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Alaska SWF Flat for Fiscal Year 2012

According to the permanent fund’s press release, “According to preliminary data released today by the Alaska Permanent Fund Corporation, the Permanent Fund’s investments returned 0.02 percent for the fiscal year ending June 30, 2012, and closed with a value of $40.3 billion. This was up $193 million from the end of the prior year, and the Fund outperformed the composite benchmark return of -0.2 percent.

“It was a volatile year for the global stock markets, particularly overseas markets,” said Michael Burns, CEO. “Stocks make up about half of the Fund’s investments, so they had the largest impact on our performance. However the bond and real estate portfolios performed quite well over the course of the fiscal year, helping mitigate the poor performance from stocks and creating a positive return for the Permanent Fund.”

In the first quarter of the fiscal year stock markets were sharply down, feeling the drag of slow growth domestically and political and economic turmoil overseas. Markets then appeared to return to normal, rallying through the second and third quarters, especially in the U.S. But overseas markets were shaken by continuing woes and fell into double digit losses in the fourth quarter, creating a net negative return for the stock portfolio despite positive returns in the U.S. markets.

The Fund’s U.S. stock portfolio returned 2.3 percent. The non-U.S. portfolio returned -14.6 percent while the global portfolio returned -4.7 percent.

Continued concerns over the stability of Eurozone sovereign debt, along with slowing growth in emerging market countries drove investors to the U.S. As a result, U.S. bonds returned 7.8 percent. Compared to stocks, even non-U.S. bonds still seemed safe to investors by comparison, and the portfolio returned 6.5 percent.

Real estate also performed well over the year, and preliminary results show the Fund’s investments returned 11.4 percent. Final audited performance results for real estate and the other asset classes will be available at the Board’s annual meeting in September.

The Fund’s absolute return portfolio was flat at 0.4 percent for the fiscal year. This portfolio includes funds that specialize in absolute return strategies, distressed debt, mezzanine debt and other directed investments. The real return portfolio returned 5.7 percent for the period. This portfolio is comprised of five portfolios, with each manager allowed to set their asset allocation within the risk parameters set by the APFC. This allows them to select from the same range of asset types found within the rest of the Permanent Fund. Private equity returned 9.8 percent for the fiscal year and infrastructure returned -8.4 percent.”

Read more: Alaska Permanent Fund Press Release

Qatar Central Bank Deals with MSCI

MSCI, a stock index company whose benchmarks influence investor behavior, has tremendous indirect power impacting the stock markets of smaller economies. In 1988, MSCI released its emerging markets index, a now-widely-used benchmark for many institutional investors wanting access to growth markets. China and South Korea make up the majority of the benchmark, but smaller economies such as Poland, Chile and even Qatar make up other pieces of it.

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bcIMC Buys into Bottling Business with PAI in €1.623 Billion Takeover of Refresco

Dutch soft-drink bottler Refresco Group N.V. has agreed to a buyout offer for all 81.2 million of its shares from French private equity firm PAI Partners SAS (PAI) and Canadian pension manager British Columbia Investment Management Corporation (bcIMC) in exchange for €20 in cash per ordinary share for a total consideration of €1.623 billion. Refresco’s major shareholders, which includes 3i Group, and shareholding members of its boards, who represent 26.5% of outstanding shares, have said they stand behind the deal.

Refresco’s board rejected an initial offer from PAI in April 2017 of €1.4 billion, which they felt did not adequately capture the value added by their plans to bolster its presence in North America through the acquisition of Canadian bottler Cott TB, a deal that went through in July for US$ 1.25 billion.

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Digital Insurance Distributor BGL Opts for CPPIB Money Over IPO

Canada Pension Plan Investment Board (CPPIB) is investing £675 million (US$ 895.715 million) for a 30% stake in Peterborough-based BGL Group, a digital distributor of insurance and household financial services to 8.5 million customers. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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