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Sovereign Wealth Funds Briefing - Archive | May, 2015

China stocks plunge 6.5% after sovereign fund cuts stakes in banks

Posted on 29 May 2015 by VRS  |  Email |Print

Chinese stocks fell the most in four months on Thursday, as a selloff swept the financial sector after a unit of China’s sovereign-wealth fund reportedly cut its stakes in state-owned banks for the first time. The Shanghai Composite Index sank 6.5% to 4,620.27, pulling back from a seven-year closing high after a seven-day bull run.
That also marked its steepest daily percentage decline since Jan. 19, when the index dived 7.7% after China tightened up margin-trading rules. Hong Kong’s Hang Seng Index HSI, -0.20% also declined 2.2%, falling the most in more than five months. The mainland-China-tracking Hang Seng China Enterprises was down 3.5%………………………………Full Article: Source

China’s Sovereign Wealth Fund Sold Bank Shares: Why Is It Such A Big Deal?

Posted on 29 May 2015 by VRS  |  Email |Print

The Shanghai stock market dived 6.5% yesterday after the Hong Kong Stock Exchange disclosed that China’s domestic sovereign wealth fund Huijin had sold some of its bank holdings. Why is this news clip such a big deal? Huijin is the major shareholders of the Big Four banks and this is its FIRST divestment.
Since 2008, Huijin has bought altogether 855 million shares of ICBC (1398.Hong Kong) and 561 million shares of China Construction Bank (939.Hong Kong in five rounds. “Its actions were largely seen as a symbolic support to both the market and the banking sector,” wrote Deutsche Bank analyst Tracy Yu and team this morning………………………………Full Article: Source

Temasek arm set to start new home loan company in India

Posted on 29 May 2015 by VRS  |  Email |Print

Fullerton India Credit Co. Ltd, the non-banking financial company owned by Singapore’s state-run investment firm Temasek Holdings Pte Ltd, will set up a new home finance company to lend to people in the so-called affordable housing segment, buoyed by its recent success in retail lending in India.
“So far, we have kept away from housing finance because competition was tough and we could not compete with the banks on pricing. But now, with the network we have built, we think we can compete on pricing and also take advantage of the high returns this sector offers,” Shantanu Mitra, managing director and chief executive said on Thursday………………………………Full Article: Source

AGL, New Hope could be hit by Norway divestment drive but BHP and Rio safe

Posted on 29 May 2015 by VRS  |  Email |Print

AGL Energy and coal miner New Hope Corp could be the biggest casualties of a proposed directive by Norway’s parliament for the nation’s $US900 ($1.16 trillion) sovereign wealth fund to sell out of coal stocks. The plan would build on earlier steps by Norway’s Government Pension Fund Global (GPFG) to reduce its coal exposure and adds momentum to a global push for divestment from coal.
The GPFG is built on Norway’s oil wealth and the latest measure would capture power companies that depend on coal for more than 30 per cent of generation as well as miners that get 30 per cent of their revenues from thermal coal. The GPFG sold out of Whitehaven Coal last year. ……………………………..Full Article: Source

Norway fund could trigger wave of large fossil fuel divestments, say experts

Posted on 29 May 2015 by VRS  |  Email |Print

Other investors are likely to follow Norwegian fund’s move out of coal-based investments, due to its size as the world’s largest sovereign wealth fund. Norway’s decision to dump all coal-focused investments from its $900bn sovereign wealth fund could unleash a wave of divestment from other large funds, according to investment experts. The fund, the largest in the world, is one of the top 10 investors in the global coal industry.
The move, agreed late on Wednesday, is one of the most significant victories to date for a fast-growing and UN-backed fossil-fuel divestment campaign. It will affect $9bn-$10bn (£5.8-£6.5bn) of coal-related investments, according to the Norwegian government………………………………Full Article: Source

Norway’s sovereign wealth fund accused of ‘pretend divestment’

Posted on 29 May 2015 by VRS  |  Email |Print

World’s richest sovereign wealth fund increased its investments in coal despite high-profile pledge to dump fossil fuels, financial analysis shows. The world’s richest sovereign wealth fund has sunk more money into coal just three months after a high-profile pledge to dump fossil fuels as part of its commitment to responsible investing, according to financial analysis by three environmental groups.
Instead of reducing its overall exposure to businesses based on coal, the Norwegian Government Pension Fund (GPF) increased its holdings by 3bn Norwegian kroner to NOK 85.8bn ($11bn/£7.3bn) by the end of last year, the report Still Dirty, Still Dangerous said………………………………Full Article: Source

Coal divestment on tap at Norway’s Government Pension Fund Global

Posted on 29 May 2015 by VRS  |  Email |Print

The Government Pension Fund Global, Oslo, could be forced to divest its allocations to certain coal companies, following a unanimous decision by the finance committee of the Storting, the Norwegian parliament.
The divestment would apply to companies that derive 30% or more of their business from coal. The finance committee’s proposition will be voted on in parliament June 5, said a spokeswoman for Norges Bank Investment Management, the investment manager of the 7 trillion Norwegian kroner ($957 billion) sovereign wealth fund………………………………Full Article: Source

Norway’s Giant Oil Fund Will Divest From Coal. Irony Noted.

