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Sovereign Wealth Funds Briefing - Archive | July, 2016

New Mexico SIC sets aside $193m for non-core real estate

Posted on 29 July 2016 by VRS  |  Email |Print

The New Mexico State Investment Council plans to invest $193m (€174.5m) in non-core real estate in 2017. The investor’s annual investment plan was approved at a board meeting this week.
New Mexico State said it had already committed sufficient capital to core open-ended funds and was looking to round out its portfolio with value-added funds. The sovereign wealth fund is looking to invest the capital on a global basis………………………………………..Full Article: Source

Alaska’s $53 Billion Permanent Pool to Exit Funds of Hedge Funds

Posted on 29 July 2016 by VRS  |  Email |Print

Alaska’s $53 billion wealth fund plans to exit all of its funds of hedge funds and will instead make investment decisions in-house. Alaska Permanent Fund Corp. plans to pull all of the $2 billion it has invested in liquid assets across Crestline Investors, Mariner Investment Group and Lazard Asset Management, according to Marcus Frampton, its director of private markets.
Alaska will instead rely on its own five-person alternatives team to select hedge funds. “We’ve decided to move to a 100 percent direct program,” Frampton said……………………………………….Full Article: Source

HKMA warns of risks ahead after US Fed keeps interest rates unchanged

Posted on 29 July 2016 by VRS  |  Email |Print

The Hong Kong Monetary Authority on Thursday warned the public to be aware of risks arising from market uncertainties after the US Federal Reserve decided not to raise interest rates in its meeting overnight.
“The US Federal Reserve did not give any indication on when it would increase the interest rate again. We believe this is because the US economy and international financial markets remain full of uncertainties,” the local central bank spokesman said in a statement……………………………………….Full Article: Source

Temasek Should Hang Up

Posted on 29 July 2016 by VRS  |  Email |Print

A Qatari company just gave Singapore’s state investor a solid clue about what to do with its outsize holdings of the island’s telcos: sell, and run.Ooredoo QSC, the Doha-based phone carrier, is working with HSBC to find a buyer for its indirect stake of about 14 percent in Singapore’s StarHub, Bloomberg News reported this week.
The reason why Ooredoo may want out — to focus on the Middle East and other fast-growing markets — has a message for Singapore’s Temasek, which for the fiscal year ended March 31 saw its assets shrink for the first time in seven years………………………………………..Full Article: Source

GIC bids for stake in Indian commercial developer

Posted on 29 July 2016 by VRS  |  Email |Print

The world’s biggest alternative investment manager, and Singapore’s sovereign wealth fund look at a $1 billion India real estate deal, while Wanda makes progress on its Hong Kong privatisation plan, while spending some pocket millions on a new web platform. Read on for all these stories and more.
Blackstone, GIC of Singapore and a consortium of sovereign wealth funds from Abu Dhabi and Qatar have advanced in the process to buy a $1-billion stake in the commercial property unit of DLF, people directly familiar with the matter said………………………………………..Full Article: Source

Singaporean wealth fund warns of hard investment decade

Posted on 29 July 2016 by VRS  |  Email |Print

Singapore’s multibillion-dollar sovereign wealth fund GIC yesterday reported a substantial dip in returns and warned of “difficult” global investment conditions over the next decade. The fund said in a statement its annualized rate of return, excluding global inflation, for the past 20 years fell to 4 percent in the year to March, from 4.9 percent last year, adding that future returns would be challenged by uncertainties caused by a low-yield environment.
“These difficult investment conditions can stretch for the next 10 years,” deputy group president and chief investment officer Lim Chow Kiat said………………………………………..Full Article: Source

GIC spots investment opportunities in emerging economies

Posted on 29 July 2016 by VRS  |  Email |Print

Several nations have reigned in excessive credit growth. According to Bloomberg, in an environment of diminishing returns, emerging economies are offering better opportunities for investors compared with last year, Singapore’s sovereign wealth fund GIC Pte said.
Several emerging nations have reigned in excessive credit growth, Lim Chow Kiat, GIC’s group chief investment officer and deputy group president, said in an interview. They are also seeing adjustments to their exchange rates and lower asset prices as foreign investors have withdrawn capital, he said, adding that he’s positive on India while more reforms are needed in China………………………………………..Full Article: Source

