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Sovereign Wealth Funds Briefing - Archive | November, 2015

GIC, Russia-China Fund Join $200M Series C Round In TutorGroup

Posted on 23 November 2015 by VRS  |  Email |Print

Shanghai-based English language online learning platform TutorGroup has completed US$200 million series C round of financing from Singapore’s sovereign wealth fund GIC, the Russia-China Investment Fund, Goldman Sachs and Silverlink Capital L.P., says an announcement.
Existing investors also participated in the round, which values TutorGroup at over US$1 billion. The company says it will use the proceeds on expanding internationally and growing its existing business platform. TutorGroup also plans to expand its education subjects beyond language learning to other areas such as legal counsel, medical advice, and personal wealth management………………………………………..Full Article: Source

France’s CMA in exclusive talks to buy Temasek’s shipper

Posted on 23 November 2015 by VRS  |  Email |Print

France’s CMA CGM SA is in exclusive talks to buy Singapore’s Neptune Orient Lines Ltd, as global shipping companies grapple with ways to revive earnings amid a glut of new vessels, shrinking demand and declining prices. A deal would bring together the world’s third-largest container company with Southeast Asia’s biggest container shipper. CMA CGM has until December 7 to complete a due diligence review and negotiate the definitive agreements for the offer, Neptune Orient said in a statement Saturday.
The Singapore-based liner is 67 per cent-owned by state investment company Temasek Holdings Pte. “Temasek has been looking for a buyer for a while now, so if somebody comes along with a price they and NOL are comfortable with, consolidation may be good,” said Song Seng Wun, an economist at CIMB Private Banking in Singapore………………………………………..Full Article: Source

Norway Wealth Fund Backs Push to End Banks’ Dominance Over Bonds

Posted on 23 November 2015 by VRS  |  Email |Print

The world’s largest sovereign investor wants to curtail the big banks’ hold over bond trading. The $860 billion Norwegian sovereign-wealth fund is backing the European Union’s campaign to bring transparency to the bond market and make debt trade more like stocks.
The fund says the current setup — where investors call a bank to get a price — is dysfunctional and should be fixed by forcing the banks to publish their prices. The fund will make reform of Europe’s debt markets one of its priorities, according to Oeyvind Schanke, its chief investment officer for asset strategies. It’s easy to see why………………………………………..Full Article: Source

SOFAZ to cut investing in shares on U.S. stock markets

Posted on 23 November 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, an entity that accumulates and manages the country’s oil and gas revenues, plans to reduce investing in shares on the U.S. stock markets. This was announced by Elnur Babayev, the representative of SOFAZ’s investment department, at a workshop for journalists entitled “State Oil Fund of Azerbaijan: managing of funds and investments.”
He said that SOFAZ will redirect these investments to the shares on the European stock markets. “The reason for SOFAZ’s such a decision was the expected increase in the interest rates in the U.S.,” he said………………………………………..Full Article: Source

NEC approves $150m NNLG fund for sharing by three tiers of government

Posted on 23 November 2015 by VRS  |  Email |Print

The National Economic Council rose from its monthly meeting on Thursday approving the sharing of $150 million among the three tiers of government. The money is part of the $400 million dividends paid by the Nigerian Liquefied Natural Gas. Vice President Yemi Osinbajo (SAN) chaired the meeting at the State House Council Chambers.
Briefing State House correspondents after the meeting, Governor Rauf Aregbesola of Osun State, flanked by his Enugu State counterpart, Ifeanyi Ugwuanyi, said the Council has also directed that the balance of $250 million from the NNLG dividend be invested in the Nigeria Sovereign Investment Authority………………………………………..Full Article: Source

Nigeria makes first 2015 contribution to sovereign wealth fund

Posted on 23 November 2015 by VRS  |  Email |Print

Nigeria will inject $250 million into its sovereign wealth fund, an official said on Thursday, making the first contribution since last year as government savings slightly improved despite a plunge in oil prices.
The money will come from recent proceeds from liquid natural gas exports, Rauf Aregbesola, governor of the southern Osun state, told reporters in Abuja. President Muhammadu Buhari, who took office in May, was elected on a campaign to root out oil theft and corruption, which has deepened an economic crisis triggered by the falling price of Nigeria’s oil exports………………………………………..Full Article: Source

Administration will introduce bill to convert Fund earnings

Posted on 23 November 2015 by VRS  |  Email |Print

The slide in crude oil prices is continuing, and transforming Alaska’s state finances to revenue sources more predictable and sustainable than oil income has taken on more urgency. Year-to-date prices for North Slope crude oil were at an average of $49.98 per barrel as of Nov. 17. That’s since July 1, the start the current fiscal year, and it is $16 per barrel less than the price of $66.03 per barrel predicted by the state last March and used as the basis for budget planning.
Year-over-year production numbers are better, with an increase of about 3.7 percent since the start of the fiscal year through Nov. 15. Daily production in November is averaging about 555,000 barrels per day compared to about 537,000 barrels per day in November 2014………………………………………..Full Article: Source