Posted on 29 May 2015 by VRS  |  Email |Print

Norway’s $900 billion sovereign wealth fund may soon have to drop its investments in the coal industry, thanks to a new set of rules making their way through the country’s parliament. Starting next year, the fund would be forced to pull its money from companies such as mining firms or utilities that make at least 30 percent of their revenue from coal, according to the Associated Press.
The law received bipartisan support in committee and is widely expected to pass during a final vote early next month. This is a notable victory for climate change activists who have been lobbying institutional investors to divest from fossil fuels. A number of university endowments and foundations have already joined the cause, but Norway’s sovereign wealth fund is the globe’s largest, laying claim to roughly 1 percent of all the world’s stocks and bonds. Environmentalists just landed a very, very big ally in their crusade………………………………Full Article: Source

Why Sovereign Wealth Funds Love Smart Beta

Posted on 29 May 2015 by VRS  |  Email |Print

“Today’s alpha is tomorrow’s smart beta,” Jay Willoughby, CIO of Alaska Permanent Fund Corp., told the sovereign wealth fund’s board of trustees in a pitch last December. During his Anchorage address, Willoughby called for $54.6 billion APFC to be an anchor investor in a new family of smart beta exchange-traded funds that it would design with a yet-to-be-determined partner. The proposed $1 billion allocation would join the fund’s four other smart beta and quasi-passive mandates, which already total nearly $5 billion.
No one in the investment community can ignore smart beta - index strategies that diverge from traditional market capitalization weighting techniques to capture well-documented risk factors such as value, momentum and low volatility. In the past decade smart beta ETFs have grown by more than $400 billion in the U.S. alone, according to Chicago-based Morningstar, which prefers the term strategic beta………………………………Full Article: Source

Account for $30bn excess oil money – Oshiomhole tasks Okonjo-Iweala

Posted on 29 May 2015 by VRS  |  Email |Print

Edo State Governor, Comrade Adams Oshiomhole, yesterday came for the Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, requesting her to account for an estimated $30 billion which should have accrued to the government based on the official oil exports of 2.3 million barrels per day.
Wondering why the management of public finance was shrouded in secrecy under her tenure, Oshiomhole called on the Finance Minister to tell Nigerians before leaving office how the economy was managed since her coming on board in 2011………………………………Full Article: Source

Singapore’s GIC Buys Stake in Brazil’s Hospital Operator Rede D’Or

Posted on 29 May 2015 by VRS  |  Email |Print

Singapore’s sovereign-wealth fund GIC Pte. Ltd. has agreed to buy an undisclosed stake in Brazilian hospital operator Rede D’Or São Luiz, investment bank BTG Pactual SA said on Thursday. BTG said GIC will pay 1.6 billion Brazilian reais ($508 million) for its shares in Rede D’Or.
According to Valor Economico newspaper, GIC agreed to acquire a total stake of 15.3% in Rede D’Or for 3.2 billion Brazilian reais, with the company’s founding Moll family and BTG selling equal stakes. A BTG spokesman declined to provide further details on Thursday. GIC and Rede D’Or representatives weren’t immediately available for comment………………………………Full Article: Source

Bahrain’s Mumtalakat sovereign wealth fund targets foreign acquisitions to fuel expansion

Posted on 28 May 2015 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund is targeting more acquisitions this year as it seeks to double its assets in the next five years. Mumtalakat, which posted net profit growth of 11 per cent last year to 91.6 million Bahraini dinars (Dh892.5m), plans to grow its assets, which reached US$7.2 billion at the end of June.
Profit rose despite a 64.6 per cent increase in impairments at 34.4m dinars, the wealth fund said. Revenue grew 11 per cent to 1.2bn dinars. “There are two ways that we grow our assets,” said Mahmood Al Kooheji, the chief executive. “Initially, the portfolio that we already have, there is potential to grow there. The other angle is that we are looking internationally and globally for new acquisitions to increase the value of the portfolio that we have.”………………………………..Full Article: Source

