Sovereign wealth funds: special focus

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An in-depth look at the state-owned sovereign wealth funds that are now dominating the attention of the world's financial markets. Read Euromoney's unrivalled guide to the different strategies and investment styles of these hugely important funds – and learn how investment banks are trying to maximise their business with them.


Sovereign wealth funds have been diversifying their holdings away from core global bond markets amid an environment of deteriorating credit conditions and low interest rates. Follow the latest on Sovereign wealth funds from Euromoney:


AUM at global sovereign wealth funds top $5 trillion
October 2013
Real estate likely beneficiary of growing investor firepower


Sovereign wealth funds: In the shadows of the shadows
September 2013
 Beyond the shadowy world of the big-four Gulf sovereign wealth funds, which can be opaque, seemingly inactive or conservative, a second tier of sometimes equally elusive SWF-style entities has sprung up

Libyan Investment Authority: The KPMG reports
March 2013
When two management reports from 2010 audited by KPMG were leaked to the campaign group Global Witness and released on-line, the world was given a remarkable insight into where the LIA had invested. And since all its assets have been frozen since early 2011, it is very likely still accurate.

The battle for the Libyan Investment Authority
March 2013
Mohsen Derregia was plucked from nowhere to run the $60 billion fund of the Libyan Investment Authority. He found a mess that he spent a year trying to clean up. Now, as many of LIA’s investments are being reassessed, he’s on his way out. He tells an extraordinary tale of sovereign wealth in a conflict-torn country.

Angola's rulers mull their options
December 2012
Angola has all the characteristics of a 21st-century petro-state: an extravagant property market, a corporate sector dominated by government-related entities and, now, a sovereign wealth fund. But can the country afford to embrace Arab Gulf-style state capitalism?


Middle East: The shadowy world of Gulf sovereign wealth
November 2012
The strategies and dimensions of Gulf sovereign wealth funds are an arcane subject made more mysterious by the lack – apart from Abu Dhabi’s fund – of published annual reports. Euromoney pieces together a picture of their structure from the fragments of information available.


There’s something missing from the debate about sovereign wealth funds in the Gulf: facts
November 2012
Understanding sovereign wealth funds in the Gulf is increasingly important as cash-strapped investors go in search of liquidity. But the funds remain highly opaque. Euromoney attempts to shed some light on their size, organizational structure and asset allocation strategy.

Angola fund launch leaves questions unanswered
November 2012
$5 billion under management; Employs advisers and third-party fund manager


Russia’s new SWF seeks bond and equity exposure 
September 2012
Russia is planning to launch a new state-owned investment agency next year to invest the country’s oil wealth in global financial markets, finance minister Anton Siluanov tells Euromoney in an exclusive interview. 


Africa: Nigeria's sovereign wealth fund steps forward
September 2012
Management from UBS and Barclays; Minister claims ‘victory for all Nigerians’


China’s CIC-BlackRock tie-up: a new normal in China’s outbound strategy

April 2012
The prospective development shines a light on the growing role for third-party western asset managers to oversee a slice of China’s foreign exchange reserves.


Russian fund closes first deal with Gulf partner
June 2012
A new $10 billion state private equity fund in Russia completed its first deal. The deal included the largest-ever private equity investment in Russia by a Middle East fund, in this case one backed by sovereign wealth.



Previous coverage:



Middle East

GCC economies: A compelling opportunity for asset managers
"At $51, you’re putting another dollar into the sovereign wealth fund for every barrel of oil," says Daniel Smaller, managing director for sales and distribution at Algebra Capita, an independent fund manager in Dubai. "So at $110..."
Euromoney August 2008 

Opportunities in the Gulf: Distribution holds the key
For most foreign asset managers, the sovereign wealth funds are the main prize. 
Euromoney August 2008

Qatar:

Sovereign wealth funds: Qatar invests in Indonesia
January 2008
Qatar’s sovereign wealth fund is to invest $850 million in Indonesia and has set up a joint venture with the local government to do so.

Qatar Investment Authority: Minister says sovereign funds are transparent

Yousef Hussein Kamal, Qatar Investment Authority


November 2007
A senior official in the Qatar government has hit back at claims that sovereign wealth funds lack transparency. Finance minister Yousef Hussein Kamal says that his country’s fund, Qatar Investment Authority, is an open, long-term investor, which should be welcomed by other governments.

