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Sovereign Wealth Funds Briefing - Archive | November, 2015

Leong: City’s sovereign wealth fund to be managed by government corporation

Posted on 30 November 2015 by VRS  |  Email |Print

The planned sovereign wealth fund for Macau - named by the authorities as the MSAR Investment and Development Fund - will be supported by an allocation from the city’s extraordinary fiscal reserve and managed by a government corporation, Secretary for Economy and Finance Lionel Leong Vai Tac revealed during the Policy Address 2016 debate on Friday.
The proposal of having a government-run corporation to manage the sovereign wealth fund is based on the Monetary Authority of Macau’s (AMCM) study that surveyed public opinion, Mr. Leong told the Assembly. The proposal has already been forwarded to the Chief Executive, the Secretary added………………………………………..Full Article: Source

Sovereign wealth fund legislation by end of 2016 – Trotman

Posted on 30 November 2015 by VRS  |  Email |Print

Before the end of next year, government hopes to lay legislation in the National Assembly to set up a sovereign wealth fund, Minister of Governance Raphael Trotman has said.
“Government envisions that before the end of 2016, model legislation will be laid in the National Assembly for scrutiny and debate and…nationwide consultations will (ensue) before, and during, the process of finalizing this policy through necessary legislation,” he told a workshop focused on the establishment of a Sovereign Wealth Fund (SWF) for Guyana………………………………………..Full Article: Source

Putting more money into SWF is right thing to do, says Orji

Posted on 30 November 2015 by VRS  |  Email |Print

Barely three years after Uche Orji pioneered the Nigerian Sovereign Investment Agency (NSIA), his leadership has turned around the fortunes of the agency. The additional $250 million injected into NSIA by its shareholders, he believes, is a vote of confidence in its management.
The development is that we have a very successful engagement with the National Economic Council which resulted in what we believe is a vote of confidence, as evidenced by the additional contribution that has been made to the Sovereign Wealth Fund of $250 million………………………………………..Full Article: Source

Qatar-US investment dialogue ‘reflects shared values’

Posted on 30 November 2015 by VRS  |  Email |Print

Speaking at the Second Annual Sovereign Wealth Funds (SWF) Conference held at the Kogod School of Business at American University in Washington, DC, on Qatar Investment Authority (QIA)’s strategy, Qatar’s Ambassador to the US, Mohamed Jaham al-Kuwari said that Qatar is ranked in the 14th place among the most competitive economies in the world ahead of numerous member-states at the Organisation for Economic Co-operation and Development (OECD), affirming Qatar’s stable outlook ‘AA’ ratings.
Such a data has contributed in elaborating Qatar’s development strategy through the Qatar National Vision (QNV) 2030, which clearly focuses on the economic and social progress, al-Kuwari said, pointing out that the future generations will not suffer from depletion of non-renewable resources, but will share the benefits of new sources of renewable wealth………………………………………..Full Article: Source

BTG Pactual to sell Brazil hospital stake to GIC, source says

Posted on 30 November 2015 by VRS  |  Email |Print

Grupo BTG Pactual SA has agreed to sell its 12 percent stake in Rede D’Or São Luiz SA, Brazil’s largest hospital chain, to Singapore’s sovereign wealth fund GIC Pte Ltd for almost 2.5 billion reais ($633 million), a source directly involved in the deal said on Sunday.
An announcement could take place early on Monday, said the source, who requested anonymity in order to speak freely about the deal. Executives at the São Paulo-based bank had been negotiating exiting Rede D’Or since August, although the arrest last week of BTG Pactual’s chairman, André Esteves, sped up talks, two other sources said………………………………………..Full Article: Source

Singapore Investment Fund Steps up Real Estate Acquisition

Posted on 30 November 2015 by VRS  |  Email |Print

GIC, which manages more than €95 billion of Singapore’s reserves, is “underinvested” in property and interested in transactions of scale even as it faces an increasingly difficult investment environment.
GIC has about 7% of assets in real estate, while it can invest 9% to 13%, GIC Real Estate president Goh Kok Huat said in his keynote speech at a conference organised by the Asia Pacific Real Estate Association………………………………………..Full Article: Source

