How Falling Oil Prices Are Impacting Sovereign Wealth Funds

To weather the boom and bust cycles of crude oil commodities, many oil-rich countries and states formed sovereign wealth funds to accumulate assets (see – sovereign wealth fund definition). At the beginning of 2008, sovereign wealth fund assets stood at US$ 3.43 trillion. As of March 2015, sovereign wealth funds have over US$ 7.1 trillion [...]

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Follow the QE, Kuwait Investment Authority to Cut US Investments

The Kuwait Investment Office (KIO), a sovereign wealth enterprise of the Kuwait Investment Authority (KIA), plans to slowly pullback on U.S. equities after being overweight for seven years. Reuters news broke the story from reporting at a conference in Abu Dhabi. Osama al-Ayoub, head of the Kuwait Investment Office, said the unit wants to invest [...]

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london

ADIA Throws Hat Into Maybourne Hotel Group

Abu Dhabi Investment Authority (ADIA), a major sovereign wealth fund institutional investor in hotels globally, is gunning for a £1.6 billion acquisition of Maybourne Hotel Group which is owned by holding company Coroin Ltd. Maybourne Hotel Group owns luxury hotels Claridge’s, the Berkeley and the Connaught in London. ADIA currently owns the 5-star hotel The [...]

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Korea’s NPS to Allocate 2 Plus Billion into Hedge Funds

After carefully studying hedge funds, Korea’s National Pension Service (NPS) plans to allocate 2.5 trillion won (US$ 2.27 billion) into the asset class. Hedge funds are looking more offshore to raise money, as a number of large U.S. pensions and European pensions have rebuffed them. The allocations will most likely occur near the end of [...]

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Qatar Sovereign Fund Moves in on Milan Business District

Sovereign wealth funds are breathing life into Italy – at least into office real estate. Hines Italia SGR, part of Houston-based Hines, announced that Qatar Investment Authority (QIA), through Qatar Holding LLC, has taken a 100% interest in the Porta Nuova district in Milan. The QIA had a 40% stake in the massive mixed-use development [...]

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Oil Drop Impacts Russian Sovereign Wealth Funds

Plagued by low oil prices and Western sanctions, Russia looks to withdraw a huge amount of money from its pool of sovereign wealth. During the 2000s, Russia’s sovereign wealth funds amassed a massive pool of liquid reserves. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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SWFI® NEWS, ARTICLES AND CURRENT ENTRIES

BlackRock NY

BlackRock Pushes Hedge Fund Strategies to Sovereign Wealth Funds

Asset heavy, seeking higher yields – sovereign wealth fund medley – is embracing hedge fund strategies left and right. Behemoth asset managers like BlackRock are offering hedge fund strategies to generate higher fees and compete with traditional hedge funds like Och-Ziff Management, Brevan Howard Asset Management, BlueCrest Capital Management and Dalio’s Bridgewater Associates. Sovereign funds [...]


Norway’s Sovereign Wealth Fund Gets Another $1 Billion QFII Quota

Increasingly European asset owners want increased exposure to mainland Chinese equities. For example, Swedish buffer fund AP2 posted an approximate 59.1% return in 2014 in listed Chinese equities for 2014. Norges Bank Investment Management (NBIM), manager of Norway’s sovereign wealth fund, received another US$ 1 billion in China’s Qualified Foreign Institutional Investor (QFII) program. NBIM’s [...]


Friday SWFI News Roundup, February 27, 2015

Coller Capital Leads Restructuring of Irving Place Capital Partners III London-based Coller Capital, a secondaries firm, is leading an investor group to restructure a US$ 2.7 billion fund, Irving Place Capital Partners III, managed by Irving Place Capital Management. The fund was raised before the financial crisis in 2006. Abu Dhabi Investment Authority (ADIA) is [...]


asset allocation

Investors Pursue Debt Recovery Against Novo Banco and Bank of Portugal

Institutional investors in Oak Finance, the vehicle that lent money to now-defunct Lisbon-based Banco Espírito Santo, are moving forward with debt recovery proceedings. The investor group filed debt recovery proceedings in English court against Novo Banco, the new bank entity that arose from Banco Espírito Santo. In addition, the investor group plans to file proceedings [...]


SWFI Real Estate Roundabout – February 26, 2015

Malaysia’s Employees Provident Fund (EPF), also known as KWSP, has allocated capital to Japanese logistics – following the path of several asset owners such as Singapore’s GIC Private Limited. KWSP acquired 5 properties from Mitsubishi Corporation for ¥14 billion (US$ 117.8 million). Mitsubishi Corporation will manage the property for KWSP under its Diamond Realty Management [...]


AGAIN: PIMCO Losing Mandates and People

At one point in March 2013, Newport Beach-based Pacific Investment Management Co. (PIMCO) reached US$ 2.04 trillion in assets under management – nearing proximity to 2.5 times the size of Norway’s sovereign wealth fund. PIMCO, the world’s biggest bond asset manager, lost a number of key investment and sales executives in the past few months. [...]


sovereign wealth

Morgan Stanley to Fork Over $2.6 Billion to Settle Mortgage Bond Sales Claims

Morgan Stanley will pay the U.S. Department of Justice (DOJ) US$ 2.6 billion to settle claims over its role in the sale of mortgage bonds pre-financial crisis 2008. In January 2015, the bank boosted its legal reserves by US$ 2.8 billion. Bank of America, Citigroup and JPMorgan Chase have all paid billions to settle pending [...]


