Mon, Apr 12, 2021
A A A
Welcome mteam
RSS

Sovereign Wealth Funds Briefing - Archive | November, 2014

SOFAZ considers all risks while investing abroad

Posted on 28 November 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ takes into account all possible risks while planning to invest in various financial instruments abroad, in particular in the Russian market which is going through a difficult period. SOFAZ made the statements commenting on the possible impact of the progressive devaluation of the Russian ruble and the stock market decline on the fund’s revenues from assets management in Russia during the third quarter, Trend Agency said.
SOFAZ owns a real estate in Russia, and is one of the shareholders of VTB Bank. As part of its new investment policy, pursued since 2012, SOFAZ purchased Gallery Actor, a mixed-use office and retail complex located on Pushkin Square in Moscow for $133 million…………………………………..Full Article: Source

Macquarie Group, Kuwait’s Sovereign-Wealth Fund to Buy E.On’s Spanish Assets

Posted on 28 November 2014 by VRS  |  Email |Print

German power utility E.ON SE has agreed to sell its Spanish assets to Australia’s Macquarie Group and Kuwait’s sovereign-wealth fund in a deal worth €2.5 billion ($3.1 billion), according to people familiar with the matter. E.ON’s supervisory board is set to meet Friday to approve the deal, the people said.
The sale is part of an orderly but costly retreat by the German utility giant from Southern Europe’s electricity market, hard hit by a six-year economic downturn and sweeping regulatory changes that lowered the profitability of energy firms in Spain. E.ON is also in the final stage of selling its assets in Italy…………………………………..Full Article: Source

Libya sues Goldman Sachs

Posted on 28 November 2014 by VRS  |  Email |Print

The Libyan Investment Authority claims that Goldman Sachs made $350m – and cost the country over $1 billion – by tricking “naïve” staff into paying vastly over the odds for products that proved worthless. The sovereign wealth fund, which was created to maximise oil profits and is worth $66 billion, bought complex derivatives from Goldman Sachs, which then collapsed in value in 2008, losing the Libyan Investment Authority $1 billion in the process.
Nine financial products were purchased in total, all of which were “bets” on the future share price of companies such as Citigroup and EDF. The fund says that its staff thought that they were buying actual shares in the companies and were duped by Goldman Sachs………………………………….Full Article: Source

A Green Future For Kazakhstan

Posted on 28 November 2014 by VRS  |  Email |Print

Kazakhstan, which inherited many wasteful industries and inefficient processes from the old Soviet Union, has not escaped this sad legacy. But as the country’s economy develops rapidly, we are also determined to do all we can to repair the damage and avoid any future mistakes.
The urgent need to develop a green economy is at the heart of the EXPO exhibition which Kazakhstan is hosting in Astana in 2017. Our country’s sovereign wealth fund “Samruk Kazyna” is investing heavily in the knowledge and technology needed to support innovative and sustainable development…………………………………..Full Article: Source

Update on MAS restructuring by Sunday, says Khazanah

Posted on 28 November 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd will provide updates on the the restructuring of ailing Malaysia Airlines System Bhd (MAS) before this weekend, says the majority shareholder. Managing director, Tan Sri Azman Mokhtar, said the announcement would be in line with the government’s investment arm’s initial plan which was to provide an update every three months.
“November 29 is exactly three months since we reveal restructuring plan” he said today. He said Khazanah’s response to Jentayu Danaraksa Sdn Bhd’s interest in buying parts of the national carrier’s assets would also be revealed in the update………………………………….Full Article: Source

World’s Biggest Wealth Fund Hunts for Tailored Benchmark Index

Posted on 27 November 2014 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund, the world’s largest, says designing benchmark indexes that give its portfolio managers greater investing freedom will help drive up returns.
“A large investor may wish to carve out some capital and allocate risk to active portfolio managers with the aim of enhancing the fund return,” it said in a report published on its website today. “A large investor may wish to design non-market capitalization weighted benchmarks to maximize the benefit to the investor of the stock picking ability of active portfolio managers.”……………………………………Full Article: Source