1MDB: We broke even on investments in Edra

Posted on 30 November 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) said it has broken even on its investments in Edra Energy Global after it was sold to China General Nuclear Power Corporation (CGN). The sovereign fund said it will receive RM9.83 billion from the deal while CGN will take on Edra’s RM7.43 billion debt.
“Accordingly through cash receipts and debt transfer, 1MDB will achieve debt reduction of up to RM17 billion, which is well within the anticipated RM16 billion to RM18 billion range per the rationalisation plan. “Accordingly, 1MDB has essentially ‘broke even’ on its investment through an international tender process,” the state investment arm said………………………………………..Full Article: Source

1MDB tells Mahathir: Stop slamming power-plant deal

Posted on 30 November 2015 by VRS  |  Email |Print

Malaysian state investment firm 1MDB took issue with former prime minister Mahathir Mohamad yesterday, saying of the “retired and former politician” that he “has failed in his numerous attempts to politicise the 1MDB issue”.
Responding to “false allegations” by Tun Dr Mahathir about the sale of its power assets, 1MDB said the sale of Edra Global Energy will help the state investor achieve a debt reduction of RM17 billion (S$5.6 billion), allowing it to “break even” in its energy investments………………………………………..Full Article: Source

Minister: Do you want 1MDB to go bankrupt?

Posted on 30 November 2015 by VRS  |  Email |Print

Damned if it does, and damned if it doesn’t – Communications and Multimedia Minister Salleh Said Keruak mused whether people would rather see 1MDB bankrupt instead. He said some quarters are unhappy that the state investment company borrowed billions of ringgit for its investments and want the debt settled to mitigate its consequences, which the company has been trying to do.
At the same time, however, these people are also unhappy when local companies such as TNB expressed interest in buying 1MDB’s assets, and deemed this to be a “bailout”, he said………………………………………..Full Article: Source

Norway beefs up supervision of oil fund

Posted on 30 November 2015 by VRS  |  Email |Print

The Norwegian government appointed a new central bank official on Friday to supervise its sovereign wealth fund, boosting the monetary authority’s role as it looks to help the fund adapt to an increasingly complex investment climate.
The new post, which expands the bank’s executive management to three from two, is being filled by economics professor Egil Matsen. The $853 billion rainy-day fund, the biggest of its kind in the world, manages the proceeds of Norway’s oil industry for future generations………………………………………..Full Article: Source

FRR moves into infra investment

Posted on 30 November 2015 by VRS  |  Email |Print

French sovereign wealth fund Fonds de Reserve pour les Retraites (FRR) is broadening its investment strategy from purely fixed-income and equity to French illiquid assets, estate.
The fund plans to invest around €2bn ($2.1bn) across the infrastructure and real estate sectors over the next two years. According to Olivier Rousseau, a member of the fund’s executive board, the scheme started to study illiquid investments last year due to the low interest………………………………………….Full Article: Source

Britain joins sovereign wealth party too late

Posted on 27 November 2015 by VRS  |  Email |Print

Sovereign wealth funds are supposed to help resource-rich countries plan for the future and broaden their economies. Britain’s version of a SWF unveiled by finance minister George Osborne on Nov. 25 will do neither. It is also unlikely to meet its primary objective of swaying opponents of shale gas developments to think otherwise.
Osborne said the Shale Wealth Fund could be worth up to 1 billion pounds over time. According to the finance ministry, this would be funded by siphoning off 10 percent of the revenue it expects to rake in over the next 25 years from companies fracking in the UK………………………………………..Full Article: Source

Oil Find Prompts Guyana to Create Sovereign Wealth Fund

Posted on 27 November 2015 by VRS  |  Email |Print

Guyana’s government announced on Wednesday that it will ask the National Assembly to approve the creation of a sovereign wealth fund linked to the discovery of oil in coastal waters of the disputed Essequibo region, which is claimed by neighboring Venezuela. The bill will be presented in the House of Representatives next year and the government will also seek input from the public, Governance Minister Raphael Trotman said.
“Nationwide consultations will be held both before and during the process of finalizing this policy through necessary legislation,” he said. Trotman said that while the impetus for the establishment of the fund comes from the oil find, government revenues from the exploitation of gold, diamonds, bauxite and other commodities would also be deposited in the fund………………………………………..Full Article: Source

