Sovereign Wealth Funds

GIC’s humbling retreat from UBS makes sense

16 May 2017

The Singaporean wealth fund is losing money by selling a chunk of the bank it helped rescue nearly a decade ago. Even long-term investors have limits to their patience. A bounce in global financial stocks could tempt others such as Temasek to sift the wheat from the chaff.

French banks’ foreign strength cuts both ways

4 May 2017

Strong first-quarter growth in BNP Paribas and SocGen’s foreign markets offset weaker showings at home. Still, SocGen’s 963 mln euro Libyan settlement shows how overseas adventures can go awry. And if Sunday’s election delivers a surprise, French banks face redenomination risk.

Malaysia throws cheque book at 1MDB problem

27 Apr 2017

A deal with Abu Dhabi puts Malaysia on the hook for $3.5 bln of the disgraced fund's debt and leaves a dispute over a further $3.5 bln unresolved. That is a costly attempt to patch up relations between the states and avoid potential embarrassment before an election.

Sterling provides spark for Abu Dhabi gas deal

17 Oct 2016

The sovereign fund is paying a higher valuation for a Scottish gas network stake than a comparable deal by Asian tycoon Li Ka-shing. Stable returns attract cash-rich investors. But a bigger boost might come from an eventual reversal of the pound’s post-Brexit decline.

Qatar’s investment strategy due a strategic pivot

22 Aug 2016

The gas-rich sheikhdom's big investments - banks, real estate and car makers - have not all worked out. Qatar should instead buy stakes in the end-users of its gas. With commodity prices low, defensive holdings in sectors you know make more sense than bets in ones you don't.

UK fracking revolution calls for national thinking

12 Aug 2016

Handouts to disgruntled communities and tax breaks are unlikely to make shale gas extraction more appealing for investors, given the shaky outlook for prices. A better strategy could be to create a national drilling titan in the mould of Norway's Statoil to get Britain fracking.

Abu Dhabi SWF yet to get the memo on transparency

2 Aug 2016

The annual review of the emirate's ADIA fund contains few facts about performance, or the scale of its assets. The sheikhdom's secrecy is not unusual, and fine when times are good. But with oil prices low, markets and bankers alike have a case for greater transparency.