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Sovereign Wealth Funds Briefing - Archive | April, 2015

South Korea’s sovereign-wealth fund is bidding to buy a stake in Los Angeles Dodgers

Posted on 30 April 2015 by VRS  |  Email |Print

Efforts by South Korea’s sovereign-wealth fund to buy a minority stake in the Los Angeles Dodgers have helped put the Major League Baseball team’s ownership in play, said people with knowledge of the situation. “A number of organizations have expressed an interest in investing,” said a person close to the Dodgers, adding that “as of this point, none have gone beyond the point of discussion.”
The talks come at a time when private-equity practitioners and sovereign-wealth funds are increasingly interested in owning major-league sports franchises. Lucrative broadcast rights, merchandising opportunities, sponsorship revenue, and prospects to expand the teams’ presence in Asia help drive demand for such deals………………………………………..Full Article: Source

Norway’s sovereign oil fund earns more than government spends

Posted on 30 April 2015 by VRS  |  Email |Print

Norway’s $916bn oil fund on Wednesday trumpeted its best-ever quarterly return, boosted by monetary stimulus in Europe that put a rocket under the region’s stock markets. The Government Pension Fund Global, which invests Norway’s oil wealth, made more money in the first three months of the year than the government spent in the same period — and then some.
The fund returned 5.3 per cent, or NKr401bn ($53bn), in the first quarter, which its manager Norges Bank Investment Management said was its best ever performance, although this was flattered by weakness in the kroner………………………………………..Full Article: Source

Norwegian sovereign wealth fund achieves highest quarterly return

Posted on 30 April 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund achieved a return of 5.3 percent, or 401 billion kroner (53 billion U.S. dollars), in the first quarter of 2015, the highest ever quarterly return in krone terms, the fund said on Wednesday.
Previously the two best quarters in the fund’s history in krone terms were back in 2009 when the fund returned 270 billion kroner in the second quarter and 325 billion kroner in the third, according to a statement of the fund, formally known as the Government Pension Fund Global (GPFG) and ranked as the world’s biggest sovereign wealth fund………………………………………..Full Article: Source

Norway Wealth Fund Has Record Gain as ECB Feeds Stock Surge

Posted on 30 April 2015 by VRS  |  Email |Print

The world’s largest sovereign wealth fund gained a record 401 billion kroner ($53 billion) in the first quarter after unprecedented monetary stimulus drove up the value of its equity holdings. The 5.3 percent increase in the first three months of the year was driven by a 7.5 percent rise in its stock portfolio, the $900 billion fund said in Oslo on Wednesday. Its bonds returned 1.6 percent while real estate rose 3.1 percent.
“There were big price movements in the European market,” Yngve Slyngstad, chief executive officer of the fund, said in a statement. “After a weak return on European stocks last year, the market rallied in the first quarter.”……………………………………….Full Article: Source

Biggest Wealth Fund Joins Bond Bears in Bet Europe Rally Fading

Posted on 30 April 2015 by VRS  |  Email |Print

Norway’s $900 billion sovereign wealth fund is joining Janus Capital’s Bill Gross and Jeffrey Gundlach of Doubleline Capital in betting Europe’s historic bond rally is coming to an end.
Yngve Slyngstad, the manager of the Oslo-based fund which on Wednesday reported a record investment return, said he is weighting a 2.5 trillion-krone ($328 billion) bond portfolio to shorter maturities, meaning it will outperform when rates rise. “As long as interest rates are stable, or falling, we will be lagging the broader markets as we have a shorter maturity in the portfolio,” Slyngstad said in an interview………………………………………..Full Article: Source

Norway oil fund is hedging currency risk

Posted on 30 April 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund has started to systematically hedge its equity investments against currency risk amid a more volatile currency market, the fund’s manager said Wednesday, after the fund posted its biggest ever quarterly gain measured in Norwegian kroner.
“Currency markets are more volatile,” Norges Bank Investment Management Chief Executive Yngve Slyngstad told The Wall Street Journal in an interview Wednesday. “This means we are spending more time considering currencies when we invest.”……………………………………….Full Article: Source

