Connect with us

Sovereign Wealth Funds Pursue Institutional Real Estate

Published

on

Ever since the end of 2010, direct sovereign wealth fund transactions in institutional real estate have risen. Larger sovereign funds tend to take on direct investment opportunities, while public investors under US$ 30 billion in assets rely heavily on real estate funds. Sovereign wealth funds with renewed confidence are investing directly into core real estate, creating competition among pension funds, REITs and real estate fund managers. Quantitative easing has demolished interest rates, making real estate assets particularly attractive. Risk-averse sovereign funds favor major European and American cities in prime markets, especially when investing without real estate fund managers.

Sovereign wealth funds are enhancing allocation to real estate.

Traversing up the risk spectrum, some sovereign wealth entities like Qatari Diar have mandates to partake in co-investment developmental projects. CityCenterDC and Hudson Yards are two major developmental projects in the Eastern United States where Gulf government investors have allocated capital.

Direct Sovereign Wealth Fund Transactions – Real Estate – Billions in USD – Click to Enlarge Graphic
SWFTD_RE_June2013
Source: Sovereign Wealth Fund Transaction Database

According to data from the Sovereign Wealth Fund Transaction Database, 2012 was a noteworthy milestone for direct sovereign fund real estate transactions touching US$ 15.13 billion. Norway’s Government Pension Fund Global had a major impact on the figure, choosing to go direct versus allocating purely to commingled real estate funds.

2013 results are over US$ 5 billion so far.

White House Nominates Heath Tarbert for CFTC Chairman

Published

on

The White House announced Heath P. Tarbert will be nominated to serve as Commissioner and Chairman of the Commodity Futures Trading Commission (CFTC). Tarbert currently serves as Assistant Secretary for International Markets at the U.S. Treasury Department. Before joining the U.S. Treasury, Tarbert was a Partner at law firm Allen & Overy. Tarbert was confirmed by the U.S. Senate for his current Treasury post at 87 (yes) to 8 (no).

Upon Senate confirmation, Tarbert’s CFTC term would start on April 14, 2019 and last for five years. Tarbert is taking over from J. Christopher Giancarlo whose term ends in April 2019. Tarbert will need a U.S. Senate confirmation to take the head CFTC post.

Continue Reading

KIA Could Sell Stake in North Sea Energy Business

Published

on

The Kuwait Investment Authority (KIA), through its unit Wren House Investment Management, is nearing a deal to sell a 40% stake in its North Sea energy business to JPMorgan Asset Management. In July 2018, KIA closed on a deal to acquire oil and gas pipeline firm North Sea Midstream Partners from ArcLight Capital.

More details to follow –

Continue Reading

Pensioenfonds PGB Hires BMO Global for Equity Protection Strategy

Published

on

Pensioenfonds PGB is a Dutch multi-sector pension fund. PGB awarded a mandate to implement a protection strategy for its €12 billion equity portfolio to BMO Global Asset Management. PGB is a €26.5 billion fund. PGB has been using BMO Global’s responsible engagement overlay since 2017.

The Chief Investment Officer of PGB is Harold Clijsen.

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.