Markets cautiously ‘optimistic’ on 1MDB’s China sale

Posted on 27 November 2015 by VRS  |  Email |Print

The market reaction on scandal-ridden 1MDB selling its power assets, Edra Global Energy, to a state-owned Chinese company has been good, said the BBC in a report. The report said that it remains to be seen whether research houses can now finally continue to upgrade their forecasts for the Kuala Lumpur Stock Exchange, stuck in the doldrums for so long following the 1MDB scandal and a combination of other negative news and events.
For the moment at least, noted the report, the ringgit for one is bucking the trend and moving up against the US dollar while the rupiah and baht continue their downward slide. The ringgit has already fallen 18 per cent against the USD, a slight improvement from the 25 per cent at the lowest so far………………………………………..Full Article: Source

1MDB Aims To Resolve Debt Issue, Dewan Told

Posted on 27 November 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) aims to resolve its debt and cashflow problem without the government’s financial assistance, said Deputy Finance Minister Datuk Johari Abdul Ghani. He said the sovereign wealth fund implemented its strategic rationalisation plan early this year to resolve its RM42 billion debt.
“If all the strategic plans are implemented quickly and without any hurdles, it would reduce 1MDB’s debt interest charges,” Johari said when replying to Rantau Panjang MP Siti Zailah Mohd Yusoff in Parliament ……………………………………….Full Article: Source

GIC looking to buy more real estate assets

Posted on 27 November 2015 by VRS  |  Email |Print

GIC, which manages more than US$100 billion (S$141 billion) of Singapore’s reserves, is “underinvested” in property and interested in transactions of scale even as it faces an increasingly difficult investment environment.
GIC has about 7 per cent of assets in real estate, while it can invest 9 per cent to 13 per cent, GIC Real Estate president Goh Kok Huat said in his keynote speech at a conference organised by the Asia Pacific Real Estate Association………………………………………..Full Article: Source

Abu Dhabi-backed consortium in $7bn Australian utilities deal

Posted on 27 November 2015 by VRS  |  Email |Print

A consortium including Abu Dhabi Investment Authority (ADIA) is to invest A$10.3 billion ($7 billion) in one of Australia’s biggest utilities networks. Under the deal, the NSW Electricity Networks (NSWEN) consortium will take a 99-year lease on the TransGrid electricity network in New South Wales.
NSWEN is led by Canadian pension fund CDPQ (Caisse de dépôt et placement du Québec), which has a 25 percent stake, and also includes Tawreed Investments – a wholly-owned subsidiary of ADIA; Spark Infrastructure, Hastings Funds Management (which is manager of the Utilities Trust of Australia), and Wren House Infrastructure Management, a wholly owned investment vehicle of the Kuwait Investment Authority (KIA)………………………………………..Full Article: Source

Blackstone Sells Midtown’s London Hotel to Abu Dhabi Fund For $382M

Posted on 27 November 2015 by VRS  |  Email |Print

Just a month after news broke about Blackstone Group’s plan to buy Stuyvesant Town-Peter Cooper Village for $5.3 billion, the private equity firm has sold the London Hotel in Midtown to sovereign wealth fund for $382 million to Abu Dhabi Investment Authority (ADIA).
The sale of the 54-story, 563-key property at 151 West 54th Street between Avenue of the Americas and Seventh Avenue closed on Nov. 11, as The New York Post first reported. ADIA also acquired the ground lease at the property, which is owned by the estate of Sol Goldman, and will pay $157 million through 2136, according to The Post………………………………………..Full Article: Source

GloFo Sale: Report Says Abu Dhabi Holding Talks

Posted on 27 November 2015 by VRS  |  Email |Print

Abu Dhabi sovereign wealth fund Mubadala Development Co. has held talks with potential buyers for all or part of Globalfoundries Inc. according to a Bloomberg report that cited unnamed sources. The report added that the company might fetch $15 billion or $20 billion if a deal goes ahead but did not name any potential buyers.
However, it was reported back in September that Hua Capital Management, which looks after China’s national IC investment fund, had approached Globalfoundries over possible cooperation. Abu Dhabi is reviewing its state-owned companies, including Mubadala, for potential asset sales as the emirates finances come under pressure due to the current collapse in oil prices………………………………………..Full Article: Source

