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Sovereign Wealth Funds Briefing - Archive | August, 2015

Abu Dhabi fund interested in Woori

Posted on 31 August 2015 by VRS  |  Email |Print

Abu Dhabi’s sovereign wealth fund has shown interest in buying a stake in Woori Bank, Korea’s second-largest lender by assets, the Financial Services Commission (FSC) said. The FSC controls Woori through the state-run Korea Deposit Insurance Corp., which holds a 51 percent stake in the bank.
“The Abu Dhabi Investment Authority (ADIA) said it is interested in buying shares in Woori Bank. The vice chairman will leave for the country soon to meet officials of the fund,” an FSC spokesman said. Another official said that FSC Vice Chairman Jeong Chan-woo also plans to visit Saudi Arabia, Dubai and Kuwait on the one-week trip………………………………………..Full Article: Source

DLF ends flat on possible stake sale to Singapore’s sovereign wealth fund GIC

Posted on 31 August 2015 by VRS  |  Email |Print

Shares of DLF rallied over 3 per cent in trade today as India’s largest real estate developer is close to selling a majority stake in a residential project in New Delhi to Singapore’s sovereign wealth fund GIC, two people aware of the deal said. The share ended the session at Rs 115.05, up 0.52 per cent.
The transaction may be valued at Rs 1,500 crore- Rs 2,000 crore. The 25-acre project in the Moti Nagar area of west Delhi, to be called DLF Capital Greens 6, has secured all approvals and is likely to be launched in the next few months………………………………………..Full Article: Source

Sultanate’s sovereign wealth fund, Oman Oil join hands

Posted on 31 August 2015 by VRS  |  Email |Print

State General Reserve Fund (SGRF), Oman’s sovereign wealth fund, and Oman Oil Company (OOC), the government’s investment arm in the energy sector, have signed a cooperation agreement to build a strategic cooperation partnership.
The announcement of this strategic cooperation came in light of the commitment of both sides to contribute in developing the national economy through diversifying the national income, and enhancing in-country value. The partnership between SGRF and OOC will focus on a number of areas such as the development of human capital, supporting small and medium enterprises (SMEs) and knowledge transfer………………………………………..Full Article: Source

Saudi Arabia can circumvent its challenges

Posted on 31 August 2015 by VRS  |  Email |Print

The SWF (Sovereign Wealth Fund) Institute puts the value the of Saudi Arabia’s sovereign wealth fund at $677 billion, the fourth highest in the world. The June number represents some 9.4 per cent of total SWFs in the world and the second largest within the Gulf after the UAE.
Saudi Arabia continues to enjoy notable credit ratings such as an AA- from Standard & Poor’s and AA from Fitch Ratings, providing a certain level of comfort for institutional investors interested in purchasing Saudi bonds. Nevertheless, both agencies opted to revise the outlook from stable to negative considering the adverse effects from the plunge oil prices and increased government spending. S&P made the move in February while Fitch followed suit this month………………………………………..Full Article: Source

Fitch Affirms Qatar at ‘AA’

Posted on 31 August 2015 by VRS  |  Email |Print

Fitch Ratings-London-28 August 2015: Fitch Ratings has affirmed Qatar’s Long-term foreign and local currency Issuer Default Ratings (IDR) at ‘AA’ with a Stable Outlook. The Country Ceiling has been affirmed at ‘AA+’ and the Short-term foreign currency IDR at ‘F1+’.
These fiscal estimates exclude investment income transferred to the government by Qatar Investment Authority (QIA), the sovereign wealth fund, which does not provide data on assets or income. Income is estimated to amount to approximately 3% of GDP and will thus be sufficient to cover any deficits. Including QIA , sovereign net foreign assets are estimated to amount to 121% of GDP at end-2014………………………………………..Full Article: Source

The world’s biggest sovereign wealth fun is getting roughed up

Posted on 31 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the biggest in the world, is getting chewed. In the past month, the $US840 billion fund lost more than 5% on its investments, the fund’s CEO Yngve Slyngstad said, according to Bloomberg’s Saleha Mohsin.
That would be about $US40 billion. Somewhat notably, this news comes shortly after the huge sell-off in Chinese stocks. “Slyngstad has been seeking to expand the fund’s investments in China, which he sees as key to capturing more of global growth,” according to Bloomberg’s Mohsin………………………………………..Full Article: Source

