Archive | July, 2012

Singapore’s GIC Annual Report Released

Singapore’s GIC released their latest annual report. As the investment manager for Singapore’s foreign reserves, the sovereign fund targets long-term investments. They believe in harvesting long-term risk premiums, sometimes even being a contrarian investor. The annualized rolling 20 year real rate of return on March 31, 2012 was 3.9%. Singapore’s GIC reiterated their mandate was […]

ADIC’s Invest AD Launches UCITS Funds That Target Africa and the Arabian Gulf

Invest A.D., which is owned by the Abu Dhabi Investment Council, has created two UCITS funds. The Invest A.D. Emerging Africa Fund and the Invest A.D. GCC Focus Fund. Both funds are registered in Luxembourg and Invest A.D. is regulated by the Dubai Financial Services Authority.Some institutional investors are interested in slowly augmenting exposure to […]

Asian Equities Attract Asian Public Investors

Asian public investors view China and India as key growth drivers whose public equity markets are poised for increases as GDP continues to rise for these countries. Many subscribe to the notion that China and India have the capacity to maintain relatively high economic growth rates compared to European and American economies. The Korea Investment […]

Breaking the Mindset of Short-Termism

Breaking the mindset of the so-called short-termism mentality is a daunting undertaking. In recent days, we have seen the returns of public investors such as the China Investment Corporation, which in 2011 had a -4.3% on their global investment portfolio or CalPERS earning a 1% return for 2011. Public pensions are under a hyper-focused microscope […]

Reference to SWFs, Warning from Dubai Chief of Police

The United Arab Emirates is a nation with tremendous oil resources. It also hosts a number of large sovereign wealth funds, including the Abu Dhabi Investment Authority, the Emirates Investment Authority, and Mubadala Development Company. Dubai’s chief of police Dahi Khalfan told reporters at a gathering late on Wednesday marking the Muslim holy month of […]

China Investment Corporation Returns -4.3% in Global Investment Portfolio in FY2011

In 2011, the China Investment Corporation (CIC) returned a -4.3% on their global investment portfolio. The CIC is a long-term investor. The China Investment Corporation extended their investment horizon to 10 years in January 2011. The cumulative annualized return since inception was 3.8%. The CIC had returns of 11.7% in both 2009 and 2010. In […]

China’s SAFE Commits 500 Million to Real Estate Fund

Low-yielding U.S. treasuries have forced reserve managers in China and other surplus rich nations to look at other assets, in some cases real assets. China’s State Administration of Foreign Exchange (SAFE) continues to look at ways to increase the diversification of their US$ 3.2 trillion in foreign exchange reserves. The SAFE Investment Company has committed […]

Nigeria’s Sovereign Wealth Chugs Forward

Nigeria’s sovereign wealth funds have been a contentious political issue for the country. The direction of natural resource revenue has pitted the Nigerian Governors Forum against the Nigerian federal government. Nigeria is sub-Saharan Africa’s largest crude oil exporter. The one billion dollar authority plans to start operations in the coming months. The Nigerian Sovereign Investment […]

Some Sovereign Investors Bullish on Smallcap Euro Stocks

Norway’s Government Pension Fund Global (GPFG) generated a mandate seeking investment managers for small to mid-cap investments in German, French, Italian, and Greek public stocks. Norway’s GPFG currently has higher than average European equity exposure compared to other sovereign funds. In addition, the fund is looking to diversify from its extensive holdings in British stocks. […]

CNOOC Limited Enters Into Definitive Agreement to Acquire Nexen Inc.

