Pension funds allocating their assets to private equity have reaped little or no rewards on average, according to a Yale study.
Martijn Cremers, associate professor of finance at the Yale School of Management, concluded in a recent paper that returns on private equity over the last 10 years were no better than the stock market. Investments in public equity were on average unlikely to yield more profit than investments in stocks or bonds, because of their high management fees. However, some experts disagreed with the findings, saying that private equity is still a good option for asset allocation.
According to the paper, private equity funds had a spectacular run in the 1990s where it returned an average net return of 21.5 percent to its investors. Impressed by this performance, institutional investors increased their investment in private equity, bringing the total funds in private equity from $200 million to $2 billion in the last 10 years. But the Midas touch of private equity disappeared at the turn of the century and the returns fell to an average of 4.5 percent in the last 10 years, the paper said.
“If I had to summarize it in a nutshell, pension funds got similar returns to what they would have gotten had they invested in passive equities,” Cremers said.
Since private equity is more volatile than stocks or bonds, a portfolio with a large asset allocation in it would have a high amount of risk. For example, the paper said, the net returns from private equity fell from a profit of 36 percent in 2000 to a loss of 21 percent the next year.
Even as the profits in private equity took a hit in the aftermath of the dot-com bubble, private equity fees continued to climb. Cremers explained that in addition to taking a cut from the share of returns, known as the performance fee, private equity managers also charge an overall management fee on the invested capital. He said the average management fee has increased from 2.4 percent in 2000 to 4.2 percent in 2010. Private equity fund managers have taken 70 percent of the gross profits made in the last decade as fees, Cremers said.
Steven Kaplan, professor of entrepreneurship and finance at the University of Chicago, disagreed with the findings. According to his research, every dollar a pension fund put into private equity earned 20 percent more than it would have in Standard & Poor’s 500 index. Accounting for management and performance fees, he said, private equity funds have outperformed public markets by an average of three percentage points over the past 20 years.
Kaplan pinned the drastic difference in results on unreliable data.
“Cremers does not have particularly good performance data [but] we do,” Kaplan said.
In the past several studies have relied on commercial data sets provided by Thomson Venture Economics, which is problematic for analysis, Kaplan said.
Ayako Yasuda, associate professor of management at the University of California, Davis, shed light on the problems of gathering definitive data. Unlike pension funds, private equity funds are not legally required to disclose their activities, so all data available is based on voluntary disclosure, which is subject to bias.
“What’s missing is not just random noise,” Yasuda said. “Even a very small percentage of the missing data could mean that it is being systematically obstructed, which could create hidden bias.”
The difficulty in collecting data about private equity makes the field’s performance uncertain, if not controversial, Kaplan said.
Yasuda contended that the 4.5 percent average return, which Cremers calculated, is no worse than the turbulent performance of the stock markets in the last decade.
“It’s a period in which the benchmark also performed poorly,” Yasuda said.
She agreed private equity funds tend to have higher fees than other investment asset classes, but said the performance fees are typically structured to avoid consuming all the net returns for investors in low-performance funds.
In an underperforming market, private equity fees may seem exorbitant, but they are within reason during economic booms, such as the 1990s, Deputy SOM Dean Andrew Metrick said. Compared to a hedge fund, private equity charges a lot less, he said.
Metrick said that private equity funds also allow its institutional investors to invest in buyouts and ventures as partners, which means that pension funds may bypass a large portion of the overall fee. Such transactions are not included in Cremers’ data because they are not available to the researchers, Metrick said.
The key for pension fund managers is to find the right private equity investments, which requires enormous skill and long-term dedication, Metrick said.
For the unsophisticated investor, making investments in private equity funds is “like throwing darts at a newspaper,” he said.
The paper was co-authored by Aleksandar Andonov and Rob Bauer of Maastricht University in the Netherlands.
http://tourism9.cm/ http://vkins.com/
2012年2月21日星期二
2012年1月9日星期一
PLUS issues world’s largest Sukuk worth RM30.6 billion
KUALA LUMPUR: Projek Lebuhraya Usahasama Bhd (PLUS) is set to issue RM30.6 billion Sukuk –the largest global Sukuk and Malaysia’s single largest bond issuance to date.
