Archive | February, 2013

Eastern Central Banks Accumulate Gold

Occidental central banks have printed their way out to temporarily avert the financial crisis and economic contraction risks. Before the financial crisis, central banks were net sellers of gold; this trend has clearly reversed regarding Eastern central banks. Central banks still hold a very minute percentage in gold. With Germany repatriating gold back and foreign […]

CalPERS Shifts Hedge Fund Strategy

American public pension funds are increasing allocation to hedge funds. Pension funds desire improved returns as pension costs for public employees continue to put pressure local government finances. The California Public Employees’ Retirement System (CalPERS) with US$ 254.5 billion in assets is juicing its augmentation to event-driven and global macro hedge funds. 5% of their […]

SOFAZ Analyzes Funding for Trans-Anatolian Pipeline

Increasingly, Europe and its Eastern neighbors are in need of steady energy supplies. Pipeline politics are influencing investment and geopolitical decisions. Natural gas from Central Asia is attempting to connect with European and Turkish energy consumers through new routes. The Trans-Anatolian pipeline (TANAP) is a pipeline project that aims to transport 16 billion cubic meters […]

Singapore’s GIC Sells Large Stake in Global Logistic Properties

The Government of Singapore Investment Corporation (GIC) increased liquidity in their portfolio by selling 596.674 million shares of Global Logistic Properties (GLP). This would raise about 1.5 billion SGD. Global Logistic Properties is a SGX listed company which is majority-owned by the GIC. The property company is the largest owner of industrial properties in Japan […]

CIC and Chengdu Tianqi Enter into Agreements Relating to Talison Lithium Purchase

According to the press release, “Talison Lithium Limited is pleased to provide an update on the status of the transaction with Chengdu Tianqi Industry (Group) Co., Ltd and its subsidiary Windfield Holdings Pty Ltd (“Windfield”) (together “Tianqi”). On December 6, 2012, Talison announced that it had executed a Scheme Implementation Agreement (the “SIA”) with Tianqi […]

Are Credit-Linked Notes Dangerous for Public Funds?

Public investors that have restrictions participating directly into credit swaps or desire access to a diverse pool of credit investments are choosing to invest some capital in credit-linked notes (CLN). Public pensions such as CalPERS have classified credit-linked notes as an opportunistic asset class given the historical level of risk associated with structured investments. In […]

OMERS Net Assets Clear $60 Billion in 2012 with 10% Investment Return

The press release states, “OMERS, one of Canada’s largest pension plans, today announced its 2012 financial results. OMERS net assets grew to $60.8 billion, rising by $5.7 billion in 2012 and by over $17 billion since the 2008 global credit crisis. Now in its 50th year, OMERS is an active, diversified investor, pension innovator, and […]

CA State Senators Propose Oil Permanent Fund to Pay for Education and Parks

On February 12, 2013, California State Senator Noreen Evans (D) introduced SB 241, a bill that will fund higher education and state parks in California. The bill would impose a severance tax on oil producers in California. The bill is co-authored by fellow State Senator Mark Leno (D) who is Chair of the California Senate […]

Chile to Infuse 2 Billion in its Sovereign Wealth Funds

The government of Chile will infuse US$ 2 billion into its sovereign wealth funds. The two sovereign wealth funds, the Pension Reserve Fund (PRF) and Social and Economic Stabilization Fund (ESSF), will amount to US$ 22.9 billion in size. Chile is the world’s leading copper exporter. In addition, copper is Chile’s main export product.

Qatar Holding Creates 12 Billion Listed Company for Overseas Assets

Qatar Holding LLC, a sovereign wealth enterprise of the Qatar Investment Authority (QIA), plans to create an investment company called Doha Global Investment worth US$ 12 billion to buy assets internationally. The company would be listed on the Doha Exchange within six to eight weeks. The listed company would have billions in riyals in paid-up […]

CIC Focuses in on European-China Investment Strategy

Chinese governmental investors have allocated capital to invest in European companies. The government of China is encouraging more overseas transactions, with Chinese state banks financing deals. Two major impediments arise, one is knowing how and where to access such investment opportunities, and the other is political risk. Chinese state-owned enterprises and corporations have ventured into […]

Eastern Sovereign Funds Bullish on Asian Transformational Economies

Temasek Holdings and other sovereign funds are taking big bets on Asia. Temasek has taken positions in Chinese banks such as China Construction Bank and the Bank of China; understanding that investing in financial institutions can be a profitable undertaking for a burgeoning economy. Confidence and optimism in China’s long-term economic growth play into Temasek’s […]

ADIA Ready to Purchase 42-Hotel Portfolio from RBS

In June 2011, the Royal Bank of Scotland Group Plc (RBS) took control of 42 Marriott-branded hotels in England, Scotland, and Wales. They assumed control of the £1 billion property portfolio following loan defaults. At the time, RBS owned £700 million of debt which was used to finance the purchase in a syndicated loan structure. […]

SOFAZ Going Down Under for Properties

The State Oil Fund of Azerbaijan (SOFAZ) is looking to acquire core real assets in Australia, particularly Sydney. Australia has been a noteworthy real estate market for a number of sovereign wealth fund property investors. Australia has access to Asian nations and has robust transparency in property markets. Office and retail properties have been targets […]

Terminating Public Equity Asset Managers, Public Investor Perspectives

Terminating public equity asset managers is a cumbersome act to do for sovereign wealth funds and public pensions. It sticks to the forefront of public investors’ conscience. It is less complicated than terminating private equity relationships, but still requires significant time resources. Fund manager retention and termination decisions involve high costs. Public investors need assurances […]

Moscow Exchange’s IPO Shoring up Demand

Russia has aspiring plans to privatize state-owned businesses and draw foreign capital to Moscow. Russia’s central bank currently owns 24.3% of the exchange. Investors have bid for all shares offered by the Moscow Exchange MICEX-RTS. The Russian Direct Investment Fund (RDIF) and the sovereign wealth enterprise, Chengdong Investment Corporation which is owned by the China […]

Norway’s SWF Makes First Real Estate Investment in the USA

According to the press release, “The Norwegian Government Pension Fund Global bought 49.9 percent of five office properties in the US, its first investment in the world’s largest real estate market, through a joint venture with TIAA-CREF. The assets in New York City, Washington D.C. and Boston are valued at $1.2 billion, or about 6.6 […]

Hedge Funds Peak Sovereign Wealth Fund Interest

The short-lived evolution of the hedge fund industry in the past twenty years has been a boon to hedge fund managers. From being a private pool of high net worth capital to becoming an asset class suitable for institutional capital, the industry and its participants have augmented greatly in assets and wealth. From an investor […]

Venezuela’s Bolivar is Devalued by 32%, Shortage of Dollars

In the fifth occurrence in nine years, the government of Venezuela has devalued their currency again. The Venezuelan government is attempting to mitigate the shortage of dollars in the economy. In addition, the devaluation of the bolivar can assist in narrowing the government’s fiscal budget. Venezuelan Finance Minister Jorge Giordani said the government will weaken […]

CalSTRS Generates 13.45% Return for 2012

The California State Teachers’ Retirement System (CalSTRS) returned 13.45% for the calendar year of 2012. The pension fund has a custom benchmark of 15.35%. As of December 31, 2012, 13.8% was allocated to private equity and 14% to real estate. 2012 Results – Return vs. Benchmark Fixed Income – 6.11% vs. 4.76% US Equity – […]