Archive | June, 2011

Singbridge Partners Up to Develop a Guangzhou Business Park

There is a mega trend of sustainable urban commercial developments sweeping across Asia, some call them knowledge cities. Projects in Iskandar Malaysia or the development, Tianjin Eco-City are generating intense interest among Asian sovereign wealth entities. Singbridge International Singapore Pte Ltd, a sovereign wealth enterprise of Temasek Holdings, will jointly develop a business park in […]

Khazanah and Temasek Announce Strategic Joint Investments in Real Estate

According to the press release, “Khazanah Nasional Berhad (“Khazanah”) and Temasek  Holdings (Private) Limited (“Temasek”) are pleased to announce the establishment of M+S Pte Ltd (“M+S”) and Pulau Indah Ventures Sdn Bhd (“Pulau Indah”).  Owned 60:40 by Khazanah and Temasek respectively, M+S will develop land parcels in Marina South and Ophir-Rochor in Singapore. Pulau Indah, a 50:50 joint […]

Poland May Have its Own SWF in the Coming Years

Shale gas is becoming a conventional source of energy; however, it is much more expensive than convention oil and gas drilling. Sovereign wealth funds such as Temasek Holdings have been investing in companies that are involved with the process called hydraulic fracturing.  Japan’s Mitsui has already been investing in shale projects in Poland. Europe may […]

China Double Downs on European Sovereign Debt

Recently, Chinese Premier Wen Jiabao made an official visit to several European countries as the continent struggles on how it should handle Greece’s dire economic quagmire. China views Europe as a strategic region and is continuing to invest in government debt across the continent. China is prepared to invest in European government bonds to assist […]

Hong Kong Monetary Authority Diversifies into Yuan Assets

Across the globe, monetary authorities are diversifying into equities and different currency assets. Just recently, the Hong Kong Monetary Authority (HKMA) has started investing in fixed income and equities in the Chinese market. In November 2010, they were granted a Qualified Institutional Investor license. The HKMA manages an exchange fund which the majority is held […]

SEC Probing Oil Companies on Libya

The Securities and Exchange Commission (SEC) has requested information from select companies that might have dealt with the Libyan Investment Authority (LIA). The SEC requested information from Conoco Philips, Exxon Mobil Corp, and Occidental Petroleum Corp. The SEC is asking to see any type of communications they had with the Libyan Government since 2008. The […]

Probability Increases for Norway’s SWF to Invest in Infrastructure and Private Equity

Norway’s sovereign fund is prodded by some for its conservatism in investments. The sovereign fund takes small stakes by indexing companies across the globe, with a significant allocation to Europe and the Americas. Over the years, the wealth fund actively pushed to diversify from bonds to equities, and now real estate. Norway’s SWF has also […]

Bank of Israel to Invest in Index Equities

With the increased risk profile of sovereign bonds and other fixed income instruments, many central banks are rethinking their asset allocation for reserves. In addition, government bonds have yielded historic lows in recent months. A decade ago, a majority of central banks wouldn’t even contemplate investing reserves in equities, besides central banks like the Saudi […]

Current Sovereign Fund Challenges for Hedge Funds

Hedge funds have bounced back from the doldrums of the financial crisis. The global hedge fund industry is yearning for capital inflows. With this in mind, it is becoming increasingly vital for hedge funds to understand how sovereign wealth funds operate. Major equity management and investment consulting firms have already developed so-called sovereign wealth fund […]

Mubadala Believes Brazil has Potential

Brazil seems to be the Latin American darling of the Middle East. Over the past few years, Brazil has been improving its macroeconomic stability and building up significant foreign reserves. Brazil was one of the first emerging market economies to recover from the financial crisis. The Government of Brazil even created a sovereign fund. In […]

FCPA, Goldman Sachs, and Libya

When sovereign funds invest overseas they can be exposed to legal risk. With increasing interaction with investment funds, sovereign wealth funds can be under the scrutiny of governmental investigations, if there are any perceptions of a violation of the United States Foreign Corrupt Practices Act. The Securities and Exchange Commission (SEC) is undergoing a series […]

Top 10 SWF Direct Deal Transactions of 2010

The table below displays the top ten SWF Direct Deal Transactions of 2010, excluding the SWFTD’s open market transactions. The direct transaction amounts are smaller compared to the bailout years of 2007 and 2008. The IPO of the Agricultural Bank of China has made a notable impact on the list. # Date Target Company Target […]

Statoil to Divest in Gassled

The press release states, “Statoil ASA has decided to divest a 24.1% direct and indirect stake in Gassled joint venture (jv) for a consideration of NOK 17.35 billion. Following this transaction, Statoil will continue to own 5.0% in the jv. The buyer is Solveig Gas Norway AS, a holding company that is approximately 45% owned […]

IDFC and Khazanah Create a Infrastructure Development Company

The IDFC press release states, “IDFC and Khazanah have agreed to enter into a joint venture (JV) to set up a dedicated infrastructure development company with a focus on road sector in India. Khazanah would hold 80.1 % of the equity share capital in the proposed JV and the balance would be held by IDFC. […]

Singapore’s GIC and Australand Create Logistics JV

The Government of Singapore Investment Corporation and the Australand Property Group have created a logistics joint venture called Australand Logistics.  The real estate joint venture will invest in industrial assets and will have a target investment size of AUD$450 million.  The initial term of the JV is 5 years and is expected use very little […]

AIMCo Continues Direct Investment Strategy

Owned by the Province of Alberta, the Alberta Investment Management Corporation (AIMCo) manages investments for the Alberta Heritage Fund, public pensions, and other governmental funds.  They have been an active investor in several prolific direct investing strategies.  In the next twelve months, the crown corporation could spend as much as C$700 million (US$ 720 million) […]