Dubai:

DIC looks to spread its investment wings  
Euromoney April 2007
Simon Brady speaks to Sameer Al Ansari (SA), executive chairman, Dubai International Capital, and Rabih Khoury (RK), DIC’s head of Middle East and North Africa Investments about the strategies of the international investment arm of conglomerate Dubai Holding and how it fits in the Dubai Investment Group

Sameer Al Ansari, Dubai International Capital


Dubai International Capital and Istithmar: Dubai flexes its buying muscle
Dubai’s investment agencies might not have the scale of their counterparts from other parts of the Middle East but they are becoming voracious buyers of assets. Who are they and what are their plans? Sudip Roy and Simon Brady profile the people and strategies behind Dubai International Capital and Istithmar as they join the ranks of the world’s most powerful investors.

Dubai World's Istithmar: The new kid on the block
In less than four years Istithmar, the investment arm of conglomerate Dubai World, has become one of the most influential private and public equity and real estate financiers in the world. Its blue-chip holdings include Time Warner, Standard Chartered Bank and large swathes of Manhattan real estate. Sudip Roy reports from Dubai on how the fund has risen to prominence so quickly.

Abu Dhabi:

Euromoney is the leading source for information about sovereign wealth funds. In April 2006 we were the first magazine to gain access to ADIA, and the facts and figures revealed in that story are used by many other information providers to this day. Get up to speed on Adia and the wealth funds today on euromoney.com.

Money and mystery: Adia unveils its secrets
Euromoney April 2006

Adia unveils its secrets


Abu Dhabi Investment Authority is one of the world’s biggest institutional investors. It is also one of the most guarded. It publishes no numbers. It seldom makes any public statements. In a rare interview, two of its most senior officials lift the lid on the organization, revealing the reasons for its success. Sudip Roy reports from Abu Dhabi.

A breeding ground for talent | Abu Dhabi makes big waves  
Conservative ethos | External managers | Beta dominance | Market views | Avoidance techniques

EEMEA market round up: Mubadala partners with GE
Euromoney August 2008 




Latin America

Equity capital markets: Sovereign wealth funds go Latin
Euromoney July 2008

Brazil:

Latin America round-up: Brazil to manage $20 billion
Euromoney June 2008
Brazil plans a sovereign wealth fund.

Chile:

April 9 2008, the FT carries an article "WORLD NEWS: Chile to invest $5.9bn surplus in new sovereign fund ", reporting on Chile's new investment programme for its two reserve funds. Euromoney's 'Copper lifts Chile’s reserves', published 3 April, addresses this news in detail. Euromoney subscribers can access this story now.

Sovereign wealth funds: Copper lifts Chile’s reserve
Funds move to more aggressive investment strategies.


Asia

China:

The Chinese way with sovereign wealth
April 2011


China Investment Corporation (CIC): Too early to fear China’s sovereign wealth fund
February 2008
Managers are still learning the ropes.

Korea:

Korea Investment Corp: Korea joins the sovereign wealth fund adventurers
February 2008
Korea Investment Corp has broken new ground for the country by investing $2 billion in Merrill Lynch.

Singapore:

UBS bailout will make The Government of Singapore Investment Corporation (GIC) biggest shareholder
January 2008
Pays SFr10 billion for a 9% stake in the Swiss bank.

  "If the shoe was on the other foot, if these were sovereign wealth investors in France, Germany, the UK or the US earning fabulous returns, reducing national deficits, funding social security costs and investing into the rest of the world, would they think it was an issue? I suspect not"

Simon Israel, executive director of Temasek, takes critics of the sovereign wealth funds head on (see The new rulers of finance and the Temasek interview)


Europe

Norway:

Norway’s USD 400bn sovereign wealth fund eyes Egyptian market.
July 1, 2008


More on soverign wealth funds:

Sovereign wealth funds: Help when help is needed
January 2008
With capital markets fragile and expensive, sovereign wealth funds are playing an important role in recapitalizing banks.

Sovereign wealth funds: The new rulers of finance
Euromoney December 2007

Sovereign wealth funds: The new rulers of finance


State-owned, cash-rich and increasingly influential, sovereign wealth funds have emerged as the most controversial players in the financial markets. All the constituents – banks, private equity, corporates, hedge funds – want a slice of their action. Just how powerful will the funds become?

Getting the basics right
It is one thing to want a sovereign wealth fund but to actually set one up is a long and challenging process.

Financial institutions weigh up the opportunities
The proliferation of sovereign wealth funds is an opportunity and challenge for investment banks and asset managers. The opportunity is clear: potential business.

Fight on for Aussie’s future prizes
The Future Fund, created last year to cover long-term pension liabilities for the Australian federal public sector, is very much in its infancy but is finally managing money.