Academics back private equity allocation for Norway’s SWF

first_imgPrivate equityIn their report, Trond Døskeland, associate professor at the Norwegian School of Economics, and Per Strömberg, professor at the Stockholm School of Economics, made three arguments in favour of a private equity allocation – although they stopped short of explicitly advising the ministry to permit the GPFG to invest in such assets. Per Strömberg Norway’s giant sovereign wealth fund would benefit from investing in private equity, according to an academic report commissioned by the country’s Finance Ministry.A second government-commissioned report, which analysed the performance of the fund’s active management, advised sticking with this approach rather than going passive – even though such a switch has been advocated by some expert observers.The NOK8.5trn (€883bn) Government Pension Fund Global (GPFG) is managed by Norges Bank Investment Management (NBIM), a department of the country’s central bank.Last week the chairman and chief executive of NBIM co-signed a letter to the Finance Ministry advocating an allocation of up to 4% to private equity.center_img Trond DøskelandThe fund’s unique characteristics – its large size, capacity to take on liquidity risk, need for transparency and its strong reputation – had several implications for private equity investment, according to the report.Døskeland and Strömberg implied that the GPFG should have a comparative advantage of building strong in-house teams for private equity investment, given its scale, reputation, and track record in asset classes such as real estate.Secondly, the fund could take on liquidity risk, enabling the GPFG to invest more aggressively in private equity during market downturns when the liquidity premium was high, they said.As the third point, Døskeland and Strömberg said: “[GPFG’s] strong reputation and record for transparency and ESG should make it a prestige partner for large private equity firms, particularly in the buyout segment. This, together with its size, should give GPFG strong bargaining power with such funds when it comes to negotiating fees and other fund terms.”The authors also advised against the fund rushing into the asset class, should the ministry allow such investment to begin.Strömberg is quoted in Norwegian business daily DN as saying the GPFG should wait until the next financial crisis to start any private equity investment programme.“Then the liquidity premiums rise, which is a compensation you get to invest in less liquid markets,” he told the newspaper.Active management The review group tasked with analysing the performance of NBIM’s active management included Magnus Dahlquist, professor at the Stockholm School of Economics, and Bernt Arne Ødegaard, professor at the University of Stavanger. They were also asked to recommend whether the fund’s expected tracking error limit should be changed. Dahlquist and Ødegaard said the traditional view of active management was that delegated fund managers on average added no value to investors, and that the managers who did add value could have simply been lucky.“Does this imply that the fund should refrain from seeking active management itself and/or delegating assets to other active fund managers? Not in our opinion,” they said. “First, the fund is not an average investor. It has certain comparative advantages – and disadvantages – that suit it for different kinds of strategies.”Dahlquist and Ødegaard said the oil fund’s external mandates had outperformed their benchmarks by approximately 2% per year after costs, “contributing substantially to the fund’s total performance”.They emphasised the strong historical relative results NBIM had generated in listed equity, but the weakness of its performance record on fixed income.“The equity portfolio has outperformed its benchmark, whereas the performance of the fixed-income portfolio has been neutral or negative,” they said.Regarding the current tracking error limit set by the Finance Ministry, the academics said it might be “worthwhile to focus on using ranges in asset weights rather than the tracking error to better set risk limits”.They continued: “We also wonder whether it would be worthwhile to have an absolute return target, a benchmark outperformance target, and/or a tracking error target.”last_img read more

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Memorial Day and Race Day in Lawrenceburg Monday

first_imgLawrenceburg, In. — On Monday, May 27, the World of Outlaws NOS Energy Drink Sprint Car Series will return to Lawrenceburg Speedway for the Memorial Day Spectacular presented by KOI Auto Parts.Fans were treated to a high-octane show at the 3/8-mile track last year and the stars of the Series are poised to again show race fans why the World of Outlaws is The Greatest Show on Dirt.Brad Sweet claimed the Memorial Day victory at the speedway last year, after dueling with 10-time Series champion Donny Schatz and NASCAR-star Kyle Larson throughout the race.“I’m just looking forward to getting back there,” Sweet said. “Hopefully we can do it again.”Sweet charged his way from eight-place on the competitive track, having to make his way around several battles between fast cars like Paul McMahan and Sheldon Haudenschild. While Schatz looked like he was poised to be in command of the race up front, Sweet’s No. 49 Kasey Kahne Racing car was hooked up and no one was stopping his run to the front.It was his first win at the high-banked speedway. The only drivers to have won at the track more than once are Shane Stewart, McMahan and Schatz. Indiana-native Kraig Kinser will be in search of his first win at the speedway this year, as he and his Steve Kinser Racing team have been building momentum with strong finishes.When the teams return to the Indiana track on Memorial Day, fireworks are sure to fly again for a show race fans won’t want to miss.The main gate is scheduled to open at 4 p.m. with Hot Laps starting at 6 p.m. followed by racing at 7 p.m.Following the Series’ return to Lawrenceburg Speedway, the World of Outlaws on Friday, May 31, and Saturday, June 1, will make history with the inaugural Music City Outlaw Nationals at Nashville Fairgrounds Speedway in Nashville, Tenn.As always, you can catch all World of Outlaws NOS Energy Drink Sprint Car Series action online here. For tickets and more information click here.last_img read more

