Archive | August, 2012

Bernanke Speech – Monetary Policy Since the Onset of the Crisis

Below is a speech spoken by Federal Reserve Chairman Ben S. Bernanke at the Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming on August 31, 2012 Monetary Policy since the Onset of the Crisis When we convened in Jackson Hole in August 2007, the Federal Open Market Committee’s (FOMC) target for the […]

Diving into BNY Mellon’s Legal FX Issues Involving Pensions and SWFs

Over the past few years, public investors have been keen and attentive on custodial banks’ foreign exchange practices. Public investors rely on financial institutions to uphold their fiduciary responsibilities. When investment returns were high and assets were growing, many pension funds neglected to pay much attention to custodial fees and foreign exchange costs. The global […]

Goodman and CPPIB Increase Commitment To China Partnership To US$1 Billion

The press release states, “Goodman Group (Goodman or Group) and Canada Pension Plan Investment Board (CPPIB) are pleased to announce that they have increased their equity allocation to Goodman China Logistics Holding (GCLH) by an additional US$500 million, with US$400 million contributed by CPPIB and US$100 million by Goodman. GCLH was formed in 2009 to […]

Changing Sentiments Return Versus Liquidity

Official foreign reserves are key national assets and poor governance and management may put economic policy tools at risk. Managing reserve assets differ than managing public pension money and sometimes even sovereign wealth fund assets. Their similarity lies in that they are public assets or assets owned by a public group. In most cases, reserve […]

Nigerian Sovereign Investment Authority Moves Forward With 1 Billion

According to the press release, “Implementation of the SWF will commence with an initial fund of $1 billion. Speaking on the issue, Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala stated that ‘The establishment of an institutional foundation for the Sovereign Wealth Fund is a victory for all Nigerians and a […]

Update – 2005 to 2011 SWFs Target Financials, Real Estate and Infrastructure

The long-term trend for direct sovereign wealth fund investment by sector is in. Starting in 2005 until the end of 2011, the financial sector is the most targeted for direct sovereign wealth fund investment. We calculate this from our most recent database statistic of US$ 164.91 billion ending calendar year 2011. The financial sector is […]

Temasek with Other Investors Park Money into CardioDx

Singapore’s Temasek Holdings along with other backers such as Kleiner Perkins Caufield & Byers, Mohr Davidow Ventures, TPG Biotech and GE Capital committed up to US$ 58 million in CardioDx Inc. in two-tranche equity financing. The investment round includes US$ 30 million currently, and the rest possibly near the end of the year. In recent […]

Singapore’s GIC Offloads Some PE Interests to CS Strategic Partners

CS Strategic Partners, the secondary private equity group of Credit Suisse, won the bidding to purchase a portfolio of private equity interests from Singapore’s GIC. CS Strategic Partners purchases secondary interests in private equity funds from investors needing liquidity. In the overall scheme of private equity, the secondary market is still a niche sector. Singapore’s […]

Future Fund Bids for Listed Australian Infrastructure Fund

According to the press release, “The Future Fund Board of Guardians confirms that it has entered into a Memorandum of Understanding (MOU) with the Australian Infrastructure Fund (AIX) to acquire all of AIX’s portfolio assets as part of an agreed transaction. David Neal, Chief Investment Officer at the Future Fund said: “Australian infrastructure assets are […]

Ohio State Teachers’ Retirement System Delivers 2.34% in Latest Fiscal Year

The Ohio State Teachers’ Retirement System delivered 2.34% in the latest fiscal year ending on June 30, 2012. The Ohio pension fund has US$ 63.8 billion under management. The top performing asset class real estate anchored away 13.6% for the year. The worst performing asset class was international stocks at -11.39%. In recent months, the […]

Qatar Holding Invests in 22.22% Stake in CITIC Capital Holdings Limited

According to the press release, “CITIC Capital Holdings Limited (CITIC Capital) is pleased to announce that Qatar Holding LLC (Qatar Holding) has subscribed for new shares in CITIC Capital, equivalent to 22.22% of the ownership in CITIC Capital. After issuance of the new shares, CITIC Pacific Limited and CITIC International Financial Holdings will jointly hold […]

CIC and Singapore’s GIC Invest in Cheniere Energy’s Export LNG Plant

Energy assets are of increasing importance to Asian sovereign investors. There is Asian demand for liquefied natural gas. The China Investment Corporation (CIC), Blackstone Group LP, Government of Singapore Investment Corporation (GIC), and the Louisiana Teachers Retirement System invested a total of US$ 1.5 billion in Cheniere Energy Partners’ export liquefied natural gas (LNG) plant. […]

Sovereign Wealth Funds Bid for European Private Equity Interests

Sovereign wealth funds famously known for their long-term investment horizons are bidding for private equity interests in institutional portfolios. In fact, a number of the large SWFs are honing in on alternative assets such as real estate, hedge funds, and private equity. A number of European pension funds and insurance companies are looking to sell […]

Qatar Holding to Take 20% Stake in UK Airport Operator

Qatar Holding LLC, the sovereign wealth enterprise of the Qatar Investment Authority (QIA), is purchasing a 20% indirect stake in Heathrow owner BAA Ltd. The Qatar sovereign fund has been a major institutional investor in the United Kingdom and believes the British economy holds great long-term prospects. Qatar Holding is buying 10.62% of the stake […]

OTPP and KIRKBI Make EUR 500 Million Equity Investment in ISS

The press release states, “Global long term investors Ontario Teachers’ Pension Plan (Teachers’) and KIRKBI Invest A/S have agreed to invest EUR 500 million (approximately DKK 3,721 million) in ISS, a leading global provider of facility services. The current owners, funds advised by EQT Partners (“EQT”) and GS Capital Partners funds (“GSCP”), are not selling […]

CalPERS Commits $530 Million to Asia Real Estate Funds

According to the press release, “The California Public Employees’ Retirement System (CalPERS) today announced a $530 million investment commitment to two new real estate funds that will target investments in China. CalPERS will invest $480 million to the ARA Long Term Hold Fund sponsored by ARA Asset Management, a member of the Cheung Kong Group. […]

National Pension Service of Korea Partners with Dexus Property Group

Asian public investors continue to see value in Australian institutional real estate. The National Pension Service of Korea has agreed to co-invest $360 million AUD for 50% ownership in thirteen industrial properties in Australia with Dexus Property Group. The properties are at the Quarry in Greystanes, Sydney, the DEXUS Industrial Estate in Laverton North, Melbourne, […]

China Investment Corp and Blackrock Back China Fund

Sovereign wealth funds are constructing strategic alliances with asset management companies. The China Investment Corporation (CIC) and Blackrock Inc., an asset management firm, are sponsoring a China-focused investment fund. The fund is called China Global Opportunities Fund and is pursuing to raise US$ 2 billion. The fund is reported to receive a commitment of up […]

Outage in India May Draw Large-Scale Public Investors

In late July 2012, India experienced the worst power outage in their history. More than 680 million people, more people than the United States, Mexico, and Canada combined were without electricity. India had a second outage. Factories, offices, and other buildings at the time either switched to backup generators or closed temporarily. Backup generators in […]

Sovereign Wealth Themes: I Will Pay to Park My Cash

This report is available for download for SWFI subscribers. This report gives a brief overview and some possible solutions for public investors confronted in a low-yield fixed income environment. What are sovereign wealth funds and public investors to do in this low and sometimes the case negative yield environment when it comes to fixed income […]