1MDB: The inside story of the world’s biggest financial scandal

Posted on 29 July 2016 by VRS  |  Email |Print

On 22 June 2015, Xavier Justo, a 48-year-old retired Swiss banker, walked towards the front door of his brand new boutique hotel on Koh Samui, a tropical Thai island. He had spent the past three years building the luxurious white-stone complex of chalets and apartments overlooking the shimmering sea and was almost ready to open for business. All he needed was a licence.
Justo had arrived in Thailand four years earlier, having fled the drab world of finance in London. In 2011, he and his girlfriend Laura toured the country on a motorbike and, two years later, they got married on a secluded beach………………………………………..Full Article: Source

US Lawsuit Against Malaysia’s 1MDB: Who is ‘Official 1′?

Posted on 29 July 2016 by VRS  |  Email |Print

The United States Department of Justice has filed a lawsuit against some individuals accused of using an investment firm owned by the Malaysian government to steal more than $1 billion.
The lawsuit also mentioned a certain “Malaysian Official 1,” prompting many to ask if it refers to Prime Minister Najib Razak since he has control over the 1Malaysian Development Berhad (1MDB) investment firm and his stepson is one of the accused. The lawsuit aims to recover some 17 assets in the United States, which have been allegedly acquired through 1MDB funds………………………………………..Full Article: Source

White-shoe US law firm linked to over $1bn embezzled from 1MDB

Posted on 29 July 2016 by VRS  |  Email |Print

Shearman & Sterling LLP has become embroiled in the US Department of Justice’s largest asset forfeiture case yet connected to the 1Malaysia Development Berhad (1MDB) controversy.
In a scandal that has gripped Malaysia and is seeing investigations commenced in a number of countries including the US and Switzerland, people close to beleaguered Malaysian Prime Minister Najib Razak are alleged to have stolen billions of dollars from the Malaysian sovereign wealth fund………………………………………..Full Article: Source

Investcorp Sells 20% Stake to Abu Dhabi-Based Fund Mubadala

Posted on 29 July 2016 by VRS  |  Email |Print

Mubadala will immediately acquire a 9.9% stake with a further 10.01% to follow after obtaining regulatory approvals. Bahraini investment manager Investcorp on Thursday said it had agreed to sell a 20% stake to Mubadala Development Co., a sovereign-wealth fund tasked with diversifying Abu Dhabi’s economy.
Under the terms of the transaction, Mubadala will immediately acquire a 9.9% stake in Investcorp and another 10.01% stake after obtaining regulatory approvals. No financial details were disclosed………………………………………..Full Article: Source

Singapore’s Sovereign-Wealth Fund Sees Lower Returns Ahead

Posted on 28 July 2016 by VRS  |  Email |Print

Singapore’s over $300 billion sovereign-wealth fund sees no end in sight for the era of low returns as anemic interest rates and sluggish growth weighed on one of the world’s biggest state funds.
“These difficult investment conditions can stretch for the next 10 years,” said Lim Chow Kiat, GIC Pte. Ltd.’s chief investment officer. The sovereign-wealth fund, charged with managing the country’s foreign-exchange reserves, said in its annual report that it earned a 3.7% annualized nominal rate of return over the past five years through the end of March. That compares with a 6.5% return for the five years through the end of March 2015………………………………………..Full Article: Source

Singapore wealth fund’s performance falls to three-year low

Posted on 28 July 2016 by VRS  |  Email |Print

Low interest rates, high asset valuation and political instability were expected to bring down returns for the foreseeable future, Singapore’s GIC said on Thursday as the sovereign wealth fund’s performance fell to a three-year low.
The investment group’s rolling annualised 20-year rate of return fell to 4 per cent for the year ending March 31, GIC said in its annual results. It recorded 4.9 per cent last year, the strongest results in a decade. The group does not publish single-year results and uses the 20-year annualised rate as its benchmark for performance………………………………………..Full Article: Source

