Brunei Investment Agency
Sovereign wealth fund of Brunei From Wikipedia, the free encyclopedia
The Brunei Investment Agency (BIA) is a government-owned corporation[1] that reports to the Ministry of Finance and Economy of the government of Brunei. Established in 1983, its offices are located in Bandar Seri Begawan at the Ministry of Finance Building.[2] Data on the agency's assets are not reported to the public[3] and the sultan and his assets, to a certain degree, are also incorporated in the agency; however, the extent is unknown. As of December 2024, the fund has a total of US$73 billion in assets under management.[4]
National emblem of Brunei | |
| BIA | |
| Company type | Sovereign wealth fund |
| Industry | Investment |
| Founded | 1 July 1983 |
| Founder | Sultan of Brunei |
| Headquarters | Ministry of Finance Building, , |
Area served | Worldwide |
Key people |
|
| Products | investment |
| AUM | US$73 billion (2023) |
| Total equity | US$30 billion (2009) |
| Owner | Government of Brunei |
| Parent | Ministry of Finance and Economy (Brunei) |
| Subsidiaries |
|
| Website | BIA Homepage |
History
The Crown Agents previously managed the funds on behalf of the government of Brunei until 18 July 1983, when BIA assumed responsibility. With stable leadership and a strong, consistent board, BIA experienced significant growth in its first decade. By early 1993, the agency expanded from seven employees in 1983 to 183, all with extensive experience across various sectors. Their commitment to the organisation continued to grow, and by 1993, BIA had moved from a small office near the Chief Minister's Office to multiple locations, including representative offices in Tokyo, Kuala Lumpur, and London.[5]
Despite challenges such as the 1987 stock market crashes and subsequent weak market performances, BIA significantly increased the funds under management by 1993. Its risk-averse investment strategy helped mitigate the worst market fluctuations. Over time, BIA evolved from managing cash deposits to directly overseeing substantial investments in bonds, stocks, and real estate in major international markets. The agency's annual financial statements are audited by an international firm, ensuring accountability in the management of the funds.[5]
Functions
The objective defined under the Act is to hold and manage the General Reserve Fund of the government and all its external assets. The agency manages 40% of Brunei's foreign reserves, with the remainder being managed by eight foreign organizations.[6]
Investments
Some major foreign assets of BIA include the Dorchester Collection, a portfolio of luxury hotels established in 1996; a 10% holding in the Paterson Securities of Australia, and Bahagia Investment Corporation (Malaysia), dealing with real estate.[7]
BIA's investment portfolio, apart from investments within Brunei, covers diverse investments in bonds, equity, currency, gold and real estate. It has substantial investments in the United States.
Brunei investors bought The Dorchester on Park Lane in London in 1985 for US$50 million and in 1996 BIA formed the Dorchester Collection, a conglomerate of luxury hotels in UK, United States, France and Italy.[8] BIA also owns The Beverly Hills Hotel in Los Angeles which was bought for US$185 million in 1987 as well as the Grand Hyatt Singapore Hotel.[9] BIA also has a 10% holding in the Paterson Securities of Australia, and Bahagia Investment Corporation of Malaysia, dealing with real estate.[7]
In June 2018 BIA acquired a stake in Molten Ventures for £20 million.[10]
References
External links
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