Guyana crafting Sovereign Wealth Fund legislation

Posted on 26 November 2015 by VRS  |  Email |Print

Guyana will next year table legislation in the National Assembly to create a Sovereign Wealth Fund (SWF), ahead of commercial drilling for oil by American oil giant, Exxon Mobil, Minister of Governance Raphael Trotman announced Wednesday.
Addressing the opening of a workshop on the SWF’s creation at the Arthur Chung Conference Centre (ACCC), he said the Bill would be laid in the House before the end of 2016 for scrutiny and debate as well as inputs from the wider Guyanese public. “Nationwide consultations will be held both before and during the process of finalizing this policy through necessary legislation,” he said………………………………………..Full Article: Source

Sovereign Wealth Fund consultation commences

Posted on 26 November 2015 by VRS  |  Email |Print

The Government of Guyana, in collaboration with the Canadian High Commission and the University of Calgary’s School of Public Policy, today began a two-day workshop on the establishment of a Sovereign Wealth Fund (SWF) for the country. The event is being held at the Arthur Chung Convention Centre (ACCC).
During the course of the next two days, the facilitating team will undertake a study of current legislative policies to see how best they can be improved to suit the Oil and Natural resources sectors………………………………………..Full Article: Source

GIC ‘underinvested’ in real estate, eyes deals in key gateway cities

Posted on 26 November 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC on Wednesday said that it is “underinvested” in property. Real estate currently makes up 7 per cent of its asset mix. It plans to raise this proportion to 9-13 per cent. It will do so by looking at big transactions in deep and liquid markets in key gateway cities. Emerging markets will also be important for its long-term strategy, notwithstanding short-term geopolitical risks.
GIC will also continue to partner global players, including private equity firms and other sovereign wealth funds, on bigger deals as competition heats up for global assets………………………………………..Full Article: Source

GIC looking to buy more real estate assets

Posted on 26 November 2015 by VRS  |  Email |Print

GIC, which manages more than US$100 billion (S$141 billion) of Singapore’s reserves, is “underinvested” in property and interested in transactions of scale even as it faces an increasingly difficult investment environment.
GIC has about 7 per cent of assets in real estate, while it can invest 9 per cent to 13 per cent, GIC Real Estate president Goh Kok Huat said in his keynote speech at a conference organised by the Asia Pacific Real Estate Association……………………………………….Full Article: Source

China’s top cities to see home prices rise amid demand, says GIC

Posted on 26 November 2015 by VRS  |  Email |Print

Home prices in Beijing and Shanghai, which have surged this year, have room to rise further as the inflow of residents bolsters demand in China’s biggest cities, said the head of real estate investments at Singapore’s sovereign wealth fund.
Despite some short-term volatility, the long-term outlook for the China’s real estate market is solid given its growth prospects, Goh Kok Huat, president of GIC Pte’s real estate unit, said in an interview on Wednesday with Bloomberg Television’s Haslinda Amin in Singapore. Retail properties face consolidation in China’s cities as more consumers turn to online shopping, he said………………………………………..Full Article: Source

Singapore’s sovereign fund GIC likes properties here

Posted on 26 November 2015 by VRS  |  Email |Print

GIC, Singapore’s sovereign wealth fund, is taking a long view on its real-estate investments, particularly eyeing emerging markets despite recent turmoil, the president of the fund’s property division said. The usually tight-lipped fund has plenty of dry powder to pursue property deals.
he fund, which manages upwards of $100 billion, has an allocation of 9-13 percent of its portfolio toward property, but at the moment only around 7 percent has been invested in the segment. GIC’s property portfolio has more than 350 investments in over 40 countries. GIC’s mandate bars it from investing in Singapore’s property market………………………………………..Full Article: Source

Blackstone sells London NYC to Abu Dhabi fund for $382M

Posted on 26 November 2015 by VRS  |  Email |Print

The Abu Dhabi Investment Authority, the nation’s sovereign wealth fund, has added to its portfolio of Manhattan hotels. The fund paid $382 million, or $678,000 per room, to the Blackstone Group for the leasehold for the 563-key London NYC Hotel at 151 West 54th Street, between Sixth and Seventh avenues in Midtown.
Of that total, $194 million paid for the property itself, with the remaining $154 million made on the building’s debt. As per the lease agreement, the ADIA will pay $157 million to the Sol Goldman estate through 2136. Roy March, Larry Wolfe and Mark Schoenholtz of Eastdil Secured represented Blackstone in the deal………………………………………..Full Article: Source

