Tighter tax exemption measures for new family offices in Singapore will likely attract high net worth (HNW) families with significant assets under management (AUM) and have a positive impact on local investment and jobs, industry experts believe.
The new rulings, which also set minimum requirements for capital or AUM, local business expenditure, local investments, and the hiring of investment professionals (IP), came into effect on April 18, a week after the Monetary Authority of Singapore (MAS) unveiled them.
New family offices applying under Section 13O (formerly known as 13R) – for funds of less than $50 million ($36.5 million) in AUM – must now meet a minimum capital requirement of S$10 million ($7.3 million) when they apply, rising to S$20 million within two years.
AXA Hong Kong will invest almost $1.4 billion in alternative assets in 2022, or about two-thirds of the new investments it will be making this year, with energy transition being a major theme for the life insurer.
The company’s strong hedging portfolio enables it to take on more risks for higher returns while keeping solvency at a healthy level, Richard Chan, AXA Hong Kong chief investment officer and head of asset-liability management (ALM) for Asia, told AsianInvestor in an exclusive interview.
The company has $25 billion of assets under management (AUM) as of the end of March 2022 and a hedging portfolio of $20 billion, excluding foreign exchange hedges, he said. “It is our bread and butter… It’s a core element to shade our ALM and risk profile.”
AIA Group’s regional chief executive Bill Lisle has died at the age of 57, the Hong Kong-based life insurer said on Thursday. He served the company for over 11 years.
Based in Hong Kong, Lisle was responsible for AIA’s businesses operating in Thailand, Vietnam, India and Sri Lanka. He was also the group’s chief distribution officer, taking charge of agency distribution, partnership distribution, digital platform partnership channel and corporate solutions.
“We are profoundly saddened by the passing of Bill Lisle, AIA Regional Chief Executive and Group Chief Distribution Officer,” AIA said in an email statement without disclosing the cause of his death.
The opening of its second Asian office in Singapore in October 2020 has allowed the Ontario Teachers’ Pension Plan (OTPP) to cover key markets in Southeast Asia more effectively. The fund already had an Asian base in Hong Kong.
“We now have infrastructure, real estate and equities teams based in Singapore, and as a result we have been able to expand our operations quite meaningfully,” Ben Chan, senior managing director of Apac for OTPP, told AsianInvestor.
Since the Singapore office opened, the Canadian pension fund has increased its head count by over 50% and now has around 60 staff in Asia —approximately 40 in Hong Kong and 20 in Singapore.
The $193 billion pension fund has also expanded its direct investments, growing its assets within the region from around $12.8 billion to $16 billion after a busy 2021 for both the Singapore and Hong Kong teams.
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