State pension fund takes €10m hit as Chinese shares slump

Posted on 31 August 2015 by VRS  |  Email |Print

The Irish Strategic Investment Fund, the new name for the National Pension Reserve fund, had €39m invested in Chinese stocks at the end of last year, with millions more invested in other emerging markets. These investments have taken a beating in the past two weeks, as Chinese stocks plummeted following the publication of worse-than- expected Chinese economic data.
The data prompted the biggest sell-off of shares in the world’s second largest economy since 1996, with the CSI 300, an index of China’s largest companies, down a quarter in ten days. In total, Chinese shares tumbled €4.5 trillion between mid-June and late August………………………………………..Full Article: Source

$7.1 Trillion In Global Sovereign Wealth Fund Assets

Posted on 31 August 2015 by VRS  |  Email |Print

As Credit Suisse notes, “oil exporting countries hold about $1.7trn of official reserves but as much as $4.3trn in sovereign wealth fund assets.” And while the composition of the SWF asset pool is likely to be far more multifarious than the makeup of official FX reserves making it more difficult to assess i) how quickly they could be liquidated in a pinch, and ii) what effect that liquidation would have on USD assets, especially USTs, the important point is that if we have indeed entered a new era in which crude and commodities are destined to trade at comparatively depressed levels, the pressure on exporters to adapt to the new reality could force them to begin drawing down the vast store of SWF assets.
Thus, if one wants to understand how large the petrodollar unwind could potentially be in the worst case scenario, it’s important to take stock of SWF assets………………………………………..Full Article: Source

Norway’s Wealth Fund Lost More Than 5% in Past Month, CEO Says

Posted on 28 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s biggest, lost more than 5 percent on its investments in the past month, the head of the $840 billion fund said. The revelation follows the biggest selloff in Chinese stocks in two decades. The most recent developments suggest China’s transition to a more consumer-driven economy is proving difficult, Chief Executive Officer Yngve Slyngstad said Wednesday in the Staavi and Valebrokk podcast for newspaper VG.
“We can’t put everything away safely into the bank — we need to invest in risk,” Slyngstad said in the podcast. “We invest in bonds, we invest in stocks and we invest in real estate, in the world economy.”……………………………………….Full Article: Source

Norway oil fund hit by China - CEO

Posted on 28 August 2015 by VRS  |  Email |Print

Norway’s $830 billion sovereign wealth fund has shrunk by more than five percent in the past month in a global stock market rout led by uncertainty over the health of China’s economy, the fund’s chief executive said. He said 2015 so far had been “rather special” with currency swings and falls in commodity prices including oil. “Now there’s a lot happening in China, and that has big consequences for the whole world economy,” he said.
He defended the fund’s strategy of investing about 60 percent in equities, 35 in fixed income and five percent in real estate, saying the fund had to accept some risks and could not simply put its cash in a bank………………………………………..Full Article: Source

Nordea Asset Management Hunts Global Sustainability in New Fund

Posted on 28 August 2015 by VRS  |  Email |Print

Nordea Asset Management, which oversees about $320 billion, is creating a new fund to target ethical assets globally as appetite for sustainable investments rises. Nordea Asset Management, one of the biggest investors in the Nordic region, is by no means alone in carving out ethical return goals.
Norway’s $840 billion sovereign wealth fund, the world’s largest, has long shunned firms identified by an ethics council as employing dubious practices. This month, the wealth fund targeted palm oil producers, and excluded Daewoo International Corp. and Posco from its investments………………………………………..Full Article: Source

Russian train plans could be derailed as Kremlin withholds $1.8bn from operator

Posted on 28 August 2015 by VRS  |  Email |Print

The Russian government has refused the state rail operator’s request for $1.83bn in funding next year, casting doubt on ambitious rail infrastructure plans. Russian Railways had asked for $1.83bn in 2016 from the federal budget and from Russia’s $75bn oil-revenue-fuelled sovereign wealth fund, the National Wealth Fund, to maintain its financial stability, saying it would otherwise need to raise tariffs by 17.7%.
But the government refused, saying it should look to cut costs instead. Last year Russian Railways, thought to be Russia’s single largest employer, launched a major programme of track refurbishment, with plans to upgrade transport corridors from Asia into Europe along the Trans-Siberian and the Baikal-Amur rail lines………………………………………..Full Article: Source