Norwegian Oil Fund’s dirty investments continue

Posted on 27 November 2014 by VRS  |  Email |Print

The Sovereign Wealth Fund’s stakes in the coal industry are higher than previously acknowledged. These holdings amount to NOK 82.2bn in the coal sector, a study conducted by a handful of environmental organisations reveals. Report “Dirty & Dangerous” was a collaborative effort between three environmental organisations.
These were the German organisation Urgewald, Norway’s The Future in our Hands, and Greenpeace Norway. Head of the Norwegian Pension Fund, Yngve Slyngstad told parliamentarians at a parliamentary hearing earlier this year that, “Our investments in coal are limited and falling. They have been halved over the last two years”…………………………………….Full Article: Source

Oil fund grilled over its coal holdings

Posted on 27 November 2014 by VRS  |  Email |Print

Norway’s huge sovereign wealth fund, known as the oil fund since it’s fueled by the country’s oil revenues, is being grilled once again, this time over its investments in coal. While environmentalists want the fund to dump its coal mining stakes, some economists do, too, warning that they can become unprofitable as well as damaging for the planet.
Oil fund officials have themselves claimed that the fund’s coal holdings are “limited and in decline.” Yngve Slyngstad, chief executive officer of the fund, said in January that they’d been cut in half over the past two years. Next week, a special commission is due to evaluate whether the fund, a powerful player in international investment circles, should sell off or at last drastically reduce its remaining stakes in fossil fuels like coal, oil and gas, for the sake of the environment…………………………………….Full Article: Source

Russian Investment Grade Seen at Risk by S&P on Fund Raid

Posted on 27 November 2014 by VRS  |  Email |Print

Russia has limited room for tapping one of its sovereign wealth funds before jeopardizing its investment-grade debt rating, according to Standard & Poor’s.
“If money is spent to support the economy, to support specific companies — that would lead to a decline of those fiscal buffers beyond what we currently expect,” S&P analyst Christian Esters said in an interview in Moscow yesterday. The rainy-day funds “are strong mitigating factors for the stresses Russia has been experiencing.”……………………………………Full Article: Source

Was China Ready to Bail Out AIG?

Posted on 27 November 2014 by VRS  |  Email |Print

Was China’s sovereign wealth fund poised to save U.S. taxpayers from the risk they took in bailing out American International Group Inc.—but then-Treasury Secretary Henry Paulson rebuffed the Chinese help? That is one of the key assertions in the lawsuit brought by Maurice R. “Hank” Greenberg, the global insurer’s former long-time chief executive. Testimony ended Monday in the 37-day bench trial, and a review of court transcripts helps to shed light on what the Chinese did and didn’t do.
Mr. Greenberg’s suit maintains the government coerced AIG’s board into accepting its harsh terms—including the handover of a 79.9% equity stake to the U.S. —by quashing AIG’s other financing alternatives. The alleged motive: funneling bailout money through AIG to Wall Street firms and overseas banks in “backdoor bailouts.”……………………………………Full Article: Source

Was a Chinese sovereign wealth fund willing to immediately write a check?

Posted on 27 November 2014 by VRS  |  Email |Print

As the 37-day bench trial regarding the U.S. government’s forced bailout of American International Group Inc wraps up, a big question is: did the government disregard a valid offer from a Chinese sovereign wealth fund that could have bailed out AIG? Maurice R. “Hank” Greenberg, AIG’s legendary CEO and largest shareholder, brought the lawsuit against the government.
The suit essentially makes two claims: The large Wall Street banks essentially received favorable bailout terms while AIG was harshly punished – an argument that is hard to dispute. The second charge, and the one that could play into the trial more significantly, is that AIG had a valid offer from the China Investment Corp. (CIC), sovereign wealth fund, to purchase the firm and the government dismissed that offer out of hand…………………………………….Full Article: Source

Temasek, Capital International eye Avantha’s consumer biz stake

Posted on 27 November 2014 by VRS  |  Email |Print

Leading global private equity (PE) companies such as US-based Capital International Private Equity, Singapore’s sovereign fund Temasek and Bain Capital are keen to acquire a minority stake in Crompton Greaves Consumer Products - the proposed de-merged consumer business division of Avantha Group - sources said.
On Monday, Crompton Greaves, part of Gautam Thapar-promoted Avantha had said Avantha Holdings would sell a part of its 42.7 per cent stake in Crompton Greaves Consumer Products. Avantha Holdings directly owns 40.84 per cent stake with the rest held by other investment entities…………………………………….Full Article: Source