Bahrain Sovereign Fund Plans to Beat 2014 Foreign Deal Flow

Posted on 28 May 2015 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund intends to complete more acquisitions this year than in 2014 as it diversifies its international holdings and pursues a goal of doubling in size. Bahrain Mumtalakat Holding Co. completed four acquisitions in 2014, Chief Executive Officer Mahmood Al Kooheji said Wednesday in a telephone interview from Manama.
The fund has already made two acquisitions this year and expects to announce at least two more before the end of 2015, he said. Mumtalakat will continue to focus on co-investing with other firms to expand its $11.1 billion of assets in the next seven years, Kooheji said…………………………………Full Article: Source

Bahrain fund Mumtalakat rejects mismanagement claims as 2014 profit rises

Posted on 28 May 2015 by VRS  |  Email |Print

The head of Bahrain sovereign fund Mumtalakat has rebutted allegations made by some parliamentarians that the fund has been financially mismanaged, pointing on Wednesday to increased earnings as proof of its performance. The fund, which holds stakes in Bahraini companies including Aluminium Bahrain (Alba), Gulf Air and Batelco, posted a 10.8 per cent increase in net profit in 2014 as higher revenue outpaced a rise in impairments.
Gulf sovereign wealth funds are facing growing pressure to prove they are wisely investing national reserves, as lower oil prices force governments to consider cutbacks to infrastructure programmes and generous state subsidies. Earlier this year Bahrain’s parliament launched a probe of Mumtalakat, looking at alleged administrative violations at the fund after an audit report revealed irregularities at Bahraini state companies…………………………………Full Article: Source

Abu Dhabi Staffs Up with US Equity Hire

Posted on 28 May 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority (ADIA) has hired its first head of US equities for its internal team, the sovereign wealth fund has announced. John Pandtle joined from Eagle Asset Management where he was a portfolio manager. He spent five years at the Florida-based fund manager, and previously worked at its parent company Raymond James.
At ADIA Pandtle oversees a new team of US equity managers and is responsible for strategy within this sector of ADIA’s internal equities department. He has relocated from Florida to Abu Dhabi, and reports to Greg Eckersley, global head of internal equities. Pandtle’s appointment is the third significant equities hire made by ADIA in two years. Brian Tipple joined the sovereign wealth fund in September to oversee its third-party managers, while Suresh Sadasivan was appointed in August 2013 to run Asian equities……………………………………Full Article: Source

Norway’s $900bn sovereign wealth fund told to reduce coal assets

Posted on 28 May 2015 by VRS  |  Email |Print

Finance committee agrees fund which owns 1.3% of all listed companies globally should sell stakes in firms generating more than a third of income from coal. Norway’s $900bn sovereign wealth fund, the world’s largest, should cut its exposure to the global coal industry and sell stakes in firms that focus on the sector, a key parliamentary committee said on Wednesday.
The finance committee agreed in a bipartisan motion that the fund, which owns about 1.3% of all listed companies globally, should sell stakes in firms that generate more than 30% of their output or revenues from coal-related activities. Already under pressure from Norway’s political establishment, the fund has been selling down its coal portfolio in recent quarters and said its holdings were already small……………………………………Full Article: Source

Norwegian sovereign wealth fund to reduce coal investments

Posted on 28 May 2015 by VRS  |  Email |Print

Norway’s parliament on Wednesday reached an agreement that the country’s sovereign wealth fund should sell shares in all companies in its portfolio which generate more than 30 percent of their revenues from coal. The agreement was accepted by all parties at a meeting of the Norwegian parliament’s finance committee and will be formally adopted by the legislature on June 5, according to English-language digital news publisher The Local.
“This is a great victory for the climate,” said Torstein Svedt Solberg from Norway’s Labor Party, who acted as the rapporteur for the negotiations. “Coal is in class of its own and is the source responsible for the largest emissions of greenhouse gases.”…………………………………..Full Article: Source

GIC Said to Pay $1 Billion for 15 Percent of Brazil’s Rede D’Or

Posted on 28 May 2015 by VRS  |  Email |Print

GIC Pte, Singapore’s sovereign wealth fund, paid about 3.2 billion reais ($1 billion) for a 15.2 percent stake in Brazilian medical-care provider Rede D’Or Sao Luiz SA, according to two people with direct knowledge of the matter.
GIC acquired half the stake from the company’s founding Moll family and the rest from Grupo BTG Pactual, the people said, asking not to be identified because the terms aren’t public. The deal was signed Wednesday, the people said……………………………………Full Article: Source

