. Last night, plenty of well-wishers gathered to mark that singular achievement over the past 40 ground-breaking years………………………………………..Full Article: Source

Temasek arm signs 2nd LNG purchase contract

Posted on 25 September 2014 by VRS  |  Email |Print

Singapore state investor Temasek-owned Pavilion Energy has signed a second long-term contract to buy liquefied natural gas (LNG) for trading and supply to Asia, taking another step towards its goal of becoming a global company in the fuel.
Pavilion Energy said in a statement yesterday its wholly owned subsidiary Pavilion Gas Pte has struck a deal with BP under which the UK company will supply it with 0.4mn tonnes per year of LNG for 20 years from 2019. It did not say how much Pavilion would pay for the LNG………………………………………..Full Article: Source

Singapore wealth fund nears deal to buy 50% of RAC from Carlyle

Posted on 25 September 2014 by VRS  |  Email |Print

GIC, the Singapore-based sovereign wealth fund, is close to an agreement to buy 50 per cent of RAC from its owner, buyout fund manager Carlyle, in a move that is expected to derail plans to list the British roadside recovery company.
The private equity house is leaning towards a deal whereby it would keep half of RAC, sell the rest to GIC and pay itself a dividend by adding more debt to the company, in a so-called recapitalisation, according to people with knowledge of the discussions. The transaction would value RAC at more than £2bn including its debt………………………………………..Full Article: Source

GIC in talks to buy Carlyle’s RAC for over S$4 bln: Report

Posted on 25 September 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund, GIC , is in talks to buy the British roadside rescue business RAC from US private equity firm Carlyle Group for more than 2 billion pounds (S$4.1 billion), Sky News reported, citing a person familiar with the talks.
The British broadcaster said the sale to GIC was likely to end an expected share listing of RAC. Sky added that GIC might instead take a large minority stake in RAC before an initial public offering. Sources told Reuters in June that RAC was considering an IPO this year in a deal that media reports have said could value the company at 2 billion pounds………………………………………..Full Article: Source

Ireland’s new SWF will take ‘years’ to deploy capital fully, says NTMA head

Posted on 25 September 2014 by VRS  |  Email |Print

The Ireland Strategic Investment Fund (ISIF) will take up to four years to re-deploy its €7bn in assets, according to the head of the National Treasury Management Agency (NTMA).
John Corrigan, who is to retire as chief executive of the NTMA at the end of December, also said the organisation’s chairman Willie Walsh would soon start recruiting members of the ISIF investment committee………………………………………..Full Article: Source

Biggest Wealth Fund CEO Sticks to Norway in Own Investments

Posted on 25 September 2014 by VRS  |  Email |Print

As head of the world’s biggest sovereign wealth fund Yngve Slyngstad has invested in more than 80 countries. Yet when placing his own money, he sticks to his home country Norway.
The chief executive officer of Norges Bank Investment Management, the unit inside Norway’s central bank that manages the $870 billion fund, owns shares in 14 companies including Statoil ASA (STL) and Telenor ASA (TEL), according to information released by NBIM. Since heading the fund in 2008, Slyngstad has bought stock for 1.6 million kroner ($252,000) and sold shares for about 100,000 kroner………………………………………..Full Article: Source

Norway now second-largest buyer of US commercial real estate

Posted on 25 September 2014 by VRS  |  Email |Print

Norway, surprisingly, now ranks second among foreign U.S. commercial real estate buyers, topped only by Canada. The sovereign fund that manages the country’s substantial oil wealth made a play for Blackstone Group’s 1095 Sixth Avenue just last week, in a deal that is expected to fetch up to $2.25 billion.
The move followed the Norges Bank Investment Management’s purchase of a 45 percent interest in 601 Lexington for $1.5 billion. In total, the country has spent over $3.2 billion on U.S. real estate so far this year, according to data from research firm Real Capital Analytics cited by Bloomberg News. The push comes as Norway looks to invest as much as 5 percent of its assets in real estate………………………………………..Full Article: Source

Norwegian oil fund plans gradual shift to reference portfolio

Posted on 25 September 2014 by VRS  |  Email |Print

Norway’s Government Pension Fund Global (GPFG) is to replace its current strategic index with a new benchmark meant to offer greater flexibility. The new approach, which Yngve Slyngstad, chief executive of Norges Bank Investment Management (NBIM), said stemmed from a recent review of the fund’s approach to active management, would also encourage “gradual” growth of private investments while allowing for a consistent benchmark approach across all holdings.
Speaking at a seminar at the Norwegian Ministry of Finance, Slyngstad said the review by Andrew Ang of Columbia Business School, Michael Brandt of Duke University and the former president and chief executive of the Canada Pension Plan Investment Board (CPPIB), David Denison, had shown how the GPFG could exploit investment opportunities currently outside the index………………………………………..Full Article: Source

