Weekend Giant Reading: February 5 – 7, 2016

Welcome to the weekend, everybody.


Welcome to the weekend, everybody. Here now, the news:

- Fee Schematics: Adopting the new ILPA private equity fee reporting template is, I believe, a no brainer. Here’s one view from CIO magazine that really resonates with me: “Frankly, I think getting to the bottom of where all those costs and fees are being hidden so that [limited partnership agreements] can be negotiated from a position of mutual understanding is important,” Monk continued. “Right now we’re negotiating agreements with too much gray and we’d much rather see those gray areas defined in black and white so that everybody knows exactly what incentives are being created.” Mmmmm. I just really agree with that perspective.

- No Games: The China Investment Corporation staff is being rebuked for . . . playing golf. It is a slippery slope. One day you’re playing golf with your local managers — building a deeper relationship of trust — and the next, you’re stealing billions from taxpayers. I mean, you don’t see people like the U.S. president ever playing golf to get business done do you? Oh, wait. You do? Never mind.

- Shooting Lights: As some Giants lost big sums of money last year, Denmark’s ATP returned 17.5%! The CEO of ATP had this to say between hysteric bouts of laughter and high fives with staff: “We are very pleased.” Yeah, dude. I bet.

- Musical Chairs: Long-time friend of the show, Adriaan Ryder, is leaving Brisbane’s QIC for Abu Dhabi’s ADIC. My view: That’s a big coup for ADIC!

- Loansanity: This is so sad: 55% of American households in their 20s have student debt worth, on average, $31,000. The negative implications and distortions stemming from these loans are plentiful. And now let’s add retirement insecurity to the mix. Sigh.


- Impropriety: This 1MDB scandal continues to spiral. Last week Singapore seized bank accounts over rumors of money laundering, while Switzerland said it had evidence the Malaysian SWF misappropriated SOE funds. Not good.

- Asset Growth: Malaysia’s EPF has reportedly dropped its contribution rate down a few ticks. By my estimation, this makes Australian Super the fastest growing investment organization on earth. Kudos.

- This Just In: The Abu Dhabi Investment Authority has decided not to panic and will carry on investing money like normal. Nothing to report, according to reporter.

- New SDFs: Kuwait is planning a new $100 billion sovereign development fund, which will relieve the Kuwait Investment Authority of all domestic strategies.

- Scale: According to UK Department of Obviousness, pooling and scaling UK pensions will save hundreds of millions in fees.

Have a great weekend!