The Landscape of Risk

This article is sponsored by S&P Dow Jones Indices. Risk is a complicated thing, and S&P Dow Jones Indices’ experience supporting the VIX® series of volatility measures, its continued work in the arena of low-volatility indices and its conversations with clients regarding risk reduction techniques continue to reveal new things about the way markets and [...]

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Exclusionary Powers over Sovereign Fund Migrates from MoF to Norges Bank

The Norwegian Parliament, Stortinget, proclaimed that on January 1, 2015, Norges Bank, the central bank of Norway, will be the decision-making authority in matters concerning observation and exclusion of companies from the sovereign wealth fund. This power is being migrated from Norway’s Ministry of Finance. Thus, the Council of Ethics will advise Norges Bank. However, [...]

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Strategic Development: Angola Sovereign Wealth Fund Building Hospitality School

Fundo Soberano de Angola (FSDEA) has begun construction on Academia de Gestão da Hospitalidade Angolana, a new hospitality school. The school will be located in the Angola province of Benguela which borders the Atlantic coast. The FSDEA is a strategic development sovereign wealth fund (SDSWF), that is embarking on local investment projects to boost returns, [...]

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Friday SWFI News Roundup, December 19, 2014

Man Group Buying up U.S. Alternative Management Businesses Man Group has acquired Stamford-based Silvermine Capital Management. Man Group is looking to augment their presence in the United States, buying up alternative shops. Silvermine Capital Management has US$ 3.8 billion in assets under management. Silvermine is owned by its founders and senior executives. The firm focuses [...]

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Sovereign Wealth Funds Back Disruptive Venture Capital Investments

Revealed recently was Qatar Investment Authority’s (QIA) investment in San Francisco-based Uber, an app-based transportation network and taxi company. Joining the QIA as investors were venture capital firms and Chinese search engine Baidu. Uber was formed in 2009 by Travis Kalanick and Garrett Camp. In another venture capital play, the gulf-based sovereign wealth fund has [...]

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Why Did Aviva Sell its APAC Real Estate Business to JP Morgan

Aviva Investors, the investment arm of insurer Aviva PLC, has sold its Asia-Pacific (APAC) real estate business to JP Morgan Asset Management. Aviva has encountered increased competition from private equity players in APAC real estate from firms such as Blackstone Group. Nearly a year ago, Aviva’s APAC real estate division hired the corporate finance division [...]

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SWFI® NEWS, ARTICLES AND CURRENT ENTRIES

TOP 10 Direct Sovereign Wealth Fund Real Estate Deals of 2014

9 out of the top 10 sovereign wealth funds ranked by assets under management have an allocation to institutional real estate. Increasingly, cash-rich sovereign wealth funds and large pensions such as CPPIB are vying for institutional real estate, creating competition for life insurance companies, developers, real estate managers and real estate investment trusts. For example, [...]


Michael Maduell – A Reflection on 2014

2014 marks another fascinating, yet optimistic year in the interconnected world of asset owners. We have witnessed assets under management of sovereign wealth funds break the US$ 7 trillion mark. At the same time, global prices of oil have changed direction, China has surpassed the United States in gross domestic production and Bill Gross left [...]


BC Partners and Investor Group Buy PetSmart

PetSmart, Inc., a pet retailer, has agreed to a deal to be acquired at US$ 83 per share in cash by a group of investors led by London-based private equity firm BC Partners, Inc. The transaction value is valued at approximately US$ 8.7 billion. Recently, BC Partners bought The Mergermarket Group, a global financial intelligence [...]


Central Bank of Russia Moves Key Rate to 17%

Russia’s central bank in an unprecedented move boosted its benchmark interest rate – the most since the country’s default in 1998. The announcement was made in the middle of the night. The Central Bank of Russia increased the key rate to 17% from 10.5% effective today. The repo rate was increased to 18% from 11.5%. [...]


Thoma Bravo and OTPP to Acquire Riverbed Technology

San Francisco-based Riverbed Technology is being acquired by Thoma Bravo and Ontario Teachers’ Pension Plan (OTPP). The cash transaction is at US$ 21 per share, at a value of around US$ 3.6 billion. The price paid is an 11% premium over Riverbed’s December 12th closing price. Earlier in 2014, Paul Singer’s activist hedge fund firm [...]


Why Sovereign Wealth Funds Need Private Equity

According to the Sovereign Wealth Fund Institute (SWFI), direct sovereign wealth fund transactions from the 3rd Quarter of 2014 back 12 months, totaled US$ 203.61 billion. This is an unprecedented amount of sovereign wealth capital flowing toward direct investing in assets and companies. With that being said, sovereign wealth funds are constantly on the prowl, [...]


India deals

Asian Sovereign Wealth Fund Invests in Gurgaon Residential Development

Singapore’s GIC Private Limited, through a sovereign wealth enterprise (SWE), created a joint venture with Indian property developer Vatika Group. The joint venture will develop two high-quality residential projects on Dwarka Expressway in Gurgaon. Gurgaon is near the Indian capital of New Delhi, in the state of Haryana. The residential projects are expected to be [...]


