Policy

Sovereign Wealth Funds Have an Active First Quarter 2015

With recent noteworthy deals of sovereign wealth funds buying up massive real estate assets such as Norway’s SWF deal with Prologis on acquiring KTR Capital for US$ 5.9 billion or the Abu Dhabi Investment Council’s role in allocating to Spotify’s latest round, wealth funds continue to exhibit a greater role in direct investments. Some notable [...]


Australia FinMin Cormann Appoints 2 for Future Fund Board

Australian Finance Minister Mathias Cormann has appointed two members to the Future Fund’s Board of Guardian. These are 5-year terms. These members replace founding members Susan Doyle and John Mulcahy. See who works at the Future Fund Jane Wilson and Carloyn Kay have been appointed to the board of the Future Fund. Wilson is an [...]


Sovereign Wealth and Pensions Enticed by Collateral and CP Business

With expanded capital restrictions, especially when it comes to derivatives, traditional banking institutions are dealing with tighter balance sheets. The European Market Infrastructure Regulation (EMIR) and U.S. Dodd-Frank Act have modified the requirements for clearing and collateral. These laws promote the central clearing of standardized over-the-counter (OTC) derivatives contracts. The forced move toward central clearing [...]


RELEASED: 2015 Best Business Schools for Public Institutional Investors

Brief Summary Since our last issue, SWFI has engaged in an ambitious research project developing a rankings table specifically geared toward the top business schools for public investors. The inspiration for the project came from our fund profiles. What we noticed was, along with the top accustomed schools, several prominent executives came from smaller universities, [...]


NSSF

Second Province: Shandong Moves Retirement Fund to NSSF

China’s National Council for Social Security Fund (NSSF) just got slightly larger in terms of assets under management. China’s Shandong province, a province of just under 100 million people, has given a Rmb 100 billion (US$ 16.3 billion) mandate to NSSF to help augment investment returns. [ Content protected for Sovereign Wealth Fund Institute Standard [...]


Two Board Members Step Down from Australia’s Future Fund

Two members of Australia’s Future Fund Board of Guardians have stepped down. Former Suncorp CEO John Mulcahy has finished his term without a replacement being announced, as well as fund veteran Susan Doyle. Australian Finance Minister Mathias Cormann plans to make new board appointments soon.


New Zealand Superannuation Suspends Milford Asset Management

The Guardians of New Zealand Superannuation, the manager of the New Zealand Superannuation Fund (NZSF), has suspended the fund’s mandate with Milford Asset Management, a boutique investment management firm. The firm also manages money on behalf of KiwiSaver investors. The suspension will remain in place until New Zealand’s Financial Markets Authority (FMA) investigation into Milford [...]


Opportunity Cost Model

Wealth Fund Goes With Smart Beta, Industry Expands

Alternative indexing strategies are gaining in popularity among institutional investors such as pensions and sovereign funds. Whether the term is called “smart beta”, “alternative beta” or even “strategic beta”, asset owners such as sovereign wealth funds like the Alaska Permanent Fund have been exploring low-cost factor investing. Resource Guide on Smart Beta TOBAM and WisdomTree [...]


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. ]