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

sovereign wealth fund reportThis brief 3-page report is available for download for SWFI subscribers. This report gives a concise overview on the proliferation of sovereign wealth funds.

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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 asset owners in size and sophistication. For example, according to the Investment Company Institute, the size of U.S. defined benefit public plans amounted to US$ 5.6 billion from December 2013. As of April 2014, sovereign wealth funds as an investor class totals US$ 6.4 trillion.

Part II – Sample
Sovereign wealth funds can be economic anchors for a society. The reason why many sovereign wealth funds are created and maintained is economic in nature. Countries fearful of Dutch Disease, hastened the use of overseas investment vehicles to sterilize natural resource government inflows. Sovereign wealth funds can have a strong fiscal stabilizing influence as well.

Former Mongolia Prime Minister to Speak at Institute Fund Summit 2014 Asia

Former Prime Minister of Mongolia, Amarjargal Rinchinnyam

Former Prime Minister of Mongolia, Amarjargal Rinchinnyam

The Honorable Amarjargal Rinchinnyam will deliver a keynote speech at the Institute Fund Summit 2014 Asia at The Peninsula Hotel in Hong Kong. Amarjargal is the former Prime Minister of Mongolia and currently serves as a member of the country’s parliament. Mongolia has tremendous mining wealth, derived mostly from coal, copper, molybdenum and gold, and its approximately 2.8 million citizens rely heavily on the mining and agricultural sectors for prosperity.

In 2010, Mongolia passed the Fiscal Stability Law followed by the Integrated Budget Law in 2011, which provides comprehensive principles and guidance for the budgeting process.

Event Site: www.ifsummitasia.com

Request Agenda: support@swfinstitute.org

Questions: Autumn Reed, areed@swfinstitute.org

Not Too Late: Japan’s GPIF Seeks External Managers for Foreign Bonds

The US$ 1.26 trillion Japan’s Government Pension Investment Fund (GPIF) is seeking external managers for bonds ex-Japan. These include active mandates in high-yield, inflation-linked and emerging market debt. The GPIF holds around 11% of assets in foreign debt. The pension giant will most likely continue to increase foreign debt on behalf of domestic debt allocation.

Analyzing GPIF’s 2012 fiscal year report, Goldman Sachs Asset Management and PIMCO were managers in GPIF’s active foreign debt program.

Angola Sovereign Wealth Fund Confirms Audit Board

José Filomeno dos Santos, Chairman, FSDEA

José Filomeno dos Santos, Chairman, FSDEA

The Fundo Soberano de Angola (FSDEA) has confirmed the three-member Audit Board by the country’s Ministry of Finance. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Dubai CEO Doubles Down

dubai

On April 7th, in London’s financial center, was a confluence of wealth, forecasts and discussions as Dubai officials met with international bankers and institutional investors. These “roadshow” meetings came ahead of Dubai World’s annual creditor meeting. Government officials reiterated that pre-crisis, pro-growth measures were not a regret and the area is set for another boom.

Chief Executive Mohammed al-Shaibani of the Investment Corporation of Dubai told the audience at Deutsche Bank’s London offices, “If Dubai had to do the same again, most likely we would follow the same approach.”

Al-Shaibani contended that massive Dubai investment between 2006-2008 had helped jumpstart Dubai as a key financial center.

Emirates Global Aluminium

On the same day, the Investment Corporation of Dubai and the Mubadala Development Company incorporated Emirates Global Aluminium (EGA), the jointly-owned aluminium company formed by integrating the two shareholders’ interests.

The new joint venture has two core operating entities, Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL). Emirates Global Aluminium will be chaired by Khaldoon Khalifa Al Mubarak and the vice-chair will be Saeed Mohammed Al Tayer.

According to the EGA press release, EGA CEO and Managing Director Abdulla Kalban stated, “I would like to extend our gratitude to the shareholders for their support in establishing this global business. This is a proud day for EGA’s highly-skilled employees, who represent a company led by UAE Nationals using technology that is unique to our company and the industry. Combining the strengths of DUBAL and EMAL creates a national champion for technological innovation and business performance excellence.”

Thanks HFT: Sovereign Wealth Funds and Pensions Fear Financial Transaction Tax

Stock Market - Red and Green Figures on Blue DisplayMichael Lewis’ Flash Boys: Cracking the Money Code has made rounds on American television, creating uproar in the secret world of high-frequency trading (HFT). After the slurry of TV interviews of Lewis promoting his new book, the Federal Bureau of Investigations (FBI) came forward, publicly announcing an investigation into high-frequency trading.

