The NZ$ 23 billion (US$ 19.26 billion) New Zealand Superannuation Fund (Fund) released its 2012/2013 annual report today, and there are a few highlights.
For starters, the management team under CEO Adrian Orr achieved a record return for the Fund of 25.83%. Since the New Zealand Superannuation Fund began investing in September of 2003 it has returned 8.84% (after costs, before taxes), and it has surpassed its passive reference portfolio benchmark by 1.14% or NZ$ 2 billion.
As a nod to their long term mission, Chairman Gavin Walker said the Fund, “remained committed to a long-term, contrarian investment strategy that was strongly weighted to growth assets.”
The report itself has also gone through some changes as the Fund has matured. “This year, for the first time, we have also disclosed the value of each of the Fund’s investments with external asset and investment managers, and the percentage each of these investments makes up of the total Fund,” said Mr. Orr in a statement. This move for increased transparency in sovereign wealth funds is on the rise particularly among members of the International Forum of Sovereign Wealth Funds, of which Mr. Orr has recently been named deputy chair.
Reference Portfolio – New Zealand Superannuation Fund [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
Atlas Merchant Capital LLC and Singapore’s GIC Private Limited acquired just under a 25% equity stake in Dresher, Pennsylvania-based Ascensus, the largest independent recordkeeping services provider, third-party administrator, and government savings facilitator in the United States. San Francisco Genstar Capital LLC and New York-based Aquiline Capital Partners LLC were the sellers of the shares in Ascensus and will maintain control over the company.
Atlas Merchant Capital LLC was founded by Bob Diamond and David Schamis. Diamond is the former group chief executive of Barclays plc.
GIC is an investor in Alight Solutions, a provider of human capital solutions.
Barclays acted as the lead financial advisor and J.P. Morgan acted as financial advisor to Ascensus in connection with this transaction. Willkie Farr & Gallagher LLP acted as legal counsel to Ascensus.
Debevoise & Plimpton LLP acted as legal counsel to Atlas Merchant Capital and Sidley Austin LLP acted as legal counsel to GIC.
In 2015, JC Flowers sold Ascensus to Genstar Capital and Aquiline Capital Partners.
The Value of Research: Skill, Capacity, and Opportunity
This article is sponsored by S&P Dow Jones Indices.
How much should a portfolio manager be willing to pay for research? The question is of importance to any manager, but has become particularly pertinent since newly imposed European rules require that the costs of investment research—previously offered by many investment banks as an in-kind consideration in return for brokerage business—be unbundled from trading.
Unfortunately, attempts to determine a fair value for research in the most general circumstances are doomed to fail. Even if we only consider direct recommendations to buy or sell certain securities, the value of such recommendations to a portfolio manager will vary according to the absolute size of positions taken in response. Instead, we provide a framework for estimating relative research values across markets and constituents, under certain stylized (but reasonable) assumptions.
REPORT: The Value of Research: Skill, Capacity, and Opportunity
Malaysia’s Khazanah Nasional Berhad is prepping to declare more than 1 billion MYR in a dividend payout to the Malaysian government for 2019. Khazanah Nasional is undergoing a significant strategy shift to focus more on domestic assets, while selling off venture tech investments, overseas real estate, fund investments, and other non-strategic assets. The wealth fund also plans to scale back its overseas presence in markets such as San Francisco and London.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
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