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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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CIC Sells 10% Logicor Stake to Blackstone Fund

The China Investment Corporation (CIC) is selling a 10% stake of in European warehouse firm Logicor Ltd to a real estate fund managed by The Blackstone Group. Furthermore, CIC also hired Blackstone to oversee and manage Logicor’s warehouses and logistic properties portfolio.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Fintech Affirm Raises $200 Million in Series E Led By Singapore’s GIC

Affirm Inc., a financial technology firm which provides instant loans to consumers as an alternative to credit cards for their online shopping, has raised US$ 200 million in a Series E round lead by Singapore’s GIC Private Limited, with participation from Khosla Ventures, Lightspeed Venture Partners, Spark Capital, Caffeinated Capital, and Ribbit Capital. The new infusion of capital brings the San Francisco-based company’s total funding to US$ 450 million and a reported valuation of US$ 2 billion.

The company is founded by Max Levchin, a co-founder of PayPal (part of the PayPal mafia, dubbed by the tech press). Max Levchin is also an advisory board member of the Consumer Financial Protection Bureau (CFSB) in the United States.

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CHANGE: Saudi Arabia to Re-Open Movie Theaters, PIF Inks MoU with AMC

The Saudi Arabian government is ending its 35-year ban on cinemas. Next year, the government will allow cinemas to open. This watershed moment provides opportunities for entertainment companies to invest in Saudi Arabia and the surrounding region.

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