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Sovereign Wealth Funds Briefing - Archive | October, 2014

Qatar Sovereign Wealth Fund May Be the Next Owner of HSBC Tower

Posted on 27 October 2014 by VRS  |  Email |Print

They own Harrods, the Shard and part of Barclays, Sainsbury’s and the London Stock Exchange. Now the Qatari’s look set to get their hands on HSBC’s headquarters in London’s Canary Wharf.
In the week that Qatari ruler the Emir Sheikh Tamim bin Hamad al-Thani visits Britain, the Qatar Investment Authority edged ahead of the Chinese to become preferred bidder for the 656ft tower. With a price tag of £1.1bn the sale would be one of the biggest property deals ever seen in the UK………………………………………..Full Article: Source

Prince Alwaleed attends sovereign funds HQ inauguration in Paris

Posted on 27 October 2014 by VRS  |  Email |Print

Prince Alwaleed bin Talal, chairman of Kingdom Holding Company (KHC), attended a dinner at the French presidential palace, The Elysee. The event marked the inauguration of the Institutional Investor Roundtable (IIR) headquarters with an official invitation from French President François Hollande.
Sovereign wealth fund (SWF) CEOs and French Economy Minister Emmanuel Macron attended the dinner. Prince Alwaleed had earlier attended the inauguration of the Institutional Investor Roundtable (IIR) headquarters in Paris attended by sovereign wealth fund CEOs………………………………………..Full Article: Source

Kuwaiti sovereign wealth fund plots $5bn sale of stakes in three portfolio firms

Posted on 27 October 2014 by VRS  |  Email |Print

The Kuwait Investment Authority outlined plans on Thursday to divest its holdings in three domestic listed companies, Kuwait Investment Company, Kuwait Finance House and Zain, saying it would reinvest the proceeds in investment funds.
The $400bn sovereign wealth fund, whose stakes in the three businesses are currently worth more than $5bn, said that it will factor in prevailing market sentiment before proceeding with the proposed share sales………………………………………..Full Article: Source

Kuwait fiscal reserves at $548 billion

Posted on 27 October 2014 by VRS  |  Email |Print

The oil-rich Gulf state of Kuwait had accumulated reserves of $US548 billion ($A592.91 billion) as of June 30 after continued growth in the first six months of 2014, a local daily has reported. The reserves are invested in two state funds, the State Reserve Fund with $US149 billion and the Reserve Fund for Future Generations with $US399 billion, Al-Qabas newspaper said on Sunday, citing a report by the Audit Bureau, Kuwait’s state accounting watchdog.
Both funds are run by the Kuwait Investment Authority, the country’s sovereign wealth fund. The report said the reserves had increased by $US15.7 billion in the first six months of 2014………………………………………..Full Article: Source

5 Things Sovereign Wealth Funds Won’t Tell You

Posted on 27 October 2014 by VRS  |  Email |Print

Sovereign wealth funds constantly make news headlines, buying infrastructure in the UK, acquiring a tech company with a private equity fund or doling out large mandates to established money managers. The perception that sovereign funds are long-term in nature can rightfully be challenged.
Take for instance Ireland’s National Pension Reserve Fund (NPRF) which was allocating chunks of capital left and right to private equity and real estate funds. Post global financial crisis, the NPRF bailed out banks like Allied Irish, forcing the need to liquidate positions with external managers and fund interests………………………………………..Full Article: Source

Kuwait sovereign fund to resume selling stakes in local firms

Posted on 24 October 2014 by VRS  |  Email |Print

The Kuwait Investment Authority (KIA) has decided to resume selling stakes in major local companies to the public, planning to offer its stake in Kuwait Investment Co in the first half of 2015, state news agency KUNA reported.
The decision was made by KIA’s board of directors late on Wednesday, KUNA quoted the sovereign wealth fund as saying. The KIA, one of the world’s largest sovereign funds with assets estimated at over $400 billion, began offering stakes in listed Kuwaiti firms to the public in the 1990s as part of efforts to transfer more of the country’s corporate wealth into private hands………………………………………..Full Article: Source

Kuwait Wealth Fund to Sell $5.4 Billion of Company Stakes

Posted on 24 October 2014 by VRS  |  Email |Print

Kuwait Investment Authority, the sovereign wealth fund which started as a Bank of England account dedicated to receiving oil money, will sell stakes in three local companies worth 1.56 billion dinars ($5.4 billion).
The KIA, as the fund is known, will sell its Kuwait Investment Co. holding in a public offering in the first half of next year, according to a statement on the website of the official KUNA news agency. Kuwait Finance House and Mobile Telecommunications Co. shares will also be sold………………………………………..Full Article: Source

