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Sovereign Wealth Funds Briefing - Archive | June, 2016

Abu Dhabi to Merge Two State Investment Funds

Posted on 30 June 2016 by VRS  |  Email |Print

Abu Dhabi plans to merge two of its sovereign investments funds, just weeks after the emirate’s largest banks said they are looking to combine, as Persian Gulf governments reshape their economies amid falling oil revenues.
Abu Dhabi’s powerful Crown Prince Sheikh Mohamed bin Zayed has asked the International Petroleum Investment Company, or IPIC, to merge with Mubadala Development Co., according to a statement carried by the official United Arab Emirates state news agency. Abu Dhabi is one of the seven members of the U.A.E., one of the world’s top oil exporters………………………………………..Full Article: Source

Why Abu Dhabi’s Two Biggest Investment Funds are Merging: Q&A

Posted on 30 June 2016 by VRS  |  Email |Print

Abu Dhabi said it will merge two of its largest state-owned investment companies as the emirate grapples with a decline in crude prices and a slowdown in economic growth.
The combination of International Petroleum Investment Co. and Mubadala Development Company PJSC will be overseen by a committee including United Arab Emirates’ Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan and oil minister Suhail Al Mazrouei, according to a statement on state-run WAM news agency Wednesday………………………………………..Full Article: Source

$135bn Merger of UAE Funds Shows How Tough Times Are For Middle East Economies

Posted on 30 June 2016 by VRS  |  Email |Print

The surprise announcement from Abu Dhabi that it is to merge two of its sovereign wealth funds, International Petroleum Investment Company (IPIC) and Mubadala Development Company, has highlighted the tight corner that even the richest Middle East governments are in these days.
The merger was announced on June 29, following a decision by Sheikh Mohamed bin Zayed, crown prince of Abu Dhabi and the most important political figure in the UAE. According to the announcement by the official news agency WAM, the merger will allow for “synergies”, which is a polite way of saying cost-cutting………………………………………..Full Article: Source

Abu Dhabi merger to create oil producer dwarfing OPEC’s Libya

Posted on 30 June 2016 by VRS  |  Email |Print

Abu Dhabi’s proposed merger of two of its largest sovereign investment funds would create a global energy business that produces more oil than OPEC member Libya and with bigger assets than ConocoPhillips.
The Persian Gulf emirate with about 6% of the world’s crude reserves will combine Mubadala Development Co. and International Petroleum Investment Co. to cut costs and boost efficiency, the state news agency WAM reported Wednesday. The deal would pool assets of about $135 billion, many of them non-energy-related, and debt of about $42 billion, according to Bloomberg calculations. ConocoPhillips, by comparison, had $97 billion in total assets as of Dec. 31, 2015……………………………………….Full Article: Source

Abu Dhabi state funds to complete merger by end-2017

Posted on 30 June 2016 by VRS  |  Email |Print

The merger of Abu Dhabi state funds Mubadala Development Co and International Petroleum Investment Co should be completed by the end of 2017, a source close to the discussions on the deal said on Wednesday.
The committee overseeing the process will study the deal for the next six to 12 months. The deal is being approached as a merger of equals, the source said, declining to be identified because of the sensitivity of the subject. The combined entity will have a greater ability to borrow money on international markets and have a more balanced debt-to-equity ratio, the source added………………………………………..Full Article: Source

Libya wealth fund boss ‘screamed and cursed’ at Goldman bankers

Posted on 30 June 2016 by VRS  |  Email |Print

The Libyan wealth fund’s former deputy chief screamed and cursed at Goldman Sachs bankers in a stormy meeting over derivatives trades made on the bank’s advice that ultimately turned out to be worthless, a witness told a court on Tuesday.
In a trial at London’s High Court, the Libyan Investment Authority (LIA) is trying to claw back $1.2 billion from Goldman Sachs related to nine disputed trades carried out in 2008. The LIA argues Goldman took advantage of its financial naivety by first gaining its trust, then encouraging it to make risky and ultimately worthless investments………………………………………..Full Article: Source

