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Winning Traits for Sovereign Wealth Investors

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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Former U.S. Treasury Secretary Jacob Lew Joins Lindsay Goldberg

New York-based buyout firm Lindsay Goldberg LLC has announced that Former U.S. Treasury Secretary Jacob J. Lew will join the company as a partner focusing on investments across sectors, institutional relationships, and firm management, according to an announcement released on Monday, November 20. Lindsay Goldberg is a private equity firm co-founded by Alan E. Goldberg and Robert D. Lindsey, both veterans of Morgan Stanley in which they worked in the Transaction Development Group.

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San Diego City Employees Retirement System to Reduce PE and Infrastructure for FY 2018

The San Diego City Employees’ Retirement System plans to reduce annual commitments to private equity and infrastructure down to US$ 75 million for fiscal year 2018. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Institutional Investors Remain Skeptical as Bitcoin Continues to Rise

Bitcoin has continued to rally over the past month – hitting a record US$ 8,224 in the early hours of November 20 – and institutional investors are beginning to take notice of the cryptocurrency’s increasing popularity. With a market value of more than US$ 130 billion, the digital currency has seen unprecedented growth of over 700% over the past year. But Bitcoin’s rise has also been marked by a number of volatile slumps, leaving institutional investors divided over its durability as a long-term store of value and wondering whether to get in on the action. Despite these headwinds, more than 100 hedge funds have been formed to trade in digital currencies.

Split Consensus on Wall Street

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