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Sovereign Wealth Funds Briefing - Archive | May, 2016

Norway Lawmakers Win Review on Wealth Fund Infrastructure Push

Posted on 31 May 2016 by VRS  |  Email |Print

Norway’s parliament demanded further study on whether the country’s $850 billion sovereign wealth fund should invest in infrastructure and recommended it start a review of its expectations for investments listed in tax havens.
“It’s very positive that we’ve managed to move the government from wanting to close the door entirely to agreeing to a step forward” on infrastructure, Torstein Tvedt Solberg, a lawmaker for the opposition Labor Party, said by telephone on Monday………………………………………..Full Article: Source

Norway wealth fund needs policy on tax declarations: committee

Posted on 31 May 2016 by VRS  |  Email |Print

Norway’s $860-billion sovereign wealth fund, the world’s largest, must develop a policy on how companies in which it has invested declare their taxes, parliament’s finance committee said. The fund, managed by a unit of the central bank, invests the income from Norway’s oil industry. It owns 1.3 percent of the world’s listed company equity, with stakes in some 9,050 firms.
The move is a first step by Norway to use the fund as a tool to combat the use of tax havens. It follows the Panama Papers leaks in April, which revealed details of corporate and individual tax evasion and triggered a global backlash. Two key committee members told Reuters of the move last week………………………………………..Full Article: Source

Norway’s wealth fund passed on Facebook investment

Posted on 31 May 2016 by VRS  |  Email |Print

The rules governing Norway’s sovereign wealth fund kept it from jumping on board when Facebook asked it to invest in the social media giant ahead of its 2012 IPO. The head of the Norwegian Government Pension Fund told VG that Facebook reached out ahead of its IPO to see if the sovereign wealth fund, the largest of its kind in the world, was interested in becoming an investor.
“It wasn’t at the inception of Facebook, but it was before it was listed. We are not allowed to invest in companies before they are listed so we couldn’t go along when we received the request,” Ynge Slygstad said………………………………………..Full Article: Source

Norway’s sovereign wealth fund, its manager get museum treatment

Posted on 31 May 2016 by VRS  |  Email |Print

Ever wondered how the world’s largest sovereign wealth fund, the Government Pension Fund Global, Oslo, is managed? Well, now’s your chance to find out. In tandem with the 200th birthday of Norges Bank’s establishment, following Norway’s separation from Denmark; and the 20th anniversary of Norway’s Ministry of Finance’s first capital transfer to the fund, Norges Bank and the Norwegian Petroleum Museum have launched an anniversary exhibit at the museum in Stavanger, Norway, according to the museum’s website.
“From Oil Wealth to Financial Wealth” provides insight into how Norges Bank manages the fund’s roughly 7 trillion Norwegian kroner ($851 billion) of assets………………………………………..Full Article: Source

Qatar Investment Authority taking steps to restructure assets

Posted on 31 May 2016 by VRS  |  Email |Print

In an attempt to manage a significant amount of capital, the Qatar Investment Authority (QIA) is apparently shuffling up to $100 billion into new investment efforts in what Arabian Business magazine is calling a “major overhaul.” A magazine story in mid-May said the Qatari sovereign wealth fund (SWF) is creating a new internal division called Qatar Investments, to be headed by Ahmed Al Rumaihi, formerly a diplomat in the United States.
Changes also include new hires from Citigroup and other sources. The QIA fund has more than $250 billion in assets. Early this year, reports emerged that the QIA is opening an office in New York as part of an effort to invest $35 million in the United States in the next five years………………………………………..Full Article: Source

Qatar raises its stake in Dubai Parks and Resorts

Posted on 31 May 2016 by VRS  |  Email |Print

Qatar Holding has lifted its stake in Dubai Parks and Resorts to 11 per cent after a Dh1.68 billion capital increase to fund the construction of a Six Flags amusement park set to open in the fourth quarter of 2019.
The Qatari sovereign wealth fund had not disclosed the size of its stake before the rights issue and is only doing so now because any stake over 5 per cent must be disclosed to the Dubai Financial Market, according to a Dubai Parks spokeswoman. No one at Qatar Holding was immediately available to comment………………………………………..Full Article: Source

