CASHING IN: Central Huijin Slightly Reduces Bank Exposure

Central Huijin Investment Ltd., a sovereign wealth enterprise (SWE) of the China Investment Corporation (CIC), revealed on May 26th that it sold 280 million Shanghai-listed A shares in China Construction Bank (CCB), cutting its ownership from 5.05% to 2.14%. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. [...]

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Santander and Two Large Canadian Pensions Form Infrastructure Company

The Ontario Teachers’ Pension Plan (OTPP), Canada’s Public Sector Pension Investment Board (PSP Investments) and Banco Santander, S.A. formed London-based Cubico Sustainable Investments to invest and manage investments in renewable energy and water infrastructure assets globally. Backed by pension and bank capital, Cubico will be equally owned by its three founding partners: OTPP, PSP Investments [...]

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Norway’s Oil Fund Could Exclude More Companies Exposed to Coal

Norway’s Government Pension Fund Global (GPFG) has been informed by the country’s Finance Committee that legislation is moving forward with regard on mandating the fund sell positions in companies that have a specified exposure to coal-related activities. Essentially, the proposed legislation on company exclusions will apply to listed companies that generate more than one-third of [...]

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Potential Perils of Single Issues for Norway’s Sovereign Wealth Fund

Montalban Founder Dag Dyrdal, an advisor to financial institutions and corporations, wrote a column in Norwegian newspaper Dagens Naeringsliv titled, “The Oil Fund as a Political Activist” (translated) on May 27, 2015. From 2009 to 2012, Dyrdal was Chief Strategic Relations Officer and a member of the executive management team at Norges Bank Investment Management [...]

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Goldman Sachs Rejigs Overseas Investment Banking Heads

Goldman Sachs transferred Matthew Westerman to London from Asia, where he was previously the head of Asia excluding Japan investment banking division since 2013. Westerman is taking the role as chairman of investment banking for Europe, the Middle East and Africa (EMEA) for Goldman Sachs. Westerman will bring his Asian contacts and relationships to the [...]

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UPDATE – GIC Mulls $980 Million Investment in Brazilian Hospital Company

UPDATE – May 27, 2015 GIC Private Limited has acquired a stake in Rede D’Or São Luiz SA from BTG Pactual for 1.6 billion BRL (US$ 509.5 million). GIC has also agreed to purchase an equal number of shares from Jorge Moll and his family. This theoretically brings the deal to 3.2 billion BRL, giving [...]

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SWFI® NEWS, ARTICLES AND CURRENT ENTRIES

BlackRock and GIC Invest in 3SBio

Shenyang-based 3SBio Inc. and a unit of Citic Private Equity Funds Management Co. are offering 606.1 million shares at HK$ 8.30 to HK$ 9.10 per share. Newly issued shares will account for 80% of the offering. Both parties are seeking as much as US$ 712 million from a Hong Kong initial public offering (IPO). Investors [...]


APFC Hires 2 Private Market Consultants

The Alaska Permanent Fund Corporation (APFC) is expanding allocation to private market assets and investments under its special opportunities bucket. The sovereign wealth fund hired San Diego-based TorreyCove Capital Partners and LP Capital Advisors as consultants for private market and special opportunity investments. These specialty consultants won the RFP that was issued in March by [...]


ADIA Appoints John Pandtle as Head of U.S. Internal Equities

The Abu Dhabi Investment Authority (ADIA) announced the appointment of John Pandtle in the newly formed role as Head of the U.S. of Internal Equities. Increasingly, large sovereign wealth funds are migrating management of listed equity portfolios in developed markets in-house. Armed as a CFA charterholder, Pandtle will be based out of Abu Dhabi and [...]


CPPIB Commits $100 Million to LATAM Corporate Bond Fund

The Canada Pension Plan Investment Board (CPPIB), through CPPIB Credit Investments Inc., has allocated US$ 100 million in a high-yield corporate debt fund. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


factor investing growth

Bank of Taiwan and Northern Trust Sign MoU on Custody Collaboration

Northern Trust sees the Asia-Pacific corridor as the fastest growing region for the company. Increasingly, East Asian pension funds are being permitted by regulatory bodies to invest overseas. The custodial giant is also trying to compete against rivals State Street and BNY Mellon in Taiwan. In July 2012, Taiwan’s National Pension Insurance Fund appointed BNY [...]


Opportunity Cost Model

Your Student Loan Could Be Backed by Sovereign Funds

The search for yield in an environment of low interest rates are pushing institutional investors such as U.S. pensions and wealth funds indirectly into the U.S. student loan market. These public investors have allocated swaths of capital to alternative investment firms like Apollo Global Management LLC through credit-related investment mandates. For credit managers seeking yield, [...]