SOFAZ CIO Mammadov Talks About Alternative Investments

Posted on 30 April 2015 by VRS  |  Email |Print

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) was launched in 1999 to manage the country’s burgeoning oil and gas revenues; today, the fund manages some $37.1 billion in assets. SOFAZ is an extra-budgetary institution as well as a stabilization fund — it has responsibilities to the government and national development projects. This means that it needs ready access to liquid assets, and it consequently keeps most of its portfolio in government bonds.
In recent years, however, SOFAZ has started to implement a more adventurous strategy, diversifying its portfolio by adding alternative assets such as private equity, infrastructure and real estate. Israfil Mammadov, SOFAZ’S CIO and deputy CEO, spoke to Sovereign Wealth Center’s David Evans about the fund’s diversification drive. The transcript has been edited for space, grammar and context………………………………………..Full Article: Source

Oman fund, Spanish firm to finance Spanish companies abroad

Posted on 30 April 2015 by VRS  |  Email |Print

Oman’s largest sovereign wealth fund and Spain’s Compania Espanola de Financion del Desarollo have agreed to establish a fund, initially 200 million euros ($220 million) in size, to finance Spanish firms, the Omani fund said on Wednesday.
The State General Reserve Fund (SGRF) said it had reached the agreement after talks between the Omani and Spanish governments. The SGRF is estimated to have assets of about $13 billion, according to the Sovereign Wealth Fund Institute, which tracks the industry………………………………………..Full Article: Source

Abu Dhabi invests in top Hong Kong hotels

Posted on 30 April 2015 by VRS  |  Email |Print

A venture backed by the Gulf state is to snap up a clutch of Hong Kong’s top hotels in a deal with conglomerate New World Development for HK$18.5bn, one of the biggest hotels deals to have taken place in Asia.
On Thursday NWD said it and its subsidiaries had struck a deal with a subsidiary of the Abu Dhabi Investment Authority to form a joint venture under which they will co-own the Grand Hyatt Hong Kong, Renaissance Harbour View and Hyatt Regency TST with the Middle Eastern sovereign wealth fund………………………………………..Full Article: Source

New World Sells Hotels to Abu Dhabi Venture for $2.4 Billion

Posted on 30 April 2015 by VRS  |  Email |Print

New World Development Co., controlled by the family of Hong Kong billionaire Cheng Yu-tung, said it will sell three hotels to a joint venture with Abu Dhabi Investment Authority for HK$18.5 billion ($2.4 billion). New World Development will receive HK$10 billion in cash for the sale, the company said in a statement to the Hong Kong stock exchange. A unit of the developer will hold 50 percent of the venture, with Abu Dhabi Investment owning the rest, it said.
The sale follows New World’s previous attempt to spin off its hotel unit in 2013, which sought to raise as much as $1 billion, people with knowledge of the matter said then………………………………………..Full Article: Source

Temasek raises bets on Indian pharma sector

Posted on 30 April 2015 by VRS  |  Email |Print

Temasek Holdings (Pvt.) Ltd, an investment firm based in Singapore, has invested more than $600 million to buy stakes in three Indian drug makers over the past six months, raising its bets on the Indian pharmaceutical industry that has given investors among the highest returns over the past few years.
Two of these deals were in publicly traded firms—Sun Pharmaceutical Industries Ltd and Glenmark Pharmaceuticals Ltd. The third investment was in Intas Pharmaceuticals Ltd. The three transactions were ranked among the top five private equity (PE) deals in the pharmaceutical sector over the last five years, according to data from researcher VCCEdge………………………………………..Full Article: Source

Future Fund Boosts Assets, Chairman Gives Warning

Posted on 30 April 2015 by VRS  |  Email |Print

Future Fund posted positive returns for the first nine months of Fiscal Year 2014-2015. As of March 31, 2015, the Future Fund stands at A$ 117 billion in assets, posting a 15.1% return for the first nine months of the fiscal year. Asset owners such as sovereign wealth funds and large pensions are concerned about the expanding amount of liquidity being pumped into global financial markets.
Chairman Peter Costello of the Future Fund said in a press release, “Given the enormous monetary stimulus around the world, asset prices are generally fully priced and in some cases overpriced.” Costello added, “We remain focused on achieving the return target while avoiding excessive risk and this is particularly important as policy makers globally adjust setting with a view to delivering sustainable growth.”……………………………………….Full Article: Source

Future Fund posts 20pc one-year return

Posted on 29 April 2015 by VRS  |  Email |Print

The $117 billion Future Fund has returned 20 per cent over the past 12 months and 15 per cent for the first nine months of the financial year. In a portfolio update as at 31 March 2015, the sovereign wealth fund announced a one-year return of 19.9 per cent, which is well above its target return of 6.1 per cent.
Since 2006, Future Fund has generated investment returns of $56.5 billion on the original contributions from government which were valued at $60.5 billion at the time of transfer. Future Fund chair Peter Costello said the fund’s “patient and disciplined approach to investing for the long term has delivered well”………………………………………..Full Article: Source

