Global SWF

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

Mubadala Capital, the asset management arm of Abu Dhabi sovereign wealth fund Mubadala, has closed its fourth private equity fund with commitments of US$3.1 billion – over 50% more than its US$2 billion target. Mubadala Capital was the first sovereign wealth fund to manage capital on behalf of third-party institutional investors. An experienced VC investor, Mubadala is less risk-averse and, since the full deployment of SVF1 in 2020, it has sought to emulate its tech-oriented early-stage strategy. MIC Capital Partners IV is targeting mid-market companies in media, entertainment, consumer and financial markets. Mubadala Capital has included in the new fund’s portfolio its recently acquired Fortress Investment Group as well as logistics operator Canada Cartage, children’s pushchair manufacturer Bugaboo and frozen food producer Thrive Foods. The new fund builds on the US$18 billion of third-party capital that Mubadala Capital already manages, according to end-March figures – a level that has doubled in three years. Mubadala Capital manages over US$24 billion of assets with a team of over 200 situated in Abu Dhabi, New York, London, San Francisco, and Rio De Janeiro. Global SWF does a deep dive into Mubadala Capital's partnerships with Apollo Global Management, Inc., Ardian, BlackRock, and Woori Venture Partners US, as well as its #Brazil strategy and Mubadala's private credit partnerships with Blue Owl Capital, Ares Management Corporation, Alpha Dhabi Holding, and KKR: https://lnkd.in/dXNDfKpC

Canadian public pension funds are facing the heat of scrutiny over governance, having prided themselves as the leaders in transparency and best practices. At the International Corporate Governance Network’s annual conference last year, Ontario Teachers' Pension Plan President and CEO Jo Taylor said: “Companies with good governance practices tend to have policies that support better decision-making and better outcomes. Governance frameworks that clarify management and board accountabilities help build cultures rooted in transparency and open communication, which contribute to successfully navigating rapidly evolving issues.” While Taylor's statement sums up the ethos driving Canadian funds, they are not above criticism, as recent debates have demonstrated. Global SWF gives an overview of the criticisms of the governance of CPP Investments | Investissements RPC and OMERS: https://lnkd.in/eTFhqpsN

The KRW1,200 trillion (US$875 billion) KOREA NATIONAL PENSION SERVICE (NPS) has paid to external managers for its global equities portfolio over the past three years is not good value for money, according to a lawmaker from the country’s ruling People Power Party, reports The Korea Times. Suh Myung-ok pointed out that returns on outsourced foreign equities are lower than direct investments made by NPS. She claimed the underperformance was related to poor selection and management of asset management firms, but also noted that there was insufficient local staff to take more management in-house. Global SWF takes a look at how NPS and the government are addressing staffing issues as well as the drive to cut external manager mandates and raise the annual return target from 4.5% to 5.5% to cover future pension liabilities: https://lnkd.in/dWps5MqQ

Data centers have emerged as the top real estate segment for state-owned investors, after AustralianSuper announced a US$1.5 billion investment in US-based DataBank. Global SWF research finds that while offices led SOI investment in real estate up to 2019, logistics property emerged as the favored sector during the pandemic years. Now, data centers have taken a massive lead with billions of capital poured into the segment. Like logistics, the rise is being spurred by technological change and the evolution of the digital economy. The segment is sucking in billions of capital to meet unprecedented demand for AI, hyperscale cloud, and large technology workloads. Global SWF takes a look into how technological and demographic megatrends are influencing SOI activity in the real estate market and lists the investments by SOIs in the sector so far this year: https://lnkd.in/eb-ckg9T

Abu Dhabi has taken a slice of Türkiye’s banking sector with ADQ's acquisition of a 96% stake in Lebanon-based Bank Audi’s local subsidiary, Odeabank, as it continues its multi-billion dollar drive into the country's troubled economy. The Turkish banking sector is not without risks and some of the factors that plunged Türkiye into a banking crisis in 2001 are present: wide fiscal and current account deficits, alongside high concentrations of government liabilities in the banking sector and a high proportion of external debt. Weaknesses also include massive off-balance sheet liabilities and a lack of recognition of losses on loans for zombie firms, which are not reflected in the record low NPL ratio of less than 2% of total loans. Nevertheless, #Türkiye is a major target for long-term investment for ADQ, which has launched various investment initiatives in the cash-strapped economy, each one scaling up the Emirati fund’s ambitions in the country. Global SWF examines how ADQ is negotiating its multi-billion strategy in Türkiye, including its tech fund tie-up with the Türkiye Wealth Fund: https://lnkd.in/eg6WjVwq

The launch of a London office by the HOOPP (Healthcare of Ontario Pension Plan) means there is now a full complement of the Maple 8 Canadian public pension funds with a presence in the British capital and brings the total number of foreign state-owned investors in the city to 28. HOOPP says it has chosen London as its first foreign outpost for its talent pool and the potential for partnerships with other institutional investors. Following a familiar trajectory for Canadian funds, it is starting with a small team of 12 locally hired staff, as well as real estate head Nic Aaviku and private equity lead Christopher Mazza. Infrastructure will also feature as part of the office’s role. Global SWF examines the reasons behind London's pull as a focus for state-owned investors seeking geographical and asset class diversification: https://lnkd.in/dKBvdaC4