GIC consortium said among bidders for stakes in Philippine power plants

Posted on 31 May 2016 by VRS  |  Email |Print

A group including Singapore’s sovereign wealth fund GIC is among suitors that have submitted bids for Sithe Global Power’s stakes in two Philippine power plants, people with knowledge of the matter said.
The consortium, including an infrastructure investment fund managed by Macquarie Group and Malaysian power company Malakoff Corp, submitted a non-binding offer for the stakes, the people said. The Blackstone Group-owned company’s sale could fetch more than US$1 billion, they said, asking not to be identified as the process is private………………………………………..Full Article: Source

Malaysia’s 1MDB makes coupon payment on Islamic medium term notes

Posted on 31 May 2016 by VRS  |  Email |Print

Malaysia’s state-owned 1Malaysia Development Berhad (1MDB) said on Monday that it had made a scheduled coupon payment on an Islamic medium term bond, despite an ongoing multi-billion dollar spat with a UAE sovereign fund.
1MDB said it made a 143.75 million ringgit ($34.96 million) coupon payment due on 5 billion ringgit in Islamic Medium Term Notes (IMTNs) due in 2039. “1MDB has ample liquidity to make interest payments and service its current debt obligations,” 1MDB’s president Arul Kanda Kandasamy said in a statement on Monday………………………………………..Full Article: Source

1MDB Pays Coupon on Debt After Missing Two Interest Payments

Posted on 31 May 2016 by VRS  |  Email |Print

Malaysia’s troubled state investment company 1Malaysia Development Bhd. paid the coupon on its Islamic debt after missing two payments on other securities earlier. 1MDB undertook the scheduled payment of 143.8 million ringgit ($34.9 million) on its 5 billion ringgit 5.75 percent notes due 2039, according to an e-mailed statement.
The company had previously missed the coupons for two sets of dollar-denominated bonds amid a dispute with Abu Dhabi’s International Petroleum Investment Co., which had guaranteed the debt………………………………………..Full Article: Source

1MDB scandal taking toll on Malaysia stock market as foreigners sell

Posted on 31 May 2016 by VRS  |  Email |Print

One of the worst global financial scandals is taking its toll on the world’s longest bull market run. Deepening concerns over 1Malaysia Development Bhd (1MDB), the embattled state investment fund at the center of probes from Switzerland to Singapore, has spurred the biggest outflow of foreign funds in eight months.
Malaysia’s benchmark stock index has erased most of its gains after climbing to this year’s high in April. The prolonged impact of 1MDB is prompting investors to seek out other markets in Southeast Asia, according to Baring Asset Management………………………………………..Full Article: Source

Oil slump blamed for falloff in assets

Posted on 31 May 2016 by VRS  |  Email |Print

The decline in oil prices had a trickle-down effect on money managers that run assets for sovereign wealth funds in 2015. Total assets managed for sovereign wealth funds by money managers in Pensions & Investments’ universe were $1.04 trillion as of Dec. 31, down 13.7% from 12 months earlier.
In fact, every manager among the top 10 ranked by sovereign wealth fund assets under management recorded declines in those assets during 2015. State Street Global Advisors had the most sovereign wealth fund assets under management in 2015, at $103.4 billion, but still saw assets fall 8.8% from 2014. BlackRock (BLK) Inc. (BLK) was second in 2015, with $79.7 billion, down 14.4% from a year earlier………………………………………..Full Article: Source

Khazanah Temasek JV project to be ready in 2017

Posted on 30 May 2016 by VRS  |  Email |Print

The integrated Marina One and Duo developments, jointly-owned by Malaysia’s strategic investment fund, Khazanah Nasional Bhd and Singapore’s investment company, Temasek Holdings Pte Ltd, are set for completion in 2017.
“We are happy to share that both Marina One and DUO are on track for completion in 2017,” said Kemmy Tan, chief executing officer of M+S Pte Ltd, the project developer. Marina One has a gross development value (GDV) of S$7bil (RM20.72bil), while the overall DUO project has a GDV of S$4bil (RM11.84bil). Both projects were launched in mid-2012………………………………………..Full Article: Source