Saudi Arabia SWF plans Fannie Mae-style mortgage company

Posted on 19 November 2015 by VRS  |  Email |Print

Saudi Arabia is working with the Boston Consulting Group to help start a state-owned mortgage firm similar to the US’s Fannie Mae and Freddie Mac as it seeks to develop a secondary market for home loans, people with knowledge of the plans said. Public Investment Fund, the kingdom’s sovereign wealth fund, will provide most of the approximately 10 billion riyals (Dh9.79 billion or $2.67 billion) of the institution’s capital, three people said, asking not to be identified because the plans aren’t public.
PIF is in the process of selecting an executive to lead the new company, according to two of the people. Saudi Arabia is seeking to boost home ownership amid one of the world’s lowest mortgage penetration rates. It approved a mortgage law in 2013 and is planning to tax undeveloped land within urban boundaries to boost the availability and affordability of homes…………………………………….Full Article: Source

Expect UAE Sovereign Fund to Invest in India Soon, says Jaitley

Posted on 19 November 2015 by VRS  |  Email |Print

The sovereign wealth fund of the United Arab Emirates should start investing in India soon, Finance Minister Arun Jaitley told Reuters on a visit to Dubai to drum up interest in Asia’s third-largest economy.
The first investment in India could be into India’s national infrastructure fund, Mr Jaitley said in an interview, adding that the government would put legal structures and tax predictability in place to attract sovereign wealth funds. ADIA’s first investment in India could be with the National Investment and Infrastructure Fund, set up in August with a mandate to co-invest with strategic partners and own 49% of projects……………………………………..Full Article: Source

Bahrain’s SWF signs Indian JV to build aluminium factory

Posted on 19 November 2015 by VRS  |  Email |Print

Mumtalakat and India’s Synergies Castings will build a $150 million downstream aluminium facility in Bahrain, the chief executive of the kingdom’s sovereign fund said on Wednesday. The aluminium casting and specialty alloy wheel manufacturing plant, will take around 18 months to build and is expected to open in late-2017, Mahmood al-Kooheji told Reuters.
“There is a secure channel for the products as they have the customer demand, which will make it very easy to make profits,” said Kooheji, adding that the joint venture was the first outside India for Synergies Castings, which supplies alloy wheels to car companies including General Motors, Ford and Toyota……………………………………..Full Article: Source

Kazakhstan plans IPOs for 43 large state firms in 2016-17

Posted on 19 November 2015 by VRS  |  Email |Print

Kazakhstan plans to sell stakes of at least 25 percent in 43 large state-owned companies via initial public offerings (IPOs) in 2016-17, the Samruk-Kazyna sovereign wealth fund said. The government faces a plunge in revenues from oil, Kazakhstan’s main export. President Nursultan Nazarbayev told a government meeting on Wednesday he wanted Kazakh businessmen and companies to take part in the privatisations.
The stakes will be sold on the floor of the oil-rich nation’s financial centre being built in the capital Astana, the fund said. The businesses to go public include oil and gas company KazMunaiGas, uranium company Kazatomprom, railway company Kazakhstan Temir Zholy and mining firm Tau-ken Samruk, it said……………………………………..Full Article: Source

Azerbaijan Oil Fund’s budget for 2016 offered with deficit of 19% of costs

Posted on 19 November 2015 by VRS  |  Email |Print

The Supervisory Board of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) held a meeting on 30 October 2015. The meeting chaired by Artur Rasizadeh, Prime Minister of Azerbaijan and Chairman of the Supervisory Board endorsed the SOFAZ’s draft budget for 2016. The SOFAZ press release says that Fund’s 2016 budget revenues were offered at the level of AZN 6.7 bn and expenditures at AZN 8.26 bn.
“The Supervisory Board recommended the Fund’s 2016 draft budget, including the major directions of its investment policy and projects for the approval by the President of Azerbaijan,” it was informed. The Supervisory Board approved a transition of the Oil Fund’s accounting system from International Public Sector Accounting Standards (IPSAS) to International Financial Reporting Standards (IFRS)……………………………………..Full Article: Source