Norwegian fund may shed BHP stake

Posted on 26 November 2014 by VRS  |  Email |Print

Norway’s $US870 billion ($1.02 trillion) sovereign wealth fund may be forced to shed assets such as Coal India, BHP Billiton and China Shenhua Energy next year as pressure mounts for Parliament to act on fossil fuel divestments.
A report presented in Oslo on Tuesday by three environmental organisations urged Norway to shed the fund’s coal holdings. A second report, due next week, could put the fund under still more pressure to cut back on its coal investments. It will examine if climate change is more effectively addressed by preventing the fund from investing in certain coal related companies than by trying to affect change at the companies themselves………………………………..Full Article: Source

Norway oil fund’s coal exposure bigger than claimed -environment groups

Posted on 26 November 2014 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund, the world’s biggest, has more exposure to coal than it said earlier and should sell out, three environmental groups said, potentially re-igniting calls for the fund to revamp its portfolio.
The fund had investments worth 82 billion crowns at the start of the year in companies that are either major producers or consumers of coal, and the investment rose in 2013, contrary to the fund’s claims that coal exposure was falling, Germany’s Urgewald, Greenpeace and Norway’s Framtiden said on Tuesday………………………………..Full Article: Source

What the Nordic states can teach us about investing mining wealth

Posted on 26 November 2014 by VRS  |  Email |Print

The government formed the Petroleum Fund, into which money began to be deposited in 1996. In 2006 this became the Government Pension Fund – Global (Statens Pensjonsfond). It is commonly referred to by Norwegians as the Oljefondet (oil fund), while it is often referred to in other parts of the world as Norway’s “sovereign wealth fund”.
The fund is fully owned by the Norwegian state through the Ministry of Finance. It is managed by Norway’s central bank (Norges Bank). It has grown to be worth more than 5000 billion Norwegian kroner — some $800 billion. The fund takes in all the considerable revenues which the government receives from Norway’s oil and gas, including taxes, ownership shares and dividends from Statoil………………………………..Full Article: Source

Singapore’s GIC to invest in Indonesia property with Rajawali

Posted on 26 November 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC and Indonesia’s Rajawali Group have agreed to jointly invest up to $500 million in equity in property projects in Indonesia, the two companies said in a statement on Tuesday.
The joint venture will look at sectors including office, retail, residential and mixed-use projects mainly in the central business district of Indonesian capital Jakarta, the statement said. Privately-owned Rajawali is one of Indonesia’s largest investment companies………………………………..Full Article: Source

KIC to retain BOA stake for time being: chief

Posted on 26 November 2014 by VRS  |  Email |Print

The head of South Korea’s sovereign wealth fund on Monday apologized for its botched investment in Bank of America (BoA) but stressed it plans to retain the stake for the time being to minimize losses.
“I believe that it was a poor investment and apologize to the people of Korea. I promise that Korea Investment Corp. (KIC) will remember the painful lesson from the Merrill Lynch investment and become a global sovereign wealth fund,” KIC chief executive Ahn Hong-chul told reporters in a news conference. KIC has been facing strong backlash from opposition party lawmakers for its US$2 billion investment in Merrill Lynch in 2008 before the financial firm was merged with BoA………………………………..Full Article: Source

SWF Apologizes to Citizens for Merrill Lynch Investment

Posted on 26 November 2014 by VRS  |  Email |Print

The head of South Korea’s $77 billion sovereign wealth fund has apologized to the country’s citizens for its disastrous $2 billion investment in Merrill Lynch, made shortly before the corporation merged with Bank of America.
“I believe that it was a poor investment and apologize to the people of Korea,” Hongchul Ahn, CEO of the Korea Investment Corporation (KIC), told reporters in a news conference Monday. “I promise that Korea Investment Corporation will remember the painful lesson from the Merrill Lynch investment and become a global sovereign wealth fund.”……………………………….Full Article: Source

Khazanah considers releasing Islamic bonds to finance business expansions

Posted on 26 November 2014 by VRS  |  Email |Print

Malaysia’s state-owned sovereign wealth fund is giving the government’s green financing initiative a boost with a plan to sell the nation’s first sukuk under socially responsible investment guidelines.
Khazanah Nasional Bhd. is considering issuing a benchmark sized ringgit-denominated Islamic bond to finance expansion in its education or renewable energy businesses, Chief Financial Officer Mohd Izani Ghani said in November 20 interview in Kuala Lumpur. The notes will probably be issued in the second half of 2015, he said………………………………..Full Article: Source

