Archive | May, 2013

Monetary Authority of Singapore Opens Beijing Office

The Monetary Authority of Singapore (MAS) opened their first Asian representative office in Beijing, China. Singaporean public leaders recognize China’s cultural and economic clout in the Southeast Asia region. Singapore’s sovereign funds maintain large investments in Chinese companies and assets, especially companies that are tied to middle-class mobility. Private consumption in China has driven recent […]

OIC’s Dream of Independence Fades

A few mega American public pensions are trying to augment internal operations to save on investment management fees, increase efficiency and manage complex investments. Many of the Canadian public pensions are managed by public investment corporation entities like AIMCo and OMERS. This concept has piqued the interest of academics, policymakers and board trustees. Oregon’s Investment […]

Royal Mail Holdings plc Privatization Moves Closer

United Kingdom government officials announced Goldman Sachs and UBS AG will command a syndicate of banks for the £3 billion privatization of state-owned postal service Royal Mail Holdings plc. Other banks involved include Bank of America Merrill Lynch and Barclays. Past experience with Royal Mail was a factor in banker selection. The banks plan to […]

Emirates Investment Authority and the Central Bank of the UAE to Establish a Mint

The Emirates Investment Authority (EIA) and the Central Bank of the United Arab Emirates have inked a memorandum of understanding (MoU) to create a mint in the United Arab Emirates to meet the bank’s demand of printed currency notes. The Emirates Investment Authority is in charge of constructing and outfitting the mint. Many countries receive […]

The Crown Estate and Oxford Properties Agree on St James’s Market JV

Every major public investor attracted to European core real estate wants a slice of London. The Crown Estate has been creating joint ventures to revitalize their central London properties. The Crown Estate has established a joint venture with Oxford Properties, the real estate subsidiary of the Ontario Municipal Employees’ Retirement System, to have Oxford Properties […]

Abu Dhabi’s Sovereign Wealth Giant Shifts Gears

The Abu Dhabi Investment Authority (ADIA) achieved significant breakthroughs for 2012. Annualized returns for 2012, 20-year return (percent annualized) were 7.6%. For 2011, the 20-year return was 6.9%. A positive performance for 2012, ADIA profited from a hard weight in public equities, akin to Norway’s GPFG gain in asset value. Achieved significant breakthroughs in 2012 […]

Yield-Seekers and their Reasoning for Credit Investments

The daunting quest for fixed income yield is a tricky undertaking. How much are investors willing to pay for yield within an acceptable level of risk? Public investors have shifted fixed income focus in the past few years to credit funds. Investment consultants and advisors have been routing pension funds into credit investments like leveraged […]

Alaska Permanent Fund Board to Authorize Expansion of Internal Efforts

Globally and gradually, sovereign wealth funds and large public pensions are analyzing the benefits of internal asset management. At a recent meeting, the Alaska Permanent Fund Corporation Board of Trustees made some modifications to the fund’s investment policy. Some major changes include the authorization to create three new internally managed programs for public equities, co-investment […]

Malaysia’s Employees Provident Fund Continues Overseas Allocation Push

Malaysia’s Employees Provident Fund (EPF) has invested 3.91 billion MYR (US$ 1.29 billion) in overseas investments such as bonds, equities and real estate during the first quarter of 2013. Malaysia’s EPF which is 526.8 billion MYR (US$ 171.2 billion) in size is undergoing a strategy to geographically diversify their investment portfolio. EPF’s long-term diversification strategy […]

VTB Receives Major Backing from Sovereign Investors

VTB Bank has finalized its 102.5 billion roubles (US$ 3.3 billion) offering of new ordinary shares. Qatar Holding, the State Oil Fund of Azerbaijan, Norges Bank Investment Management and China Construction Bank have purchased 55% of the new shares issued. VTB chairman Andrei Kostin mentioned the three sovereign funds investing about US$ 500 million each. […]

Greater Presence for China’s SAFE in U.S.

