SWFI First Read, August 31, 2015

Oman’s SGRF Signs Cooperation Agreement with Oman Oil Company Oman’s State General Reserve Fund (SGRF) and state-owned Oman Oil Company have signed an agreement that will form a strategic cooperation partnership. The cooperation between SGRF and Oman Oil Company S.A.O.C will hone in on developing people skills within their organizations, backing small-to-medium businesses and knowledge [...]

Friday SWFI News Roundup, August 28, 2015

Can Risk Parity Hurt the Recovery? Many institutional investors, especially U.S. pensions, have adopted the concept of risk parity and have applied it to their portfolios. There are estimates that around US$ 500 billion in assets are allocated to risk parity strategies and about 40% of those assets are allocated toward listed equities. The recent [...]

Friday SWFI News Roundup, August 21, 2015

Norway SWF Posts Negative Returns for Second Quarter Norway’s Government Pension Fund Global (GPFG) posted a negative return of -0.9% for the second quarter. Fixed income dragged down returns at -2.2%, while equities for the wealth fund returned -0.2%. The wealth fund’s real estate investments posted a 2% return for the quarter. Yngve Slyngstad, CEO [...]

Mubadala Takes Over AUX Interests in Galway Gold

AAV Limited, an indirect sovereign wealth enterprise (SWE) of Mubadala Development Company PJSC, has acquired a 17.4% stake in Toronto-based Galway Gold Inc. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Even Norway’s Sovereign Fund is at Risk Now

Sovereign wealth funds that sprung from countries where the price of oil is pivotal for the health of fiscal budgets are at greater risk today than 5 years ago. Why? First, the global oversupply of oil is rampant, a blessing for energy-constrained countries like India and a nightmare for the Gulf States. The price of [...]

Friday SWFI News Roundup, August 7, 2015

GIC Possible Assist in Worldpay Bid Private equity giants Blackstone Group and Hellman & Friedman are teaming up to acquire U.K.-based Worldpay, a payments processing company that is trying to float £6 billion onto the London stock exchange. The private equity group may include Singapore’s GIC Private Limited to have additional financial firepower in the [...]

SouthGobi Buys Time From CIC

SouthGobi Resources Ltd., a Mongolian coal mining company, won a deferral on a major interest payment owed to a giant Asian sovereign wealth fund. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Laricina Energy Enters Into Settlement Term Sheet with CPPIB, Seeks Court Approval

Calgary-based Laricina Energy Ltd., once able to lure large institutional investors like the Korea Investment Corporation (KIC) and Canada Pension Plan Investment Board (CPPIB), became an insolvent junior oilsands company earlier in 2015. A victim of cheap oil and lofty ambitions, in March 2015, Laricina Energy was granted Companies’ Creditors Arrangement Act court protection by [...]

Sovereign Wealth Funds and Russia

Russian FinMin Asks for Sovereign Fund Refill to Curtail Ruble Appreciation

Russian Finance Minister Anton Siluanov commented that Russia should begin the process of replenishing its Reserve Fund to curtail the ruble’s appreciation. An appreciating ruble would likely negatively affect Russian exports. Siluanov pointed out that proceeds from higher oil prices would be the path for Russia to accomplish this. Prices would need to rise above [...]

CIC and ENGIE Sign MoU, Focus on Low Carbon

Chinese Premier Li Keqiang made a strategic visit to France to meet with French Prime Minister Manuel Valls and French President Francois Hollande. During the political trip, Gérard Mestrallet, Chairman and CEO of ENGIE, signed a Memorandum of Understanding (MoU) with Ding Xuedong, Chairman and CEO of China Investment Corporation (CIC) in Paris. ENGIE is [...]


OTPP to Acquire Oil and Gas Royalty Business of Cenovus Energy

Calgary-based Cenovus Energy Inc., Canada’s second largest independent oil producer, agreed to sell its portfolio of oil and gas royalty properties in Western Canada to Teachers’ Natural Resources Group, a unit of Ontario Teachers’ Pension Plan (OTPP), for C$ 3.3 billion (US$ 2.66 billion). Highlighted by SWFI’s Sovereign Wealth Fund Transaction Database, OTPP has taken [...]