Future Fund tops up on cash, warns some assets “overpriced”

Posted on 29 April 2015 by VRS  |  Email |Print

The Future Fund has increased its cash holdings to 15 per cent over the last quarter, signifying a growing sense of caution at Australia’s sovereign wealth fund as it seeks safe haven at a time of record low interest rates and “overpriced” assets. More than $17 billion, or 15.2 per cent of the fund’s assets were held in low-returning cash at the end of the March quarter, up from $14 billion or 12.8 per cent at the end of the December quarter.
Fund managers tend to move to cash to protect their investments from losses in the event of a downturn. But a macro-economic environment dominated by ultra-low rates and even negative yields in some parts of the world means that in this cycle, cash returns will be poor………………………………………..Full Article: Source

Future Fund tops up on cash, warns some assets “overpriced”

Posted on 29 April 2015 by VRS  |  Email |Print

The Future Fund has increased its cash holdings to 15 per cent over the last quarter, signifying a growing sense of caution at Australia’s sovereign wealth fund as it seeks safe haven at a time of record low interest rates and “overpriced” assets.
More than $17 billion, or 15.2 per cent of the fund’s assets were held in low-returning cash at the end of the March quarter, up from $14 billion or 12.8 per cent at the end of the December quarter. Fund managers tend to move to cash to protect their investments from losses in the event of a downturn. But a macro-economic environment dominated by ultra-low rates and even negative yields in some parts of the world means that in this cycle, cash returns will be poor………………………………………..Full Article: Source

Australia’s Future Fund returns 15.1 per cent, but future high returns hard to match

Posted on 29 April 2015 by VRS  |  Email |Print

Australia’s sovereign wealth manager, the Future Fund, returned 15.1 per cent for the first nine months of the financial year on strong growth for all of its asset classes, but warned that recent high returns would be hard to match in the future.
The fund set up in 2006 by the federal government to cover pension liabilities for its public servants, grew to A$117 billion (US$92 billion) by the end of March, it said in a statement. Established with contributions of $60.5 billion, the fund’s return for the financial year to date is higher than its three- and five-year returns of 14.9 per cent and 11.6 per cent, respectively………………………………………..Full Article: Source

Singapore’s sovereign wealth fund GIC acquires 63.9% stake in Nirlon

Posted on 29 April 2015 by VRS  |  Email |Print

Reco Berry Private Ltd, an affiliate of GIC, Singapore’s sovereign wealth fund, said it is acquiring 63.9 per cent for Rs 1,280 crore in real estate firm Nirlon. The stake is being acquired at Rs 222 per share and is pursuant to the open offer and agreements with shareholders of the company. The company said that acquisition of 28.4 per cent stake under the open offer has been completed. Reco Berry is in the process of acquiring 35.5 per cent under the agreements.
Nirlon was originally a nylon textile yarn and conveyor belt maker. The company turned sick in the 80s and had been moving out of manufacturing business and eventually turned into a real estate player. Its realty assets were essentially surplus land previously housing its manufacturing units. Currently, it owns Nirlon Knowledge Park (NKP), an IT office park located in Mumbai………………………………………..Full Article: Source

World’s Largest Sovereign Wealth Funds (Video)

Posted on 29 April 2015 by VRS  |  Email |Print

With investments worth more than many countries GDPs - the world’s largest sovereign wealth funds are a force to be reckoned with. The biggest got their cash from oil. The funds are often secretive and difficult to scale. Bloomberg checks out the world’s five largest sovereign wealth funds.……………………………………….Full Article: Source

SWFs Continue Global Hunt for Properties of Varied Stripes

Posted on 29 April 2015 by VRS  |  Email |Print

Sovereign wealth and public pension funds grabbed a series of headlines in 2014 as they bought up expensive properties in developed markets. Prime office properties in so-called gateway cities like London, New York and Paris attracted the lion’s share of sovereign funds’ capital, accounting for $13.8 billion of the $23 billion they spent on global real estate, according to Sovereign Wealth Center data. Of the major business centers, funds favored London, which received $4 billion in investments in 2014.
In the U.S., however, sovereign funds looked beyond New York, the traditional favorite, and targeted other major cities including Boston, Los Angeles, San Francisco and Washington, D.C. In the U.S. capital alone sovereign wealth funds bought four office buildings for a total of $733 million………………………………………..Full Article: Source

