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Future Fund Fiscal Year Returns 12.4% Ex-Telstra

According to the press release, “the Future Fund’s return for the financial year ending 30 June 2011 (excluding the Fund’s Telstra holding) was 12.4%. Over the three years ending 30 June 2011 the return was 6.0% per annum. Since the first contribution to the Future Fund, a little over five years ago on 5 May 2006, the Fund has generated a return of 5.2% per annum. The return for the last quarter of the financial year was 0.6%.

The Future Fund’s Telstra portfolio returned 2.9% over the year and 2.7% for the quarter. Reflecting the long-term investment mandate for the Future Fund, the Board of Guardians will continue to focus on performance over rolling ten year periods using rolling five year
periods to gauge progress.

Mr David Murray, Chair of the Board of Guardians, said that the positive returns of 2010/11 reflected the careful construction of the portfolio since the Fund’s inception in May 2006.

“We have witnessed an extremely difficult global economic environment over the last few years and this is continuing to present challenges,” said Mr Murray.

“The Board remains focussed on prudently building a diverse portfolio that is capable of generating good returns in positive environments but provides some protection in weaker markets.”

“The portfolio’s positioning, and our dynamic approach to building and adjusting the portfolio, has helped generate solid performance for the Fund since inception and positions it appropriately for its long term mandate.”

“The reduction in the holding of Telstra shares has continued in line with the Board’s longstated strategy to reduce the holding in an orderly way over the medium term and without untoward market impact.””

Read more: Future Fund Press Release

SouthGobi’s CEO Arrested, CIC Struggles with Investment

The China Investment Corporation (CIC) has long struggled with its investments in coal assets, specifically in globally-listed coal miner SouthGobi Resources Ltd, which operates its flagship coal mine in Mongolia. In November 2009, CIC and SouthGobi Resources inked a convertible debenture deal. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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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.

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

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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.

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

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