Libyan fund officials didn’t understand Goldman trades: lawyer

Posted on 30 June 2016 by VRS  |  Email |Print

Libya’s sovereign wealth fund was “astonished to learn” it hadn’t acquired any actual shares through derivatives trades arranged by Goldman Sachs, according to a former lawyer for the fund who gave evidence in the High Court in London on Tuesday.
The Libyan Investment Authority is suing Goldman for $US1.2 billion ($1.62bn) to cover its losses from nine trades arranged in 2008. The trades took the form of equity derivatives and expired worthless in 2011. The LIA allegesthat Goldman executives exerted “undue influence” over its officials, who didn’t understand the trades………………………………………..Full Article: Source

What does the Nigeria Sovereign Investment Authority (NSIA) think about the government’s planned $25 billion infrastructure fund?

Posted on 30 June 2016 by VRS  |  Email |Print

Nigeria’s Vice President, Yemi Osinbajo has released a statement that the Buhari administration intends to spend $25 billion on an infrastructure fund to invest in the transport and energy sector as a way to develop the country’s failing road, rail and power structures to boost economic growth.
Although, the Vice President did not state the timeline guiding the fund, he said the fund would be set up with contributions from local and international sources including Nigeria’s sovereign wealth fund and domestic pension funds. The NSIA was actually set up for the purpose of managing and investing funds on behalf of the Nigerian government. He further stated that other sovereign wealth funds have already indicated an interest in the fund………………………………………..Full Article: Source

Russia Said to Shield Reserves as Putin Taps Sovereign Fund

Posted on 30 June 2016 by VRS  |  Email |Print

Russia will only take its battle against inflation so far. Reserves and the ruble’s free float is where it draws the line. Authorities are looking at how to keep tapping a wealth fund to cover the budget deficit even though their method of doing so floods the economy with excess cash, according to four officials familiar with the discussions.
For now, the central bank wants to stick to printing rubles when the government withdraws foreign currency, instead of converting it through sales on the open market, the people said, asking not to be named because the deliberations are private………………………………………..Full Article: Source

Azerbaijan’s Oil Fund exits from losses of previous periods

Posted on 30 June 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has achieved the net profit in 2015. The PwC-audited report on SOFAZ activity for 2015 says that in 2015 SOFAZ net profit amounted to AZN 23.59 million against a loss of AZN 1.212 bn in 2014.
According to the auditor, SOFAZ operating income for the past year totaled AZN 23.619 million against operating loss of AZN 1.166 bn a year earlier. The main part bulk of income was received from exchange rate difference for almost AZN 22.46 million………………………………………..Full Article: Source

IPIC’s 1MDB row likely driver for Mubadala merger

Posted on 30 June 2016 by VRS  |  Email |Print

The potential merger of Abu Dhabi state funds Mubadala and IPIC is likely to be driven by the latter’s spat with Malaysia’s 1MDB, according to bankers. “It is almost certainly linked to that,” said a UAE-based debt capital markets banker. “IPIC’s name has been somewhat tainted by it.”
IPIC and the Malaysian sovereign wealth fund are embroiled in a legal tussle over a debt restructuring, in which IPIC is claiming about US$6.5bn. The Abu Dhabi fund has asked a London court to arbitrate the dispute, which has also delayed a long-rumoured euro bond deal………………………………………..Full Article: Source

Singapore’s Sovereign-Wealth Fund Is in Talks to Buy Manufactured-Home Owner

Posted on 29 June 2016 by VRS  |  Email |Print

Singapore’s sovereign-wealth fund is negotiating to acquire Yes! Communities, an owner of manufactured-housing communities, in a $2 billion deal, according to people familiar with the mater.
GIC is in talks to buy Denver-based Yes! from private-equity firm Stockbridge Capital Group, the people said. Yes! owns or operates 178 communities in 17 American states, according to the company’s website………………………………………..Full Article: Source

