Susan Doyle, who has departed the board of
guardians of Australia's Future Fund
This year has seen several major arrivals and
departures at sovereign wealth fund managements — and
the high staff turnover is continuing apace. John Mulcahy and
Susan Doyle have departed from the board of guardians of
Future Fund. The guardians are appointed by the government to
oversee the fund’s investments. It is unclear at
this stage when the two departing members, who had come to the
end of their respective terms, will be replaced.
Meanwhile, He Linbo, also
known as Ludwig He, has reportedly stepped down as head of the
private equity department at the
China Investment Corp.
(CIC). He has been replaced by Wang Ou, formerly an official
with the China Securities Regulatory Commission, according to
media reports. CIC has long struggled to retain staff
the government’s reshuffle of
over the past few months has further hampered its attempts to
in-source its operations.
While other funds have seen departures, the
Abu Dhabi Investment Authority
has made a new hire: Sam O'Sullivan will join the fund as a
manager in its investment services department. O'Sullivan
arrives from Brisbane, Australia-based asset manager QIC
(formerly the Queensland Investment Corp.), where he was head
of investment performance and risk management.
Also this week, the Kurdistan Regional Government (KRG), the
governing authority of Iraq’s semi-autonomous
Kurdish enclave, passed legislation to create a sovereign
wealth fund. In designing the management structure for the new
Oil and Gas Revenue Fund lawmakers may wish to take cues from
State Oil Fund of the Republic of
— the Kurdish fund shares SOFAZ’s
mandate to allocate oil revenue to domestic infrastructure
projects and intergenerational savings, as well as the
government’s annual budget.
Sovereign wealth funds continue to be bullish on India, as they
seek to profit from the rise of the country’s
newly-affluent middle class.
Singaporean state investor
Temasek Holdings is reportedly
ready to invest alongside
London-based private equity firm Advent International in
Mumbai-based Crompton Greaves Consumer Products, which is being
spun out from its parent, Indian conglomerate Avantha Group.
Temasek is likely to be a minority investor in the business,
which has been valued at between 25 and 27 billion rupees
(around $400 million).
Qatar Investment Authority
(QIA) is also looking to increase its exposure to the
world’s second most populous country. According to
reports in the local media, QIA will raise its investment in a
special purpose vehicle controlled by Bangalore-based real
estate investment manager RMZ Corp. QIA committed $300 million
to the SPV, which invests in Indian commercial real estate, in
July 2013; the fund is now apparently prepared to inject a
further $160 million into the vehicle in a fresh financing
round. RMZ will use the capital to expand into new markets in
Mumbai and Chennai.
Sovereign wealth funds have started to publish their financial
results for 2014 — and the results are
Mubadala Development Co.
, the Abu Dhabi-based sovereign development fund, reported that
its revenues totaled 32.7 billion dirhams ($8.9 billion) over
the period, up from AED 30 billion in 2013, bringing its
overall assets to AED 243.6 billion as of December 31, 2014.
Profits were down, however — AED 1 billion, compared
with AED 1.5 billion in 2013 — largely due to lower
income from the fund's financial investments and its oil and
gas businesses, which were hit by the drop in energy prices in
the second half of the year.
In contrast, profits were up at Panama’s
Fondo de Ahorro de Panamá
(FAP), which grew 4.79 percent over the 12 months to December
31, 2014, bringing its assets under management to $1.4 billion.
FAP's performance was significantly better than for 2013, when
its investments returned -1 percent. The improvement is largely
due to the fund's implementation of
a more ambitious asset allocation
that adds stocks and corporate bonds to its portfolio, which
had previously been dominated by low-risk government