GIC Warns of Muted Market Returns as Fund Performance Declines

Posted on 28 July 2016 by VRS  |  Email |Print

GIC Pte, which manages Singapore’s foreign reserves, said its key performance measure declined and warned that record-low interest rates will weigh on investment returns in the coming decade.
The sovereign wealth fund’s real rate of return fell to 4 percent in the 20-year period to March 31, from 4.9 percent in the period ended March 2015, as global stock markets posted lackluster performance and bond returns tumbled, according to GIC’s annual report Thursday. GIC doesn’t disclose annual performance figures………………………………………..Full Article: Source

GIC ‘more defensive’ in investing stance

Posted on 28 July 2016 by VRS  |  Email |Print

Sovereign wealth fund GIC said it had been more defensive in its investing stance in the past year, owing to more challenging investment conditions. The fund’s approach was reflected in its move to increase its holdings of bonds and cash, at the expense of developed market equities, which are seen as more risky.
“It reflects our caution on the overall environment. All those reasons we talked about: low growth, high debt and expectation of high volatility,” said GIC deputy group president and group chief investment officer Lim Chow Kiat………………………………………..Full Article: Source

Future Fund adds Kiskadee to reinsurance roster

Posted on 28 July 2016 by VRS  |  Email |Print

Australian sovereign wealth fund the Future Fund has added Kiskadee Investment Managers to its line-up of reinsurance managers, according to its website. The Hiscox subsidiary has posted quick growth in the past year, surpassing the $1bn mark for assets under management after launching in 2014.
The Kiskadee mandate is the Future Fund’s second insurance-linked investment, following an initial allocation to Elementum Advisors in 2015 across both cat bonds and collateralised reinsurance………………………………………..Full Article: Source

Future Fund and Cbus see big opportunities in direct lending

Posted on 28 July 2016 by VRS  |  Email |Print

The potential for super funds to be direct lenders is enormous, according to a panel that included the Future Fund, Cbus and AustralianSuper that are all lending directly. Rob Leck, manager debt and quantitative solutions at Cbus, which is about to enter the private debt market, said that not only do investors have to be lenders, but they have the potential to assist in the development of a high yield market in Australia.
The Future Fund has been involved in the direct lending landscape since 2009, and first made an investment in 2010 in the European corporate middle market. It is viewed as a credit allocation and makes up around 30 per cent of the credit portfolio………………………………………..Full Article: Source

HKMA adds to mortgage talk

Posted on 28 July 2016 by VRS  |  Email |Print

Amid intensifying competition between banks for mortgage business and reports of the Hong Kong Monetary Authority informing banks verbally that they must restrict rebates on such loans immediately, the HKMA had come out to say it is not setting any new caps.
A spokesperson from the authority said it is already a requirement that if a bank offers a cash rebate or cash- equivalent incentive that exceeds 1 percent of the amount of the mortgage loan then the bank should treat the sum as part of the mortgage loan when calculating the loan-to-value ratio………………………………………..Full Article: Source

Saudi royal oil group at heart of 1MDB case

Posted on 28 July 2016 by VRS  |  Email |Print

US justice department claims $1bn of Malaysian funds for PetroSaudi venture was siphoned off. It is the tale of a little-known but well-connected oil company that was co-founded by a Saudi prince and claims to be a “partner of choice” for multinationals.
But US authorities have now left PetroSaudi International grappling with questions over its dealings with the scandal-racked 1MDB, the Malaysian state wealth fund. US investigators last week threw their weight behind longstanding claims that $1bn of Malaysian public money meant for 1MDB’s joint venture with PetroSaudi was instead siphoned off to a Malaysian businessman, who splurged millions on art, partying and a Hollywood film………………………………………..Full Article: Source