TutorGroup raises $200 million in Series C funding

Posted on 19 November 2015 by VRS  |  Email |Print

Singapore’s sovereign fund GIC, the Russia-China Investment Fund (RCIF), Goldman Sachs Group Inc and Silverlink Capital LP participated in the funding round. TutorGroup, which offers online courses on English in the greater China region and for Chinese students abroad, has already attracted investments from Alibaba Group Holding Ltd and Temasek.
“Despite an extremely challenging fundraising environment, we generated significant interest and excitement from some of the world’s top investors, which validates the clear leadership we have established in the online education market and underscores our belief that TutorGroup has the right technology, strategy and team to be the long-term winner in the industry,” said Dr. Ming Yang, Founder of TutorGroup……………………………………..Full Article: Source

PAC chief says 1MDB, Najib’s RM2.6 billion two separate issues

Posted on 19 November 2015 by VRS  |  Email |Print

The interim auditor-general’s report on 1Malaysia Development Berhad (1MDB) has stated that 1MDB and the RM2.6 billion in Prime Minister Datuk Seri Najib Razak’s personal accounts are “different subjects”, Public Accounts Committee (PAC) chairman Datuk Hasan Arifin said.
“I must state here that 1MDB and RM2.6 billion are completely different subjects. They are not the same,” Hasan said during a press conference today. Asked how PAC came to such a conclusion, Hasan said his statement was based on the interim report released in the middle of this year and never made public to date …………………………………….Full Article: Source

PKR MP risks censure for naming wrong person in 1MDB question

Posted on 19 November 2015 by VRS  |  Email |Print

PKR’s Kelana Jaya MP Wong Chen might be hauled up to the rights and privileges committee for naming the wrong individual in a parliamentary question related to 1Malaysia Development Berhad (1MDB), Deputy Home Minister Datuk Nur Jazlan Mohamed said.
Wong had named Deutsche Bank country manager Yusof Annuar Yaacob as one of five individuals sought by authorities in connection with investigations into 1MDB, but later admitted making a mistake. He said he had meant to name SRC International director Datuk Suboh Md Yassin instead of Yusof. …………………………………….Full Article: Source

India woos Sovereign Wealth Funds from UAE

Posted on 18 November 2015 by VRS  |  Email |Print

Indian Finance Minister Arun Jaitley on Tuesday invited sovereign wealth funds of the UAE to invest in National Infrastructure and Investment Fund (NIIF), saying it will provide good return. NIIF will attract good return on the investment made by the Sovereign Wealth Funds, the Finance Ministry said in a statement.
“It’s a great opportunity for UAE Sovereign Wealth Funds and Pension Funds to make best use of it and make big investment in India,” it said. Abu Dhabi Investment Authority, or Adia, has shown keen interest in making investment on NIIF……………………………………….Full Article: Source

Abu Dhabi is keen to invest in India’s infrastructure fund

Posted on 18 November 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority (ADIA), a $770 billion sovereign wealth fund of the Emirate of Abu Dhabi, has expressed interest in investing in the Rs 20,000 crore National Infrastructure Investment Fund (NIIF) being set up by the government.
Officials of the wealth fund will be visiting India on Thursday to take the discussions on investments further, ADIA managing director Shiekh Hamed Bin Jayed al Nahyan told finance minister Arun Jaitley during a meeting between the two in Abu Dhabi. Jaitley who is on a two-day visit to the United Arab Emirates (UAE) to attract investments had extended the invitation to ADIA for participating in the fund……………………………………….Full Article: Source

Is IPIC main investor in Yurus Private Equity Fund?

Posted on 18 November 2015 by VRS  |  Email |Print

Answer the questions on the USDD69 million (RM300 million) proceeds that the Yurus Private Equity Fund earned in less than six months, Kelana Jaya MP Wong Chen has urged 1MDB-DuSable. This comes following the recent Wall Street Journal (WSJ) report that the investor in the Yurus Private Equity Fund is Aabar Investments PJS, a subsidiary of Abu Dhabi sovereign-wealth fund International Petroleum Investment Co (IPIC).
“This revelation is worrying as it raises questions whether the USD$69 million deal was done at an arms-length basis,” he said, referring to how IPIC is currently involved in a USD3.5 billion financing deal to help 1MDB’s rationalization scheme. He wants 1MDB-DuSable to confirm the WSJ report on whether IPIC is the main investor and whether the deal was done at an arms-length basis, and asked them to disclose how much money DuSable made from the deal………………………………………..Full Article: Source

Bahrain sovereign fund to buy 49% of Spanish firm

Posted on 18 November 2015 by VRS  |  Email |Print

Bahrain’s sovereign wealth fund is likely to invest in an European building materials producer. Mumtalakat reportedly intends to buy 49% stake in Spain’s Aleastur. The Spanish firm is a producer of aluminium products, and also works within the steel sector.
Joseph Kirikian, head of industries and services at Mumtalakat, said the investment comes in light of Aleastur’s expansion plans. “We are taking a minority stake and helping the company to expand into the Gulf,” Kirikian said, according to Reuters. While he did not reveal the total value of the investment, Kirikian said he hopes the deal would “close soon”………………………………………..Full Article: Source

