Policy

3 Reasons to Rethink Risk Parity

Seeking to justly capitalize on Modern Portfolio Theory (MPT), risk parity uses the power of leverage to form a diversified portfolio that can generate equity-like returns with using less risk than equities. This alchemist-like strategy aims to construct a well-diversified portfolio that has the highest probability of outperforming cash. At formation, a risk parity portfolio [...]


Sovereign Wealth Funds and Russia

U.S. Treasury Sanctions Russian Direct Investment Fund

The U.S. Treasury has added a number of Russian entities to its sanctions lists. One of the entities is the Russian Direct Investment Fund (RDIF) which partners with other sovereign wealth funds on deals in Russia and abroad. Essentially, the U.S. Treasury’s Office of Foreign Assistance Control (OFAC) on July 30th added the RDIF because [...]


JOIN US: Learn More About Institute Fund Summit 2015 Europe

Register Today Public Fund Registration Here Request an agenda to see the speakers: events@swfinstitute.org Institute Fund Summit Europe 2015 Responsible Investment 26-27 October 2015 Hotel Okura, Amsterdam www.ifsummiteuro.com 6 continents are represented by our current delegates. Learn, network and participate in an interactive forum. As of July 2015, over US$ 4 trillion of capital represented [...]


CELEBRATE: GIC Generates Positive Return for Fiscal Year 2015

Singapore’s GIC Private Limited, one of the country’s sovereign wealth funds, released their annual report. GIC’s 20-year annualized real rate of return was 4.9%, up from last year’s 4.1% 20-year return. The sovereign investor had its best performance since 2005. However, the tone of the annual report echoes other sovereign wealth funds like Australia’s Future [...]


ADIA Appoints Hisashi Kuroda to Head Internal Japanese Desk

The Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, hired Hisashi Kuroda to lead its internal equities department for Japanese equities. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Sitting on Close to $20 Billion in Cash, Future Fund Waits

Australia’s Future Fund has augmented its exposure to cash, getting near the $20 billion mark. The Future Fund is having a challenging time finding enough value in what it sees are overly-priced assets in the marketplace. As of March 30, 2015, the sovereign fund had $17.8 billion in cash – a 15.2% allocation to cash.[ [...]


Temasek’s Ho Ching Extends Sabbatical

CEO and Executive Director Ho Ching of Temasek Holdings has taken the option of extending her part-time sabbatical leave to six months, and will complete her sabbatical in October 2015. Ching will continue with her board duties and specific stewardship duties. She joined Temasek Holdings in 2002 as executive director, becoming CEO in 2004. Ching [...]


Why the Financial Times Deal Commands a Premium

In my opinion, aged financial media assets can be worth more than general news companies. Financial media companies like the Financial Times (FT) market to a more affluent audience that is willing to pay for access, thus subscriber revenue proves to be more sustainable than pure reliance on advertising dollars. Plus, online advertising pays far [...]


Maduell on CNBC: We Estimate Sovereign Wealth Funds Spent $14 Billion in Asset Manager Fees

Sovereign wealth funds utilize external managers for a variety of reasons. 37% of sovereign wealth fund assets are managed externally, according to a recent SWFI estimate. Some US$ 2.755 trillion is being managed by external parties out of a total of US$ 7.367 trillion. 63% of assets are invested directly. Recent direct deals include an [...]


ESTIMATE: Sovereign Wealth Funds Paid Around $14 Billion in Fees

When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional investor classes are sovereign wealth funds which have taken the parochial [...]


Former Alaskan Permanent Fund Chief Passes

The former director of the Alaska Permanent Fund Corporation (APFC) has passed away at the age of 68 in Juneau. Mike Burns retired in June due to health concerns. He served as head of the APFC for more than a decade. Under Burns, the APFC grew dramatically in assets and he oversaw the diversification into [...]


Sovereign Wealth Funds Sticking With Listed Equities

Despite Greece stimulating drama among its people and creditors, Iran and the U.S. striking a nuclear deal, and China’s volatile equity markets, public institutional investors have stuck with listed equities in developed markets. It is true that trends (including SWFI’s own internal research) are showing wealth funds and large U.S. pensions socking more money toward [...]


factor investing growth

ESG Gaining Traction Among Pensions and Wealth Funds

Environmental, social and governance (ESG) factors are increasingly being included in investment mandates. Asset managers are even integrating ESG factors into smart beta strategies. On July 14th, the New Zealand Superannuation Fund (NZSF) announced the appointment of Northern Trust’s international asset management arm to run a Barclays Global Aggregate fixed income mandate, incorporating NZSF’s ESG [...]


Japan’s GPIF Posts Highest Annual Return

Japan’s Government Pension Investment Fund (GPIF) posted its highest return since its formation in 2001. The Japanese US$ 1.15 trillion juggernaut posted an annual return of 12% in the year ended March 31 – generating a profit worth US$ 125.2 billion. The equity allocation has paid off, as Japanese stocks delivered a 30% return for [...]


index investing

CONTAINMENT: Chinese Sovereign Wealth to Buoy Domestic Market

Central Huijin Investment Ltd, a large subsidiary of the China Investment Corporation (CIC), will continue to purchase more exchange-traded funds (ETF) in the Chinese equity markets. Central Huijin also said it would not sell any Chinese equity shares that it owns. On July 8, 2015, the Shanghai Composite fell 8% at market open, eventually closing [...]


CalSTRS Awards Nine Firms to Manager-of-Emerging-Managers Pool

Like many large U.S. pensions, the California State Teachers’ Retirement System (CalSTRS) has an emerging managers program. The US$ 193.1 billion pension giant added nine managers to the emerging managers pool. The managers were chosen from an April RFP issued to replenish an existing pool of managers. Overall, these managers are part of CalSTRS global [...]


Linaburg Talks Climate Change and Institutional Investors at the United Nations

  The leaders of Pacific island nations are voicing their opinion on the negative effects of climate change. Many fear rising sea levels will damage their territorial integrity, economy and livelihood. One of the islands, Kiribati, has one of the oldest sovereign wealth funds in the modern age. UN Secretary-General Ban Ki-moon gave a speech [...]


roads

BDO Appointed as Receiver, LIA’s Lawsuit Moves Forward

The two high profile lawsuits against Goldman Sachs and Société Générale are moving forward after a U.K. justice rule than an interim receiver can represent the Libyan Investment Authority (LIA). The LIA has a combined US$ 3.5 billion lawsuit against the two investment banks which stem from the Gaddafi era. Justice Julian Flaux of the [...]


China Investment Corporation Moves Closer to Top Rankings

The China Investment Corporation released information from their latest annual report. Total assets as of December 31, 2014 were at US$ 746.73 billion, up from around US$ 653 million at the end of 2013. The wealth fund has made a shift pursuing more illiquid assets such as infrastructure in developed economies. The CIC decreased exposure [...]


Mint Asset Management Wins Active NZ Equity Mandate from NZSF

New Zealand-based Mint Asset Management was awarded a NZ$ 150 million active New Zealand equities mandate from the New Zealand Superannuation Fund (NZSF). Mint Asset Management was formed in 2006 and is led by Rebecca Thomas. The other mandate in active New Zealand equities is with Devon Asset Management. The third active New Zealand equities [...]