QIA assets rise to $450bn

Posted on 24 October 2014 by VRS  |  Email |Print

The size of Qatar Investment Authority ’s ( QIA ) assets has touched $450bn. The QIA has invested its fund in a wide range of sectors including banks, real estate, tourism, agriculture; both inside and outside Qatar, Al Sharq reported. The major focus of QIA ’s foreign investments is on West European countries like the UK, France and Germany.
The combined asset in these countries stands at an estimated $80bn. UK alone attracts $35bn. QIA has invested an estimated amount of $25bn in France, while in Germany’s industrial sector attracted $20bn. Total investments in the US stands at $11bn, the daily reported………………………………………..Full Article: Source

Tanzania: Special fund to cater for natural resource earnings

Posted on 24 October 2014 by VRS  |  Email |Print

The government is planning to establish an investment fund, Sovereign Wealth Fund (SWF), to serve as a catalyst for national development by diversifying the economy through the use of revenues from such natural resources as oil and gas. Deputy Energy and Minerals Minister Stephen Masele said in Dar es Salaam on Wednesday that the ministry would introduce a motion on SWF Act in the upcoming National Assembly session in November.
“The fund will be used to control expenditure of the revenues collected from natural resources, including oil and gas,” said Mr Masele during a Tanzania Oil and Gas Conference and Exhibitions (TOGaCE)………………………………………..Full Article: Source

China’s CIC suffers CEO reshuffle, again

Posted on 24 October 2014 by VRS  |  Email |Print

China’s sovereign wealth fund CIC has been hit with another senior management setback with news that its chairman and CEO, Ding Xuedong, has been named to replace Jin Liqun as head of investment bank CICC.
The fact the government has reshuffled the head of China Investment Corporation to run the nation’s largest investment bank left one commentator to conclude the state investment company no longer enjoyed the status it once had.However, one well-placed source said that Ding would retain his current position at CIC………………………………………..Full Article: Source

China’s CICC says chairman resigns, to be replaced by head of sovereign wealth fund

Posted on 24 October 2014 by VRS  |  Email |Print

China International Capital Corp (CICC) said on Thursday its Chairman Jin Liqun resigned from his post and will be replaced by the head of the country’s sovereign wealth fund. China Investment Corporation’s current Chairman and Chief Executive Ding Xuedong has been appointed as the new CICC chairman, the investment bank said in a statement.
Reuters reported last week Jin would quit this year to take up a position at Asia Infrastructure Investment Bank (AIIB), a regional development bank being set up by Beijing………………………………………..Full Article: Source

Why super funds aren’t sold on infrastructure

Posted on 24 October 2014 by VRS  |  Email |Print

As China pushes to set up a regional infrastructure bank to lend for major projects, it’s worth revisiting just who will invest in the bulging pipeline of Australian infrastructure assets coming to market in the next 12 months. The obvious candidates are Australia’s superannuation funds, which manage some $1.8 trillion in assets but remain heavily weighted towards more liquid assets such as stocks and bonds. Super can, and should, be turning savings into investment that can boost economic growth.
Some prime candidates say that keen competition for trophy assets such as the Port of Botany have pushed valuations beyond reasonable levels. Port Botany and Port Kembla sold for $5.1 billion, a deal that many saw as a new high water mark for infrastructure deals globally………………………………………..Full Article: Source

Tory Peer Proposes Sovereign Wealth Fund Amendment to UK Infrastructure Bill

Posted on 24 October 2014 by VRS  |  Email |Print

Lord Hodgson of Astley Abbotts, a Tory peer, proposed an amendment to the UK infrastructure bill. In it, Hodgson entails the formation of a soverign wealth fund being funded by shale gas revenue. Hydraulic fracturing, also known as fracking, could provide the UK with a boom in energy revenue.
According to the Associated Press (AP), Lord Hodgson issued the following statement:“You could argue this is akin to an everlasting pension fund for UK plc. Norway has an extremely successful sovereign wealth fund and as a result Norwegian government bonds are some of the most sought after and highly rated in the world. A British sovereign wealth fund might not just help the country in the long run, it might also improve our financial stability in the short run”……………………………………….Full Article: Source