Russian FinMin Siluanov Warns Large Deficit Could Consume Reserves

Posted on 29 April 2015 by VRS  |  Email |Print

Russian state-owned companies have lobbied the Kremlin for “loans and capital injections” from the country’s two large sovereign wealth funds, the National Welfare Fund and Reserve Fund. Western sanctions have affected Russian state-owned enterprises (SOE) from tapping Western capital markets for funding.
Russian Finance Minister Anton Siluanov warned that Russia could use up all of its Reserve Fund in 18 months if spending is not carefully monitored. TASS news agency reported Siluanov speaking to students in St. Petersburg, “This year we will use up to 3 trillion rubles [US$ 59 billion] of the Reserve Fund’s 5 trillion [US$ 98 billion], that is, we could basically use it up in a year and a half if we don’t approach our budget policy responsibly.”……………………………………….Full Article: Source

Netherlands and Azerbaijan do business

Posted on 29 April 2015 by VRS  |  Email |Print

The strength of Dutch–Azerbaijani relations was acknowledged during the inaugural Netherlands–Azerbaijan Business Forum on 23 April at the Maastricht School of Management (MSM), organised by MSM, The Province of Limburg, The European Azerbaijan Society (TEAS), AZPROMO and the Netherlands Council for Trade Promotion (NCH). Around 250 delegates attended the event, including more than 50 Azerbaijani business leaders drawn from all sectors of the country’s economy.
Shahmar Movsumov, CEO, State Oil Fund of the Azerbaijani Republic (SOFAZ), explained: “Natural resources can be both a blessing and curse. Azerbaijan is currently passing through its second oil boom. SOFAZ has created around $40bn of revenues, and is a global investor in all asset classes.”……………………………………….Full Article: Source

Abu Dhabi fund part of $1.9bn lawsuit against Norway gov’t

Posted on 29 April 2015 by VRS  |  Email |Print

An Oslo court started to hear a $1.9 billion lawsuit by a group of international investors against Norway on Monday, in a case that challenges the country’s reputation as a predictable place to do business with little political risk.
Investors including Allianz, UBS, the Abu Dhabi Investment Authority and two Canadian pension funds are suing Norway over its decision to cut tariffs for using the Gassled pipeline network, arguing it was liable for the 15 billion crowns ($1.9 billion) in lost earnings they would suffer as a result through 2028………………………………………..Full Article: Source

Qatari group buys Paddy McKillen’s stake in London luxury hotels

Posted on 28 April 2015 by VRS  |  Email |Print

Developer Paddy McKillen’s stake in three luxury London Hotels – Claridges, the Berkeley and the Connaught – has been bought by the Constellation Hotels Group. Qatar-based Constellation Hotels acquired Mr McKillen’s 36 per cent shareholding in the Maybourne Group, which is the owner and operator of the three hotels.
According to an agreement between them, Mr McKillen will continue to lead, direct and develop these assets. Constellation Hotels, which is owned by Qatar Holding, the sovereign wealth fund backed by the Qatari royal family, purchased the other 64 per cent stake in Maybourne last week for an undisclosed sum, believed to be more than £2 billion………………………………………..Full Article: Source

Qatar towers over others as it buys up the capital city’s skyline

Posted on 28 April 2015 by VRS  |  Email |Print

Qatar’s sovereign wealth fund spent the most on property assets in London out of any company or organisation last year as it tightened its grip on the capital’s skyline.
The Qatar Investment Authority, which already owns or has stakes in the Shard, Harrods, the Chelsea Barracks and the Olympic athletes’ village among many others, invested £1.9 billion in London’s property market in 2014………………………………………..Full Article: Source

Why Qatar Bought Claridge’s

Posted on 28 April 2015 by VRS  |  Email |Print

Never let it be said that Qatar doesn’t like a trophy asset. Where many sovereign wealth funds stay in the background, carefully building balanced portfolios and eschewing the limelight, the Qatar Investment Authority and its subsidiaries like to make a statement. This is nowhere more true than in London, where its landmark assets include Harrods, the Shard and (sort of) Canary Wharf. But is it good business?
The buyer is Constellation Hotels, which is part of the Qatar Holding investment subsidiary of the QIA; its purchase is a 64% stake of Coroin, a luxury hotel group that holds the three hotels……………………………………….Full Article: Source

QIA Hunts for Hotels

Posted on 28 April 2015 by VRS  |  Email |Print

The Qatar Investment Authority made progress on two big London real estate deals this week. Elsewhere, Singapore’s state-owned asset managers continue to target India and Norway made a big investment in U.S. logistics properties.
It’s been a busy month for the Qatar Investment Authority (QIA). Sovereign Wealth Center research suggests that the fund spent some $2.3 billion on shares in Royal Dutch Shell and BG Group following their merger on April 8. Now QIA has turned to augmenting its real estate portfolio………………………………………..Full Article: Source

What’s Behind Qatar’s $2.3 Billion Bet on Shell’s BG Takeover?