NZ Super Fund’s Orr says responsible investing now a groundswell globally

Posted on 26 November 2014 by VRS  |  Email |Print

NZ Superannuation Fund chief executive Adrian Orr said long-term and responsible investing has become a groundswell globally, rather than a ripple. Speaking at today’s Responsible Investment Association of Australasia conference in Auckland, Orr said globally it had reached a tipping point where more asset owners were now having regard for responsible investment drivers such as environmental, social and governance issues.
The latest report from the RIAA showed in 2013 assets managed responsibly in New Zealand increased by 20 percent to just over $27 billion, around 40 percent of total assets under management, much of that due to the Super Fund………………………………..Full Article: Source

Bajaj Corp sells 8% stake to Temasek: Sources

Posted on 26 November 2014 by VRS  |  Email |Print

Bajaj Corp has sold 8 percent stake in the company to Temasek, CNBC-TV18 learns from sources. The stake sale has been done to close equity funding for Bajaj Corp’s 2,000 MW power plant in Uttar Pradesh.
This power plant has been based on BHEL’s technology and is expected to go live in January next year, sources add. It is further learnt that any further stake sale is unlikely………………………………..Full Article: Source

Goldman Ordered by Judge to Disclose Profits on Libya Trades

Posted on 26 November 2014 by VRS  |  Email |Print

Legal woes continue to trouble The Goldman Sachs Group, Inc. The Wall Street banking giant has been ordered by a High Court judge in London to disclose the amount of profit it derived from nine complex derivatives trades associated with the $1 billion lawsuit filed against the bank by the Libyan Investment Authority (LIA).
LIA, a sovereign wealth fund, filed a lawsuit in Jan 2014, pertaining to Goldman’s dealings with the LIA in the earlier part of 2008, which led to significant losses for LIA. At a London court hearing on Monday, Judge Vivien Rose asked Goldman to reveal its margin, profit and loss on the trades, starting from the day those were booked as well as a month later. The bank is also ordered to reveal how the profits were calculated and the amount of reserves it set aside for each trade………………………………..Full Article: Source

Time for SWFs to bring the money back home

Posted on 26 November 2014 by VRS  |  Email |Print

The world’s sovereign wealth funds (SWFs) are similar. They have billions, made either through the exploitation of a natural resource they were fortunate enough to find within their national boundaries (like most Middle East SWFs), or though the sheer hard work of the people of their sovereign territory (like the SWFs of China and Singapore).
It’s important to note, though, that the SWFs are not identical to the billionaires referred to above. They are not, initially at least, the wealth creators like Branson or Gates. That role is played by the governments and policymakers of the sovereign countries involved, which displayed the foresight, vision and sheer hard work to amass the funds in the first place………………………………..Full Article: Source

Concierge Treatment: Private Equity Courts Mega Sovereign Funds and Pensions

Posted on 26 November 2014 by VRS  |  Email |Print

Over the past few years, sovereign wealth funds have gained a bit of leverage over private equity managers. Sovereign funds like Kuwait Investment Authority (KIA), China Investment Corporation (CIC) and Abu Dhabi Investment Authority (ADIA), have taken ownership stakes in headline private equity firms such as The Blackstone Group and The Carlyle Group.
As sapient sovereign funds and mega pensions boost the ranks of their internal private equity teams, they will be larger actors in co-investments and direct deals. According to the Sovereign Wealth Fund Transaction Database, in the first half of 2014, sovereign funds invested directly US$ 51.3 billion. This compares to US$ 42.6 billion in the first half of 2013………………………………..Full Article: Source

Why 2015 will be year for ME wealth funds

Posted on 25 November 2014 by VRS  |  Email |Print

Middle East Sovereign Wealth Funds (SWFs) have been forced to navigate shifting economic currents at home and abroad as they seek to invest their oil-fuelled capital to generate the best returns for their stakeholders, according to a newly published KPMG report on SWFs in the Middle East.
The report was published in collaboration with the Institutional Investor’s Sovereign Wealth Centre. Over the past two years, there has been a shift in how the Middle East’s Sovereign Wealth Funds have had to reallocate their assets. The changes are driven by market forces including the unprecedented low-interest rate environment…………………………………Full Article: Source

