Archive | March, 2013

Allianz and Borealis Infrastructure Buy Czech Gas Transmission Operator Net4Gas

The press release, “Allianz and Borealis Infrastructure have reached an agreement with RWE AG to purchase Net4Gas, s.r.o. (N4G), the gas transmission and transit system operator in the Czech Republic. Allianz and Borealis Infrastructure, the infrastructure investment arm of the Ontario Municipal Employees Retirement System (OMERS), will each own a 50 percent stake in N4G. […]

U.S. Public Pension Assets Nearly Reach 2007 Peak

According to United States Census data, U.S. public pension funds rose to the highest since a peak just prior to the global financial crisis. Public pension assets in 100 of the largest funds, including cash and securities, increased to US$ 2.84 trillion. This is a 1.7% increase from last quarter. The highest amount recorded was […]

OTPP to Buy Three Australian Telecom Companies

The Ontario Teachers’ Pension Plan (OTPP) reached an agreement to acquire 70% of three Australian telecommunications companies from Leighton Holdings Limited. Sydney-based Leighton Holdings Limited will retain a 30% interest in the companies. The companies to be acquired are Nextgen Networks, Metronode and Infoplex. A 100% valuation of all three companies put the total value […]

Growing Energy and Natural Resource Allocation for Public Investors

Technological improvements and efficiencies in crude oil production have elevated projected U.S. supplies of oil. With regard to natural gas, prices of the commodity are relatively low. Surges in industrial and electric power sectors have augmented the need for growing shale gas production. With the United States embarking on a fossil fuel extraction renaissance, how […]

Kuwait Receives Provisional Budget Surplus Due to High Oil Prices

According to Kuwait’s Ministry of Finance, the country posted a record provisional budget surplus of 17.2 billion KWD in the initial 10 months of the fiscal year. The surplus is heavily attributed to high oil prices. Oil revenues increased 11.6% from last fiscal year. Oil earnings make up 94% of total revenues. Under Kuwaiti law, […]

Sovereign Funds Increase Energy and Utility Sector Investments in the First Quarter

For the first quarter of 2013, sovereign wealth funds have come out strong investing directly in energy and utility investments. Direct transaction data for the first quarter of 2013 is not fully complete; the total so far for the first quarter of 2013 is US$ 2.98 billion. Already the direct transaction amount for this quarter […]

CIC, Vnesheconombank, RDIF and RCIF Signed MOU for Russian Projects and Investments

The press release states, “State Corporation “Bank for Foreign Economic Affairs” (Vnesheconombank), The Russian Direct Investment Fund (RDIF), China Investment Corporation (CIC) and The Russia-China Investment Fund (RCIF) have today signed a Memorandum of Understanding (MOU), which sets forth a number of principles to promote future cooperation on investments into infrastructure projects and projects in […]

Cyprus Approves Sovereign Wealth Fund

March 22, 2013, the Cypriot parliament passed emergency legislation relating at setting up the groundwork for a bailout deal. These bills include the creation of a sovereign wealth fund, nationalization of pension assets and imposing strict limits on the movement of capital. The Eastern Mediterranean Sea has offshore gas deposits; capital-intensive infrastructure is needed to […]

CalPERS Announces First Partnership Under Multi-Asset Class Partners Program

According to the press release, “The California Public Employees’ Retirement System (CalPERS) is investing $500M with Edinburgh, Scotland-based Standard Life Investments as part of its Multi-Asset Class (MAC) Partners Program. Standard Life is the first of four external managers selected to partner with CalPERS in the MAC program. “We’re excited to have Standard Life on […]

SBI Pharmaceuticals Signs MoU with Mumtalakat Holdings

The gulf countries are employing a bevy of tactics to draw multinational firms to the region. Strategic development sovereign wealth funds (SDSWF) are keen on creating local opportunities. Dubai, Doha and Manama have pushed the envelope in constructing financial centers to diversify from the petroleum industry. Manama seeks to attract pharmaceutical companies and be a […]