Fund Lawyer Who Worked With Goldman Holds 1MDB Clues, U.S. Says

Posted on 28 July 2016 by VRS  |  Email |Print

She was the general counsel for Malaysia’s 1MDB investment fund. She was also 1MDB’s liaison to Goldman Sachs Group Inc., the global bank that helped it raise $6 billion.
After one of the big sales led by Goldman Sachs, $5 million of the cash raised for 1MDB traveled through shell companies and ended up in her Swiss bank account, the U.S. said in complaints filed last week………………………………………..Full Article: Source

Deloitte becomes third auditor in a row to quit scandal-hit 1MDB

Posted on 28 July 2016 by VRS  |  Email |Print

Deloitte has resigned as auditor of 1Malaysia Development Berhad, as the scandal surrounding the Malaysian state investment fund reverberates through the global financial system.
1MDB said late on Tuesday that its 2013 and 2014 audited financial statements should no longer be relied on following a US Department of Justice complaint last week alleging an international scheme to siphon more than $3.5bn from the fund………………………………………..Full Article: Source

Investment funds increase interest in Europe’s offshore wind farms-study

Posted on 28 July 2016 by VRS  |  Email |Print

Norway’s $863 billion sovereign wealth fund, the world’s biggest, for instance said in April it had sold shares in 52 coal-dependent companies as part of a policy to fight climate change.
Denmark’s PKA pension fund was the largest institutional investor in European offshore wind in the first half of the year, accounting for just over 11 percent of all investments in connected offshore wind capacity. Other institutional investors included infrastructure fund Global Infrastructure Partners and Denmark’s industrial workers’ pension fund Industriens Pension………………………………………..Full Article: Source

Sovereign wealth funds to become largest private equity allocator

Posted on 27 July 2016 by VRS  |  Email |Print

Sovereign wealth funds could overtake public pension funds as the most significant source of private equity capital in the next five years, David Rubenstein, co-founder and co-chief executive officer of Carlyle Group told attendees at the Private Equity Exclusive conference in Chicago on Monday.
U.S. public pension funds have historically been the biggest source of capital for private equity firms and today account for 30% to 35% of capital, Mr. Rubenstein. However, sovereign wealth fund assets are growing rapidly, expected to increase to $9 trillion by 2020 from $1 trillion in 2004, Mr. Rubenstein said, citing PricewaterhouseCoopers report on asset management in 2020………………………………………..Full Article: Source

Goldman Sachs’ 1MDB woes deepen on conflict of interest lawsuit

Posted on 27 July 2016 by VRS  |  Email |Print

Former client EON Capital claims fraudulent misrepresentations over Malaysian bank takeover. Goldman Sachs’ troubles stemming from the 1MDB scandal deepened on Tuesday, as the bank was sued for more than $500m by a shareholder of a former client claiming fraudulent misrepresentations and breaches of fiduciary duties.
The lawsuit, which was filed in New York State court, concerns advice that Goldman gave to a Malaysian bank, EON Capital, which was subject to a December 2009 bid by a domestic rival, Hong Leong Bank, to create the country’s fourth-biggest lender by assets………………………………………..Full Article: Source

Goldman is sued in U.S. over merger linked to Malaysia’s 1MDB

Posted on 27 July 2016 by VRS  |  Email |Print

Goldman Sachs Group Inc (GS) was sued on Tuesday by a major shareholder of a Malaysian bank it once advised, and which accused the Wall Street bank of fraudulently shortchanging it in a merger to curry favor with that country’s prime minister.
In a complaint filed with the New York State Supreme Court in Manhattan, Primus Pacific Partners said it was seeking $510 million of damages from Goldman and former Managing Director Tim Leissner, after the bank concealed its conflicts of interest with Prime Minister Najib Razak and Malaysia’s 1MDB sovereign wealth fund………………………………………..Full Article: Source

