Archive | October, 2013

American Fiscal Chaos Pushes Nations to Pursue Yuan

While Republicans and Democrats in the United States were taking debt negotiations toward another potential cliff, China was not so silently making deals to bypass using the U.S. dollar when handling bilateral trades. On October 11th Chinese media Xinhua announced an agreement between the European Central Bank (ECB) and the People’s Bank of China (PBOC) […]

Pension-Backed Study Says Canadian Public Plans Lessen Government Welfare

It seems that Doug Pearce, exiting CEO of the British Columbia Investment Management Corporation (bcIMC), has been vindicated for his belief in the economic benefit of defined benefit (DB) plans to the Canadian economy. In a recently released report that was commissioned by a group of Canadian defined benefit pension plans and carried out by […]

Georgian Co-Investment Fund Targets More Foreign Institutional Investors

Taking a page from the Russian Direct Investment Fund (RDIF), Georgia has launched a co-investment vehicle to channel capital in needed sectors. In late September 2013, Georgian Prime Minister Bidzina Ivanishvili, a billionaire investor who made the bulk of his wealth during Russia’s transition away from communism, invested US$ 1 billion into it himself. Some […]

New Zealand Superannuation Fund and Infratil Buy Into Senior Housing

Some economists tend to say, “Demographics are a predictor of the future.” The New Zealand Superannuation Fund (NZSF) and Infratil, a New Zealand-based infrastructure investment company, are conditionally buying stakes in Metlifecare. Metlifecare is a publicly listed retirement village and aged care provider aka “senior housing.” With the greying demographic profile of New Zealand, institutional […]

Singapore’s GIC Major Holder of Royal Mail

One of Singapore’s sovereign wealth funds, GIC Private Limited, is the second largest private owner of the 500—year old Royal Mail plc. Royal Mail was recently privatized; shares were priced at £3.30. GIC Private Limited holds a 4.1% stake valued at around £230 million – holding 41 million shares. Singapore’s GIC follows behind hedge fund, […]

Selangor Has Plans for a Strategic Development Sovereign Wealth Fund

According to several reports, the Malaysian state of Selangor is planning on introducing a strategic development sovereign wealth fund (SDSWF). Befittingly, the proposed name of the sovereign fund is the Selengor Urban Development Fund. It will be introduced with a cash injection of RM 1 billion (US$ 315 million) with the money coming from private […]

Jim Leech to Become New Chancellor of Queen’s University in Ontario

Ontario Teachers’ Pension Plan (OTPP) has announced via Queen’s University in Ontario, Canada that Jim Leech, President and CEO of the OTPP, has been named the University’s newest chancellor. His term will begin on Jul 1, 2014, and it will last three years. The decision was reached on October 18, months after Leech’s predecessor, David […]

Mubadala Selects Verno Capital for Russia Advisory

As more foreign institutional investors allocate capital to Russia, the need for Russian expertise rises. Increasingly, Arab public investors have begun to invest in companies, funds and assets throughout Russia and the Commonwealth of Independent States (CIS). Back in June 2013, the Mubadala Development Co., a strategic development sovereign wealth fund based in Abu Dhabi, […]

Karnit Flug Named Bank of Israel Governor

The Bank of Israel has a new central bank governor. Dr. Karnit Flug, 58, will become the new central bank governor. Flug was officially appointed by Israeli Prime Minister Netanyahu and Finance Minister Lapid after a lengthy search process. She already has been acting chief of the bank since Governor Stanley Fischer resigned in June […]

Princeton University Endowment Returns 11.7%

The US$ 18 billion Princeton endowment recently boasted an 11.7% return in the fiscal year ending June 30, 2013. The 10-year annualized return ending on that date was 10.2%. Princeton University Provost David Lee noted that the large endowment would help benefit students through financial aid and scholarship funding. According to Lee, Princeton’s “scholarship budget […]