“The United States stock market, the most iconic market in global capitalism, is rigged.”

These were the words that came out of Michael Lewis’ mouth on the CBS Show “60 Minutes” in his interview with Steve Kroft.

Sovereign wealth funds, like Norway’s Government Pension Fund Global (GPFG) note the negative impact of high-frequency trading for large institutional investors executing big orders. The Nordic sovereign fund contends that HFT exploits the structural differences between venues.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Succession Planning at BlackRock, Fidelity and Other Giants

In many cases, U.S. asset managers have struggled to adapt once a founding CEO or key head departs. Typically asset manager CEOs carry a persona that attaches them to the brand and investment philosophy. In early April, Laurence Fink, chief executive and co-founder of BlackRock Inc., promoted a number of executives globally. BlackRock President Robert Kapito, who has been in that role since 2007, reiterated Fink would remain with the firm for years to come.

Recent BlackRock Executive Promotions

BlackRock Executive Current Role Promotion
Charlie Hallac Chief Operating Officer Co-President
Rob Goldstein Global Head of BlackRock’s Institutional Client Business (ICB) and BlackRock Solutions (BRS) Chief Operating Officer
Rich Kushel Deputy Chief Operating Officer Chief Product Officer
Mark McCombe Head of Asia-Pacific Global Head of Institutional Clients, Chairman of BlackRock Alternative Investors
Ryan Stork Head of Aladdin Business Head of Asia-Pacific
Ken Wilson Head of BlackRock Alternative Investors Chairman of Alpha Strategies
Patrick Olson Global Head of Strategy and Planning Chief Operating Officer of EMEA

 

Fidelity Investments

In 2012, Abigail Johnson, daughter of the current Chairman, was promoted to president at Fidelity Investments. A move that has her in line of succeeding Fidelity Chair Edward Johnson III. The family-controlled Fidelity (49% of voting shares) has been managed by Edward Johnson for 35 years. Harvard MBA-educated Johnson started her financial career at Fidelity back in 1988 as a mutual fund manager.

PIMCO

PIMCO lost Mohamed El-Erian in March and quickly the firm promoted a cadre of executives – six deputy chief investment officers. According to a post on PIMCO’s website, authored by Founder Bill Gross in February 2014, “It now includes six Deputy CIOs, each of whom will be leading an individual “channel” of assets, with oversight of trading desks or specialist areas or both. Their primary responsibilities are investment performance, overseeing day-to-day strategy formulation, implementation and risk management for their areas. They report to me.”

Here is the BlackRock memo:


TO: ALL EMPLOYEES

FROM: LARRY FINK AND ROB KAPITO
RE: NEW SENIOR MANAGEMENT ROLES

One of the keys to BlackRock’s success – past and future – is developing people and embedding our culture. For the past five years, together with the Board, we have pursued a deliberate effort to build a deep bench of executive talent by mapping leaders to roles that present them with new challenges, broaden their horizons and maximize their impact with the firm and our clients. Periodically moving leaders to new roles as part of this process was a key rationale for the re-organization of the firm in 2012 and is a key driver of the management changes we are announcing today.

Talent is something we manage vigorously and review consistently with the Board. Our intensive approach has created a wide pool of leaders, some of whom grew up at BlackRock, some of whom came here through merger, and some of whom joined from other firms. What they share is a commitment to common culture and excellence it encourages. As strong a group as we have today, developing and challenging our people is something we can never stop doing if we want to build a great and enduring company. It remains a top priority for the firm.

Among our “home grown” leaders, no one exemplifies the values and spirit of BlackRock better than Charlie Hallac, our Chief Operating Officer. An initial architect of Aladdin, Charlie has been one of our most original and gifted leaders since joining the firm shortly after its formation in 1988.

· To reflect the central role that Charlie plays at the company and his focus going forward, Charlie will assume a new position as Co-President of BlackRock, effective June 1. Working with us, Charlie will focus on defining and driving our forward strategy, developing our broad bench of leaders and continuing to instill the BlackRock culture in everything we do. The client businesses, investment groups and product management will continue to report to Charlie and Rob Kapito.

A vital component of the forward strategy is technology and how it continues to reshape our industry and the world around us. Our ability to leverage Aladdin even more is a tremendous and unique growth driver for us. So, we’ve asked Charlie to assemble and lead a working group to think through how BlackRock technology can further transform our company and industry.