Temasek increases stake in Nasdaq-listed Regeneron Pharmaceuticals for $24.5m

Posted on 30 May 2016 by VRS  |  Email |Print

Singapore state investment fund Temasek Holdings Private Ltd has increased its stake in NASDAQ-listed Regeneron Pharmaceuticals by 116.77 per cent, based on its latest Q1 2016 regulatory filing with the SEC, purchasing 68,062 shares as Regeneron’s stock declined 30.22 per cent while US stock markets rallied.
The consideration for the enlarged stake is $24.5 million. Regeneron Pharmaceuticals Inc – which has a market capitalisation of $42.51 billion – focuses on commercialising medicines for eye diseases, high low-density lipoprotein cholesterol and a rare inflammatory condition, and has product candidates in development in other areas of unmet medical need which include oncology, rheumatoid arthritis (RA), asthma, atopic dermatitis, pain and infectious diseases………………………………………..Full Article: Source

Will Temasek convert Iculs in SAM Engineering?

Posted on 30 May 2016 by VRS  |  Email |Print

Minority shareholders of SAM Engineering & Equipment (M) Bhd are likely to get a bounty dividend if the company’s major shareholder decides to convert a large chunk of its loan stocks.
The company, which manufacturers parts for aeroplanes and equipment for the semiconductor industry and ultimately owned by Singapore’s Temasek Holdings (Pte) Ltd, has consistently seen its dividend pay-out grow in the last three years. According to an investor, it only makes sense for Temasek to convert the Iculs because the dividends will give it higher returns than the 4% which the loan stock pays………………………………………..Full Article: Source

GIC among bidders for Sithe power assets

Posted on 30 May 2016 by VRS  |  Email |Print

A group including Singapore’s sovereign wealth fund GIC Pte is among suitors that have submitted bids for Sithe Global Power’s stakes in two Philippine power plants, people with knowledge of the matter said.
The consortium, including an infrastructure investment fund managed by Macquarie Group and Malaysian power company Malakoff Corp, submitted a non-binding offer for the stakes, the people said. The Blackstone Group-owned company’s sale could fetch more than $1bn, they said, asking not to be identified as the process is private. Aboitiz Power president Tony Moraza declined to comment, as did representatives for GIC and Marubeni………………………………………..Full Article: Source

Oman SWF backed PE fund OIJIF hits first close of $250 million for second fund

Posted on 30 May 2016 by VRS  |  Email |Print

Oman India Joint Investment Fund (OIJIF), a private equity (PE) fund backed by Oman’s sovereign wealth fund State General Reserve Fund (SGRF) and India’s largest lender State Bank of India (SBI), has hit a first close of $250 million for its second fund, said two people aware of the development.
To be sure, a fund has many closings and a first close implies that it will start investing the money raised. The first fund—which raised and invested $100 million in 2011—did not seek third-party capital and was completely sponsored by SGRF and SBI………………………………………..Full Article: Source

Qatar’s first current account deficit since 1998 ‘poses little risk’

Posted on 30 May 2016 by VRS  |  Email |Print

Qatar’s first current account deficit since 1998 “poses little risks” to the country’s external balance and currency peg to the dollar, said a senior economist, who noted that the country has “enough financial buffers” to meet its immediate needs. Doha has very large foreign reserves available to cover short-term shortages and protect the peg if needed, reinforced by the $256bn held by the country’s sovereign wealth fund at the end of 2015.
On top of it, the country’s sovereign wealth fund held $256bn at the end of 2015, according to the Sovereign Wealth Fund Institute. “Over the past three months, market sentiment towards the country’s external sustainability has improved,” BMI Research said………………………………………..Full Article: Source

The Take-Off of the Nigeria Sovereign Wealth Fund

Posted on 30 May 2016 by VRS  |  Email |Print

Professor Gordon L. Clark and Dr. Ashby Monk are two researchers known for their extensive work on Sovereign Wealth Funds (SWFs). Regular publications arising from their distilling research initiatives on different aspects/issues affecting sovereign wealth funds in all parts of the world get posted on the Oxford SWF Project website.
Policy makers, practitioners and other researchers regularly enrich their knowledge and understanding on the SWF subject matter by visiting this website from time to time. Under recent publications on this website is a paper jointly authored by Professor Gordon L. Clark and Dr. Ashby Monk and published with the link titled; Modernity, Institutional Innovation and the Adoption of Sovereign Wealth Funds in the Gulf States………………………………………..Full Article: Source