Oman-India investment fund to raise $300mln

Posted on 18 November 2015 by VRS  |  Email |Print

Oman-India Joint Investment Fund (OIJIF) is planning to raise a total US$300mn for its second investment vehicle. The fund, a 50:50 joint venture between sultanate’s sovereign wealth fund State General Reserve Fund (SGRF) and India’s largest lender State Bank of India (SBI), has already recieved commitments from both the anchor investors for US$200mn for the new fund, Indian newspaper the Economic Times reported on Monday.
“We are in talks with several reputed third-party institutional investors based in India and abroad. We target to make a first close in first quarter 2016,” said Srinath Srinivasan, CEO of OIJIF. OIJIF’s first vehicle did not raise money from outside investors………………………………………..Full Article: Source

Future Fund “missed out” on $2bn by not divesting

Posted on 18 November 2015 by VRS  |  Email |Print

Australia’s sovereign wealth fund, the Future Fund, has “missed out” on US$1.5 billion (AU$2.2 billion) over the past three years by not divesting from carbon-exposed companies. According to the Clean Capitalist Decarbonizer tool, launched by Corporate Knights, together with 350.org using carbon data from the South Pole Group, the fund could have grown its revenue by US$1.5 billion by divesting from carbon-intensive companies and investing in companies that provide “environmental solutions”.
The finding was reached after Corporate Knights analysed the most-recently disclosed holdings of the Future Fund (as well as 13 other prominent funds, including the Australian National University), and estimated the potential financial impact of shifting their investments from “the world’s largest fossil fuel companies” (and utilities that rely on coal for more than 30 per cent of their electricity generation), to companies that derive at least 20 per cent of their revenues from environmental markets of new energy………………………………………..Full Article: Source

Police unable to trace key individuals in 1MDB case, says ministry

Posted on 18 November 2015 by VRS  |  Email |Print

The police are unable to determine the whereabouts of several individuals allegedly involved in the 1Malaysia Development Berhad (1MDB) scandal. They are businessman Low Taek Jho, also known as Jho Low, Mr Casey Tang, Ms Jasmine Loo, Mr Nik Faisal Ariff Kamil and Mr Yusof Annuar Yaacob.
“The police cannot trace and determine the whereabouts of these individuals. At the same time, no application has been received from any parties seeking Interpol’s help to trace these individuals,” said the Home Ministry in a written reply to opposition Parti Keadilan Rakyat MP Wong Chen………………………………………..Full Article: Source

Ex-Temasek portfolio firm Stats ChipPac to refinance $400m debt facility via bonds

Posted on 18 November 2015 by VRS  |  Email |Print

Stats ChipPac, Southeast Asia’s largest semiconductor assembler, is seeking to refinance $400 million of debt in the first test of its credit strength without the support of Temasek Holdings, following the exit of Singapore’s state fund from the firm.
Bloomberg reported that the chip packaging and testing company intends to raise funds from the sale of dollar-denominated bonds due in five years, as part of an effort to partially repay a $890-million bridge loan, CFO Woo Kwek Kiong said in an e-mail interview with Bloomberg. Currently, the firm is seeking a $500-million syndicated loan to pare the bridge loan from DBS Group Holdings………………………………………..Full Article: Source

Dutch fund PFZW to divest from high carbon companies

Posted on 18 November 2015 by VRS  |  Email |Print

PFZW, a Dutch pension fund with 161 billion euros ($172 bln) of assets under management, said on Tuesday it will sell down investments in companies with relatively high carbon dioxide emissions. PFZW is the latest high-profile investor to cut exposure to fossil fuel-linked investments this year.
California passed a bill in September requiring the state’s two largest pension funds to divest from coal. Norway’s sovereign wealth fund, the world’s largest, said in February it would divest from thermal coal companies. ABP, the largest Dutch pension fund, said in October it would exit all investments that don’t meet “sustainability” criteria by 2020………………………………………..Full Article: Source

NZ: Energy puts pension funds in tricky spot

Posted on 17 November 2015 by VRS  |  Email |Print

One of the architects of the world’s biggest sovereign wealth fund says pension plans face increasingly complex decisions over responsible investment, particularly in energy. Martin Skancke, now board chairman of the United Nations Principles for Responsible Investment, helped devise the framework for the oil-fuelled Norwegian pension fund in the mid-1990s.
The fund has grown to the equivalent of $1.25 trillion and owns about 1.3 per cent of equities around the world - including in New Zealand - and is branching into real estate. Its holdings include a 25 per cent share of all of Regent St in London. Skancke, in Auckland for a briefing on responsible investment, said energy companies were challenging for pension funds which adhered to principles of responsible investment……………………………………….Full Article: Source