Yonhap: KIC to retain BOA stake for time being: chief

Posted on 25 November 2014 by VRS  |  Email |Print

The head of South Korea’s sovereign wealth fund on Monday apologized for its botched investment in Bank of America (BoA) but stressed it plans to retain the stake for the time being to minimize losses. “I believe that it was a poor investment and apologize to the people of Korea. I promise that Korea Investment Corp. (KIC) will remember the painful lesson from the Merrill Lynch investment and become a global sovereign wealth fund,” KIC chief executive Ahn Hong-chul said.
KIC has been facing strong backlash from opposition party lawmakers for its US$2 billion investment in Merrill Lynch in 2008 before the financial firm was merged with BoA…………………………………Full Article: Source

High court judges orders Goldman Sachs to disclose Libya profits

Posted on 25 November 2014 by VRS  |  Email |Print

Libyan sovereign wealth fund, which is suing Goldman, estimates the US investment bank made $350m in upfront profit on nine derivatives products. A high court judge has ordered Goldman Sachs to reveal how much profit it made on a deal that lost Libya’s government more than $1bn when financial bets turned sour.
The Libyan Investment Authority, created in 2006 to look after the country’s oil riches, accused the Wall Street bank of duping it into making investments that its “naive” staff didn’t understand. The $66bn sovereign wealth fund is suing Goldman in the high court in London after it lost $1bn from investing in complex derivative investments that collapsed in value during the 2008 financial crisis…………………………………Full Article: Source

Goldman Sachs Told to Reveal Libya Transaction Profits

Posted on 25 November 2014 by VRS  |  Email |Print

A London judge said Goldman Sachs Group Inc. (GS) should reveal how much money it made from transactions with Libya’s sovereign wealth fund at the center of a $1 billion lawsuit. The bank should tell the Libyan Investment Authority what its profits were on the disputed trades, and how it calculated them, Judge Vivien Rose said at a London court hearing.
The LIA is suing Goldman over money lost on 2008 derivative deals that it says weren’t appropriate for the wealth fund. Part of the fund’s case is that Goldman made excessive profits from the trades. “It should be a reasonably straightforward matter for Goldman Sachs to tell everybody what they did,” Judge Rose said…………………………………Full Article: Source

Mubadala-owned Healthpoint and Manchester City in three-year deal

Posted on 25 November 2014 by VRS  |  Email |Print

Mubadala-owned medical company Healthpoint has agreed to a three-year deal to become Manchester City’s regional healthcare provider and partner. Healthpoint, which specialises in orthopaedics, sports medicine, and physical therapy, will provide clinical and rehabilitation services to Manchester City footballers.
“This partnership includes traditional giveaways and hospitality rights,” said Healthpoint board member Dr Ihsan Almarzouqi. “But is more than that. We aim to be a partner for clinical excellence and elevate our capabilities in sports medicine.”………………………………..Full Article: Source

Sovereign Wealth Fund Divestment as an Environmental Protection Strategy

Posted on 24 November 2014 by VRS  |  Email |Print

Divestment (also known as disinvestment) generally entails the use of economic means to pressure an entity, such as a corporation or government, towards a change in its policies or practices. It usually involves the reduction of an asset to achieve an ethical objective.
Organized economic boycotts have been utilized in a variety of situations where the practices of the impugned entity have been deemed to violate the norms of society, such as in the case of the tobacco industry, arms manufacturers and governments that support policies of apartheid. More recently, divestment strategies have made their way into the environmental protection sphere…………………………………..Full Article: Source

Norway’s largest pension fund vows to drop coal mine holdings

Posted on 24 November 2014 by VRS  |  Email |Print

Norway’s largest pension fund has vowed to drop its holdings in coal miners, intensifying pressure on the coal industry from global investors. The NKr470bn ($70bn) KLP pension scheme, which manages the retirement assets of Norway’s public sector workers, will blacklist companies that derive more than 50 per cent of their revenues from coal-based activities.
The pension fund expects the withdrawal to lead to the sale of shares and bonds worth approximately NKr500m. It will publish a list of the companies affected on December 1…………………………………..Full Article: Source