As many of you know, Charlie is battling colon cancer. Yet, even while undergoing treatment, Charlie is at the office day after day, helping us to create and execute our vision with the same genius, humor and creativity that have defined him as a leader and colleague these past 26 years. We are grateful that BlackRock will continue to benefit from his leadership in this new role.

In addition to Charlie, several other senior executives will also take on new positions, while others will continue to lead from their current roles. To ensure time for smooth transitions of responsibilities, all the changes will become effective June 1. Please note that we are not making any changes to portfolio managers or client relationship managers. The changes we are making include:

· Rob Goldstein, currently Global Head of BlackRock’s Institutional Client Business (ICB) and BlackRock Solutions (BRS), will become Chief Operating Officer. Rob began his career at BlackRock as an analyst in the Portfolio Analytics Group 20 years ago and has played a key role in developing BlackRock Solutions, the Aladdin business and, most recently, leading our Institutional Client Business. As COO, Rob will work with Rob Kapito and Charlie overseeing the day-to-day global business of the firm and ensuring the necessary connectivity, coordination and operating processes across the organization.

Rob will continue to lead BlackRock Solutions, where he has helped to drive double-digit growth and to develop its global client base since its founding.

· Rich Kushel will become our Chief Product Officer. We are elevating this role to reflect how vital our product strategy is to our future success. Rich’s leadership of the Strategic Product Management group has redefined our product development and management process, bringing strategic focus and executional discipline to our product portfolio. Now we must take it to the next level and drive innovation throughout the organization to offer solutions that meet our clients’ most vital needs. In addition to leading our product strategy, Rich will continue to oversee the BlackRock Investment Institute and our Corporate Governance and Responsible Investment team, and he will continue to work closely with Rob Kapito and Charlie on a broad range of firm-wide issues.

· Mark McCombe, who serves as Chairman of BlackRock Asia Pacific, will become Global Head of BlackRock’s Institutional Client Business, based in New York. As head of our APAC business, Mark has put the region on a sustainable growth path by attracting top talent and sharpening our focus on clients and investment performance. Mark also has been instrumental in developing relationships with some of the firm’s largest clients, including official institutions and financial institutions in Asia, which will be invaluable in his new role. To facilitate a smooth leadership transition in APAC, Mark will continue to serve as its Chairman through year-end.

In addition, Mark will become Chairman of BlackRock Alternative Investors (BAI). Aligning BAI and our Institutional Business under Mark’s leadership will be highly accretive to our alternatives growth strategy. He will work with Andy Stewart and Matt Botein, who will continue to co-head the alternatives business, and Edwin Conway, who (in addition to leading ICB in the U.S. and Canada) is responsible for the Alternative Investors Strategy Group.

· Ryan Stork, Global Head of the Aladdin Business within BlackRock Solutions, will become Head of BlackRock Asia Pacific, based in Hong Kong. Ryan has broad global experience and a record of growing a strategic business. As head of the Aladdin client business since 2009, Ryan has driven rapid expansion of the business globally – broadening the international mix of clients on the platform including major new clients in both Europe and Asia. Earlier in his career, he played a key role in leading integration among our client businesses in Europe, the Middle East and Africa. He will work closely with Mark McCombe and succeed Mark as Chairman of Asia Pacific at year-end.

· Quintin Price, who has led the revitalization of Alpha Strategies, will be moving to New York. The strong performance achieved for our clients – with more than 70% of assets performing ahead of their benchmarks on a one, three and five-year basis – has been one of the firm’s most significant accomplishments in recent years. Quintin will lead this ongoing effort from New York and continue to spend significant time in EMEA and Asia.

· Ken Wilson, who has served as Chairman of BlackRock Alternative Investors since its creation, will become Chairman of Alpha Strategies, working closely with Quintin to leverage the team’s momentum and to further develop and reintroduce our Alpha platform to the marketplace.

· Patrick Olson, who is Global Head of Strategy and Planning, will become Chief Operating Officer of EMEA and join the EMEA Executive Committee. Patrick, who has expressed a desire to get more directly involved in operating a business, will work closely with David Blumer, Head of EMEA, to help manage the growing complexities of operating in the region, while also providing critical connectivity around the world.

Investor Relations and Corporate Development, that were part of the strategy organization, will now become part of Finance reporting to Chief Financial Officer Gary Shedlin.