Room at the top: The Future Fund

Posted on 17 November 2015 by VRS  |  Email |Print

With its 10th birthday approaching, the Future Fund is entering its next incarnation complete with a new investment team structure. Investment Magazine spoke to Raphael Arndt, Stephen Gilmore and David Neal. When David Neal, the inaugural chief investment officer of the Future Fund, became its managing director on August 4 last year, his previous role was split in two.
Long-time head of timberland and infrastructure Raphael Arndt became the chief investment officer responsible for leading the investment team in developing the research, due diligence and selection and monitoring processes for assets and investment managers……………………………………….Full Article: Source

DLF gets Competition Commission’s nod for Rs.1,990 crore deal with GIC

Posted on 17 November 2015 by VRS  |  Email |Print

Indian realty major DLF Ltd on Monday said it has received approval from the Competition Commission of India for a joint-venture with Singapore’s sovereign wealth fund GIC, which is investing close to Rs.1,990 crore in two projects in Delhi. “DLF Home Developers Ltd (DHDL), a wholly-owned subsidiary of DLF Ltd and GIC, Singapore’s sovereign wealth fund, have signed an agreement to enter into a joint venture to invest in two upcoming projects located in central Delhi,” the company said in a regulatory filing with the Bombay Stock Exchange.
The statement said GIC would invest a sum of approximately Rs.1,990 crore in the two projects, subject to meeting all statutory requirements and conditions precedents which are customary, prior to the closing……………………………………….Full Article: Source

India: Government to set up fund for banks’ stressed assets

Posted on 17 November 2015 by VRS  |  Email |Print

The government is looking to set up a special fund to tackle the issue of stressed assets. This is expected to be part of the National Investment and Infrastructure Fund (NIIF), which would be like India’s sovereign wealth fund. Although banks are seeing a slowdown in growth of fresh non-performing assets (NPAs), they are grappling with a huge pile of bad debt due to problems in certain companies and some sectors such as metals, and inability of several infrastructure projects to take off.
In an interview, minister of state for finance Jayant Sinha told TOI that the proposed special situations fund will deal only with projects that are viable and can be nursed back to health……………………………………….Full Article: Source

After Temasek Split, Singapore Chipmaker Faces Funding Test

Posted on 17 November 2015 by VRS  |  Email |Print

Stats ChipPac Ltd., Southeast Asia’s biggest semiconductor assembler, is seeking to refinance $400 million of debt in the first test of its credit strength without the implicit AAA backing of the government of Singapore.
The planned note offering comes after Temasek Holdings Pte, the Singapore sovereign wealth fund, cashed out from Stats ChipPac as Chinese firm Jiangsu Changjiang Electronics Technology Co. completed its takeover bid in October. Temasek’s departure triggered two rating downgrades by Standard & Poor’s just as the financing costs of lower-rated borrowers in Asia are rising amid renewed global market jitters……………………………………….Full Article: Source

S’pore chip firm faces funding test after split from Temasek

Posted on 17 November 2015 by VRS  |  Email |Print

Stats ChipPac, Southeast Asia’s biggest semi-conductor assembler, is seeking to refinance US$400 million (S$570 million) of debt in the first test of its credit strength without the implicit AAA backing of the Singapore Government.
It plans to sell US dollar-denominated debt that is due in five years to help repay part of an US$890 million bridge loan, Stats ChipPac CEO Woo Kwek Kiong said. The company is currently seeking a US$500 million syndicated loan to pare the bridge loan from DBS Group Holdings……………………………………….Full Article: Source

Temasek’s US holdings fell in third quarter amid stock rout

Posted on 17 November 2015 by VRS  |  Email |Print

The value of Temasek Holdings Pte’s US listed securities fell to the lowest level this year as it sold some of its assets and the Standard & Poor’s 500 Index slumped the most since 2011. Singapore’s state-owned investment firm reported US$10.5 billion of holdings as of September 30 in a filing with the US Securities and Exchange Commission on Monday.
That’s a decline of US$5.4 billion from the previous quarter and the lowest since the three months to December, when holdings were US$9.6 billion. The US benchmark index fell 6.9 per cent in the third quarter amid uncertainty over the Federal Reserve’s rate tightening policy and concerns that an economic slowdown in China will curb demand for commodities and crimp global growth……………………………………….Full Article: Source

Why can’t any minister explain 1MDB to Parliament?