Malaysia’s 1MDB in China power deal that’s moving markets

Posted on 26 November 2015 by VRS  |  Email |Print

It’s rare to see the Malaysian ringgit rise against the US dollar - especially given its performance this year - down some 18%. Even more curious that it happened while regional currencies like the Indonesian rupiah and Thai baht continued to fall. Research houses are also upgrading their forecasts for Malaysia’s stock markets and the economy.
So what’s driving all this positivity? Well, in part it is thanks to the sale of the energy assets at one of Malaysia’s most notorious institutions: IMDB. 1Malaysia Development Bhd (1MDB) is a state investment fund set up in 2009 and was supposed to turn Kuala Lumpur into a financial hub. But it is currently on a fragile financial footing………………………………………..Full Article: Source

Malaysia’s scandal-hit 1MDB sells energy assets for $2.3B

Posted on 26 November 2015 by VRS  |  Email |Print

Malaysia’s beleaguered sovereign wealth fund 1Malaysia Development Berhad (1MDB) has sold its energy assets for 9.83 billion ringgit ($2.3 billion) to a Chinese nuclear power supplier, in a move that should help it cut its debt burden.
As part of the deal, which is expected to be completed in February 2016, China General Nuclear Power and its subsidiaries will acquire the Edra group of companies and assume all the relevant gross debt and cash. This transaction was a major milestone in the 1MDB rationalization plan that was presented to Malaysia’s cabinet on May 29, 1MDB said in a statement………………………………………..Full Article: Source

Kazakhstan’s national companies face major restructuring

Posted on 26 November 2015 by VRS  |  Email |Print

Kazakhstani national companies will soon be facing a major restructuring. Samruk Kazyna National Wealth Fund plans to cut expenditures by 519 billion tenge ($16.9 billion) by selling non-core assets to increase the company’s value after major changes. As the national wealth fund, Samruk Kazyna is bound to conduct various social projects. Yet, to increase the return, the fund plans to get rid of a number of companies that are currently part of the fund.
Samruk-Kazyna is a sovereign wealth fund and joint stock company in Kazakhstan which owns, either in whole or in part, many important companies in the country, including the national rail (Kazakhstan Temir Zholy) and postal service (KazPost), state oil and gas company KazMunayGas, state uranium company Kazatomprom, Air Astana, and numerous financial groups………………………………………..Full Article: Source

UK to launch sovereign fund with proceeds from shale gas

Posted on 26 November 2015 by VRS  |  Email |Print

The UK is to launch a sovereign wealth fund with the receipts of shale gas revenue, the government has confirmed. First mentioned in July’s Budget, chancellor of the Exchequer George Osborne confirmed its creation during the Autumn Statement, when he pledged to support the shale gas industry “by ensuring communities benefit from a shale wealth fund”.
The UK Treasury also revealed that up to 10% of shale gas tax revenue would be diverted to the new sovereign wealth fund, which it said would invest in local communities “hosting shale gas developments”………………………………………..Full Article: Source

Elite funds prepare for reflation and a bloodbath for bonds

Posted on 26 November 2015 by VRS  |  Email |Print

The Norwegian Pension Fund, the world’s top sovereign wealth fund, is rotating a chunk of its $860bn of assets into property in London, Paris, Berlin, Milan, New York, San Francisco and now Tokyo and East Asia. “Every real estate investment deal we do is funded by sales of government bonds,” says Yngve Slyngstad, the chief executive.
It already owns part of the Quadrant 3 building on Regent Street, and bought the Pollen Estate - along with Saville Row - from the Church Commissioners last year. But this is just a nibble. The fund is eyeing a 15pc weighting in property, an inflation-hedge if ever there was one………………………………………..Full Article: Source