NMSIC Onboard: Sovereign Wealth Funds Adopting Smart Beta

Posted on 25 September 2014 by VRS  |  Email |Print

The New Mexico State Investment Council (NMSIC) has embarked on a search for one or more smart beta managers to manage US$ 1 billion. The search is for two different types of smart beta managers: smart beta managers focusing on low volatility, and smart beta managers focusing on fundamental value strategies.
The smart beta allocation is being funded by the replacement of PanAgora Asset Management. PanAgora managed a US$ 572 million domestic large-cap enhanced index portfolio for NMSIC. NMSIC’s investment consultant RVK is helping in the search………………………………………..Full Article: Source

Norway’s opposition wants wealth fund to invest in infrastructure

Posted on 24 September 2014 by VRS  |  Email |Print

Norway’s $870-billion sovereign wealth fund should be allowed to directly invest in infrastructure such as wind farms and solar plants, the country’s opposition Labour party will propose, a plan gaining the support of the majority of parties.
The world’s largest sovereign wealth fund, which owns on average 1.3 percent of all listed companies worldwide, is currently mandated to invest in stocks, bonds and property abroad. But if the fund, set up to invest Norway’s oil and gas revenue, was allowed to expand the scope of its portfolio to include infrastructure projects, starting with renewables, it may greatly increase capital into the sector………………………………………..Full Article: Source

Norway Jumps to No. 2 Foreign Buyer of U.S. Real Estate

Posted on 24 September 2014 by VRS  |  Email |Print

Norway has vaulted to the top ranks of foreign U.S. commercial real estate buyers as its $870 billion sovereign-wealth fund, the world’s largest, acquires buildings from New York to San Francisco.
The country has spent more than $3.2 billion on U.S. real estate this year, including the assumption of debt, according to research firm Real Capital Analytics Inc. and statements from the wealth fund. That makes it the biggest international buyer after Canada. The total is more than double the amount spent in all of 2013, when Norway ranked No. 6 for property purchases………………………………………..Full Article: Source

SOFAZ to gain $200 bln in coming years

Posted on 24 September 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, an entity that accumulates and manages the country’s oil and gas revenues, is expected to gain $200 billion in the coming years.The news was announced by Executive Director of SOFAZ Shahmar Movsumov on September 20.
He told the journalists that currently, SOFAZ continues financing the projects on the construction of the Baku-Tbilisi-Kars railway, rehabilitation of the Samur-Absheron irrigation system, as well as the state program on education of Azerbaijani students abroad………………………………………..Full Article: Source

RAC owners in sales talks with Singaporean fund

Posted on 24 September 2014 by VRS  |  Email |Print

The private equity owner of RAC has decided to ditch a stock market float in favour of a £2bn-plus sale to Singapore’s sovereign wealth fund. Carlyle, which bought the breakdown business for £1bn from insurer Aviva three years ago, is locked in talks with Government Investment Corporation (GIC) of Singapore.
Sources indicated the sale, first reported by Sky News, could be announced as early as Wednesday afternoon. Although it is thought unlikely the final sale price will be announced alongside details of the transaction, Carlyle would only opt to sell rather than float the business in return for a healthy premium……………………………………….Full Article: Source

Singaporean Fund Revs Up GBP2bln RAC Takeover

Posted on 24 September 2014 by VRS  |  Email |Print

A Singaporean state fund is in secret talks to lead a £2bn-plus takeover of the RAC, a move that would end the prospect of a stock market listing of the famous roadside recovery business. Sky News can reveal that the Government Investment Corporation of Singapore (GIC) is discussing with Carlyle, the RAC’s existing owner, a deal that could be struck within days.
GIC is understood to have been interested in participating in a takeover of the RAC, which has 8.2 million members, for some time, having been enticed by the company’s stable cashflows and growth prospects, according to a person close to the situation………………………………………..Full Article: Source

L Capital, Temasek near Birla Retail deal

Posted on 24 September 2014 by VRS  |  Email |Print

Marquee international investors L Capital, Temasek Holdings and International Finance Corporation are in the final reckoning to buy minority shares in Aditya Birla Group’s retail holding company, people familiar with the matter said.
Billionaire Kumar Mangalam Birla is in the midst of combining his group entities Madura Lifestyle & Fashion, Pantaloons department stores and More supermarkets into a new listed company valued at $2.3 billion in enterprise valuation. Birla could raise as much as $400 million from two or three investors, though a final quantum has not been decided yet. Standard Chartered Bank is advising Aditya Birla Group on the deal………………………………………..Full Article: Source