The first in the history VTB Bank Supervisory Council meeting outside of RF held in Baku

Posted on 24 October 2014 by VRS  |  Email |Print

The first in the history of VTB Bank Supervisory Council meeting outside of RF was held in Baku. According to the State Oil Fund of Azerbaijan (SOFAZ), the meeting was held on October 22.
“During the meeting participants discussed issues related to the Bank’s activities and made appropriate decisions”, - the Fund says. Executive Director of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) Shahmar Movsumov participated at the meeting as an independent member of the Bank’s Supervisory Council………………………………………..Full Article: Source

SSC: stock surveillance system adapted even to such mega deals as issue of bonds of Southern Gas Corridor

Posted on 24 October 2014 by VRS  |  Email |Print

The State Securities Committee of Azerbaijan declares that its system of supervision over the operations with securities adapted even to mega deals, including subscription of the State Oil Fund (SOFAZ) for bonds of CJSC Southern Gas Corridor (Cənub Qaz Dəhlizi, CQD).
SSC Securities Regulation Department’s head Agahuseyn Khudaverdiyev has stated that today their system and mechanism of control over the circulation of securities have been adapted for any purpose - the size of the operation or the status of the player do not matter………………………………………..Full Article: Source

Investors Can Learn From Sovereign Wealth Fund Painful Lessons

Posted on 24 October 2014 by VRS  |  Email |Print

In recent years I’ve been watching the mismanaged investments of another class of supposedly savvy investors—sovereign wealth funds. These emerging heavyweight investors—new to Wall Street—seem to be making all the wrong moves, such as blindly trusting the same old investment powerhouses that have proven to most Americans they can’t be trusted.
Worse still, sovereign wealth funds (like U.S. public pensions) get seduced into “exclusive” strategic partnerships with investment firms that have rap sheets that would make a serial killer blush. Little analysis is undertaken regarding concerns that are paramount to institutional investors in America today such as conflicts of interest, fiduciary duties, corruptive industry practices, undisclosed and excessive compensation arrangements, fraud and misrepresentation and their impact upon net performance………………………………………..Full Article: Source

Korea Investment Corp. Learns Hard Lesson

Posted on 23 October 2014 by VRS  |  Email |Print

Korea Investment Corp. , South Korea’s $72 billion sovereign-wealth fund, found out the hard way that cutting out the middleman isn’t always easy. The fund began doing deals on its own, or “direct investing,” in the late 2000s, a shift from its practice of using private-equity firms to handle the deal making.
Direct investing allows sovereign-wealth funds to avoid paying fees to private-equity firms, which typically charge 2% on assets and take 20% of any profit, and an increasing number of funds and other big investors have been doing it. Hongchul Ahn, chairman and chief executive of KIC, said in an email last week that the fund will change its approach to direct investing after “disappointingly lower returns.”……………………………………….Full Article: Source

PNG think tank slams government handling of sovereign wealth fund

Posted on 23 October 2014 by VRS  |  Email |Print

Papua New Guinea’s National Research Institute has raised serious concerns about the level of secrecy they says surrounds the creation of the country’s Sovereign Wealth Fund. The NRI says there needs to be more open debate on how the fund will operate, and on how it will be accountable if all Papua New Guineans are to benefit from new revenue streams as the government has promised.
Senior Research Fellow, Dr Osborne Sanida, says the government can’t afford to repeat the mistakes of the past in managing the huge cash flow that will be generated by the multi-million dollar liquified natural gas programme………………………………………..Full Article: Source

1MDB striving for strategic development

Posted on 23 October 2014 by VRS  |  Email |Print

1MDB is a company that can’t seem to keep itself out of the news. Everyone, from politicians and business figures to the man on the street, seems to have a view on it and the impending initial public offering (IPO) of its energy business is only likely to increase the scrutiny the company faces. For a company that so often makes the headlines, few seem to understand what exactly it does.
This has led to question marks being raised, by figures like Tun Dr Mahathir Mohamad no less, as to the rationale for 1MDB’s existence. To truly understand 1MDB, one first has to understand the nature of its business model. It is often described, incorrectly it must be said, as a “sovereign wealth fund” or “another Khazanah”, but the fact of the matter is that 1MDB is neither, nor does it claim to be………………………………………..Full Article: Source