CIC Taps Shanghai Deputy Mayor Tu Guangshao As General Manager

Posted on 29 June 2016 by VRS  |  Email |Print

China’s sovereign wealth fund China Investment Corp. is to appoint Shanghai’s deputy mayor Tu Guangshao (pictured) as its new general manager, replacing 60-year-old Li Keping who is retiring after heading the entity for the past two years, Chinese state media reported.
Tu, 57, was previously head of the Shanghai’s Stock Exchange, a deputy chair at China’s securities regulator and a central bank official. He has been vice mayor of Shanghai since December 2007, and was promoted to executive vice mayor in February 2013. The Peking University graduate has led Shanghai’s effort to become an international financial hub since 2007……………………………………….Full Article: Source

Norway oil fund drops investment in Cairn and Kosmos

Posted on 29 June 2016 by VRS  |  Email |Print

Norway’s $835bn oil fund has excluded Cairn Energy of the UK and Kosmos Energy of the US from its portfolio over their continuing investment in oil exploration off the coast of Western Sahara.
The world’s largest sovereign wealth fund was one of the biggest investors in Cairn with a 2.85 per cent stake at the end of last year. It had a smaller 0.8 per cent stake in Kosmos, which is based in Dallas and has exploration licences in several African countries………………………………………..Full Article: Source

Norwegian sovereign fund divests companies over Western Sahara

Posted on 29 June 2016 by VRS  |  Email |Print

The Norwegian sovereign wealth fund has divested two companies due to their involvement with oil extraction in Western Sahara. Norges Bank Investment Management (NBIM), responsible for the Government Pension Fund Global, said it heeded a recommendation by the Council of Ethics to sell its stakes in Cairn Energy and Kosmos Energy, worth a combined NOK475m (€49.6m) at the end of 2015.
Referring to the Council’s recommendation, NBIM cited the risk of “particularly serious violations of fundamental ethical norms”, the reason given in the past when the NOK7.1trn fund sold its stakes in companies active in Western Sahara………………………………………..Full Article: Source

SOFAZ streamlines its financial portfolio management

Posted on 29 June 2016 by VRS  |  Email |Print

SimCorp, a leading provider of investment management solutions and services for the global financial services industry, today announced that the State Oil Fund of the Republic of Azerbaijan (SOFAZ) has successfully completed the implementation of SimCorp Dimension.
The implementation provides SOFAZ with a fully integrated portfolio management, investment book of record (IBOR), and accounting system, covering front, middle, and back office, which allows the sovereign wealth fund to automate and streamline its financial portfolio management activities………………………………………..Full Article: Source

Azerbaijan’s Oil Fund sold another $50 million through Central Bank’s auction

Posted on 29 June 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. According to SOFAZ, today it has applied for sale of $50 million and sold them. “31 banks became the buyers,” the Fund said.
At the previous auction the Fund sold $50 million to 32 banks, including the Central Bank. The Fund promises to continue selling currency through CBA auctions………………………………………..Full Article: Source

Hyperloop One gets an investment from Russia’s sovereign fund

Posted on 29 June 2016 by VRS  |  Email |Print

A second Russian fund appears to be involved in Hyperloop One‘s latest $80 million round of financing, which was closed in April. Russia’s sovereign fund RDIF has just announced that it took part in the round, without disclosing, however, the amount of its contribution.
“RDIF pays great attention to the development of transport infrastructure, including the technological advances that will shape the future of the transport industry. Our investment in Hyperloop One’s project will facilitate the arrival of cutting-edge technologies in Russia. RDIF and its international partners will provide support to the project not only in Russia but also in Middle Eastern and Asian markets,” said RDIF CEO Kirill Dmitriev………………………………………..Full Article: Source