Why Arab funds are stepping up investments in Russia

Posted on 26 November 2015 by VRS  |  Email |Print

The sovereign investment fund of Kuwait, Kuwait Investment Authority, will invest an additional $500 million in the Russian economy. On Nov. 10, it signed an agreement to that effect with the Russian Direct Investment Fund (RDIF), a special investment fund set up by the Russian government in 2011 to attract foreign investment into the fast-growing sectors of the Russian economy.
Thus, the amount of Kuwaiti investment into Russian projects will double. The Kuwaiti fund had already invested $500 million in Russia in 2012. “The RDIF is the first and only fund to have raised over $20 billion worth of long-term investment into Russia from major Middle East sovereign funds,” a RDIF spokesman told RBTH………………………………………..Full Article: Source

Adia consortium to invest A$10.3 billion in Australia’s TransGrid electricity network

Posted on 26 November 2015 by VRS  |  Email |Print

A consortium including Abu Dhabi Investment Authority will invest A$10.3 billion (Dh27.42bn) in one of Australia’s biggest utilities. The deal involves a 99-year lease on the TransGrid electricity network in New South Wales. The winning group that took control of TransGrid was led by the Canadian pension fund Caisse de depot et placement du Quebec, which has a 25 per cent stake.
Adia, through its Tawreed Investments unit, has a 20 per cent stake. Meanwhile, Hastings Fund Management has 20 per cent, while Kuwaiti investors have 20 per cent and Spark Infrastructure has 15 per cent, according to the Australian government………………………………………..Full Article: Source

SWF redemptions as a 2016 risk factor

Posted on 26 November 2015 by VRS  |  Email |Print

Remember the days when SWFs were considered the saviours of the universe? The white knights of the banking crisis? The clients every asset manager wanted to have. Well, fast-forward seven years or so and they’re bullet point number seven in Morgan Stanley’s “10 Surprises for 2016″ outlook piece. A bigger risk, they add, than retail mutual fund redemptions. Who’d have thought, eh?
From banking research team (our emphasis): SWF redemptions may prove more material than retail mutual fund withdrawals – but mutual fund stress tests will be introduced due to concerns on corporate bond market liquidity driving cost creep, whilst FCA competition review will add to regulatory uncertainties for UK based asset managers………………………………………..Full Article: Source

The Sovereign Wealth Fund Discount: Evidence From Public Equity Investments

Posted on 26 November 2015 by VRS  |  Email |Print

By some measures, SWFs have already been extensively researched. Yet extant empirical research offers incomplete evidence about the impact of Sovereign Wealth Fund investments on the value of publicly traded companies.
Studies that examine SWF investments using event-study techniques (Dewenter, Han, and Malatesta 2010; Kotter and Lel 2011) find positive announcement-period returns. Unfortunately, these results offer little insight into the role of SWFs as investors, as corporate finance research consistently documents positive announcement-period abnormal returns for all types of direct stock purchases by institutional investors………………………………………..Full Article: Source

China’s Clout in Malaysia Set to Grow After 1MDB Deal

Posted on 25 November 2015 by VRS  |  Email |Print

China’s $2.3 billion deal to buy power assets from a debt-ridden Malaysian government-investment fund could give Beijing greater sway in the Southeast Asia nation and pave the way for Chinese companies to win a string of coveted infrastructure deals.
State-owned China General Nuclear Power Corp. agreed to pay 9.83 billion Malaysian ringgit ($2.3 billion) in cash and take on an unspecified amount of debt for a group of power plants from 1Malaysia Development Bhd., or 1MDB………………………………………..Full Article: Source

Abu Dhabi Fund Said to Be Exploring Sale of Globalfoundries

Posted on 25 November 2015 by VRS  |  Email |Print

Abu Dhabi’s investment arm is considering a sale of all or part of chipmaker Globalfoundries Inc. as the emirate explores asset disposals amid a slump in crude oil, people familiar with the matter said.
Sovereign fund Mubadala Development Co. has held early talks with potential acquirers, the people said, asking not to be identified as the information is private. No final decision has been made and discussions could still fall apart, the people said. A transaction could value the business at $15 billion to $20 billion, the people said………………………………………..Full Article: Source