TIH acquires $129 million of assets from Temasek

Posted on 23 October 2014 by VRS  |  Email |Print

Singapore-listed private equity fund TIH has completed a $129 million acquisition of assets from Temasek Holdings. The move is part of TIH’s new strategy to move beyond private equity and venture capital investments, TIH chairman Kin Chan said in a statement.
The assets include a minority interest in CEI Contract Manufacturing and the assignment of beneficial ownership in a minority interest of Mitsui Life Insurance Company. Mr Allen Wang, chief executive of TIH Investment Management, which manages TIH, said: “Our expertise lies in corporate finance and cross-border mergers and acquisitions… and we will work with them to see how they can grow their businesses.”……………………………………….Full Article: Source

IFC may invest up to $75M in Temasek’s local NBFC arm Fullerton India through NCDs

Posted on 23 October 2014 by VRS  |  Email |Print

International Finance Corporation (IFC), the private sector investment arm of the World Bank, may put in up to Rs 450 crore ($73.6 million) in Mumbai-based Fullerton India Credit Company Ltd (FICCL), a financial services firm owned by Singapore’s sovereign wealth fund Temasek, it said on Tuesday.
IFC seeks to invest through subscription of secured non-convertible debentures (NCD) that would be rated, listed and tradable on the Bombay Stock Exchange. FICCL is a wholly owned subsidiary of Fullerton Financial Holdings Pte. Ltd., which in turn is a wholly owned subsidiary of Temasek Holdings Pte. Ltd., Singapore………………………………………..Full Article: Source

NZ Super Fund encouraged to establish derivatives policy

Posted on 23 October 2014 by VRS  |  Email |Print

The New Zealand Superannuation Fund, which was set up to partially cover the cost of a ballooning baby boomer pension bill, has been encouraged to bed in a series of organisational changes over the past few years, and implement a new policy managing its investment in derivative products.
The two recommendations are included in the five-year review of the fund undertaken by Promontory, which found the Guardians of New Zealand Superannuation, which manages the fund, “run a very professional operation” and have “raised the overall standard of their investment activities and governance materially” since the 2009 review. The report stressed that its recommendations didn’t identify fundamental weaknesses, rather that there is always room for improvement………………………………………..Full Article: Source

Rosneft Asks for $49 Billion From State Welfare Fund to Survive Sanctions

Posted on 23 October 2014 by VRS  |  Email |Print

State-owned oil major Rosneft has requested more than 2 trillion rubles ($49 billion) from one of Russia’s oil-revenue-funded, rainy-day reserves to help it weather Western sanctions, Finance Minster Anton Siluanov told news agency RIA Novosti on Wednesday.
The sum amounts to over half the cash stored in Russia’s National Welfare Fund, a sovereign wealth fund that was created as a backstop to Russia’s pension system and held 3.2 trillion rubles ($83.2 billion) as of Oct. 10………………………………………..Full Article: Source

Russia’s energy companies may seek aid from National Welfare Fund — Dvorkovich

Posted on 23 October 2014 by VRS  |  Email |Print

Russian oil and gas companies may seek financial aid from the country’s National Welfare Fund (NWF) amid Western sanctions, Deputy Prime Minister Arkady Dvorkovich said on Wednesday. “The government is ready to consider proposals on projects in the oil and gas sector,” Dvorkovich said at the national oil and gas forum.
The government has received proposals from Russia’s largest independent gas producer Novatek and oil giant Rosneft, Dvorkovich said, adding the “government will consider them seriously.”……………………………………….Full Article: Source

FG, states share $2.7bn from Excess Crude Account

Posted on 23 October 2014 by VRS  |  Email |Print

The country’s revenue fell by N99.55bn in the month of September, thereby causing the three tiers of government on Wednesday to share N2.7bn that should have been transferred to the Excess Crude Account.
The Accountant-General of the Federation, Mr. Jonah Otunla, said the technical meeting of the Federal Accounts Allocation Committee that held earlier had suggested the sharing of the $2.7bn, which ought to have been transferred to the ECA that was established to provide a buffer for the country in the face of fluctuations in international crude oil prices………………………………………..Full Article: Source

KIA resumes share transfer program to private sector

Posted on 23 October 2014 by VRS  |  Email |Print

The Board of Directors of Kuwait Investment Authority has approved resumption of its program regarding transferring its shares from local companies to the private sector, KIA stated Wednesday.
KIA has decided to sell its shares in three companies; Kuwait Investment Company (KIC), Kuwait Finance House (KFH), and Zain Group, a mobile telecommunications company, in accordance to article (386) of the implementing regulation of Kuwait Capital Market Authority’s (CMA) Law No. 7/2010, KIA said in a press statement during the Board’s meeting, adding that CMA has approved of KIA’s decision……………………………………….Full Article: Source

Sovereign wealth funds: Stash or spend?

