Connect with us

European Asset Owners Rally Behind Billion Plus EM Green Bond Fund

Published

on

The International Finance Corporation (IFC) and French asset manager giant Amundi revealed the close of a US$ 1.42 billion green bond fund focused on capacity-building activities in emerging markets, made possible with backing of a number of European pensions, including France’s Etablissement de Retraite Additionnelle de la Fonction Publique (ERAFP), and Swedish funds Alecta, AP3, and AP4.

Thought to be the world’s largest targeted green bond fund to date, the Amundi Planet Emerging Green One (EGO) saw its start with a US$ 256 million cornerstone investment from the IFC, and is approximately 80% funded by private financiers, with the remaining 20% coming from public institutions.

Catalyst

Launched nearly a year ago, the Luxembourg-listed fund is expected to deploy up to US$ 2 billion in funds towards emerging market green bonds through 2025 as proceeds are reinvested over the course of its seven year lifespan – and thereby increase the capacity of banks in the developing world to fund climate change-related investments. Investment guidelines for the fund stipulate that capital will initially go towards listed securities issued by sovereign and quasi-sovereign financial institutions that will be screened against a robust set of internationally recognized environment, social, and governance (ESG) criteria. Geographically, the fund will maintain a minimum exposure of 15% in each of its three target regions: Eastern Europe and the Mediterranean, the Americas, and Asia. Approximately 30% of the fund’s capital has been invested so far, according to Jean-Jacques Barbéris, co-head of institutional clients coverage at Amundi.

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

Like its U.S. Peers, Legg Mason Seeks to Trim Costs

Published

on

Legg Mason Inc., a Baltimore-based asset manager, has announced a reduction in workforce as is prepares to streamline operations and save money. Legg Mason’s leadership commented that assets under management fell 5 % year-on-year. Legg Mason currently manages US$ 727.2 billion (as of December 31, 2018), which is down from the previous US$ 767.2 billion. CEO Joseph A. Sullivan noted that a global operating platform will centralize fund administration, IT, and other departments that work with affiliates. Sullivan did not discuss the number of layoffs expected, or specify which areas would be impacted. Legg Mason disclosed they planned to close a quarter of its exchange-traded funds in March 2019. These three ETFs include a U.S. strategy, emerging markets, and a developed markets strategy outside the U.S. However, these funds run around US$ 28 million in assets under management.

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

Continue Reading

Monetary Authority of Singapore Establishes Corporate Governance Advisory Committee

Published

on

On February 12, 2019, the Monetary Authority of Singapore (MAS) revealed the creation of a Corporate Governance Advisory Committee (CGAC). CGAC was formed to advocate for good corporate governance practices among listed companies in Singapore. Bobby Chin, Director of Singapore Telecommunications Limited, will be the Chair of CGAC. According to a MAS press release, “CGAC will identify current and potential risks to the quality of corporate governance in Singapore.”

MAS formed the Corporate Governance Council (Council) in February 2017. The Council was dissolved after it pushed out a publication of its final recommendations on August 6, 2018.

Continue Reading

Mubadala and SAMI Forge Ties to Explore Areas of Collaboration

Published

on

Mubadala Investment Company and Saudi Arabia Military Industries Company (SAMI), which is a defence company owned by Saudi Arabia’s Public Investment Fund (PIF), agreed to a deal to partner and co-invest in defense manufacturing. This partnership grows defence ties between Saudi Arabia and the United Arab Emirates.[ 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.