Sun, May 22, 2022
A A A
Welcome mteam
RSS
Sovereign Wealth Funds Briefing 12.Oct 2015

Posted on 12 October 2015 by VRS |  Email |Print

From Oslo to Doha, Riyadh to Moscow, governments that rode crude’s historic rise to unprecedented wealth are now being forced to start repatriating their rainy- day funds just to make ends meet. The halving of oil to less than $50 a barrel has the potential to alter one of the most powerful economic and political forces of the past half century: the rise of the petrostate.
These countries led a surge in state investments in the US and Europe that now totals about $7.3 trillion globally, according to the Sovereign Wealth Fund Institute. During the last boom, the oil countries flaunted their wealth abroad by buying stakes in iconic companies such as Barclays as well as trophy assets including Manhattan hotels, European soccer clubs and London luxury homes, often in the face of opposition from the local public………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

The job of Norway’s $820 billion sovereign wealth fund, the largest of those that confess up to the amount of assets in their care, is to prepare for the day when the oil money stops rolling in. Such a day may arrive sooner than expected as, while the country still has ample reserves of crude, the collapse in its price has slowed the cash to a trickle, a mere $2 billion in the first half of this year.
Adjustments to Norway’s holdings, which include a noticeable percentage of the world’s stock markets, will have to come from reinvesting dividends and coupons, its manager said. Norway does not have to sell assets, yet. Saudi Arabia has redeemed tens of billions of dollars from fund managers………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

For years, Norway has used revenues from its oil fields to pour monies into its sovereign wealth fund. Now valued at well over $800 billion, the sovereign fund is the globe’s largest.
Since the early 1970s, when oil was first pumped from Norway’s seas, oil and gas extraction has been a boon to the country at large and driven up per capita income. At present, nearly a quarter of Norway’s GDP is tied to the energy sector. And, with the long-term spike in the price of oil from the 1990s until recent years, the treasury’s coffers were never short………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

Norway’s sovereign wealth fund has opened an office in Tokyo as it continues to expand its real estate portfolio. The three-person office was opened in the Japanese capital yesterday (October 8) by the $850 billion Norway Government Pension Fund—Global. It is the fund’s third office in Asia, after Singapore and Shanghai, China.
Karsten Kallevig, CIO for real estate at Norges Bank Investment Management, which runs the fund, said the fund had selected Tokyo and Singapore as the two main locations for its expansion in Asia. “Tokyo is a market that fits well with the rest of our portfolio,” he added………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

The latest outpost of Matteo Renzi’s revolution is a smart conference room in Milan where two of Italy’s best-known bankers sit shoulder to shoulder. These are the new headquarters of the Cassa Depositi e Prestiti, the country’s €410bn sovereign wealth fund. The 40-year-old Italian prime minister is hoping to blow the dust off the 165-year-old CDP by bringing in Claudio Costamagna, former chairman of Goldman Sachs in Europe, and Fabio Gallia, who was chief executive of BNP Paribas in Italy, and giving them a free hand to spur investment.
“The mandate we’ve got is to do things that are in the context of creating and sustaining the growth of the economy,” says Mr Costamagna, 59, describing his arrival in August — and that of 52-year old Mr Gallia — as “an accelerator”………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

Fitch Ratings international rating agency has affirmed Kazakhstan-based JSC Sovereign Wealth Fund Samruk-Kazyna’s (SK) Long-term foreign currency Issuer Default Rating (IDR) at ‘BBB+’, Long-term local currency IDR at ‘A-’, National Long-term rating at ‘AAA(kaz)’ and Short-term foreign currency IDR at ‘F2′, the message from the rating agency said Oct.9.
The outlooks on the long-term ratings are Stable. Fitch has also affirmed SK’s senior unsecured domestic bonds at Long-term local currency ‘A-’ and at National Long-term ‘AAA(kaz)’. “The affirmation of the IDRs and senior debt ratings reflects SK’s unchanged strategic importance, and its special legal status as a sovereign wealth fund and the state’s key asset management company, 100 percent owned by Kazakhstan (BBB+/A-/Stable),” said the message………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

Kuwait’s sovereign wealth fund, one of the world’s largest, is considering selling assets to cover a state budget deficit caused by low oil prices, the country’s Al Anba newspaper reported on Sunday, quoting unnamed sources. The Kuwait Investment Authority (KIA), which is estimated to have more than $500 billion of assets, is studying whether to liquidate assets that generate annual returns of below 9 percent, the newspaper said.
The KIA’s money is invested across the world, from the United States to Europe to China, in various asset classes including bonds, equities and real estate. The newspaper did not specify which asset classes might be sold………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