Wealth Funds Back More Startups, Locking in Matterport and Proterra

Mountain View-based Matterport, a company that focuses on virtual reality, raised US$ 30 million in Series C financing from a group of investors. Leading the round was Qualcomm Ventures, a venture unit of Qualcomm Incorporated. Other investors are Singapore’s GIC Private Limited, Lux Capital, DCM Ventures, Felicis Ventures, Greylock Partners, Navitas Capital, AMD Ventures, AME [...]

Mubadala Forms JV with Trafigura, Buys Big Stake in Spanish Mines

Commodity trading companies are seeing value in partnering with long-term investors like wealth funds in acquiring mining assets. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Mubadala Brazilian Iron Ore Port Loses Key Contract

Usinas Siderurgicas de Minas Gerais SA (Usiminas), one of Brazil’s largest steelmakers, moved to terminate its iron ore shipment contract with MMX Sudeste Port. Historically low prices of iron ore was a factor. The port is fighting back, taking all appropriate measures including arbitration. The contract was signed in February 2011. Sudeste Port is a [...]

Sovereign Wealth Funds and Russia

RDIF Leads Investors to Fund Largest Modern Russian Petrochemical Facility

The Russian Direct Investment Fund (RDIF) has led a group of global investors to agree to invest in the development of ZapSibNeftekhim, SIBUR’s integrated petrochemical facility in Tobolsk, Tyumen Region. Moscow-based SIBUR is a gas processing and petrochemicals company. This is RDIF’s largest infrastructure project its backing. Funding Details [ Content protected for Sovereign Wealth [...]

Friday SWFI News Roundup, June 19, 2015

RISK: Norway’s Sovereign Fund CEO Questions China Sell-Off Recent volatility in mainland Chinese equity markets are posing signals to large institutional investors about potential fundamental issues occurring in Asia’s giant. NBIM CEO Yngve Slyngstad in a Bloomberg interview, after giving a speech in Oslo, commented, “You have to spend time thinking about both the valuation [...]

hong kong

CROSS DIVERISIFICATION: QIA Picks Up Big Stake in HK Electric Investments

Hong Kong billionaire Li Ka-shing, through his Power Assets Holdings, sold a 16.5% stake in HK Electric Investments to the Qatar Investment Authority (QIA), through Qatar Holding LLC, for HK$ 7.68 billion (US$ 991 million). After the deal, Power Assets Holdings will remain a top shareholder of HK Electric Investments at 33.37%. The QIA bought [...]

Institutional Investors Wade Back Into EM Renewable Projects

Applied Solar Technologies (India) Pvt. Ltd (AST) raised US$ 40 million from a round of investors with Australia’s Future Fund leading the pack. Founded in 2008, the Delhi-based solar power company touts existing backers such as Bessemer Venture Partners, Skoll Foundation-backed Capricorn Investment Group and the International Finance Corporation, the investment arm of the World [...]

Castleton Commodities to Acquire Morgan Stanley’s Physical Oil Business

Stamford-based Castleton Commodities International LLC will acquire the physical oil business of Morgan Stanley. The price of Morgan Stanley’s oil trading and storage unit was rumored to be around US$ 1 billion to US$ 1.5 billion in an all-cash purchase. Trading house Castleton Commodities raised funds from existing company investors and through a US$ 3.5 [...]

Friday SWFI News Roundup, May 8, 2015

Singapore’s CPF Chief Investment Officer Joins Mercer Chua Boon Lee, the former Chief Investment Officer of Singapore’s Central Provident Fund (CPF), is joining Mercer’s investment consulting business in Singapore as a principal. Mercer has been going under a re-organization globally. Chua will report to Soon Kian Lee, Mercer’s ASEAN business head. ADIA Sells Shares in [...]