Oman Investment Fund Signs MoU to Back Antimony Roasting Facility

On October 9, 2013, London-based Tri-Star Resources signed a non-binding Memorandum of Understanding (MoU) with the Oman Investment Fund and Castell Investments Limited, a subsidiary of Dubai Transport Company, to create a joint venture company to build and operate an antimony roasting facility in Oman. Publicly-traded Tri-Star Resources is an integrated antimony development company. The […]

Ivanhoé Cambridge Buys 51% Stake in News Corp Building

On October 15, 2013, Montreal-based Ivanhoé Cambridge, the real estate arm of Caisse de Dépôt et Placement du Québec, purchased a 51% stake in 1211 Avenue of the Americas, a Class A office building in Manhattan. Ivanhoé Cambridge acquired the 45-story office building that serves as News Corporation’s headquarters for more than US$ 850 million […]

Russia-China Investment Fund Buys Nearly 42% Stake in RFP Group

The Russia-China Investment Fund (RCIF), a private equity vehicle funded by the China Investment Corporation (CIC) and the Russian Direct Investment Fund (RDIF), bought nearly a 42% stake in RFP Group (Russian Forest Products Group). RFP Group is a forestry holding company in Russia’s Far East. It is the number #2 company in Russia for […]

Sovereign Wealth Funds Surpass 6 Trillion in Assets

Sovereign wealth funds have exceeded US$ 6 trillion in assets, officially totaling US$ 6.001 as of October 16, 2013. Sovereign funds have added US$ 1.159 trillion in assets since the beginning of 2012 till today, a 23.94% increase. The growth in sovereign fund assets can be attributed to a number of factors including: new sovereign […]

New Zealand Superannuation Fund Releases Annual Report

The NZ$ 23 billion (US$ 19.26 billion) New Zealand Superannuation Fund (Fund) released its 2012/2013 annual report today, and there are a few highlights. For starters, the management team under CEO Adrian Orr achieved a record return for the Fund of 25.83%. Since the New Zealand Superannuation Fund began investing in September of 2003 it […]

Why a U.S. Default Could be Great for Sovereign Wealth Funds

Before getting pied by critics, let us consider the possible benefits of a technical default by the U.S. Treasury for institutional investors. As the U.S. Congress reaches the 11th hour on a budget deal, and investors sit idly by waiting for a decision, television pundits and economists in the United States are voicing concerns ranging […]

Norway’s Sovereign Fund Partners with AXA Real Estate to Center on Loan Buying

Sovereign wealth funds crave yield, and senior real estate debt is entering the portfolios of sovereign funds once again. Norway’s sovereign wealth fund studied the real estate lending market in Europe, later putting out a request for proposal to acquire senior debt. Norges Bank Investment Management (NBIM) was also trying to ascertain the best channel […]

Ban Ki-moon Insists Institutional Investors Address Climate Challenges

At a speech recited at the International Development Finance Club in Washington D.C., U.N. secretary-general Ban Ki-moon pitched to the international community the goal of US$ 100 billion per year for new climate finance commitments. The secretary-general sees climate change as a serious threat to sustainable development. Ki-moon emphasized that all financial actors, even large […]

Registration Ends October 23 – Institute Fund Summit Europe 2013

October 29-31, 2013, Frankfurt, Germany – Jumeirah Frankfurt The Premier Global Summit for Sovereign Wealth Funds, Public Pensions, Central Banks and Long-Term Public Investors 6 continents are represented by our current delegates. Learn, network and participate in an interactive forum. Event Website For an agenda, please email Registration Links Non-Sovereign/Public Attendee | Sovereign/Public Attendee […]

Northern Trust Gets New Passive Equity Mandates from NZSF

Northern Trust’s asset management arm has been appointed by the New Zealand Superannuation Fund (NZSF) to manage four new passive global equities mandates. Increasingly, public pensions and sovereign funds are utilizing passive strategies to save on costs and achieve greater diversification. Nearly two-thirds of the New Zealand Superannuation Fund is managed passively. The new mandates […]