Shell wins backing of Qataris for BG takeover

Posted on 25 November 2015 by VRS  |  Email |Print

One of the biggest shareholders in Royal Dutch Shell has thrown its weight behind the oil group’s £43 billion takeover of BG Group, despite mounting concerns about the impact of plunging oil prices on the commercial logic that underpins the deal.
The Qatar Investment Authority, the sovereign wealth fund that holds a stake of up to 2 per cent in the Anglo-Dutch group and also is a shareholder in BG, is understood to be “fully supportive” of the proposed transaction, which was announced in April. The tie-up, which has been approved by Brazilian and European antitrust authorities, is awaiting clearance………………………………………..Full Article: Source

Irish SWF to withdraw billions from asset managers

Posted on 25 November 2015 by VRS  |  Email |Print

Ireland’s government will take several billion dollars out of the Ireland Strategic Investment Fund, the country’s sovereign wealth fund (SWF), over the next five years to spend on helping boost the Irish economy, the Financial Times reports.
The fund, which has $8.4 bn in investable assets, will withdraw funds from global investment managers but continue to invest with asset managers that have funds focused on Ireland and in other areas it considers will help the Irish economy, the newspaper reports, citing fund director Eugene O’Callaghan………………………………………..Full Article: Source

The Sovereign Wealth Fund Discount: Evidence From Public Equity Investments

Posted on 25 November 2015 by VRS  |  Email |Print

Among state-owned investors, sovereign wealth funds (SWFs) play an especially prominent role, with investable assets estimated at over $4 trillion and growing faster than any other institutional investor group.
The rapid rise of SWFs begs a question: can state-sponsored funds, such as SWFs, ever act as objective, commercially driven long-term global investors, managing their nation’s wealth as investment fiduciaries of their citizens? Our paper addresses this issue by studying the impact of SWF investment on firm value………………………………………..Full Article: Source

Sovereign Wealth Funds Redemption Risk Overblown?

Posted on 25 November 2015 by VRS  |  Email |Print

The MS analysts begin by highlighting that both media reports and some management commentary have suggested that certain “petrodollar-related” sovereign wealth funds have been withdrawing billions of dollars from asset managers because of growing national deficits and to minimize exposure to volatile equity markets given much lower crude oil prices.
Cyprys et al. argue that these SWF redemption concerns are really overblown given that only 60% of SWF assets are held by oil-reliant economies, and, moreover, current fiscal pressures vary dramatically………………………………………..Full Article: Source

Alaska Permanent falls 4.4% in third quarter

Posted on 24 November 2015 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned -4.4% for the quarter ended Sept. 30, ahead of its -5.5% benchmark, said a news release from the $50.5 billion sovereign wealth fund. Falling global equity markets drove much of the decline in the fund’s first quarter of its fiscal year.
Domestic equities returned -7.7% for the quarter; international equities, -12.9%; and global equities, -8.8%. Top performers included private equity and real estate, which returned 5.5% and 3.8%, respectively. U.S. bonds were relatively flat at 0.2%. International bonds, infrastructure and absolute return were slightly negative, returning -1.6%, -0.5% and -1.7%, respectively………………………………………..Full Article: Source

Rwanda: Agaciro Fund to Diversify Investment Portfolio to Maximise Returns

Posted on 24 November 2015 by VRS  |  Email |Print

Rwanda’s sovereign wealth fund, Agaciro Development Fund (AgDF), will diversify its investment portfolio to venture into different sectors of the economy to maximise returns, Amb Claver Gatete, the Minister for Finance and Economic Planning, has said.
“We have been investing in Treasury bonds and bank deposits, but now we want to diversify into other sectors as we believe that will help us to maximise returns and grow the Fund,” he said while receiving Rwf10 million contribution from MTN Rwanda in Kigali. Government bonds and short-term bank deposits earn the Fund an annual interest of between eight and 12 per cent………………………………………..Full Article: Source

Qatar Investment Authority eyes Paris and Tokyo

Posted on 24 November 2015 by VRS  |  Email |Print

Qatar Investment Authority (QIA) and Ascott’s Serviced Residence Global Fund are set to invest US $137 million in assets in Paris and Tokyo. The fund has acquired two prime properties in Paris and Tokyo for $104 million, adding Citadines Suites Champs-Élysées Paris – former private residence of Hennessy family – and Somerset Shinagawa Tokyo to the portfolio.
A further investment of $33 million will convert the office building in Paris into a luxury serviced residence, and will embark on asset enhancement to reposition the serviced residence in Tokyo, bringing the total investment to $137 million………………………………………..Full Article: Source