Goldman Accused of Betrayal to Curry Malaysian PM’s Favor

Posted on 27 July 2016 by VRS  |  Email |Print

Goldman Sachs Group Inc. has another Malaysia problem. The New York-based bank, already under scrutiny by regulators over its fundraising for the embattled 1Malaysia Development Bhd, is now accused in a lawsuit of selling out a client to curry favor with Prime Minister Najib Razak, who controlled the billion-dollar state fund.
Goldman and former managing director Tim Leissner allegedly betrayed their duties as financial adviser of EON Capital Bhd, which was taken over by Hong Leong Bank Bhd. for $1.7 billion in May 2011. Goldman used EON’s confidential information to help the bank buy EON on the cheap knowing that Najib’s brother served as a board member and another brother chaired the investment firm advising the bank, Primus Pacific Partners 1 LP said in the complaint………………………………………..Full Article: Source

Goldman Sachs abused trust in dealings with Libyan LIA, fund’s lawyer tells trial

Posted on 27 July 2016 by VRS  |  Email |Print

Goldman Sachs abused its position as a trusted adviser to Libya’s sovereign wealth fund, a lawyer for the fund argued on Tuesday, in a case that has subjected the bank’s dealings to a forensic degree of scrutiny.
In a trial at London’s High Court, the Libyan Investment Authority (LIA) is attempting to claw back $1.2 billion from the Wall Street giant in relation to nine disputed trades carried out in 2008, arguing that the trades were secured through “undue influence” and “unconscionable bargaining”………………………………………..Full Article: Source

Deloitte Resigns as 1MDB Auditor

Posted on 27 July 2016 by VRS  |  Email |Print

The Malaysian government investment fund says Deloitte Touche Tohmatsu resigned in February. The departure of a second auditor for a Malaysian government investment fund is putting focus on another global company that apparently failed to raise questions about what investigators are calling a large-scale fraud.
The fund, 1Malaysia Development Bhd. or 1MDB, said Tuesday that its auditor, Deloitte Touche Tohmatsu Ltd., resigned in February. An earlier dispute over the fund’s accounts in 2013 led to the firing of 1MDB’s previous auditor, KPMG, according to a Malaysian auditor general’s report last year………………………………………..Full Article: Source

Goldman Sachs abused trust in dealings with Libyan LIA, fund’s lawyer tells trial

Posted on 27 July 2016 by VRS  |  Email |Print

Goldman Sachs abused its position as a trusted adviser to Libya’s sovereign wealth fund, a lawyer for the fund argued on Tuesday, in a case that has subjected the bank’s dealings to a forensic degree of scrutiny.
In a trial at London’s High Court, the Libyan Investment Authority (LIA) is attempting to claw back US$1.2 billion from the Wall Street giant in relation to nine disputed trades carried out in 2008, arguing that the trades were secured through “undue influence” and “unconscionable bargaining”. The LIA argues the bank took advantage of its financial naivety by first gaining its trust, then encouraging it to make risky and ultimately worthless investments………………………………………..Full Article: Source

Australia’s AGL and state-owned funds establish renewables fund

Posted on 27 July 2016 by VRS  |  Email |Print

Australia’s second-largest energy retailer AGL Energy Ltd said on Wednesday it had set up the nation’s largest renewable energy fund, worth A$2-3 billion, with Australia’s sovereign wealth fund and a Queensland government-owned fund.
The Powering Australian Renewables Fund (PARF) plans to develop 1000MW of renewable energy and will acquire two existing AGL solar plants, which together produce 155MW, AGL said in a statement………………………………………..Full Article: Source

Azeri banks buy $50M from State Oil Fund at auction

Posted on 27 July 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $50 million to 27 banks through an auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said July 26.
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. SOFAZ was established in 1999 with assets of $271 million. As of July 1, 2016, SOFAZ’s assets increased by 4.6 percent and amounted to $35.1 billion as compared to $33.57 billion in early 2016………………………………………..Full Article: Source

SCMP CEO Robin Hu to join Temasek Holdings in December

Posted on 26 July 2016 by VRS  |  Email |Print

The South China Morning Post’s chief executive officer Robin Hu is stepping down from his post to join Singapore investment company Temasek Holdings. Mr Hu will join Temasek as the joint head of its sustainability and stewardship group - a new senior leadership role - with effect from Dec 1.
He will serve in the role alongside Ms Cheo Hock Kuan, who is currently head of the group. A Temasek spokesman said Mr Hu “brings a wealth of business experience to Temasek and we look forward to him joining us later this year”………………………………………..Full Article: Source