The Sukuk issuance, scheduled for Jan 12, follows the privatisation of PLUS Expressways Bhd (PEB) and the restructuring of the toll concessions under PEB and Penang Bridge Sdn Bhd (PBSB).
The concession agreements of these highways will be novated to PLUS, a wholly owned subsidiary of PLUS Malaysia Sdn Bhd – the investment vehicle of UEM Group Bhd (51 percent) and the Employees Provident Fund Board (EPF; 49 per cent).
Proceeds from the Sukuk issuance will be utilised to part finance the purchase of assets, liabilities, businesses, undertakings and rights of five toll concessions.
They include Projek Lebuhraya Utara-Selatan Bhd, Expressway Lingkaran Tengah Sdn Bhd, Konsortium Lebuhraya Butterworth-Kulim Sdn Bhd, Linkedua (Malaysia) Bhd and PBSB.
The proceeds will also be utilised to fund capital expenditure, working capital and other general funding requirements.
PLUS had successfully raised the required long term financing via the establishment of up to RM34.35 billion nominal value Islamic Medium Term Notes Programmes within a compressed timeline notwithstanding the magnitude of the issuance size.
The repayment profile of the Sukuk ranges from 5 to 27 years and the weighted average yield is approximately 5 per cent.
The Sukuk was accorded the highest long-term rating of AAA by Malaysian Rating Corporation Bhd (MARC), reflecting the strong credit strength of PLUS Bhd and its importance to the Malaysian Government.
A signing ceremony was held recently to commemorate the establishment and issuance of the Sukuk.
The signatories were Datuk Izzaddin Idris, Group Managing Director/Chief Executive Officer of UEM Group, and Datuk Shahril Ridza Ridzuan, Deputy Chief Executive Officer (Investment) of the EPF.
Other signatories included Datuk Seri Nazir Razak, Group Chief Executive, CIMB Group. CIMB Investment Bank Bhd was appointed the Financial Adviser, Sole Principal Adviser, Sole Lead Arranger and Joint Lead Manager for the transaction.
Representing other Joint Lead Managers of the transaction and present at the signing ceremony were Kok Tuck Cheong, CEO of AmInvestment Bank Bhd; Datuk Seri Abdul Wahid Omar, President and CEO of Maybank Group; and Mike Chan, Officer-in-Charge of RHB Investment Bank.
Commenting on the transaction, Izzaddin Idris said: “The successful issuance and strong demand for our Sukuk demonstrates the depth and liquidity of the local market. It is also an indication of investors’ confidence towards PLUS’ operations and assets.
“I am pleased that not only are we able to successfully issue one of the world’s largest Sukuk but we are able to play a role in further enhancing Malaysia’s prominence in international Islamic capital markets in line with the Government’s aspiration to establish Malaysia as an Islamic financial hub.”
Shahril Ridza Ridzuan added: “We are confident our investment in PLUS will provide a long term and stable source of income that fits EPF’s risk-return criteria. This investment is part of our overall strategic allocation of assets into low volatility and long-term sectors. The successful Sukuk fund-raising exercise will secure a long-term profile of returns that matches our asset-liability requirements.”
Nazir commented on the significance of the event, saying: “The signing ceremony represents the culmination of our joint efforts, and I am proud to say that we have made a few landmark deals along the way.
“At RM23 billion, PEB’s delisting was the largest privatisation exercise in 2011 and the 2nd largest ever in Malaysia. And to fund this privatisation as well as the purchase of PBSB from UEM Builders Bhd, we arranged the largest syndicated loan in ASEAN in 2011. But the icing on the cake must surely be the Sukuk issuance – at RM30.6 billion, the largest ever Sukuk issuance in the world,” he said
http://tourism9.com/
The Sukuk issuance, scheduled for Jan 12, follows the privatisation of PLUS Expressways Bhd (PEB) and the restructuring of the toll concessions under PEB and Penang Bridge Sdn Bhd (PBSB).
The concession agreements of these highways will be novated to PLUS, a wholly owned subsidiary of PLUS Malaysia Sdn Bhd – the investment vehicle of UEM Group Bhd (51 percent) and the Employees Provident Fund Board (EPF; 49 per cent).
