Policy

What Does Sovereign Wealth Have to Do with Leonardo DiCaprio?

The notorious sovereign fund embezzlement scandal involving Malaysian financier Jho Low has entangled a number of the Hollywood elite, including well known star Leonardo DiCaprio. The intricate scandal centers on the alleged abuse of funds at 1Malaysia Development Bhd., also known as 1MDB. 1MDB is known as a strategic development sovereign wealth fund (SDSWF), a […]


Opportunity Cost Model

Smart Beta: NZSF Moves NZ$ 600 Million to Two New Factor Strategies

Increasingly, asset owners such as sovereign funds and long-term pensions have embraced smart beta or factor-based investment strategies to enhance return and lower investment cost for beta. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Norway Sovereign Fund Generates 1.3% Return for 2nd Quarter 2016

Norway’s Government Pension Fund Global (GPFG) is one of the most written about sovereign funds. The massive sovereign fund had struggled in first quarter performance, while the fund dealt with a 24 billion kroner withdrawal in the second quarter of 2016 from the Norwegian government. However, the fund posted a 1.3% return for the second […]


Bain and Landor Associates Win Advising Mandate on Mubadala-IPIC Merger

The Government of Abu Dhabi have signed contracts with Bain & Co. and Landor Associates to advise on the merger of Mubadala Development Co. and International Petroleum Investment Company (IPIC). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Friday SWFI News Roundup, August 12, 2016

My Turn: CPPIB Looks to Open Sydney Office The Canada Pension Plan Investment Board (CPPIB) plans to formalize its existing operations in Sydney, Australia in fiscal year 2017 with a stand-alone CPPIB office. CPPIB has C$ 7.9 billion invested in Australia. Major Korean Asset Owners Contemplate Allocation to Cerberus RE Fund [ Content protected for […]


SWFI First Read, August 11, 2016

Vanguard Hires Former iShares Executive for European ETF Distribution Vanguard hired Andreas Zingg as head of exchange-traded fund (ETF) distribution management for continental Europe. From April 2014 to June 2016, Zingg was Head of iShares Middle East and Africa for BlackRock. He also spent a number of years as Head of Sales for iShares in […]


Gurus Worried, What Should Sovereign Funds Do?

Carl Ichan. Bill Gross. Jeffrey Gundlach. Stan Drunkenmiller. Get the picture? Several prominent investment gurus have recently made public comments regarding the state of the markets – playing a bearish tone of what is to come. Even investment banking mammoth Goldman Sachs gave a warning signal, as well as GOP U.S. Presidential candidate Donald J. […]


SWFI First Read, August 2, 2016

Turkish Prime Minister Sends Sovereign Wealth Fund Bill to Parliament [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Follow the Money – Episode 15

This is the fifth episode of Global Connections. Rachel and I got back to business chatting about annual returns and policy changes from sovereign funds and mega pensions. I discussed how some asset owners are modifying their allocation strategies in a low-yield world. I talked about how some hedge fund strategies are being shuttered and […]


PIF to Manage $1.1 Billion Fund for SME Companies

Saudi Arabia’s Public Investment Fund (PIF) has received approval to create a US$ 1.1 billion fund to foster growth in the country’s venture capital community. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Japan’s GPIF Encounters First Loss in Five Years

Japan’s Government Pension Investment Fund (GPIF), the largest public pension investor in the world, posted a negative return for its latest fiscal year ended March 31, 2016. The fund lost 5.3 trillion JPY (US$ 51.3 billion) for the year, generating a -3.81% return. GPIF joins a cadre of mega public institutional investors that have earned […]


Boosting Liquidity, GIC Braces for More Volatility

Singapore’s GIC Private Limited posted a drip in real returns as its 20-year annualized real rate of return fell to 4% from 4.9% from the previous period of fiscal year 2014-2015. GIC investment officials see modest growth prospects, more uncertainty and a higher degree of volatility in the macro economy and markets, according to their […]


Deloitte is the 3rd Major Auditor to Exit 1MDB

Deloitte Touche Tohmatsu Ltd. becomes the third external auditor to leave 1Malaysia Development Berhad (1MDB). Deloitte had audited 1MDB’s financial statements in 2013 and 2014. Deloitte had resigned in February 2016. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Are Chinese Investors Ready to Embrace Risk Parity?

The concept of risk parity has garnered significant attention in the world of U.S. public pensions, especially after the global financial crisis. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


US DOJ Seeks to Recover Money Regarding Corruption Involving 1MDB

On July 20, 2016, the U.S. Department of Justice (DOJ) filed a civil complaint seeking to forfeit and recover more than US$ 1 billion in assets that are associated with a conspiracy to launder funds stolen from 1 Malaysia Development Berhad, or 1MDB. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please […]


CIC Overseas Portfolio Battles Low-Yield Forces

The China Investment Corporation (CIC) suffered a negative return on its overseas portfolio. The portfolio returned -2.96% in 2015 compared to a 2014 return of 5.47%. However, CIC’s total assets rose past US$ 810 billion, beating out the Abu Dhabi Investment Authority (ADIA) in assets under management in terms of SWFI’s sovereign wealth fund rankings […]


Here Are 3 Changes Made by a Mega Sovereign Wealth Fund

The Abu Dhabi Investment Authority (ADIA) is the largest sovereign wealth fund in the Gulf. ADIA has a massive operation, consisting of over 1,700 employees, compared to just over 500 back in 1988. A number of public institutional investors are keen on how ADIA deploys its assets. The wealth fund giant has made a number […]


SWFI First Read, July 16, 2016

Attempted Turkey Coup Unravels On July 15, 2016, sections of the Turkish military, the “Peace at Home Council,” attempted to overthrow the Turkish government. Soldiers had stormed Turkey’s state-run broadcaster declaring martial law and that they had taken over the government. Soldiers were deployed to the streets of Ankara and Istanbul. The military told people […]


Korea’s NPS May Sue Daewoo Shipbuilding & Marine Over Accounting Shenanigans

Korea’s National Pension Service (NPS) revealed that it may file a damages suit against Daewoo Shipbuilding & Marine Engineering Co., Ltd (DSME) on suspicions of accounting fraud. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Highest Year of Divestment for Temasek

Singapore’s Temasek Holdings recently released its latest annual report. Temasek’s net porfolio value was S$ 242 billion as of March 2016 versus S$ 266 billion from March 2015. The total shareholder return for the annual period was -9.02%, versus a strong return of 19.2% for the 2015 fiscal year. Temasek’s energy and natural resource investments […]