This content is from: Corner Office

Weekend Giant Reading, June 27 — 29, 2014

Here's what been happening down on the Avenue of Giants.

Here now, the news:

- Super Returns: Alberta's Heritage Fund (i.e., AIMCo) had a much better year than anticipated. Good work, team.

- Outposts: Temasek's new NYC office is its 10th overseas office and outpost.

- In-Sourcing: Tesco continues to in-source pension assets and wants bigger, concentrated bets that truly impact returns.

- New SWFs: Meanwhile in Zimbabwe, a Bill for the establishment of a new SWF is under consideration. (Because when you think of Zimbabwe, you immediately think "wealth.")

- Extreme Makeover: India is working to make itself more attractive to SWFs globally.

- Seeding: The interesting thing in this story on CPPIB doing Indian infra is this new CPPIB Singapore Holding I; it would appear that CPPIB is seeding funds in its own name around the world. I assume this is to allow for competitive compensation arrangements (i.e., carry).

- Ethics:According to the NZSF, "...issues such as inequality should now be front-and-centre with all financial decision-making." That's long-term thinking.

- AuM: North Dakota’s Legacy Fund hit $2 billion in April and is projected to hit $3 billion by July 1, 2015.

- Here-say: A UK newspaper reported that UK bankers say that the UK is the best place for SWFs to invest. Obviously this is true...

- Nigeria: The new NSIA has had a few good quarters in a row, which may mean more assets from the government for the new SWF to manage.

- Hiring: CalPERS has released a profile of what it wants from its next CIO.

- Endowments: Yale and Stanford both significantly underperformed the S&P over past three years. It's too bad, but at least they didn't pay outrageously high fees in the proce... Oh really? They did? Never mind. Sigh.

- Diversified: Norway's SWF recognizes there are costs to over-diversification; will double the companies it owns large stakes in. (About time!)

- The Juice: Public pensions are adding a bit of leverage to juice returns. While interesting, it's not a new strategy. Ontario Teachers (and others) have been doing this for ages.

Have a great weekend!

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