United Nations Joint Staff Pension Fund Backs Low Carbon ETFs

Despite the timing of institutional investors genuine interest of low carbon investment strategies in a current environment of rapidly falling oil prices, a number of large pension investors remain committed to the approach. Buffer funds like Sweden’s AP4 has committed to “decarbonizing” its whole US$ 20 billion public equities portfolio. Service providers have developed exchange-traded [...]


Falling Peso and Oil Prices Plague Mexico’s Prospects

Source: Thomson Retuers, EIA The falling global price of oil is having a material impact on fiscal budgets with regard to fossil fuel-reliant economies. Being a key oil exporter to the United States, Mexico is on the brink of opening foreign investment in the energy sector, planning auctions in 2015. Meanwhile, large-scale energy companies, plush [...]


forest

Alaska Sovereign Fund Allocates Big to Dyal Capital and American Homes 4 Rent

The Alaska Permanent Fund Corporation (APFC) announced some new commitments after a December board meeting. The APFC committed US$ 200 million to American Homes 4 Rent II, LLC, a real estate vehicle that acquires pools of vacant single-family residences and manages them as rental properties. The maximum term of American Homes 4 Rent II, LLC [...]


Singapore Sovereign Wealth Fund Acquires Rio de Janeiro Office Building

GIC Private Limited, one of Singapore’s sovereign wealth funds, acquired an office building in downtown Rio de Janeiro. This is the sovereign wealth fund’s first direct real estate investment in Latin America. The office building, Eco Sapucaí, was sold by real estate fund manager Hemisfério Sul Investimentos (HSI). The 86,060 square meter building was designed [...]


Friday SWFI News Roundup, December 12, 2014

BC LNG Prosperity Fund Comments The provincial government of British Columbia maintains a belief that its proposed US$ 100 billion LNG prosperity fund is still a possibility. BC Natural Gas Minister Rich Coleman argues that the LNG fund could reach over US$ 100 billion in over 30 years, despite global declines in the price of [...]


seattle

Why Alaska’s Permanent Fund Should Buy Russell’s Investment Consulting Arm

When Russell Investments was on the selling block, the buyer universe was limited because potential acquirers did not want the whole enchilada. Many buyers wanted the crown jewel, the high-margin index business of Russell. Why? US$ 5.2 trillion worth of assets are benchmarked against Russell indices. When the London Stock Exchange Group (LSE) acquired Russell [...]


OUT OF GAS: ArcLight Capital Struggles to Raise Capital for Sixth Fund

On December 10th, West Texas Intermediate (WTI), also known as Texas light sweet, and Brent crude oil prices drifted to recent new lows. WTI oil prices fell below US$ 61 a barrel, while Brent prices dropping under US$ 65 a barrel for the first time since 2009. This economic blessing for U.S. consumers is creating [...]


MANDATES: Alaska Retirement Management Board Embraces Multi-Asset Strategies

The US$ 26 billion Alaska Retirement Management Board handed out US$ 400 million worth in mandates and US$ 250 million in private market commitments. The first mandate was awarded to State Street Global Advisors (SSgA) to manage a US$ 200 million allocation toward a U.S. equity-managed volatility strategy. The Alaska pension fund allocated US$ 200 [...]


Sovereign Wealth Fund Looks to German Residential Real Estate

Looking away from London, residential properties in Berlin are attracting more overseas institutional investors. Berlin-based Kauri CAB Management GmbH and Apeiron Capital have partnered with a sovereign wealth fund to allocate capital to residential properties across Germany. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


SWFI – Movers and Shakers – December 9, 2014

Commonfund Appoints JP Morgan Executive to Boost Lagging AUM Commonfund has hired Catherine M. Keating as the new CEO, starting February 1, 2015. She is head of investment management – Americas at JP Morgan Asset Management. Keating replaces Commonfund CEO Verne Sedlacek. Commonfund manages approximately US$ 25 billion, mostly for endowments. MSCI Hires Seyer as [...]


Major Executive Changes at RBC Global Asset Management

With over C$ 350 billion in assets under management, RBC Global Asset Management (RBC GAM), is the asset management unit of Royal Bank of Canada (RBC), appointed Damon Williams and Alex Khein as co-CEOs of the asset management unit. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. [...]


Uber Raises Money, Didi Dache Gets a Turn

Singapore’s Temasek Holdings has invested in a taxi-hailing app. Last week, SWFI confirmed that Qatar Investment Authority (QIA) invested in Uber. SoftBank invested US$ 250 million in Uber rival Malaysia-based GrabTaxi. Along with other investors, Temasek, Russian investment firm DST Global and Tencent Holdings invested a total of US$ 700 million in Didi Dache’s Series [...]


BIG DEAL: QIA Finalizes HSBC Tower Purchase in Canary Wharf

The Qatar Investment Authority (QIA) has finalized the purchase of HSBC’s headquarters in Canary Wharf. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


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