Connect with us

Sovereign Wealth Funds Sticking With Listed Equities

Published

on

equities

Despite Greece stimulating drama among its people and creditors, Iran and the U.S. striking a nuclear deal, and China’s volatile equity markets, public institutional investors have stuck with listed equities in developed markets. It is true that trends (including SWFI’s own internal research) are showing wealth funds and large U.S. pensions socking more money toward alternative investments like real estate and infrastructure. Sovereign wealth centers on having a long-term point of view. However, many of these mammoth-like investors such as the Abu Dhabi Investment Authority (ADIA) and Norway’s Government Pension Fund Global (GPFG) are on top of the food chain when it comes to finding real estate assets. Their investment philosophies tend to be more “patient” than other types of public funds.

Not so long ago, investors shrugged off European equities.

Japanese Equities Shine

More annual reports are being published as July ends. Some of the top performing asset heavy pensions and sovereign funds had a unique trait – allocation to U.S. and European listed equities. With slow steady growth, floor-like interest rates and a strong dollar, institutional investors who allocated to equity markets like Japan have prospered in the past twelve months. Japan’s Government Pension Investment Fund (GPIF) had a record 12% return for their latest fiscal year in which they allocated a significant chunk to Japanese equities. GPIF also hired their first chief investment officer, appointing Hiromichi Mizuno back in November 2014. The pension giant has been working on their asset allocation plans for quite some time, aiming to keep on the path of increasing their equity exposure.

Not so long ago, investors shrugged off European equities. That was until QE policy helped provide jolts to the European capital markets. Wealth funds have augmented ownership stakes in European listed companies, specifically companies that are multi-national. According to the Sovereign Wealth Fund Transaction Database, in the first half of 2015, Singapore’s GIC purchased over US$ 150 million worth of shares in Tesco and over US$ 180 million worth of shares in BHP Billiton.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

SWFI First Read, September 19, 2018

Published

on

QIA Eyes Investment in Chinese Lender Lufax

The Qatar Investment Authority (QIA) is in talks about a possible investment into Shanghai-based Lufax, one of China’s largest online lenders. The seller of the possible stake is China’s Ping An Insurance (Group) Co. Ltd. Lufax’s official name is Shanghai Lujiazui International Financial Asset Exchange Co. Ltd.

Wealth Funds Back Hotpot Giant

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Japanese Government Capital Provides Initial Life for Texas Bullet Train

Published

on

Dallas-based Texas Central Partners, LLC is the developer of a proposed high-speed rail system, dubbed the Texas Bullet Train, between Dallas and Houston. Project costs are estimated between US$ 12 billion to US$ 15 billion. The developer secured US$ 300 million in project loans from Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) and the Japan Bank for International Cooperation (JBIC). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

DOJ Investing Tesla Over Musk Comments

Published

on

The U.S. Department of Justice (DOJ) is conducting a fraud investigation over Tesla as its CEO Elon Musk made public statements on twitter. This is a criminal probe. In addition, earlier, SWFI reported the U.S. Securities and Exchange Commission (SEC) is conducting a civil inquiry into Elon Musk regarding his statements.

This all surrounds Musk tweeting in August that he was thinking of taking Tesla private and had “funding secured” for the transaction. Both government authorities are seeing if Musk misled investors and violated federal securities laws with his public statements.

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.