Temasek said to be in bid for Tesco’s S Korean business

Posted on 28 August 2015 by VRS  |  Email |Print

Temasek Holdings has teamed up with South Korean private equity firm MBK Partners to bid for the South Korean arm of British supermarket operator Tesco, two people familiar with the deal said. Asia-focused MBK has already entered the race for the business, valued at about US$6 billion (S$8.4 billion). It is vying against United States private equity giant Carlyle Group and a rival consortium comprising Affinity Equity Partners and KKR.
The sources said Temasek’s entry marks a rare instance where the Singapore investment giant is bidding against Singapore sovereign wealth fund GIC, which has partnered Carlyle. Temasek’s latest interest in the consumer sector comes more than a year after it bought almost a quarter of health and beauty products retailer AS Watson, backed by Hong Kong tycoon Li Ka-shing, for about US$5.7 billion in its single biggest investment………………………………………..Full Article: Source

Temasek joins MBK in bid for Tesco’s South Korea business

Posted on 28 August 2015 by VRS  |  Email |Print

Singapore state investor Temasek Holdings (Private) Ltd has partnered Asia-focused private equity firm MBK Partners to bid for the South Korea arm of British supermarket operator Tesco PLC, two people familiar with the matter told Reuters. MBK has already entered the race for the business, valued at $6 billion. It is vying against Carlyle Group LP and a consortium comprising Affinity Equity Partners and KKR & Co.
Temasek’s latest interest in a consumer-sector deal comes more than a year after it bought almost a quarter of health and beauty retailer A.S. Watson, backed by Hong Kong tycoon Li Ka-shing, for about $5.7 billion in its single biggest investment………………………………………..Full Article: Source

Mitsubishi to buy at least 10 percent of Temasek-controlled Olam

Posted on 28 August 2015 by VRS  |  Email |Print

Japanese trading house Mitsubishi will buy a stake of at least 10 percent in agri-trader Olam International in a deal worth $500 million or more, people familiar with the matter said. Reuters earlier reported that the Singapore-based firm was set to announce a strategic partnership with a Japanese peer, after Olam, majority-controlled by state investor Temasek Holdings, halted trading of its stock on Thursday.
One of the sources said Mitsubishi had done extensive due diligence and had also looked at other strategic investments before choosing Olam. The people declined to be identified as discussions were private………………………………………..Full Article: Source

Japan’s Mitsubishi buys 20% stake in Olam

Posted on 28 August 2015 by VRS  |  Email |Print

Japan’s Mitsubishi Corporation has bought a 20 per cent stake in global-agri business Olam through two transactions as the companies launch a strategic partnership. Singapore’s sovereign wealth fund Temasek Holding retains a majority stakeholding of 51.4 per cent in Olam. While it has sold no shares, its position has been diluted from 58.4 per cent by the issuance of the new shares.
Singapore-listed Olam sold 332.73m new shares — the equivalent of 12 per cent of the enlarged issue — to Mitsubishi for S$915m, the company said in a statement, David Sheppard writes in London………………………………………..Full Article: Source

DLF plans to sell a majority stake in Delhi project to Singapore’s GIC

Posted on 28 August 2015 by VRS  |  Email |Print

DLF, India’s largest real estate developer, is close to selling a majority stake in a residential project in New Delhi to Singapore’s sovereign wealth fund GIC, two people aware of the deal said. The transaction may be valued at Rs 1,500 crore- Rs 2,000 crore.
The 25-acre project in the Moti Nagar area of west Delhi, to be called DLF Capital Greens 6, has secured all approvals and is likely to be launched in the next few months. The builder did not find many takers when it assessed demand for the project through local brokers some months ago, one of the persons said. “DLF may be looking at commencing construction and selling only when the market improves,” the person said, asking not to be identified………………………………………..Full Article: Source

Norway sovereign wealth fund joins bidding for tower owned by Blackrock

Posted on 27 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund is among bidders for BlackRock’s Asia Square Tower 1, an office building in Singapore’s central business district, according to people familiar with the matter.
CapitaLand, Singapore’s largest developer, and Keppel Land. have also made offers for the property, said the people, who asked not to be identified because the process is private. The office tower could be valued at more than S$3.5bn (€2.3bn), according to the people………………………………………..Full Article: Source

Where to put money divested from fossil fuels

Posted on 27 August 2015 by VRS  |  Email |Print

Three months ago, the Norwegian government committed to divesting 100 percent of its coal holdings from its sovereign wealth fund — the largest in the world with $900 billion in assets.
In total, hundreds of billions of dollars have been pledged for divestment, including from individuals, universities, sovereign wealth funds, faith-based groups and pension funds — forming an accelerating movement that spans sectors………………………………………..Full Article: Source

