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Russia-China Investment Fund Slated for June 2012

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Russia Direct Investment FundAccording to the press release, “During a meeting held today as part of the China-Russia Investment and Trade Forum, First Deputy Prime Minister of Russia Igor Shuvalov and Executive Vice-Premier of the State Council of China Li Keqiang announced the dates to create the Russia-China Investment Fund and outlined the sectors earmarked for the first investments.

“By creating the Russia-China Investment Fund, the RDIF and China Investment Corporation will once again highlight the strong results of economic cooperation between Russia and China,” Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said during the meeting between Igor Shuvalov and Li Keqiang. “The Fund’s capital is planned to reach USD 4 billion, with the RDIF and China Investment Corporation each contributing USD 1 billion and the remaining USD 2 billion coming from other Chinese institutional investors. The Fund is to be established by the end of June 2012.”

Mr Dmitriev also outlined industries to receive the first investments: these will include engineering, agriculture, forest and timber industries, transportation, and logistics. “Special attention will be given to energy efficiency and energy saving projects”, he added. “Up to 70 per cent of the Fund’s capital will be invested in businesses and projects across Russia and other CIS countries, and the remaining 30 per cent will focus on Chinese businesses and projects with Russian involvement. The Russian economy might see hundreds of millions of dollars in joint investments from Russia and China as early as the end of 2012.”

RDIF executives and China Investment Corporation also met today to hold talks led by CIC Chairman and CEO Lou Jiwei.

To manage the Fund, a Management Company is currently being established, with the RDIF and CIC as the founders controlling 60 and 40 per cent of the equity, respectively. The RDIF will nominate most of the key executives for the Management Company while also supervising the activities to search, select, analyse and evaluate investment projects appealing for the Fund.”

Read more: RDIF Press Release

SWFI First Read, May 25, 2018

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MedInvestGroup Pushes Investment into Russian High-Tech Oncology Centers

The Russian Direct Investment Fund (RDIF) and Mubadala Investment Company have attracted MedInvestGroup, which manages a network of the PET Technology regional oncology and radiological centers, as a strategic investor in the joint management and development of a network of cancer diagnosis and treatment centers. The deal aims to significantly improve the efficiency of the already functional centers in Podolsk and Balashikha. The corresponding agreement was announced today at the St. Petersburg International Economic Forum.

Southern Satellite City and RDIF Reach a Financing Agreement

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French Industrial Giants Find Opportunity with RDIF

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A number of French industrial companies continue to invest within Russia, finding opportunities within the mega country. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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CPPIB Targets 33% in Emerging Markets by 2025

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The Canada Pension Plan Investment Board (CPPIB) generated a net return after expenses and pension contributions of 11.6% for the fiscal year ended March 31, 2018, versus its reference portfolio of 9.8%. For the reported fiscal year, CPPIB grew its net assets to a new high of C$ 356.1 billion (US$ 277.2 billion), compared to C$ 316.7 from the year previous.

Mark Machin, President and Chief Executive Officer at CPPIB, attributed the performance to the rising tide in public equity markets across most geographies, whose volatility in recent months was buoyed by significant fourth quarter earnings in the fund’s private holdings. Public and private equities, CPPIB’s first and third largest asset classes by exposure at 38.8% and 20.3%, saw estimated returns of 11.4% and 16.1%, respectively. Machin joined CPPIB in 2012 and was moved to the top in June 2016, following the departure of Mark Wiseman. Machin has a knack for the Asian region, being CPPIB’s first president for Asia and also spent nearly 20 years in Asia, working at Goldman Sachs. CPPIB plans to continue heavily investing in the APAC region, along with India.

Emerging Markets

“By 2025, we will invest up to a third of the Fund in emerging markets, which by that time are anticipated to account for 47% of global GDP,” said Machin in his section of the annual report outlining the pension’s updated strategic plan. CPPIB currently has C$ 56.1 billion invested in emerging markets, C$ 22.4 billion of which is wrapped up in China.

Foreign and emerging markets continued to dominate in CPPIB’s private equity investments with returns of 16.0% and 19.5%, compared to 1.8% for their Canadian counterparts. Asia was a standout market for the pensioner, which raised its exposure to private equity deals in the region by nearly 28% from C$ 13.4 billion to 17.1 billion, closed six direct investments worth C$ 1.6 billion, committed C$ 1.7 billion towards eight funds, and completed three secondary transactions for C$ 400 million.

With 275 global transactions completed over the fiscal year, CPPIB’s geographic exposure places 15.1% of its assets at home in Canada, 37.9% in the neighboring United States, 13.2% in continental Europe, 5.6% in the United Kingdom, 3.1% in Australia, and a whopping 20.4% in Asia.

Public Equities

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