Posted on 28 April 2015 by VRS  |  Email |Print

The Qatar Investment Authority amassed major positions in both Royal Dutch Shell and BG Group after the two companies agreed to merge earlier this month. What’s its game? The oil and gas industry is primed for an M&A boom. And on April 8, Royal Dutch Shell announced it was offering to buy Reading, U.K.-based BG Group, the former exploration and production arm of British Gas, in a deal worth British Pound 47 billion ($70.2 billion).
Sovereign wealth funds’ responses to the proposed deal in the week following the announcement were largely ignored by the media. Norges Bank Investment Management , the arm of Norway’s central bank that manages the $861 billion Government Pension Fund Global, added BG shares to its portfolio, which also includes a 5 percent stake in Shell. Qatar Investment Authority bought 67 million shares in Shell (a 2.75 percent stake) and 12 million in BG (a 0.39 percent stake) in the wake of the deal. The total cost? $2.3 billion — big money even for the Qataris………………………………………..Full Article: Source

Qatari Diar plans two new hotels in North Africa

Posted on 28 April 2015 by VRS  |  Email |Print

Major real estate group Qatari Diar, wholly-owned by the Qatari Investment Authority, has partnered with leading global hotel operator Minor Hotel Group (MHG) to develop two new Anantara resorts in North Africa, to open in 2017.
Anantara Tozeur Resort is a new luxury escape being developed by Qatari Diar in the southwest of Tunisia, in the city of Tozeur. This new-build Anantara will offer 93 luxurious guest rooms and villas, including pool villas, a selection of restaurants and bars, meeting and business facilities, kids and teens clubs, a health club and an Anantara Spa………………………………………..Full Article: Source

Omani sovereign fund sues Bulgaria over CCB saga, lawyer claims

Posted on 28 April 2015 by VRS  |  Email |Print

An Omani sovereign fund that held 30 per cent in Bulgaria’s Corporate Commercial Bank (CCB) has lodged court action against Bulgaria, seeking damages of 700 million euro, a lawyer for CCB’s majority shareholder claimed on April 27. The fund sought damages for the way Bulgarian state institutions treated CCB, Konstantin Simeonov told a Bulgarian breakfast TV show, but gave no further details and could not name the court where the complaint was filed, saying that it was an “European institution”.
CCB was put under the central bank’s administration on June 20 2014, which suspended shareholder rights – including those of Omani-owned Bulgarian Acquisition Company II S.a.r.L., which held 30 per cent in the bank. The lender was declared insolvent last week, starting on November 6 2014, when it lost its banking licence………………………………………..Full Article: Source

Abu Dhabi removes Jho Low contact

Posted on 28 April 2015 by VRS  |  Email |Print

The UK-based website Sarawak Report has learnt that Penangite Jho Low’s key contact at Aabar Investments, Abu Dhabi’s sovereign wealth fund, has been removed from the majority of his posts in the Gulf State.
The contact, identified as Khadem al Qubaisi, has stepped down as Chairman of the International Petroleum Investment Company (IPIC), a major sovereign wealth fund, a few days after losing the Chairmanship of Arabtec. He has also lost the chairmanship of Aabar Properties, a subsidiary of Aabar Investments………………………………………..Full Article: Source

Sovereign Wealth Funds Spice Up Deal Activity in Asia

Posted on 28 April 2015 by VRS  |  Email |Print

Sovereign wealth funds continue to expand their reach in a variety of transactions across Asia. The Qatar Investment Authority (QIA) is competing against Goldman Sachs on the acquisition of the Keangnam Hanoi Landmark Tower. The 72-story tower is the tallest building in Hanoi and is worth an estimated US$ 1 billion. Korea-based Keangnam Enterprises, Ltd is the developer and seller of the tower.
Goldman Sachs’ offer would be assuming project-financing debt of US$ 900 million and formation of a special purpose vehicle to take over control of the tower. The QIA’s offer is to acquire the whole tower for US$ 800 million in cash. The New York office of Colliers International is the lead manager of the sale. Major companies such as KPMG, Standard Chartered and PwC have reserved space to setup offices in the tower………………………………………..Full Article: Source