Sovereign wealth fund acquisitions surge as confidence returns

Posted on 24 November 2014 by VRS  |  Email |Print

Sovereign wealth funds are buying up assets this year at their fastest rate since the financial crisis as these state-run pools of assets regain the confidence lost when big punts on western banks turned sour, Thomson Reuters data shows.
Thomson Reuters data shows sovereign wealth funds, which invest windfall revenues from oil and other exports for future generations, were involved in deals worth $40 billion (25.55 billion pound) in the first nine months of 2014, the highest rate since 2007. The money was spent across 79 transactions – the highest number since 2008 – with real estate and infrastructure dominating the deal flow…………………………………..Full Article: Source

QIA building top-end hotel portfolio worldwide

Posted on 24 November 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund, Qatar Investment Authority (QIA), is building a global top-end hotel portfolio. QIA displayed strong interests in global hotels and tourism facilities last year, according to a new report.
“QIA confirmed its appetite for trophy-assets and luxury brands by acquiring via its specialised subsidiary Constellations Hotels Holding nothing less than the InterContinental flagship hotels in London and New York; l’Hotel du Louvre in Paris; and the Four Seasons Hotel in Florence. In a separate 100m pounds deal it also acquired the freehold from the Crown Estate, the property company that controls the assets of the Crown in the UK…………………………………..Full Article: Source

QIA dismisses oil prices effect

Posted on 24 November 2014 by VRS  |  Email |Print

Despite this impacting on the finances of the oil-dependent Gulf States, Qatar Investment Authority (QIA) will not change its investment strategy, the sovereign wealth fund’s chief executive stated, reported in the Gulf Daily News.
“In QIA, we have a long-term strategy, which accounts for the volatility in the market,” Ahmed Al Sayed told reporters on the side-lines of the industry conference in Doha. “We are adjusted and ready for such a scenario.” Questioned about a short-term adjustment, he answered: “No, I don’t think so. We evaluate the market from time to time.”………………………………….Full Article: Source

Qatar Investment Authority to set up training academy

Posted on 24 November 2014 by VRS  |  Email |Print

Qatar Investment Authority ( QIA ), the country’s sovereign wealth fund managing billions of dollars in assets, plans to set up a training academy to hone Qatari youth’s financial and business skills and meet the growing demand for qualified business and finance professionals in Qatar which is witnessing economic boom.
Ahmad bin Mohamed Al Sayed, CEO, QIA , told the opening ceremony of the sixth International Forum of Sovereign Wealth Funds (SWF) that the authority is completing procedures for the academy. The Prime Minister and Interior Minister H E Sheikh Abdullah bin Nasser bin Khalifa Al Thani opened the forum…………………………………..Full Article: Source

Looking beyond Sovereign Wealth Fund

Posted on 24 November 2014 by VRS  |  Email |Print

A Sovereign Wealth Fund (SWF) is a special purpose investment fund that is owned by the government. In general, these funds hold financial assets such as stocks, bonds, property or precious metals.
Around the globe, SWFs have been created to achieve savings, development, reserve investments and stabilisation roles at national level. Savings and stabilisation funds have been more prevalent where the former is created to build up savings for future generations while the latter helps to reduce the volatility of government revenues…………………………………..Full Article: Source

Is the Future Fund falling behind the divestment curve?

Posted on 24 November 2014 by VRS  |  Email |Print

When questioned in Parliament on Thursday about why the Future Fund has not divested from fossil fuels, Chairman Peter Costello was quick to respond that the fund’s only mandate is to deliver investment returns.
Costello’s response is typical of a generation of money managers who don’t yet appreciate the enormous risk that climate change poses to financial markets. So far, it has fallen largely upon the shoulders of environmentalists to draw investors’ attention to this risk, however the issue is now rapidly spreading to the senior levels of global money managers like Goldman Sachs and the world’s largest fund manager, BlackRock…………………………………..Full Article: Source

Qatar Wealth Fund Says Oil’s Slump Won’t Derail Strategy

Posted on 21 November 2014 by VRS  |  Email |Print

Qatar’s sovereign-wealth fund, which controls more than $100 billion of assets, said the slump in crude prices won’t lead to a change in its investment plans. “We’ve been created to avoid the volatility in oil price,” Ahmed Al-Sayed, chief executive officer of the Qatar Investment Authority, told reporters in Doha today. “We are already adjusted and ready for such a scenario.”
Qatar, the richest country in the world on a per-capita basis, has deployed surplus income from liquefied natural gas exports into real estate, banks, and automakers………………………………….Full Article: Source