GIC & Blackrock among cornerstone investors in 3SBio Inc’s $712m HK IPO

Posted on 28 May 2015 by VRS  |  Email |Print

3SBio Inc., a Chinese producer of biopharmaceutical products, and its private-equity backer are seeking as much as $712 million from a Hong Kong initial public offering.
The company, based in the northeastern Chinese city of Shenyang, and an arm of Citic Private Equity Funds Management Co. are offering 606.1 million shares at HK$8.30 to HK$9.10 apiece, according to terms for the deal obtained by Bloomberg. New shares account for 80 percent of the sale, the terms show……………………………………Full Article: Source

Singapore’s Temasek reduces stake in Amyris Biotech

Posted on 28 May 2015 by VRS  |  Email |Print

Temasek Holdings has reduced its stake in Amyris Biotechnologies by 1.12 per cent, to 39,340,967 shares. The Singapore based fund now owns 36.12 per cent of the industrial bioscience materials company. Currently, Amyris has a market capitalisation of $160.65 million.
The company focuses on leveraging its bioscience technology to develop and provide renewable compounds for different industries. The firm applies an industrial bioscience technology platform to provide alternatives to select petroleum-sourced products that are used in the consumer care, specialty chemical and transportation fuel sectors……………………………………Full Article: Source

Temasek-Backed InnoVen Seeks Asia Expansion to Fill Lending Gap

Posted on 28 May 2015 by VRS  |  Email |Print

InnoVen Capital India, controlled by Temasek Holdings Pte, is seeking to expand its venture debt business across Asia as banks in the region shy away from lending to early-stage companies.
The seven-year-old Mumbai firm plans to use its underwriting model honed in India to expand into Southeast Asia this year and later to China, Chief Executive Officer Ajay Hattangdi said in a May 26 interview. InnoVen has provided debt to over 50 venture capital-backed companies including Snapdeal.com, the Indian web marketplace backed by billionaire Masayoshi Son’s SoftBank Corp……………………………………Full Article: Source

Sovereign Wealth Funds Up the Ante on CRE Investment in the U.S.

Posted on 28 May 2015 by VRS  |  Email |Print

Sovereign wealth funds are expected to play a bigger role in the U.S. commercial real estate market in the coming months. Sovereign wealth funds are raising the stakes for global real estate allocations and North America remains a top focus for many groups.
Last year, foreign investment in U.S. real estate amounted to about $40 billion. During the first quarter of 2015 alone that volume has reached nearly $22 billion, according to commercial real estate services firm Colliers International. “Unless we see some external force come in and interrupt the flow, 2015 is going to come in and crush 2014,” says Brian Ward, president, capital markets and investment services for the Americas at Colliers International in New York City……………………………………Full Article: Source

Vaughn Palmer: LNG prosperity fund as elusive as ‘debt-free B.C.’

Posted on 28 May 2015 by VRS  |  Email |Print

As the B.C. legislature approached the end of spring session this week, Opposition critic Carole James challenged Finance Minister Mike de Jong over the whereabouts of the B.C. Liberals’ $100-billion prosperity fund.
“The elusive prosperity fund,” as she dubbed it, mindful of how a promise that figured so prominently in the last election campaign has lapsed to relative obscurity ever since. Still, as James noted Monday, de Jong’s ministerial mandate includes crafting “legislation to create the prosperity fund” and working out how the fund will “contribute to eliminating the province’s debt” — which now totals some $64 billion……………………………………Full Article: Source

About that sovereign wealth fund…

Posted on 28 May 2015 by VRS  |  Email |Print

The opposition NDP has been asking the governing Saskatchewan Party where all the money has gone from the good fiscal times we’ve had in recent years. Given how Alberta has gone from boom to bust and is now in a provincial election as a result, that’s a good question, not just for our province, but also for our neighbours to the west.
Brad Wall said the money’s gone to health care and infrastructure and all sorts of other things. That may very well be the case. But looking at how provincial oil revenues are expected to flatline in this province this year, our so-called “balanced budget” is reliant on borrowing a big chunk of money. That’s not balanced. Instead we find ourselves looking back longingly and wondering, “What if?”…………………………………..Full Article: Source

India: SWFs may get to buy stakes in highway projects

Posted on 27 May 2015 by VRS  |  Email |Print

The government is finalising a mechanism that will allow private equity firms and sovereign wealth funds, including Khazanah, Macquarie and Temasek to buy stakes in highway projects, freeing up resources for the sector. “There is a lot of interest…we are examining how best to leverage it…There are various options,” a road ministry official told ET, confirming that these three investors are among those that want to take over road projects in India and are waiting for a clear policy directive.
One option under consideration is a government-promoted special purpose vehicle that will pick up part of the equity in projects in which PEs and SWFs are interested. The Rs 20,000 crore National Investment and Infrastructure Fund, proposed by finance minister Arun Jaitley in his budget speech, could be tapped for this…………………………………..Full Article: Source

What’s next for Asia’s private funds market?

