Archive | June, 2013

SWF Institute Announces Branding of Email Newsletter to Public Fund Monitor

The official email newsletter of the Sovereign Wealth Fund Institute has been branded the Public Fund Monitor which includes over 35,000 subscribers. This complimentary email newsletter informs policymakers, the media, sovereign funds, public pensions, governments, asset managers and executives on important happenings occurring in the public investor community. “We decided to name our email newsletter […]

Institutional Investors Appeal to Emerging Markets Despite Negative Forecasts

Generally, sovereign wealth funds are long-term public investors that have the capability to weather financial storms. Gulf-based sovereign funds have augmented equity allocation to emerging markets. Across the Pacific Ocean, the Alaska Permanent Fund maintains a position that emerging markets are a solid bet due to relatively faster economic growth rates. Convinced public investors perceive […]

Nigeria’s SWF to Develop Infrastructure Platform with AFC

Developing infrastructure in sub-Saharan Africa is a capital intensive, intricate undertaking requiring investors with a technical capacity. Large pools of assets that are long-term oriented like sovereign funds and pensions can play a role in financing infrastructure. The Africa Finance Corporation (AFC), a multilateral institution, and the Nigeria Sovereign Investment Authority (NSIA) signed a Memorandum […]

Korea’s NPS Plans to Open Foreign Currency Account

Korea’s National Pension Service (KNPS) plans to make a foreign currency account to enhance management of their burgeoning overseas investments. After several key-level governmental meetings, the Korean national pension investor is branching out of domestic investments. The KNPS has major exposure to the Korean capital markets. From the end of 2012, 64.1 trillion won are […]

Sovereign Wealth Funds Pursue Institutional Real Estate

Ever since the end of 2010, direct sovereign wealth fund transactions in institutional real estate have risen. Larger sovereign funds tend to take on direct investment opportunities, while public investors under US$ 30 billion in assets rely heavily on real estate funds. Sovereign wealth funds with renewed confidence are investing directly into core real estate, […]

Temasek Holdings to Increase Investment in Celltrion

Singapore’s Temasek Holdings plans to invest US$ 129 million in Celltrion Inc., a Korean biotechnology company. Temasek Holdings is the number two shareholder in Celltrion at a 10.5% stake. The Singapore sovereign fund is also the third largest shareholder in Celltrion Healthcare Co. at a 7.7% stake. Founder, Seo Jung-jin plans to sell his stakes […]

A Bitter Pill for Emerging Markets

Sovereign wealth funds have opened their enlarged ears on Ben Bernanke’s spoken words – the word tapering. Central bank actions have contributed volatility in government bond yields which has stressed public investors. A gradual withdrawal of excess liquidity would stem the tide of hot money flowing to emerging markets. This is a wake-up call for […]

Reflection on Angola’s Sovereign Wealth Fund Investment Policy

Angola’s US$ 5 billion Fundo Soberano de Angola (FSDEA) has released their investment policy. The sovereign fund’s asset allocation mix will support three criteria: preservation of capital, long-term return maximization and infrastructure development. The fifty percent allocation to cash, fixed income and G-7 stocks is modeled after the first criterion. The other 50% is open-ended […]

NSIA Inks MoU with General Electric

The Nigeria Sovereign Investment Authority (NSIA) signed a Memorandum of Understanding (MoU) with General Electric to finance and develop infrastructure projects. One of the sovereign funds, the Nigeria Infrastructure Fund, is currently evaluating a number of infrastructure prospects. In the MoU, NSIA will participate as a financial investor, while General Electric will take on the […]

Leonard Green Looks to Buy United States Infrastructure Corporation from OMERS

Leonard Green & Partners LP, a U.S.-based private equity firm that specializes in the retail and consumer sectors, may be buying Indianapolis-based United States Infrastructure Corporation from the private equity arm of the Ontario Municipal Employees’ Retirement System (OMERS). United States Infrastructure Corporation provides outsourced sub-surface utility locating services. In 2008, United States Infrastructure Corporation […]