Proceeds from the Sukuk issuance will be utilised to part finance the purchase of assets, liabilities, businesses, undertakings and rights of five toll concessions.
They include Projek Lebuhraya Utara-Selatan Bhd, Expressway Lingkaran Tengah Sdn Bhd, Konsortium Lebuhraya Butterworth-Kulim Sdn Bhd, Linkedua (Malaysia) Bhd and PBSB.
The proceeds will also be utilised to fund capital expenditure, working capital and other general funding requirements.
PLUS had successfully raised the required long term financing via the establishment of up to RM34.35 billion nominal value Islamic Medium Term Notes Programmes within a compressed timeline notwithstanding the magnitude of the issuance size.
The repayment profile of the Sukuk ranges from 5 to 27 years and the weighted average yield is approximately 5 per cent.
The Sukuk was accorded the highest long-term rating of AAA by Malaysian Rating Corporation Bhd (MARC), reflecting the strong credit strength of PLUS Bhd and its importance to the Malaysian Government.
A signing ceremony was held recently to commemorate the establishment and issuance of the Sukuk.
The signatories were Datuk Izzaddin Idris, Group Managing Director/Chief Executive Officer of UEM Group, and Datuk Shahril Ridza Ridzuan, Deputy Chief Executive Officer (Investment) of the EPF.
Other signatories included Datuk Seri Nazir Razak, Group Chief Executive, CIMB Group. CIMB Investment Bank Bhd was appointed the Financial Adviser, Sole Principal Adviser, Sole Lead Arranger and Joint Lead Manager for the transaction.
Representing other Joint Lead Managers of the transaction and present at the signing ceremony were Kok Tuck Cheong, CEO of AmInvestment Bank Bhd; Datuk Seri Abdul Wahid Omar, President and CEO of Maybank Group; and Mike Chan, Officer-in-Charge of RHB Investment Bank.
Commenting on the transaction, Izzaddin Idris said: “The successful issuance and strong demand for our Sukuk demonstrates the depth and liquidity of the local market. It is also an indication of investors’ confidence towards PLUS’ operations and assets.
“I am pleased that not only are we able to successfully issue one of the world’s largest Sukuk but we are able to play a role in further enhancing Malaysia’s prominence in international Islamic capital markets in line with the Government’s aspiration to establish Malaysia as an Islamic financial hub.”
Shahril Ridza Ridzuan added: “We are confident our investment in PLUS will provide a long term and stable source of income that fits EPF’s risk-return criteria. This investment is part of our overall strategic allocation of assets into low volatility and long-term sectors. The successful Sukuk fund-raising exercise will secure a long-term profile of returns that matches our asset-liability requirements.”
Nazir commented on the significance of the event, saying: “The signing ceremony represents the culmination of our joint efforts, and I am proud to say that we have made a few landmark deals along the way.
“At RM23 billion, PEB’s delisting was the largest privatisation exercise in 2011 and the 2nd largest ever in Malaysia. And to fund this privatisation as well as the purchase of PBSB from UEM Builders Bhd, we arranged the largest syndicated loan in ASEAN in 2011. But the icing on the cake must surely be the Sukuk issuance – at RM30.6 billion, the largest ever Sukuk issuance in the world,” he said
http://tourism9.com/
2012年1月3日星期二
Breaking into travel journalism: advice from the experts
Jill Starley-Grainger is a freelance journalist specialising in ethical and luxury travel
Use your blog to showcase to editors what you can do: They would want to see that you can write well-crafted, engaging copy, that you can sniff out good angles and that you are dedicated enough to have stuck with the blog for more than a few posts. Once you start getting commissions chances are your blog will slide. If you are getting paid travel writing gigs, then your time for unpaid work will rapidly diminish. But until you get those paid commissions, a blog is a good, easy starting point. As for getting followers, don’t worry about that. Focus on well-crafted, insightful travel journalism, perhaps with a niche angle, such as ‘travelling with a baby’ or ‘all about Germany’, and if your writing is up to scratch, people will follow you. Trying to SEO the heck out of your copy will only make it seem stilted.