Posted on 22 October 2014 by VRS  |  Email |Print

Resource-rich regions have various ways of sharing the wealth. Some are more jovial than others. On October 2, every person living in Alaska was given $1,884. Although the amount was, as Time magazine noted, enough to buy a trip someplace warmer, the state’s cash-for-residency deal is just as likely to sell one-way tickets going north.
The money is the annual payout from the state’s Permanent Fund, a $50 billion piggy bank that distributes investment revenue earned on the state’s oil and gas income. Paid out every year since 1982 to individuals who have lived in the state for a full calendar year as a way to lure people to live in the state, this year’s amount was nearly double the $900 residents received last year, and the third highest nominal amount ever………………………………………..Full Article: Source

Nigeria’s Sovereign Wealth Fund: Investment plans unaffected by falling oil prices

Posted on 22 October 2014 by VRS  |  Email |Print

Nigeria’s sovereign wealth fund said its investment programme over the next six months, including on infrastructure, will go ahead, even as revenues that provide its capital are hit by falling oil prices.
Uche Orji, Chief Executive of the Nigeria Investment Authority, highlighted one of the vehicle’s core aims is to manage oil export windfalls to cushion the economy in harder times. “The oil price, yes, it’s come down. But frankly, let’s not forget why this fund was set up. It was to prepare us for days like this,” he told Reuters on the sidelines of an African investment conference in London on Tuesday………………………………………..Full Article: Source

Zambia needs wealth fund

Posted on 22 October 2014 by VRS  |  Email |Print

In the 2015 national budget Government, through the Ministry of Finance, has set aside K100 million towards the creation of a sovereign wealth fund. Minister of Finance Alexander Chikwanda has proposed that the fund be housed by Zambia’s nascent investment vehicle, the Industrial Development Corporation (IDC).
The Bank of Zambia (BoZ) has, however, suggested that it houses the fund. Deputy Governor for Administration Mabula Kankasa recently said the central bank has taken this position after studying a number of sovereign wealth funds around the world………………………………………..Full Article: Source

Sweet deal for GlobalFoundries and Mubadala

Posted on 22 October 2014 by VRS  |  Email |Print

IBM is paying GlobalFoundries $1.5 billion to acquire IBM’s global commercial semiconductor technology business, including intellectual property, world-class technologists and technologies related to IBM Microelectronics. The acquisition is a win for GlobalFoundries and for Abu Dhabi.
GlobalFoundries is 100 percent owned by Mubadala Development Company, Abu Dhabi’s sovereign wealth fund. Its mandate is the economic diversification of the Emirate. Mubadala’s portfolio is valued at more than $60.93 billion………………………………………..Full Article: Source

SOFAZ budget revenues exceed 10 bln manats

Posted on 22 October 2014 by VRS  |  Email |Print

The budget revenues of Azerbaijan’s state oil fund SOFAZ reached 10.131 billion manats in the third quarter of 2014. This comes as the fund’s budget expenditures constituted 8.041 billion manats during the same period of time.
“Some 9.969 billion manats was gained from the implementation of oil and gas agreements, including 9.947 billion manats from the sale of profit oil and gas, 6.8 million manats from transit payments, and 13.3 million manats from bonus payments. Revenues from payments per acre in the first half of 2014 amounted to 1.7 million manats,” SOFAZ said on October 20………………………………………..Full Article: Source

Only 4.4% of SOFAZ investment portfolio intended for active investment

Posted on 22 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ), known for its conservatism, intended no more than 4.4% of its investment portfolio or about $1.639 bn for active investment instruments.
According to the Fund, by October 1, 0.9% ($440.391 million) of its investment portfolio ($37.265 bn) was intended for project financing and 3.5% ($1.199 bn) was invested in stocks. The rest investments were passive: fixed-income securities (82.2% of portfolio), deposits and market instruments (7.4%), physical gold (3.2%) and real estate (2.8%)………………………………………..Full Article: Source

