Archive | October, 2012

Singapore’s GIC Joins in Genpact Transaction with Bain Capital

On October 25, 2012, Twickenham Investment Private Limited, an affiliate of the Government of Singapore Investment Corporation Private Limited, joined other investors such as Bain Capital Investors, LLC to buy approximately 68 million Genpact Limited common shares from General Atlantic LLC and Oak Hill Capital Management, LLC. The shares were sold at a price of […]

Ferrovial sells 5.72% of Heathrow Airport Holdings to CIC

According to the press release, “Ferrovial has announced the sale of 5.72% of Heathrow Airport Holdings Ltd, previously known as BAA Ltd., to Stable Investment Corporation, a wholly owned subsidiary of CIC International Co., Ltd, for GBP 257.4 million. Ferrovial continues to be the industrial partner in Heathrow Airport Holdings Ltd. Ferrovial, currently the indirect […]

Financial Repression Rears its Ugly Little Head

Public investors are stressed. With guns to their domes, board members at U.S. public pension plans have lowered their target annual return expectations. Governments in Western Europe and the United States are structuring a confined investor pool for their sovereign debt. This domestic pool includes pension funds, banks, and insurance companies. Institutional investors have considered […]

Heliconia Capital Management Keen on Singapore’s SMEs

Heliconia Capital Management, a sovereign wealth enterprise (SWE) of Singapore’s Temasek Holdings, is backing investment in a fund managed by Dymon Asia Capital by allocating S$ 100 million to it. The firm plans to raise S$ 300 million in its Dymon Asia Private Equity fund. The private equity fund plans to target both public and […]

Update – Qatar Draws on Strength of European Financial Brands

The government of Qatar is eager to stimulate the local financial services industry. The Qatar Financial Centre Authority is flexing its muscle to lure international financial organizations to Doha counteracting Dubai’s ability to charm financial firms. Unlike Dubai, Qatar has a massive pool of liquid assets to deploy from commodity revenues. In April 2012, QIA […]

Sovereign Wealth Bankers

Sovereign wealth funds are over US$ 5 trillion in assets. With government bonds in Western countries giving little yield, public pension funds and sovereign funds have an opportunity to become lenders and earn a higher yield. Sovereign debt poses risks as well, real capital can be diminished. As Western banks are hit with a plethora […]

Major Real Estate Transactions in Australia and California

The Government of Singapore Investment Corporation is part of a partnership to invest in an office tower on 101 California Street in San Francisco. The 30-year old tower has 48 floors and is a 1.2 million square-foot property. The building was owned by Nippon Life Insurance Company and Hines. Nippon Life sold its 92% stake […]

Angola Launches Their Sovereign Wealth Fund

The Sovereign Wealth Fund Institute concluded their Asia summit Tuesday afternoon in Singapore. Representatives from Angola’s new sovereign wealth fund called the Fundo Soberano de Angola (FSDEA) attended the summit. Mr José Filomeno de Sousa dos Santos, a member of the fund’s board, keynoted a session introducing Angola’s sovereign wealth fund to sovereign wealth peers, […]

Does North Korea Need a Sovereign Wealth Fund?

The nation of North Korea struggles to improve gross domestic product per capita. According to the Central Intelligence Agency per capita GDP for 2011 was estimated to be at US$ 1,800, a number far lower than South Korea. Sandwiched between China and South Korea, the communist nation has little arable land and a lackluster industrial […]

Temasek Holdings Unloads 8.54% of Welspun Global Brands

Singapore’s Temasek Holdings sold publicly-traded shares of Welspun Global Brands Ltd recently. The sovereign wealth fund sold an 8.54% stake through their sovereign wealth enterprises, Dunearn Investments (Mauritius) Pte Ltd and Baytree Investments (Mauritius) Pte Ltd. Originally, Temasek Holdings held a 9.85% stake in the company.

A Hurrah for Fund-of-Funds

Utilizing fund-of-funds can be beneficial for sovereign investors who lack large internal staff dedicated to alternatives. Many sovereign investors need the capability to have exposure to an asset class quickly. Clearly, there is a trend of direct investing into hedge funds, but public investors also understand they might not have the research capabilities or skill […]

China Continues to Build Ag Ties in the East

Population growth, modifications in tastes and preferences, limited resources, and environmental issues are factors pushing up the price of food. Mega institutional investors want access to agriculture and land as an asset class. Some state-owned investors have a strategic purpose in mind such as creating supply chains of food for their home country. On May […]

Sovereign Money Dancing in Between Fixed Income Strategies

Major benchmark yields are bottoming out. A number of short-term yields in Occidental economies are negative. Loose monetary policy is pushing the risk free rate to zero. Low interest rates are forcing public investors to either diminish annual return expectations or glide along the risk spectrum. For example, in September 2012, the US$ 36 billion […]

Background on Norway’s SWF Government Bond Index Shift to GDP Weights

For nearly 40 years, bond indices have been employed for benchmarking public investor portfolios. The most widely used methodology has been one based on market capitalization. Norway’s Government Pension Fund Global (GPFG) modified their government bond index from a market capitalization-weighted index to one based on gross domestic product (GDP). Norway’s sovereign fund investment in […]

CalPERS and the Multi-Asset Class Partners Program

We call this laboratory investing, a disruptive trend in the asset management industry. The $245.3 billion California Public Employees’ Retirement System (CalPERS) is launching a new program called the Multi-Asset Class Partners Program or MAC program. In September 2011, CalPERS solicited external managers to implement investment mandates known as multi-asset class partnerships. The results have […]

Norway’s SWF Makes First Property Investment in Germany

The press release states, “the Norwegian Government Pension Fund Global and joint venture partner AXA France Insurance Companies have agreed to buy two buildings in Germany for a total of 784 million euros, or approximately 5.8 billion kroner, from the Royal Bank of Scotland. The transaction, set to be completed before year-end, gives each partner […]

CBRE Global Buys $1.6 Billion Stake in Japan Portfolio from GLP

The press release states, “Global Logistic Properties Limited (“GLP”), one of the world’s largest providers of modern logistics facilities, today announced the sale of 16.7% of the total outstanding equity of GLP Japan Logistics Partners (“GLP-JLP”)[Legal entity known as “Light Year One Holdings Ltd.”] to clients of CBRE Global Multi Manager for JPY7.6 billion. CBRE […]

PBOC Pumps 265 Billion Yuan into Banking System

The People’s Bank of China (PBOC) pumped 265 billion yuan (US$ 42.14 billion) into the country’s banking system to jolt their economy. The PBOC is attempting to lower money market rates. This is the second monetary injection in two weeks. In addition, this is the second largest liquidity injection of its nature in China. Over […]

Qatar’s Strategic Development Investing in France

The government of France is attempting to attract Gulf foreign investment, especially in its poor suburbs (les banlieues). Officials from France and Qatar met to discuss economic opportunities. In August 2012, the government of Qatar inked the idea of a fund between the size of €200 to 300 million to invest in small and medium […]

Norway’s SWF Buys 50% of Meadowhall Shopping Centre in the UK

According to the press release, “The Norwegian Government Pension Fund Global has bought 50 percent of the UK shopping centre Meadowhall for £348 million, or approximately 3.2 billion Norwegian kroner. The stake was purchased from a joint venture between London & Stamford Properties and Green Park Investments. The transaction, completed on 6 October, values the […]