According to the press release, “CNOOC Limited (SEHK: 00883, NYSE: CEO) and Nexen Inc. (TSX: NXY, NYSE: NXY) announced today that they have entered into a definitive agreement under which CNOOC Limited will acquire all of the outstanding common shares of Nexen for US$27.50 per share in cash. The purchase price represents a premium of […]

Mubadala Petroleum and Others to Develop Thailand Offshore Oil Field

Mubadala Petroleum which is owned by the Mubadala Development Company with Tap Energy plans to develop an oil field in the Northern Gulf of Thailand. Mubadala Petroleum owns a 60% operating interest in the exploration field through its Pearl affiliates. Tap Oil Limited also owns a major stake in the concession through its subsidiary Tap […]

BBC, Stanhope Plc, Mitsui Fudosan, and AIMCo Complete Sale of Television Centre

According to the press release, “Today, the BBC and a consortium of Stanhope, Mitsui Fudosan UK and Alberta Investment Management Corporation (AIMCo) completed the sale of BBC Television Centre in West London. The sale follows a year-long selection process. 240 expressions of interest were whittled down to six shortlisted bids which were tested against the […]

RDIF and Private Equity Firm Acquire Stakes in Moscow Exchange MICEX-RTS

The press release states, “Cartesian Capital Group, LLC, a global private equity firm and the Russian Direct Investment Fund (RDIF), Russia’s $10bn government-sponsored private equity fund have acquired stakes in the Moscow Exchange MICEX-RTS from ZAO UniCredit Bank (“UniCredit Bank”). Following this transaction, the RDIF will own approximately 2.7% and Cartesian will own approximately 2.5% […]

SAFE Investment Company to Possibly Buy PE Stakes from GM’s Pension Plan

A number of major American corporate and public pension plans are trying to exit out of investments in their private equity portfolios. The SAFE Investment Company which is part of China’s State Administration of Foreign Exchange may pay between US$ 1.5 billion to US$ 2 billion for General Motors’ pension plan positions in a number […]

Reliance Postpones GTI Trust Listing

Update – July 23, 2012 Reliance Communications has postponed its initial public offering of Global Telecommunications Infrastructure Trust, the Singapore listing of its subsea cable division. — Long-term public investors are attracted to developed infrastructure. Telecommunication network infrastructure is usually owned by companies, governments, or business consortiums. There is an emerging trend for large investors […]

Khazanah’s IHH Healthcare Berhad IPO Heats Up

Khazanah Nasional’s IHH Healthcare Berhad which is Asia’s biggest hospital operator priced its initial public offering to help raise about US$ 2 billion. The IHH Healthcare IPO has attracted institutional investors such as the Kuwait Investment Authority, Government of Singapore Investment Corp, Malaysia’s Employees Provident Fund, and the International Finance Corporation. Other major investors include […]

California Political Influence versus Fiduciaries

Managing public pension fund money with multiple stakeholders is a complex undertaking, dealing with politicians and implementing new legislation is even more challenging. The California Public Employees’ Retirement System (CalPERS), the largest public pension fund in the United States, reported a 1% return on investments for the twelve months that ended June 30, 2012. It […]

Park Alpha Offering SWF Common Equity Ownership Reports

Park Alpha, the consulting division of the Sovereign Wealth Fund Institute, is offering SWF common equity ownership reports. These unique reports are offered by subscription or via on-demand order basis. For sovereign wealth funds and other institutional investors, they can see the amount of SWF ownership in a common equity position. The reports are also […]

Reserve Managers Continue to Flock to Safe Haven Bonds

Ever since the global financial crisis, the ownership structure of sovereign debt in Occidental nations has shifted. Foreign investors have flocked to U.S. Treasuries, Gilts, and core European bonds such as Germany and France. Reserve managers at central banks and monetary authorities have increased asset allocation to these financial instruments. American public pension funds that […]

Temasek Plans Dual Tranche Bond Offering

Singapore’s Temasek Holdings is planning a dual tranche bond offering through its wholly-owned subsidiary, Temasek Financial (I) Limited. The bonds will be issued by Temasek Financial (I) Limited under their US$ 10 billion Guaranteed Global Medium Term Note Program and will be fully and unconditionally guaranteed by Temasek Holdings. The offering will be comprised of […]