The DoJ 1MDB complaint analysed: how the named banks fare

Posted on 26 July 2016 by VRS  |  Email |Print

The US Department of Justice’s complaint seeking the recovery of assets related to the Malaysian sovereign wealth fund, 1MDB, is compelling reading. In a 136-page filing, a remarkable web of money transfers and illicit purchases is exposed.
Several banks are involved in it and three more have since been rebuked by the Monetary Authority of Singapore for failing to implement proper money laundering checks. So who comes out of it in the best and worst shape? Here is a quick guide:……………………………………….Full Article: Source

Singapore Vows Tougher Stance After 1MDB Dents Reputation

Posted on 26 July 2016 by VRS  |  Email |Print

Singapore’s regulatory chief vowed stronger action to address the reputational damage caused by anti-money laundering lapses at banks in the city linked to the troubled state investment fund 1Malaysia Development Bhd.
The shortcomings uncovered by the Monetary Authority of Singapore’s more than 15-month probes into fund flows linked to 1MDB are “simply unacceptable” and the city’s reputation has “taken a dent” as a result, the central bank’s Managing Director Ravi Menon said at a press briefing Monday………………………………………..Full Article: Source

Singapore to further boost money laundering controls amid 1MDB-linked probe

Posted on 26 July 2016 by VRS  |  Email |Print

Singapore’s central bank said it will enhance controls against money laundering and take swift action against banks following damaging findings that financial institutions in the city-state handled money flows linked to Malaysian state fund 1MDB.
“There is no doubt that the recent findings have made a dent in our reputation as a clean and trusted financial centre,” Ravi Menon, managing director of the Monetary Authority of Singapore, said at its annual news conference on Monday. “MAS is determined to fix the problem, working together with the industry.”……………………………………….Full Article: Source

Shearman & Sterling bank account linked to stolen Malaysian $1bn

Posted on 26 July 2016 by VRS  |  Email |Print

Shearman & Sterling has become unwittingly caught up in the middle of the largest ever asset seizure by the US Department of Justice’s anti-corruption unit. Funds transferred to the law firm’s bank account are alleged to have financed the “luxurious lifestyles” of several businessmen associated with the 1Malaysia Development Berhad (1MDB) sovereign wealth fund.
In civil filings to the United States District Court in Los Angeles, Shearman & Sterling is purported to have held millions of dollars in stolen funds in an Interest on Lawyer Account (IOLA) in the US………………………………………..Full Article: Source

Is 1MDB Malaysia’s defining moment?

Posted on 26 July 2016 by VRS  |  Email |Print

The US government has accused Malaysian Prime Minister Najib Abdul Razak of having received hundreds of millions of US dollars into his personal banking accounts from money stolen from 1MDB. Najib has not refuted the allegation.
The US government has also accused officials and associates of 1MDB of having stolen more than US$3.5 billion from 1MDB, to which Najib has also failed to deny. What is most devastating to the prime minister personally is that among the millions of such stolen money in his banking accounts is the famous US$681 million which he claimed to be a donation from the Saudi royal family………………………………………..Full Article: Source

Pua: 1MDB ’social welfare’ paid with taxpayers debt

Posted on 26 July 2016 by VRS  |  Email |Print

Prime Minister Najib Abdul Razak’s claim that 1MDB had contributed immensely to social welfare is a “farce” as it is funded by debt that is borne by taxpayers, Petaling Jaya Utara MP Tony Pua says. Najib yesterday praised 1MDB Foundation for donating RM10.4 million to sponsor 1,100 pilgrims to perform the Haj this year.
In fact, Pua said, 1MDB Foundation was set up to to mask the billions in losses that have resulted in an international anti-money laundering action. He said 1MDB has not seen a sen of profit since it was set up six years ago, and is using the “social welfare” programmes as a “public relations exercise”………………………………………..Full Article: Source