Volatile oil prices will not affect Qatar wealth fund strategy - CEO

Posted on 21 November 2014 by VRS  |  Email |Print

Volatile oil prices will not force the Qatar Investment Authority (QIA) to change its investment strategy, the sovereign wealth fund’s chief executive said on Thursday. A plunge in prices - benchmark Brent crude fell to more than a four-year low of below $77 per barrel last week - is hitting the finances of Gulf Arab oil exporting countries, which rely on crude and gas sales for most of state revenue.
“In QIA, we have a long-term strategy, which accounts for the volatility in the market,” Ahmed al-Sayed told reporters on the sidelines of the industry conference in Doha. “We are adjusted and ready for such a scenario.” Asked whether there will be a short-term adjustment, he told a news conference: “No, I don’t think so. We evaluate the market from time to time.”…………………………………Full Article: Source

QIA plans to invest up to $20bn in ‘Greater Asia’ over five years

Posted on 21 November 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund plans to invest up to $20bn in “Greater Asia” over the next five years as part of portfolio diversification, said Qatar Investment Authority chief executive officer, HE Ahmed al-Sayed.
“In the region we plan to invest (initially) between $15bn and $20bn… it could be more… it could be less. It depends on the time. The timing and market situation will govern our final decision to execute investments. But we have a good appetite. That will give us good diversification of our portfolio as a global fund,” al-Sayed, also the Minister of State told reporters on the sidelines of the 6th annual meeting of the International Forum of Sovereign Wealth Funds (IFSWF) at the Ritz-Carlton………………………………….Full Article: Source

Qatar in talks to fund UK high-speed rail plan

Posted on 21 November 2014 by VRS  |  Email |Print

Qatar is interested in investing billions of dollars in infrastructure around the north of England, the Financial Times reported on Tuesday. The report claimed the Qatari royal family has informed British ministers it is interested in investing in infrastructure opportunities around the new HS2 high-speed rail line, which will link London to Birmingham, then Leeds and Manchester.
The opportunity was discussed last month when the Emir, Sheikh Tamim bin Hamad Al Thani, met with British Prime Minister David Cameron. “The Prime Minister … encouraged the Emir to consider more opportunities across the country, particularly the government’s plan to establish a Northern Powerhouse by connecting our great Northern cities and the development of high speed rail,” a statement issued after the Emir’s visit said………………………………….Full Article: Source

Drop in oil prices takes no toll on sovereign funds - IFSWF chairman

Posted on 21 November 2014 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) are not likely to be influenced by the current fall of oil prices, chairman of the International Forum for Sovereign Wealth Funds (IFSWF) Bader Al-Saad said on Thursday. SWFs mostly depend on long-term investments and do not react to a rise or fall of goods prices,, Al-Saad told KUNA on the sidelines of the Sixth IFSWF that kicked off in Doha earlier today.
Many countries are affected by the changes of oil prices, like the Gulf Arab States, just as others are impacted by the fluctuations major goods, Al-Saad said. He noted that Asian countries are hit by the slowdown of the global economy since they export to the US and Europe………………………………….Full Article: Source

Volatile oil prices ‘won’t affect Qatar wealth fund plans’

Posted on 21 November 2014 by VRS  |  Email |Print

Volatile oil prices will not force the Qatar Investment Authority (QIA) to change its investment strategy, the sovereign wealth fund’s chief executive said on Thursday. A plunge in prices - benchmark Brent crude fell to more than a four-year low of below $77 per barrel last week - is hitting the finances of Gulf Arab oil exporting countries, which rely on crude and gas sales for most of state revenue.
“In QIA, we have a long-term strategy, which accounts for the volatility in the market,” Ahmed al-Sayed told reporters on the sidelines of the industry conference in Doha. “We are adjusted and ready for such a scenario.” Asked whether there will be a short-term adjustment, he told a news conference: “No, I don’t think so. We evaluate the market from time to time.”…………………………………Full Article: Source

SWFs’ Doha meeting adopts three-year strategic plan to enhance investments

Posted on 21 November 2014 by VRS  |  Email |Print

World’s leading sovereign wealth funds (SWFs) yesterday unanimously agreed upon a “Doha Agreement”, adopting a three-year strategic plan to ensure free flow of long-term global capital and strong real returns for the progeny; even as they asked recipient countries to be more transparent.
Moreover, 21 more countries are planning to establish SWFs; these were disclosed by the International Forum of SWFs (IFSWF), which held its sixth annual meeting here, hosted by the Qatar Investment Authority (QIA). The strategic plan, agreed by IFSWF, seeks to leverage those strengths to work towards becoming an important global reference on the governance, investment and operational practices of IFSWF-member SWFs………………………………….Full Article: Source

