Asset Allocation

Make Diversification your Beta

This article is sponsored by TOBAM. Yves Choueifaty, President and Founder of TOBAM, explains why concepts such as “smart beta” or “neutral portfolio” require clear definitions and how the Maximum Diversification® approach answers the need for beta. What is your definition of Smart Beta? What makes a beta smart? TOBAM is one of the founders [...]

doha sovereign wealth fund

Qatar Investment Authority Reviews Asset Allocation

The Qatar Investment Authority (QIA) is reviewing its asset allocation targets, realigning its sector and geographic allocations to account for changes in global economic growth. The drop in the global price of oil and growing competition among infrastructure and high-quality property assets has affected the behavior of Gulf sovereign wealth funds. According to the SWFI’s [...]

New York

Morgan Stanley’s IM Business Rejigs, $500 Billion by 2016

As of December 31, 2014, Morgan Stanley Investment Management reported US$ 403 billion in assets under management (AUM). This is compared to US$ 377 billion in AUM from December 31, 2013. Morgan Stanley Investment Management, which touts clients such as pensions, insurance companies, endowments and sovereign wealth funds, continues to compete for growing AUM in [...]


5 Things Sovereign Wealth Funds Won’t Tell You

5. We Aren’t as Long-Term as Some Think 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. Take for instance Ireland’s [...]

Press Release – SWFI Survey of Public Funds Shows Strong Interest in Smart Beta

FOR IMMEDIATE RELEASE Download PDF of Press Release Includes survey of 72 public institutions, including 16 SWFs, with over US$ 2.9 trillion in public investor capital represented. Interviews with 8 asset owners from 8 different countries with combined AUM of over US$ 250 billion. Additional research provided by four leading practitioner firms: Northern Trust Asset [...]

Temasek Gets a Little Boost

Singapore’s Temasek Holdings got a little boost, moving up to a S$ 223 billion net portfolio value. Temasek marks its 40th anniversary; however, returns struggled with a 1.5% total shareholder return in Singapore dollars. The previous fiscal year, the sovereign fund inked 8.9%. The reason for lowered performance given in Temasek’s annual report is weakness [...]

Service Providers Bet Big on ESG

The concept of ESG (environmental, social, governance) is building greater traction among institutional investors globally, especially in the West. Norway’s Government Pension Fund Global (GPFG), a bellwether among large public investors, is increasingly shifting assets toward environmental-tilted strategies and taking a slightly more vocal role on corporate boards to affect change. This type of activist [...]

Opportunity Cost Model

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. David Denison is the former president and CEO of [...]

Simsek Speaks: Making the Case for Institutional Investment in Turkey

On May 20th, the Turkish Prime Ministry’s Investment Support and Promotion Agency (ISPAT) hosted the first annual Turkey’s Investment Summit in partnership and coordination with the Sovereign Wealth Fund Institute. Foreign institutional investors, asset managers, public officials and business leaders from more than 30 countries converged on the historic Ciragan Palace Kempinski in Istanbul to [...]

NZ Super Fund Executive Leaves for QIC

Queensland Investment Corporation (QIC) has selected Neil Williams for the newly created role of managing director of multi-asset and investment solutions. Williams currently serves as chief investment advisor and head of strategic tilting for the Guardians of New Zealand Superannuation Fund (NZSF). He will leave NZSF at the end of May and begin working for [...]

Abu Dhabi Investment Authority Hires New Head of Research for Indexed Funds

Xiaowei Kang has been hired to be head of research in the indexed funds department at the Abu Dhabi Investment Authority (ADIA), the largest sovereign wealth fund in the GCC.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Korea Post Seeks Hedge Fund Managers

Seoul-based Korea Post is allocating more toward hedge funds in a push for greater global diversification. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Yngve Slyngstad

See How Much the Largest Sovereign Wealth Fund Has Invested in Russia

Norway’s massive sovereign wealth fund is reviewing its portfolio allocation and risk profile on Russia. NBIM Chief Executive Officer Yngve Slyngstad told reporters in Oslo that in regard to Russian investments, “We are at any given time also considering conditions that have dimensions of geopolitics and geopolitical risk.” Given the threat of sanctions from the [...]

Abe’s Yonezawa to Chair World’s Largest Pension Fund

Japan Prime Minister Shinzo Abe created a group to recommend changes in how the world’s largest pension fund was to invest its massive pool of assets. One of those 10 members, Yasuhiro Yonezawa, will now be chairman of Japan’s Government Pension Investment Fund (GPIF). Yonezawa is a 63-year-old professor at Waseda University’s Graduate School of [...]

Sovereign Wealth Themes: The Sun Never Sets on Sovereign Wealth II

This brief 3-page report is available for download for SWFI subscribers. This report gives a concise overview on the proliferation of sovereign wealth funds. DOWNLOAD April 2014 – The Sun Never Sets on Sovereign Wealth II The financial economy has become more complex and interconnected, especially with the proliferation of sovereign wealth funds, rivaling other [...]

Alabama SWF Seeks International Equity Manager

The Alabama Trust Fund doled out an RFP looking to hire an active international equity manager to manage US$ 100 million. The allocation could be either a separate account or with commingled managers. According to the RFP, the manager must have experience managing international equity portfolios for at least three years and have a minimum [...]

Mubadala Shifts Focus from Emerging Markets

Mubadala Development Company is altering its course from emerging markets to developed markets, its Deputy CEO Waleed al Muhairi told Reuters on February 25th. The Abu Dhabi state-owned investment vehicle had turned its attention to emerging markets as the United States and Europe were battered by financial crises. Public stocks in emerging markets had a [...]

See the Main Reason Why Norway’s Sovereign Wealth Fund Likes Equities

The US$ 838 billion sovereign fund had a 26.28% return in its equity portfolio versus a 0.1% return in the fixed income portfolio. In total, the sovereign fund posted a 15.9% return in 2013. In recent news, the mega sovereign fund became a net seller of stocks to comply with its limit on public equity [...]

Are Sovereign Funds Correctly Assessing Risk in Their Illiquid Portfolio

Asset-heavy sovereign wealth funds and public pensions are widely recognized for holding a considerable amount of illiquid assets, particularly in private equity and real estate. For example, the California Public Employees’ Retirement System in October 2013, held 20% in private equity and real estate. The California pension goliath is attempting to unwind a portion of [...]

Future Fund Returns 17.2 Percent for 2013

Australia’s Future Fund returned 17.2% from the 12 months ending on December 31, 2013 – beating the benchmark target return of 6.8%. At the start of 2013, the Future Fund’s chief investment officer, David Neal, wanted a major shift of investment away from fixed income, toward equities. In a press release, outgoing managing director, Mark [...]