Singapore Sovereign Fund, Norwest Venture Partners Invest $ 28 million in Sulekha.com

Posted on 28 April 2015 by VRS  |  Email |Print

GIC, the sovereign wealth fund of Singapore, and Norwest Venture Partners, a global investment firm, have invested $28 million in Sulekha.com, India’s leading digital platform for local services. Sulekha will use the capital to further expand its platform that connects one of the largest bases of users and local service providers, and invest in technology and branding.
“Sulekha was founded in Austin as a tiny website serving Indians in the U.S., and this investment by GIC and Norwest is a powerful endorsement of the vast potential of the local services opportunity and Sulekha’s ability to prosecute it y both within and outside of India,” Satya Prabhakar, founder and CEO of Sulekha.com, said in a press release. (Press Release)

Aust fund tops Global Climate Index

Posted on 28 April 2015 by VRS  |  Email |Print

Australian super funds on average are managing climate change risk well, with Local Government Super topping a list of the world’s top-500 asset owners. BUT the Future Fund, Telstra Super and Asgard scored poorly on this year’s Global Climate Index.
On average, Australian funds come in second behind Norway in the Assets Owners Disclosure Project’s annual report. Local Government Super reclaimed top spot in 2014/15 after slipping to second last year………………………………………..Full Article: Source

ISIF May Allocate €1 Billion to Irish Projects for 2015

Posted on 28 April 2015 by VRS  |  Email |Print

Irish Strategic Investment Fund (ISIF), a strategic development sovereign wealth fund (SDSWF), plans to allocate between €500 million and €1 billion to projects and investments in Ireland for the remaining part of the year. The ISIF has a number of mandates which include generating commercial returns, boosting Ireland’s economy and domestic job creation.
The ISIF is looking at over 100 proposals, building a pipeline of deals. Some allocations have been in Movidius and Malin Corporation. ISIF is also investigating opportunities to fill the investment gap in residential development construction. ISIF manages the remaining €7.4 billion left from the National Pension Reserve Fund (NPRF). ISIF is run by Ireland’s National Treasury Management Agency………………………………………..Full Article: Source

Global investors start $1.9 bln lawsuit against Norway

Posted on 28 April 2015 by VRS  |  Email |Print

An Oslo court started to hear a $1.9 billion lawsuit by a group of international investors against Norway on Monday, in a case that challenges the country’s reputation as a predictable place to do business with little political risk.
Investors including Allianz, UBS, the Abu Dhabi Investment Authority and two Canadian pension funds are suing Norway over its decision to cut tariffs for using the Gassled pipeline network, arguing it was liable for the 15 billion crowns ($1.9 billion) in lost earnings they would suffer as a result through 2028………………………………………..Full Article: Source

Norway to clean up sovereign wealth fund

Posted on 28 April 2015 by VRS  |  Email |Print

Norway would bar its state pension fund, the world’s biggest sovereign wealth fund, from investing in the worst climate-polluting companies. In its annual white book on managing the fund, the right-wing government proposed to “introduce a new criterion to exclude companies whose conduct to an unacceptable degree entail greenhouse gas emissions.”
The proposal did not mention any companies by name. The new rule is in line with experts’ recommendations in a December report, though its conclusions had left environmentalists and the political opposition disappointed. They had wanted to see the fund - which is valued at 835 billion euros ($885 billion), fuelled by Norway’s state oil revenues - divest all of its holdings in companies linked to fossil fuels………………………………………..Full Article: Source

GIC raises stake in Mumbai IT park Nirlon to 63.9% for $90M through open offer

Posted on 24 April 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has raised its holding in public listed Mumbai IT park firm Nirlon Ltd to 63.92 per cent by acquiring more shares in the open offer for Rs 568.32 crore ($90 million). This completes a rare control-style deal for a sovereign wealth fund in India. GIC had previously struck a deal to buy up to 39.2 per cent stake in the company last December last year. This was conditional upon the acceptance ratio in the open offer.
It had made an open offer to buy 28.4 per cent stake from the public and said if it is able to garner over 21.7 per cent stake through this route, it would buy only 5 per cent stake from the promoters for Rs 100 crore besides 29 per cent stake from two institutional investors for Rs 584 crore at Rs 222 a share each………………………………….Full Article: Source