Swedish Funds Target €4B Real Estate Investment

Posted on 27 August 2015 by VRS  |  Email |Print

Two of Sweden’s national pensions have collaborated with asset manager TIAA-CREF to create a €2.2 billion ($2.5 billion) real estate joint venture. AP1 and AP2—which between them run roughly €57 billion within Sweden’s national pension system—and TIAA-CREF aim to invest a further €2 billion into real estate through the arrangement in the next three years.
The Swedish funds’ expansion of their property investments comes as Norway’s sovereign wealth fund is ploughing 5% of its €724 billion portfolio into real estate. The Government Pension Fund—Global had 2.7% invested in the asset class at the end of June, according to its second quarter report. The allocation posted a 2% return in the second quarter, while the fund’s equity and bond portfolios both lost money………………………………………..Full Article: Source

Dr Mahathir still believes 1MDB funds went to Najib’s accounts, says report

Posted on 27 August 2015 by VRS  |  Email |Print

Dr Mahathir Mohamad has suggested that the US$700 million (S$980.1 million) deposited in Prime Minister Najib Razak’s personal account in 2013 is linked to the state-owned investment firm 1Malaysia Development Berhad (1MDB).
Speaking to the Financial Times (FT), the former prime minister said he does not believe the official stand by Mr Najib, and which was confirmed by the Malaysian Anti-Corruption Commission, that the deposit was a donation from a benefactor in the Middle-East. “I don’t believe it is a donation. I don’t believe anybody would give that much, whether an Arab, or anybody,” Dr Mahathir was quoted as saying by FT………………………………………..Full Article: Source

Abu Dhabi firms to rethink deal to cut 1MDB debts, says report

Posted on 27 August 2015 by VRS  |  Email |Print

Abu Dhabi’s International Petroleum Investment Co (Ipic) is considering pulling out of a plan to help restructure 1Malaysia Development Bhd’s debts, Singapore’s Business Times (BT) reported. Citing a source, the paper said Ipic and its subsidiary, Aabar Investment, which signed an agreement last May to help 1MDB cut its debts by RM16 billion, are now having second thoughts about the plan.
BT said it was unclear what led Ipic to rethink the deal, but cited a report in the Gulf Times of “growing unease” in the Middle East in the wake of the 1MDB controversy, including the resignations of Aabar Investments’ chairman Khadem al-Qubaisi and chief executive Mohamed Badawy al-Husseiny………………………………………..Full Article: Source

Norway Fund Said Among Bidders for BlackRock Singapore Tower

Posted on 26 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund is among bidders for BlackRock Inc.’s Asia Square Tower 1, an office building in Singapore’s central business district, according to people familiar with the matter.
CapitaLand Ltd., Singapore’s largest developer, and Keppel Land Ltd. have also made offers for the property, said the people, who asked not to be identified because the process is private. The office tower could be valued at more than S$3.5 billion ($2.5 billion), according to the people………………………………………..Full Article: Source

As deals dry up more Singapore bankers seek exit to sovereign wealth funds

Posted on 26 August 2015 by VRS  |  Email |Print

As deals dry up in Southeast Asia, an increasing number of Singapore-based investment bankers are contacting recruiters about moving to GIC, the Singaporean sovereign wealth fund, or Temasek, the state investment company.
“Over the past six months I’ve seen more banking candidates than ever wanting to join the two asset managers,” says Christina Ng, executive director at LMA Recruitment in Singapore. “These aren’t underperformers either, they’re good-calibre people who could just as well get another job in banking.”……………………………………….Full Article: Source

Najib’s defence of 1MDB, unspinned

Posted on 26 August 2015 by VRS  |  Email |Print

As more countries launch investigations into alleged fraudulent and money-laundering activities involving 1MDB, and as more illegal assets are frozen, which investors in their right minds would want to have anything to do with 1MDB? PM Najib Razak is trying to mislead poorly-informed Malaysians and portray himself as a ‘saviour’ when the exact opposite is true. Qatar has not put a cent into 1MDB yet.
Any Qatari investment or loan would most likely be used to settle 1MDB debts, just as the US$1 billion ‘investment’ from IPIC (International Petroleum Investment Company) in June 2015 to settle debts but with an expected transfer of assets from 1MDB to IPIC by June 2016 together with cash repayment (with interest) on an outstanding US$3.5 billion debt………………………………………..Full Article: Source

Sovereign wealth funds: cashing in?