GIC buys office space in Tokyo

Posted on 22 October 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC has acquired an office component within a building in central Tokyo, estimated to cost about 170 billion yen (S$2 billion). The 32-storey high Pacific Century Place Marunouchi was acquired through a GIC affiliate, said GIC in a statement today (Oct 21).
GIC’s purchase covers all of the office space from levels 8 to 31, but excludes other components within the building such as the Four Seasons Hotel. The building is located next to the JR Tokyo train station and has nearly 39,000sqm of rentable space………………………………………..Full Article: Source

Investors in Japanese Property Look Beyond Tokyo

Posted on 22 October 2014 by VRS  |  Email |Print

When it costs nearly $2 billion to buy just part of a building in a prime Tokyo location, it is no wonder some investors in Japanese property are looking farther afield. Singapore sovereign-wealth fund GIC Pte. Ltd. said Tuesday it bought 24 floors of Pacific Century Place Marunouchi, a building next to Tokyo Station, in a bid to grab a slice of Japan’s hot property market. A person with knowledge of the deal said the cost was $1.7 billion.
Total real-estate investment in Japan rose to ¥3.5 trillion ($33 billion) from the start of the year through September, the highest level since 2007 and a 13% increase from the same period last year, according to data from Urban Research Institute Corp., a real-estate think tank operated by Mizuho Trust & Banking Co………………………………………..Full Article: Source

GIC Buys Tokyo Building in Bet on Rising Property Prices

Posted on 21 October 2014 by VRS  |  Email |Print

GIC Pte, Singapore’s sovereign wealth fund, bought a building next to Tokyo Station in a bet that the city’s real estate values will continue to rise. GIC paid $1.7 billion for the property, according to a person familiar with the purchase who asked not be named because the information isn’t public. The fund, which declined to comment on the price, said it acquired the office component of the Pacific Century Place Marunouchi.
The building was sold by Secured Capital Japan Co., a real estate arm of Hong Kong-based alternative-asset manager PAG, according to statements by the buyer and seller. Real estate prices in Tokyo have risen about 20 percent since Prime Minister Shinzo Abe took office almost two years ago, Deutsche Asset & Wealth Management estimated, with property investment in the country rising 70 percent to 4.6 trillion yen ($43 billion), the highest in six years………………………………………..Full Article: Source

Libya-Goldman clash sheds light on formerly secretive fund

Posted on 21 October 2014 by VRS  |  Email |Print

In 2008, Catherine McDougall was a young Australian lawyer seconded to the Libyan Investment Authority’s offices in Tripoli to assist its legal team and review financial transactions conducted by Goldman Sachs. She was “shocked” by what she learnt, according to her witness statement detailed in a London court earlier this month.
In it, Ms McDougall details a “very angry tirade” allegedly unleashed by Mustafa Zarti, then the deputy director of the LIA, towards Goldman bankers Youssef Kabbaj and Nick Pentreath at the sovereign wealth fund’s 22nd floor offices at Tripoli Towers in a meeting in July 2008………………………………………..Full Article: Source

QIA, Lau mull Lifestyle takeover

Posted on 21 October 2014 by VRS  |  Email |Print

Qatar Investment Authority (QIA) and Hong Kong’s Lau family are considering options, including a full takeover of department store operator Lifestyle International Holdings Ltd, after the sovereign wealth fund bought a minority stake, according to people with knowledge of the matter.
QIA and Thomas Lau, Lifestyle’s chief executive officer and largest shareholder, see more value in the US$2.9 billion (RM9.5 billion) company by taking it private, the people said. QIA yesterday agreed to buy 19.9 per cent of Lifestyle, the owner of Sogo department store, for about HK$4.78 billion (RM2 billion). A full takeover offer isn’t imminent, the people said………………………………………..Full Article: Source

Qatar Fund to Pay $616M for Stake in Hong Kong Retailer

Posted on 21 October 2014 by VRS  |  Email |Print

Qatar Investment Authority agreed to pay about HK$4.78 billion ($616 million) for a stake in a Hong Kong department store operator as the sovereign wealth fund diversifies its global portfolio.
QIA, the owner of the Harrods department store in London, agreed to buy 20 percent of Lifestyle International Holdings Ltd. for HK$14.75 a share, according to a statement from the Hong Kong-listed company. Lifestyle shares fell as much as 7.3 percent to HK$13.54 in the city as they resumed trading today after being halted on Sept. 24………………………………………..Full Article: Source

Can Nigeria Achieve A $6.3bn Excess Crude Account?

