Weekend Giant Reading: April 3 – 5, 2015

Here now, the news.


Andrew Harrer

Here now, the news:

- Puzzler: Can one country’s SWF invest in another country’s SWF? The Kuwait Investment Authority is apparently trying to do just that in Italy.

- Assets Formerly Under Management: In the month of March, Russia’s two main sovereign funds were reportedly down $9.5 billion. There must be a long line at the handout counter ...

- Diversification: China’s third major sovereign wealth fund, the National Social Security Fund, received approval from the country’s State Council for its planned diversification into new asset classes. Up next: Figuring out a way to add new asset classes without having to go all the way to the State Council for approval!

- Offshore Finance: The UK’s Green Investment Bank closed £463 million for its new offshore wind fund. The Abu Dhabi Investment Authority is participating.

- Fee Machine: NJ is trying to defend a lack of full transparency on fees paid to its alternatives managers. It should take comfort in the fact that 95% of pensions have no clue what fees they are actually paying ... (the asset managers sure take comfort in that fact!)


- Peak PE: Texas Teachers has increased its allocation to KKR and Apollo to $10 billion.

- Consolidation: China’s Shandong Province will outsource the management of its $16 billion in social security assets to the National Social Security Fund. Smart.

- Risk Free Returns: ATP has cut costs and maintained performance. Last I checked, that’s free alpha.

- SDFs: Senegal’s sovereign fund FONSIS, which exists, will take control of Senegal Airlines to prevent the latter’s collapse.

- Confirmation: Today’s new research shows - after tracking allocations for 25 years - that pension funds herd. Tomorrow’s new research will show the earth is spinning.

- Direct Investing: According to the China Investment Corporation’s boss, “We’ve drawn lessons from our international peers and formed CIC Capital to boost in-house investment ...”

- Platforms I: Kuwait Investment Authority is teaming up with Spain’s Gas Natural to fund growth.

- Platforms II: China Investment Corp is partnering with a domestic steel maker to fund overseas expansion and operations.

- Corporate Engagement: AustralianSuper, First State Super and UniSuper are teaming up on corporate pay packages.

- Ports: Oman’s State General Reserve Fund is co-investing with Vietnam’s State Capital Investment Corporation via Vietnam Oman Investments in the Hai Phong Port deal.

Have a great weekend!