Archive | January, 2009

Some notes from the 2009 World Economic Forum – Davos

According to the website, “Tony Tan Keng-Yam, Deputy Chairman and Executive Director, Government of Singapore Investment Corporation (GIC), Singapore, said there would likely be a shake-out in the financial system into two tiers: first, a core of tightly regulated, large commercial banks working with lower levels of leverage than in the past; second, a group […]

Large SWF Redemption – Legg Mason assets under management decreased to $698 Billion

Legg Mason has reported results for 3Q of FY 2009. The report states, “AUM decreased to $698.2 billion at December 31, 2008, down $300.3 billion, or 30%, from December 31, 2007 and down $143.7 billion, or 17%, from $841.9 billion at September 30, 2008. In the third quarter of fiscal 2009, net client cash outflows […]

Indian Government seeks cap on Temasek, GIC holdings in listed companies

According to the Economic Times, “The finance ministry has proposed that a key agreement between India and Singapore be amended to prevent two Singapore government-owned investment entities — Temasek and GIC — from together holding more than 10% equity stake in any publicly-traded Indian company. Under the current SEBI regulations, a foreign institutional investor (FII) […]

KIA allocates some holdings away from stocks towards cash

Reuters reports that, “The Kuwait Investment Authority (KIA), the Gulf Arab state’s sovereign wealth fund, has reduced exposure to global stock markets since October, shifting assets instead into short-term cash funds, a government report said. In a briefing to parliament, the government said KIA had cut the ratio of international share investments in a key […]

Apollo Closes Buyout Fund Near $15 Billion Target

Dow Jones reports that, “The latest fund was at $12.5 billion in April with the majority of that amount collected in 2007. The vehicle raised $3 billion between the end of 2007 and April. That meant that Apollo was also somewhat sheltered from the market tumult following the Lehman Brothers Holdings’s bankruptcy in September, which […]

According to Singapore’s Finance Minister: Temasek, GIC outperformed equity markets

Reuters reports that, “Singapore’s sovereign wealth funds, the Government of Singapore Investment Corp and Temasek Holdings, outperformed global equity markets in 2008, the city-state’s finance minister said on Monday. ‘Their overall value has fallen by less than the decline in global equity markets, as they maintain diversified portfolios and had taken precautionary actions early in […]

Kuwait’s Finance Minister says KIA not to cut foreign investments

Reuters reports that, “Kuwait’s sovereign wealth fund does not plan to reduce its overseas investments despite launching a 1.5 billion dinar ($5.17 billion) fund to invest in local stock markets, the finance minister said. ‘We won’t lower foreign investment,’ Mustapha al-Shamali told Reuters on the sidelines of an Arab economic meeting in Kuwait, when asked […]

Notable Direct Purchases in Real Estate by Sovereign Wealth Funds

Below are some notable transactions by SWFs making direct purchases.

Alaska Permanent Fund hires State Street for passive global mandate

The Alaska Permanent Fund Corporation Board of Trustees hired State Street Global Asset Managers for a $700 million passive global mandate on January 14. The mandate was previously managed by UBS Global Managers. During the teleconferenced meeting, the Board also took the following action: Amended the APFC’s equity investments resolution to include the Morgan Stanley […]

Libya Wealth Fund To Disclose Details On Invest – Fund Head

The State-run Libyan Investment Authority will disclose details about its investment strategy in coming months to allay concerns in the U.S. and European about its intentions, the fund’s Executive Director Mohamed Layas said Sunday. The Libyan state investment vehicle, or sovereign wealth fund, will also open a London office this year after months of consideration […]

Abu Dhabi Investment Authority Appoints Bill Schwab as Global Head of Real Estate

It states: “The Abu Dhabi Investment Authority said today that it has appointed Bill Schwab as Global Head of Real Estate, based in Abu Dhabi, with immediate effect. Mr. Schwab, 56, will be responsible for leading a dedicated team of professionals in managing and implementing ADIA’s global investment strategy in the real estate sector. He […]

US$ 4 billion economic stimulus plan for Chile

It states: “The Chilean government unveiled an ambitious countercyclical fiscal strategy to stimulate employment and growth in 2009. The plan involves over US$4 billion, equivalent to 2.8% of GDP. The stimulus plan announced by President Michelle Bachelet aims at securing economic growth between 2 and 3% in 2009 and encouraging employment. The government estimates that […]

Committee on Foreign Investment in the United States (CFIUS) Clears Path for Creation of “The Foundry Company”

According to the Press Release by AMD, “AMD and the Advanced Technology Investment Company (ATIC) announced today that they had obtained clearance from the Committee on Foreign Investment in the United States (“CFIUS”) regarding the creation of The Foundry Company, their leading-edge semiconductor manufacturing joint venture. CFIUS also has determined that the proposed additional investment […]

Dow Chemical Considers Legal Options Against Kuwait

According to the Wall Street Journal, “Dow Chemical Co. said it would pursue legal, operational and financial avenues to enforce its rights under a failed $17.4 billion joint-venture deal with Kuwait’s Petrochemical Industries Inc. At the same time, Dow said that it has been approached by other potential business partners and that it has been […]

Kuwait bourse fund targets long-term investments -KIA

Reuters reports that, “a Kuwait government fund launched to stabilise the Gulf state’s bourse was seeking long-term investments in stocks, the managing director of the Kuwait Investment Authority (KIA) said on Sunday. In November, Kuwait asked its sovereign wealth fund KIA to set up the fund to shore up the second largest Arab bourse , […]

Norges Bank will not purchase foreign exchange for the Government Pension Fund – Global in January

The Norwegian SWF is administered by Norges Bank Investment Management (NBIM), a division of the Norwegian Central Bank. According to the Press Release by Norges Bank, “the Fund’s foreign exchange requirements are partly met by the state’s direct financial interest in petroleum activities (SDFI) and partly by Norges Bank’s purchases in the market. The Ministry […]

SR720 Million Deal Signed to Produce Seamless Pipes in Saudi Arabia

A long-term SR720 million financing agreement was signed here by Jubail Energy Services Company (JESCO), a subsidiary of the Industrialization and Energy Services Company (TAQA), and the Public Investment Fund (PIF), a state-owned organisation established by a royal decree to provide finance to commercial ventures. The funds will be used to finance part of the […]