Archive | January, 2013

Denmark’s ATP Returns 10% for 2012

The press release states, “Denmarks largest pensionsfund ATP delivered satisfactory results in 2012. The return was DKK 58bn and the profit for the year DKK 10bn. This profit level means that ATP’s reserves now amount to DKK 84bn and the assets under management to DKK 624bn. “As a pension fund, it’s crucial that we deliver […]

$217 Left in Zimbabwe’s Government Coffers

Zimbabwe Finance Minister Tendai Biti said on January 29, 2013, “Last week when we paid civil servants there was $217 (left) in government coffers.” He further added to local reporters, “The government finances are in paralysis state at the present moment. We are failing to meet our targets.” Zimbabwe’s cash strapped government is feeling the […]

Stichting Pensioenfonds UWV Increase Alternative Allocation to 17%

Stichting Pensioenfonds UWV based in the Netherlands is growing its allocation to alternatives to 17%. This was from 9%. The implementation of the augmented allocation will be around three years. In addition, pension fund management costs are expected to increase from €14 million to €20 million. The allocation increase in alternatives will decrease allocation to […]

Currency Wars, Boon for Sovereign Fund Asset Growth

Japanese Prime Minister Shinzo Abe desires the central bank to ease monetary policy to counter deflation and encourage export-led growth. Trillions of yen are to be pumped into the Japanese economy from asset purchases. Tokyo’s foreign-exchange policy could be a catalyst for a future Asian currency war. The Bank of Japan (BOJ) announced an open-ended […]

Singapore’s GIC Participates in Laxfield Capital’s UK Commercial Mortgage Programme

The press release states, “Laxfield Capital, the commercial mortgage origination, investment management and advisory business, today announced the launch of a new UK commercial lending programme. The programme will invest up to £1 bn in UK commercial mortgages over the next 24 months. The real estate arm of the Government of Singapore Investment Corporation (GIC) […]

RAK Investment Authority Invests in African Consolidated Resources

African Consolidated Resources plc is a listed company engaged in mining exploration activities in Zimbabwe. On January 21, 2013 the sovereign wealth fund of RAK Investment Authority through their sovereign wealth enterprise Brimfell Investment Holdings Limited subscribed to 45,000,000 in new shares. African Consolidated Resources plc had an agreed subscription of 54,330,200 new ordinary shares […]

Federal Reserve’s Balance Sheet Tops $3 Billion

For the first time in history, the Federal Reserve has grown its balance sheet passing US$ 3 trillion. To bring this into perspective, the Federal Reserve’s balance sheet on September 10, 2008 was US$ 924 billion. The bond buying program (quantitative easing) is designed to add tinder to the economic recovery by undertaking open-ended purchases […]

Domestic Private Equity Programs, New Mexico Increases Allocation

Key stakeholders at sovereign wealth funds and public funds slowly push the mandate of domestic strategic investing to stimulate local development. This is not a new concept, and usually gains traction when unemployment is high. There are obstacles in implementing such a domestic private equity investment program. Two significant hurdles include proper return measurement mechanisms […]

Falkland Islands Receives Initial Deposit for SWF

The government of the Falkland Islands has made an initial transfer of £8.274 million to the new Oil Development Reserve. This first deposit is their goal towards emulating a sovereign wealth fund based on the Norwegian model. Oil exploration firms are aiming at 8.3 billion barrels in the area around the Falkland Islands. The region […]

Regulatory Risk in Infrastructure, Norway to Cut Tariffs

Regulatory risk is a significant risk when investing in energy infrastructure. Policymakers can enact legislation, impacting the return on investment and increase liabilities. The Norwegian Ministry of Petroleum and Energy is proposing cutting tariffs to ship gas through its pipelines by 90%. This proposed reduction would apply to new contracts. Major areas of the Gassled […]

Wanted: Sovereign Wealth Funds to Join Dell Deal

Mega U.S. buyout deals involving public investors in consortiums are a rare occurrence. Several large sovereign funds and public investors are keen on these types of consortium deals; however, they are stapled with unwanted public attention. In addition, if the investment sours, then public funds won’t hear the end of it in the media and […]

Russian Ministry of Finance to Transfer 900 Billion Rubles to Reserve Fund

2012 has come to a close; Russia is preparing to fill up its reserve fund, the initial sovereign wealth fund of Russia. Created in 2004, the reserve fund assists in fiscal budget stabilization if global oil prices decrease at a certain price level. The reserve fund invests in conservative fixed income securities, typically low-yield and […]

NZSF Returns Positive 19.17% for CY 2012

The New Zealand Superannuation Fund (NZSF) posted a 19.17% return for the twelve months ending December 31, 2012. In addition, the NZSF finished 2012 at a record high for the December month-end of $20.92 billion, up from $17.73 billion at the end of 2011. The 5-year return (from December 31, 2012) was 4.02%. The value […]

Korea’s SWF Posts 11.83% Return for 2012

The Korea Investment Corporation (KIC) posted an 11.83% return on investment for 2012. The KIC topped the benchmark yield of 11.17%. The KIC posted a net asset value of $56.6 billion for 2012. The negative effects of deleveraging in developed economies have lowered return expectations for sovereign funds and some public investors. Sovereign funds have […]

Public Release – 4Q 2012 Linaburg-Maduell Transparency Index Ratings

The fourth quarter results for 2012 on sovereign wealth fund transparency have now been released to the public. The Emirates Investment Authority moved from a 2 to 3. The National Development Fund of Iran which is a new fund is initially assessed as a 5. Click on the index image to increase size. Read more […]

CPPIB Joins Platform to Access Private Debt Opportunities

CPPIB Credit Investments Inc., a wholly-owned subsidiary of the Canada Pension Plan Investment Board (CPPIB) joined as a joint venture partner and investor in MerchCap Solutions LLC, formerly known as KKR-SPC Merchant Advisors. CPPIB Credit Investments Inc. is joining KKR & Co. L.P. and Stone Point Capital in the middle-market credit platform. Mark Jenkins, Head […]

Oregon Takes Page from the Canadian Public Pension Model

Oregon State Treasurer Ted Wheeler introduced Senate Bill 120 (Oregon) which would turn the US$ 74 billion Oregon Investment Council (OIC) into a public corporation. The public corporation would be called the Oregon Investment Corporation. The state legislation will also exempt the proposed investment corporation from certain laws that regulate government entities. By moving the […]

Trust But Verify, Germany to Move Some Gold Back Home

Germany’s Bundesbank is planning on relocating some of its gold in New York (New York Federal Reserve) and Paris (Bank of France) back home. Germany is the number two holder of gold reserves. Only the United States holds more gold. The Bundesbank plans to move a small portion of its gold reserves back to Germany, […]

Diversifying Massive Reserves, SAFE Co-Financing is Created

China’s State Administration of Foreign Exchange (SAFE) has created a new investment body named SAFE Co-Financing. This extension of SAFE will assist Chinese companies invest overseas by providing credit loans backed by foreign exchange reserves. Instead of allocating capital to a sovereign fund and then to a fund manager or asset, SAFE Co-Financing will allocate […]

CalPERS Posts 13.26% Return for 2012

The US$ 252 billion California Public Employees’ Retirement System (CalPERS) had a positive performance in 2012 of 13.26%. The 2012 annual return was slightly below the 14.43% benchmark return. 2012 private equity returns attributed to the lower return. CalPERS has an annual target rate return of 7.5% to meets its obligations; it was lowered in […]