Libyan Fund Officials Didn’t Understand Goldman Trades, Attorney Says

Posted on 29 June 2016 by VRS  |  Email |Print

Libya’s sovereign-wealth fund was “astonished to learn” it hadn’t acquired any actual shares through derivatives trades arranged by Goldman Sachs Group Inc., according to a former lawyer for the fund who gave evidence in the High Court in London on Tuesday.
The Libyan Investment Authority, or LIA, is suing Goldman for $1.2 billion to cover its losses from nine trades arranged in 2008. Those trades took the form of equity derivatives and expired worthless in 2011. The LIA alleges that Goldman executives exerted “undue influence” over its officials, who didn’t understand the trades……………………………………….Full Article: Source

Abu Dhabi’s Masdar in talks for $800 mln loan to fund solar project

Posted on 29 June 2016 by VRS  |  Email |Print

A consortium led by Abu Dhabi’s Masdar is aiming to raise an $800 million loan to help fund the building of the 800-megawatt (MW) third phase of Dubai’s solar park, the company’s chief executive said.
The consortium is in talks with banks including National Bank of Abu Dhabi, First Gulf Bank and Union National Bank to provide project finance, said Mohamed al-Ramahi, chief executive of green energy firm Masdar, wholly owned by Abu Dhabi investment fund Mubadala………………………………………..Full Article: Source

Ministerial committee to conduct studies on sovereign wealth fund Amlak

Posted on 29 June 2016 by VRS  |  Email |Print

A ministerial committee is set to work with local and international advisory bodies to conduct economic, financial, and administrative studies on Egypt’s proposed sovereign wealth fund Amlak, Al Borsa reported on Monday.
EGP 5 bn has been already earmarked for the fund in FY2015/16’s budget. The fund will be state-owned through the National Investment Bank and will “encourage diversification and support sustainable economic and social development,” the cabinet said when it was first announced………………………………………..Full Article: Source

Sovereign Wealth Fund Withdrawals Remain Headwind For Fund Companies

Posted on 29 June 2016 by VRS  |  Email |Print

Sovereign wealth funds continue to pull money out of investments with global asset managers, reports Attracta Mooney at Financial Times. SWFs, government-owned investment pools, sopped up petrodollars when oil prices were north of $100 a barrel. In turn, this money was pumped money into funds run by the world’s biggest asset managers.
But after oil prices plunged in summer 2014, governments of oil-producing countries that were sitting on comfortable budget surpluses suddenly were facing deficits. In turn, SFWs, which own a lot of property and private equity investments, have selling their liquid assets (stocks and bonds) first………………………………………..Full Article: Source

Sujoy Bose appointed CEO of Indian sovereign wealth fund NIIF

Posted on 28 June 2016 by VRS  |  Email |Print

Sujoy Bose was on Monday appointed CEO of India’s maiden Rs 40,000 crore sovereign wealth fund NIIF. At present he is the Director and Global Co-Head of Infrastructure and Natural Resources at Washington-based International Finance Corporation. IFC is the private sector lending arm of the World Bank.
An official statement on Monday said Bose “has been appointed as the Chief Executive Officer (CEO) of National Investment and Infrastructure Fund (NIIF) Ltd”, adding that he has “extensive international experience in the infrastructure sector including experience in raising funds from international investors”………………………………………..Full Article: Source

New Zealand Super set to pursue factor investing

Posted on 28 June 2016 by VRS  |  Email |Print

New Zealand Superannuation Fund is turning to factor-based strategies to squeeze better long-term returns from the roughly 75% of its NZ$30.3 billion ($21.4 billion) portfolio invested now in passive strategies.
New Zealand Super is close to moving forward with allocations to two factors — value and “low risk” — that are particularly well-suited to the fund’s beliefs and advantages as a long-term investor, said Roland Winn, manager-investment analysis with the Auckland-based sovereign wealth fund, in a June 22 interview………………………………………..Full Article: Source

