Connect with us

Bank of Korea to Entrust 3 Billion to the Korea Investment Corporation

Published

on

The Bank of Korea will entrust $3 billion from foreign exchange reserves for the Korea Investment Corporation (KIC) to manage. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

China SWF Launches Fund with BNP Paribas and Eurazeo

Published

on

Eurazeo will manage a bilateral investment fund backed by the China Investment Corporation (CIC) and BNP Paribas to support French and European companies seeking to expand rapidly in China. The fund will be €1 billion to €1.5 billion in size. CIC, BNP Paribas, and Eurazeo, will invest significantly in the fund alongside additional investment limited partners. With a presence in China since 2013, Eurazeo will be responsible for managing the fund, as well as choosing and managing the investments.

The CIC has formed bilateral funds with private entities. CIC has a bilateral fund with Goldman Sachs Group.

Continue Reading

Petrobras to Spend $320 Million to Hedge Portion of Oil Production

Published

on

Revealed on March 22, 2019, Petroleo Brasileiro SA (Petrobras) spent US$ 320 million on put options as a hedge. Brazil’s state-owned oil company bought the options to hedge part of its crude production for 2019. This is at an equivalent of US$ 60 per Brent oil barrel. The options will expire by the end of 2019.

The put options enable Petrobras to deliver oil at US$ 60 per barrel, but not the obligation to do so.

In a securities filing, Petrobras said, “The strategy is to hedge the export operations expected for the year, that way partially protecting the company’s operational cash flow.”

To compare to 2018, Petrobras is spending less on options in 2019. Petrobras had put options at US$ 65 a barrel, covering 128 million barrels.

Continue Reading

Storebrand Generates Steady Returns for 2017 and 2018

Published

on

Norway’s largest private asset manager, Storebrand, had a 13.7% return on equity in 2018. Storebrand now has total assets under management of US$ 82.6 billion. The staggering results topped 2017’s returns of 11.3%. Odd Arild Grefstad, CEO, was keen to point out that “2018 was a good year,” in Storebrand’s annual report. Grefstad also reflected on the peculiarities that were overcome during the year: “Our financial solidity was strengthened and there was an increase in the dividends distributed to shareholders. At the same time, the financial markets experienced turbulence at the end of the year, in a somewhat uncertain macroeconomic situation.”

Last year, new initiatives were implemented to bolster sustainable investments. The fund is also pushing to improve water management. Another investment coming this year will address deforestation. That will include tackling soy and palm oil farming, and cattle ranching. Grefstad addressed Storebrand’s “green” priorities: “The financial industry is an important contributor in the efforts to limit global warming, and we have a clear strategy . . . we have strict environmental, climate, and sustainability criteria for all our investments.”

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.