SOFAZ to increase profitability through long-term investments

Posted on 30 May 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, which is in charge of accumulating and managing the country’s oil and gas revenues, plans to increase the profitability of asset management in the coming years.
Ziya Kangarli, chief investment advisor at SOFAZ announced about this while addressing the Forum on “Decrease in oil prices and economic reforms: Challenges and Opportunities” held at Khazar University on May 24. Kangarli noted that SOFAZ plans to achieve this goal by increasing the share of long-term instruments in its investment portfolio………………………………………..Full Article: Source

Samruk-Kazyna Group of Companies under the Privatization Plan for 2016-2020 to Auction 10 Companies until the End of July

Posted on 30 May 2016 by VRS  |  Email |Print

Samruk-Kazyna Group of Companies will place various ownership interests in 10 companies to the electronic auction by the end of July. The share sale is planned in the framework of implementation of the Comprehensive Privatization Plan for 2016-2020 approved by the Government of the Republic of Kazakhstan.
“The State Commission for Economic Modernization under the Government of the Republic of Kazakhstan approved the sale of different shares in 10 Samruk-Kazyna companies”. Auctions of 5 assets of JSC NC Kazakhstan Engineering, 3 assets of JSC NAC Kazatomprom, 2 assets of Samruk-Energy JSC are scheduled until the end of July, - said the Managing Director for Asset Optimization - Member of the Management Board of Samruk-Kazyna JSC Berik Beisengaliyev……………………………………….Full Article: Source

Kazakh sovereign fund seeks over $6b from privatisations

Posted on 30 May 2016 by VRS  |  Email |Print

Kazakh sovereign wealth fund Samruk-Kazyna plans to raise more than $6 billion from privatisations over the next five years, using the proceeds to help its companies repay debt, the fund’s managing director told Reuters on Thursday.
The sale will start with small companies. Public offerings of stakes in the fund’s crown jewels, such as national oil company KazMunayGaz, will be the last deals to happen and will take place after 2018, Berik Beisengaliyev said in an interview. “The balance sheet value of those assets (earmarked for privatisation) is between $6.0-7.3 billion at the current exchange rate,” Beisengaliyev said………………………………………..Full Article: Source

Kazakh sovereign fund seeks over $6 billion from privatisations

Posted on 27 May 2016 by VRS  |  Email |Print

Kazakh sovereign wealth fund Samruk-Kazyna plans to raise more than $6 billion (4 billion pounds) from privatisations over the next five years, using the proceeds to help its companies repay debt, the fund’s managing director told Reuters on Thursday.
The sale will start with small companies. Public offerings of stakes in the fund’s crown jewels, such as national oil company KazMunayGaz, will be the last deals to happen and will take place after 2018, Berik Beisengaliyev said in an interview. “The balance sheet value of those assets (earmarked for privatisation) is between $6.0-7.3 billion at the current exchange rate,” Beisengaliyev said………………………………………..Full Article: Source

State Oil Fund sells $50M to Azerbaijani banks

Posted on 27 May 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $20 million to 11 banks through an auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said May 26. Meanwhile, CBA itself acquired $30 million at the auction.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016………………………………………..Full Article: Source

Saudi Wealth Fund Plans Would Make It the World’s Largest: Chart

Posted on 27 May 2016 by VRS  |  Email |Print

Saudi Arabia is planning to create the world’s largest sovereign wealth fund by adding ownership of oil giant Saudi Aramco and other key assets to the Public Investment Fund. With a potential value of more than $2 trillion — mostly based on what Aramco is worth — the fund would be more than double the size of the Norwegian fund, the world’s largest.
Saudi Arabia is seeking to hire international bankers to help manage the fund and boost its investments overseas as part of a plan to reduce the kingdom’s reliance on oil………………………………………..Full Article: Source

Key questions raised by the $2 trillion Saudi wealth fund plan

Posted on 27 May 2016 by VRS  |  Email |Print

Saudi Arabia is planning to expand its sovereign wealth fund into the world’s largest. The Public Investment Fund could eventually control more than $2 trillion, according to Deputy Crown Prince Mohammed bin Salman, making it big enough to buy the world’s four largest publicly traded companies.
The fund is at the center of efforts to diversify revenue from oil under an economic transformation plan known as Vision 2030. The 84-page Vision blueprint includes plans to restructure the country’s finances, administration and reshape oil giant Saudi Aramco into an industrial and energy conglomerate………………………………………..Full Article: Source