CIC’s 2015 returns upset by volatile market environment

Posted on 26 July 2016 by VRS  |  Email |Print

The China Investment Corporation (CIC) saw its returns plunging into the red last year amid the dismal global economic environment. In 2015, the net annual return of its overseas investments succumbed to a loss of 2.96%, against a net gain of 5.47% in 2014.
The CIC’s latest annual report states that global stocks, commodity prices and non-US dollar currencies tumbled, introducing significant risks and challenges to its global investments. Due to volatility in international financial markets and foreign-exchange losses triggered by an appreciating US dollar, the CIC’s overseas investments generated a dollar-denominated net return of -2.96% in 2015, and a net cumulative annualised return of 4.58% since its inception in 2007………………………………………..Full Article: Source

QIA Makes Good on US Investment Promise—Again

Posted on 26 July 2016 by VRS  |  Email |Print

In January 2015, visiting officials of the State of Qatar told the U.S. Chamber of Commerce that the country would invest $35 billion in the U.S. over the next five years, and it continues to do just that, with its latest investment being Qatari Investment Authority’s acquisition of the office tower at 12100 Wilshire Blvd. in Los Angeles.
QIA, the sovereign wealth fund of Qatar, and joint venture partner Douglas Emmett Inc. recently acquired the 365,000-square-foot property, located in the prestigious Brentwood submarket, from Hines for $225 million. It appears the transaction took place in a time warp. Hines U.S. Office Value Added Fund II also paid $225 million for 12100 Wilshire when it acquired the Class A property from RREEF Property Trust in 2007………………………………………..Full Article: Source

China’s top sovereign wealth fund quadruples in total assets in 8 years

Posted on 25 July 2016 by VRS  |  Email |Print

A report says China’s investment fund industry will continue expanding. The total assets of the top sovereign wealth fund in China have quadrupled in eight years since its founding, according to the 2015 annual report released by the China Investment Corporation.
The CIC’s total assets had grown to over $810 billion during the 8-year period, from $200 billion of registered capital in 2007. The company’s spokewoman Liu Fangyu says they have ramped up investment in assets that generate stable returns, and will further expand investment in this sector in this year………………………………………..Full Article: Source

Fund return hit by commodities, strong dollar

Posted on 25 July 2016 by VRS  |  Email |Print

China Investment Corporation announced on Friday that its overseas investments generated a net return of negative 2.96 percent in dollar terms in 2015, falling from a positive 5.47 percent return for 2014, due to volatilities in international financial markets and foreign exchange losses triggered by an appreciating dollar.
The $814 billion Chinese sovereign wealth fund posted a net cumulative annualized return of 4.58 percent since its establishment in September 2007, compared with 5.66 percent in 2014………………………………………..Full Article: Source

China’s sovereign wealth fund books negative return

Posted on 25 July 2016 by VRS  |  Email |Print

China’s sovereign-wealth fund reported a nearly 3 per cent drop in returns for 2015, citing the sluggish global recovery and volatile financial markets as reasons that led to a challenging year.
China Investment had a negative 2.96 per cent return on its investment overseas, according to a statement on its website Friday. That reversed a 5.47 per cent return in 2014. Since its inception in September 2007, the fund has had an annualised return rate of 4.58 per cent, CIC said………………………………………..Full Article: Source

China sovereign wealth fund CIC profit drops 17%

Posted on 25 July 2016 by VRS  |  Email |Print

China’s sovereign wealth fund China Investment Corp (CIC) reported a 17 per cent decline in net profit last year, its lowest profit since 2011, hit by negative returns on overseas investments and huge foreign exchange losses, it said on Friday.
Net profit was US$73.9 billion in 2015, down from US$89.1 billion a year earlier, the fund said in the annual report posted on its website. CIC’s return on overseas investments declined to a negative 2.96 per cent last year, compared with a positive 5.47 per cent return in 2014………………………………………..Full Article: Source

