Funds

Qatar sovereign wealth fund reduces stake in Credit Suisse

The Qatar Investment Authority (QIA) has reduced its shareholding in Credit Suisse Group to 4.94 percent, amid the Middle Eastern nation’s diplomatic crisis with neighbouring countries.

The QIA previously held 5.01 percent in voting rights and is reporting a sale of shares for the first time since 2008. Qatar’s overall holding – including bonds which convert into equity if capital levels fall below a certain threshold – declined to 15.91 percent from 17.98 percent after a rise in the number of outstanding Credit Suisse shares because of its capital increase.

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Activist Third Point takes $3.5 billion stake in Nestlé

Billionaire activist investor Daniel Loeb’s Third Point LLC hedge fund has taken $3.5 billion stake in Nestlé. The stake amounts to about 1.25% of swiss company’s shares.

The hedge fund is proposing Nestlé set a formal profit margin target of 18-20 per cent by 2020, boost its debt to buy back shares, put up for sale non-core products in its portfolio, and sell its 23 per cent stake in cosmetic maker L’Oréal, a stake with a market value of about $27 billion. Nestle’s current operating margin is about 15 per cent. Nestlé did not respond immediately to requests for comment.

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Sustainable investment is a key driver for Swiss asset owners

The value of sustainable investments held by Swiss asset owners almost doubled in the past year, according to a survey by Forum Nachhaltige Geldanlagen (FNG), the association for sustainable investments in Germany, Switzerland, and Austria, which reported that sustainable investments grew to CHF104bn (€95.8bn) as of year-end 2016, compared to CHF55bn a year earlier.

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Sovereign funds prefer Germany during Brexit deal

Invesco released its fifth Invesco Global Sovereign Asset Management Study on 5th June, an annual in-depth report on the complex investment behaviour of global sovereign wealth funds and central banks. This year’s study shows that geopolitical uncertainty and limited options to increase risk asset allocations are causing sovereign investors to make fewer allocation changes than at any point in the past five years, despite target-return gaps increasingly widening.

The survey, conducted face-to-face among 97 individual sovereigns and central bank reserve managers across the globe, including Canada, representing $12 trillion of assets, asked sovereigns to rate the importance of various economic and geopolitical factors on their investment strategies.

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