Archive | December, 2014

Michael Maduell – Bold Predictions for 2015

The end of the year is a fantastic time for lists, rankings and predictions. If 2014 proved anything, it’s that guessing what’s going to happen in the world of asset owners is a vain and even slightly embarrassing endeavor. Indeed, who could have expected that sovereign wealth funds would reach US$ 7 trillion in assets, […]


George Washington University Appoints Strategic Investment Group for OCIO Mandate

Increasingly, university endowments are outsourcing investment functions that were traditionally performed in-house. According to the National Association of College and University Business Officers (NACUBO), 10% of colleges and universities with a minimum of US$ 1 billion in assets outsourced investment functions for their endowments in 2013. George Washington University has been searching for an outsourced […]


National Welfare Fund Transfers 100 Billion Rubles to VTB Bank

Russian Prime Minister Dmitry Medvedev has authorized the transfer of 100 billion rubles (US$ 1.8 billion) from the National Welfare Fund (NWF) to boost the capital of VTB Bank. The first aid tranche NWF order was signed on December 27th. The funds have been placed into a subordinated deposit to fund Russian-backed infrastructure projects. VTB […]


Top 10 Largest Sovereign Wealth Fund Direct Deals for 2014

According to SWFI’s proprietary Sovereign Wealth Fund Transaction Database, Asian and Gulf-based sovereign wealth funds are the biggest SWF spenders when it comes to private direct deals in 2014. Other notable public institutional investors who rank near the top, based on transaction value, include Caisse de dépôt et placement du Québec (CDPQ) and Canada Pension […]


OTPP to Boost Birmingham Airport Holding

Toronto-based Ontario Teachers’ Pension Plan (OTPP) plans to augment its interest in Birmingham Airport (United Kingdom) to 48.25%. OTPP acquired a 19.25% stake in the airport from Victorian Funds Management Corporation (VFMC), a superannuation funds manager. A long-term investor indeed, OTPP made its initial investment in the airport in 2001. The pension investor boosted its […]


4 Horrible Performing Investments for Institutional Investors in 2014

As Santa Claus sprinkles down bow-tied gifts on U.S. stock market investors, not all was well for investors in 2014. The equity capital markets laid traps for institutional investors. At times, even the “smartest minds” in investing make serious errors when allocating assets. For example, the AllianceBernstein All Market Real Return Portfolio, which actively shifts […]


superannuation

Infratil and New Zealand Superannuation Fund Set to Buy RetireAustralia

New Zealand Superannuation Fund (NZSF) and Infratil Limited, through a 50:50 jointly-owned consortium, are acquiring a 100% interest in Brisbane-based RetireAustralia, the largest privately-held pure-play operator of retirement living in Australia. NZSF and Infratil will each own 50% of RetireAustralia. The deal is expected to close December 31, 2014. The transaction value is A$ 640.2 […]


Saudi FinMin Says No Need for Sovereign Wealth Fund

Saudi Arabia’s Finance Minister Ibrahim Abdulaziz Al-Assaf said there was no need for the country to create an official sovereign wealth fund to manage its oil reserves. The vast pool of petrodollars are managed by the Saudi Arabian Monetary Agency (SAMA), the Kingdom’s central bank. The majority of those assets are in liquid securities. The […]


Friday SWFI News Roundup, December 26, 2014

Pension Protection Fund Allocated $400 Million to Energy PE Funds More pension funds are committing to energy private equity funds. London-based Pension Protection Fund has given mandates to three private equity managers to run energy plays. The £16 billion pension fund allocated up to US$ 400 million to be divided among, EV Energy Partners (EnerVest), […]


Sovereign Wealth Centers on 3 Major Infrastructure Deals

Sovereign wealth funds are honing in on some major infrastructure deals. The UK government’s stake sale in Eurostar has lured two cash-rich Asian sovereign wealth funds to the table. Eurostar, a high-speed rail operator, connects London and Paris through the Channel Tunnel as well as Brussels. The China Investment Corporation (CIC) and Singapore’s GIC Private […]


