Connect with us

ADIA’s 20-Year Return from 2014 Creeps Upward

Published

on

The Gulf region is home to a number of massive sovereign funds, due to its abundance of oil and natural gas resources. The Abu Dhabi Investment Authority (ADIA) published its 2014 annual review, documenting its investment strategy and external manager selection process. ADIA’s 20-year return for 2014 crept up to 7.4% from 7.2% in December 2013. There were no changes in its targeted allocation ranges both in asset classes and geography. The proportion of ADIA’s assets managed by external fund managers dropped to 65% from 75%. This is a reflection of ADIA’s push to manage a greater proportion of assets in-house, especially in areas such as real estate and infrastructure.

View the Asset Allocation of the Abu Dhabi Investment Authority

Despite setbacks in 2014 emerging market equity performance, ADIA still believes in the long-term viability of these markets. In the 2014 annual review, ADIA Managing Director Hamed bin Zayed Al Nahyan Managing Director penned, “The most important of these, and one we have discussed in previous years, is the growing importance of emerging market economies. Despite evident stresses that appeared last year in several of these countries, we see grounds for optimism: China’s government continues to improve its economic governance and prepare for a wider role in global capital markets. New leadership in India has signalled a renewed commitment to reform and modernisation of the economy.”

ADIA’s New 2014 Mandates

In 2014, ADIA formed two new mandates in equities. The first mandate was the creation of an internal U.S. equities department. In May, ADIA hired John Pandtle to the newly-formed role of head of the U.S. within its internal equities department. The other is a department called high conviction. Some characteristics of high conviction strategies are: less portfolio turnover, concentrated portfolio and high active share (holdings are different from benchmark). In addition, ADIA made modifications to its operating model, giving enhanced flexibility for external managers to pursue alpha that may not easily be captured within the structure of ADIA’s strategic neutral benchmark, or policy portfolio. This new model is for skilled external managers who seek outperformance within approved limits.

CPPIB Tries Out CLO Equity Tranche Investing with Sound Point Capital

Published

on

Canada Pension Plan Investment Board (CPPIB) through its wholly-owned subsidiary, CPPIB Credit Investments Inc. (CPPIB Credit), is broadening its portfolio through new investments in equity tranches of collateralized loan obligations (CLOs) alongside experienced CLO asset managers. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

CalPERS Names Yu Ben Meng as Chief Investment Officer

Published

on

The California Public Employees’ Retirement System (CalPERS) announced that Yu Ben Meng has been selected as the pension fund’s new chief investment officer (CIO). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Ontario Nonprofit Network Awards Mandate to OPTrust

Published

on

The Ontario Nonprofit Network (ONN), a nonprofit network for the 58,000 nonprofits in Ontario, selected OPTrust to manage defined benefit assets. ONN selected OPTrust Select, the new defined benefit solution from OPTrust. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.