Happy holidays, everybody. Heres some of the big stories from the past month or so for your reading enjoyment. Ive also overlaid some research papers to give you deeper context as to why these stories are interesting.
- From Paris To Toronto: As long-term investors from around the world gathered in Paris to commit to investing in resource innovation and clean energy, the Canadian pensions were noting a significant oil & gas buying opportunity and upping their investments. Toronto is clearly on a different wave length than Paris. (And heres why they shouldnt be.)
- Peer Collaboration: China and the UAE are launching a $10 billion Joint Investment Cooperation Fund to be managed by Mubadala, the China Development Bank and SAFE. (Heres why this form of peer collaboration makes sense.)
- Blissful Ignorance: CalPERS big plan to uncover any and all types of types of fees, carry, discounts, rebates and/or any other forms of economic rent has been . . . scrapped. Huh? Why? Apparently, the fund does not want to alienate the very people who are over-charging them. Personally, I tend to agree with the trustees views: I have to question why we would want to enter into any agreement with somebody who says, Im reserving the right to charge you fees that Im not going to tell you about. Yup. Dear CalPERS: Read this.
- New SWFs: This just in: The Bahamas is setting up a new sovereign wealth fund! Alright, fine, Ill take one for the team and offer to come down and help the Bahamian government get this new vehicle set up . . . preferably in January or February. (Heres where we might start.)
- Old SWFs: Swedens AP funds got some remarkable news early this month when they found out that a big percentage of the people working at these funds would not, as expected, be fired. Indeed, the government decided it wont be shutting down any of the AP funds after all. Phew.
Rajiv Sharma and I have released our latest in a series of sleep aids to help all you insomniacs out there. This one is called, Social Capital and Building An Institutional Investors Collaborative Network. In it, we try to develop novel, and less resource intensive, mechanisms to help Giants overcome the barriers to efficient long-term investment and aligned access to private markets.
See you in 2016!