China Sovereign Fund Has Loss on Commodities, Negative Rates

Posted on 25 July 2016 by VRS  |  Email |Print

China’s $813.8 billion sovereign wealth fund posted its first loss on overseas investments in four years last year as commodity prices sunk, while stock and bond returns were damped by negative interest rates and a strong U.S. dollar.
China Investment Corp. had a loss of 2.96 percent in the year ended December, compared with a 5.47 percent gain a year earlier, according to the Beijing-based company’s 2015 annual report released Friday. Net income at the fund, which holds government stakes in China’s biggest banks, fell 17 percent to $73.9 billion, the report showed………………………………………..Full Article: Source

China sovereign fund CIC records first loss on overseas investments in 4 years

Posted on 25 July 2016 by VRS  |  Email |Print

China’s $813.8 billion sovereign wealth fund posted its first loss on overseas investments in four years last year as commodity prices sunk, while stock and bond returns were damped by negative interest rates and a strong U.S. dollar.
China Investment Corp. had a loss of 2.96 percent in the year ended December, compared with a 5.47 percent gain a year earlier, according to the Beijing-based company’s 2015 annual report released Friday. Net income at the fund, which holds government stakes in China’s biggest banks, fell 17 percent to $73.9 billion, the report showed………………………………………..Full Article: Source

1MDB’s German Connection

Posted on 25 July 2016 by VRS  |  Email |Print

Two German banks are named by the U.S. Justice Department in connection to Malaysian sovereign wealth fund 1MDB, and Volkswagen halts sales of most of its models in South Korea as it is investigated for falsifying emissions and noise data.
In the fallout to Asia’s version of the Panama Papers scandal, the U.S. Justice Department named two German banks in its investigation into money laundering from Malaysian sovereign wealth fund 1 MDB. Deutsche Bank allegedly transferred $700 million, and investigators found $55 million in fund money sitting in BHF, a Frankfurt bank. Neither bank is accused of wrongdoing, but any connection to Malaysian officials who used a public trust as private bank accounts is one too many………………………………………..Full Article: Source

Who are 1MDB Officers 1, 2, 3 and the others in US list?

Posted on 25 July 2016 by VRS  |  Email |Print

KiniGuide In the US Department of Justice’s recent filings related to the 1MDB scandal, among the relevant individuals named in the suit are ‘1MDB Officer 1’, ‘1MDB Officer 2’, and ‘1MDB Officer 3’. Like the much-reported ‘Malaysian Official 1’ in the document, the names of these other 1MDB officers are also concealed throughout the document.
And yet, there are tantalising clues throughout the 136 pages of the DOJ document. Thus far, little attention has been given to the identities of these 1MDB officers. In this instalment of KiniGuide, we look back at the history of the 1MDB scandal in an attempt to shed some light on this mystery, as well as on several others who have not been identified by name in the court filings………………………………………..Full Article: Source

Swiss seize Monet, van Gogh works amid U.S. probe of Malaysian fund

Posted on 25 July 2016 by VRS  |  Email |Print

Malaysian Prime Minister Najib Razak said on Thursday judgment should be withheld until all the facts are known after the U.S. government filed lawsuits seeking to seize $1-billion (U.S.) in assets bought with money stolen from a state fund he oversaw.
The U.S. Justice Department lawsuits filed in a federal court on Wednesday did not name Najib, instead referring to “Malaysian Official 1.” Some of the allegations against this official were the same as those in a Malaysian investigation into a $681-million transfer to the premier’s personal bank account………………………………………..Full Article: Source

Abu Dhabi Investment Authority’s real rate of return stays steady

Posted on 25 July 2016 by VRS  |  Email |Print

Despite volatile conditions that saw equity markets end 2015 little changed from where they began, the Abu Dhabi Investment Authority, or Adia, recorded a creditable performance from an overall portfolio perspective, the world’s leading sovereign wealth fund said.
In its 2015 annual review, Adia said its 20-year annualised rates of return fell to 6.5 per cent in 2015 from 7.4 per cent the year before. The fund’s 30-year rate of return slipped to 7.5 per cent from 8.4 per cent. “This was primarily as a result of strong returns from the mid-1980s and 1990s falling out of the rolling averages over the periods in question.”……………………………………….Full Article: Source

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