· Salim Ramji, a Senior Partner at McKinsey & Company, will join the firm later this month as Global Head of Corporate Strategy. Salim most recently led McKinsey’s Asset Management and Retirement Practice areas and is among the most thoughtful, strategic leaders helping to shape the future of our industry. Having worked with BlackRock as a strategic advisor for many years, Salim knows the firm and its people well and will be a tremendous addition.

· Sudhir Nair, currently Head of Business Development and Implementations & Delivery for the Aladdin Business, will become Global Head of the Aladdin Institutional Business. Sudhir has played an integral role in helping to build and develop our Aladdin business over the past 14 years, initially starting as an analyst in the Portfolio Analytics Group. His deep knowledge of Aladdin as a platform and of our client base will ensure a seamless transition and continued focus on our growth strategy.

The existing Aladdin business is being renamed to highlight its focus on our institutional client base, while Charlie leads the working group described above in exploring other ways to leverage Aladdin, including for the firm’s retail clients.

We are fortunate to have so many gifted leaders across the firm, but that has not happened by chance. It has come through our deliberate approach to developing our people, continuously giving them new opportunities and challenges. That is something we are deeply committed to doing with talent at every level of the organization. It has allowed us to build a team of leaders capable of far more than any individual and is the only way to build a great and enduring company. Please join us in congratulating all of those taking on new roles, many of them in new businesses and new parts of the world.

Finally, we want to thank everyone across the firm for everything you are doing day in and day out to make BlackRock what it is today and what it can be in the years to come.

Sincerely,
Larry and Rob

Norwegian FinMin: Sovereign Wealth Fund is Not a Political Tool

The Norwegian Ministry of Finance issued a press release stating the Norwegian Government Pension Fund Global (GPFG) is “a financial investor, not a political policy tool.” Tensions have flared in the media and political scene, as the debate moves toward what Norway’s sovereign wealth fund should do when it comes to the environment and climate change. Green activists and some politicians demand the fund should divest from all coal or oil companies. Norway’s sovereign wealth fund is funded by government oil & gas income among other sources.

Tweet from WWF
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Norway is one of the few sovereign wealth funds that has a policy toward ESG principles. Green activist groups continue to put political pressure on the Norwegian government to forward their agenda.

In response, the Norwegian government has approached an “Expert Group” on how the institutional investor can tackle the issue of gas emissions from fossil fuel companies. In addition, the group will analyze whether ownership exclusion is more effective than exercising shareholder rights to affect change with the company.

Profile: Norway’s sovereign wealth fund

Norway’s sovereign wealth fund invests in over 8,000 companies.

The Ministry of Finance reiterated in the press release, “The management objective of the GPFG is to maximise its long-term international purchasing power. This is the fundamental basis for the investment strategy. It rests on a premise both of inter-generational equality and saving for future government expenditure, and of avoiding over-heating of today’s domestic economy.”

North Dakota Investment Board Seeks MBS Manager

David Hunter, the relatively-new chief investment officer of the North Dakota State Investment Board, which manages many state funds including the North Dakota Legacy Fund is searching for a mortgage-backed securities manager. The amount to manage is around US$ 115 million. The board has put Western Asset Management on watch for performance and personnel changes.

The North Dakota Legacy Fund has surpassed US$ 1.7 billion in assets. The sovereign fund is on an 18-month plan to diversify its asset allocation from short-term fixed income assets. Sovereign wealth per capita is estimated at US$ 2,430 per person.

See the North Dakota Legacy Fund

See North Dakota Legacy Fund’s Asset Allocation

GIC Opens Sao Paulo Office

Lim Siong Guan, Group President of GIC Private Limited

Lim Siong Guan, Group President of GIC Private Limited

GIC Private Limited, one of Singapore’s sovereign wealth funds, has opened an office in São Paulo, Brazil. This is the GIC’s tenth worldwide office and reflects the GIC’s interest in Latin America. Wolfgang Schwerdtle, a senior vice president of GIC, is heading the Brazil office. Schwerdtle works in GIC Special Investments and had previously been with MidOcean Partners.

In a press release, GIC Group President, Lim Siong Guan stated, “GIC’s presence in Brazil is another step in our strategy to be present in key financial capitals around the world. Local partners and insights add to our global understanding of value investment opportunities. To stay ahead in an increasingly competitive landscape, we will continue to leverage our ability to invest on a multi-asset class basis, respond quickly to investment opportunities both large and small, and adopt a long-term view in our investment commitments.”

