Policy

KIC Exploring Idea of Overseas Asian Office

The Korea Investment Corporation (KIC) is carefully exploring the possibility of opening up more overseas offices – following the footsteps of many large sovereign funds and Canadian pensions. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Build, Buy or Outsource: Tax Reclaims and Class Action Recovery

This article is sponsored by Goal Group. Written by Bill Salva and Noah Wortman The arguments in favor of outsourcing or buying a commercial enterprise solution from a qualified Tax Reclaim and Securities Class Action Recovery provider are compelling. One common guideline applied by many for this decision is to buy or outsource when you [...]


SIFI

PAY ATTENTION: SIFI Stamp on Asset Managers Could Broaden

Financial regulators may soon be further reigning in global asset managers like BlackRock and Los Angeles-based Capital Group by marking some as SIFI. SIFI stands for systemically important financial institution. The Financial Stability Board (FSB), an international body backed by a number of governments, and the International Organization of Securities Commissions (IOSCO), a membership organization [...]


Singapore’s Founding Father Lee Kuan Yew Passes at 91

Lee Kuan Yew, Singapore’s first elected prime minister who served starting at the age of 35, passed away at 3:18 AM Singapore time on Monday. On February 5, 2015, elder statesman Lee Kuan Yew was hospitalized for severe pneumonia. Under Lee’s watch, he oversaw the modernization of Singapore from a tiny British outpost into a [...]


YELLEN: Rate Increases Cannot be Ruled Out

Federal Reserve Chair Janet Yellen calmly stated at a press conference that a rate increase in June cannot be ruled out. Yellen added for the Federal Reserve to raise rates, there must be “further improvement in labor markets,” and inflation will need to go back to its 2% target over the medium term. The Federal [...]


PREPPING: Institutional Investor CIOs Dampen Equity Expectations

Despite the recent stack of institutional investor surveys that demonstrate the current mood of chief investment officers as cautiously optimistic, a number of these asset owner executives are not singing the same tune to their investment committees. Released publicly in October 2014, the Pyramis Global Advisors Institutional Investor Survey 2014 posed a question to its [...]


factor based investing

Future Fund Board Member to be Interim CEO of PineBridge Investments

New York-based PineBridge Investments which manages US$ 72.9 billion as of December 31, 2014, is going through an executive shuffle to boost sales and capture more market share. PineBridge Investments CEO David Jiang resigned on March 16th and has been replaced by interim CEO Stephen Fitzgerald who is deputy chairman of the board at PineBridge. [...]


World’s Largest Sovereign Wealth Fund Generated 7.6% Return in 2014

  Norges Bank Investment Management (NBIM), the manager of Norway’s sovereign wealth fund, posted a 7.6% return in 2014 versus a 15.9% return in 2013. The highest performing asset class was real estate at 10.4%, followed by listed equities at 7.9%. Fixed income performed at 6.9%. Compared to previous years, the relative returns in fixed [...]


Exploring the Best Business Schools for Asset Owner Executives

The full out ranking will be released in concert with the April issue of the Sovereign Wealth Quarterly. I often speak to young finance graduates about how to succeed in a career in investment management and what career options are available. This got my wheels turning – how have these captains and chiefs of pension [...]


Norway’s Sovereign Wealth Fund Shifts External Investment Mandates

The official announcement of the European Central Bank’s bond buying programme has lifted European equities overall – giving a boost to equity institutional investors’ portfolios. Large sovereign funds like Norway’s Government Pension Fund Global (GPFG) typically have a long-term investment outlook and structured processes when allocating capital to equity and fixed income investments. In October [...]


airport plane

Oman Sovereign Wealth Fund Expands Clout in Frontier Markets

One of Oman’s sovereign wealth funds is making strides in frontier markets like Tanzania and emerging markets in Southeast Asia and the Gulf region. Oman’s State General Reserve Fund (SGRF) and Oman Brunei Investment Co (OBIC) partnered in early March to form an aircraft leasing company with initial capital of 200 million OMR (US$ 520 [...]


QIA and KIC to Form $2 Billion Investment Fund

The Korea Investment Corporation (KIC) has made a substantial effort to form joint funds and investments with foreign institutional investors like Kingdom Holding and sovereign wealth funds. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


ECB debt

Abu Dhabi Investment Authority Makes Big Push into European Equities

One of the world’s largest sovereign wealth funds, Abu Dhabi Investment Authority (ADIA), is making a significant move toward European listed equities – betting on European quantitative easing (QE) policies to lift asset prices according to SWFI research. Investment banks such as Citigroup have informed clients that European equities will positively perform in 2015. Citigroup [...]


Dubai

Korea Investment Corp Signs MoU with Dubai SWF and Kingdom Holding

The Investment Corporation of Dubai (ICD) signed a Memorandum of Understanding (MoU) with the Korea Investment Corporation (KIC). Sovereign wealth funds and Western financial institutions perceive the Gulf cities, particularly Dubai, Abu Dhabi, Manama and Doha as potential gateways into Africa. Almost concurrently, ICD formed a US$ 1 billion development deal with Brookfield Asset Management [...]


private equity

Yale Keeps Yale Endowment Model

Yale’s massive US$ 23.9 billion endowment gained US$ 4 billion in investment returns during its fiscal year 2014 – essentially a 20.2% return. The big threat facing U.S. endowments is sustainable funding and Yale’s endowment for 2014 subsidized nearly 33% of the university’s income. The world of asset allocation models and theories are rife with [...]


How Falling Oil Prices Are Impacting Sovereign Wealth Funds

To weather the boom and bust cycles of crude oil commodities, many oil-rich countries and states formed sovereign wealth funds to accumulate assets (see – sovereign wealth fund definition). At the beginning of 2008, sovereign wealth fund assets stood at US$ 3.43 trillion. As of March 2015, sovereign wealth funds have over US$ 7.1 trillion [...]


Follow the QE, Kuwait Investment Authority to Cut US Investments

The Kuwait Investment Office (KIO), a sovereign wealth enterprise of the Kuwait Investment Authority (KIA), plans to slowly pullback on U.S. equities after being overweight for seven years. Reuters news broke the story from reporting at a conference in Abu Dhabi. Osama al-Ayoub, head of the Kuwait Investment Office, said the unit wants to invest [...]


Norway’s Sovereign Wealth Fund Gets Another $1 Billion QFII Quota

Increasingly European asset owners want increased exposure to mainland Chinese equities. For example, Swedish buffer fund AP2 posted an approximate 59.1% return in 2014 in listed Chinese equities for 2014. Norges Bank Investment Management (NBIM), manager of Norway’s sovereign wealth fund, received another US$ 1 billion in China’s Qualified Foreign Institutional Investor (QFII) program. NBIM’s [...]


sovereign wealth fund center asia

Hong Kong Getting Serious About Future Fund Formation

The complex world of sovereign wealth funds has grown rapidly in the last 10 years. As of February 2015, there are over US$ 7 trillion in sovereign wealth fund assets, trumping the U.S. defined benefit sector. Meanwhile, a new fund may be joining the SWFI’s sovereign wealth fund rankings. The Hong Kong government and Hong [...]


SWFI Trend Report: Sovereign Wealth Fund Direct Infrastructure Investments, 2003-2014

Sovereign wealth funds surpassed US$ 7 trillion in assets before the end of 2014. These institutional investors typically have unique liabilities compared to public pensions. Many of the large sovereign wealth funds, funds with over US$ 30 billion in assets, seek long-term investments. When it comes to infrastructure, sovereign wealth funds pursue accommodating investment regimes, [...]