Saudi wealth fund PIF said to mull $8bn bid for Riyadh hub

Posted on 27 May 2016 by VRS  |  Email |Print

Saudi Arabia’s Public Investment Fund, the wealth fund headed by Deputy Crown Prince Mohammed bin Salman, is likely to make an offer next month to buy Riyadh’s unfinished financial hub as the government attempts to rehabilitate a project plagued by delays and cost overruns.
The fund may pay about 30bn riyals ($7.9bn) – the amount already spent on the King Abdullah Financial District by the Saudi Public Pension Agency – plus the cost of undeveloped plots, a person with knowledge of the matter said, asking not to be identified as discussions are private. The plan includes a new company to oversee the project’s completion and management………………………………………..Full Article: Source

Abu Dhabi sovereign fund may invest in Greenko

Posted on 27 May 2016 by VRS  |  Email |Print

Abu Dhabi Investment Authority, the sovereign wealth fund of the emirate of Abu Dhabi, is in final talks with the Hyderabad-based Greenko Group to invest $170-$200 million for a minority stake. The transaction is expected to close at a $1 billion post-money valuation, The Economic Times reported citing sources.
Greenko, formerly listed on London’s AIM exchange, also had $800 million debt as on December 2015, implying an enterprise value of $1.6 billion. GIC of Singapore owns about 84% of Greenko while the renewable energy company’s two founders, Anil Chalamalasetty and Mahesh Kolli, hold the rest………………………………………..Full Article: Source

China’s CIC Invests $700M in Brookfield’s 1 New York Plaza

Posted on 27 May 2016 by VRS  |  Email |Print

Mainland sovereign wealth fund China Investment Corporation has made its first significant US real estate investment, acquiring a 49 percent interest in the 1 New York Plaza office tower from Brookfield Property Partners for $700 million, according to reports in the New York press.
CIC, as it is popularly known, has been China’s biggest investor in overseas properties, and has acquired or invested more than $7 billion into real estate assets outside of China since 2012, according to data compiled by Mingtiand……………………………………….Full Article: Source

1MDB Unit Bought by China Nuclear Firm Was Distressed, Auditor Says

Posted on 27 May 2016 by VRS  |  Email |Print

An audit of a key energy group sold by troubled state investment fund 1Malaysia Development Bhd. to a Chinese state-owned nuclear-power company flagged deep uncertainty over the company’s viability.
Notes from auditor Deloitte in the 140-page financial accounts of Edra Global Energy Bhd. for the year ended March 31, 2015, said the audit found “an existence of a material uncertainty which may cast significant doubt about the group’s and company’s ability to continue as a going concern.”……………………………………….Full Article: Source

FINMA links BSI Singapore, BSI Swiss to 1MDB

Posted on 27 May 2016 by VRS  |  Email |Print

In a massive revelation, the Swiss financial market supervisory authority FINMA has conclusively linked troubled bank BSI AG and its Singapore branch, to the global scandal surrounding Malaysian sovereign wealth fund 1MDB. FINMA said through business relationships and transactions linked to the corruption scandals surrounding 1MDB, BSI AG committed serious breaches of money laundering regulations.
It said in the case of 1MDB, there were deliberate management decisions made by the bank that led FINMA to reach its conclusions of corruption and money laundering accusations. Transactions involving 1MDB were executed within the client group and with THIRD PARTIES without the bank adequately clarifying their commercial justification………………………………………..Full Article: Source

World’s largest sovereign fund means biz in Sri Lanka

Posted on 27 May 2016 by VRS  |  Email |Print

The world’s largest sovereign wealth fund, Norway’s Pension Fund, with assets worth a staggering $ 800 billion, appears to be bullish on investing in Sri Lanka, having built a small yet growing portfolio of listed equities.
Recently, the Norwegian Embassy revealed that its Pension Fund has invested $ 31 million in shares of 12 Sri Lankan listed companies engaged in industrials, finance, telecommunications and consumer goods sectors. It didn’t reveal what the companies are but suggested it was the first step with analysts hopeful of an expanded engagement with the Sri Lankan capital market in the long term………………………………………..Full Article: Source