Here’s Why Singapore’s GIC is Expanding Investments in Brazil

Libyan Wealth Fund Says Societe Generale Paid $58.5 Million in Alleged Bribes

Libya’s sovereign wealth fund, the Libyan Investment Authority (LIA), is accusing France’s second largest bank Societe Generale SA, of channeling bribe money to secure business. The LIA accuses Societe Generale of paying a middleman, a Panamanian-registered company called Leinada Inc., US$ 58.5 million in alleged bribes to secure nearly US$ 2 billion in business from the LIA. Leinada is controlled by Walid Ali Giahmi, a Libyan businessman who had close ties to the Gaddafi family. Giahmi’s lawyer stated the bribery accusations are “completely false.”

The LIA initiated claims in January 2014 against Goldman Sachs and Societe Generale to rectify previous wrongs and recover money. The wealth fund has filed a US$ 1.5 billion lawsuit in London against Societe Generale.

In response, Societe Generale contests the allegations from the LIA complaint.

The case is The Libyan Investment Authority v. Societe Generale S.A, 14-260, High Court of Justice Queens Bench Division, Commercial Court.

New Chairman for Trinidad and Tobago’s Sovereign Wealth Fund

According to Trinidad & Tobago’s Ministry of Finance and the Economy, Dr Ralph Henry has been appointed new chairman for the Heritage and Stabilization Fund (HSF). Henry is replacing Avyann Ferguson who was appointed from 2010-2013.

Henry was a lecturer at the University of the West Indies. Henry was the first chairman of the Telecommunications Authority of Trinidad & Tobago. In addition, he was a consultant to various organizations such as the Inter-American Development Bank, the Caribbean Development Bank and the World Bank.

The sovereign wealth fund was created in 2007 by the Heritage and Stabilisation Act 2007.

The Most Active Sovereign Wealth Fund Investors of 2013

Sovereign Wealth Fund Direct Transactions by Year

sovereignwealthfund_transactions_march2014_annualSource: Sovereign Wealth Fund Transaction Database – March 2014

2013 was a milestone year for sovereign wealth funds acquiring companies and assets. According to the Sovereign Wealth Fund Institute’s proprietary transaction database, 2012 transactions amounted to US$ 65.09 billion, a drop from 2011’s US$ 90.04 billion. 2013 has set a record of US$ 174.73 billion in direct sovereign wealth fund transactions. This rebound of direct transactions reflects sovereign funds’ growth in assets, maturation of internal operations in the larger funds and improved confidence in the world economy.

The investment strategies of sovereign wealth funds has changed over the past eight years. Broadening direct investment tactics from acquiring manufacturing companies to farmland in Australia, fosters a growing role of sovereign funds as serious forms of long-term capital.

The majority of direct sovereign wealth fund investment activity flows from three key geographic areas: Asia, Gulf States and Northern Europe. Excluding Norway, the Asian sovereign wealth funds outmatched the Gulf-based sovereign funds on direct purchases in terms of total transaction amounts.

Who were the most active sovereign wealth funds in direct investing for 2013?

3. The Towers of Abu Dhabi
The Abu Dhabi Investment Authority’s buying splurge of core assets in Europe and Australia has pushed up the level of direct investment activity in both observations and transaction amounts for the fund. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Norwegian Government Allows GPFG to Continue Investing in Coal Pending Further Investigation

The Norwegian parliament struck down legislation that would exclude coal companies from the Government Pension Fund Global’s (GPFG) investment universe because of its impact on the environment. The sovereign wealth fund is already subject to ethical guidelines for investing, but recent pushes to ban fossil fuel investments have sparked heated debate.

Critics call the legislation hypocritical because Norway’s oil and gas reserves are the sole funding of GPFG, formerly known as the Petroleum Fund.

Norway’s Labor Party spearheaded the bill citing environmental concerns, but lost the support of the Christian Democrats and Liberals in favor of first researching the effect of banning investments in oil, gas and coal companies, according to Bloomberg. Several detractors of the proposal argue that excluding fossil fuel investments would cut funding for numerous companies that are trying to develop emission reducing technology.

The Labor Party intends to revise and resubmit the proposal later this year, Torstein Tvedt Solberg, a party legislator, told Bloomberg.

GPFG has ethical guidelines for investing in place and currently excludes certain weapon manufacturers (nuclear arms, anti-personnel land mines, and cluster munitions), tobacco producers and companies with poor human rights and environmental track records. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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 of US$ 1 billion in assets toward international equity portfolios.

