Policy

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 [...]


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 [...]


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 [...]


Norway’s Sovereign Wealth Fund Walks Tightrope with Environmentalists

Norway’s sovereign fund which generates wealth from investment returns and fossil fuels will allocate an equivalent of 1% of its assets into environmental technology stocks – equating to about US$ 3 billion. At the end of 2013, the sovereign wealth fund held US$ 4.5 billion in green technology companies. NBIM CEO Yngve Slyngstad indicated on [...]


CHANGES: New CEO at Qatar Investment Authority

Sheikh Abdullah bin Mohammed bin Saud al-Thani, a member of the ruling family, will be the new chief at the Qatar Investment Authority (QIA), replacing Ahmed al-Sayed. This was announced on the official Qatar News Agency (QNA). Ahmed al-Sayed was the CEO of Qatar Holding before being appointed as CEO of the QIA in July [...]


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. For example, Latin American pension funds [...]


SPIVA Europe Scorecard Mid-Year 2014: How Have Active Managers Fared in Europe?

This article is sponsored by S&P Dow Jones Indices. The active-versus-passive debate has been raging for years and, with strong opinions on both sides, this issue is likely to remain contentious. As a scorekeeper in this debate, S&P Dow Jones Indices (S&P DJI) has been publishing the S&P Indices Versus Active (SPIVA®) Scorecard since 2002. [...]


Governance and Santiago Principles Take Center Stage in Doha

Doha, Qatar’s capital city ripe with petrol wealth and ambitions of diversification whether it be tourism, housing, entertainment, insurance or retail, is home to a massive sovereign wealth fund called the Qatar Investment Authority (QIA). Under the previous and current Qatari emirs, gargantuan developments like The Pearl, Katara and infrastructure related to the upcoming 2022 [...]


Friday SWFI News Roundup, November 21, 2014

Bain Capital and Other Institutional Investors Keen on Virgin Cruises Private equity firm Bain Capital has agreed to be a key shareholder in Virgin Cruises, another transport venture by billionaire Sir Richard Branson. This new cruise-line venture will required hundreds of millions of dollars. The Virgin Group would invest more than US$ 100 million in [...]


Norway Sovereign Wealth Fund Embraces Block Size Trading

Norges Bank Investment Management (NBIM), the manager of Norway’s sovereign wealth fund, is using less algorithmic trading in favor of trading in large block sizes. By trading stocks in large block sizes, NBIM is trying to avoid pattern-reading from pollrumptious entities in the marketplace. Institutional investors like NBIM are market makers due to their majestic [...]


LIA Presses on with SocGen Suit

The Libyan Investment Authority’s case against Societe Generale SA is now underway. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Citigroup Banking

HANDS SLAPPED: 5 Banks Get Hit with Fines for Currency Manipulation

In a major crackdown, five major banks (UBS, RBS, HSBC, Citigroup and JPMorgan) have got hit with fines from various financial regulators. With regard to the UK’s Financial Conduct Authority (FCA), this is the largest set of charges ever levied by UK financial regulators. In total, US$ 3.4 billion in fines were levied by the [...]


Public Release – 3Q 2014 Linaburg-Maduell Transparency Index Ratings

The third 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. The China Investment Corporation (CIC) moved from a 7 to an 8 rating. The Abu Dhabi Investment Authority (ADIA) [...]


Sovereign Wealth Funds Poised to Reach $7 Trillion by 2015

As of November 2014, sovereign wealth fund assets totaled US$ 6.977 trillion compared to US$ 6.106 trillion in December 2013. This nearly US$ 900 billion increase can be attributed by improvements in investment returns and capital flows into sovereign wealth fund vehicles. In December 2007, sovereign wealth fund assets amounted to US$ 3.259 trillion. This [...]


GOP Takes Senate: How Will Institutional Investors Respond?

Yesterday, U.S. voters spoke across America during Election Day, giving the GOP control of the U.S. Senate. From various leading polls, Democrats knew they were in trouble weeks before election night. Democrat operatives felt last night’s election was a natural disaster, losing their majority in the Senate. Looking at current figures, Republicans are on the [...]


index investing

BIG CHANGES: World’s Largest Pension Fund Shifts Allocation

Japan’s Government Pension Investment Fund (GPIF), the steward of 67 million retirement participants, is embarking on a dramatic shift toward equities. The pension giant is cutting its allocation to domestic bonds, specifically Japanese government bonds (JGBs). Domestic bonds will go from 60% to 35%, a major change in allocation, over an unspecified period of time. [...]


Ireland

NPRF Allocates €350 Million to Strategic Banking Corporation of Ireland

Ireland’s National Pension Reserve Fund (NPRF), which has taken a strategic development focus post-global financial crisis, is providing capital to an entity to augment funding in Irish small-to-medium enterprises. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Friday SWFI News Roundup, October 31, 2014

Friday Roundups – Halloween Edition In London: We had over US$ 2.7 trillion in public asset owner capital in the audience. Photo: Gerard Lyons addressing delegates of asset managers, sovereign wealth funds, pensions and policymakers. Harrods Pays £118 Million Dividend to Qatar Holding Harrods, a luxury department business, paid a £118 million dividend to its [...]


ALMOST FLAT: Norway SWF Posts 0.1% for 3rd Quarter of 2014

Norway’s Government Pension Fund Global (GPFG) posted a 0.1% return for the third quarter of 2014. Equity investments posted -0.5% for the period, while fixed income posted 0.9%. Real estate investments for the period returned 1.5%. In a press release, Yngve Slyngstad, CEO of Norges Bank Investment Management (NBIM), stated, “Two quarters of strong returns [...]


dividends

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 National [...]