1MDB: Malaysia’s stunning financial scandal

Posted on 28 June 2016 by VRS  |  Email |Print

Malaysia has been rocked for more than a year by a financial scandal involving Prime Minister Najib Razak, a state investment firm, and an alleged frenzy of embezzlement stunning in its scope and complexity.
Authorities in a half-dozen countries have launched investigations into suspicions that several billion dollars was looted from complicated financial transactions involving 1MDB and parked around the world. Following are answers to key questions in the affair………………………………………..Full Article: Source

QIA Said to Weigh Pulling Credit Suisse London Office Sale

Posted on 28 June 2016 by VRS  |  Email |Print

The Qatar Investment Authority is considering abandoning the sale of 1 Cabot Square, an office building in London’s Canary Wharf financial district leased to Credit Suisse Group AG, according to two people with knowledge of the matter.
QIA was reviewing the sale plan even before the U.K. voted to leave the European Union, the people said, asking not to be identified because the sale is not completed. The sovereign wealth fund is still in talks with at least one potential buyer, another person said. A spokesman for QIA declined to comment………………………………………..Full Article: Source

Kuwait’s finance min expresses confidence in UK investments

Posted on 28 June 2016 by VRS  |  Email |Print

Kuwaiti Finance Minister Anas Al-Saleh said on Monday that the Gulf Arab kingdom’s investments in Britain were “high-quality and long-term”, state news agency KUNA reported.
The Kuwait Investment Authority (KIA), has $592 billion in assets under management, according to the Sovereign Wealth Fund Institute (SWFI), and is also a major investor though its London-based Kuwait Investment Office. In 2013 it said the fund had more than doubled its investment in Britain over the previous 10 years to more than $24 billion………………………………………..Full Article: Source

Norway’s sovereign wealth fund files complaint against VW over emissions scandal

Posted on 28 June 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund has filed a complain against Volkswagen as part of a joint legal action following the carmaker’s emissions scandal.
The world’s largest wealth fund said the complaint was filed to the Braunschweig District Court in Germany and is part of the lawsuit filed by law firm Quinn Emanuel on behalf of institutional funds in connection with the scandal. The fund is Volkswagen’s largest shareholder without a seat on its advisory board………………………………………..Full Article: Source

The State Oil Fund of the Republic of Azerbaijan successfully completes implementation of SimCorp Dimension

Posted on 28 June 2016 by VRS  |  Email |Print

SimCorp, a leading provider of investment management solutions and services for the global financial services industry, today announced that The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has successfully completed the implementation of SimCorp Dimension.
The implementation provides SOFAZ with a fully integrated portfolio management, investment book of record (IBOR), and accounting system, covering front, middle, and back office, which allows the sovereign wealth fund to automate and streamline its financial portfolio management activities. SOFAZ’s assets under management has increased from less than USD 1.5bn ten years ago to over USD 34bn today, and since then the complexity and diversity of the financial instruments the fund is investing in have increased significantly. (Press Release)

SWFs: Investing Directly and Creating Value

Posted on 28 June 2016 by VRS  |  Email |Print

Today, when sovereign wealth funds (SWFs) put assets into alternative investments, they are more likely to be direct, rather than passive, investors. One of Canada’s largest pension funds recently bought a significant minority stake in Allflex Group, the global leader in animal monitoring technology, joining Allflex’s leading shareholder, private equity firm BC Partners.
In India, a growing number of SWFs are reportedly interested in acquiring investment stakes in infrastructure companies that are expanding the nation’s roads and airports. The New York Times recently described SWFs as part of the group of so-called emerging buyers who bought about 17 percent of the assets sold by private equity firms since 2015, up from 2 percent almost a decade ago………………………………………..Full Article: Source

Sovereign funds continue to pull billions from asset managers

Posted on 27 June 2016 by VRS  |  Email |Print

Sovereign wealth funds have pulled billions of dollars from asset managers for the seventh consecutive quarter, piling further pressure on an industry battling falling profits and disappointing performance.
State-backed funds, which countries use to save for a rainy day or to provide money for future generations, withdrew at least $8.8bn from fund houses during the first quarter of this year. The redemptions follow record outflows last year, when state funds collectively withdrew at least $46.5bn from asset managers as the price of oil collapsed and governments raided state funds to prop up their economies………………………………………..Full Article: Source

