Archive | August, 2011

China Investment Corp Invests in Vietnamese Coal-Fired Plant

Investing in new-energy infrastructure is a blossoming area for many sovereign investors. There are numerous inherent risks in these types of projects such as political risk, financing risk, and developmental risk. In the past, the China Investment Corporation (CIC) has invested in AES Corp. stock. AES Corp. and the CIC have partnered strategically and financially. […]

Qatar Holding Invests in Energias de Portugal

Qatar Holding LLC, the sovereign wealth enterprise of the Qatar Investment Authority now owns 2.018% of Energias de Portugal, S.A. share capital. Energias de Portugal, S.A. is near being fully privatized by the Portuguese Government. At a share purchase price of EUR 2.16, the stake is estimated to cost EUR 159.4 million. The Qatar Investment […]

SOFAZ Releases Annual Report

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has releasesd their annual report. SOFAZ was founded by Heydar Aliyev. The fund receives significant amounts of revenues from sales of the crude oil and gas produced in Azerbaijan. To read the report (external link): Report

Sovereign Wealth Themes: An Assessment of the Internal Politics of Sovereign Funds

This five page report is available for download for SWFI subscribers.  This report gives a brief overview on internal politics and sovereign investment institutions. One of the most significant issues to comprehend when designing or managing a sovereign investment institution is domestic politics.  The variable of domestic politics must not be overlooked.  Sovereign institutions are […]

CIC Invests in Tankers

Sovereign investors look at all types of investments. One area of high interest involves anything to do with the energy industry, especially transportation and distribution. The shipping industry is growing and companies in this sector tend to have attractive operating margins especially in the Eastern Hemisphere. In August 1, 2011, the China Investment Corporation (CIC) […]

Alaska Permanent Fund Buys Stake in 299 Park Avenue

The Alaska Permanent Fund which as of August 24, 2011, had a value of US$ 37.58 billion in assets has purchased a stake in a Class A New York property. The APFC is an active investor in core real estate throughout the United States. The Rockpoint Group was the seller in this transaction. The 49.5% […]

Temasek Holdings Invests in NA Natural Gas Fuel Provider

The market adoption of natural gas as a source for vehicle fuel is growing rapidly in the world. Natural gas fueling services are positioned to propagate in the United States and Canada. In North America, Clean Energy Fuels Corporation is a major provider of natural gas fuel for transportation. The company has operations in LNG […]

ADIA Reorganizes External Equities Team

Nearly 80% of ADIA’s assets are managed externally, with 60% invested in index-replicating strategies. The Abu Dhabi Investment Authority is reorganizing its external equities team. At the top, the department will be divided into two sections, indexed-fund strategies (beta) and active management (alpha). One of ADIA’s primary goals for the restructuring was to simplify how […]

Swiss Waits for UN Green Light on Libya’s Frozen Assets

Switzerland is a major destination for foreign investments and international banking for governments. Regimes that are not in line with the United Nations have grown concerned about the safety of their overseas assets. Venezuela has shifted money and gold overseas back to Caracas. The Libyan Investment Authority and other Libyan state-owned assets were frozen internationally […]

Australia’s Swan Says No on Proposed Commodity Sovereign Wealth Fund

In recent news, Australian Treasurer Wayne Swan views that in the country’s current situation there is no need for a commodity-based sovereign wealth fund. There are proponents in Australia that want a commodity-based sovereign fund. They feel that Australia is in a mining boom and a mining tax would discourage excess investment from occurring so […]

Ghana Debates $3 Billion China Development Bank Loan

Sovereign investors and other governmental funds have been loaning money to emerging markets for quite some time. In some cases the loan facilities are secured by collateral such as future oil shipments. Ghana is a sub-Saharan country that is becoming a real player in both the oil and natural gas global markets. With regards to […]

Future Fund Fully Integrates Its Telstra Holdings

Telstra has been a large component of the Australian Future Fund’s investment portfolio for a very long time.  Recently, in mid-August the Future Fund completed its portfolio rebalancing for holdings in Telstra.  Telstra is an Australian media and telecommunications company.  The Future Fund has reduced their holdings in the Australian firm down to 0.8% or around […]

Temasek Chinese Bank JV Moves Forwards with Rural Banks

BOC Fullerton Community Bank is a joint venture between the Bank of China Ltd and Fullerton Financial Holdings. Fullerton Financial Holdings is a sovereign wealth enterprise of Temasek Holdings. Temasek and other sovereign wealth funds are investing in the Chinese financial sector as the middle class continues to grow in China. The joint venture is […]

Venezuela Brings Cash Reserves and Gold Back Home

Venezuela is fortunate enough to be the largest oil producer in Latin America being courted by several economic powers such as China, Russia, and Brazil.  The country is highly dependent on oil revenues and the price of oil. Nearly 95% of export earnings stem from oil revenues. With the excess petroleum wealth, the country had […]

New Mexico SIC FY Investment Returns of 22.5%

According to the press release, “The State Investment Council (NMSIC) today announced record returns of 22.5% for the fiscal year ending June 30, 2011.  The investment returns helped grow the total funds managed by the NMSIC more than $2.5 billion year-over-year, and placed it in the top third among peer funds of more than $1 billion. “The State […]

Norway SWF Chief Not Worried About U.S. Downgrade

In the aggregate, a growing number of sovereign wealth funds are allocating more to public equities, less in fixed income. This adds a bit of volatility to their portfolios but at the same time, some funds have achieved impressive gains in certain years. Norway’s Government Pension Fund Global has made significant strides in allocating to […]

Georgia Seeks to Open up SOEs to Investors

Georgian Prime Minister Nikoloz Gilauri has proposed legislative amendments to start privatization efforts in several large state-owned enterprises. The amendments include floating minority stakes in the SOEs which could be on the Warsaw and London stock exchanges. The minority stakes could range from 15 to 25% of the SOE. Russia and other Central Asian countries […]

CIC to Purchase 7% Stake in Bank of Shanghai from IFC

The China Investment Corporation plans to purchase a 7% stake in the Bank of Shanghai. The International Finance Corporation (IFC) which is a member of the World Bank Group is selling the stake. The IFC became a shareholder of the Bank of Shanghai in 1999. They made an initial investment of US$ 22 million for […]

ADIA Sued by Madoff Trustee

Fraud risk is a huge concern for sovereign wealth funds when they invest in certain investment vehicles like hedge funds or fund-of-funds.  The aftermath of the Ponzi scheme of Bernard Madoff continues to plague investors.  The trustee, Irving H. Picard is seeking to recover money for victims of the Ponzi scheme ranging six years prior […]

Less Wiggle Room for Western Central Banks

Western central banks and monetary authorities have less wiggle room in the current environment. In 2008, the global financial system was operating under terrible economic conditions with numerous financial institutions failing. At that time, the United States was fortunate to have the flexibility to act in terms of using the Federal Reserve, authorizing TARP, and […]