Norway Sovereign Wealth Fund Approaching $900 Billion

For the second quarter of 2014, Norway’s Government Pension Fund Global (GPFG) returned 3.3%. For that time period, equity investments returned 4.01%, fixed income 2.04% and real estate 3.04%. 61.3% of the sovereign fund is invested in equities, 37.6% in fixed income and 1.2% in real estate. Norges Bank Investment Management (NBIM) has split up [...]

Goldman Sachs Abandons Bid, LIA Trial Will Move Forward

Goldman Sachs has abandoned its attempt to have the courts drop the Libyan Investment Authority’s (LIA) case. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Friday SWFI News Roundup, August 15, 2014

Malaysian Airlines to be Fully Acquired by Khazanah Nasional The plagued Asian airlines, Malaysia Airlines, is going to be taken private by Khazanah Nasional, the country’s sovereign wealth fund. The carrier has suffered tremendously after two key disasters in a four month span. Khazanah is currently the largest shareholder in the airlines with a 69% [...]

China Investment Corporation Releases Annual Report

For 2013, the US$ 652.7 billion China Investment Corporation’s subsidiary, CIC International Co. Ltd., achieved a net income ratio of 9.33%. This is a decline from 2012, which posted a 10.6% rate. Since the CIC’s inception, the cumulative annualized return is 5.7%. The CIC had some major allocation shifts. For example, the sovereign wealth fund [...]

Future Fund to Award A$ 500 Million High-Yield Mandate

Australia’s Future Fund is reportedly allocating an additional A$ 500 million (US$ 463 million) to Sankaty Advisors LLC to invest in high-yield debt. Sankaty Advisors, the credit arm of Bain Capital LLC, is already a manager of the Future Fund’s high-yield debt strategy. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please [...]

Michael Ryan to Head Public Equities for Harvard

Harvard Management Company, which manages the endowment for Harvard University, has tapped Michael Ryan to lead its public equity team. Ryan will report to Stephen Blyth, managing director and head of public markets. Ryan will start in September 2014. The $32.7 billion endowment fund wants Ryan to manage the endowment’s global equities portfolio and work [...]

Sovereign Wealth Funds and Russia

Sovereign Wealth Funds React Differently on EU’s Russian Sanctions

Sovereign wealth funds in recent years have made significant investment strides into Russia – betting on Russian real estate, bonds and equities. Russia is one of the BRICS. Norges Bank Investment Management (NBIM), the body that manages Norway’s sovereign wealth, has invested in Russian share sales and other companies within Russia. VTB, one of Russia’s [...]

Dhanabalan Rejoins GIC Private Limited’s Board

Suppiah Dhanabalan, a former Singaporean politician, has been appointed as a director to the board of GIC Private Limited. This is effective August 1, 2014. Dhanabalan served the GIC Board from 1981 to 2005. Dhanabalan was the chairman of Temasek Holdings for nearly 17 years, starting on September 30, 1996. He was succeeded by Lim [...]

Khazanah Buys Stake in Ipca, Regardless of FDA Query

Malaysia’s Khazanah Nasional Berhad invested approximately US$ 40 million for a small interest in Mumbai-based Ipca Laboratories Ltd. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

See Which 4 Equity Managers Received International Mandates from the APFC

The Alaska Permanent Fund Corporation (APFC) has hired four equity managers to handle new international equity mandates. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Citigroup Banking

Citigroup Capitulates, Agrees to Payout 7 Billion in Fines and Consumer Relief

Citigroup was part of a group of U.S. lenders being investigated by the U.S. Department of Justice (DOJ) for allegedly misrepresenting the quality of mortgage-backed securities sold prior to 2008. Institutional investors such as pensions and sovereign wealth funds invested in these instruments, either directly or through external fund managers. [ Content protected for Sovereign [...]

Public Release – 2Q 2014 Linaburg-Maduell Transparency Index Ratings

The second quarter results for 2014 on sovereign wealth fund transparency have now been released to the public. The Linaburg-Maduell Transparency Index was developed at the Sovereign Wealth Fund Institute by Carl Linaburg and Michael Maduell. Some new sovereign funds have been added to the sovereign wealth fund transparency grading. The Nigerian Sovereign Investment Authority [...]

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 [...]

North Dakota State Investment Board Hires New EM Equity Manager

The North Dakota Legacy Fund, managed by the state’s Retirement and Investment Office, at the direction of the North Dakota State Investment Board, has hired a new fund manager. The State Investment Board manages assets for a number of other North Dakota state funds. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. [...]

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 [...]

Sovereign Wealth Fund Institute Releases Public Fund League Table

The Sovereign Wealth Fund Institute (SWFI) has released a public fund league table that seeks to track all public funds over US$ 10 billion in assets. These funds include national pensions, sovereign wealth funds, public pensions, superannuation funds and other public investment entities. This ongoing initiative hopes to bring transparency to the public investor industry. [...]

Temasek Holdings Opens New York Office

Singapore Prime Minister Lee Hsien Loong is wrapping up his U.S. trip, stopping by to assist in opening Temasek’s new New York Office. The New York office will complement the sovereign wealth fund’s offices in Mexico City and São Paulo. Temasek joins it counterpart GIC Private Limited in having a New York presence. The office [...]

Temasek Not Silent on Executive Compensation Policies at Standard Chartered

UK-based Standard Chartered PLC, a global bank with a heavy focus in emerging economies, has Singapore’s Temasek Holdings as its largest institutional shareholder. The Singapore sovereign wealth fund made the massive investment in the bank, betting on the long-term success of growth countries with rising middle class savers. [ Content protected for Sovereign Wealth Fund [...]

Yngve Slyngstad

Largest Sovereign Wealth Fund Makes Strategic Changes

Norway’s Government Pension Fund Global (GPFG) released its 2014-2016 strategy report, highlighting significant changes in how it will invest sovereign wealth assets and manage risk. After studying other asset owners and institutional investors like the CPPIB, Singapore’s GIC Private Limited and the New Zealand Superannuation Fund, the fund is adopting some attributes of the opportunity [...]

Trustees Appoint Former Chinese Sovereign Wealth Executive for IFRS Foundation

The London-based IFRS Foundation is responsible for the governance and oversight of the International Accounting Standards Board (IASB). Some trustees of the IFRS Foundation include Dick Sluimers, CEO of APG Group, and Wiseman Nkuhlu, the former economic adviser to former South African President Thabo Mbeki. The trustees have appointed Jin Liqun, who was chairman of [...]