RDIF and Mubadala Agree to $2 Billion Co-Investment Fund

At the St. Petersburg International Economic Forum 2013, the CEO of the Russian Direct Investment Fund (RDIF), Kirill Dmitriev, and the CEO of the Mubadala Development Company, Khaldoon Al Mubarak, announced the creation of a US$ 2 billion co-investment fund. Each partner is committing US$ 1 billion to the fund that will target opportunities in […]

Quebec’s Caisse Supports Natural Resource SMEs

On June 20, 2013, the Caisse de dépôt et placement du Québec (Caisse) announced the creation of Sodémex Développement. The $250 million Sodémex Développement Fund will allocate investments in the range of $5 to $20 million to developmental Québec companies in the natural resources sector. With the creation of the Sodémex Développement Fund, the Caisse […]

RDIF Leads Consortium in the Russian Tire Industry

The Russian Direct Investment Fund (RDIF), Titan International Inc. and One Equity Partners LLC have reached an agreement with Russian tire producer Cordiant to invest in Voltyre-Prom, a Russian agricultural and industrial tire manufacturer. To shed additional detail on the involved entities, Titan International Inc., is one of the world’s largest manufacturers of agricultural and […]

CalPERS Risk-Factor Approach to Asset Returns

Historically, investors have heavily relied on the equity risk premium to reach annual return targets. The confidence of this model has been tested. Mean-variance optimization models did not help out asset owners during times of catastrophe. Like many large institutional investors, the California Public Employees’ Retirement System (CalPERS) is rethinking its approach to asset allocation […]

Qatar Holding Sells 10% Stake in Auto Investment to Porsche and Piëch Families

Qatar Holding, the sovereign wealth enterprise of the Qatar Investment Authority (QIA), sold their 10% stake in Porsche Automobil Holding SE to the automaker families of Porsche and Piëch. The Porsche and Piëch families control Porsche’s holding company which holds around 50.7% of Volkswagen AG common stock. The deal gives the family 100% of the […]

The Transformation of Ireland’s NPRF into a SDSWF

Irish Finance Minister Michael Noonan along with other senior public officials provided key updates regarding the NTMA Amendment Bill 2013. The bill would modify the direction of the National Pension Reserve Fund’s €6.4 billion discretionary portfolio toward Irish commercial investments. In effect, the remaining part of the sovereign pension fund would transform itself into a […]

Temasek Prepares for European Opportunities

Singapore’s Temasek Holdings is following the path of other sovereign funds and Canadian pensions by establishing an entity in the United Kingdom. Keeping an ear to the ground allows public investors the possibility of greater access to the latest deals, gossip and emerging trends. Temasek International (Europe) Limited is a new unit that will be […]

Korea National Pension Fund Targets Overseas Stocks

The largest public institutional investor in Korea is the National Pension Service. In recent times, the massive pension system sliced its five-year investment return target from 6.6% (2014-2018) down to 6.1% (2013-2017). Korea’s gross domestic product and inflation data influenced the return adjustment decision. As of March 2013, Korea’s National Pension Service (KNPS) assets total […]

Institutional Investors Take Stock of Myanmar’s Rise

Yangon is benefitting from ambitious reform as foreign capital flows toward gas production and other investments. Myanmar’s international reserves mark an upward trajectory as foreign direct investment puts a hush on the shrinking current account deficit for the time being. The Association of Southeast Asian Nations (ASEAN) region has a composed population greater than 600 […]

Public Investment Corporation Buys Stake in Dangote Cement

South Africa’s Public Investment Corporation (PIC) acquired a 1.5% stake in Dangote Cement Plc. The deal was worth about US$ 289.3 million. Dangote Cement is the biggest listed company in Nigeria. As the Johannesburg Exchange’s largest institutional investor, the PIC is keen on expanding investments within Africa. This is not the first transaction for the […]