Embracing a risk-on perspective, a miniscule but growing portion of China’s foreign currency reserves are being allocated toward illiquid assets. China’s State Administration of Foreign Exchange (SAFE) has created subsidiaries to invest reserve assets in a variety of investments including public equity, private equity and real estate. SAFE has opened up a New York office […]

Eastern SWFs and SOEs Embark on Energy Infrastructure Binge

Sovereign wealth funds and state-owned enterprises are attracted to energy infrastructure in benign regulatory environments. Chinese state-owned State Grid Corporation of China wants to purchase more energy assets in Australia. State Grid is the largest utility in China and one of the biggest in the world in terms of annual revenue. They plan to pay […]

Nigeria’s Sovereign Wealth Authority to Deploy Assets

After some delay, the Nigerian Sovereign Investment Authority (NSIA) has begun to allocate the US$ 1 billion in seed capital to each of the sovereign funds. The Future Generation Fund and Nigeria Infrastructure Fund would each receive US$ 325 million or 32.5% of the total amount. The Stabilization Fund would receive US$ 200 million, with […]

First Quarter 2013 – Resilient Start for Direct SWF Transactions

First quarter data of 2013 from the Sovereign Wealth Fund Transaction Database (SWFTD) has been tabulated. During the first quarter of 2013, direct sovereign fund transactions totaled US$ 14.8 billion. This is an incremental increase of 2.06% compared to the first quarter of 2012. As 2013 progresses, the first quarter number should experience a positive […]

Nostalgia – Old Sovereign Wealth Fund Logos

Many of the massive sovereign funds today were started before the 2000s. Below are some old sovereign wealth fund logos. Click to enlarge logos. Kuwait Investment Authority GIC – 1998 Temasek Holdings 2002 Temasek Holdings 2004 Khazanah Nasional Abu Dhabi Investment Authority China Investment Corporation – Debut

Qatar Holding Invests in Milan’s Porta Nuova Project

In the midst of troubling economic times, the skyline of Milan is rising. As Italy’s financial hub, Milan is home to the Italian Stock Exchange. The government of Qatar is keen on Italian real estate developments, especially mixed-used projects in highly-trafficked zones. Qatar Holding LLC, the sovereign wealth enterprise of the Qatar Investment Authority (QIA), […]

CPP Fund Exceeds $183 Billion at 2013 Fiscal Year-End

According to the press release, “The CPP Fund ended its fiscal year on March 31, 2013 with net assets of $183.3 billion, compared to $161.6 billion at the end of fiscal 2012. The $21.7 billion increase in assets for the year consisted of $16.2 billion in net investment income after operating costs and $5.5 billion […]

Investment Corporation of Dubai Seeks to Assist Dubai Real Estate

Construction projects in Dubai were deeply affected by the real estate slump. The Investment Corporation of Dubai continues its efforts to support the local Dubai real estate industry. The Investment Corporation of Dubai and Brookfield Asset Management are hoping to lockdown $500 million in financing to launch a real estate fund dubbed the ICD-Brookfield Dubai […]

Mubadala and Dubai Aluminium Acquire Remaining Guinea Alumina Corporation Limited

According to the press release, “Global Alumina Corporation announced today that it has signed a share purchase agreement with DM GAV Limited, a company established and owned equally by Mubadala Development Company PJSC and Dubai Aluminium, to sell all of Global Alumina’s interests in Guinea Alumina Corporation Limited to DM GAV. Pursuant to the SPA, […]

Consortium including Temasek Holdings to Buy Asiainfo-Linkage

An investment consortium led by CITIC Capital Partners is going to buy Asiainfo-Linkage Inc. for about US$ 890 million. U.S.-listed Asiainfo-Linkage Inc provides software to telecommunication companies with big clients such as China Unicom, China Telecom and China Mobile. Using Ellington Investments Pte. Ltd., Singapore’s Temasek Holdings is part of the consortium of investors. Other […]