Archive | March, 2012

Future Legislation May Allow Sovereign Wealth Funds to Invest in Canadian Financial Institutions

In 2007, Canadian banks were better capitalized than their southern neighbors and in Canada subject to tighter regulation and supervision. Canadian banks did not need taxpayer bailout capital, like the United States or England. There has been a major push especially from the Canadian life insurance sector to allow sovereign wealth funds both foreign and […]

OMERS Ventures Invests $20 Million in HootSuite

Launched in 2011, OMERS Ventures is up and running and made a $20 million investment in HootSuite. It is a secondary purchase from the company’s existing shareholders. It is one of the largest Canadian secondary venture capital deals in the past ten years. Early investors in HootSuite include Hearst Interactive Media, Blumberg Capital, Millennium Technology […]

NTMA and China’s CIC International Sign MoU to Explore Opportunities for CIC in Ireland

According to the press release, “The National Treasury Management Agency and CIC International, a subsidiary of China Investment Corporation, China’s sovereign wealth fund, have today signed a memorandum of understanding to work together in exploring investment opportunities in Ireland. The memorandum was signed in the Great Hall of the People in Beijing by Chairman Lou […]

Mubadala to Invest $2 Billion in Eike Batista’s EBX Group as Part of Strategic Partnership

The Mubadala Development Company and Mr. Eike Batista, the founder of EBX Group of Brazil, today announced the signing of a strategic partnership agreement. Mubadala will make a US$2 billion primary investment in exchange for a 5.63% preferred equity interest in Centennial Asset Brazilian Equity Fund LLC (CABEF) and other offshore holding companies of Mr. […]

IPIC and Mubadala Oil and Gas Create Emirates LNG

Natural gas is gaining tremendous traction among many nations as a viable alternative to oil, especially with the discovery of new extraction and transportation technologies. Sovereign wealth funds and state-owned companies, particularly in Asia and the Middle East are hedging their bets on natural gas and other forms of fuel besides crude oil. Some notable […]

Softbank to Buy Baseball Stadium from GIC

Baseball is a popular sport in Japan and Singapore’s GIC invested capital into an entertainment complex in Fukuoka City a few years ago. Fukuoka City is a major city on the Japanese island of Kyushu. In April 2007, the GIC Real Estate Pte Ltd (GIC RE) acquired Fukuoka Hawks Town from Colony Capital. Singapore’s GIC […]

External Equity Managers and the Need for Specialization

Norway’s Government Pension Fund Global (GPFG), the US$ 611 billion sovereign wealth fund in Europe, cut half its assets managed by external managers in 2011. That ratio is expected to remain low in the future and an expectation of smaller mandates. In addition, Norway’s GPFG only uses one external fixed income manager, Blackrock to manage […]

South Africa Mining Debate and Proposed SWF

South Africa is a major producer of coal, platinum, gold, and chromium. Resource nationalism is a growing trend in Africa and other parts of the world. It is in between full nationalization and total privatization. Countries and states are determining on how they can benefit from increase findings and extraction of mineral wealth. The African […]

Timor-Leste Petroleum Fund Increases Equity Exposure up to 20%

According to the press release, “The Minister of Finance, Her Excellency Emilia Pires, and the Governor of the Central Bank of Timor-Leste, Mr Abraão de Vasconselos, announced that following the revision of the Petroleum Fund law in 2011, significant progress has been made in implementing a new asset allocation of the Petroleum Fund. Based on […]

UK Roads for Sovereign Wealth Funds

Sovereign wealth funds have an appetite for British infrastructure assets, including airports and sewage. UK Prime Minister David Cameron is trying to figure out options to improve funding of roads. The United Kingdom like many debt-ridden European countries has limited resources in public financing besides issuing more debt. Prime Minister Cameron is paving the way […]

China’s NSSF Invests CNY 5 Billion in Cinda Asset Management

China’s National Social Security Fund will invest CNY 5 billion (US$ 788 million) for an 8% stake in Cinda Asset Management Co. The NSSF will be the second largest shareholder behind China’s Ministry of Finance. Other investors include Citic Capital Holdings Ltd., UBS AG, and Standard Chartered PLC. Together with the NSSF the total capital […]

Khazanah Acquires 8.85% Stake in Sri Lanka’s Largest Listed Conglomerate

According to the press release, “Khazanah Nasional Berhad (“Khazanah”) via its Special Purpose Vehicle (“SPV”), Broga Hill Investments Ltd., today acquired an 8.85% stake in John Keells Holdings Plc. (“JKH”), Sri Lanka’s largest listed conglomerate, in a deal worth RM366 million (LKR 14.5 billion). The JKH group has business interests in several key sectors of […]

Norway’s GPFG Returned -2.5% in 2011

Norway’s Government Pension Fund Global (GPFG) returned -2.5% in 2011. This was mostly attributable to global stock market declines. Norway’s GPFG returned -8.8% in equities, while fixed income returned 7%. The sovereign wealth fund had exposure to government bonds from the United States, United Kingdom, and Germany which proved to be beneficial in 2011. With […]

Swiss National Bank Keeps the Minimum Exchange Rate Unchanged

The press release states, “the Swiss National Bank (SNB) will continue to enforce the minimum exchange rate of CHF 1.20 per euro with the utmost determination. It is prepared to buy foreign currency in unlimited quantities for this purpose. The target range for the three-month Libor will remain unchanged at 0.00–0.25%. The SNB will continue […]

Khazanah Issues Exchangeable Sukuk of US$ 357.8 Million

The press release states, “Khazanah Nasional Berhad is pleased to announce the successful issuance of a seven-year benchmark exchangeable sukuk of USD357.8 million (“The Sukuk”), via an independent Labuan incorporated special purpose company, Pulai Capital Ltd., exchangeable into the shares of Parkson Retail Group Limited (“Parkson”), one of the largest department store operators in the […]

North Dakota’s Oil Boom Fueling Legacy Fund

The recent discoveries of massive oil reserves in North Dakota’s Bakken rock formation have given an economic jolt for the state. Oil sits underground in a shale rock formation extending across Canada’s Saskatchewan province, northeastern Montana and western North Dakota. This area is known as Bakken. With the utilization of hydraulic fracturing and high oil […]

Singapore’s GIC Invests in Vasan Health Care

The Government of Singapore Investment Corp (GIC) invested US$100 million in Vasan Health Care Pvt. Ltd through an affiliate. The investment was for a minority stake. Singapore’s GIC will get a board seat. Vasan Health Care is based in India and the funds will be used to expand eye care hospitals, dental treatment centers, and […]

Brief Look at the Yale Endowment Model Versus the Norwegian SWF Model

The saying goes, when too much money is allocated into a strategy, it eventually stops working. How should sovereign wealth fund assets be managed? This is a major question for sovereign wealth funds and countries that are currently implementing them. Some have a preference toward the Norway model of managing SWF money which includes lower […]

SNB Reports Profit of CHF 13.5 Billion for 2011

The Swiss National Bank (SNB) has reported a consolidated profit of CHF 13.5 billion for 2011. In 2010, the SNB posted a loss of CHF 19.2 billion. Consolidated foreign currency positions were a major contribution (CHF 7.7 billion) to the profit number, followed by interest income. From 2010 to the end of 2011, total assets […]

Join us Institute Fund Summit 2012

April 15-17, 2012, Dana Point, CA, United States The Premier Global Summit for Sovereign Wealth Funds, Central Banks, and other Long-Term Public Investors 6 continents are represented by our current delegates.  Learn, network, and participate in an interactive forum. We propose an information-driven, marketing-free forum where attendees share insights, engage in forward-looking discussions and learn […]