Norway to regulate $850 billion fund’s tax haven exposure-lawmakers

Posted on 27 May 2016 by VRS  |  Email |Print

Norway will take a first step this week towards using its $850 billion sovereign wealth fund, the world’s biggest, as a tool to combat the use of tax havens, two key members of parliament’s finance committee told Reuters on Wednesday.
The country’s right-wing minority government will be asked to take a two-pronged approach to regulation, examining both the fund’s own use of ownership structures designed to cut its liability for tax on its foreign investments as well as that of companies it invests in, the politicians said. The move follows the Panama Papers leaks in April, which revealed details of corporate and individual tax evasion and triggered a global backlash against tax havens………………………………………..Full Article: Source

Alaska Permanent plans up to $3 billion for private investments next fiscal year

Posted on 27 May 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, approved a private markets pacing plan for fiscal year 2017 starting July 1, said a news release from the $52.7 billion sovereign wealth fund. Under the pacing plan approved at this week’s board meeting, $900 million total would be committed to traditional private equity funds and co-investments in fiscal year 2017, with co-investments limited to $225 million.
This allocation could increase by $200 million based on market opportunities. Additionally, the pacing plan calls for up to $350 million total for structured private equity, which could increase by $200 million based on market opportunities………………………………………..Full Article: Source

Permanent Fund narrows losses in 3Q

Posted on 27 May 2016 by VRS  |  Email |Print

The Alaska Permanent Fund’s investment returns rose in the third quarter of fiscal year 2016 ended March 31, though performance is still down year-to-date. Due in part to the U.S. dollar’s strength impacting international investments, the Alaska Permanent Fund came in relatively flat in the third quarter of fiscal year 2016 at 1.2 percent compared to the performance benchmark of 2.3 percent.
Year-to-date, the Permanent Fund was down 0.9 percent as of March 31 at a total value of $52.5 billion, about $331 million less than the end of the 2015 fiscal year last June 30………………………………………..Full Article: Source

Key Questions Raised by the $2 Trillion Saudi Wealth Fund Plan

Posted on 26 May 2016 by VRS  |  Email |Print

Saudi Arabia is planning to expand its sovereign wealth fund into the world’s largest. The Public Investment Fund could eventually control more than $2 trillion, according to Deputy Crown Prince Mohammed bin Salman, making it big enough to buy the world’s four largest publicly traded companies.
The fund is at the center of the kingdom’s efforts to diversify revenue from oil under an economic transformation plan known as Vision 2030. The 84-page Vision blueprint includes plans to restructure the country’s finances, administration and reshape oil giant Saudi Aramco into an industrial and energy conglomerate………………………………………..Full Article: Source

Saudi wealth fund said to weigh US$8b bid for financial hub

Posted on 26 May 2016 by VRS  |  Email |Print

Saudi Arabia’s Public Investment Fund is likely to make an offer next month to buy Riyadh’s unfinished financial hub as the government attempts to rehabilitate a project plagued by delays and cost overruns.
The fund may pay about 30 billion riyals (S$10.95 billion) - the amount already spent on the King Abdullah Financial District by the kingdom’s Public Pension Agency - plus the cost of undeveloped plots, a person with knowledge of the plan said, asking not to be identified as discussions are private. The plan includes a new company to oversee the project’s completion and management………………………………………..Full Article: Source

Abu Dhabi Sovereign Fund ADIA eyes $200 million investment in Greenko

Posted on 26 May 2016 by VRS  |  Email |Print

Six months after making its first bet on India’s fast growing renewable energy sector, sovereign wealth fund ( SWF) Abu Dhabi Investment Authority ( ADIA) is gearing up for a rerun.
ADIA is in advance negotiations with Hyderabad headquartered Greenko Group to invest between $170-$200 million for a minority stake, said multiple sources aware of the ongoing negotiations. ADIA’s growing interest in this sector reflects the emirates’ focussed strategy to diversify from petroleum and other fossil fuels and back newer, clean tech ventures across the region, especially in emerging geographies like India………………………………………..Full Article: Source