Posted on 17 November 2015 by VRS  |  Email |Print

In the past two days, the Umno/BN owned or controlled media and their legion of cybertroopers have been carrying glowing reports about what a superb performance the 1MDB CEO Arul Kanda Kandasamy gave at the briefing for Umno divisional leaders at the Putra World Trade Centre (PWTC) on Saturday about the 1MDB scandal, and that the participants, which included representatives from NGOs and government agencies, were satisfied with Arul’s explanations which gave “a better picture of the real situation”.
The immediate question that comes to mind is whether the cabinet of Prime Minister Najib Abdul Razak is so intellectually-challenged that none of the Ministers could explain the intricacies and complexities of the 1MDB scandal to Parliament for the past month, when Arul could so easily explain away the RM50 billion 1MDB scandal at the Umno briefing to its divisional leaders and pliable NGOs at PWTC last Saturday - as if Arul is such a superb performer that he is capable of getting birds to eat food from his hands?………………………………………Full Article: Source

1MDB To Have RM10b Assets After Revamp

Posted on 17 November 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) president and CEO Arul Kanda Kandasamy said the company will have at least RM10 billion worth of assets after undergoing a rationalisation plan to clear its debts. Speaking in a public forum on Saturday, Arul Kanda also said the government is supportive of the plan, including selling its assets.
Among the assets that the company owns include the land in Tun Razak Exchange as well as a 40% stake in Bandar Malaysia Sdn Bhd worth between RM4 billion and RM5 billion, land in Ayer Itam, Penang (RM1 billion) and Pulau Indah (RM300 million). “1MDB took loans to purchase assets. The payment of debts is made through generating our assets,” said Arul Kanda in a packed public briefing at Putra World Trade Centre (PWTC) on Saturday……………………………………….Full Article: Source

Khazanah Research to help clarify TPPA benefits, pitfalls

Posted on 17 November 2015 by VRS  |  Email |Print

Khazanah Nasional Bhd is among the key outfits helping to analyse various benefits and pitfalls for Malaysians with the nation’s participation in the Trans-Pacific Partnership Agreement (TPPA). “We hope the analyses would show in terms of what the benefits are and in terms of what the costs are and whether the benefits outweigh the costs,” said Khazanah Research Institute managing director Datuk Charon Mokhzani.
The highly publicised 12-country trade agreement has received both praises and criticisms in Malaysia and TPPA member nations, based on details leaked earlier and initial impressions after the full text was made public last week. “It’s a 6,000 page document and it’s very hard for us today to tell you what the overall impact (just yet). To be able to make a proper comment on this is too early. We need time to understand the document.”………………………………………Full Article: Source

Korea Investment Corp Increased Fireeye Inc by $12.38 Million as Shares Declined

Posted on 17 November 2015 by VRS  |  Email |Print

Korea Investment Corp increased its stake in Fireeye Inc by 1042.56% based on its latest Q3 2015 regulatory filing with the SEC. Korea Investment Corp bought 399,300 shares as the company’s stock declined 34.41% while stock markets rallied. The institutional investor held 437,600 shares of the technology company at the end of Q3, valued at $13.92 million, up from 38,300 at the end of the previous reported quarter.
Korea Investment Corp who had been investing in Fireeye Inc since many months, is probably bullish the $3.57B market cap company. The stock increased 0.09% or $0.02 on November 13, hitting $22.25. About 5.44 million shares traded hands. FireEye Inc has declined 46.72% since April 14, 2015 and is downtrending. It has underperformed by 43.25% the S&P500……………………………………….Full Article: Source

Bahrain’s SWF plans to buy stake in Spanish aluminium firm

Posted on 17 November 2015 by VRS  |  Email |Print

Mumtalakat plans to buy a 49 percent stake in Spanish aluminium products group Aleastur, an executive at the Bahraini sovereign fund said on Monday. “We are taking a minority stake and helping the company to expand into the Gulf,” Joseph Kirikian, head of industries and services at Mumtalakat, told Reuters on the sidelines of an aluminium conference.
He declined to give a value for the investment but said the deal would hopefully close soon……………………………………….Full Article: Source

Oman India fund aims first close of second vehicle in Q1 2016

Posted on 17 November 2015 by VRS  |  Email |Print

The Oman India Joint Investment Fund is targeting to make the first close of its second fund in the first quarter of 2016, The Economic Times reported on Monday citing its CEO Srinath Srinivasan. The private equity firm sponsored by Oman’s sovereign wealth fund, State General Reserve Fund, and top Indian lender State Bank of India is looking to raise $300 million (Rs 1,980 crore) in its second outing, the report said.
Last year, the investment firm was reported to be eyeing $350 million for the second fund. An emailed query to the company on whether it has cut the fund size did not elicit any response till the time of filing this article………………………………………Full Article: Source