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Big Match Preview: Kotoko v MC Eulma – stats, team news, permutations

first_imgCompetition: Caf Champions League – Round of 32Match: Asante Kotoko v MC El EulmaVenue: Baba Yara Stadium, KumasiKickoff: 5pm CAT on April 5Ghanaian champions Asante Kotoko have their destiny in their hands as they welcome Algeria’s MC El Eulma in Kumasi on Sunday.The big encounter, being the second leg tie of the 2015 Caf Champions League round of 32, is the 12th time the porcupine warriors will be facing an Algerian side in Africa inter-club competitions over the last 25 years. To further break it down, MC El Eulma are the fourth Algerian side to play against Kotoko in Africa in six separate occasions – JS Kabilye (JSK) have faced the Ghanaian champions the most during these times – thrice over two legs.Interestingly, Kotoko are yet to eliminate an Algerian side over two legs in the African competitions since facing JSK in 1990. The most recent is the 2013 debacle when the coach Mas-Ud Dramani-led Kotoko side impressively drew goalless in the first leg away fixture but bottled the chance to win at home and got eliminated from the Champions League after a 1-1 score in Kumasi.Kotoko form against Algerian sides1990Kotoko 1-0 JSK – First Leg JSK 2-0 Kotoko – 2nd Leg2004USMA 2-0 Kotoko – First LegKotoko 2-0 USMA (Kotoko were eliminated after PKs) – 2nd Leg2006 JSK 1-0 Kotoko – First LegKotoko 2-1 JSK – 2nd Leg2008Kotoko 3-1 JSK – First LegJSK 2-0 Kotoko – 2nd Leg NB: This was at the group stage of the 2008 Caf Confederation Cup2013JSM Bejaia 0-0 KotokoKotoko 1-1 JSM BejaiaAsante Kotoko, this season, began their Caf Champions League campaign with a walkover after Sierra Leonean champions, East End Lions, withdrew from the competition. Their opponents, El Eulma, managed to dump St. Georges of Ethiopia over two legs to set up this round of 32 clash.A tale of two new coachesDavid DuncanKotoko, who had a poor beginning in the Ghana domestic league travelled to draw 0-0 at the Stade Messaoud Zougar in the first leg on March 14 – a game which marked the beginning of an era with new coach David Duncan.He has since the first leg encounter guided the porcupine warriors to a turnaround in fortunes in their domestic campaign – won all three competitive games. His arrival in Kumasi has brought about a revived verve within the rank and file of the club and the porcupine lads, looking to have found their confidence back again are expected to go all gun blazing in the Sunday afternoon encounter. Head coach David Duncan says his technical team is working to ensure two-time African win to progress.“We’re doing everything possible to ensure that we progress,” the 51-year-old said.“We will be balanced in our approach. Our primary objective is to keep a clean sheet and attack as much as we can to score and also not concede.”“We have a high pedigree in African football and hope to use this as a psychological advantage to overcome our opponents. The technical team is working on the psyche of the players to get them in the right shape of mind to give us the desired results,” Duncan furthered.Jules AccorsiThe 77-year-old French tactician is back to continue from where he left after guiding El Eulma to their Champions League feat at the end of last season.Accorsi despite helping the club place 4th in the Algerian League last season was replaced with Denis Goavec at the beginning of this season’s campaign. But his successor did not last long due to a poor start to the season and was also booted out for the recently sacked Azzedine Ait Djoudi.Ait Djoudi was shown the exit days after Asante Kotoko secured a 0-0 result in the first leg of this tie in Algeria.Sunday’s game against Kotoko will be Accorsi’s first game since making a return to El Eulma but the ex-French Professional footballer has some rich experience on the continent.He has worked with 18 different clubs since beginning his coaching career as an assistant at SEC Bastia in 1970. Accorsi worked with Ajaccio and other French clubs before switching continents in 1989 to clubs in Morocco, Tunisia, Vietnam, Oman, Madagascar, Saudi Arabia, Benin and recently, Algeria.Accorsi’s first stint with MC El Eulma lasted five months – from February to June 2014.Domestic Form guideKotoko: D D D W WThe porcupine warriors have been on some resurgence from a side that was lying 13th on the Ghana league table to 5th position with 19 points after 12 games.MC El Eulma ( Seen training in Kumasi below) W L W L LEl Eulma are languishing 15th on the 16-team Algerian Ligue 1 table with 27 points from 23 games.Possible Line-upsKotoko: Ofori Antwi – Atta Kusi, Amos Frimpong, Abeiku Ainooson, Eric Donkor – Owusu Jackson, Michael Akuffo – Richard Mpong, Emmanuel Asante, Obed Owusu, Ahmed ToureEl Eulma: Mohamed Ousserir – Nassim Oussalah, Adel Maiza, Tarek Zeghidi – Nacer Hammami, Ibrahim Chenihi, Mokhtar Belkhiter, Azougha Tembeng – Walid Derrardja, Fares Hemitti, Abelmalek AbbesPermutationsWith a 0-0 first leg result, a win for either side simple qualifies them to the 1/8th stage of the Champions League but a score draw will see MC El Eulma advance at the expense of Asante Kotoko.A goalless draw after 90 minutes will have the tie determined by penalty shootout.–Follow Gary on Twitter: @garyalsmithlast_img read more

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