Norway to regulate $850 billion fund’s tax haven exposure-lawmakers

Posted on 26 May 2016 by VRS  |  Email |Print

Norway will take a first step this week towards using its $850 billion sovereign wealth fund, the world’s biggest, as a tool to combat the use of tax havens, two key members of parliament’s finance committee told Reuters on Wednesday.
The country’s right-wing minority government will be asked to take a two-pronged approach to regulation, examining both the fund’s own use of ownership structures designed to cutits liability for tax on its foreign investments as well as that of companies it invests in, the politicians said. The move follows the Panama Papers leaks in April, which revealed details of corporate and individual tax evasion and triggered a global backlash against tax havens………………………………………..Full Article: Source

Norway’s sovereign wealth fund says backed Shell CEO’s pay

Posted on 26 May 2016 by VRS  |  Email |Print

Norway’s $850 billion (578.79 billion pounds) sovereign wealth fund, the world’s biggest, voted in favour of the 2015 remuneration package of Royal Dutch Shell Chief Executive Ben van Beurden at Tuesday’s annual meeting of shareholders, the fund said on its web site on Wednesday.
About 86 percent of the owners backed the 5.14 million euro ($5.73 million) pay package at the meeting. Two investor advisory firms had recommended that Shell’s owners should oppose it………………………………………..Full Article: Source

SOFAZ revenues amount to $126 billion

Posted on 26 May 2016 by VRS  |  Email |Print

Revenues of the State Oil Fund of Azerbaijan (SOFAZ) amounted to $126.2 billion during the entire period of its activity. The remark was made by Ziya Kangarli, chief investment advisor at SOFAZ during the Forum on “Decrease in oil prices and economic reforms: Challenges and Opportunities” which was held at Khazar University on May 24.
Kangarli noted that revenues of the SOFAZ are generated by two sources: directly by the revenues from sale of oil and by asset management. The spending totaled about $92 billion during the lifetime of the fund, said Kangarli, adding that it covers operating costs, which share is minimal, project financing and transfers to the state budget………………………………………..Full Article: Source

Global sovereign wealth fund network picks State Street as research partner

Posted on 26 May 2016 by VRS  |  Email |Print

The global network of sovereign wealth funds has selected State Street Corp. (STT) to be one of its official research partners, said a news release. As one of International Forum of Sovereign Wealth Funds’ official research partners, State Street will work with the IFSWF on research topics relevant to long-term investors, including asset allocation and investing in private markets.
State Street Associates, State Street Global Exchange’s research and advisory services business, has been assigned two specific research projects on which it will collaborate with a working group of sovereign wealth funds………………………………………..Full Article: Source

Hong Kong Monetary Authority looks to improve banks’ cyber security

Posted on 26 May 2016 by VRS  |  Email |Print

The banking regulator began a three-month consultation into the initiative on Tuesday, designed to ensure banks are ready to face online threats. The banking regulator is considering plans to require banks in the city to assess their resilience to cyber attacks and ways to train more qualified cybersecurity experts. From Tuesday, the Hong Kong Monetary Authority began a three-month consultation into the initiative.
The latest policy drive, which was named the “Cybersecurity Fortification Initiative”, was announced after the authority’s chief executive Norman Chan Tak-lam said at the Cyber Security Summit last week that the city’s financial sector could not be complacent, even though there were very few cases of serious cyberattacks reported in the past in Hong Kong………………………………………..Full Article: Source

Goldman Sachs’ Malaysian deals dry up in 1MDB fallout

Posted on 26 May 2016 by VRS  |  Email |Print

When Malaysia’s largest sovereign wealth fund asked bankers to pitch for work arranging a US$750 million (S$1 billion) bond sale in December, one big name was conspicuous by its absence - Goldman Sachs Group.
Khazanah Nasional omitted the Wall Street firm from the list of banks invited to bid on that and other bond transactions in the past three years, according to a person familiar with the matter. During that time, Goldman Sachs slid down the Malaysian deal league tables, cold-shouldered by potential clients concerned about negative publicity from its dealings with 1Malaysia Development Berhad (1MDB)………………………………………..Full Article: Source

