Archive | September, 2011

Q&A with Max Giolitti, Formerly at the Alaska Permanent Fund

This interview appears in the 3Q Y2011 issue of the Sovereign Wealth Quarterly. Q&A with Max Giolitti, Former Head of Risk Management and Asset Allocation at the Alaska Permanent Fund 1. For large institutional investors, what is your investment outlook on 2012, is it positive, negative, mixed? In terms of asset prices it is mixed. […]

Korea SWF Decides to Hold Off Buying More Bank of America

The Korea Investment Corporation (KIC) is holding off for now on purchasing more shares of Bank of America Corp. Initially, the KIC was thinking about raising their stake in Bank of America by reinvesting the dividend it received from the bank. KIC became an investor in Bank of America after its Merrill Lynch shares were […]

Temasek Holdings Invests Further in Alibaba Group

Temasek Holdings is an existing shareholder in the Alibaba Group. DST Global, Yunfeng Capital, Silver Lake, and Temasek Holdings are participating to invest in the Alibaba Group. Alibaba Group is one of China’s biggest e-commerce companies. The key objective of the investment is to provide liquidity to Alibaba’s employees. It is said the amount of […]

China Takes Firm Stance on European Bailouts

This past Saturday, Chinese officials from various organizations including the China Investment Corporation participated in a lengthy IMF meeting to discuss global economic and financial issues, especially regarding the stability of Europe. Over the past year, several European Governments deeply courted China to induce them to purchase their sovereign debt. The China Investment Corporation, one […]

CalPERS Invests $100 Million to Seed Hedge Fund

According to the press release, “The California Public Employees’ Retirement System (CalPERS) has invested $100 million in seed money with Breton Hill Capital, a Toronto-based global macro hedge fund with investments in equities, commodity and financial futures, and currencies. The investment, part of the CalPERS Absolute Return Strategies program, is CalPERS first seed investment with […]

Will the Lost Generation in America Impact Sovereign Wealth Asset Allocation?

Sovereign wealth funds are typically long-term investors; they can wait out financial storms and purchase assets when it is most opportunistic. Sovereign funds have been actively investing in the United States for decades, recently more in the past seven years. The slowdown in the U.S. economy has reinforced the message to sovereign funds to look […]

Impairment Loss with Irish Banks Hurts NPRF

According to the Report of the Comptroller and Auditor General, “the National Pension Reserve Fund (NPRF) was valued at €22.7 billion at the end of 2010. Up to the end of 2010, the NPRF had invested, pursuant to directions from the Minister for Finance, an aggregate of €11.35 billion in Ireland’s two main banks, Allied […]

Citic Securities Capital Raise Attracts Sovereign Wealth Funds

Citic Securities is planning to list in Hong Kong by October 6th. The securities company is the largest in China by market value. Sovereign wealth funds have been investing in Chinese financial firms and banks for quite some time. Earlier we saw tremendous sovereign investor interest in the IPO of Agricultural Bank of China.  In […]

Khazanah May Issue the First Yuan-Denominated Islamic Bonds

Khazanah Nasional Berhad, the Malaysian sovereign wealth fund, is planning to raise capital by issuing the world’s first yuan-denominated Islamic bonds, a blend of Chinese currency and Islamic financial structure. The raise amount is targeted at 500 million yuan (US$ 78.2 million), which is a small amount; however, we believe Khazanah and other Islamic financiers […]

Abu Dhabi Investment Council Invests in Rwandan Bank IPO

Invest AD which is a sovereign wealth enterprise of the Abu Dhabi Investment Council (ADIC) partnered with SB Holdings Inc. Together they created the Invest AD – SBI Africa Fund. The fund was established in January 2011 and has a total commitment amount of US$ 75 million. The mandate of the fund is to invest […]

China Investment Corp Meets with Italian Finance Ministry

Like other Southern European nations, Italy is suffering from severe sovereign debt issues. The Italian Ministry of Finance met with the China Investment Corporation to discuss possible scenarios. Recently, investors wanted greater returns and drove up the bond auction. Italy is trying to lower soaring interest rates and introduce austerity measures. [ Content protected for […]

UKTI and RDIF Sign Investment Opportunities in Russia Agreement

The press release states, “UK Trade and Investment has today signed an agreement with the Russian Direct Investment Fund to co-operate in promoting Russian direct investment opportunities to UK based private equity and corporate investors. The signing, by Lord Green, Minister for Trade & Investment, and Kirill Dmitriev, Chief Executive Officer of RDIF was made […]

CalPERS Targets $800 Million for Investment in California Infrastructure

According to the press release, “The California Public Employees’ Retirement System (CalPERS) Board of Administration today earmarked up to $800 million for investments in California infrastructure over the next three years. CalPERS plan calls for investments in both public and private infrastructure including, but not limited to, transportation, energy, natural resources, utilities, water, communications and […]

ADIA Releases 2010 Annual Review

The Abu Dhabi Investment Authority (ADIA) has released their 2010 annual review. Some interesting notes about ADIA include that around 80% of assets are managed by external managers. An estimated 60% of assets are invested using index-replicating strategies. ADIA also prefers to use separate accounts or in the UK, segregated accounts. The report also gives […]

Are Asset Managers More Profitable When SWFs Invest in Them?

It is no secret that listed asset managers and private equity firms are in the business of managing money for fees. In recent years, a number of sovereign wealth funds have been taking large stakes in investment firms. Some examples include the China Investment Corporation in Blackstone and Morgan Stanley, Mubadala in the Carlyle Group, […]

Uganda Creating Petroleum Fund

Regardless of having a budget surplus or deficit, a number of countries in Sub-Saharan Africa are developing or have developed sovereign wealth funds including Nigeria, Ghana, Botswana, Zimbabwe, and now Uganda. Uganda is in midst of creating a commodity-based sovereign fund to manage potential excess oil revenues.  [ Content protected for Sovereign Wealth Fund Institute […]

Zimbabwe Yearns for Sovereign Wealth Fund

The African country Zimbabwe is continuing on the path to establishing a sovereign wealth fund. The Indigenisation and Economic Empowerment Act is allowing the Zimbabwean Government the ability to acquire stakes in foreign-owned companies. At least 51% of shares of every public company operating in Zimbabwe and any other businesses are mandated to be owned […]

Sovereign Wealth Funds Anticipate Possible American Infrastructure Bank

In our estimate, sovereign wealth funds would look forward to the creation of an American infrastructure bank. The primary reason for this is the infrastructure fund investment returns would most likely surpass treasuries and other current fixed income investments. It is essential to note that not all infrastructure investments are created equal. By observing current […]

Sub-Saharan Africa’s View on Libyan SWF Assets

The Libyan Investment Authority (LIA) had been one of the leading sovereign investors in companies in sub-Saharan Africa. Mr. Gaddafi invested large amounts of funds into various companies, hotel real estate, mining, and infrastructure. Now that Gaddafi’s regime has been toppled, how are the recipient African countries dealing with the current situation? Tanzania is currently […]

Round 2: Thailand Continues to Mull Sovereign Wealth Fund

This isn’t the first time the Government of Thailand has thought of creating a sovereign wealth fund. The previous Thai administration did not move forward. The Bank of Thailand has been instructed by the Thailand Ministry of Finance to study the creation of a sovereign fund and its feasibility. Finance Minister Thirachai Phuvanatnaranubala is giving […]