Archive | January, 2012

New Zealand SF Releases Performance Data

The New Zealand Superannuation Fund (NZSF) has a -5.28% FYTD return in 2011/2012. Since inception it has an annualized return of 6.63%. Returns are after fees but before New Zealand tax paid. In FY 2009-2010, the fund returned 15.45% and in FY 2010-2011 the fund returned 25.05%. 58.6% of the portfolio was exposed to global […]

Future Fund Releases Performance

According to the press release, “Since the first contribution to the Future Fund on 5 May 2006, the Fund has generated a return of 4.2% per annum. The Future Fund’s return for the calendar year 2011 was 1.6%. The return for the quarter to December 2011 was minus 0.2% and for the first six months […]

EBRD and RDIF Buy into Russia’s MICEX-RTS Exchange

The press release states, “The EBRD and the Russian Direct Investment Fund (RDIF) have agreed to acquire a 6.29 percent and 1.25 percent stake respectively in Russia’s MICEX-RTS stock exchange. The investment is part of a long-term strategy to promote the development of local capital markets in Russia and broaden the regional and international appeal […]

New Mexico SWF Updates Private Equity Strategy

The New Mexico State Investment Council (NM SIC) is updating its long-term strategy for its private equity portfolio.  One major change includes committing around $350 to $450 million per year to private equity until 2016. In addition, like other public investors, the long-term strategy includes larger commitments to a smaller pool of managers, thus limiting […]

Fed vs. China’s Balance Sheet Growth

This graph plots a change in the growth of the balance sheet of the Federal Reserve versus the People’s Bank of China (PBOC) in a percentage of gross domestic product (GDP). In recent years, China has expressed serious concern about the unprecedented growth of the Federal Reserve’s balance sheet and how it may impact the […]

Qatar’s SWF Nears Deal in Credit Suisse Office in London

The Qatar Investment Authority (QIA) is nearly completing the acquisition of Credit Suisse’s London headquarters. The QIA would pay £330 million for the property located in the financial district called Canary Wharf. There will be a separate sale-and-leaseback agreement to be used with Credit Suisse. The 21 floor office property is at 1 Cabot Square […]

Major Foreign Holders of Treasury Securities

Updated information on the research and statistics page. We now have Major Foreign Holders of Treasury Securities up now. To view

Possible Major Org and Strategy Changes at TPSF

The US$ 24 billion Texas Permanent School Fund (TPSF) is currently under the Texas State Board of Education. This means all major policy, personnel and management decisions have to be made by the Texas commissioner on education. There are heavy talks to streamline bureaucracy and efficiency of having the fund be managed by a non-profit […]

CalPERS 1.1% ROI for 2011

The California Public Employees’ Retirement System (CalPERS) received a 1.1% return on investment for 2011. It is far short than its 7.75% rate of return assumption. Pension investors have been greatly affected by capital market volatility. Many have been forced to reduce return assumptions, increase allocation to illiquid investments, and further exposure to emerging markets. […]

New EU Sanction Iran on Nuclear Programme

According to the press release, “Given the EU’s serious and deepening concerns over the Iranian nuclear programme, the Council today broadened the EU’s restrictive measures against that country. Today’s decisions target the sources of finance for the nuclear programme, complementing already existing sanctions. The Council banned imports of Iranian crude oil and petroleum products. The […]

ADIA and Rockpoint Plan to Sell Devonshire Square Estate

As core real estate in London is growing in institutional investor demand, many buyers at the top in 2006 and 2007 are thinking about selling.  Maturing debt is putting pressure on real estate owners who purchased properties before the financial crises.  The Abu Dhabi Investment Authority (ADIA) and Rockpoint Europe Limited are planning to sell […]

Saudi Aramco and Sinopec Create YASREF JV

According to the press release, “Saudi Aramco and China Petrochemical Corporation (Sinopec) have agreed to formation of a joint venture related to the ongoing development of Yanbu Aramco Sinopec Refining Company (YASREF) Limited, formerly the Red Sea Refining Company. Presided over by His Excellency, Ali Ibrahim Al-Naimi, Minister of Petroleum and Mineral Resources and chairman […]

China Investment Corporation Invests in Thames Water

In December 2011, the Abu Dhabi Investment Authority (ADIA) purchased 9.9% of Kemble Water Limited, the holding company of Thames Water. The private regulated utility company is responsible for the public water supply and waste water treatment in parts of Greater London, Thames Valley, Surrey and other areas. The utility is regulated by the Office […]

Singapore’s GIC Increases Investment in Li Ning Co

Asian sovereign wealth funds are keen on China’s growing retail consumer sector. Both of the Singapore SWFs have a deep history investing in China.  On January 20, 2012, an affiliate of the Government of Singapore Investment Corporation Pte Ltd and TPG Capital will invest in convertible bonds in Hong Kong-listed China sportswear brand Li Ning […]

Canadian Pensions Plug 80 Million into Brazilian Shopping Centre

Canadian public investors have been active in Latin America whether in direct company stakes, infrastructure, or core real estate. The Canada Pension Plan Investment Board (CPPIB) and Caisse de depot et placement du Quebec each invested $40 million to have full ownership in a beachfront shopping centre in Brazil’s Rio de Janeiro. The 138-store shopping […]

KIC Sees Opportunity in Europe and Real Assets

The Korea Investment Corporation (KIC) views some European assets as attractive even during the current European sovereign debt crises. Middle East sovereign funds have shown lukewarm interest in direct European bank investment. Depending on individual liquidity needs, certain European governments and businesses are selling assets to raise cash, and sovereign wealth funds want to be […]

Aabar Bets on UniCredit

Continental European financial institutions are in dire need of capital due to regulations, a frigid regional credit market environment, and the conditions of their balance sheets. Institutional money managers are watching who will step in first to invest in these upcoming rights issues. In 2007 and 2008 sovereign wealth funds mostly from Asia and the […]

Ireland Moves Towards Strategic Domestic Development

Ireland’s National Pensions Reserve Fund (NPRF) is allocating more money to domestic investments rather than overseas. This change in investment policy to invest more capital domestically stems from political and economic policy shifts. France and Italy have taken similar measures by creating strategic domestic investment funds. These strategic direct investment funds invest in companies that […]

CalPERS Has Lower Target Allocation to Venture Capital

Venture capital is a risky asset class and has left a sour taste in the mouths of many public pension funds after the 2000 bust. With that being said, several large Canadian public investors in the East are allocating small portions of assets to venture capital, even creating dedicated venture capital teams. The California Public […]

The Art of Liquidity Investing for Sovereign Funds

Several sovereign wealth funds invest a portion of their assets to capture and harvest the illiquid premium. Hence the improved aggregate demand for private equity, real estate, and infrastructure investments. Given their long-term nature, more and more SWFs are searching for means to capture this premium and capitalize on it. Take for instance Europe’s largest […]