Policy
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. Investment banks such as Citigroup have informed clients that European equities will positively perform in 2015. Citigroup analysts raised its 2015 [...]


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, [...]


US DOJ Probes Banks on Price-Rigging Precious Metals

After nailing a number of bulge-bracket financial institutions for interest rate and foreign currency market price manipulation, U.S. regulators and prosecutors are taking aim at the world of precious metals pricing. In many circumstances, too avoid long drawn out court room showdowns, banks typically reach financial settlements with Western regulators. The U.S. Justice Department (DOJ), [...]


Norges Bank Investment Management

Norway’s Sovereign Wealth Fund Makes Case for External Managers

  Norges Bank Investment Management (NBIM), manager of Norway’s sovereign wealth fund, has countered an article written by Dagens Næringsliv, a Norwegian business media source, which published on February 18, 2015. 4% of Norway sovereign wealth fund assets are managed by external managers, a lower proportion compared to many sovereign wealth funds and large pensions. [...]


Introduction to Factor-Based Investing

This article is sponsored by S&P Dow Jones Indices. For decades investment portfolios have been constructed from a combination of cap-weighted index funds and active funds. Cap-weighted index funds allow investors to acquire the market portfolio in a simple, transparent, and cost effective manner. By contrast, active funds promise higher returns at the cost of [...]


Public Release – 4Q 2014 Linaburg-Maduell Transparency Index Ratings

The fourth 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. Angola’s sovereign wealth fund was added to the transparency index. After reviewing, FSDEA received a score of 8. Mumtalakat [...]


China’s Securities Regulator Issues 10 New RQFII Licenses

The China Securities Regulatory Commission (CSRC) has announced 10 new renminbi qualified foreign institutional investor (RQFII) licenses. Fullerton Fund Management, a sovereign wealth enterprise of Temasek Holdings, received its RQFII license in the summer of 2014. An RQFII license is more flexible than a QFII license. The Qatar Investment Authority (QIA) got its RQFII license [...]


Is Harvard’s Endowment Just a Stepping Stone?

Greenwich-based Tudor Investment Corporation is one of many asset managers capitalizing on Harvard’s endowment exodus of professional investment managers. Emil Dabora, who was managing director and head of developed equity markets at Harvard Management Company (HMC), was hired to fill the newly-created position of global event-driven equity strategy at Tudor Investment. Dabora will be located [...]


RDIF and Egypt Sign Investment Cooperation Agreement

Egypt is the most populous country in the Arab world and a major importer of grain. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


17 Great Investor Quotes

Institutional investors constantly face countless choices when it comes to allocating capital. Below are 17 insightful and interesting quotes from investment gurus selected by SWFI staff. “While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.” – Seth [...]


World’s Largest Pension Investor Hires 4 Equity Managers

Japan’s Government Pension Investment Fund (GPIF) has been steadily augmenting exposure to public equities. The elephantine asset owner hired four active equity managers. Three are domestic active mandates and one is an international active mandate. GPIF looked to address its high allocation to passive equity investments. In October 2014, the pension fund publicly acknowledged it [...]


Norway’s Sovereign Wealth Fund Sheds More Coal Mining Companies

Norges Bank Investment Management (NBIM), the investment manager of Norway’s Government Pension Fund Global, released a report on its work on responsible investments. The report also covered how the sovereign wealth fund would interact with listed companies during shareholder meetings. The assets under management of the commodity-based sovereign wealth fund have grown dramatically, reaching well [...]


$30 Billion Reasons, Qatar Sovereign Fund Goes Big on America

The Qatar Investment Authority (QIA), not shying away from falling oil prices, is pushing ahead to expand overseas investments. According to SWFI’s proprietary Sovereign Wealth Fund Transaction Database, as of January 30, 2015, the QIA ranks in the top 8 of sovereign funds with regard to total transaction amount of direct investments. Other sovereign funds [...]


Merck Sued by Sovereign Fund and Other Investors

Merck & Co., the second biggest U.S. pharmaceutical company, is being sued by a number of large institutional investors who opted out of a class-action securities lawsuit certified by a judge in January 2013. By opting out of the class action, these institutional investors are pursuing their own claims. [ Content protected for Sovereign Wealth [...]