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Winning Traits for Sovereign Wealth Investors

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Sovereign wealth funds and other long-term public investors can better the odds of generating high returns by analyzing successful peers and their traits. Many times, sovereign investors can be pulled into bad or lackluster investments by various forces. This is common for U.S. public pension funds as many board members are political appointees. One major trend that many public investors are embracing is the growth of real assets to an investment portfolio. Increasingly, more sovereign wealth funds have grown allocation to real assets such as properties, inflation-protected bonds, timberland, and infrastructure. Real estate is the oldest asset class on Earth. It is tangible, real, and property markets offer a level of protection against inflationary pressures. With Occidental nations printing money offering low yields to investors, many governmental investors are looking for stable cash flowing real estate properties in prime markets. Patient capital is happy to invest in property markets for the medium to long-term. By the end of 2011, the Hong Kong Monetary Authority’s (HKMA) Exchange Fund had HK$ 4.4 invested in institutional real estate. The HKMA engaged with real estate investment managers to seek core real estate assets in major international cities. The HKMA has purchased several key properties overseas with an average rent yield of 5 to 6%.

Even reserve managers are serious about real estate investing; these managers come from central banks which are typically very conservative in their investment selections.

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Why Did Virtus Investment Partners Buy Sustainable Growth Advisers?

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On February 2, 2018, Virtus Investment Partners, Inc. revealed they acquired a 70% interest in Stamford, CT-based Sustainable Growth Advisers, LP, a high-conviction U.S. and global growth equity portfolio management company, from private equity firm Estancia Capital Management and a portion of equity held by the asset manager’s partners (including Sustainable Growth Advisers’ three co-founders). Scottsdale, Arizona-based Estancia Capital Management bought a minority interest in Sustainable Growth Advisers in August 2013 when it had US$ 5.3 billion in assets. Estancia Capital Management is noted for having a number of partners being from Lovell Minnick Partners LLC, a private equity firm specializing in asset management company buyouts.

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HKMA and TRS Participates in Investment in Kakao Mobility

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Private equity firm TPG led a group of investors to acquire a minority ownership stake in Kakao Mobility Corporation, a South Korean taxi hailing service provider. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Meraas Holding Names Former KIO Executive as CEO

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Osama Al-Ayoub, the former CEO and President of the Kuwait Investment Office (KIO), was hired by property firm Meraas Holding to be its chief executive officer. KIO is a London-based unit of the Kuwait Investment Authority (KIA). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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