Posted on 27 May 2015 by VRS  |  Email |Print

Larger investors, particularly the institutional pension plans, insurance companies and sovereign wealth funds, as well as development finance institutions (“DFIs”), continue to have an important role in the development of the market. We mention below a number of areas where their influence is being felt.
More generally, we are seeing greater outbound investment from key groups of Asian investors as they look to increase the diversification of their portfolios (as a result of regulatory change or otherwise). For example, Chinese insurers are starting to emerge as a force, particularly so far in real estate and infrastructure. Similarly, there has been a resurgence from Japanese and Korean investors looking outbound in recent years…………………………………..Full Article: Source

17 facts about Chinese investment in Australia

Posted on 27 May 2015 by VRS  |  Email |Print

What started as Chinese sovereign funds making exploratory investments in Australia has now proliferated into investment sprees by Chinese developers, banks, ultra high net worth individuals (UHNWI’s) and institutional investors such as insurance companies.
The attractiveness of mature gateway markets in the UK, US and Australia is pulling capital out of China, providing quality products and higher yield returns with diversification benefits and assisting institutions and developers build their brand internationally………………………………….Full Article: Source

Zeti says report about 1MDB account in Singapore received

Posted on 27 May 2015 by VRS  |  Email |Print

Bank Negara has received information from the Monetary Authority of Singapore (MAS) about an account connected to 1Malaysia Development Bhd (1MDB) in BSI Bank Ltd in the republic, Bank Negara governor Tan Sri Zeti Akhtar Aziz said.
In a Bernama report, Zeti said Bank Negara had received a report from MAS about an account linked to the debt-ridden strategic investment firm at the Swiss-based BSI Bank. She said a report from MAS would be shared with other Malaysian agencies, but declined to name them for confidentiality…………………………………..Full Article: Source

Putting aside billions – Africa’s sovereign wealth funds

Posted on 27 May 2015 by VRS  |  Email |Print

Sovereign wealth funds are sprouting across Africa – 15 countries have created funds in the last 20 years, managing a total of $159bn at the end of September 2014. Angola, Nigeria, Senegal and Ghana all started funds in the last 3 years and and funds are discussed, expected or being born in: Kenya, Liberia, Mauritius, Mozambique, Namibia, Niger, Uganda, Sierra Leone, South Sudan, Tanzania, Uganda, Zambia and Zimbabwe.
A key research event at Chatham House in September 2014 identified some principles of African SWF Demand, Development and Delivery. Funds with strict rules should limit politicians’ discretion and they can ensure that money is earmarked for public investments. For instance Ghana has a rule that oil revenues must fund “development-related expenditures”. In many cases this funding can be done through the governments’ budget and oversight systems, which otherwise funds might undermine and bypass………………………………….Full Article: Source

6 steps to good governance and how Africa’s sovereign wealth funds measure up

Posted on 27 May 2015 by VRS  |  Email |Print

Africans should be asking these questions about their sovereign wealth funds (SWF): 1.Set clear fund objectives: Examples include saving for future generation, stabilizing the budget, earmarking natural resource revenue for development priorities. 2.Establish fiscal rules for deposits and withdrawals that align with the objectives. Botswana avoids such rules. Where funds are allowed to invest domestically, including in social spending, they should work with national budget processes. Angola’s sovereign fund can bypass normal budgetary procedures.
3.Establish investment rules, There have been notorious problems worldwide, one of Africa’s worst examples has been the Libyan Investment Authority under “brother leader” Gadhafi, when his son Saif al-Islam Gadhafi had almost sole discretion to manage approximately $65bn and billions went to close acquaintances…………………………………..Full Article: Source

Libya’s Lawsuit Against Banks Threatened Amid “Chaos”

Posted on 27 May 2015 by VRS  |  Email |Print

Oh for the days of stability in the Middle East and the rule of Libyan strongman Muammar Qaddafi. At least then an entertaining lawsuit pitting the Libyan Investment Authority against Goldman Sachs Group Inc and Societe Generale might actually have proceeded.
As the escalating chaos in Libya has ripped apart the social fabric of the country, not to mention slashing oil production by as much as 1/3, the civil disarray that was predicted (by us) to become a factor in the lawsuit the oil rich nation had filed against large banks may come to pass…………………………………..Full Article: Source