You need to be able to dig out the angles the travel guides don’t cover: So many people think that because they are passionate about travel and can string a sentence together, that qualifies them to be a travel journalist. It doesn’t. You need to understand how to dig out facts – and to determine that they are facts – and how to find hidden gems and insider info. If it’s already in a guidebook, what are you adding to it? And you need to know how to write. I really can’t stress that enough. It’s a skill and not everyone has it, but so many people think they do. But you can learn it.
Travel journalism is hard work and the pay isn’t always great either: Forget fantasies of being sent round the world on an assignment with a huge commission, all expenses paid, and having endless days lolling on the beach or people-watching in cafes. Very few publications pay freelancers’ travel expenses (and getting a full-time writing or editing job on a major travel publication is just not going to happen until you have years of experience, and even then, chances are slim). Take a sample 1,000 word feature. If you are lucky and have years of experience, you might be commissioned to write a 1,000-word travel feature for a major publication. You will need to spend around a day crafting the pitch that wins the commission in the first place, three to five days working out your itinerary and arranging accommodation and so on. Another three to five days on the trip. Then at least two to four days writing the article to a standard high enough for this type of publication. If you are lucky, for this, you will be paid £400.
If you are pitching unusual destinations, make sure you’ve got a good angle: Breaking in by going to less popular locations – this is a tricky one. On the one hand, going somewhere unusual definitely gives you an edge. On the other hand, it’s hard to commission those features. The fact is, most people want to read about destinations they actually want to go to or are interested in. Hence the huge number of articles on France, Italy and so on. This is because it is these types of articles that sell papers and magazines.
On the other hand, people do like reading about unusual destinations, so while editors might not have as much scope to commission those places, if you pitch a good angle for one of them, then when they do come to commission a quirky one, your pitch might just be in the back of their mind. But do not pitch just a general ‘guide’ to an unusual destination. You still need an angle, whether it’s Baku’s beach scene or skiing in Iraq.
Emily Mathieson is Word of Mouth editor at Condé Nast Traveller
Demonstrating your knowledge and understanding of the magazine will endear you to an editor: The simple best way to get your writing published (and get paid for it) is to actually read the publication you’re pitching to. I am constantly surprised by how many people send me ideas that are clearly not relevant to the section I edit, or to Condé Nast Traveller in general (no, we don’t review youth hostels). If someone begins a pitch by clearly demonstrating their knowledge and understanding of the magazine, I am always more likely to read on.
Pitches which paraphrase press releases won’t be welcome. Keep it short, sweet and to the point. But PLEASE don’t just paraphrase a press release. It’s likely I’ll already have seen it, and why would I pay someone to do something I could do myself?
Include a signature at the bottom of your e-mail with your specialisms. I find it really helpful if writers have a signature at the bottom of their e-mail telling me about them, the specialisms and where they live (and it’s also often helpful if you can remind me at the beginning of an email who you are too). This will often jog my memory, or help me decide why a particular person is suitable for a certain piece.
Amanda Statham is travel editor of Cosmopolitan and You & Your Wedding magazines
A potted guide to pitching:
- Keep it short – no travel editor has half an hour to wade through 10 pages of pitch.
- Know the publication – I’m always being offered pieces for my Cosmopolitan travel news page. There isn’t a Cosmo travel news page…
- Check to see what the publication has covered recently; if it has covered your story or specific place, don’t pitch.
- If you refer the travel editor to your personal website, make sure it works and is up-to-date.
- Have an original hook; amazingly, backpacking around Thailand has been covered before.
Pat Riddell is the editor of National Geographic Traveller (UK)
Twitter can help your industry knowledge and give you ideas for pitches: Follow journalists, editors, newspapers and magazines but also follow travel blogs, tourist boards, airlines, tour operators, attractions, museums, hotel groups and so on. The more you know about travel and how it ‘works’, the better. Which destinations will be talked about in 2013, where are the new air routes, what are the new attractions… these are the pitches for the future. And by establishing a Twitter presence you can make a name for yourself as well as boosting traffic to your blog – or indeed titles you’ve written for.
