Insto roundup: Australian’s Future Fund announces new investment strategy; China to create a third stock exchange | Asset owners

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AUSTRALIA

The Australian sovereign wealth fund will increase its structural risk profile and target private market opportunities as it develops a new investment strategy.

The Future Fund revealed its plans in a document released on Monday (September 6) which said its “future investment program” will have priorities such as increased risk profile, less liquid assets, hedging against inflation and defensive opportunities in the private market, and more targeted opportunities. strategies especially in private markets and debt.

The new approach is driven by paradigm shifts that reshaped the investment order, including de-globalization, climate change, inflationary regime shifts, declining sovereign bond durations, and challenges for corporate earnings. .

The fund had hinted that it had a new strategy involving a higher risk profile and a move towards more illiquid and private investments when it launched its annual report in August.

Source: Future Fund

Aware Super’s agri-food portfolio in Lake Boga, which includes some of the largest farms in the state of Victoria, would be up for grabs.

The A $ 150 billion ($ 111.49 billion) retirement fund has hired consultancy firm PwC to help it find a buyer. The assets belonged to VicSuper which merged with First State Super to form Aware.

Potential buyers include Ontario Teachers’ Pension Plan of Canada, Roc Partners, based in Sydney, and Mira, Macquarie’s alternative asset manager.

Source: Australian Financial Review

CHINA

China announced plans to establish third Beijing-based stock exchange to support fundraising and investment in small and medium enterprises.

The decision was announced in a speech by Chinese President Xi Jinping at a trade fair in the country’s capital from September 2-7, but no elaboration on the plan was shared.

The China Securities Regulatory Commission shortly after followed up on a released statement saying the regulator was excited about the new prospects.

Source: CSRC

China’s banking and insurance supervisory body released a draft directive on Friday (September 3) aimed at improving its regulations on group insurance companies in order to prevent financial risks.

The CBIRC is seeking public comments on the draft and its changes to a 2010 version of the rules governing these companies.

Source: CBIRC

China Securities Regulatory Commission pledged to sift 60 trillion yuan ($ 9.28 trillion) funds in its industry, with the aim of eliminating mismanaged and falsified private funds .

“China actively promotes high-quality growth of its capital markets, and the healthy development of the 60 trillion yuan fund industry is a crucial part of this,” said Yi Huiman, chairman of the fund. securities regulation in the country, at a meeting held earlier this week by the China Asset Management Association.

Source: China Asset Management Association

BNP Paribas is in talks with the Agricultural Bank of China (AgBank) wealth management unit to form a joint venture wealth management company, according to a Reuters report citing unnamed sources.

BNP Paribas is expected to hold majority stakes in the joint venture.

French rival Amundi and US fund giant BlackRock have already formed Chinese wealth management firms, while Schroders and Goldman Sachs are following suit.

Source: Reuters

INTERNATIONAL

The Asian Development Bank is embarking on a study that could lead to a program to shut down coal-fired power plants in some Asian countries.

The initiative, known as the Energy Transition Mechanism (ETM), is expected to launch early next year. The lost production of ETM will be replaced by new renewable energy sources.

“The old coal-fired power plants are the biggest source of greenhouse gas emissions from human activity. Without addressing them, we will miss the targets of the Paris Agreement on emissions control,” he said. said Toru Kubo, director of energy in the Southeast Asia department of the AfDB. in an interview with Asia Asset Management.

ETM is a mechanism that will support the transition from coal to clean energy, through the creation of country fund structures, he said. “Concessional funds from the development community, developed countries and philanthropic organizations will be blended with investments from public and private sector entities. “

Source: Asia Asset Management

JAPAN

Nippon Life Insurance made its first foray into green lending with 2.58 billion yen ($ 23.5 million) loaned to a local real estate investment trust and shipping company, it announced on 30 December. August.

The insurer lent 2 billion yen to Tokyo-listed REIT Japan Logistics Fund to acquire buildings and pay for renovations as part of the fund’s green finance and granted a 575 million yen loan to the shipping company. IINO Kaiun Kaisha to refinance construction projects.

Source: Nippon Life Insurance

KOREA

Korean quasi-government tech finance agency Korea Technology Finance Corporation (Kotec) is seeking to hire an asset manager for a discretionary domestic bond mandate of 150 billion won ($ 129.6 million), which could be increased to 200 billion won.

The manager will be appointed for one year from October 2, KOTEC said in its call for tenders posted on the Korea Financial Investment Association website on August 30.

Source: Asia Asset Management

MALAYSIA

Malaysia’s Employee Provident Fund (EPF) announced two senior appointments on Friday (September 3rd).

Sazaliza Zainuddin was appointed COO effective September 1. She replaced Mohd Naim Daruwi, who retired after nearly three decades at the pension fund. Zainuddin joined EPF and was until recently Chief Financial Officer (CFO).

He is replaced by Mohamad Hafiz Kassim, who took up his post as CFO on August 1. He joined EPF in 2008 and was until recently responsible for the real estate investments department.

Source: EPF press release

Bank Negara Malaysia announced that it has partnered with its counterparts from the central bank, the Monetary Authority of Singapore, the Reserve Bank of Australia and the Reserve Bank of South Africa (SARB), as well as ‘with the Bank for International Settlements Innovation Center to test the use of central bank digital currencies (CBDCs) for international settlements.

The initiative, known as Project Dunbar, aims to develop prototypes of shared platforms for cross-border transactions using multiple CBDCs. It plans to publish its results in 2022.

Source: Bank Negara Malaysia press release

SINGAPORE

The Singapore Stock Exchange (SGX) published a framework that would allow Special Purpose Acquisition Companies (Spac) to list on the stock exchange. The Spacs were allowed to apply for registrations on Friday September 2.

Following a market consultation, SGX relaxed some measures it had initially proposed, including minimum market capitalization and limits on shareholder redemption rights.

Singapore regulators announced earlier this year that they were considering licensing Spacs, after a boom in public listings via blank check companies in the United States in recent months. Spacs raised more than $ 79 billion worldwide last year.

Source: Singapore Stock Exchange, Financial Time

The Monetary Authority of Singapore has become the latest regulator to crack down on Binance crypto exchange by placing the company’s global website on an “investor alert list.”

The regulator has warned consumers that Binance is not regulated or licensed to provide payment services in Singapore and said the exchange may have violated the country’s Payment Services Act (PSA).

Binance’s local entity, Binance Asia Services, has applied for a license and is allowed to operate temporarily. However, the central bank said the local unit should stop transferring assets to and from its global entity.

Source: Financial Time

Singapore’s GIC has launched an $ 8 billion joint bid for Swedish biotech company Orphan Biovitrum (Sobi) alongside US private equity firm Advent International.

The joint offering saw Sobi’s share price climb 27%. It would be the largest leveraged buyout of a European healthcare company in five years.

Source: Financial Time

TAIWAN

Taiwan’s life insurance companies’ total turnover reached a record NT $ 304.2 billion ($ 10.98 billion) in the first seven months of 2021, thanks to returns on investment.

The combined revenues of the 22 registered life insurers more than doubled from NT $ 150.5 billion in the same period last year, and topped their total of NT $ 206.1 billion in 2020, according to the reports. figures published by the Financial Supervisory Commission.

Their income from gains from investing in assets such as stocks and bonds and dividends increased by NT $ 172.8 billion in the seven months to July compared to the same period of 2020. The FSC did not disclose actual total investment income, which represented nearly 57% of revenue in January-July 2021.

Source: Financial Control Commission; Asset management in Asia


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