The tussle for control of Libya’s $67 billion (Dh245.89 billion) wealth fund, the Libyan Investment Authority (LIA), between two executives both claiming to the legitimate chairman, is escalating in a war of words. AbdulMagid Breish and Hassan Ahmad Bouhadi have been exchanging words through the media and lawyers this year as they both state their case to be the recognised chairman.
“We have unfortunately a rogue … board claiming to be the rightful board but they don’t control anything,” Breish said in an interview in a Dubai hotel on Saturday. Breish was appointed Chairman and Chief Executive of the LIA in 2013 but latter stepped aside when he was investigated under Libya’s Political Isolation law that prevented associates of former dictator Muammar Gaddafi from holding public office………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

Muammar Gaddafi may have had many shortcomings, but grant him this: there was only one of him. When the Libyan Investment Authority was set up in 2006 to manage the country’s new oil wealth, it faced plenty of challenges, not least the idiosyncratic wishes of the Brotherly Leader and Guide of the Revolution of Libya as to where the money should be invested.
But at least there was no doubt about who was ultimately in charge. By contrast, today uncertainty seems to define the LIA, with two competing leaders each maintaining that they run the fund. Libya’s new unity government, announced on October 9, has put the leadership dispute into sharp focus………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

The sovereign wealth fund of Qatar has joined investors expressing an interest in buying a minority stake in Glencore Plc’s agriculture business, according to three people familiar with the conversations.
The talks are preliminary and a sale would take as long as six months, said the same people, who asked not to be identified because the matter is confidential. Qatar Holding LLC, the direct investment arm of the Gulf state’s sovereign wealth fund, is already the largest investor in the Swiss-based commodities trader-cum-miner, with an 8.9 per cent stake, people said earlier this week………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

Qatar was the largest source of Middle East’s capital outflow into the global real estate sector last year. Driven by its Sovereign Wealth Fund (SWF), Qatar invested $4.9bn in international commercial real estate sector. Saudi Arabia has emerged as a significant new source of capital. From almost nothing reported in 2013, Saudi Arabian investors spent $2.3bn on international commercial real estate in 2014, according to the latest research from global property advisor CBRE Group.
London remained the main beneficiary of the Middle East’s capital outflow in the real estate sector last year. But while retaining the top spot, London was no longer as dominant, with a 32 percent share of all Middle East outbound investments in 2014, compared with 45 percent in 2013………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

Angela Rodell was named executive director/CEO of the Alaska Permanent Fund Corp., Juneau, pending successful contract negotiations, said a spokeswoman for the $52 billion sovereign wealth fund on Friday.Michael Burns retired as executive director/CEO on June 1. Valerie Mertz, chief financial officer, filled in while the search for a permanent replacement took place.
Ms. Rodell is a former commissioner of the Alaska Department of Revenue and was a member of the permanent fund’s board of trustees. Alaska Permanent also announced on Thursday that Jim Parise was named acting chief investment officer, the spokeswoman said………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

The mighty All Blacks have won legendary status among rugby-loving nations, but a lesser-known New Zealand team is also quietly building its reputation among its peers. That team is NZ Super, the investment group created in 2001 to ensure pensions promises are met for New Zealand’s ageing population.
NZ Super has become the world’s fastest-growing sovereign wealth fund under the leadership of Adrian Orr, a former deputy governor of New Zealand’s central bank, who arrived in early 2007 as the global financial crisis was unfolding. Mr Orr embarked on a radical re-engineering of the fund’s investment strategy, ditching conventional asset allocation processes in favour of more risk tolerance………………………………………..Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

With the growth of sovereign wealth fund assets slowing down due to low commodity prices, sovereign investors have been re-adjusting their portfolio strategies. For example, the Abu Dhabi Investment Authority (ADIA) have augmented hiring in the areas of institutional real estate. While others, like the Saudi Arabian Monetary Agency (SAMA), has terminated mandates to enhance portfolio liquidity.
In this new era of low-oil prices, sovereign funds are expanding investment capabilities and hiring specialists to achieve the return expectations of their owners. As many commodity-based sovereign wealth funds encounter funding pressures and capital withdrawals, a group of sovereign investors are looking to sell-off assets. Sovereign Funds and Canadian Pensions Pivot to Indian Institutional Real Estate……………………………………….Full Article: Source

Posted on 12 October 2015 by VRS |  Email |Print

As the International Monetary Fund (IMF) has regarded low commodity prices as one of the world’s major economic concerns, finance ministers believe fiscal prudence and sovereign wealth funds are the best ways to deal with the problem.
The world’s top emerging economies largely rely on their massive commodity exports, such as Argentine soybeans, Angolan oil, Brazilian iron ore, Chilean copper, South African gold, and Indonesian nickel. However, commodity prices may well remain low with the slow global economic recovery, World Bank President Jim Yong Kim said Friday………………………………………..Full Article: Source

See more articles in the archive

banner
banner
May 2022
M T W T F S S
« Nov    
 1
2345678
9101112131415
16171819202122
23242526272829
3031