Glen Mutel is the editor of ABTA Magazine and a regular columnist and contributor for National Geographic Traveller
Different approaches suit different titles: For trade titles such as ABTA Magazine, we’ve already got a fair idea of the destinations we want to cover over the next six to 12 months. So, unlike other titles, we don’t necessarily want budding writers to pitch us specific angles. Instead, I’d much sooner be sent a short email, detailing where a writer has been and where they know, with links to previous examples of their work. This last bit is absolutely crucial. Many travel editors will already have a list of writers that they rely on and it can be hard to get them to try new people. I’ve learned to turn a deaf ear when writers tell me they’ve written for the nationals, because it’s so seldom a guarantee they can write. I’d much sooner they show me specific examples of their work – proof they can put words in a readable order. If they can do that, there’s a good chance I’ll try them out with a general destination feature. Then, a few pieces down the line, I’ll start accepting ideas from them.
Postgraduate courses can equip you with everything you need: I don’t think the type of degree is necessarily that important. Earlier this year we were looking to fill the deputy editor position, and I don’t think we looked to hard at the type of degree. What mattered more was whether there was some type of postgraduate qualification – it needn’t be an MA. There are several shorter postgraduate schemes that can equip you with everything you need (I did a three-month course with PMA).
Peter Grunert is the editor of Lonely Planet Magazine
A particular specialism might give you an advantage: I definitely believe it’s a good idea to build a rapport with a commissioning editor before sending them a pitch. They will need to know that you share a wavelength and will also want to see evidence of the quality of your writing – ideally, writing that would suit their publication. I also feel that anyone with a specialism has an advantage. Are you based in a particularly interesting location? Can you bring fascinating travel insights from the point of view of someone who has great knowledge of art, motoring, history, sports and so on?
Check out all the advice from the live Q&A here.
This content is brought to you by Guardian Professional. To get more content and advice like this direct to your inbox, sign up for our weekly Careers update.
http://tourism9.com/
Use your blog to showcase to editors what you can do: They would want to see that you can write well-crafted, engaging copy, that you can sniff out good angles and that you are dedicated enough to have stuck with the blog for more than a few posts. Once you start getting commissions chances are your blog will slide. If you are getting paid travel writing gigs, then your time for unpaid work will rapidly diminish. But until you get those paid commissions, a blog is a good, easy starting point. As for getting followers, don’t worry about that. Focus on well-crafted, insightful travel journalism, perhaps with a niche angle, such as ‘travelling with a baby’ or ‘all about Germany’, and if your writing is up to scratch, people will follow you. Trying to SEO the heck out of your copy will only make it seem stilted.
You need to be able to dig out the angles the travel guides don’t cover: So many people think that because they are passionate about travel and can string a sentence together, that qualifies them to be a travel journalist. It doesn’t. You need to understand how to dig out facts – and to determine that they are facts – and how to find hidden gems and insider info. If it’s already in a guidebook, what are you adding to it? And you need to know how to write. I really can’t stress that enough. It’s a skill and not everyone has it, but so many people think they do. But you can learn it.
Travel journalism is hard work and the pay isn’t always great either: Forget fantasies of being sent round the world on an assignment with a huge commission, all expenses paid, and having endless days lolling on the beach or people-watching in cafes. Very few publications pay freelancers’ travel expenses (and getting a full-time writing or editing job on a major travel publication is just not going to happen until you have years of experience, and even then, chances are slim). Take a sample 1,000 word feature. If you are lucky and have years of experience, you might be commissioned to write a 1,000-word travel feature for a major publication. You will need to spend around a day crafting the pitch that wins the commission in the first place, three to five days working out your itinerary and arranging accommodation and so on. Another three to five days on the trip. Then at least two to four days writing the article to a standard high enough for this type of publication. If you are lucky, for this, you will be paid £400.
If you are pitching unusual destinations, make sure you’ve got a good angle: Breaking in by going to less popular locations – this is a tricky one. On the one hand, going somewhere unusual definitely gives you an edge. On the other hand, it’s hard to commission those features. The fact is, most people want to read about destinations they actually want to go to or are interested in. Hence the huge number of articles on France, Italy and so on. This is because it is these types of articles that sell papers and magazines.
On the other hand, people do like reading about unusual destinations, so while editors might not have as much scope to commission those places, if you pitch a good angle for one of them, then when they do come to commission a quirky one, your pitch might just be in the back of their mind. But do not pitch just a general ‘guide’ to an unusual destination. You still need an angle, whether it’s Baku’s beach scene or skiing in Iraq.