People’s Bank of China Names Two New Deputy Governors

China’s central bank is experiencing some senior executive shuffles. The People’s Bank of China named two new deputy governors. Guo Qingping was internally promoted from assistant governor to deputy governor. The People’s Bank of China hired Fan Yifei who comes from sovereign wealth fund China Investment Corporation (CIC) where he was an executive. At one [...]


sovereign wealth fund center asia

Hong Kong Getting Serious About Future Fund Formation

The complex world of sovereign wealth funds has grown rapidly in the last 10 years. As of February 2015, there are over US$ 7 trillion in sovereign wealth fund assets, trumping the U.S. defined benefit sector. Meanwhile, a new fund may be joining the SWFI’s sovereign wealth fund rankings. The Hong Kong government and Hong [...]


SWFI Trend Report: Sovereign Wealth Fund Direct Infrastructure Investments, 2003-2014

Sovereign wealth funds surpassed US$ 7 trillion in assets before the end of 2014. These institutional investors typically have unique liabilities compared to public pensions. Many of the large sovereign wealth funds, funds with over US$ 30 billion in assets, seek long-term investments. When it comes to infrastructure, sovereign wealth funds pursue accommodating investment regimes, [...]


No Keystone: Institutional Investors Lose Big on Canadian Oil Sands

Canadian oil sands companies have struggled financially, many are cash-strapped, holding off on pursuing projects. The long-term payoff for institutional investors seems distant as global oil prices have plummeted. OPEC plans to meet in June. Saudi Arabia’s Oil Minister Ali Al-Naimi stated that OPEC will not change course even if prices drop to US$ 20 [...]


Iran to Spend $4.8 Billion in Sovereign Fund Money for Oil Development

The Iranian government plans to withdraw up to US$ 4.8 billion from its National Development Fund (NDF) to spend on developing its oil and gas fields for the next fiscal year. The new fiscal year for the country’s budget begins on March 21. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please [...]


Opportunity Cost Model

BlackRock Joins the Fixed Income Smart Beta Party

Sapient institutional investors such as endowments, pensions and sovereign funds are seeking more products to meet their complex needs. Traditional weighting of indices and investment fees are major drivers. Plain vanilla equity products are facing outflows with sophisticated asset owners. For example, mega asset managers in the camp of Baltimore-based T. Rowe Price Group have [...]


US DOJ Probes Banks on Price-Rigging Precious Metals

After nailing a number of bulge-bracket financial institutions for interest rate and foreign currency market price manipulation, U.S. regulators and prosecutors are taking aim at the world of precious metals pricing. In many circumstances, too avoid long drawn out court room showdowns, banks typically reach financial settlements with Western regulators. The U.S. Justice Department (DOJ), [...]


oil

Sovereign Wealth and Pension Money Flow Into Energy Funds

Private equity firms are still raising institutional investor capital to target investments in the U.S. energy sector. The Blackstone Group had total commitments of US$ 4.5 billion for its second energy fund, Blackstone Energy Partners II. Some large pensions invested in the fund include: New Jersey Division of Investment and Teacher Retirement System of Texas [...]


seattle

Who Will Buy Russell Investments?

The London Stock Exchange Group PLC, along with its advisor, are prepping the auction process for selling part of Seattle-based Russell Investments. By selectively shopping for nearly 100 buyers, possible acquirers could be a rival money manager, private equity firm, Canadian bank or an asset owner like a sovereign wealth fund? At the time of [...]


sovereign wealth fund center asia

CVC Partners Looks to Bring HKBN Public

HKBN Ltd., the second biggest broadband service provider based in Hong Kong, plans to go forward with its initial public offering – set for March 4th. The company hopes to raise HK$ 5.8 billion (US$ 750 million) from the sale. The banks leading the deal are JP Morgan, UBS and Goldman Sachs.[ Content protected for [...]


SWFI – Movers and Shakers – February 23, 2015

Morgan Stanley Hires Former OTPP Executive Frederik Wijsenbeek joined the ranks of financial giant Morgan Stanley as an executive director in private equity. Based in London, Wijsenbeek will be working on a US$ 1.5 billion mid-market private equity fund. Previously, Wijsenbeek was an investment partner at London-based Global Family Partners, a multi-family office focused on [...]


Is Libya’s Sovereign Wealth Fund Safe?

ISIS, also known as Islamic State of Iraq and the Levant or Daesh, has made inroads into war torn Libya. Car bombs plague eastern Libya. As violence continues to spread in Libya, one can wonder, who will be in control of Libya’s massive sovereign wealth fund, the Libyan Investment Authority (LIA)? A number of factions [...]


AMBITIOUS DREAMS: China’s Silk Road Fund

Analyzing demographics, technology and GDP growth, China is economically positioning itself for the next decade. In October 2014, China-backed Asian Infrastructure Investment Bank (AIIB) was revealed to the public, a possible counterweight to the Asian Development Bank (ADB) and World Bank. The AIIB is working on its articles of agreement, targeted for completion by the [...]


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