Posted on 26 August 2015 by VRS  |  Email |Print

Sovereign wealth funds offer countries with great natural resources the chance to capitalise on their reserves of wealth and establish diversity and stability in their economies. Global oil prices are making this harder than it used to be.
A number of African states have established sovereign wealth funds (SWF) as a means of managing their revenues. In particular, oil rich states such as Nigeria and Angola have invested a significant amount in their SWFs, with Nigeria’s newly established fund currently standing at USD 1.4 billion and Angola’s Fundo Soberano de Angola (FSDEA) at USD 5 billion………………………………………..Full Article: Source

Oman, Bahrain most vulnerable to oil slump: S&P

Posted on 26 August 2015 by VRS  |  Email |Print

Oman and Bahrain are the most vunerable Gulf countries due to a prolonged slump in the oil prices, according to Standard and Poor’s credit rating agency. The agency attributed this to the low fiscal reserves and lack of economic diversification. Moreover, Oman’s sovereign wealth fund (SWF) has assets of $13 billion, far smaller than other Gulf SWFs.
Ministry of Finance data showed allocations for government wages and salaries amounting to 1.5 billion riyals, including 3.5 million riyals as pension payments for retired ministers, 1.3 billion riyals as allowances (including cost-of-living allocations) and 225 million riyals for other dues in 2014………………………………………..Full Article: Source

Decarbonize Norway’s sovereign wealth fund in this year’s Business for a Better World MBA case competition

Posted on 26 August 2015 by VRS  |  Email |Print

Team registration is now open for the third-annual CK-Schulich Business for a Better World case competition, a partnership between Corporate Knights magazine and York University’s Schulich School of Business. Student teams will be asked this year to decarbonize the holdings of the Norway Government Pension Fund Global, the largest sovereign fund in the world with a value of $940 billion (USD).
Managed by Norges Bank Investment Management, the fund is commonly referred to as The Oil Fund because it has been built from the surpluses of Norway’s petroleum income. Teams will have four key objectives:……………………………………….Full Article: Source

It’s Often a Curse to Be Blessed With Commodities

Posted on 26 August 2015 by VRS  |  Email |Print

Nowadays the lessons of Indonesia and Norway are widely known. Lots of resource-rich countries and other jurisdictions put commodity earnings aside in sovereign wealth funds. But the temptation of a commodities boom is still hard to resist, especially when it’s the first time.
While it saved slightly less than $500 million in oil revenues in two sovereign wealth funds from 2012 to 2014, the government borrowed approximately $7 billion on international financial markets, at interest rates approximately 5 percent higher than the rate of return on sovereign wealth fund assets. The Ghanaian experience highlights the dangers of over-exuberance when new discoveries are made………………………………………..Full Article: Source

Norway Fund Could Suffer Heavy Loss From Stock-Market Rout

Posted on 25 August 2015 by VRS  |  Email |Print

With stocks forming nearly two-thirds of its $836 billion portfolio, Norway’s sovereign wealth fund, the world’s biggest, could stand among the day’s biggest losers by the closing bell on the New York Stock Exchange on Monday. If the stock-market rout continues, the fund’s third-quarter results will be poor, said Nordea Markets analyst Erik Bruce. “The fund’s strategy may be questioned,” he said.
The fund, which holds 1.3% of the world’s listed stocks, and 2.4% of all listed European shares, posted its first quarterly loss in three years last week. Norges Bank Investment Management, the arm of Norway’s central bank running the fund, blamed losses on its equity and fixed-income investment………………………………………..Full Article: Source

Norway’s ‘oil fund’: Is it making businesses behave better?

Posted on 25 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund has taken a proactive approach to encouraging businesses to improve their practices, and the scale of its holdings could give it a unique ability to influence investors and businesses. Norway, the small Scandinavian nation that boasts of glaciers and mountains and cavernous coastal fjords, says businesses and investors should take ethical and environmental considerations into account, and it’s putting its vast oil resources where its mouth is.
Earlier this week, Norway’s $900 billion sovereign wealth fund, also known colloquially as the “oil fund”, opted to drop four of Asia’s largest companies due to concern over the severe environmental damage caused by Indonesian palm oil plantations……………………………………….Full Article: Source

Norway has a secret weapon to deal with falling oil prices

Posted on 25 August 2015 by VRS  |  Email |Print

The decade-long boom in oil and gas prices is over. Those falling oil prices continue to have major consequences for oil-dependent countries Venezuela and Nigeria. Norway’s sovereign wealth fund is the largest in the world — and its value keeps growing, by virtue of a government policy that limits the government’s usage of the fund to just four percent annually.
The fund, however, could be the biggest loser in Monday’s global stock market selloff — with almost two-thirds of its investments in equities. And with the current dip in oil prices, the government may be inclined to change the policy to allow access to more of the fund’s assets………………………………………..Full Article: Source