Khazanah Nasional targets EU markets, new industries for investments

Posted on 24 April 2015 by VRS  |  Email |Print

Sovereign investment firm Khazanah Nasional Bhd will look into European markets, as well as “newer industries” locally to invest this year on. A new region Khazanah Nasional is looking to venture into is the UK and Europe, which it will open up a London office for by the end of this year. The firm already has four international offices in big cities like Beijing, Mumbai, Istanbul and San Francisco.
Managing director Azman Mokhtar said the firm is ready to open an office in London looking at opportunities post the currency crisis.”Previously, we didn’t think we were ready for that market but after the Eurozone crisis, we are ready to open our London office. It will be later in the year,” he said, “That loop of offices is complete for now, we don’t think we need more for the area we want to cover currently.”…………………………………Full Article: Source

Khazanah firm on its turnaround plan for MAS

Posted on 24 April 2015 by VRS  |  Email |Print

Khazanah Nasional Bhd, the owner of Malaysia Airlines, is firm on its decision to reduce the number of the airline’s employees by 6,000 people, even as it gives more time to incoming chief executive officer (CEO) Christoph Mueller to choose his team. The plan to retrench more than 25% of MAS’ workers is being protested by the airline’s workers’ unions.
“We have done our part in assessing MAS staff and the new company (newco) slated to be officially established on July 1 which will only need 14,000 workers in relation to our own projection of fleet size and operation as planned………………………………….Full Article: Source

MAS job cuts needed to avoid yet another rescue, says Khazanah

Posted on 24 April 2015 by VRS  |  Email |Print

The downsizing at Malaysia Airlines Bhd (MAB) cannot be avoided if the new national carrier is to be sustainable, controlling shareholder Khazanah Nasional Bhd said today amid complaints by staff unions.
According to Khazanah, MAB must trim 6,000 jobs to reach a more sustainable 14,000 headcount, but has tried its best to do the exercise properly and humanely by offering jobs elsewhere. “The point of NewCo is going to a new ship with a size and business practices that can work and be sustained,” Khazanah managing director Tan Sri Azman Mokhtar told reporters at the sidelines of Invest Malaysia 2015, using another name for MAB………………………………….Full Article: Source

Khazanah says ‘too early to tell’ if MAS revamp will be successful

Posted on 24 April 2015 by VRS  |  Email |Print

Malaysian state-owned investment arm Khazanah Nasional Bhd managing director Tan Sri Azman Mokhtar said it was still “too early to tell” if loss-making Malaysian Airline System (MAS) would be successfully turned around under its restructuring.
Khazanah had privatised and delisted MAS in December 2014 to restructure the airline within five years. MAS’s revamp follows two aviation mishaps involving the airline last year. These mishaps had resulted in MAS posting a net loss of RM1.33 billion in the nine months ended September 30, 2014 from a net loss of RM830.25 milllion a year earlier………………………………….Full Article: Source

Malaysia to have world’s largest syariah pension fund

Posted on 24 April 2015 by VRS  |  Email |Print

Malaysia’s state pension fund will offer a syariah-compliant investment option for its members by 2017, Prime Minister Datuk Seri Najib Razak said. This would create the largest syariah fund of its kind in the world, Najib said at the launch of an investment conference here. He did not specify how big he thought the syariah-compliant standalone fund could be.
Malaysia’s sovereign wealth fund Khazanah Nasional will add to the government efforts by issuing a RM1 billion socially responsible Islamic bond, which has now received regulatory approval, Najib added. The moves could help boost Malaysia’s economy, which has faced weakness due to the slump in oil prices and rising debt………………………………….Full Article: Source

Dr M: 1MDB is not sovereign wealth but sovereign debt

Posted on 24 April 2015 by VRS  |  Email |Print

Tun Dr Mahathir Mohamad pointed out today that Putrajaya will have to bear the losses incurred by 1 Malaysia Development Berhad (1MDB), noting it was the government that had invested in the troubled state-owned firm to begin with.
The former prime minister said 1MDB was “wrong” from the beginning, pointing out that the sovereign wealth fund was not put before Parliament. “If 1MDB loses money, the government will bear the loss,” Dr Mahathir wrote on his blog. “Yet the operation of 1MDB is not overseen by government officers responsible for the management of government funds,” he added………………………………….Full Article: Source

What China Share Rally? Best-Performing China Fund Expects More

Posted on 24 April 2015 by VRS  |  Email |Print

China’s shares are at a seven-year high and Blackstone Group LP is warning of stock-market excess. The manager of the best-performing long-only fund investing in the nation’s equities disagrees and says there’s more to come.
Small capitalization stocks, whose prices have as much as tripled, will see a major correction “in the years ahead,” said Wong, who worked for Singapore’s sovereign wealth fund GIC Pte from 1981 until 1985. Founded in 1995, APS serves institutional investors such as pension funds, endowments, foundations, family offices, funds of funds, and sovereign wealth funds, Wong said. More than half of the investors are based in North America, with the remainder evenly split between Asia, Europe and Australia, he said………………………………….Full Article: Source