1MDB’s offering to push sukuk sales in Malaysia above RM50b

Posted on 24 September 2014 by VRS  |  Email |Print

The world’s biggest Islamic debt offering this year from Malaysia’s sovereign wealth fund will push the nation’s sukuk sales beyond RM50 billion for only the second time in 16 years. 1Malaysia Development Bhd (1MDB) plans to sell as much as RM8.4 billion of the notes, adding to the RM46.9 billion sold so far that’s almost double the amount a year earlier.
After 2012’s record issuance of RM95.8 billion, CIMB Group Holdings Bhd and Asian Finance Bank Bhd see RM100 billion as being achievable in the next few years………………………………………..Full Article: Source

Seven Energy, Sovereign Wealth Fund Sign $100m Investment Deal

Posted on 24 September 2014 by VRS  |  Email |Print

Seven Energy International Limited, an indigenous integrated oil and gas development, production and distribution company with interests in Nigeria, and the Sovereign Investment Authority (NSIA), Nigeria’s sovereign wealth fund, Tuesday announced a $100 million investment commitment.
Under the deal, NSIA through its Gas -to -Power funds managed on behalf of the Debt Management Office (DMO), signed a commitment letter for an investment of at least $100,000,000 in aggregate principal amount of senior secured notes due in 2023 to be issued and privately placed by Seven Energy Finance Limited………………………………………..Full Article: Source

2014 Looks to Beat 2013 in Sovereign Wealth Fund Transactions

Posted on 24 September 2014 by VRS  |  Email |Print

Increasingly, sovereign wealth funds are investing directly. The larger sovereign funds are getting involved in more deals, whether in institutional real estate, partaking as a group member in a company acquisition or buying more shares on the open market.
As a whole, the world of sovereign wealth funds is rapidly expanding due to numerous factors. One significant factor is the number of new sovereign wealth funds cropping up, particularly in Africa and the Americas……………………………………….Full Article: Source

World’s Biggest Wealth Fund to Shift Away From Standard Indexing

Posted on 23 September 2014 by VRS  |  Email |Print

Norway’s $880 billion sovereign wealth fund, the world’s largest, said traditional global indexes are no longer an appropriate model on which to base its investments. “A new framework for the management of the fund may facilitate a development where we as the management take greater responsibility by defining a tailor-made reference portfolio,” Yngve Slyngstad, the fund’s chief executive officer, said.
The global indexes the investor currently follows don’t “represent the best starting point,” he said. The fund, which gets its capital from Norway’s oil and gas wealth, is seeking to boost returns and expand into new asset classes. After getting its first capital infusion 18 years ago, the investor has steadily added risk, expanding into stocks in 1998, emerging markets in 2000 and real estate in 2011 to safeguard the wealth of western Europe’s largest oil exporter………………………………………..Full Article: Source

Temasek takes on sustainability challenge

Posted on 23 September 2014 by VRS  |  Email |Print

A long-term investor with a strong public service sensibility and a massive portfolio must inevitably confront the issue of sustainability. For Singapore government-owned investment company Temasek Holdings, that time has begun in earnest, chairman Lim Boon Heng hinted on Monday at a dinner to mark Temasek’s 40th anniversary.
“This spirit of doing things today, with tomorrow very clearly in our minds also describes the ethos of Temasek,” Mr Lim said. “It forms our values and culture as a long-term investor, as a forward-looking institution and most of all, as a trusted steward.” Singapore President Tony Tan Keng Yam recalled that Temasek was created as a way to keep government from overly influencing its commercial interests………………………………………..Full Article: Source

Sustainability forms Temasek’s core, says chairman Lim Boon Heng

Posted on 23 September 2014 by VRS  |  Email |Print

Long-term sustainability remains the core concern for Temasek Holdings after four decades of existence, its chairman Lim Boon Heng said Monday. Speaking at a dinner at the Istana to mark the Singapore government investment company’s 40th anniversary, he said: “This spirit of doing things today with tomorrow very clearly in our minds also describes the ethos of Temasek.”
He especially noted Temasek’s recent focus on environmental sustainability; it had on Sept 19 organised an “Ecosperity” conference with Goldman Sachs and the National University of Singapore to explore the issue of sustainable growth………………………………………..Full Article: Source

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