Early Stage Analysis for Filipino Sovereign Fund

In the Philippines, monetary officials are in early stages in analyzing whether to establish a sovereign wealth fund. The Asian country has prospered with foreign reserve growth. The Bangko Sentral ng Pilipinas would sell U.S. dollars to the Philippine government to fund the proposed sovereign fund. With legal constraints stemming from the central bank, the […]

Public Investors Thirst for Industrial Properties

Public investors are in search for stable cash flows and are willing to buy and hold industrial properties for the long-term. This property trend includes partnering or investing in real estate companies that possess expertise in institutional real estate. These real estate companies gain by shoring up their capital base. Earlier in 2012, the China […]

Singapore’s GIC SWE Invests in Greenko

A sovereign wealth enterprise (SWE) of the Government of Singapore Investment Corporation Pte Ltd (GIC) is making a £100 million investment in Greenko Mauritius Ltd, a subsidiary of Greenko Group plc. The £100 million investment will turn into regular Greenko shares between 2015 and 2017. Greenko’s capital infusion will accelerate construction of the firm’s renewable […]

Cyprus’s Molon Labe Moment

Cyprus is another economic contagion Eurozone members are seeking to mollify. Facing national bankruptcy, the Mediterranean island nation has few options. The financial sector of Cyprus is nearly eight times the size of the economy. Eurozone officials developed a unique package to salvage Cyrus’s popular banking industry. The proposed bailout would help save the country’s […]

Asset Owners Cautiously Pursue Volatility Strategies

Skilled hedge fund managers can demonstrate they can go both long and short volatility. Volatility specialists thrive on uncertainty. They are excited when things blow up. These hedge funds are waiting for another “Lehman” event aka black swan. Institutional investors have been analyzing relative value hedge funds and funds that have a long volatility strategy […]

Khazanah Seeks to Bid for Bank of Ayudha

Malaysia’s Khazanah Nasional Berhad looks to purchase General Electric Co’s US$ 1.8 billion stake in Bank of Ayudhya Public Company Limited, the fifth largest lender in Thailand. General Electric’s 25.3% stake in the bank has also attracted Mitsubishi UFJ Financial Group. Khazanah Nasional isn’t nearly active in pursuing international financial sector investments compared to Singapore’s […]

The Caisse Invests in Australian AgriBioscience Centre

The Caisse de dépôt et placement du Québec will invest AU$32 million in Melbourne’s Centre for AgriBioscience under an agreement with Plenary Group. Plenary Group is an investor, developer and operator of public infrastructure. The Centre for AgriBioscience is a joint venture between the Victorian State Government and La Trobe University. The center will include […]

Ontario Teachers’ Pension Plan Sold Express-Platte Pipeline System Stake

According to the press release, “Ontario Teachers’ Pension Plan (Teachers’) today announced that it has completed the previously announced sale of its one-third interest in Express-Platte Pipeline System (Express-Platte Pipeline) to Spectra Energy Corp (Spectra Energy) for approximately $430 million. Teachers’ partners in Express-Platte Pipeline, Borealis Infrastructure and Kinder Morgan Energy Partners, L.P., also sold […]

United Arab Emirates and Malaysia Strengthen Energy Investment Ties

The gulf countries are augmenting their economic clout in Southeast Asia by providing capital and energy expertise. Oil storage facilities are of mounting importance in the region. The race of having more oil storage capacity is tightening up between Singapore and Malaysia. With cheaper land and less regulations, Malaysia is attempting to outflank Singapore’s Jurong […]

Japan Successfully Extracts Natural Gas from Underwater Deposits of Flammable Ice

On March 12, 2013, Japan became the first country to successfully extract natural gas from underwater deposits of methane hydrate. Methane hydrate is a frozen gas that is referred to as flammable ice or fire ice. State-run Japan Oil, Gas and Metal National Corporation (JOGMEC) have been spearheading the initiative. Japan is a major importer […]