Malaysian Airlines Restructuring Moves Forward

Malaysia’s Khazanah Nasional appointed Mohammad Faiz Azmi, chairman of PricewaterhouseCoopers Malaysia, to administer the restructuring of delisted Malaysian Airline System Bhd into a new company, Malaysia Airlines Bhd. Mohammad Faiz will oversee the move of Malaysian Airline System’ assets and liabilities to the new company. The new entity will start operations in September. The new [...]


SWFI – Movers and Shakers – May 25, 2015

Khazanah Hires Former McKinsey Partner to Lead Indian Operations Malaysia’s Khazanah Nasional hired Chinta Bhagat as an executive director for investments in India. Bhagat will start July 15, 2015 and will be based in Mumbai. Bhagat will lead the wealth fund’s Indian operations and be part of Khazanah’s global healthcare sector leadership team. Previously, Bhagat [...]


NC Retirement Systems Awards US$ 4.5 Billion in Listed Equities

North Carolina Retirement Systems has awarded a US$ 3 billion mandate to Durham-based Piedmont Investment Advisors, LLC. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


OMERS and Crown Estate Extend Partnership by £145 Million

Ontario Municipal Employees’ Retirement Scheme (OMERS), through Oxford Properties, has entered into a second deal with the Crown Estate. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


ADIA Buys Hotels in North Carolina Research Triangle

Abu Dhabi Investment Authority (ADIA) has acquired two hotels in North Carolina. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


COUNTERPOINT: Why Long-Term Investing Can Be Dangerous

Got your attention? Personally, I agree that, in general, large sovereign funds and pensions should invest for the long-term. There are scores of reasons why and thousands of papers produced by asset managers, think tanks and professors who believe so. Nearly every institutional investor with over US$ 100 billion in assets subscribes to the “long-term [...]


Friday SWFI News Roundup, May 22, 2015

Wealth Fund Commits to Mezzanine Fund The Alaska Permanent Corporation (APFC) allocated US$ 50 million to Audax Mezzanine Fund IV, an alternative credit fund. The sovereign fund has a 2.5% allocation to private credit. AIIB to Allow Non-Asian Countries to Bank’s Board The Asian Infrastructure Investment Bank (AIIB) will have a director from Germany on [...]


New Mexico SIC’s Appetite for Agriculture Grows

On a global basis, direct farmland investing has lured institutional investors on possible diversification and inflation protection benefits. Meanwhile, the world’s population continues to expand and consumption of protein foods has rapidly grown in the past fifty years. According to United Nation figures, the world’s population is currently adding 25 million people per annum – [...]


CIC to Manage New Unit to Assist Chinese Domestic Enterprises Abroad

China is keen on boosting exports, while augmenting industrial capacity globally. Chinese Premier Li Keqiang’s trip to Latin America highlights the Asian giant’s ambition to stimulate industrial demand at home. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Brisbane

CalPERS Embarks on Asia-Pacific Infrastructure Partnership with QIC

The California Public Employees’ Retirement System (CalPERS) entered into a partnership with QIC (Queensland Investment Corporation) for a A$1 billion customized Asia-Pacific infrastructure portfolio. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Negative Rates in Europe, Shifted Sovereign Fund Behavior

Asian and Middle Eastern sovereign wealth funds and large pension investors have been awarding a slurry of mandates to opportunistic credit managers. For example, in May, the £4.8 billion London Pensions Fund Authority hired Apollo Global Management for a £150 million allocation to target distressed debt, real estate debt, leveraged senior loans and private lending [...]


JP morgan

JP Morgan Chase CEO Dimon Gets Dough, More Investors Pushback

Increasingly, shareholders are exercising their rights and taking a greater stand against bank executive compensation practices. At J.P. Morgan Chase & Co.’s annual meeting on Tuesday, 61% of shareholder votes cast supported the 2014 compensation of JP Morgan Chase CEO Jamie Dimon and other senior banking executives. [ Content protected for Sovereign Wealth Fund Institute [...]


australia infrastructure

Australia’s Future Fund Acquires €705 Portfolio from Hayfin Capital

Australia’s Future Fund is acquiring a portfolio of assets from Hayfin Capital Management LLP, a specialty commercial lender focused on Europe. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Khazanah Moves Forward with First SRI Sukuk

Malaysia’s Khazanah Nasional earlier this week launched the nation’s inaugural sustainable and responsible (SRI) sukuk – a 1 billion ringgit (US$ 280 million) bond program. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


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