With a 24% allocation to international equity, the fund currently has these external managers running that portion – according to its investment consultant, Callan Associates:

  • Batterymarch Financial Management
  • GMO
  • Thornburg Investment Management
  • Wells Fargo

The trust fund is funded by Alabama’s oil and gas royalties. Alabama’s State Oil and Gas Board provided information to the Treasurer mentioning that production is expected to continue to decline.

Alberta to Redirect $3 Billion of Heritage Fund Over 10 Years

The Alberta government unveiled the Savings Management Act which calls for the establishment of a Future Fund and creation of two new endowments for agriculture and poverty aid as well as a sizable contribution to the existing Alberta Heritage Scholarship Fund. The bill calls for C$ 3.4 billion (US$ 3.06 billion) in funding over the next 10 years to be sourced from existing assets of the Alberta Heritage Savings Trust Fund.

The Alberta Future Fund will initially be capitalized by C$ 200 million later this year and will receive C$ 200 million each year for the following nine years, totaling C$ 2 billion in contributions.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Libyan Investment Authority Sues Societe Generale in UK Courts

Societe Generale SA is being sued by the Libyan Investment Authority (LIA), Libya’s sovereign wealth fund, in the United Kingdom. The claims against Societe Generale involve derivative transactions taken place between 2007 to 2009, relating to an amount above US$ 1.5 billion. According to an LIA report, the Societe Generale trade was one of the worst performing “structured deals” sold to the LIA by European banks.

These derivative transactions generated lucrative fees for the large banks. In late January 2014, the LIA filed a lawsuit against Goldman Sachs.

The case is The Libyan Investment Authority v. Societe Generale S.A, 14-260, High Court of Justice Queens Bench Division, Commercial Court.

Mubadala Shifts Focus from Emerging Markets

emerging markets sovereign wealth funds

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 challenging 2013. The Federal Reserve is expected to pullback on asset purchases. The sovereign wealth executive stated the fund will begin widening its footprint in markets with long-term potential in 2014.

“We’re of course looking at emerging markets, but also to markets like the U.S. and Europe in particular, as recession is being replaced by signs of recovery,” he said.

Mubadala had US$ 55.5 billion in assets under management as of June 2013. Its European portfolio currently consists of renewables (United Kingdom, Germany and Spain), semiconductors (Germany) and aerospace technology (Switzerland and Italy).

In the United States, Mubadala has existing investments in information and communications technology (Prodea Systems and Damballa), real estate (Viceroy Hotel Group) and semiconductors (Global Foundries). The sovereign fund also holds shares in General Electric, Advanced Micro Devices, The Carlyle Group, EMI Music Publishing, John Buck Company, The Raine Group LLC, and Related Companies.

Public Release – 4Q 2013 Linaburg-Maduell Transparency Index Ratings

Sovereign Wealth Fund Transparency

The fourth quarter results for 2013 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.

There were no changes in LMTI ratings for this quarter.

The Linaburg-Maduell transparency index is a method of rating transparency in respect to sovereign wealth funds. Pertaining to government-owned investment vehicles, where there have been concerns of unethical agendas, calls have been made to the larger “opaque” or non-transparent funds to show their intentions.

Click on the index image to increase size.

Read more Linaburg-Maduell Transparency Index

Eastspring Investments Joins the Sovereign Wealth Fund Institute

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Eastspring Investments has joined the Sovereign Wealth Fund Institute as a member. The global Sovereign Wealth Fund Institute membership program is for leading asset managers and service providers engaged in the public investor community. Some of our members include the largest asset managers in the world.

Eastspring Investments

Eastspring Investments is one of Asia’s largest asset managers, with operations in 14 markets (including offices in the US and Europe). The firm manages approximately US$97 billion of assets (as at September 30th, 2013), and just under 2,000 employees in Asia. Eastspring Investments operates in Japan, Malaysia, Singapore, South Korea, Taiwan, Hong Kong, the United Arab Emirates, Vietnam and Indonesia, and has joint venture operations in India, China and Hong Kong. Outside of Asia, Eastspring Investments also operates in the United States, Luxembourg and United Kingdom. As a specialist in Asian investing, Eastspring Investments manages a wide range of Asian investment capabilities which allows institutional investors to access our on-the-ground investment teams, helping them to gain insights into the local markets.

Eastspring Investments is ultimately wholly-owned / indirect subsidiaries / associate of Prudential plc of the United Kingdom. Eastspring Investments companies (including JV’s) and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

Learn more about Eastspring Investments

Questions: Vince Berretta – vberretta@swfinstitute.org