Our Hand-Selected 12 Popular SWFI Stories for 2014
The punctilious editorial staff of SWFI hand-selected 12 popular stories that have garnered high-traffic and social shares. Here is a roundup of 12 popular articles from this year.
#1. 5 Things Sovereign Wealth Funds Won’t Tell You
Sovereign wealth funds constantly make news headlines, buying infrastructure in the UK, acquiring a tech company with a private equity fund or doling out large mandates to established money managers. The perception that sovereign funds are long-term in nature can rightfully be challenged.
#2. Here’s Why CalPERS Dropped Hedge Funds
Are hedge funds losing significance with major institutional investors? The California Public Employees’ Retirement System (CalPERS), the largest U.S. pension fund, expelled hedge funds from its portfolio – sending a shock to the estimated US$ 3 trillion hedge fund industry. Some hedge funds are known for leveraged bets on market beta.
#3. Why Sovereign Wealth Centers on San Francisco Bay Area
A number of Asian sovereign wealth funds continue to build ties to Silicon Valley, the hotbed for technology innovation and the rest of the San Francisco Bay Area. In a trailblazing signal, Malaysia’s Khazanah Nasional chose to open its U.S. office in San Francisco, not in New York City. Singapore’s GIC Private Limited also has an office in San Francisco and has invested in numerous investment funds and properties in the Bay Area.
#4. 2014 Looks to Beat 2013 in Sovereign Wealth Fund Transactions
Increasingly, sovereign wealth funds are investing directly. The larger sovereign funds are getting involved in more deals, whether in institutional real estate, partaking as a group member in a company acquisition or buying more shares on the open market. As a whole, the world of sovereign wealth funds is rapidly expanding due to numerous factors. One significant factor is the number of new sovereign wealth funds cropping up, particularly in Africa and the Americas.
#5. Why ESG is Gaining Traction Among Institutional Investors
Whether it is called sustainable investing or responsible investing, this concept of allocating capital that creates value for both the investor and society as a whole, has achieved traction among various institutional stakeholders in recent years.
#6. Multi-Asset Demand Drives Institutional Business
To save the global economy, central bankers have played the free money melody, entrancing asset managers and asset owners such as sovereign wealth funds and public pensions. With probable shifts in key interest rates, institutional investors are re-examining new strategies and solutions. One of these solutions is multi-asset investing.
#7. What if ADIA Took BlackRock Private?
The Abu Dhabi Investment Authority (ADIA) is the largest sovereign wealth fund in the Middle East. The sovereign fund has a mandate to invest overseas, utilizing some of the most respected asset managers in the industry. In rare circumstances, sovereign wealth funds and pensions take equity interests in asset management firms.
#8. EXPLORED: The Opportunity Cost Model Distilled for Sovereign Funds and Pensions
David Denison, Professor Michael Brandt and Professor Andrew Ang were tasked to review the active management of Norway’s sovereign wealth fund. In the review, they detailed the “Opportunity Cost Model” as a viable option for long-term institutional investors such as sovereign wealth funds and public pensions.
#9. Are Sophisticated Sovereign Wealth Funds Becoming the Next Crop of Dealmakers?
Sovereign funds represent a large, thriving pool of sophisticated capital. With nearly US$ 7 trillion in institutional investor assets, sovereign wealth funds have flexed their muscles, acquiring luxury hotels to Indian movie production companies.
#10. Uber Could Use Sovereign Wealth Fund Money
San Francisco-based Uber Technologies, the driver-for-hire car service, could use some sovereign wealth money to fuel growth, payback earlier investors and participate in tighter regulatory car service markets. In addition, one reason why a sovereign wealth fund may be a better investor for Uber than a venture capital firm is that SWF capital is long-term and patient (not true in all cases).
#11. Why Rubenstein Believes SWFs May Become the Biggest Single Capital Source for Private Equity
David Rubenstein is the co-founder and CEO of the Carlyle Group – a well-known alternatives manager that has carved out a significant corner in the world of private equity.
#12. Sovereign Wealth Funds Make Up More Than 25% of U.S. Retirement Assets
The Investment Company Institute published retirement data stating that December 31, 2013 retirement U.S. assets amounted to US$ 23 trillion. These assets increased 5% from 3 months ago. Employer-based defined contribution assets in the U.S. totaled US$ 5.9 trillion, in which US$ 4.2 trillion were in 401(k) plans.
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