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The California Public Mega Authority Fund

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Some countries have multiple sovereign wealth funds. Some states have multiple public pension funds. Does it make sense to consolidate these governmental investment authorities to achieve greater economies of scale and be more cost effective? Due to its vast size in terms of geography and population, California is a state that has many different public pension funds and systems. Some public pensions are managed by CalPERS, while others remain independent, like LACERA. There is also CalSTRS, the public teachers’ pension fund. Yes, one can already make the argument that CalPERS is in effect the mega authority fund since it manages a significant portion of public employees’ pensions, but what if it combined with the other major pensions in California? Imagine if all the key pension authorities in California merged into one public mega authority.

In Canada, the Alberta Investment Management Corp and Caisse de dépôt et placement du Québec (CDPQ) are examples of consolidating or offshoring fund management to a central governmental authority. Ontario is one of the exceptions with five major governmental investment authorities. In Australia, there are organizations like the Queensland Investment Corporation (QIC) and Victorian Funds Management Corporation (VFMC) that were created to provide investment management services in a commercially effective and efficient manner.

Organization Billion
CalPERS $225.50
CalSTRS $148.20
LACERA $33.40
Total $407.10
Norway’s SWF $567

Sources: Latest public available sources

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Angolan Government Cancels Port Concession, Reviews Others

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Atlantic Ventures SA, which has ties to Isabel dos Santos (daughter to former Angolan president,) lost its concession rights to construct a US$ 1.5 billion port – the Barra do Dande port – near Luanda. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Egyptian Parliament Passes Draft Law on Misr Fund

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Egypt’s state news agency revealed the country is forming a sovereign wealth fund with initial capital of 5 billion Egyptian pounds, with 1 billion Egyptian pounds of that amount being immediately transferred from the Egyptian public treasury. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Capital Constellation Backs Middle Market PE Platform

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Capital Constellation is the investment platform owned by the Alaska Permanent Fund Corporation (APFC), RPMI Railpen, and Wafra Inc. on behalf of the Public Institution for Social Security of Kuwait (PIFSS). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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