Norway $860-billion wealth fund repeats will remain long-term investor in UK regardless of Brexit

Posted on 27 June 2016 by VRS  |  Email |Print

Repeats that it will remain a long-term investor in Britain regardless of Brexit vote outcome. Is following the situation after Brexit vote.
Britain is the fund’s second-largest country holding after the United States, representing 10.2 percent of its total value at end-2015………………………………………..Full Article: Source

Norway’s wealth fund files complaint against Volkswagen

Posted on 27 June 2016 by VRS  |  Email |Print

Norway’s $850-billion sovereign wealth fund, the world’s largest, has filed a complaint against Volkswagen, as part of a joint legal action following the carmaker’s emissions scandal, the fund said in a statement.
The fund said the complaint was filed to the Braunschweig District Court in Germany and is part of the lawsuit filed by law firm Quinn Emanuel on behalf of institutional funds in connection with the scandal. It is Volkswagen’s largest shareholder without a seat on its supervisory board and said in May it planned to join class-action lawsuits filed against Volkswagen over the German automaker’s emissions scandal………………………………………..Full Article: Source

The Future Fund emerges in Port of Melbourne bid

Posted on 27 June 2016 by VRS  |  Email |Print

The Future Fund, Australia’s $117 billion sovereign wealth fund, is believed to be seeking to buy a 20 per cent stake in the Australia’s largest shipping container terminal, the Port of Melbourne.
Street Talk understands The Future Fund is preparing to bankroll an offer from Australian infrastructure fund manager QIC, which is headed to Port of Melbourne’s auction alongside two offshore investors. While it is only early days, a 20 per cent stake is expected to be worth about $600 million, which would make it one of The Future Fund’s largest infrastructure investments………………………………………..Full Article: Source

Singapore GIC is prepared for a period of heightened market uncertainty post-Brexit

Posted on 27 June 2016 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC said on Friday it runs a long-term and diversified portfolio even though about 7 per cent of its portfolio is invested in the United Kingdom, making it the most exposed among Asian state investors after Britain’s shock exit from the European Union (EU).
According to the Sovereign Wealth Fund Institute, GIC manages US$344 billion in assets, of which US$24 billion or 7 per cent of its portfolio is invested in the UK based on its latest annual report………………………………………..Full Article: Source

UAE’s net investment outstrips external debt: Moody’s

Posted on 27 June 2016 by VRS  |  Email |Print

The UAE benefits from a large positive net international investment position (IIP) that is far higher than its aggregate external debt, Moody’s Investors Service said. “Although not officially published, historical financial flows, sovereign wealth fund [SWF] assets and external debt data suggest that UAE’s net IIP may be as high as 130 per cent of the country’s gross domestic product [GDP], ranking the country in the top quartile globally,” said Moody’s.
Assets of the country’s largest SWF, the Abu Dhabi Investment Authority, or Adia, which are estimated at approximately 160 per cent of GDP and invested primarily overseas, represent the main component of the country’s net IIP, far exceeding the stock of external debt, which is expected to exceed 70 per cent in 2016………………………………………..Full Article: Source

Qatar shows its economic resilience and much more

Posted on 27 June 2016 by VRS  |  Email |Print

The amount raised in May is considered the biggest-ever bond issued by any government in the Middle East. Not surprisingly, the achievement serves as a vote of confidence by international investors concerning the Qatari economy’s prospects notwithstanding the oil prices.
On another front, it is still business as usual with regards to making use of sovereign wealth funds to purchase assets worldwide. Statistics released by the Sovereign Wealth Fund Institute estimates the Qatari SWF at $256 billion. Other sources put the value at nearly $300 billion………………………………………..Full Article: Source