Shell share price: Qatar fund sell-down stirs BG merger fears

Posted on 17 November 2015 by VRS  |  Email |Print

The Qatar Investment Authority, the Gulf state’s sovereign wealth fund, has divested $1 billion worth of shares in Royal Dutch Shell Plc and BG Group, casting doubts on whether the proposed mega-merger has the support of major shareholders within the two companies.
The QIA, which holds about 4.88 percent of Shell and 1.76 percent in BG Group, has sold 43 million shares in BG and a further 24 million in Shell over a period of less than three weeks near the end of October. “The market is concerned that these sales have been discriminatory towards BG, and therefore suggesting some underlying reason which might be worrying for the fate of the transaction,” analysts at Olivetree Financial said as quoted by The Telegraph……………………………………….Full Article: Source

Norway’s Wealth Fund buys a stake in Tokyo Cement

Posted on 17 November 2015 by VRS  |  Email |Print

Norway’s Norges Bank, which manages the world’s biggest sovereign wealth fund, has bought a stake in Tokyo Cement of Sri Lanka, the company’s interim filed in Colombo Stock Exchange shows. Norges Bank has bought 2,078,857 voting shares of Tokyo Cement, amounting to a 0.93 percent stake, and 6,269,466 non-voting shares or a 5.63 percent stake, according to the firm’s September quarter results.
The Norges Bank bought 7.5 million shares in knit fabric maker Textured Jersey Lanka, in the month of October this year. Norges Bank Investment Management has close to a trillion dollars invested in global assets, a fund built from the country’s oil revenues. The fund is currently valued at 7.2 trillion Norwegian Kroner, or 835 billion dollars……………………………………….Full Article: Source

Ireland to pull billions of euro from global asset managers

Posted on 17 November 2015 by VRS  |  Email |Print

Ireland’s sovereign wealth fund will pull several billion euro from global asset managers over the next five years as the Government tries to use the fund’s assets to bolster the domestic economy.
Some €3 billion of the sovereign fund’s €7.9 billion of investible asset is in global equities, bonds, commodities, infrastructure and absolute return funds run by international asset managers. It will divest from these holdings by 2020 as part of its new mandate to invest in projects and companies with the potential to create jobs in Ireland and boost the economy……………………………………….Full Article: Source

Fears over sovereign wealth funds pulling assets overblown, Morgan Stanley says

Posted on 17 November 2015 by VRS  |  Email |Print

Fears that sovereign wealth funds would pull out of equity markets - say, as some countries tried to shore up their public finances in the face of lower oil prices - and the impact that might have on asset managers and banks were “overblown,” analysts at Morgan Stanley found.
Only 60% of SWF’s assets, totalling approximately $7tn (£4.64bn), are held by oil producing nations and the pressures on their state finances vary depending on the economy in question, they argued in a research report sent to clients. An “extreme” bear-case suggested potential earnings risk of 0.1-7.1% (average: 2.1%) if all SWFs redeemed all externally managed assets, the broker said……………………………………….Full Article: Source

Irish sovereign wealth fund dumps asset managers

Posted on 16 November 2015 by VRS  |  Email |Print

Ireland’s sovereign wealth fund will pull several billion euros from global asset managers over the next five years, as the Irish government tries to use the fund’s assets to bolster its domestic economy.
Around €3bn of the sovereign fund’s €7.9bn of investible asset is in global equities, bonds, commodities, infrastructure and absolute return funds run by international asset managers. It will divest from these holdings by 2020 as part of its new mandate to invest in projects and companies with the potential to create jobs in Ireland and boost the country’s economy………………………………………..Full Article: Source

QIA sold 43m shares in BG Group and a further 24m shares in Shell

Posted on 16 November 2015 by VRS  |  Email |Print

The Qatar Investment Authority has offloaded shares in Shell and BG worth nearly £1bn in recent weeks, raising fresh questions over whether the oil­giants’ proposed mega-merger has the support of major shareholders.
The sovereign wealth fund, led by Sheikh Abdullah bin Mohammed AlThani, a member of the Qatari royal family, has sold around 43m shares in BG Group, worth roughly £550m, and a further 24m shares in Shell, with a value of approximately £421m. The sell-off, over a period of less than three weeks between the end of October and the first week of November, will be a blow to Shell’s chief executive, Ben van Beurden………………………………………..Full Article: Source

Australia fund set to sell its Southern Water stake

Posted on 16 November 2015 by VRS  |  Email |Print

Australia’s sovereign wealth fund is looking for a buyer for its stake in Southern Water, the water and sewerage company recently fined for discharging raw sewage into the sea. Future Fund, set up by the Australian government to take on civil servants’ pensions, has mandated Macquarie Capital to review whether it should keep or sell its 23.4% stake.
Macquarie Capital is an advisory arm of the Sydney-based bank. Southern provides water and wastewater services for 4.6 million people in Kent, Sussex and Hampshire. It was fined £160,000 two months ago for dumping raw sewage into the sea near Worthing in 2012………………………………………..Full Article: Source

