Archive | September, 2012

KazMunaiGaz Pays 142 Billion Tenge Dividends Worth to Samruk-Kazyna

KazMunaiGaz National Co., a state-owned oil and gas producer paid 142 billion tenge (US$ 947 million) in 2011 dividends to Samruk-Kazyna, the sole shareholder. Samruk-Kazyna is a sovereign wealth fund of Kazakhstan. KazMunaiGaz’s 484 million ordinary shares are owned by Samruk-Kazyna. 2010 dividends paid amounted to 45.8 billion tenge.

Khazanah Creates SPV with India’s IDFC

Khazanah Nasional Berhad created a special purpose vehicle (SPV) together with a subsidiary of India’s Infrastructure Development Finance Company (IDFC). The SPV will have RM 478 million in equity capital. The SPV will assist in financing India’s national highway construction projects. In 2011, Khazanah Nasional and the Infrastructure Development Finance Company created a joint venture […]

See the Keynotes – Institute Fund Summit Asia 2012

October 21-23, 2012, Singapore (Sentosa Island) The Premier Global Summit for Sovereign Wealth Funds, Central Banks, and other Long-Term Public Investors 5 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 relevant, timely […]

Insourcing Assets is Not the Solution for all Public Investors

Excluding certain asset classes, several trends and studies point out that internal management of fund assets may outperform external managers after fees. There is a major push among public funds to insource more assets. A number of the massive Canadian pension systems have a higher proportion of assets managed in-house. On the other hand, a […]

Florida’s State Pension System Purchases Stake in Providence Equity

Increasingly, private equity firms are selling teaser stakes to large public investors, whether public pension funds or sovereign wealth funds. Providence Equity Partners Inc sold a combined stake of less than 10% to the Florida Retirement System Pension Plan and a sovereign wealth fund who are limited partners in their funds. The stake for the […]

SOFAZ Buys Physical Gold

Sovereign investors view gold as a store of value, an alternative currency to dollars, yen, and euros. Sovereign funds in the Middle East feel that Western nations have excessive fiscal debt, which leads to quantitative easing to make it easier to service debts. Azerbaijan’s State Oil Fund (SOFAZ) is diversifying their portfolio by planning to […]

Enbridge, Borealis Infrastructure and NextEra Partner to Bid for Northern Ontario Power Line Project

According to the press release, “NextEra Energy Canada, Enbridge and Borealis Infrastructure announced today that they have filed for regulatory approval to allow Enbridge and Borealis to acquire interests in NextEra Energy Canada’s subsidiary, Upper Canada Transmission, Inc. Upper Canada Transmission, Inc. intends to bid for the opportunity to develop a new transmission line in […]

Ontario Dreams of Creating Two Mega Pension Funds

The Canadian province of Ontario is debating the development of two mega pension funds to manage the retirement savings of public sector workers. To be clear, no formal policy decisions have been made by Ontario officials. In theory, the two mega funds would manage C$ 60 billion in pension assets, with one managing C$ 46 […]

CVC Capital Sells Stake to SWFs

Singapore’s GIC and the Kuwait Investment Authority among other institutional investors have taken a combined 10% stake in CVC Capital Partners Ltd. (CVC). Sovereign investors are using their purchasing power to better negotiate fees and terms with private equity firms. The investment allows CVC flexibility to finance additional investments and expand their infrastructure and credit […]

Alibaba Receives SWF Investment to Help Buyback Shares from Yahoo

According to the press release, “Alibaba Group Holding Limited, China’s largest ecommerce company, announced today it has completed the initial repurchase of shares from Yahoo!and restructured its relationship with the Silicon Valley company in transactions valued at approximately US$7.6 billion. The closing follows the May 20, 2012 announcement by Alibaba Group and Yahoo!of a comprehensive […]

Qatar Central Bank and Qatar Holding to Establish Assessment and Rating Agency

The governor of Qatar’s central bank recently mentioned the country will establish an assessment and rating agency for domestic non-government debt issuers and institutions. The rating agency will be a joint venture between Qatar Central Bank and Qatar Holding, LLC. The rating entity is slated for 2013. The enduring challenge will be in the credibility […]

Kuwait Increases Contribution to Future Generations Fund

The Kuwait Investment Authority (KIA) manages the assets of Kuwait’s Future Generations Fund (FGF). In 1976, Kuwait’s Crown Prince Jaber al-Ahmed al-Jaber al-Sabah who was the deputy emir of Kuwait issued a law creating the Future Generations Fund. The FGF is savings fund for future generations where assets are invested outside of Kuwait. Investment income […]

Dutch PGGM Purchases 60% Stake in UPP Group Holdings Ltd.

Dutch pension fund manager PGGM Vermogensbeheer B.V. purchased a 60% stake in UPP (University Partnerships Programme) Group Holdings Ltd. from infrastructure funds managed by Barclays Plc. It is the United Kingdom’s second biggest student housing operator. The deal is valued at around £840 million. PGGM manages six pension funds and is based in city of […]

GIC and UNITE Group plc Extend Joint Venture

Sovereign wealth funds can be a patient source of capital for property development firms in metropolitan markets. Student housing in central London continues to attract banks and foreign investors. By creating joint ventures, sovereign investors assist real estate development firms lessen debt impact on their balance sheets, enabling financial flexibility. There are risks to investing […]

Russia to Re-Organize Sovereign Funds

The government of Russia is planning to re-organize their wealth funds, management of foreign debt and other investment entities into a state-owned investment agency. The new Russian Federal Financial Agency (FFA) also known as Rosfinagentstvo plans to invest excess commodity revenue in a wide range of assets. There are plans to transfer the sovereign fund […]

Federal Reserve Pursues Easy Money Includes Mortgage Purchases

Financial repression is crushing savers and pensioners to benefit borrowers. Conservative investing public funds will be negatively affected disproportionately than sovereign funds who invest in more alternative and equity-like assets. Central bank intervention is coming. The Federal Reserve is propagating the message of easy money for the next few years. They plan to extend current […]

Algeria’s Foreign Reserves Grow to US$ 186.32 Billion in June

Currently, Algeria produces an average of 1.2 million barrels per day of oil. Algeria’s foreign reserves grew by 2.2% to US$ 186.32 billion at the end of June 2012 comparing it to June 2011. In the first half of 2012, Algeria’s oil and gas exports fell by 2.29% and the value of oil exports increased […]

Temasek and Others Seek to Purchase TPG’s Stake in Shriram Transport

Temasek Holdings, Bain Capital, and Piramal Group are seeking to acquire a 20% stake in Shriram Transport Finance Company Ltd. (STFC) from private equity firm TPG Newbridge. Shriram Transport Finance Company Ltd. is India’s biggest commercial vehicle financier.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Sovereign Wealth Funds Invest in China Pacific Insurance Company

The Government of Singapore Investment Corporation Private Limited is subscribing to a Hong Kong H-share private placement by China Pacific Insurance (Group) Co Ltd (CPIC). The subscription amount is up to US$ 700 million. The CPIC is a major insurer in China. Singapore’s GIC held 2.3% of shares prior to the private placement. Other sovereign […]

China, APEC, and Sovereign Wealth Funds

Chinese President Hu Jintao pushed the theme of increased Asian infrastructure to stir up demand at the recent Asia Pacific Economic Cooperation (APEC) summit held this year in Vladivostok, Russia. The National Development and Reform Commission (NDRC), China’s economic planning entity approved 60 infrastructure projects costing around US$ 157 billion. China is preparing to grow […]