Posted on 21 October 2014 by VRS  |  Email |Print

At the recently concluded IMF/World Bank Annual Meetings, the World Bank, arguably prompted by recent global trends such as the drop in oil prices, had advised the Nigerian Federal Government to increase its fiscal buffers by raising the excess crude account from $4.1 billion to $6.3 billion, a 54 percent increase.
Dr Ngozi Okonjo-Iweala, Nigeria’s Minister of Finance, being a key representative of the country at the meeting, had re-assured Nigerians that the feat was achievable saying; “We would look at how we would strengthen the buffer. There is no cause for alarm, we are on top of the game.”……………………………………….Full Article: Source

State Oil Fund of Azerbaijan does not buy physical gold for 2 quarter at a run

Posted on 21 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has not bought physical gold for two quarters (Q2 and Q3 of 2014) at a run. The Fund informs that as of 1 October it had physical gold in the amount of $1.18 bn that was equivalent to 3.2% of its investment portfolio ($37.265 bn.
“By the reported date SOFAZ had at disposal 30.17 tons of gold (970,146 ounces),” the Fund reported. This level of reserves was similar to the indicator by 1 April 2014. Nevertheless, SOFAZ can buy more gold, at least, for $680.1 million, as investment rules allow the Fund to invest in physical gold up to 5% of its portfolio, that as of 1 October 1 was equivalent to $1.86 bn………………………………………..Full Article: Source

Oil Fund’s assets for Jan-Sept exceed $37.305 bn

Posted on 21 October 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) increased its assets by 3.98% for Jan-Sept 2014. According to SOFAZ, over the past 9 months of the year Oil Fund’s assets grew from $35.877 bn in early 2014 up to $37.305 bn. “During the first 9 months of 2014 Oil Fund’s revenues totaled AZN 10.1 bn and expenditures AZN 8.04 bn,” SOFAZ said in a statement.
As a result, the SOFAZ budget was implemented with surplus of AZN 2.09 bn. “Our revenues consist mainly from oil and gas PSA contracts in the amount of AZN 9.969 bn, including AZN 9.947 bn from profit oil and gas,” the Fund said………………………………………..Full Article: Source

Mainstream media gloss over GIC’s $269 million capital loss

Posted on 21 October 2014 by VRS  |  Email |Print

GIC had actually bought the property in June 2007 when the British pound was very strong against our currency at about 1GBP=$3.06. When converted into local currency, the purchase price would be a whopping $1.469 billion. GIC had therefore made a capital loss of about $269 million, a huge embarrassment to the government.
From June 2007 to October 2014, the British currency lost 33% against the Singapore dollar. GIC would of course have made some rental gains which is nothing to shout about – the property was bought near the top of the stock market cycle and rental yields and property prices are inversely correlated. Any net rental gains would have probably been offset by the capital loss and transaction costs. Our CPF investment yielded close to nothing………………………………………..Full Article: Source

SWFs and pensions diversify into new markets and asset classes

Posted on 21 October 2014 by VRS  |  Email |Print

In Asia Pacific, sovereign wealth funds (SWFs) and pension funds have been diversifying their investments into new markets and asset classes. Alternatives are now playing a larger role in their investment portfolios. According to Dan McNicholas, head of alternative investment sector solutions, Asia Pacific, at State Street, these are more complex investment strategies.
“We have been providing our clients with solutions to address new regulatory constraints, better manage risk and monitor underlying manager performance and liquidity. Investments into these asset classes are typically made through fund-of-funds, managed accounts or through in-house investment teams. Our suite of services for the limited partner sector across hedge, private equity and real estate continues to evolve and become more specialised to meet the increasing needs of our clients.”……………………………………….Full Article: Source

Qatar fund to buy stake in HK department store operator for $616 mln

Posted on 20 October 2014 by VRS  |  Email |Print

Qatar Holding LLC has agreed to pay $616 million for about one fifth of Lifestyle International Holdings, a department operator in Hong Kong and mainland China - the latest addition of a high-end retail brand to the sovereign wealth fund’s portfolio.
Lifestyle’s stores include a SOGO branded store in Hong Kong’s bustling shopping district of Causeway Bay and four Jiuguang stores on the mainland. A unit of Qatar Holding will pay HK$14.75 per share for the 19.9 percent stake, a 1 percent premium to Lifestyle’s last traded price of HK$14.60, the statement added. Qatar Holding will get one board seat on the completion of the transaction………………………………………..Full Article: Source