Qatar fund buying Balmain shows Middle Eastern investors’ hunger for luxury labels

Posted on 27 June 2016 by VRS  |  Email |Print

The acquisition of Balmain, the Paris fashion house, by Mayhoola for Investments, a Qatar-based fund, is the latest sign of Middle Eastern investors’ appetite for luxury goods. The spree makes sense: that region’s market is probably the best suited to the industry’s business model and culture today.
Qatar itself has invested heavily in the luxury business through its sovereign wealth fund, buying 1 per cent of the French holding LVMH, 38 per cent of UK accessories brand Anya Hindmarch, 11.3 per cent of Tiffany, and controlling stakes in the French department store chain Printemps and London’s Harrods………………………………………..Full Article: Source

Norwegian pension fund dumps Petrobras over corruption

Posted on 24 June 2016 by VRS  |  Email |Print

Norway’s largest pension fund has blacklisted Petrobras over concerns that the state-controlled oil company at the centre of a Brazilian bribery scandal is prone to further corruption problems beyond its home market.
KLP, which oversees NKr553bn ($67bn) of assets, said it would no longer invest in Petrobras due to the “unacceptable risk” of future problems at the company. KLP is the first large investor to publicly blacklist Petrobras since a vast bribery scandal emerged at the company in 2014, costing it at least R$6.2bn ($1.7bn) in corruption-related losses………………………………………..Full Article: Source

More public listings needed to boost growth - Norway’s wealth fund

Posted on 24 June 2016 by VRS  |  Email |Print

Developed economies must reverse a two-decade decline in stock market listings to attract investment and revive growth, Norway’s $870 billion sovereign wealth fund, the world’s largest, said on Wednesday.
Governments must convince firms to go public by offering tax breaks and slashing red tape, while bankers should cut the cost of initial public offerings and index providers must include more stocks in benchmarks, the chief investment officer of Norges Bank Investment Management (NBIM) told Reuters………………………………………..Full Article: Source

Azerbaijan’s Oil Fund sells another $50 million through Central Bank’s auction

Posted on 24 June 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. According to SOFAZ, today it has applied for sale of $50 million and sold them.
“32 banks became the buyers,” the Fund said. At the previous auction the Fund sold $50 million to 28 banks, including the Central Bank. The Fund promises to continue selling currency through CBA auctions………………………………………..Full Article: Source

BSI Bank appeals regulator’s 1MDB sanctions

Posted on 24 June 2016 by VRS  |  Email |Print

Swiss-based private bank BSI is taking the country’s financial regulator to court to appeal “unlawful and disproportionate sanctions” imposed last month in relation to the bank’s business with the Malaysian sovereign wealth fund 1MDB.
The Swiss Financial Market Supervisory Authority (FINMA) has ordered BSI to disgorge CHF95 million ($99 million) in profits for “serious breaches” of anti-money laundering rules. FINMA also effectively closed down the BSI, whose business is being taken over by EFG Bank, and is taking action against two executives………………………………………..Full Article: Source

Temasek draws diversified crowd to PE-backed CFO

Posted on 24 June 2016 by VRS  |  Email |Print

Singapore sovereign investment arm Temasek Holdings executed a landmark transaction this week with its $1.1bn Astrea III securitization backed by cashflows generated by private equity funds. But despite the rarity of the deal and the difficulty in coming up with a price gauge, Temasek managed to expand the appeal of the product to a more diversified investor base.
Temasek had a clear set of targets in mind for what it wanted to achieve with Astrea III. For starters, it wanted to further the development of private equity collateralised fund obligations, having been one of the very few globally to bring such deals out………………………………………..Full Article: Source

GIC’s Betty Tay appointed to HFSB

Posted on 24 June 2016 by VRS  |  Email |Print

The Hedge Fund Standards Board (HFSB), the global standard-setting body for the hedge fund industry, has appointed Managing Director and Head of the External Managers Department at GIC Betty Tay to its board of directors.The board also established the Asia Pacific Committee (APAC Committee).
GIC, formerly known as Government of Singapore Investment Corporation, is a sovereign wealth fund established by the Government of Singapore in 1981 to manage Singapore’s foreign reserves and has more than $100 billion in assets in more than 40 countries worldwide, according to the company. (Press Release)

Can a new owner take ‘Balmania’ to the next level?

