Archive | October, 2011

Norway’s Oil Fund Drops Fannie and Freddie

In general, current U.S. mortgage debt investments are souring for institutional investors. Last week, Fannie Mae and Freddie Mac mortgage bonds fell after the United States FHFA made clear changes in guidelines for a government-supported refinancing program. Refinancing risk is a major concern for bond investors, especially in today’s low yielding fixed-income markets. The institutional […]

Sovereign Wealth Appetite for EFSF

Can sovereign wealth funds play a role in the saving of Europe? The European Financial Stability Facility (EFSF), a Luxembourg incorporated entity, has been in the news headlines in recent months. The EFSF will eventually be worth US$1.5 trillion after European leaders agreed to leverage existing guarantees 5x. Germany, France, and Italy are the three […]

Kuwait VC SWE Invests in NeuString

Established in November 2002, the National Technology Enterprises Company (NTEC) is a sovereign wealth enterprise of the Kuwait Investment Authority (KIA) that invests in technology companies and venture capital funds. NeuString received Series B financing from investors such as NTEC, Intel Capital, along with new and existing private shareholders. NTEC was capitalized with US$ 350 […]

OMERS to Open Office in New York City

The Ontario Municipal Employees Retirement System (OMERS) is one of Canada’s largest public pension funds. OMERS plans to open an office in New York City as it moves further into the American private market investment sector. About 30 investment analysts specializing in private equity, real estate, and infrastructure will be staffed there. Earlier, the China […]

Government of Singapore Investment Corporation Invests US$300m in Avolon

According to the press release, “Avolon, the international aircraft leasing group, today announces that it has successfully secured a third round of equity capital with a US$300 million equity commitment from the Government of Singapore Investment Corporation (‘GIC’), subject to customary regulatory approval.” The press release further states, “Avolon announces a US$300 million equity capital […]

Public Information: Yves Mersch: Current Challenges in the Sovereign Debt Crisis

This is public information released by the BIS. Speech by Mr Yves Mersch, Governor of the Central Bank of Luxembourg, at the SWF (Sovereign Wealth Fund) Forum, Montreux, Switzerland, 24 October 2011 To download the full speech (BIS) To download the full speech (SWF Institute) Ladies and Gentlemen, It is my pleasure and privilege to […]

Malaysia’s EPF Allocates More to Sukuks

The adoption of Islamic finance as a viable asset class is gaining traction among SE Asian sovereign institutional investors.  Malaysia’s Employees Provident Fund (EPF) is boosting fund allocation in Islamic bonds.  In October 2010, the fund held $650 million in sukuks.  They want to have a total allocation of $1.75 billion towards Islamic finance instruments.  […]

Temasek Holdings to Raise S$800 Million

Temasek Holdings could raise up to S$ 800 million (US$ 632 million). The debt raise is through a combination of S$ 650 million in zero coupon guaranteed exchangeable bonds due 2014 and a greenshoe option to increase the size of the issue by an additional S$ 150 million.[ Content protected for Sovereign Wealth Fund Institute […]

IPIC Increases OMV Stake

More and more sovereign investors are seeing value investing directly into European companies.  Abu Dhabi’s International Petroleum Investment Company (IPIC) increased its stake in OMV Aktiengesellschaft from 20.4% to 24.9%. IPIC now holds 81,490,900 shares. The IPIC is an active investor in energy companies and a long-term investor in OMV. In fact, IPIC has invested […]

Kuala Lumpur International Financial District Gives Incentives

The Kuala Lumpur International Financial District (KLIFD) is a joint development project to strengthen and centralize Kuala Lumpur’s finance hub.  The KLIFD also wants to be a destination for the Islamic finance industry.  Kuala Lumpur has over 1.6 million people and Bursa Malaysia is based in the city. The US$ 8 billion (RM 25.07 Billion) […]

Qatar Holding Sees Opportunity in European Crisis

Qatar Holding has actively been investing in direct company stakes in continental Europe for quite some time. Over this past year, Qatar Holding purchased direct stakes in numerous European ventures such as a Parisian football club and Spanish energy firm Iberdrola. Some European firms are starved for capital due to the European banking crisis which […]

Saskatchewan Politician Keen on Potash-Based Sovereign Wealth Fund

The Canadian province of Saskatchewan produces around half of the world’s known potash. Potash is mostly used for fertilizers and is a key import for emerging market food supplies. The province extracts royalties from potash production based on potash prices. Alberta has their Heritage Fund and now Canada’s New Democratic Party (NDP) political leader Dwain […]

Legislation Creates CFO and Placement Agent Rules for CalPERS

California Governor Jerry Brown signed key legislation that gives CalPERS the authority to establish an official Chief Financial Officer position. Other bills signed and related to CalPERS include prohibiting CalPERS board members and executive employees from representing another entity before CalPERS and CalSTRS to influence specified actions for a 4-year period. A big piece includes […]

The New Russia-China Investment Fund

In the past few years, China and Russia have increasingly been improving bilateral economic ties.  The China Investment Corporation (CIC) is making its presence known in Russia. CIC has already invested in a number of small scale investments in Russia and around Central Asia. They purchased a stake in Russia’s VTB Bank for US$ 100 […]

SWF Forum Europe 2011 – Limited Seating Left

Sovereign Wealth Fund Forum Europe 2011 October 23-25, 2011, Montreux, Switzerland October 14th is the last day to register. We propose an information-driven, marketing-free forum where attendees share insights, engage in forward-looking discussions and learn relevant, timely market intelligence. This is an exclusive event for institutional investors and C-Level Investment Executives who want to interact […]

Central Huijin Buys Local Major Bank Shares

Central Huijin Investment Co, the sovereign wealth enterprise of the China Investment Corporation is purchasing more shares in two of China’s major banking institutions. On Monday, Central Huijin Investment Co. purchased 39.1 million shares of the Agricultural Bank of China. They also purchased 14.6 million shares of the Industrial and Commercial Bank of China. This […]

Kuwait Investment Authority Plans Office in Beijing

The Kuwait Investment Authority (KIA) is planning to open a representative office in Beijing. This signifies Kuwait’s increasing appetite for investment opportunities in mainland China, thus tightening Sino-Kuwait economic and political relations. Already, the Kuwait Investment Authority has participated in a number of noteworthy Chinese initial public offerings and investments.

Qatar Holding Makes Golden Inroads

There has been broad speculation that Qatar Holding, the sovereign wealth enterprise of the Qatar Investment Authority wants to allocate more capital in gold. Not so much in gold exchange-traded funds, but rather in gold producing companies. These types of direct investments are riskier by their very nature, but can have a greater return payout. […]

New Zealand Superannuation Fund Releases 2011 Annual Report

The New Zealand Superannuation Fund has released their 2011 annual report. The report gives a stern warning that over the long-run there will be good years and bad years. The NZSF has spent this past year strengthening their framework for strategic tilting and moved capital in new value-add strategies. Learn more: View Report

Thailand No Longer Pursuing Sovereign Wealth Fund

The Bank of Thailand and Thailand Ministry of Finance have agreed to not use the country’s foreign reserves to create a sovereign wealth fund. There was a significant internal debate among Thailand’s governmental financial bodies on if it was feasible to create a sovereign wealth fund. Including Thailand, the majority of Asian countries intervene to […]