Malaysia’s 1MDB to Sell Energy Assets to China Nuclear Firm

Posted on 24 November 2015 by VRS  |  Email |Print

A Malaysian government-investment fund struggling to dig itself out of a heavy debt load sealed a $2.3 billion deal to sell a collection of energy assets to a Chinese state-owned firm. China General Nuclear Power Corp. is purchasing all of the energy assets of 1Malaysia Development Bhd., or 1MDB, for 9.83 billion Malaysian ringgit ($2.3 billion) in cash.
Those assets, known as Edra, consist of 13 power plants across five countries from Malaysia to Egypt and Bangladesh. China General Nuclear will also assume an unspecified amount of debt as part of the deal………………………………………..Full Article: Source

GIC to increase exposure to UK property market, exploring Africa

Posted on 24 November 2015 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC will be looking to increase its exposure to the UK property market particularly in commercial real estate. A state investment major, GIC is one of the wealthiest global state funds with its real estate arm owning properties across 40 countries, overseen by 150 employees in nine offices.
In a report by the Wall Street Journal, Goh Kok Huat, COO and president of real estate at GIC, said, “We are not pulling back from the U.K. We are still open for business.” Spoken on the sidelines of the IPD/IPF Property Investment Conference, Goh expressed interest in increasing GIC’s holdings in London, given that the UK property market has become a focal point for global investors hunting for yield amid low interest rates………………………………………..Full Article: Source

Norway’s Government Pension Fund Global acquires property in New York

Posted on 24 November 2015 by VRS  |  Email |Print

Norges Bank Investment Management has acquired a 44 per cent share in a property portfolio in New York City on behalf of the Government Pension Fund Global.
The portfolio comprises of 11 office properties, in a joint venture with Trinity Wall Street. It cost US $1.56bn (€1.47bn), with the total value of the portfolio at US $3.55bn (€3.33bn) and gives the fund a 75-year ownership interest. The binding agreement was signed 20 November 2015 and is expected to close before year-end 2015………………………………………..Full Article: Source

Khazanah, GIC, Temasek in talks for stake in Sutures India

Posted on 23 November 2015 by VRS  |  Email |Print

India-focused private equity (PE) firm CX Partners is in talks with four global PE firms to sell its 20% stake worth some Rs.400 crore in surgical equipment maker Sutures India Pvt. Ltd, according to two people familiar with the development.
Malaysian sovereign wealth fund Khazanah Nasional Bhd, Singapore’s sovereign wealth fund GIC, Temasek Holdings Pte and Baring Private Equity Asia are in talks with CX Partners to acquire the stake, said the first person. The enterprise value of Sutures is $300 million (around Rs.2,000 crore), the second person said. Both declined to be named………………………………………..Full Article: Source

NZ Super Fund’s responsible investor strategy pays off - Matt Whineray

Posted on 23 November 2015 by VRS  |  Email |Print

Being set up as a responsible investor was a smart move for New Zealand’s sovereign wealth fund, a report by NZ Super Fund has found. In a “white paper” released on Thursday by the NZ Super Fund, which manages just under $30 billion for the Government, says there is now strong evidence companies that do well on “environmental, social and governance” (ESG) fronts deliver better returns for investors.
These are companies that do not breach human rights, do not abuse the environment, and are well-managed and transparent………………………………………..Full Article: Source

1MDB Nearing Sale Of Power Assets To China/Qatar Consort

Posted on 23 November 2015 by VRS  |  Email |Print

1MDB is nearing the sale of its power assets to a consortium including Qatar’s Nebras Power and China General Nuclear Power Holding Corp, people familiar with the matter said on Friday, in a deal that would bring relief to the scandal-hit state fund.
1Malaysia Development Bhd (1MDB), currently at the centre of a political and financial scandal that has also embroiled Prime Minister Najib Razak, needs to shed assets to pare back $11 billion of debt. The people declined to disclose the deal value, but a person familiar with the matter previously told Reuters it could value the assets at about RM18 billion ($4.2 billion) including net debt………………………………………..Full Article: Source

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