Posted on 24 June 2016 by VRS  |  Email |Print

So, Mayhoola for Investments — the Qatari sovereign wealth fund that owns Valentino, Anya Hindmarch and Pal Zileri, and that is backed by Qatar’s royal family — has bought Balmain, the Paris fashion house backed by the Kardashians (well, not exactly backed, but they are its biggest cheerleaders). This could have big repercussions on what we all wear.
Since 2005, when the designer Christophe Decarnin transformed the couture house to haute rock ‘n’ roll hotness, Balmain has been a brand whose buzz — with its own name, “Balmainia” — is significantly bigger than its bite of the market………………………………………..Full Article: Source

Libyan Fund Official Had Never Heard of Goldman ‘In My Life’

Posted on 23 June 2016 by VRS  |  Email |Print

A Libyan official who helped review billion-dollar investments with Goldman Sachs Group Inc. said he had never heard of the bank or the word derivative before joining the country’s $60 billion-dollar sovereign wealth fund in 2007.
Hisham Najah, now the Libyan Investment Authority’s chief investment officer, testified Wednesday in the fund’s lawsuit against Goldman Sachs over losses from trades in 2008………………………………………..Full Article: Source

Fashion house Balmain sold to Qatar’s Mayhoola sovereign wealth fund

Posted on 23 June 2016 by VRS  |  Email |Print

The Qatari investment fund that owns the Italian Valentino label will take over the French fashion house Balmain, which has become a favourite of film stars, the adviser for the acquisition has announced.
“After completing this transaction Mayhoola for Investments will hold 100% of Balmain’s capital,” said the merger and acquisitions company Bucephale Finance. The French financial daily Les Echos in reporting on the acquisition said the Qataris offered €485m (£372m) for Balmain, which is 70% held by the heirs of the former CEO, Alain Hivelin, who died in December 2014, with the remaining 30% held by management………………………………………..Full Article: Source

World’s 2nd-Biggest Sovereign Fund Sees Oil Glut Until Mid-2017

Posted on 23 June 2016 by VRS  |  Email |Print

The global oil glut will probably persist until at least next summer as markets take time to absorb excess crude in storage, according to the head of research at the world’s second-largest sovereign wealth fund.
Supply and demand for oil are coming back into balance, and the response of shale producers to rising prices will help determine how high crude can go, Christof Ruehl, the global head of research at Abu Dhabi Investment Authority, said……………………………………….Full Article: Source

More public listings needed to boost growth - Norway’s wealth fund

Posted on 23 June 2016 by VRS  |  Email |Print

Developed economies must reverse a two-decade decline in stock market listings to attract investment and revive growth, Norway’s $870 billion sovereign wealth fund, the world’s largest, said on Wednesday.
Governments must convince firms to go public by offering tax breaks and slashing red tape, while bankers should cut the cost of initial public offerings and index providers must include more stocks in benchmarks, the chief investment officer of Norges Bank Investment Management (NBIM) told Reuters………………………………………..Full Article: Source

GIC said to be selling two Paris buildings

Posted on 23 June 2016 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC is in talks to sell two buildings in the Paris central business district valued at about €500 million (S$756 million) to Societe Generale’s insurance unit, according to people with knowledge of the discussions.
The adjacent properties, in Rue d’Astorg and Rue de la Ville- l’Eveque, include the French headquarters of law firm Clifford Chance, said the people, who asked not to be identified because the deal has not yet been completed and could still fall apart………………………………………..Full Article: Source

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