Back to School: Norway SWF Offers Internships

Posted on 25 August 2015 by VRS  |  Email |Print

Norges Bank Investment Management (NBIM), which is responsible for the day-to-day running of the Norway Government Pension Fund—Global, has thrown open its Investment Talent Programme 2016. The managers of the world’s largest sovereign wealth fund (SWF) have invited recent graduates to apply to spend two years honing their investment and banking skills. The programme will start in August 2016.
“The programme is targeted at highly motivated and skilled candidates with recent university degrees who are aiming at an international career in investment management,” said the application page on NBIM’s website. “We offer interesting challenges in an active and stimulating international environment. The programme offers excellent possibilities for personal and professional development.”……………………………………….Full Article: Source

Temasek’s Fullerton sees opportunity in Asia market carnage

Posted on 25 August 2015 by VRS  |  Email |Print

During the hour The Australian Financial Review spent with Manraj Sekhon on Monday morning in Sydney, Shanghai’s equity market plunged by 4 per cent, dragging other other Asian markets off a cliff in what would become a savage day of trading across the region. “There is a major growth scare going on,” said Mr Sekhon, the chief executive of Fullerton Fund Management, an Asian-focused asset manager fully owned by Singapore’s sovereign wealth fund, Temasek.
“Markets are paranoid about where growth is coming from. This period will be with us for a while yet – I think the episode we are in is going to get worse before it gets better.” Like other investors in Asian equities, Fullerton’s portfolios were dragged down on Monday, as markets panicked about the growth trajectory for China’s economy after the recent devalution of the renminbi………………………………………..Full Article: Source

Oman has run up 1.8b riyal deficit so far

Posted on 25 August 2015 by VRS  |  Email |Print

Oman has run a 1.8 billion riyal (Dh17.09 billion) budget deficit so far this year, according data provided by the Ministry of Finance. The approved deficit for 2015 budget stands at 2.5 billion riyals — an increase of 38.9 per cent compared to last year, according to the budget statement.
Moreover, Oman’s sovereign wealth fund (SWF) has assets of $13 billion, far smaller than other Gulf SWFs. Ministry of Finance data showed allocations for government wages and salaries amounting to 1.5 billion riyals, including 3.5 million riyals as pension payments for retired ministers, 1.3 billion riyals as allowances (including cost-of-living allocations) and 225 million riyals for other dues in 2014………………………………………..Full Article: Source

Abu Dhabi SWF among anchors in Navkar IPO

Posted on 25 August 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority, one of the sovereign wealth funds of UAE representing the emirate of Abu Dhabi, is among the anchor investors that have together invested Rs 173 crore in Raigad-based logistics company Navkar Corporation Ltd, as part of an initial public offer (IPO) of the company.
Navkar Corporation, which provides container freight station services and trading activities, allocated 11.6 million equity shares to a total of 15 anchor investors at a share price of Rs 155 equity share. The anchor investors included Morgan Stanley Mauritius Company, Ashburton India Equity Opportunities Ltd, Nomura Singapore, IDFC Fund, HDFC Infrastructure Fund, Franklin India Smaller Companies Fund, Prime India Opportunity Fund and Amundi Funds, among others………………………………………..Full Article: Source

GIC-Backed Microlender Bandhan Starts India Banking Operations

Posted on 24 August 2015 by VRS  |  Email |Print

Bandhan Financial Services Pvt., the first new commercial Indian lender in more than a decade, kicked off operations with 501 branches across the country, with plan for a 26 percent expansion by end-March.
The Kolkata-based company, which counts Singapore’s GIC Pte. and the International Finance Corp. among its investors, is entering India’s mainstream banking industry as the regulator seeks ways to clean up books amid a surge in bad loans and a sputtering economy. Stressed assets are at the highest level since 2002 as four of India’s five biggest banks reported an increase in bad loans for the year ended March………………………………………..Full Article: Source