IFSWF members sign “The Doha Agreement” in Qatar

Posted on 21 November 2014 by VRS  |  Email |Print

Members of the International Forum of Sovereign Wealth Funds (IFSWF) signed “The Doha Agreement” at their sixth annual meeting in the Qatari capital on Thursday. The Doha Agreement guarantees IFSWF’s independency, legal personality, independent budget, and headquarters in London, UK, after being affiliated with the International Monetary Fund (IMF).
“I am pleased that this year’s event has achieved concrete steps toward delivering on a three-year strategy which we believe will have value for our members and for global markets more broadly,” Bader Al-Saad, IFSWF Chair and CEO of Kuwait Investment Authority (KIA) said during the meeting, according to a press release by IFSWF………………………………….Full Article: Source

Sovereign fund forum has no plan to include central banks - official

Posted on 21 November 2014 by VRS  |  Email |Print

The International Forum of Sovereign Wealth Funds (IFSWF) will not invite central banks to join its ranks as they do not fit the group’s definition of such a fund, a board member said on Thursday.
The forum, a grouping founded with International Monetary Fund backing that promotes a voluntary code of practice, said in September it would explore whether to take in a wider pool of state-backed investors including central banks………………………………….Full Article: Source

World Bank underscores SWFs’ role in improving access to risk capita

Posted on 21 November 2014 by VRS  |  Email |Print

Sovereign Wealth Funds (SWFs) play a vital role in providing small and medium-sized enterprises (SMEs) improved access to risk capital, which could help contribute to job generation and sustained growth, a World Bank official said.
Michel Noel, manager, Non-Bank Financial Institutions of the World Bank, made the statement during a special luncheon address at the 6th Annual Meeting of the International Forum of Sovereign Wealth Funds (IFSWF) held yesterday at the Ritz-Carlton Doha………………………………….Full Article: Source

RDIF joins International Forum of Sovereign Wealth Funds

Posted on 21 November 2014 by VRS  |  Email |Print

The Russian Direct Investment Fund (RDIF) is representing Russia at the International Forum of Sovereign Wealth Funds (IFSWF) - an organisation that brings together the world’s leading sovereign wealth funds and government-run pension funds.
During the meeting, currently taking place in Doha (Qatar), senior executives of 28 sovereign wealth funds signed agreements and in doing so concluded the process of establishing the IFSWF as an independent professional association. Due to the growing influence of sovereign wealth funds on the global economy and their investment activities not being politically driven, the IFSWF became independent from the International Monetary Fund………………………………….Full Article: Source

RDIF Funneling More Chinese, Middle Eastern Money Into Russia

Posted on 21 November 2014 by VRS  |  Email |Print

The $10 billionRussian Direct Investment Fund is funneling more Chinese and Middle Eastern money into Russia’s ailing economy, partly compensating for a decline in Western-led activity in the face of geopolitical tensions.
Since its formation four years ago, the Russian state investment fund has invested $7.3 billion in Russia’s economy. It plans to continue at a similar pace with total annual investments of around $2 billion, of which up to a fifth will be marked for transactions abroad, Chief Executive Kirill Dmitriev said in an interview………………………………….Full Article: Source

‘Be fair’ as 1MDB does good things too, deputy minister tells critics

Posted on 21 November 2014 by VRS  |  Email |Print

Deputy Finance Minister Ahmad Maslan revealed today that 1Malaysia Development Berhad (1MDB) had spent a total of RM382.3 million on social initiatives, making it the biggest contributor among state-owned companies. In an attempt to deflect the bad publicity the government investment firm has been getting in the past months, Ahmad appealed to the public to look at the fund’s “positive” efforts.
“Be fair to 1MDB. Don’t only be cynical. Look at it positively,” he said at a press conference in Parliament. Topping the list in 1MDB’s corporate social responsibility drive is the annual haj pilgrimage, for which the sovereign wealth fund had spent RM28.2 million since 2011………………………………….Full Article: Source

banner
banner
banner
banner
November 2014
M T W T F S S
« Oct   Dec »
 12
3456789
10111213141516
17181920212223
24252627282930