Global SWF

The rise in the value of the #yen and poor performance in domestic equities has delivered #Japan's gigantic Government Pension Investment Fund (GPIF) its biggest quarterly loss since the pandemic struck in 2020 with a return of -3.6%. Positive returns in foreign bonds and equities were wiped out by exchange rate effects, but the trend could hasten the fund’s move to diversify its portfolio beyond the US and also into alternative asset classes. Global SWF examines the Japanese pension giant's performance and its latest moves in private equity and unlisted infrastructure: https://lnkd.in/ey5N-vnK

Saudi Arabia’s Public Investment Fund (PIF) is taking a majority stake of the Middle East’s biggest broadcaster, Middle East Broadcasting Company (MBC), which was originally nabbed by the government's Istidama Holding in the palace purge that was staged exactly seven years ago today. Istidama also gained control of a 36.22% stake in construction company Saudi Binladen Group (SBG), which may also be transferred to PIF in the near future. Global SWF provides background into the acquisition and assesses the likelihood of a takeover of the stake in SBG, which is a key partner in PIF's Vision 2030 gigaprojects: https://lnkd.in/es_KXFeB

Happy November! Our client newsletter is very thorough this month, as we cover all the bonds issued by sovereign investors, a comparison of the performance of US-based SWFs vs PPFs vs endowment funds, and the Latin American landscape. In that context, we were delighted to speak with the Chairman of the Board of Trinidad and Tobago's Heritage and Stabilisation Fund (HSF), Mr. Ewart Williams, and with the Deputy Governor of the Central Bank of Trinidad and Tobago (CBTT), Dr. Dorian Noel, Ph.D, CAIA. Don't miss the fascinating conversation, which can be accessed openly in the link below 👇🏻 https://lnkd.in/guu4KcJg

Abu Dhabi government-owned investor CYVN Holdings is set to buy British supercar manufacturer McLaren Group from Bahrain’s sovereign wealth fund Bahrain Mumtalakat Holding Company ("Mumtalakat"), adding to its automotive-oriented portfolio that includes Chinese electric vehicle producer NIO. Bahrain’s Mumtalakat took full control over McLaren in March, acquiring the 40% it did not already own. McLaren was badly hit by the pandemic and slashed hundreds of workers in a restructuring effort, but since the Bahraini state-owned investor acquired the entire company results improved considerably in H1 2024. McLaren is looking to transition to the electric car era but despite capital raising efforts, it was hit by delivery delays on its new Artura hybrid supercar as it sought to implement upgrades. More EV models are planned as it pushes towards an all-electric future for its mainstream vehicles by 2030. CYVN's support could be crucial to that transition. Global SWF takes a closer look: https://lnkd.in/e7WPFxu9

As Saudi Arabia’s Public Investment Fund (PIF) seeks to slash allocation to foreign assets from 30% to 18%, it is looking to partnerships with top asset managers to channel capital into the Kingdom’s economy in the mission to realize the Vision 2030 economic diversification objectives. While PIF has lowered global allocations, it still aims to raised AUM from the current stated US$925 billion to US$2 trillion by 2030, which would still imply the doubling of non-Saudi assets over the next six years, according to Global SWF calculations. A lot of the growth in value is likely to come from transferring state assets to PIF as well as mark-to-market value of the capital in gigaprojects. However, the reduction of geographical asset allocation to non-Saudi assets would still involve an extra US$123 billion of Saudi funds pumped into global markets over the next six years.. Global SWF takes a closer look: https://lnkd.in/emCBhSpb

Armenian authorities continue to press on with a criminal investigation into the collapse of the Armenia National Interests Fund (ANIF), a signatory of the Santiago principles that are supposed to "promote transparency, good governance, accountability and prudent investment practices." Since it was launched in 2019, ANIF made around US$19 million of investments in failed projects, including Fly Arna and a 200MW solar farm in Aragatsotn in a joint venture with Abu Dhabi’s Mubadala-backed Masdar (Abu Dhabi Future Energy Company). Fly Arna alone absorbed US$13 million of state funds. Global SWF gives the background and the latest developments in the issues surrounding the SWF's failure, which serves as a lesson in governance for any new, upcoming SWF: https://lnkd.in/evFkJiWJ

Indonesia’s toll roads have been boosted by a combination of Indonesian, Dutch and Abu Dhabi capital, with investment in sections of the Trans Sumatra Toll Road. The newest sections represent a combined investment of around US$1.4 billion. The latest development is part of Indonesia Investment Authority (INA)'s road platform, backed by Europe’s biggest public pension fund, the Netherlands’ APG, and the Abu Dhabi Investment Authority (ADIA), worth a total US$2.75 billion. Global SWF gives further insight: https://lnkd.in/essWK2F8

Canada’s CPP Investments | Investissements RPC and Australia’s Aware Super have each announced GBP1 billion (US$1.3 billion) British real estate joint ventures in anticipation of planning liberalization that will stimulate the UK construction industry. Alek Misev, Aware Super’s head of property, said: “A key theme of our global real estate strategy is anticipating future trends and making counter-cyclical investments. This has reaped strong rewards and we believe that under-valued Central London offices also fit this profile.” Global SWF outlines the funds' investments in the UK real estate market: https://lnkd.in/epmXk5a7

Norges Bank Investment Management (NBIM) reported another quarter of underperformance as its oil-backed US$1.75 trillion Government Pension Fund Global (GPFG) struggled with geopolitical uncertainty and downside risk to public equities. NBIM narrowly missed the benchmark in Q3 with a 4.4% return, delivering a profit of NOK835 billion (US$76 billion) with results boosted by gains in stocks due to falling interest rates, as well as a declining value of the krone against the US dollar – a significant factor, given that two-thirds of NBIM’s equity portfolio is denominated in the greenback. On the upside, NBIM’s unlisted renewables portfolio recovered from sharp losses in the first half. The Q3 return is double the Q2 return of 2.1%, but below the Q1 gain of 6.3%. In the January-September period, NBIM’s AUM grew by NOK3.1 trillion, including total oil revenue inflows of NOK291 billion, positive exchange rate effects of NOK506 and a return totalling NOK2.31 trillion. While US tech stocks boosted the return, US office real estate weighed down its real estate portfolio's performance. Global SWF gives an update and analysis of NBIM's performance: https://lnkd.in/eYM5-XXz

The Abu Dhabi Investment Authority (ADIA) is motoring ahead with its Indian strategy following the opening of a new office in Gujarat International Finance Tech-City (GIFT City ), India’s new finance hub. ADIA has provided INR63 billion (US$750 million) in debt funding for a subsidiary of GMR Enterprises (GEPL), which owns a 25% stake in GMR Airports. The funds are being used to refinance GEPL’s debt, totalling INR45 billion (US$533 million). ADIA could be marching on other assets in the Indian infrastructure sector, including potentially backing GMR rival for top Indian airport operator, Adani Airport Holdings Ltd. ADIA is setting up a US$4-5 billion fund to invest in India from its new base in GIFT City, which opened this month. As a result, it will become the first sovereign wealth fund to begin investing in India via the new tax-neutral finance hub. Read more at Global SWF: https://lnkd.in/dhswtDic