Mon, Aug 8, 2022
A A A
Welcome mteam
RSS
Sovereign Wealth Funds Briefing 03.Nov 2014

Posted on 03 November 2014 by VRS |  Email |Print

Once a year, the man running the world’s biggest sovereign wealth fund travels around China for a week. Though assets from that country only make up about 1.5 percent of the $860 billion Norwegian wealth fund’s portfolio, Yngve Slyngstad, its chief executive officer, says almost all investment decisions are affected by what happens in China.
Understanding what’s poised to become the world’s largest economy is crucial for Slyngstad as he manages a fund that Norway predicts will reach $1 trillion in less than three years. He’ll be in China this month, visiting Beijing and other cities………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

Precedents for outbound financial investment from China are few, but include China’s sovereign wealth funds. The China Investment Corporation (CIC) has been most visible in this area, investing in a number of foreign assets. Controlled by the Ministry of Finance, CIC is registered as an independent non-bank state-owned enterprise, unlike other sovereign wealth funds.
Although a recent audit revealed losses due to investment in firms such as Blackstone and Morgan Stanley, CIC has learned from its experience and continues to obtain returns abroad. An aggressive strategy implemented in the early years of its operation has been modified to a more moderate strategy based on investment in equities and other assets rather than high-yield assets purchased via absolute return vehicles such as hedge funds………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

GIC, the Republic’s sovereign wealth fund, is making its first real estate investment in New Zealand, with a joint venture in Auckland initially worth NZ$313 million (S$313 million). GIC will partner with Goodman Property Trust (GMT) to co-invest in Auckland’s Viaduct Quarter. The joint venture, which includes GMT’s existing viaduct property interests, has a mandate to grow to NZ$500 million over time, the two entities said in a joint media release on Monday (Nov 3).
The partnership will initially own a portfolio of assets valued at NZ$313 million, with GIC acquiring a 49 per cent interest in these assets and GMT retaining a 51 per cent share. All future investments will be undertaken on the same basis, according to the media release………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

The Guardians of New Zealand Superannuation, the manager of the NZ superannuation Fund, said it had terminated AMP Capital’s New Zealand active equities mandate, effective from last Thursday.
The value of the mandate was NZ$257.5 million. AMP Capital was appointed to the mandate in 2003. “The decision does not affect the Fund’s 5 per cent allocation to New Zealand equities,” the Guardians of NZ said in a statement. Superfund spokeswoman, Catherine Etheredge, declined to comment on the reasons for the move………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

Malaysian stock market data has shown that Khazanah Nasional has started its divestment in Westports, seliing 161.52m shares in an off-market transaction.
The shares, which represented a 4.74 % stake, were transacted at an average price of MYR2.90 ($0.88) and were carried out via a book building exercise. Khazanah has previously announced it would divest stakes in non-core assets………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

Putrajaya must clarify questions surrounding fees paid for 1 Malaysia Development Bhd’s (1MDB) fundraising after the sovereign wealth fund and investment banker Goldman Sachs gave conflicting explanations, a DAP lawmaker said.
Petaling Jaya Utara MP Tony Pua said this was necessary given the billion-ringgit scale involving the allegations on the fees paid, which he previously said was a magnitude more than those usually charged. “The answers provided by Goldman Sachs and 1MDB are in direct conflict with one another. ……………………………………….Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

Middle East sovereign investors who account for $1.4 trillion of assets managed globally are allocating significantly high portion of their assets to home markets, but increasingly these funds are expanding their allocation to emerging markets and alternate asset classes according Invesco Asset Management. The findings are from the Invesco Asset Management Study. The Middle East study, the fifth annual survey of its kind, was based on 52 interviews with employees at sovereign wealth funds.
Home market allocations by Middle East sovereign investors are about 42 per cent on average. Sovereign investors are broadly categorised into 4 categories based on their objectives such as investment, development, liquidity and liability. Overall the Middle East is weighted to development and investment sovereigns compared to the global average. However, in terms of assets, the Middle East is strongly weighted to investment sovereigns………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