SOFAZ to invest in Chinese Yuan in mid-year

Posted on 26 May 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, an entity that accumulates and manages Azerbaijan’s oil and gas revenues, plans to invest $500 million in bonds, denominated in Chinese Yuan in June of this year. The relevant agreement has already been signed with the Chinese Central Bank, SOFAZ Executive Director Shahmar Movsumov told Trend Agency last week.
“We already have an agreement with the Central Bank of China, and a few days ago our securities committees signed a document, after which we can start investing,” he noted. Last week the State Securities Committee of Azerbaijan and China Securities Regulatory Commission signed a memorandum aimed to ensure the investors’ protection and promote the integrity of securities and futures markets and other related investment instruments by expanding the scope of cooperation, strengthening the exchange of regulatory and technical information………………………………………..Full Article: Source

Future Fund dives in

Posted on 26 May 2015 by VRS  |  Email |Print

The Future Fund has taken a deeper plunge into European debt markets by snapping up a €705 million ($988.6m) portfolio of loans from Hayfin Capital Management. Hayfin lends to medium-sized European companies and the financier works across the full range of debt structures, originating most of its own deals from structured transactions to mezzanine and other subordinated debt instruments.
The move is the culmination of six years of involvement by the Future Fund, which backed Haymarket Financial, alongside luminaries including Lord Rothschild, to the combined tune of €450 million in the wake of the financial crisis, when the continent’s credit markets were frozen………………………………………..Full Article: Source

State fund appoints administrator for Malaysia Airlines restructuring

Posted on 26 May 2015 by VRS  |  Email |Print

Malaysian sovereign wealth fund Khazanah has appointed Mohammad Faiz Azmi to oversee the restructuring of now delisted Malaysia Airlines into a new company that will be owned by the fund. Azmi will oversee the transfer of the assets and liabilities of MAS, with the new company due to start operating by September.
Khazanah took MAS private last year as part of a MYR6 billion ringgit (USD$1.66 billion) restructuring aimed at returning the troubled carrier to profit………………………………………..Full Article: Source

What exactly are 1MDB assets in S’pore bank?

Posted on 26 May 2015 by VRS  |  Email |Print

This smells fishy. How could a statement on a paramount issue like 1Malaysia Development Berhad (1MDB) be casually written by a lowly ministry official without the approval of the finance minister whose job is on the line?
If indeed the minister did not vet through the statement as alleged given the severity of the matter, then the rakyat should seriously question the type of the minister we have put in charge of running our country. It would be little wonder that the country is in a state it is now………………………………………..Full Article: Source

Emirates Global Aluminium to spend $5bn boosting capacity

Posted on 26 May 2015 by VRS  |  Email |Print

State-owned Emirates Global Aluminium (EGA) is spending US$5.2 billion to boost capacity at its smelter in Dubai and build an alumina refinery in Abu Dhabi. EGA is a joint venture between the Abu Dhabi sovereign wealth fund Mubadala Development and the Dubai sovereign wealth fund Investment Corporation of Dubai.
EGA, the world’s fifth-largest aluminium producer, was formed last year with the merger of Abu Dhabi’s Emirates Aluminium (Emal) and Dubai Aluminium (Dubal)………………………………………..Full Article: Source

Nigeria earned N12.3 trillion as excess crude oil money in 4 years – Okonjo-Iweala

Posted on 26 May 2015 by VRS  |  Email |Print

Nigeria earned a huge $61.7 billion (about N12.3 trillion) in four years as excess crude oil money, the finance minister, Ngozi Okonjo-Iweala, said Saturday. According to the minister, Nigeria earned about $18.14 billion in 2011; $18.16 billion in 2012; $15.19 billion in 2013; $8.01 billion in 2014, and $2.17 billion in 2015.
The Excess Crude Account is one of the two accounts (dollar and Naira) where the Nigerian government saves revenue earnings from the difference between budgeted benchmark crude oil price and the actual price at the international market in a given year………………………………………..Full Article: Source

Public Pressure Grows On Gulf Countries Sovereign Wealth Funds

Posted on 26 May 2015 by VRS  |  Email |Print

With most of the funds disclosing little information, lawmakers in some countries are looking for poor performance or even wrongdoing. Running sovereign wealth funds in the Gulf has become an awkward business in the era of cheap Crude Oil, as their managers face growing pressure from politicians and the public to prove they’re investing national reserves wisely.
When Crude Oil prices were high, the Gulf funds, some of the largest in the world came under little public scrutiny. Government coffers were full of energy revenues and the financial futures of the Gulf Arab states seemed secure. But with Brent Crude Oil now at little more then 50% last June’s level, the countries may be entering their toughest fiscal times since the 1990’s, and this has changed the political climate………………………………………..Full Article: Source

