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) [...]


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 [...]


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 [...]

Temasek Acquires Remaining Stake in GTT from Total

A Singapore sovereign wealth fund is solidifying its liquefied natural gas (LNG) strategy by investing capital all along the energy supply chain. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Oil Prices Falling, CalSTRS Awards 2 Mandates for CTA

The California State Teachers’ Retirement System (CalSTRS) has awarded two commodity trading adviser (CTA) mandates. These managers plan to take long/short positions in a variety of markets including bond, stocks, commodities and currency markets. These allocations are being assigned to the pension’s US$ 1.2 billion silo for risk and innovation. [ Content protected for Sovereign [...]

UK Chancellor Osborne Confirms Sovereign Wealth Fund

UK Chancellor of the Exchequer George Osborne, in his Autumn Statement 2014 said, “we’re announcing a new Sovereign Wealth Fund for the North of England so that the shale gas resources of the North are used to invest in the future of the North.” To read the full speech, click here The sovereign wealth fund [...]

Kuwait Sovereign Wealth Fund and Macquarie Set to Acquire Spanish Utility Assets

Germany’s largest power company E.ON SE is set to sell its Spanish assets to Macquarie Group and Wren House Infrastructure Management, a sovereign wealth enterprise of the Kuwait Investment Authority (KIA). E.ON’s Spanish assets attracted the likes of investors such as CVC Capital Partners, Morgan Stanley Infrastructure, Borealis, First State Investments and Endesa. [ Content [...]

GOING NUCLEAR: China’s Biggest Nuclear Power Operator Seeking to IPO in Hong Kong

State-owned CGN Power Co. (China General Nuclear Power Group), China’s largest nuclear power plant operator, is seeking to raise US$ 3.16 billion in its Hong Kong initial public offering (IPO). CGN is under China’s State-owned Assets Supervision and Administration Commission (SASAC).[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view [...]


How Iran Will Cope with Falling Oil Prices

In mid-November, Iranian Oil Minister Bijan Namdar Zanganeh embarked on a fact-finding visit to its gulf neighbor, the United Arab Emirates. Iran and other oil-producing nations are meeting to address the global falling price of crude oil. Earlier in the month, Minister Zanganeh visited Kuwait and Qatar. [ Content protected for Sovereign Wealth Fund Institute [...]