Emily Mathieson is Word of Mouth editor at Condé Nast Traveller
Demonstrating your knowledge and understanding of the magazine will endear you to an editor: The simple best way to get your writing published (and get paid for it) is to actually read the publication you’re pitching to. I am constantly surprised by how many people send me ideas that are clearly not relevant to the section I edit, or to Condé Nast Traveller in general (no, we don’t review youth hostels). If someone begins a pitch by clearly demonstrating their knowledge and understanding of the magazine, I am always more likely to read on.
Pitches which paraphrase press releases won’t be welcome. Keep it short, sweet and to the point. But PLEASE don’t just paraphrase a press release. It’s likely I’ll already have seen it, and why would I pay someone to do something I could do myself?
Include a signature at the bottom of your e-mail with your specialisms. I find it really helpful if writers have a signature at the bottom of their e-mail telling me about them, the specialisms and where they live (and it’s also often helpful if you can remind me at the beginning of an email who you are too). This will often jog my memory, or help me decide why a particular person is suitable for a certain piece.
Amanda Statham is travel editor of Cosmopolitan and You & Your Wedding magazines
A potted guide to pitching:
- Keep it short – no travel editor has half an hour to wade through 10 pages of pitch.
- Know the publication – I’m always being offered pieces for my Cosmopolitan travel news page. There isn’t a Cosmo travel news page…
- Check to see what the publication has covered recently; if it has covered your story or specific place, don’t pitch.
- If you refer the travel editor to your personal website, make sure it works and is up-to-date.
- Have an original hook; amazingly, backpacking around Thailand has been covered before.
Pat Riddell is the editor of National Geographic Traveller (UK)
Twitter can help your industry knowledge and give you ideas for pitches: Follow journalists, editors, newspapers and magazines but also follow travel blogs, tourist boards, airlines, tour operators, attractions, museums, hotel groups and so on. The more you know about travel and how it ‘works’, the better. Which destinations will be talked about in 2013, where are the new air routes, what are the new attractions… these are the pitches for the future. And by establishing a Twitter presence you can make a name for yourself as well as boosting traffic to your blog – or indeed titles you’ve written for.
Glen Mutel is the editor of ABTA Magazine and a regular columnist and contributor for National Geographic Traveller
Different approaches suit different titles: For trade titles such as ABTA Magazine, we’ve already got a fair idea of the destinations we want to cover over the next six to 12 months. So, unlike other titles, we don’t necessarily want budding writers to pitch us specific angles. Instead, I’d much sooner be sent a short email, detailing where a writer has been and where they know, with links to previous examples of their work. This last bit is absolutely crucial. Many travel editors will already have a list of writers that they rely on and it can be hard to get them to try new people. I’ve learned to turn a deaf ear when writers tell me they’ve written for the nationals, because it’s so seldom a guarantee they can write. I’d much sooner they show me specific examples of their work – proof they can put words in a readable order. If they can do that, there’s a good chance I’ll try them out with a general destination feature. Then, a few pieces down the line, I’ll start accepting ideas from them.
Postgraduate courses can equip you with everything you need: I don’t think the type of degree is necessarily that important. Earlier this year we were looking to fill the deputy editor position, and I don’t think we looked to hard at the type of degree. What mattered more was whether there was some type of postgraduate qualification – it needn’t be an MA. There are several shorter postgraduate schemes that can equip you with everything you need (I did a three-month course with PMA).
Peter Grunert is the editor of Lonely Planet Magazine
A particular specialism might give you an advantage: I definitely believe it’s a good idea to build a rapport with a commissioning editor before sending them a pitch. They will need to know that you share a wavelength and will also want to see evidence of the quality of your writing – ideally, writing that would suit their publication. I also feel that anyone with a specialism has an advantage. Are you based in a particularly interesting location? Can you bring fascinating travel insights from the point of view of someone who has great knowledge of art, motoring, history, sports and so on?
Check out all the advice from the live Q&A here.
This content is brought to you by Guardian Professional. To get more content and advice like this direct to your inbox, sign up for our weekly Careers update.
http://tourism9.com/
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