Your Student Loan Could Be Backed by Sovereign Funds

Posted on 26 May 2015 by VRS  |  Email |Print

The search for yield in an environment of low interest rates are pushing institutional investors such as U.S. pensions and wealth funds indirectly into the U.S. student loan market. These public investors have allocated swaths of capital to alternative investment firms like Apollo Global Management LLC through credit-related investment mandates.
For credit managers seeking yield, student loans seem attractive, especially high-quality consumer borrowers. Backing these Apollo funds are sovereign wealth funds, life insurance companies, endowments and pensions. The U.S. student loan market has mushroomed in size, as more young people attend university and tuition cost continues to increase. As of October 2014, the U.S. student loan market amounted to US$ 1.3 trillion which counts private loans without government guarantees………………………………………..Full Article: Source

Libya power struggle threatens the fund’s Goldman, SocGen suits

Posted on 25 May 2015 by VRS  |  Email |Print

A fight for control of Libya’s $60bn sovereign wealth fund threatens to derail its multibillion dollar lawsuits against Goldman Sachs Group Inc and Societe Generale SA. Since the Libyan Investment Authority’s London law firm quit in April, two competing factions have claimed control, hiring separate lawyers and public relations firms.
There is a “state of chaos” in the litigation, lawyer Andrew Hunter told a London judge on Friday. He represents a potential witness in the Societe Generale case who says confidential files have been mishandled. “It hasn’t been possible to get consent from the LIA” over the documents, Hunter said, “because there is no one at the LIA to get consent from.”……………………………………….Full Article: Source

With oil cheap, public pressure grows on Gulf sovereign funds

Posted on 25 May 2015 by VRS  |  Email |Print

Running sovereign wealth funds in the Gulf has become an awkward business in the era of cheap oil, as their managers face growing pressure from politicians and the public to prove they’re investing national reserves wisely.
When oil prices were high, the Gulf funds – which include some of the largest in the world – came under little public scrutiny. Government coffers were awash with energy revenues and the financial futures of the Gulf Arab states seemed secure. But with Brent crude now at little more than half last June’s level, the countries may be entering their toughest fiscal times since the 1990s, and this has changed the political climate………………………………………..Full Article: Source

Wealthy Gulf investors should focus on Mena infrastructure, WEF’s Gordon Brown says

Posted on 25 May 2015 by VRS  |  Email |Print

Gordon Brown, the former UK prime minister and current head of the World Economic Forum’s infrastructure initiative, urged wealthy Arabian Gulf states and individuals to invest in much-needed infrastructure projects in the poorer parts of the Middle East. There is a huge spending deficit on infrastructure in the region compared to other parts of the world, Brown noted.
He added, there is an enormous amount of untapped wealth in the richer parts of the region – particularly Gulf sovereign wealth funds – that could be accessed if the right structures were in place. “If you bring together Miga with a Saudi sovereign wealth fund to finance a project to build telecoms infrastructure in Palestine, you are going to get it done no problem,” said Thierry Déau, the founder of Meridiam, a French government-supported long-term infrastructure investment company………………………………………..Full Article: Source

Sovereign wealth fund buys two North Hills hotels for $103M

Posted on 25 May 2015 by VRS  |  Email |Print

Kane Realty and Concord Hospitality Enterprises have sold two hotels at North Hills for nearly $103 million to the sovereign wealth fund of the government of Abu Dhabi. The Abu Dhabi Investment Authority paid $79.91 million for the 229-room Renaissance Raleigh North Hills and $22.945 million for the 137-room Hyatt House Raleigh North Hills, according to Wake County property records.
Abu Dhabi is the capital of the United Arab Emirates, an oil-rich nation in the Persian Gulf. ADIA is the largest sovereign wealth fund in the Middle East, according the Sovereign Wealth Fund Institute. The deal is the latest example of how attractive the Triangle real estate market has become to global institutional investors………………………………………..Full Article: Source

Fortis redeems FCCBs worth $100m held by GIC: Report

Posted on 25 May 2015 by VRS  |  Email |Print

Fortis Healthcare, the second-largest Indian hospital chain by revenues, has redeemed $100 million worth of outstanding foreign currency convertible Bonds (FCCBs) listed on the Luxembourg Stock Exchange, a report said.
The report by VCCircle said these FCCBs were purchased by Singapore sovereign wealth fund GIC in May 2010. These bonds were optionally convertible at Rs 167 ($2.63) per share with a yield-to-maturity of 5.537 per cent per annum. As of May 2015, Fortis maintains a market capitalisation of $1.23 billion, according to a Reuters quote………………………………………..Full Article: Source