1MDB’s Latest Act: Two Obama Fundraisers, One Fugee and $69 Million

Posted on 16 November 2015 by VRS  |  Email |Print

The sprawling web of investments by a Malaysian government fund at the center of a corruption probe now includes two former fundraisers for President Barack Obama and a hip-hop superstar. The fund, 1Malaysia Development Bhd., paid private-equity group DuSable Capital Management LLC $69 million to buy its stake in a joint venture to develop solar power plants in the Southeast Asian country, the two sides said Wednesday.
The parties had signed an agreement in April 2014 giving DuSable a 49% stake, but 1MDB agreed to buy out the firm six months later, before construction had begun on any project, they said………………………………………..Full Article: Source

Bank Negara validating 1MDB’s explanation on US$1.83 billion funds

Posted on 16 November 2015 by VRS  |  Email |Print

Bank Negara Malaysia is still “validating” 1Malaysia Development Bhd’s (1MDB) explanation on its inability to repatriate US$1.83 billion in funds ordered by the central bank. Stressing that “the matter is not straight forward” and related to 1MDB’s rationalisation plan, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz did not commit a timeline for the completion of its evaluation process.
“It’s premature to say anything more, we’ll make assessments once we’ve received all information that we’ve requested,” she said during a press conference on Friday announcing the country’s gross domestic product growth figures for the third quarter of the year………………………………………..Full Article: Source

1MDB explains Brazen Sky fund unit redemptions

Posted on 16 November 2015 by VRS  |  Email |Print

At the Forum Perdana in PWTC (on Saturday), Arul Kanda, the president and group executive officer of 1MDB, provided a detailed briefing on 1MDB and replied without reservation to various pointed and pertinent questions raised by the audience. This briefing was open to all Malaysians and covered by various media organisations, including alternative media.
1MDB regrets to note that one wrong headline relating to financial costs by The Malaysian Insider (which was subsequently corrected), appears to have been widely and wrongly circulated, including in an Instagram posting that appears to have originated from one Dato’ Sri Nazir Razak. Further, 1MDB notes that a number of online news portals and certain bloggers have in the course of today raised queries relating to the Brazen Sky fund unit redemptions, which was another topic covered at the briefing………………………………………..Full Article: Source

SWF assets to decline further due low oil prices -Moody’s

Posted on 16 November 2015 by VRS  |  Email |Print

Sovereign wealth fund (SWF) assets will grow more slowly or even decline as governments are forced to tap funds to finance budget deficits resulting from persistently low oil prices, credit ratings agency Moody’s said on Thursday. The $4.5 trillion SWF industry has grown rapidly over the last decade but with 73 percent of SWF assets funded from oil and gas revenues, countries like Russia, Saudi Arabia and Norway have already begun tapping into their reserves.
These drawdowns have been prompted by a fall of over 50 percent in global oil prices, with Brent crude futures plunging from $115 a barrel in June 2014 to around $45 a barrel today. With the oil supply glut persisting, the situation is not expected to change soon………………………………………..Full Article: Source

Sovereign Wealth Funds Have Buffers Against Oil Shock: Moody’s

Posted on 16 November 2015 by VRS  |  Email |Print

As a November 12th report from Moody’s Investors Service highlights, both the number and the AUM of global sovereign wealth funds (SWFs) have grown rapidly over the last decade and change. Moreover, SWFs are becoming a crucial part of the international financial system, and were an important stabilizing force in the financial crisis a few years ago.
Finally, as Elena H. Duggar and the rest of the Moody’s team note: “SWFs facilitate the intergenerational transfer of proceeds from nonrenewable resources, allow for greater portfolio diversification than traditional central bank reserves, and contribute to exchange rate stability by managing excess inflows. SWFs also increasingly fund investments in infrastructure.”……………………………………….Full Article: Source

SWFs: Activist Investors or Passive Stock Pickers?

Posted on 12 November 2015 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) are less likely to be activist investors than their institutional peers due to their size and legal restrictions, according to research. The amount of money available to SWFs means their intentions when making investments are “important for politicians, unions, and regulatory authorities” to understand, wrote Mark Mietzner (Zeppelin University, Friedrichshafen), Dirk Schiereck (Darmstadt University of Technology), and Denis Schweizer (Concordia University, Montreal).
However, their analysis of 147 companies owned by SWFs showed that these groups probably shouldn’t be too concerned with investors’ ulterior motives: the focus instead is on companies with “higher return on assets, dividend payments, and yields”………………………………………..Full Article: Source

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