1MDB assets transfer to be completed by mid-June

Posted on 26 May 2016 by VRS  |  Email |Print

Malaysia Development Bhd’s (1MDB) assets transfer to Ministry of Finance Incorporated (MoF Inc) will likely be completed by mid-June, says Deputy Finance Minister Datuk Johari Abdul Ghani. The company, he said will then become a shell company to manage liabilities and bonds it has used.
“The ministry has also decided that 1MDB is no longer allowed to make borrowings from any institutions and has to serve its liabilities and manage bonds through whatever means. “The business model is no longer sustainable. You cannot continue to do business using this model anymore and that is the reason why they cannot borrow anymore………………………………………..Full Article: Source

No more bailouts for 1MDB

Posted on 26 May 2016 by VRS  |  Email |Print

All parties must ensure that 1Malay­­­sia Development Berhad (1MDB) does not borrow from public funds to “rescue” the national investment body. “There is nothing to hide. On questions on using funds from (Govern­ment) institutions to save 1MDB, I think we are all responsible to ensure that 1MDB will no longer borrow from them,” said Deputy Fi­­nance Minister Datuk Johari Abdul Ghani in response to a supplementary question by Datuk Mansor Othman (PKR-Nibong Tebal).
Mansor had asked how 1MDB’s debt rationalisation plan could be carried out without using public funds such as from Tabung Haji and the Armed Forces Fund Board………………………………………..Full Article: Source

Najib: No misappropriation in 1MDB’s accounts

Posted on 26 May 2016 by VRS  |  Email |Print

There was no misappropriation in 1MDB’s accounts and administration, only weaknesses in the administration of the company, the Dewan Rakyat was told today. Prime Minister Najib Razak said this in a written reply to Mahfuz Omar (PAS-Pokok Sena) who had asked the finance minister to specify the course of action taken against the 1MDB management after the Public Accounts Committee’s (PAC) report.
In his reply, Najib, who is also the Finance Minister, cited the PAC report, which he said had stated there was no misappropriation in the embattled state investment fund’s accounts administration. “There were only weaknesses in the administration of the company………………………………………..Full Article: Source

Brazil shutting down wealth fund

Posted on 25 May 2016 by VRS  |  Email |Print

Eight years after it was founded, Brazil’s sovereign wealth fund is poised to finally serve its country — by shutting down. Acting President Michel Temer said Tuesday that the government plans to withdraw about 2 billion reais ($560 million) in assets and use the proceeds to finance a ballooning budget deficit as his economic team tries to end Brazil’s worst recession in a century.
Banco do Brasil SA, the state-run bank and the sovereign fund’s biggest stock holding, slumped to a two-month low after the announcement. The withdrawal will most likely mark the end for a fund that never quite fulfilled its purpose of investing in “strategically interesting” projects in Brazil and abroad………………………………………..Full Article: Source

Kazakh sovereign wealth fund expects stabilization of tenge rate

Posted on 25 May 2016 by VRS  |  Email |Print

The Department of Research and Knowledge Management of Samruk-Kazyna Sovereign Wealth Fund of Kazakhstan forecasted stabilization of the national currency of the country in 2016, according to the department’s report May 24.
“The average exchange rate of the USD-KZT is projected in the range of 355 for 2016″, said the analytical report of the department. Based on the current momentum observed on the USD-KZT, the tenge is expected to strengthen gradually moving forward, underpinned by several factors………………………………………..Full Article: Source

Kazakh sovereign fund raises forecast for 2016 average tenge rate

Posted on 25 May 2016 by VRS  |  Email |Print

Kazakh sovereign wealth fund Samruk Kazyna has raised its forecast for the average tenge exchange rate this year to 355 per dollar, the fund said in a research note on Tuesday.
In January, Samruk Kazyna forecast the average 2016 exchange rate at 380 per dollar under an optimistic scenario and 400 under the baseline one, but the currency has strengthened over the last four months alongside oil prices………………………………………..Full Article: Source

Azerbaijan’s Oil Fund sold $50 million through auction

Posted on 25 May 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has appeared today at the foreign exchange auction of the Central Bank as a seller. SOFAZ reports that today it set for sale an offer for $50 million and sold them.
“Among the buyers were 14 banks,” SOFAZsaid. At the previous auction the Fund sold $48.4 million to eight banks, including the CBA. The Fund promises to continue selling currency through auctions of the CBA………………………………………..Full Article: Source

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