Qatar eyes $15bn Greater China spending spree

Posted on 20 October 2014 by VRS  |  Email |Print

Qatar’s purchase of a stake in a Hong Kong department store chain is the beginning of a potential $15bn spending spree targeting Greater China, according to people familiar with the Gulf state’s plans. Qatar Holding, which owns stakes in Harrods, Barclays, Credit Suisse and Canary Wharf Group among others, on Monday said it would pay $616m for a near-20 per cent stake in Lifestyle International Holdings, owner of Hong Kong’s SOGO department stores.
The fund’s parent, Qatar Investment Authority, aims to spend up to $15bn in the medium term to bolster its presence in north Asia, according to people familiar with the matter………………………………………..Full Article: Source

How Qatar funds extremists across the Middle East

Posted on 20 October 2014 by VRS  |  Email |Print

Qatar is the richest country in the world per capita - and has made significant investments into various iconic London landmarks. Its sovereign wealth fund owns Knightsbridge department store Harrods and its property arm has invested substantially in the development of Chelsea Barracks. It also owns the Shard - currently the tallest building in the EU.
However, it has also played a significant role in funding groups across the Middle East who are extremely hostile to the West. It has been providing arms to a group of radical Islamists called “Libya Dawn”, whose allies, Ansar al-Sharia, were responsible for killing US Ambassador Christopher Stevens in an attack on a diplomatic compound in Benghazi in 2011………………………………………..Full Article: Source

TIH wraps up S$129m in acquisitions from Temasek Holdings

Posted on 20 October 2014 by VRS  |  Email |Print

Private equity fund TIH Limited’s subsidiary TIHT Investment Holdings has completed a S$129 million acquisition of assets from Temasek Holdings. This comprises a minority interest in CEI Contract Manufacturing Limited and the assignment of beneficial ownership in a minority interest of Mitsui Life Insurance Company Limited.
The consideration of S$129 million is payable partly in cash, partly by way of financing and an issue of shares in TIHT. Post-completion, TIHT will be 55 per cent owned by Killian Court, a direct wholly-owned subsidiary of TIH and 45 per cent owned through an indirect wholly-owned subsidiary of Temasek………………………………………..Full Article: Source

SOFAZ revenues more than $2 bn from “Shah Deniz”

Posted on 20 October 2014 by VRS  |  Email |Print

The reserves are estimated at 1.2 trl of cubic meters of gas. As of October 1, 2014, since 2007 the revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project of gas condensate field “Shah Deniz” in the Azerbaijani sector of the Caspian Sea amounted to $2,006 m.
Oxu.Az reports citing Day.az that the information was provided by the State Oil Fund. According to the fund, from January to October 1, 2014 the State Oil Fund in the framework of the “Shah Deniz” project received $409 m………………………………………..Full Article: Source

As IPO markets stumble, private equity buyers prepare to swoop

Posted on 20 October 2014 by VRS  |  Email |Print

Across Europe, companies hoping to list are having their plans dashed by plunging equity prices. But what’s bad for public stock markets may be good for private equity firms. Having started the year with a record $1 trillion cash pile, private equity funds have found few chances to spend it, despite pressure from investors wanting them to put the money to work.
The most likely scenario would be for sovereign wealth funds such as the Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC to become so-called cornerstone investors by buying a sizeable stake in Spie at a pre-agreed price to underpin a fresh attempt at an IPO………………………………………..Full Article: Source

Watch Out Banks: BAML Steps Up Game on Sovereign Wealth Funds

Posted on 20 October 2014 by VRS  |  Email |Print

Bank of America Merrill Lynch (BAML) is seeking to expand ties into the Middle East and Asia, while some European banks struggle to get their houses in order. The bank was recently the global coordinator for Jimmy Choo’s initial public offering in which an Asian sovereign wealth fund became the second largest shareholder in the shoe company.
Sovereign wealth funds permeate throughout the investment banking world, as sovereign wealth funds are engaging more in direct transactions. According to the Sovereign Wealth Fund Transaction Database , over US$ 186 billion was spent in direct transactions by sovereign wealth funds in 2013………………………………………..Full Article: Source

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