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New Zealand SWF looking to buy farms

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According to NZ Interest, “The New Zealand Superannuation Fund could potentially partner in the buy up of clusters of farms as it moves to invest between NZ$300 million and NZ$500 million through its rural land strategy over the next three to five years.

In an interview with interest.co.nz Super Fund CEO Adrian Orr emphasized the rural push was a global, rather than merely New Zealand, one. However, he noted New Zealand was one of the best farms in the world so should “get a slice” of the investment.

Orr, former Reserve Bank deputy governor and head of financial stability, said the rural strategy was largely driven by riding the wave of global population growth, demand for protein and scarce resources. Created by the previous Labour-led government to help offset the burden of paying universal superannuation to a generation of retiring baby boomers, the Super Fund’s value stood at NZ$16.71 billion as of April 30.

Asked whether the 16 Crafar farms being sold by receivers KordaMentha or Dairy Holdings Ltd, the dairy farming business controlled by Allan Hubbard the owner of struggling South Canterbury Finance, might be of interest, Orr said it was too early to rule out anything.

“We don’t mind clusterings of farms because as part of a global portfolio it doesn’t have to be diversified just to New Zealand,” Orr said. “It (the Super Fund) is diversified globally.”

The Super Fund was currently working towards selecting managers who would have their own capital in the game and oversee the rural land investment.”

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Allianz Joins UK Student Housing Platform

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Since 2010, a rush of foreign capital has been plowed into the U.K. student housing market. On June 22, 2018, Greystar Real Estate Partners, LLC and Public Sector Pension Investment Board (PSP Investments) sold an interest in their joint venture called Chapter to Allianz. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Turkish President Erdogan Wins Re-Election

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Turkish President Recep Tayyip Erdogan won re-election, collecting 53% of the votes, while his closest rival Muharrem Ince generated a vote count of 31% – this is with 99% of the votes counted, according to Turkish state media Anadolu.

Erdogan gave a victory speech in Ankara, commenting, “The winner of this election is each and every individual among my 81 million citizens.”

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Will Sovereign Funds Capture Opportunity in Trump’s Space Force?

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U.S. President Donald Trump is keen on making a mark in the defense industry by launching a Space Force (joining – Army, Navy, Air Force, Marines, Coast Guard) – attempting to ensure American dominance in space. Morgan Stanley eyes a potential windfall, seeing a US$ 1 trillion economy brewing. Morgan Stanley released a note to clients commenting that a Space Force, “could address critical vulnerabilities in national security, raising investor awareness in the formation of what we see as the next trillion-dollar economy.”

Sovereign wealth funds and other asset owners are major financial backers of semiconductors, defense, and companies focused on satellites and rockets. According to SWFI data, since 2014, there has been an increase in direct sovereign wealth fund investment in the aerospace and defense industry. In 2017, sovereign funds directly invested US$ 4.76 billion in aerospace and defense.

On June 18th, President Trump said, “Very importantly, I’m here by directing the Department of Defense and Pentagon to immediately begin the process necessary to establish a space force as the sixth branch of the armed forces. That’s a big statement.”

Sovereign Wealth Investment

From a sovereign wealth fund perspective, many wealth funds are active in investing strategically in the aerospace and defense arena. Mubadala Investment Company has been active in aerospace investments such as Piaggio Aerospace SpA, while SoftBank Group has tremendous exposure to artificial intelligence companies and semiconductors. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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