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CDPQ and CKD IM to Acquire Enel Renewable Energy Assets in Mexico

Caisse de dépôt et placement du Québec (CDPQ) and CKD Infraestructura México S.A. de C.V. (CKD IM), an investment vehicle funded by some of Mexico’s largest pension investors, acquired an 80% stake in a portfolio of wind and solar assets owned by Enel Green Power México S.r.l. de C.V, the Mexican unit of Italian renewable energy company Enel Green Power (Enel), in a deal worth US$ 1.35 billion. This transaction blueprints the “Build, Sell and Operate” aka BSO model, which is being used by many in the renewable energy infrastructure space.

Milestone Deal in Mexican Renewable Infrastructure

The transaction will mark the investment platform’s first venture in the renewable energy sector since its creation in 2015, joining CDPQ and CKD IM’s portfolio of investments in Mexican road and telecommunication infrastructure. The Mexican government has set a goal of generating 40% of its power supply from renewable energy sources by 2035.

“This transaction broadens our exposure in renewable energy alongside a leading operator,” said Macky Tall, Executive Vice-President of Infrastructure at CDPQ in a press release. “By creating a platform with key Mexican partners in 2015, we wanted to be positioned to identify the best opportunities in Mexico, a priority market for CDPQ.” Mr. Tall was ranked eighth in SWFI’s fifth annual Public Investor 100 list, which includes some of the most significant and impactful public investor executives of 2017.

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NZ Super Resumes Government Contributions

The New Zealand Superannuation Fund (NZ Super) has resumed receiving contributions from the New Zealand government in the face of rising obligations as an increasing proportion of the country’s population approaches retirement. According to a statement released by the fund’s managing Board of Guardians, the government plans on investing US$ 5.3 billion into NZ Super between now and June of 2022, with the first payment scheduled for December 15, 2017.

Policymakers believe the resumption of government contributions, which were halted in July of 2009, is expected to ease the burden on the country’s current taxpayers and future generations. Withdrawals from NZ Super are expected to peak in 2078, at which point the fund will be covering 12.8% of New Zealand’s pension obligations. The new wave of contributions will initially be invested in passive, low cost equity and bond investments, according to Catherine Savage, Chair of the Guardians.

Recent Performance & Leadership Change

NZ Super has enjoyed one of its best annual performances since its founding in 2001, with a reported return of 20.7% before tax for a 12-month trailing period ended June 30, 2017, up 5 billion NZD (US$ 3.6 billion) compared to 2016. NZ Super generated 21.85% annual return in its global equities, developed market portfolio, according to its 2017 annual report.

NZ Super faces a changing of leadership in the coming year with the exit of chief executive Adrian Orr, who will leave the Fund officially in March of 2018 to serve a five-year term as Governor of the Reserve Bank of New Zealand. Mr. Orr has earned a spot numerous times in the Sovereign Wealth Fund Institute’s Public Investor 100 annual ranking over the years, most recently in 2017 at #3.

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iZettle Raises US$ 47 Million in Series E, Prepares for 2018 Listing

Card transaction platform iZettle AB has raised another US$ 47 million in Series E funding, this time with new backing from Sweden’s AP4 and early-stage venture capital firm Dawn Capital. Previous investors in the Stockholm-based payments business include American Express, MasterCard, Intel, and Spain’s Santander Group. With US$ 235 million in equity to date, iZettle is quickly approaching an estimated valuation of US$ 1 billion.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Concerns Raised at Potential BlackRock Takeover of CalPERS’ Private Equity

The California Public Employees’ Retirement System (CalPERS) has been analyzing options on what to do with its massive US$ 26 billion private equity program. The pension system has embraced the mantra of reducing cost, reducing complexity and reducing risk, the hallmark of its program called “INVO 2020”. CalPERS also wants less, but more strategic relationships with external money managers. At one point, CalPERS was contemplating increasing its direct investment staff to model Canadian pension funds such as Canada Pension Plan Investment Board (CPPIB), OMERS and the Ontario Teachers’ Pension plan. The pendulum has begun to swing the other way as reported earlier by SWFI research staff.

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