CIC subsidiary to focus on overseas targets

Posted on 25 May 2015 by VRS  |  Email |Print

The nation’s sovereign wealth fund has established a new subsidiary that will focus on overseas direct investment, a senior official said on Wednesday. Gu Dawei, head of the department of foreign capital and overseas investment of the National Development and Reform Commission, said the company’s total funds for investment may exceed the $40 billion Silk Road Fund, a new financing institution for projects involved in the “Belt and Road Initiative” to develop connectivity along the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
The new subsidiary, CIC Capital, “has started operation. It will support domestic enterprises to invest abroad and encourage the export of the country’s advanced industrial capacity”, said Gu………………………………………..Full Article: Source

Dr M accuses Najib of lying when he said S’pore bank had 1MDB cash

Posted on 25 May 2015 by VRS  |  Email |Print

Former premier Tun Dr Mahathir Mohamad has accused Prime Minister Datuk Seri Najib Tun Razak of lying when he told Parliament that money held by government investment arm 1Malaysia Development Berhad (1MDB) is being kept in Singapore.
“No money was banked into BSI Bank in Singapore. This is his second lie. It is clear from the amendment to his first answer that it was not US$1.103 billion (S$1.47 billion) in cash that was being kept with BSI but in the form of documents. It is unclear what is in the documents, but it is clear it is not cash,” said Dr Mahathir in a blogpost on Sunday………………………………………..Full Article: Source

Finance Ministry: Dr M’s claims on 1MDB funds “unfounded, unfair”

Posted on 25 May 2015 by VRS  |  Email |Print

The claim that Prime Minister Datuk Seri Najib Tun Razak “lied” about 1Malaysia Development Bhd’s funds in Singapore is unfounded and unfair, the Finance Ministry said. Clarifying the matter raised by Tun Dr Mahathir Mohamad in a blog post, the ministry said the written reply by Najib, as Finance Minister, on the finances of 1MDB in BSI Bank, Singapore, was based on information received from 1MDB.
It said the ministry made amendments to the March 10 written reply in Parliament to prevent confusion on 1MDB’s funds in Singapore in line with parliamentary procedures. The action by the ministry in this regard proves it has no intention whatsoever to lie about 1MDB’s finances, the ministry said in a statement Sunday………………………………………..Full Article: Source

Funds feel heat of coal and tar divestment drive

Posted on 25 May 2015 by VRS  |  Email |Print

Norway’s $900 billion sovereign wealth fund and the Church of England are among recent high-profile sellers. But some of the money managers running the more than $27 trillion in assets held globally in mutual funds say divestment as a tool to address climate change is too simplistic in most cases. Most argue it can leave fewer investors at a company who are committed to steering management in the desired direction.
Given that, a mass exodus of long-term investors such as pension funds from holding certain stock and debt assets could end up hurting the chance of positive investor-led change.”Fundamentally, it is a shareholder choice to buy or sell … What this may mean is the transfer away from shareholders who might have a grown-up dialogue with us about the climate change challenge towards people who may be less bothered about that………………………………………..Full Article: Source

CIC Launches Overseas Investment Fund Arm

Posted on 22 May 2015 by VRS  |  Email |Print

China’s sovereign wealth fund, China Investment Corporation (CIC), has created a new direct investment arm with US$5 billion in seed capital to help Chinese companies invest overseas, according to statements made by a senior government official quoted by Chinese media.
Gu Dawei, a director in charge of overseas investment at China’s National Development and Reform Commission, implied during a press conference yesterday in Beijing that the new investment entity could eventually be as large as over US$40 billion. “(The fund) will be large, potentially larger than the Silk Road Fund,” says Gu, referring to an investment fund established in November 2014 to invest in infrastructure projects in Asia to upgrade trade and transportation networks between China, Central Asia and Europe………………………………………..Full Article: Source

Restructuring plans for 1MDB to be tabled next week to Cabinet

Posted on 22 May 2015 by VRS  |  Email |Print

1Malaysia Development Berhad’s (1MDB) restructuring report is expected to be tabled to the Cabinet next week, Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah said. He said the restructuring of the alleged debt-ridden government investment arm was possible and he had concrete plans on how to do so.
“Whenever you want to do a restructuring, firstly you have to know what their position is, which is very clear.Then you have to look at how to go from there and for that we have concrete plans. I’m completing the report and next week I will table it to the Cabinet. After that maybe we can announce the next part of 1MDB’s restructuring,” Ahmad Husni said………………………………………..Full Article: Source

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