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Sovereign’s investment odyssey between 1986 and 2006 spanned five continents and numerous industries.
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| New Zealand, The Journey Begins |
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Sovereign Global evolved from a manufacturing, importing, retailing and property development group established in New Zealand in 1972. In 1986, the Founders decided to move to larger and more robust international markets, and therefore divested the New Zealand trading businesses, changing their endeavours from building businesses to allocating capital.
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| Hong Kong, Stepping into Asia |
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In the period from 1986 to 1991, Sovereign concentrated its investment activities in Asia. In 1987, with Hong Kong preparing to transition to Chinese rule a decade later, Sovereign acquired and redeveloped a substantial portfolio of prime commercial real estate. During this period, Sovereign also invested in the securities of various public Asian companies.
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| Latin America, Emerging from a Lost Decade |
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From 1991 to 1993, Sovereign supported the transition of several Latin American countries to democratic, free market economies. Sovereign invested in Latin American government bonds as well as equity in Brazilian and Argentinian telecommunications and utility companies. In 1991, following deregulation, Sovereign was among the first foreign portfolio investors to enter the Brazilian stock market. At this time Brazil was emerging from a decade of hyperinflation toward an economy founded upon orthodox economic policies and fiscal responsibility.
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| Eastern Europe, From Communism to Capitalism |
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After Latin America, Sovereign became a leading investor in the emerging capital markets of Eastern Europe. From 1994-2004, Sovereign was one of the largest foreign portfolio investors in Russia, investing in a wide range of industries including steel, power utilities and oil and gas. During this unstable period Sovereign supported Russia’s transition to a market-orientated economy, promoting better corporate governance, transparency and shareholder rights.
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| Japan, The Sun Rises Again |
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In 2002, Sovereign made a significant investment in the Japanese banking sector as the world's second largest economy started to emerge from a decade of deflation, a weak economy and declining stock markets. With a gradual shift away from relationship based lending practices and a greater focus on return on capital, combined with a move to universal banking, the Japanese banking sector staged a remarkable recovery.
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| South Korea, Advocating Reform |
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Across the sea in Korea, Sovereign in 2003 became the largest shareholder in SK Corp, one of Asia’s largest oil refining companies - and also South Korea's third largest business group or "chaebol". With SK Corporation struggling to recover from a large-scale corporate fraud, Sovereign worked to communicate the benefits of good corporate governance and capital discipline.
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| Sustaining Growth, New Beginnings |
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Sovereign prospered by contributing capital and ideas to support the long-term development of countries, industries and companies. This approach provided stability to the capital markets at times of volatility and brought wider benefits to companies, communities and national economies as Sovereign’s capital contributed to the production of goods and services and the creation of employment, bringing prosperity to tens of thousands of people around the globe.
In response to the challenges of scale brought about by Sovereign’s uncommon success, and in order to retain the creative and entrepreneurial cultures necessary to continue to identify the world’s best investment opportunities, in 2006 Richard and Christopher Chandler demerged Sovereign’s investment portfolio into two new and independent entities. Richard Chandler founded Orient Global (http://www.orientglobal.com) with offices in Singapore, Dubai and London while Christopher Chandler established Legatum Capital (http://www.legatum.com) and its affiliates with offices in London and Dubai.
Press Release, 6 October 2006: Sovereign Global Announces Demerger
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