Doubts fuel investor guessing game

A high-stakes guessing game has broken out on Wall Street: what might investors have to sell if the US government loses its triple A credit rating for the first time?
Even with a tentative deal to raise the debt ceiling agreed late on Sunday, the Washington acrimony required to get there has left few analysts confident that US Congress can agree sufficient deficit reduction measures to placate Standard & Poor’s, the rating agency most negative in its outlook for US government finances.

Norway Oil Fund Invests In Further London Properties

Norway's sovereign wealth fund has taken another step towards its target of investing 5% of its assets in property by buying a stake in two central London addresses for GBP7 million.

Norway's Pension Fund Global, sometimes referred to as the oil fund, bought a 25% stake in 4 Conduit Street and 1 Maddox Street, alongside a 75% investment by the U.K. Crown Estate, with the total investment by both parties valued at GBP28 million, according to a statement from the Crown Estate Sunday.

CIC Risk Plays Increase Returns

BEIJING—China Investment Corp. said it earned an 11.7% return on its overseas portfolio last year, boosting its assets to $409.6 billion, as the Chinese sovereign-wealth fund deployed almost all of its capital and accelerated investments into higher-risk assets.

CIC's annual report, published Tuesday, highlighted the fund's increasingly aggressive allocation, with more of the portfolio in so-called alternative investments, which include private equity, real estate and infrastructure.

China may help fund Greek bond buybacks-finmin source

ATHENS, July 29 (Reuters) - China could provide loans to Greece to fund government bond buybacks in the secondary market to help cut the country's debt burden, a Greek finance ministry official said on Friday, but analysts were sceptical.

While talks with private creditors on a debt swap continue for a second day, analysts said more money to fund bond buybacks could help Greece shrink its debt mountain but questioned whether China would lend more cheaply than the euro zone.

China’s Sovereign Wealth Fund Earns 11.7% Return In 2010

China’s $400 billion sovereign wealth fund garnered 11.7% in 2010 on its overseas investments, which included a 21% allocation to alternative investments.

The Chinese Investment Corporation’s total assets reached $409.58 billion at the end of 2010, meaning it’s doubled since its inception in 2007 and even increased significantly from 2009, when it was worth $332.39 billion.

Soros Goes Private as Golden Era of Rock Star Traders Concludes

Money can be dull. There are only so many denominations, and only so many ways to make it. What’s interesting are the people who risk it, and over the past four decades no one has made more of a spectacle of risk than George Soros, whose Quantum fund famously bet $10 billion that the Bank of England would be forced to devalue the pound. Soros earned $1 billion on that trade and incalculable legend points.

Now, Soros is going to stop risking other people’s money. By the end of this year, his Soros Fund Management LLC will have no outside customers for the first time in 42 years. The shift concludes a process that began in 2000, when Soros stopped accepting new investments, Bloomberg Businessweek reports in its Aug. 1 issue.

Irish Sovereign Pension Fund Drops To EUR5.27B On Bailout Cost

DUBLIN (Dow Jones)--Ireland said Wednesday that assets in its National Pensions Reserve Fund, or NPRF--a mini sovereign wealth fund--have been reduced to EUR5.27 billion after the government was forced to sell down its market investments in its "discretionary fund" to help rescue the country's two major banks.

The NPRF said it now holds EUR15.5 billion worth of assets transferred into its so-called "directed fund" that has been earmarked to support Bank of Ireland PLC and Allied Irish Banks PLC, major lenders that required billions of euros of government aid amid the country's debt crisis. The directed fund assets include shares in the two banks and other rescue monies.

Singapore's GIC Investment Climate Still 'Challenging'

July 26 (Bloomberg) -- The Government of Singapore Investment Corp., the city's sovereign wealth fund, said the investment environment remains "challenging" as developed countries recover and emerging markets pose inflation risks.

GIC, manager of more than $100 billion of Singapore's reserves, said in its annual report today that it boosted investments in emerging economies to tap their potentially higher returns and improved macroeconomic fundamentals. It expanded the number of countries it invests in as well as its range of investment tools, it said.

Analysis: Bulging cash balances set up funds for deals

Global sovereign wealth funds are set to hasten investing the billions of dollars of cash holdings they have built up in a rebound from the 2008 financial crisis that has lifted their combined assets to a record.

But unlike three years ago, when they rode to the rescue of Wall Street titans such as Merrill Lynch and Citigroup, the investments this time around are seen mostly of a smaller nature and into the faster-growing sectors such as resources and infrastructure.

Berkshire Partners raises $4.5 billion in eighth fund

Boston-based investment firm Berkshire Partners LLC, which has dabbled occasionally in being a tech investor, has closed on its eighth private equity fund, logically called Berkshire Fund VIII, at a value of $4.5 billion.

According to a press release, Fund VIII’s capital came mainly from institutional investors in previous Berkshire funds, including endowments, foundations, pension funds, insurance companies and sovereign wealth funds.

India eyeing sovereign wealth fund, energy deals but RBI objects

NEW DELHI: India is considering setting up a sovereign wealth fund with more than $10 billion in assets to buy energy assets abroad to feed growing domestic demand, senior government officials told Reuters on Wednesday.

But the sources said the plan to create the country's first sovereign wealth fund (SWF) was still at an early stage amid concerns from the central bank about setting aside part of the country's foreign exchange reserves for the scheme.

S.Korea wealth fund aims to grow alternative investments

(Reuters) - South Korea's $46 billion sovereign wealth fund aims to expand alternative investments in areas like commodities and private equity, its new chief executive said on Tuesday, pledging to strengthen ties with foreign private equity and pension funds.

