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California May Develop First State-Run Retirement Program for Private Sector



CA Governor Jerry Brown

Jerry Brown, Jr.

On September 28, 2012, California Governor Jerry Brown signed legislation to create a board to begin developing a proposed retirement savings program for California companies that do not offer a retirement plan. The plan called the California Secure Choice Retirement Savings Program will not be implemented until the California state legislature votes to implement the proposed plan solution. If implemented, it would be the first state-run retirement savings program for private-sector workers in the United States. With the anemic financial condition of American public-worker pensions, many believe it will be another mounting liability for state taxpayers. Unfunded pension liabilities continue to haunt California. Republican lawmakers in California felt that Roth IRAs would be a more efficient solution for low-income workers.

The state of California has US$ 617 billion in public debt; furthermore, California has higher per capita debt than the national average.

This new board is tasked to create a plan that would automatically withhold 3% of workers’ pay without any type of employer sponsored retirement plan into a retirement account. The account would be portable. California employees would have to opt out of the plan or the deductions would become automatic. Plan participants would have to sign a liability waiver stating that California would not be liable for losses.

Who will manage the money?
In the legislation it calls for the 3% contributions to be managed by the California Public Employees’ Retirement System (CalPERS) for a fee, the CA State Treasurer, and/or a private manager. This will be determined by the investment board.

California Secure Choice Retirement Savings Investment Board Composition

  • California State Treasurer
  • California State Controller
  • CA State Director of Finance (designee)
  • Expert in Retirement Savings and Investments (Appointed by the CA Senate Committee on Rules)
  • Small Business Representative (Appointed by CA Governor)
  • Public Member (Appointed by CA Governor)
  • Employee Representative (Appointed by CA Speaker of the Assembly)

DP World and NIIF Joint Venture Embarks on First Investment



Hindustan Infralog Private Limited, the US$ 3 billion joint venture formed in January 2018 between DP World and the National Investment and Infrastructure Fund (NIIF) to invest in ports, logistics and warehousing, agreed to acquire 90% of Continental Warehousing Corporation (Nhava Seva) Limited for US$ 400 million. 10% is being retained by the company’s founders – the Reddy family. Adi Keshav Reddy is the founder of Continental Warehousing. This is the first investment of the Hindustan Infralog platform.

The sellers include Warburg Pincus India Pvt Ltd, International Finance Corporation (IFC) and Aureos Capital, a joint venture between the CDC and Norfund that was acquired by Abraaj Capital.

Barclays, Citi and Detusche Bank advised on the transaction.

Continental Warehousing was formed in 1997 and is one of India’s biggest container warehousing firms – operating container freight stations and private freight terminals across India. In April 2011, Warburg Pincus invested in Continental Warehousing, committing US$ 100 million. In December 2015, IFC invested US$ 25 million in equity and lent US$ 35 million in debt to Continental Warehousing.

In India, DP World has been operating container port terminals since 1997.

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SWFI First Read, March 18, 2018



Surbana Jurong and China Vanke Tie up Deal for Industrial Town Projects

Surbana Jurong, a real estate development company focused on urban projects, inked a deal with China Vanke to partner on new industrial towns in China’s midwest regions. Surbana Jurong is majority-owned by Singapore’s Temasek Holdings. The first joint project is Vanke’s Jianzhou Dream Town in Chengdu. Surbana will provide the design for this project.

PIF Eyes Hollywood Talent

Saudi Arabia’s Public Investment Fund (PIF) is looking at investing in a less than 10% stake in Endeavor, LLC, a talent agency holding entity of WME for a reported US$ 400 million.

Alex Wilmot-Sitwell of BAML Resigns

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Mubadala Invests in No Fly Zone Drone Radar Company



Data Collective led a US$ 15 million Series A round into Salt Lake City-based Fortem Technologies, Inc., a company that works on solutions that can detect, identify and classify drones in real time to maintain airspace safety. Other investors in the round include Boeing, Mubadala Investment Company, Manifest Growth, New Ground Ventures and Signia Venture Partners.

Ibrahim Ajami, Head of Mubadala Ventures said in the press release, ” Mubadala is excited to work with Fortem and its outstanding leadership team to help grow its business to new markets.”

Ajami added, “We strongly believe the TrueView radar is essential to maintain a safe airspace for both the aircraft and the critical infrastructure on the ground.”

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