Abu Dhabi’s IPIC announces major board revamp

Posted on 24 April 2015 by VRS  |  Email |Print

The UAE energy minister has been appointed the new managing director of Abu Dhabi investment fund International Petroleum Investment Company (IPIC) in a reshuffle of the board.
Suhail Mohammed al-Mazrouei has been named managing director of IPIC, the Emirates news agency WAM reported citing an emiri decree by Abu Dhabi ruler Sheikh Khalifa bin Zayed al-Nahyan. Mazrouei replaces Khadem al-Qubaisi, whose name is not listed in the decree. Qubaisi’s omission from the IPIC board comes days after he was excluded from board nominees at Arabtec Holding, where he had been serving as chairman………………………………….Full Article: Source

Qatari’s take majority stake in luxury London hotel group

Posted on 24 April 2015 by VRS  |  Email |Print

Qatar’s Constellation Hotels buys 64pc stake in the company which owns Claridges, The Berkeley and The Connaught. A Qatari investment vehicle has taken a majority stake in three of London’s most prestigious hotels in a landmark deal.
Constellation Hotels - which is owned by Qatar Holding, the sovereign wealth fund backed by the Qatari royal family - has bought a 64pc stake in Coroin, the holding company which owns the Maybourne Hotel Group, made up of Claridges, The Berkeley and The Connaught………………………………….Full Article: Source

Samruk Kazyna Plans to Open Subsidiary in Silicon Valley

Posted on 24 April 2015 by VRS  |  Email |Print

The Samruk Kazyna Sovereign Wealth Fund plans to establish a subsidiary in Silicon Valley, California. A working group consisting of the heads of a number of Samruk Kazyna companies, led by Chairman of the organisation Umirzak Shukeyev, visited companies of Silicon Valley on April 9-10, where they were acquainted with the work of Stanford University, Berkeley, as well as such well-known innovative companies as Tesla Motors, SolarCity and other start-up companies.
“The sides discussed the possibility of cooperation in the development of clean energy, gas chemistry, transport, medicine, agriculture, education and IT. In particular, they considered the possibility of creating Samruk Innovation, a company based in Silicon Valley,” said a Samruk Kazyna press release………………………………….Full Article: Source

What the BNY Mellon Forex Settlement Really Means for SWFs

Posted on 24 April 2015 by VRS  |  Email |Print

Regulators and law enforcement extracted a hefty fine for fraud at one of America’s most respected financial institutions. Have sovereign wealth funds learned their lesson?
To be sure, despite the size of the settlement, the numbers involved may not seem big by sovereign wealth standards. “One question here, is it material?” asks Patrick Schena, Adjunct Assistant Professor and Co-Head of the Fletcher Network for Sovereign Wealth and Global Capital at the Fletcher School of Tufts University outside Boston, who advises on custodial issues………………………………….Full Article: Source

Take that campaign promise to the bank — in 2020

Posted on 24 April 2015 by VRS  |  Email |Print

On Wednesday, Premier Paul Davis announced that in 2020 the government will start a “Generations Fund” — basically, a sovereign wealth fund, with a name that was probably tested in focus groups.
I’ve been asking about a sovereign wealth fund for at least four years now, and I remember then finance minister Tom Marshall always insisting that the government must first pay down the debt to a manageable level, and then put some of the oil revenue into a savings account………………………………….Full Article: Source

Australian sovereign fund joins Investa scrum

Posted on 23 April 2015 by VRS  |  Email |Print

The more than $109 billion Future Fund has waded into the contest for the Investa Property Group platform. It is highly likely Australia’s sovereign fund will partner with the ASX-listed DEXUS Property Group, sources said. However, the large sovereign funds and institutions have been advised not to enter exclusivity with managers such as DEXUS until the second round.
DEXUS has enlisted more than one capital partner. Sovereign wealth fund Abu Dhabi Investment Authority’s (ADIA) is also part of the consortium, it is understood. A shortlist for the $9 billion Investa Property Group will be drawn up by the end of next week with Morgan Stanley Real Estate Investing – which is exiting its Investa investment – keen to keep up the sale’s momentum……………………………………..Full Article: Source

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