Future Fund buys 10% Transgrid stake from OMERS
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The news: The Future Fund Board of Guardians has acquired half of OMERS’ stake in Transgrid.
The numbers: The transaction will leave both the Future Fund and OMERS with a 9.995% stake in the electricity transmission network. However, OMERS will manage sovereign wealth fund’s stake.
The context: Future Fund chief investment officer Ben Samild said it invested in Transgrid as it looks for opportunities in the energy transition and that the fund's capital would be rewarded by the company’s growth.
The Future Fund has $240.8 billion in assets under management and manages money on behalf of the Australian Federal Government.
OMERS is a jointly sponsored, defined benefit Canadian pension plan and has about $155.5 billion in net assets.
What they said: “Large infrastructure assets such as Transgrid help us achieve our investment mandate to deliver attractive risk adjusted returns and protect the portfolio from higher inflation, interest rates and currency volatility,” Samild said.
OMERS CIO Ralph Berg said: “We are very proud to welcome Future Fund, with whom we share similar values and a common mission, into our Strategic Partnership Program, where they are now a co-investor in Transgrid and can access our excellent asset management platform and capabilities”.
The source: Joint media release