Korea Investment Corporation (KIC) CEO Choi Chong-suk said in his inauguration speech that the fund would continue to actively invest overseas and could join deals with other global sovereign wealth funds.

China's sovereign wealth fund names new CIO

Li Keping, vice-chairman of China's national pension fund, has been named executive director and chief investment officer of the country's $300 billion sovereign wealth fund which directs investments from China's huge stockpile of foreign exchange reserves.

Li replaces Gao Xiqing, who remains as president, a statement on the website of China Investment Corp (CIC) said. Sources told Reuters on June 17 of the impending personnel change.

ECB Is Heading for Some Hefty Icebergs

The Argentine government and the euro-zone policy makers have much in common: both have pistols at the ready, and aimed at unwanted messengers.

Argentina's government says the country's inflation rate is 9.7%. Most independent economists put the figure at 20%. So the government has filed criminal charges against one consulting firm, MyS for "publishing false information about inflation data," part of a coordinated campaign against independent economists.

China Wants to Buy Shares of Facebook

Last week, the story “leaked out” that a China sovereign wealth fund had expressed interest in purchasing a significant stake in Facebook. Lots of chatter then ensued about whether it was true, what it meant, and what “we” should do about it. (No, I don’t really know who “we” are.)

Allow me to be blunt on this issue: from a legal/investment perspective, I don’t care much if China wants to buy part of Facebook. Their motives for doing so are irrelevant as long as no laws are broken, and all the chatter about whether such a deal is a good idea is a negative influence on inward foreign investment in the U.S., and possibly corresponding deals in China by U.S. firms.

Kazakhs to Protect BTA Bank From Default, Wealth Fund Says

Kazakhstan’s sovereign wealth fund Samruk-Kazyna will inject cash into BTA Bank if the lender requires financing to avoid a second default, an official said.

“I don’t think BTA Bank will have to restructure debt or face bankruptcy, but we will provide financing to BTA if needed,” Aidan Karibzhanov, a deputy chief executive officer at Samruk-Kazyna, said in an interview in Astana. The fund hasn’t considered how it would inject money into the lender, he said.

STX Plans Bid With Middle East Sovereign Fund for $2.2 Billion Hynix Stake

STX Group, owner of the world’s third-largest marine-engine maker, said it may team up with a Middle Eastern sovereign wealth fund to bid for a stake in Hynix Semiconductor Inc. (000660)

STX is “highly likely” to submit a bid before tomorrow’s deadline set by shareholders including Korea Exchange Bank, the group said in an e-mailed statement yesterday. It wouldn’t need to borrow to pay for a stake of about 15 percent, according to Vice Chairman Lee Jong Chul, who didn’t identify STX’s potential Mideast partner.

Norway Oil Fund to Buy $1 Billion of Real Estate Assets in Paris From Axa

Norway’s sovereign wealth fund agreed to buy a 50 percent stake in seven properties in and around Paris for 702 million euros ($1 billion) from Axa SA, as it seeks to add at least $25 billion in real estate assets to boost returns.

The $570 billion Government Pension Fund Global will form a joint venture with Axa that will manage the properties, the Oslo-based investor said today in an e-mailed statement. The transaction is expected to be completed in the third quarter.

It’s None of Our Business Whether China Wants to Buy Shares of Facebook

Last week, the story “leaked out” that a China sovereign wealth fund had expressed interest in purchasing a significant stake in Facebook. Lots of chatter then ensued about whether it was true, what it meant, and what “we” should do about it. (No, I don’t really know who “we” are.)

Allow me to be blunt on this issue: from a legal/investment perspective, I don’t give a shit if China wants to buy part of Facebook. Their motives for doing so are irrelevant as long as no laws are broken, and all the chatter about whether such a deal is a good idea is a negative influence on inward foreign investment in the U.S., and possibly corresponding deals in China by U.S. firms.

Singapore, Blackstone Square Off Over Japan Property

TOKYO—Global Logistic Properties Ltd., majority owned by Singapore's sovereign-wealth fund, is in final negotiations to acquire a Japanese portfolio of real estate that could fetch up to ¥140 billion ($1.7 billion), making it the biggest property deal in Japan in two years, according to people familiar with the matter.

Private-equity firm Blackstone Group's real-estate arm is also in final talks and is in close competition with GLP in a bid to acquire the assets, according to the people. LaSalle Investment Management is selling a portfolio of more than 20 industrial properties in Japan used for distribution and warehouses by companies.

China state fund eyes Facebook stake

A state-owned fund in China is reportedly interested in buying a stake in social network Facebook, said a media report. A source told US business magazine Business Insider that China's sovereign wealth fund - the China Investment Corp - is hoping it could buy a stake in Facebook, large
enough "to matter", the Shanghai Daily reported.

Financial firm Citibank is reportedly trying to acquire as much as $1.2 billion worth of Facebook stock on behalf of two sovereign wealth funds - one from China and another from the Middle East, the daily said.

Alderman: SFO Is Not Looking At Banks In Sovereign Fund Probe

The U.K. Serious Fraud Office stands ready to assist the U.S. Securities and Exchange Commission with inquiries into whether financial firms violated foreign bribery laws in their dealings with sovereign-wealth funds.

But as of Friday, the office wasn’t looking into specific banks, SFO Director Richard Alderman said in a statement to Bloomberg. The statement runs counter to the news service’s report Wednesday that said the SFO was already helping U.S. authorities in the probe, citing an interview with Alderman himself.