Invesco compared the results of the Middle East study with research on global sovereign funds and found a marked difference in the behaviour of sovereign wealth funds in different parts of the world. Whereas Asian sovereign funds tended to be focused almost exclusively on returns, most of the Middle East funds had explicit or implicit development goals, such as supporting the domestic private sector or building skills in the job market.
The study also found that Middle East sovereign funds were able to pay their staff more than funds in other parts of the world. Thirty-eight per cent of Middle East funds said they were able to match private sector salaries compared to just 15 per cent of global sovereigns………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

Bahraini sovereign fund Mumtalakat has set up separate bond and sukuk issuance programmes in the Irish stock exchange to raise as much as $1 billion, to help refinance maturing debt next year.
One of the smaller sovereign wealth funds in the Gulf region, Mumtalakat holds stakes in several firms in the Kingdom’s non-oil sector, including Bahrain Telecommunications Co and Aluminium Bahrain. The multi-currency programmes have been assigned a BBB rating by Fitch ratings, which said proceeds would be used predominantly to refinance upcoming maturities………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

Regular readers of this blog will know of the travails of the Libyan Investment Authority, the sovereign wealth fund entrusted with $60-65 billion of the country’s oil wealth. Today, it represents something of a split personality. On one hand, it is bold and dynamic, suing Goldman Sachs and SG for billions of dollars over disastrous investments that were sold to it prior to the financial crisis.
On the other, it is a rudderless mess, incapable of maintaining leadership because nobody appears to trust anyone else, or their background. On Wednesday night came two new resolutions from the board of directors of the LIA, one (No 7 for 2014) removing Abdelrahman Benyezza as chairman, and the other (No 8) appointing Hassan Ahmed Bouhadi as his replacement. And so continues an apparently endless cycle………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

Kuwait’s giant sovereign wealth fund, whose holdings include the mayor of London’s headquarters, has handed a former Goldman Sachs partner $1.5 billion of cornerstone capital for his new property investment firm.
With appetite for real estate investment strong and prime commercial property in London in particular demand, Ed Siskind has launched a UK limited-liability partnership called Cale Street Partners………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

Transparency in the hiring process for the top job at the SWF was a key factor in persuading Orji to consider the position. “I was skeptical – I didn’t want to interview at first. To be honest,” he says, “ I didn’t expect to be hired because I didn’t have any connections. But the process was transparent so that didn’t matter.”
Transparency in the hiring process for the top job at the SWF was a key factor in persuading Orji to consider the position. “I was skeptical – I didn’t want to interview at first. To be honest,” he says, “ I didn’t expect to be hired because I didn’t have any connections. But the process was transparent so that didn’t matter.” Although the fund came into existence two years ago, Orji says it has been operational in earnest as a fund only since September 2013. Most of the first year was taken up with establishing the teams and structures that would enable the fund to operate………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

Norway’s central bank said Friday it would continue to buy Norwegian kroner and sell foreign exchange in the market in November on behalf of the country’s sovereign-wealth fund. As in October, Norges Bank said it would sell the equivalent of 250 million Norwegian kroner ($37.2 million) a day in foreign exchange over the coming month and use the kroner it receives to cover public spending.
Norway receives income from its lucrative oil industry in both kroner and foreign currency. It receives foreign currency income from its direct ownership of stakes in oil companies and Norwegian kroner mainly in taxes from oil companies operating in Norway………………………………………..Full Article: Source

Posted on 03 November 2014 by VRS |  Email |Print

Norway might have built up the world’s largest sovereign wealth fund, but it cannot afford to be complacent,the country’s finance minister told CNBC. Market volatility, falling oil prices and a slowdown in global economic growth are all factors that could put the country’s economic success at risk, Finance Minister Siv Jensen told CNBC on Friday.
Norway has amassed a vast amount of money due to its oil reserves. In 1990, it set up a sovereign wealth fund that has become the largest in the world, with a market value of $860 billion, according to Norges Bank which manages the fund…………………………………………Full Article: Source

See more articles in the archive

banner
banner
August 2022
M T W T F S S
« Nov    
1234567
891011121314
15161718192021
22232425262728
293031