Swiss Look Into Connection Between Banking Sector and 1MDB

Posted on 24 August 2015 by VRS  |  Email |Print

Swiss authorities have opened a criminal probe into the relationship between “suspicious transactions” in the country’s banking sector and a troubled state investment fund tied to Malaysian Prime Minister Najib Razak.
A spokesman for Switzerland’s Office of the Attorney General said a pair of transactions reported to the Swiss Money Laundering Reporting Office, or MROS, triggered the investigation, which is focused on the 1Malaysia Development Bhd. fund, or 1MDB. The 1MDB advisory board is headed by Mr. Najib………………………………………..Full Article: Source

Interest in 1MDB assets proves it has value: PM

Posted on 24 August 2015 by VRS  |  Email |Print

Prime Minister Datuk Seri Najib Abdul Razak today said he had met with the Emir of Qatar who had expressed his interest to invest in 1MDB owned assets. “If 1MDB assets are worthless, there would be no interest from investors.
“However, investors from Qatar see 1MDB assets as those able to generate lucrative, long term profits,” he said in his latest Facebook posting. It was reported that on July 31, Najib had an audience with the Emir of Qatar, Sheikh Tamim Hamad Al-Thani to discuss efforts to strengthen ties between Malaysia and Qatar………………………………………..Full Article: Source

1MDB ‘partner’ SACKS its CEO ahead of global graft meet

Posted on 24 August 2015 by VRS  |  Email |Print

Prime Minister Najib Razak can threaten all he likes, arrest as many critics he wishes, have his henchmen make the most outlandish statements but calls for his resignation won’t go away. There’s nothing he can do to repair his mauled reputation, nothing how many hundreds of million he continues to squanders on foreign publicists.
Experts say his only way out if he wants to stay on as PM and pre-empt the flood of corruption charges that will surely be leveled at him, his wife Rosmah Mansor and their family is to turn Malaysia from a flawed democracy into a full-fledged dictatorship. “Don’t put it past Najib to use force including military intervention to seize power and freeze the political activity against him,” said a political watcher. “He has nothing to lose and is dangerous.”……………………………………….Full Article: Source

Kuwait’s fiscal prudence pays off with rating agencies

Posted on 24 August 2015 by VRS  |  Email |Print

Kuwait’s strong fiscal and external accounts are behind the country’s eminently favourable credit ratings, with Standard & Poor’s recently conferring a long-term rating of AA. Understandably, rating agencies derive comfort from the country’s substantial sovereign wealth fund (SWF). Kuwait boasts a substantial reserve that provides the necessary cushion for stakeholders like creditors and exporters.
The sovereign wealth fund, as managed by Kuwait Investment Authority, stood at $592 billion in June, ranked among the top in the world as estimated by the Sovereign Wealth Institute. General reserves have received a major boost over recent years after a decision to raise funding set aside as part of the mandate for the future. In 2013 — or before the drop in oil prices — a decision was made to increase the amount set aside — 25 per cent rather than 10 per cent of oil revenues………………………………………..Full Article: Source

SWF To Team Up With OTPP, Hermes

Posted on 24 August 2015 by VRS  |  Email |Print

One of the world’s biggest sovereign wealth funds is part of a consortium that is plotting a bid for London City Airport, which has been valued at 2bn, says an article in the Telegraph. Wren House Infrastructure Management, which is an investment vehicle owned by the Kuwait Investment Authority; Canadian giant Ontario Teachers’ Pension Plan; and investment firm Hermes have teamed-up to make an offer for the airport, according to sources in the infrastructure sector. The KIA is the world’s fifth largest sovereign wealth fund with some 592bn in assets.
Oaktree Capital owns the remaining 25pc of the airport and has agreed to the sale. London-based Wren House was set up in 2013 to facilitate direct infrastructure investment by Kuwait’s sovereign wealth fund. Kuwait was part of a consortium that unsuccessfully attempted a 5bn takeover of water utility Severn Trent two years ago. OTPP, which manages about C154.5bn in assets, is one of Canada’s largest investment houses and is a major player in British infrastructure………………………………………..Full Article: Source

Norwegian Fund Divestment Over Environmental Concerns

Posted on 24 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund is removing four Asian companies from its investment portfolio for ethical reasons. The fund, officially known as the Government Pension Fund, is financed by profits, taxes and fees from Norway’s offshore oil and gas sector.
It said it was divesting from South Korean steelmaker Posco, its subsidiary Daewoo International Corp, and two Malaysian companies, Genting Berhad and IJM Corporation Berhad, citing the damage they are causing by turning rain forests in Indonesia and Malaysia into palm oil plantations………………………………………..Full Article: Source