Nebras to Mull Over Massive $14 Billion Energy Project in Turkey

Energy-hungry Turkey is embedded with geostrategic benefits, bridging Asia, Europe and the Middle East. However, Turkey’s growing economy and population demands greater power generation capacity and distribution. Turkey also wants to limit energy imports, being heavily reliant on gathering foreign sources of oil, natural gas and hard coal. Doha-based Nebras Power Company, backed by Qatar […]


hedge funds

Our Hand-Selected 12 Popular SWFI Stories for 2014

The punctilious editorial staff of SWFI hand-selected 12 popular stories that have garnered high-traffic and social shares. Here is a roundup of 12 popular articles from this year. #1. 5 Things Sovereign Wealth Funds Won’t Tell You Sovereign wealth funds constantly make news headlines, buying infrastructure in the UK, acquiring a tech company with a […]


PennPSERS Awards Energy and Commodity Fund Mandates

The Pennsylvania Public School Employees’ Retirement System (PennPSERS) awarded a combination of three energy and commodity mandates. PennPSERS has awarded PIMCO an initial investment amount of US$ 200 million for PIMCO Commodity Alpha Fund Ltd. This PIMCO commodity fund will focus on market neutral, relative-value commodity strategies, using bottom-up fundamental analysis. The fund has capacity […]


SWFI Trend Report: Sovereign Wealth Fund Direct Healthcare Investments, 2013-2014

With Occidental nations growing older, increased costs in U.S. healthcare and consumer adoption of medical services in emerging markets, institutional investors have been allocating to this complex sector. Sovereign wealth funds have directly invested significant amounts of capital into the healthcare sector, not just in the U.S. and Europe, but toward Asia and the Middle […]


OTPP and PSP Investments Buy Into Santander Renewable Portfolio

Ontario Teachers’ Pension Plan (OTPP) and the Public Sector Pension Investment Board (PSP Investments) are jointly acquiring a portfolio of renewable energy and infrastructure assets from Banco Santander, S.A. The assets being sold by Santander will be moved to a new company equally owned by: Banco Santander, OTPP and PSP Investments. Marcos Sebares will be […]


Sovereign Wealth Funds and Russia

Russia Analyzes Diminishing Options, Institutional Investors Brace

The Kremlin is embarking on a series of measures to counter inflation and rapid currency devaluation. The rapid fall in oil prices, coupled with Western sanctions have crippled Russia’s economy and put massive strains on its economic system. Meanwhile, oil and metal conglomerates have been hoarding hard currency. To counter this trend, Russian government officials […]


First Xiaomi, Could Snapchat Be Next for Sovereign Wealth Funds?

Institutional investors are plowing money into mobile startups, eager to gain exposure in a growing world population becoming heavily reliant on mobile devices. China smartphone manufacturer Xiaomi raised just over US$ 1 billion in capital from investors that include, Hopu Investment Management Co., Singapore’s GIC Private Limited, Russian investment firm DST Global and Yunfeng Capital […]


Why Financier Wilbur Ross Loves Ireland

Turnaround financier Wilbur Ross, Jr., through WL Ross & Co., in June 2014 sold its remaining shares in the Bank of Ireland Plc. WL Ross & Co., Toronto-based Fairfax Financial Holdings Ltd., and three unnamed investors invested €1.1 billion, essentially 10 cents per share, for a 34.9% stake in Bank of Ireland back in 2011. […]


The Landscape of Risk

This article is sponsored by S&P Dow Jones Indices. Risk is a complicated thing, and S&P Dow Jones Indices’ experience supporting the VIX® series of volatility measures, its continued work in the arena of low-volatility indices and its conversations with clients regarding risk reduction techniques continue to reveal new things about the way markets and […]


Exclusionary Powers over Sovereign Fund Migrates from MoF to Norges Bank

The Norwegian Parliament, Stortinget, proclaimed that on January 1, 2015, Norges Bank, the central bank of Norway, will be the decision-making authority in matters concerning observation and exclusion of companies from the sovereign wealth fund. This power is being migrated from Norway’s Ministry of Finance. Thus, the Council of Ethics will advise Norges Bank. However, […]