Energy

Oil Drop Impacts Russian Sovereign Wealth Funds

Plagued by low oil prices and Western sanctions, Russia looks to withdraw a huge amount of money from its pool of sovereign wealth. During the 2000s, Russia’s sovereign wealth funds amassed a massive pool of liquid reserves. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


No Keystone: Institutional Investors Lose Big on Canadian Oil Sands

Canadian oil sands companies have struggled financially, many are cash-strapped, holding off on pursuing projects. The long-term payoff for institutional investors seems distant as global oil prices have plummeted. OPEC plans to meet in June. Saudi Arabia’s Oil Minister Ali Al-Naimi stated that OPEC will not change course even if prices drop to US$ 20 [...]


Iran to Spend $4.8 Billion in Sovereign Fund Money for Oil Development

The Iranian government plans to withdraw up to US$ 4.8 billion from its National Development Fund (NDF) to spend on developing its oil and gas fields for the next fiscal year. The new fiscal year for the country’s budget begins on March 21. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please [...]


oil

Sovereign Wealth and Pension Money Flow Into Energy Funds

Private equity firms are still raising institutional investor capital to target investments in the U.S. energy sector. The Blackstone Group had total commitments of US$ 4.5 billion for its second energy fund, Blackstone Energy Partners II. Some large pensions invested in the fund include: New Jersey Division of Investment and Teacher Retirement System of Texas [...]


Chasing Infrastructure in Sweden

Fortum Oyj, a state-controlled Finnish energy company with assets in the Nordic region and Russia, is selling its Swedish electricity grid. Bids are due by early March 2015 and may fetch a price as high as US$ 7.4 billion. Fortum Oyj has shifted its strategic focus on generating power assets, while selling energy distribution assets. [...]


ports sovereign wealth

Strathclyde Pension Commits to Community Power Projects

Strathclyde Pension Fund committed £10 million toward community renewable power projects. The commitment will be invested over three years. This investment will lie in Strathclyde Pension’s new opportunities portfolio which holds investments in real assets. See the Institutional Investor Profile of Strathclyde Pension Fund [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. [...]


Friday SWFI News Roundup, January 30, 2015

Russia’s Anti-Crisis Plan Russian Prime Minister Dmitry Medvedev has moved forward on inking a 1-year anti-crisis plan. The plan has 60 measures, costing around 2.3 trillion rubles. A major plan component is forming a financial institution that will acquire “bad debt” – more guidance will be provided by March 2015. Russia’s National Welfare Fund (NWF) [...]


blackstone

OPTIMIST: Blackstone Giddy on New Energy Fund

Investment bankers and dealmakers perceive the fall of oil prices as an opportunity to scoop up assets and consolidate energy companies. The unprecedented plummet in crude prices since the summer has moved stock prices of junior energy companies down at low levels. Private equity firms like Blackstone Group, Apollo Global Management and Riverstone Holdings are [...]


Will Institutional Investors Allocate More to Renewable Energy in 2015?

U.S. President Barack Obama gave his sixth State of the Union address highlighting a number of issues such as financial regulation, infrastructure and climate change. During the 2015 address, President Obama stated, “And no challenge — no challenge — poses a greater threat to future generations than climate change.” According to the World Bank, renewable energy made up 18% [...]


Sovereign Wealth Funds and Russia

Russian National Welfare Fund to Finance Finnish Nuclear Power Plant

Russia’s National Welfare Fund (NWF) is being tapped to fund and finance strategic projects and companies. Russia’s Cabinet of Ministers approved the National Welfare Fund to allocate 150 billion ruble (US$ 2.3 billion) to fund the Hanhikivi 1 nuclear power plant project in Finland. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. [...]


LONG GAME: Private Equity Energy Funds Continue to Raise Capital

Energy-focused private equity funds are still raising capital from pensions, insurance companies and sovereign funds, despite the precipitous fall in oil prices. Founded by Kenneth A. Hersh, NGP Energy Capital Management (NGP) recently closed US$ 5.33 billion for NGP Natural Resources XI, a fund that will target oil and gas production, oil field services and [...]


oil

Falling Oil Prices Curtail Growth Rate of North Dakota Legacy Fund

Approved by state voters and formed in 2011, the North Dakota Legacy Fund is funded by oil and gas tax revenue. The falling price of oil is negatively affecting US-based commodity funds by reducing future flows. Under Article 10, Section 26 of the North Dakota Constitution, 30% of state revenue derived from North Dakota’s oil [...]


Russia’s National Welfare Fund Backs Yamal LNG Development

Before the end of 2014, Russian Prime Minister Dmitry Medvedev approved gas producer Novatek’s application for government financial assistance in Yamal liquefied natural gas (LNG) developments. Novatek is Russia’s biggest independent natural gas producer. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


4 Horrible Performing Investments for Institutional Investors in 2014

As Santa Claus sprinkles down bow-tied gifts on U.S. stock market investors, not all was well for investors in 2014. The equity capital markets laid traps for institutional investors. At times, even the “smartest minds” in investing make serious errors when allocating assets. For example, the AllianceBernstein All Market Real Return Portfolio, which actively shifts [...]


Nebras to Mull Over Massive $14 Billion Energy Project in Turkey

Energy-hungry Turkey is embedded with geostrategic benefits, bridging Asia, Europe and the Middle East. However, Turkey’s growing economy and population demands greater power generation capacity and distribution. Turkey also wants to limit energy imports, being heavily reliant on gathering foreign sources of oil, natural gas and hard coal. Doha-based Nebras Power Company, backed by Qatar [...]


PennPSERS Awards Energy and Commodity Fund Mandates

The Pennsylvania Public School Employees’ Retirement System (PennPSERS) awarded a combination of three energy and commodity mandates. PennPSERS has awarded PIMCO an initial investment amount of US$ 200 million for PIMCO Commodity Alpha Fund Ltd. This PIMCO commodity fund will focus on market neutral, relative-value commodity strategies, using bottom-up fundamental analysis. The fund has capacity [...]


OTPP and PSP Investments Buy Into Santander Renewable Portfolio

Ontario Teachers’ Pension Plan (OTPP) and the Public Sector Pension Investment Board (PSP Investments) are jointly acquiring a portfolio of renewable energy and infrastructure assets from Banco Santander, S.A. The assets being sold by Santander will be moved to a new company equally owned by: Banco Santander, OTPP and PSP Investments. Marcos Sebares will be [...]


Falling Peso and Oil Prices Plague Mexico’s Prospects

Source: Thomson Retuers, EIA The falling global price of oil is having a material impact on fiscal budgets with regard to fossil fuel-reliant economies. Being a key oil exporter to the United States, Mexico is on the brink of opening foreign investment in the energy sector, planning auctions in 2015. Meanwhile, large-scale energy companies, plush [...]


Friday SWFI News Roundup, December 12, 2014

BC LNG Prosperity Fund Comments The provincial government of British Columbia maintains a belief that its proposed US$ 100 billion LNG prosperity fund is still a possibility. BC Natural Gas Minister Rich Coleman argues that the LNG fund could reach over US$ 100 billion in over 30 years, despite global declines in the price of [...]


OUT OF GAS: ArcLight Capital Struggles to Raise Capital for Sixth Fund

On December 10th, West Texas Intermediate (WTI), also known as Texas light sweet, and Brent crude oil prices drifted to recent new lows. WTI oil prices fell below US$ 61 a barrel, while Brent prices dropping under US$ 65 a barrel for the first time since 2009. This economic blessing for U.S. consumers is creating [...]