Alaska Permanent Fund gains 4.9% for fiscal year

Posted on 21 August 2015 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned a preliminary 4.9%, gross of fees, for the fiscal year ended June 30, surpassing its -1.4% benchmark, said spokeswoman Laura Achee. The sovereign wealth fund has a target asset allocation of 36% stocks, 20% bonds and cash, 12% real estate, 6% each private equity and absolute return, 4% infrastructure and the rest in “other.”
The top-performing asset class for the year was private equity, which returned 16.46%, followed by real estate at 9.8%; mezzanine debt, 9.64%; domestic equities, 7.18%; infrastructure, 4.73%; outsourced CIO allocations, 3.43%; absolute return, 1.71%; global equities, 1.23%; domestic fixed income, 1.15%; non-domestic fixed income, -2.37%; international equities, -5.2%; private markets OCIO allocations, -5.62%; and multiasset emerging markets, -7.4%………………………………………..Full Article: Source

Kuwaitis part of $3bn bid to buy London City Airport

Posted on 21 August 2015 by VRS  |  Email |Print

An international consortium of sovereign wealth and pensions funds, including a London-based division of the Kuwait Investment Authority (KIA), is lining up a bid to buy London City Airport for $3 billion, according to media reports.
Wren Infrastructure Management, a London-based division of the KIA, is part of a consortium that is lining up a bid for the airport located in the heart of the English capital. Canadian giant Ontario Teachers’ Pension Plan and investment fund manager Hermes have joined up to lodge a bid for airport, according to a report the Telegraph………………………………………..Full Article: Source

Saudis Could Face An Open Revolt At Next OPEC Meeting

Posted on 21 August 2015 by VRS  |  Email |Print

Saudi and Gulf Arab OPEC members’ foreign currency reserves and sovereign wealth funds (SWF) comprise approximately 78 percent of total OPEC member holdings, $2.73 trillion of $3.05 trillion.
Of the non-Saudi, non-Gulf Arab ally OPEC members, only Libyan per capita resources exceed the average. (The UAE includes data for three SWF funds only: Abu Dhabi Investment Authority ($773 billion), Abu Dhabi Investment Council ($110 billion), and Investment Corporation of Dubai ($183 billion))………………………………………..Full Article: Source

Asia fails to follow Norge’s ethical investing lead

Posted on 21 August 2015 by VRS  |  Email |Print

A move by the world’s largest institutional investor to exclude four Asian firms from its allocations has highlighted the lack of regional progress in implementing ethical investments. While Europe has taken the lead in rolling out environmental, social and governance (ESG) policies, Asian investors continue to lag behind.
Norges Bank Investment Management, Norway’s sovereign wealth fund, announced on Monday (August 17) that it had removed Malaysia’s IJM Corp and Genting as well as Korea’s Posco and Daewoo International Corp from its investment universe because of their links to the destruction of Indonesian rainforests……………………………………….Full Article: Source

Norwegian fund divestment over environmental concerns

Posted on 21 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund is removing four Asian companies from its investment portfolio for ethical reasons. The fund, officially known as the Government Pension Fund, is financed by profits, taxes and fees from Norway’s offshore oil and gas sector.
It said it was divesting from South Korean steelmaker Posco, its subsidiary Daewoo International Corp, and two Malaysian companies, Genting Berhad and IJM Corporation Berhad, citing the damage they are causing by turning rain forests in Indonesia and Malaysia into palm oil plantations………………………………………..Full Article: Source

Norwegian oil fund sees losses as US equities drop in value

Posted on 21 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund saw its value decline by NOK53bn (€6bn) over the course of the second quarter, as the kroner strengthened and US equity holdings suffered negative returns.
Yngve Slyngstad, chief executive of Norges Bank Investment Management, in charge of the NOK6.9trn Government Pension Fund Global, said fixed income returns were impacted by a rise in yields across its main markets as he announced overall returns of -0.9%, ahead of its benchmark. Fixed income accounted for over a third of assets at the end of June and returned -2.2%, as only securitised debt seeing a positive return………………………………………..Full Article: Source

Norway’s sovereign wealth fund posts first negative return in three years

Posted on 21 August 2015 by VRS  |  Email |Print

Norway’s sovereign wealth fund posted a -0.9 percent return, or a loss of 73 billion Norwegian kroner (8.79 billion U.S. dollars), in the second quarter of 2015, the first negative quarterly return in three years, the fund said on Wednesday.
Equity, fixed-income and real estate investments returned -0.2 percent, -2.2 percent and 2.0 percent respectively in the quarter, 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

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