Sovereign Wealth Funds

GIC’s real estate safe haven is hard to copy

26 Jul 2023

Singapore’s $690 bln sovereign fund nearly doubled its real estate allocations to 13% in three years. Its student homes to logistics portfolio provides a timely inflation hedge for one of the most active investors in its class. Peers trying to catch up will overpay.

Temasek is betting on all its stars aligning

12 Jul 2023

Singapore’s state investor had a tricky year with its net value dropping 5.2% to $285 bln and the FTX debacle. Half its portfolio is in unlisted assets, so it’s relying on public markets picking up, Southeast Asia thriving and China recovering. Most of that is out of its hands.

ADNOC’s German chemical punt looks a stretch

20 Jun 2023

The Abu Dhabi energy giant is eying Covestro, valuing it at 14 bln euros including debt. The energy crisis has hit the German group’s valuation, and other UAE firms have snapped up European bargains elsewhere. But ADNOC would require synergies to make a deal stack up financially.

Golf’s Saudi surrender is par for the course

7 Jun 2023

The sport’s main US and European tours are linking their commercial arms with Riyadh-run LIV Golf. Saudi gets the smaller stake despite being the only partner to put in cash. But as it has shown by splashing out on other sports, the chance to polish its image is more valuable.

Jho Low could rip scabs off 1MDB wounds

21 Apr 2023

The man at the centre of the sovereign fund scandal could be returned to Malaysia via a deal with China, a respected journalist says. It’s the final piece of the puzzle but given what Low knows, it would be a moment of public cheer and private fear for politicians and bankers.

Singapore looks boxed in with Li Ka-shing

9 Jan 2023

Co-investing with Hong Kong’s top tycoon once seemed like a no-brainer but sovereign fund Temasek may sell its 20% of CK Hutchison’s ports business. It owns a hefty slug of the company’s retail unit too. Geopolitics complicate any exit from these bold private investments.

Sovereign debt greens yet net-zero pledges darken

13 Oct 2022

Saudi Arabia’s wealth fund is the latest public body to issue securities to fund renewable assets. Strong buyer demand and the chance to flaunt action on climate change explain the boom. Yet national decarbonisation targets remain weak, and green bonds do little to improve them.

There’s method to Saudi’s $38 bln gaming madness

11 Oct 2022

Riyadh says it will splash out to become “the ultimate global hub” for gaming by 2030. Saudi and the freewheeling sector are peculiar bedfellows. But with a petrodollar windfall and falling valuations, the kingdom has a good opportunity to make its unlikely vision happen.

Petrodollar rush may disappoint Western financiers

20 Sep 2022

In prior energy booms, like in the 1970s, the proceeds wound up in U.S. banks and bonds. OPEC’s $907 bln haul in 2022 is smaller, and winners like Saudi Arabia need cash to pivot away from oil. Bankers may not see a developed world equities and debt bonanza on the same scale.

China’s rental push could grease property slide

27 Jul 2022

Officials struggling to complete $300 bln of stalled apartment projects are mulling flipping them into leased units. More inventory is good in the long run but a falling housing market needs buyers more than renters. Depressing already low yields will deter investment.

Aston Martin cash call leaves a sputtering engine

15 Jul 2022

The luxury-car maker may raise 653 mln pounds from its shareholders and Saudi’s state fund. That would avert an imminent crash, and the terms are less painful than investors feared. But the group will still be laden with heavy borrowings amid a worrying economic backdrop.

SoftBank’s Fortress sale calls for an interloper

13 Jul 2022

The Japanese tech conglomerate may sell the asset manager to Abu Dhabi’s Mubadala wealth fund. The mooted price tag of over $1 bln looks embarrassingly cheap. SoftBank’s recent investing mishaps, like Klarna, should make boss Masayoshi Son open to a higher offer.

India’s energy-storage fix has virtue of speed

18 May 2022

As the West obsesses over building the perfect battery, Singapore- and Abu Dhabi-backed Greenko is launching the largest long-lasting renewable power-storage project. It’s a low-tech leap towards a greener energy system. Big customers like ArcelorMittal are lined up too.

Ex-Goldman conviction is partial justice for 1MDB

8 Apr 2022

A U.S. jury found Roger Ng guilty of corruption linked to the Malaysian fund. His ex-boss who helped organize the scheme may get a lesser penalty for cooperating with prosecutors; the Wall Street firm got off with a $5 bln fine. It’s an imperfect deterrent for future miscreants.

Russian economic collapse will be hard to avoid

28 Feb 2022

The central bank more than doubled its main policy rate to 20% to support the plunging rouble. It won’t be enough. But further hikes or capital controls would compound pain in an economy where Western sanctions are spurring a run on banks. Moscow has few viable policy options.

Turkish mobile spat exposes state fund weakness

10 Jan 2022

Billionaire Mikhail Fridman wants to overhaul Turkcell’s board to boost the $3 bln group’s valuation. Turkey’s state wealth fund, which appoints most of the directors, looks an obstacle. With stakes in other ailing companies like Turkish Airlines, it’s proving a poor custodian.

Switzerland has rich-world foreign reserve problem

15 Dec 2021

After years of intervening to curb franc strength, the central bank has amassed $1 trillion in foreign currency investments. A group of academics suggests converting this into a sovereign wealth fund but that would bring its own worries. Wisely investing so much money isn’t easy.

Nordic drug buyout flop highlights hidden gem

3 Dec 2021

The $8 bln takeover of Swedish Orphan Biovitrum failed after buyers could not secure 90% of the shares. The market reaction suggests the deal is dead. But investor AstraZeneca’s role in the failed bid and its interest in a respiratory disease treatment provides some comfort.

Capital Calls: Moderna’s $40 bln shot gain

29 Nov 2021

Concise views on global finance: News of a spreading Covid-19 variant added $40 bln to the biotech’s market value. Investors are pricing in about 3 billion extra jabs. That’s rosy given competition and uncertainty.

Capital Calls: Google, Twitter, Swedish grocer

10 Nov 2021

Concise views on global finance: The search giant’s defeat in appealing a $2.8 bln EU fine is tolerable if American judges don’t follow; the social media network hopes to charge hardcore U.S. users a monthly fee; ICA Gruppen’s top shareholder takes the $12 bln retailer private.