swf investment in all year 2010_barbary

8/3/2019 SWF Investment in All Year 2010_Barbary

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BEIJING CHICAGO HONG KONGCAMBRIDGE DELHI DUBAI JOHANNESBURG

PARISLOS ANGELES MADRID MUMBAI MUNICH NEW YORKMOSCOW RIYADHLONDON

CASABLANCA

SAN FRANCISCO SO PAULO SEOUL SINGAPORE TOKYO TORONTO ZURICHSHANGHAI

Braving the New World

Sovereign Wealth Fund Investment in 2010

Victoria Barbary

May 2011

Copyright 2011 by Monitor Company Group, L.P.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying,recording, or otherwise without the permission of Monitor Company Group, L.P.

This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.

COMPANY CONFIDENTIAL


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3/12

Value of SWF Investments by Target Sector

In 2010, SWFs returned to investments in financial services, and found investments in thecommodity value chain attractive.

US$ bn

5.9

50

.

3.6

EnergyCoal, Petroleum & Natural Gas

Banking, Insurance, Trading

Other

1.7

1.540

10.2

Hotels, Restaraunts, Motels

Construction

Steel Works

Mining

.

13.81.720

30.

3.4

21.614.9 Automobiles & Trucks

Transportation

Retail

Real Estate

14.7

3.8

4.3

6.6

1.2

1.1

10

7.02.5

2.710.6

Other: Consumer Goods; Healthcare, Medical Equipment, Pharmaceutical Products; Recreation; Personal and Business Services; Printing & Publishing;

2.7 2.23.0

.1.0

0

H2 2010H1 2010H2 2009H1 2009

3ZAD-EDP-SWFs 2011-May 2011-VCB Copyright 2011 Monitor Company Group, L.P. Confidential

, ,Business Supplies and Shipping Container; Business Equipment ; Steel Works ;and Wholesale.

Publicly available data for SWF equity & real estate deals, joint ventures and capital injectionsSource: Monitor-FEEM SWF Transaction Database


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SWF Investments in Financial Services, 2008-2010

SWFs direct investments in Financial Services are becoming more diverse

10.481.7100%

20.4 $bn

90%

80%

Insurance

Private Equity

Emerging MarketInvestment Funds

70%

60%

58.4%

66.9%

76.6%

Other

Stock Exchanges

Other Investment Funds

Asset Managers

50%

40%

4.3%4.8%

8.2%

26.8%15.4%

3.1%4.9%

30%

20%

5.1%

1.5%4.1%

5.6% 2.5%9.7%

2008

0%

20102009


Note: Publicly available data for SWF direct investments, joint ventures and capital injectionsSource: Monitor-FEEM SWF Transaction Database


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Geography of SWF Investments in Financial Services, 2008-2010

Emerging markets are becoming more important destinations for SWF investment infinancial services

81.7 10.4 20.4$bn

80%

90%

35.0%

OECD

BRIC

Other Emerging &Frontier Markets

60%

70%67.0%

49.0%

26.9%60.6%

40%

50%

23.4%

10%

20%

24.0%

0%

2008 2009 2010

9.7%4.4%


,Source: Monitor-FEEM SWF Transaction Database


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SWF investment in Real Estate 2005-2010

Since 2005, SWF investment in property has largely followed global market trends

$US Bn

10

11

11.3

10.0

Europe

Asia Pacific

MENANorth America

7

8

9 4.4

2.8Other

5.9

.

2.44

5

65.5

3.72.7

0.5

5.9

0.92.5 2.4

1.92.2

1

2

34.20.5

0.8

.

1.0

0

200720062005 2009 20102008

0.7 0.8 0.5




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SWF investment in Real Estate 2005-2010

Breaking SWF real estate property purchases down by asset class, however, exposes theeffect of the Global Financial Crisis

$US Bn

0.910

11

12

10.0

11.3

1.1

Property

Management

Developers

7

8

92.6

0.25

60.65.9

6.0

5.5

9.3

2.7

0.1 0.3

.

2

3

3.4..

3.5

5.2 0.7

1.4

.

0

2008 20102009200720062005




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Value of SWF Investments by Target Region

Asia was the most attractive market for SWFs in 2010.

40US$ bn

3031.1

North AmericaEurope

MENA

Asia-Pacific

1.5 20.1

.

21.6

8.2

4.0

21.2

2.3

1.1 1.0

3.8

10.9

15.9

1.8

7.8

1.61.69.9

.10

3.54.03.56.9

5.7

Other: Latin America, Sub-Saharan Africa, and Asia (Non-Pacific).

0

Q4 2010Q3 2010Q2 2010

.

H2 2010H1 2010 Q1 2010




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Value of SWF Deals by Location of Target:

OECD vs. Emerging Markets

Reversing the trend of the last half-decade, SWFs turned their eyes to emerging markets in2010.

US$ bn100%

...

10%

..

27% 27%

.

14%

.

31%

...

9%

.. ...

Emerging Markets

OECD

75%

69%

51%58% 56%

64%61%

53%

75%

50%

73%

91%

69%

86%

73%

90%

25%

31%

58%

39%36%

44%42%49%

25%

47%

0%

Q12010

20102009 Q42010

200820072006 Q32010

2005200420032002 Q22010

20012000


Note: Publicly available data for SWF equity & real estate deals, joint ventures and capital injections

Source: Monitor-FEEM SWF Transaction Database


10/12

Investment Flows: Middle Eastern SWF investments in 2010

Middle Eastern Funds rediscovered Asia in 2010, and invested heavily in Europe.

MENA to Russia &

Central Asia5 deals, $1 bn

MENA to AsiaPacific

MENA to NorthAmerica

14 deals, $7.5bn

17 deals, $13.5bn

Within MENA25 deals, $1.7bn

,

MENA to LatinAmerica1 deals, $2.7bn

o u -Saharan Africa3 deals, $0.3bn



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Investment Flows: Asia-Pacific SWF investments in 2010

By contrast, Asian SWFs sought out investments in North America, as well as looking toAsia.

Asia Pacific to Russia& Central Asia8 deals, $0.7bnAsia Pacific to Europe

11 deals 1.7bn

Within Asia Pacific51 deals 11.5bn

Asia Pacific toNorth America

, .

Asia Pacific to Sub-

Asia Pacific toLatin America3 deals, $0.6bn

Saharan Africa2 deals, $0.1bn



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Biggest spending funds of 2010

100%52.7

QIA and CIC accounted for over 40 percent of our SWFs annual direct investmentexpenditure

23%

8%

Mubadala Development Company

China Investment Corporation

Other

Qatar Investment Authority

19%Kuwait Investment Authority

Khazanah Nasional Bhd

International Petroleum Investment Company

Temasek Holdings

15%

50%

10%

Libyan Investment AuthorityGovernment of Singapore Investment Corporation

4%

5%

5%

25%5%

Other: Future Fund; National Pension Reserve Fund; Government Pension Fund-Global; Abu Dhabi Investment Authority; Korea Investment Corporation; NewZealand Su erannuation Fund Abu Dhabi Investment Council State Oil Fund of the Re ublic of Azerbai an State General Reserve Fund Oman Investment

0%

2010

3%2%


Fund; and Istithmar World PJSC.

Note: Publicly available data for direct SWF equity & real estate deals, joint ventures and capital injectionsSource: Monitor-FEEM SWF Transaction Database

swf investment in all year 2010_barbary

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