Insto roundup: AustralianSuper, GPIF post record returns of over 20%; KIC strives to be top 10 SWF
AUSTRALIA
AustralianSuper posted a record 20.4% return for the past 12 months as stocks rallied. The biggest super fund in Australia, with more than A$200 billion ($140.47 billion) of assets under management, has 58% in listed equities - 32% in international equities and 25% in domestic.
During the past year, as Covid raged, the fund rebalanced its portfolio into financials and away from technology stocks, and considered reducing its exposure to credit. Infrastructure contributed a 12% return and property a 3% return for the fund.
On Monday (July 5), AustralianSuper also announced that it has taken a 40% stake worth A$774 million in Moorebank Logistics Park, its biggest direct property investment in Australia.
Source: Australian Financial Review
An Australasian consortium acquired a 49% stake in the largest network of mobile tower sites in Asia. The consortium includes sovereign wealth fund Future Fund, Sunsuper, the Commonwealth Superannuation Corporation (CSC) and Morrison & Co.
Telstra will retain a 51% holding in the Telstra InfraCo Towers, which owns and operates 8,200 tower assets including 5,500 mobile tower sites that support critical digital infrastructure throughout Australia.
The transaction values the business at A$5.9billion.
Source: Future Fund
QSuper, IFM Investors and Global Infrastructure Management have announced a A$22.26 billion takeover bid for Sydney Airport. The bid was offered at A$8.25 per share, which is equivalent to a 42% premium on the last closing price.
As part of the bid, UniSuper, which holds 15% of Sydney Airport's securities, is expected to reinvest its equity interest in the consortium's holding vehicle.
The Sydney Airport board has commenced an assessment of the proposed offer.
Source: BBC, Financial Standard
CHINA
AIA Group announced plans to acquire a stake in the life insurance arm of the China Post Group for Rmb12 billion ($1.86 billion) as it continues to expand its presence in mainland China.
AIA will buy a 24.99% stake in China Post Life Insurance through its wholly-owned subsidiary, subject to regulatory approval, according to a filing to the Hong Kong stock exchange after trading hours on Tuesday (June 29).
“AIA’s investment in China Post Life is highly complementary to our strategy in China and enables the group to capture significant upside from additional distribution channels and customer segments,” said Lee Yuan Siong, group chief executive and president, in a statement.
Source: AIA
HONG KONG
Invest Hong Kong (InvestHK) opened an independent office and created a team to attract and promote family office business in the special administrative region. FamilyOfficeHK will be located in Admiralty, where many family offices are situated, to better serve its clients.
The team will work closely with the industry and government departments and will hold seminars as well as provide customer services for family offices or ultra-high net worth individuals looking to develop a footprint in Hong Kong and/or Asia.
It will also have two members in mainland China and one in Europe to understand the needs of clients in different countries.
Source: International Advisor
JAPAN
The Government Pension Investment Fund (GPIF) posted a record return of 25.15%, or ¥37.8 trillion ($339 billion), for the fiscal year ended March, the most since its inception in 2001, supported by global stock rally. Foreign equities were the best performers in the period, returning 59.42%, followed by a 41.6% return in domestic stocks.
The fund also plans to increase the portion of alternative investments in infrastructure, real estate and private equity funds to 1.6% from 0.7% in the medium term, said GPIF President Masataka Miyazono.
Source: GPIF; S&P Global
Japan’s $230 billion Pension Fund Association for Local Government Officials, or Chikyoren, hired Barings and Mitsui Real Estate Investment Advisors to manage allocations to overseas private debt and domestic real estate, respectively.
Barings Japan will serve as an advisor while its Irish affiliate, Barings International Fund Managers (Ireland), will serve as a subadvisor for the private debt allocation. Similarly, Daiwa Fund Consulting will serve as an advisor for the domestic real estate allocation, while Mitsui Real Estate will serve as the subadvisor.
Source: DealStreetAsia; Chikyoren
KOREA
The National Pension Service (NPS) acquired an office tower in Australia, Melbourne Quarter Tower, from Lendlease, for a sum believed to be A$1.2 billion ($900 million), Lendlease announced on July 1.
The building is the largest and last commercial office building in Lendlease’s A$3 billion Melbourne Quarter precinct. Lendlease Funds Management will manage the asset on behalf of the Korean institution. Medibank, one of Australia’s largest private health insurers, will be the anchor tenant of the premium-grade tower.
Source: Lendlease; IPE Real Assets
Korea Investment Corporation (KIC) said its assets under management will reach $200 billion “in the near future”, and it will strive to become one of the world’s top 10 sovereign wealth funds, said new chief executive officer Jin Seoung-ho during his first press conference on July 2 since taking office on May 18.
He outlined asset growth, alternative asset expansion, responsible investments, and contribution to the development of the domestic finance industry as four strategic goals towards the target.
KIC’s latest AUM was $195.7 billion at the end of May. It is currently ranked as the 15th largest sovereign wealth fund in the world by AUM, according to US-based Sovereign Wealth Fund Institute.
Source: KIC; AsianInvestor; SWFI
Korea Venture Investment Corporation (KVIC), a Korea government-backed fund of funds, approved a capital commitment of $37.5 million to five venture funds from the Asia Pacific and Middle East and North Africa (MENA)region.
The five VC firms that secured a commitment from KVIC are China’s Northern Light VC, which received $10million; Southeast Asia’s Vertex Venture Management ($15 million), Cento Ventures ($6 million) and Do Ventures ($5 million); and MENA-focused Shorooq Partners ($1.5 million), according to a disclosure by the Korean firm.
Source: DealStreetAsia
SINGAPORE
Singapore sovereign wealth fund GIC will invest approximately $1 billion for a minority stake in US plasma collection company Biomat, owned by Madrid-listed pharmaceutical company Grifols.
Grifols did not disclose the exact stake that GIC would take.
The firm will use all proceeds to lower its debt, Grifols said in the press release. At the end of the first quarter of 2021, this stood at €6.2 billion ($7.38 billion).
Source: Reuters
Singapore’s Temasek invested in Indian meat and seafood company Licious. This follows the announcement last month that Temasek subsidiary Vertex Ventures invested $15 million in the firm.
Brunei Investment Agency also participated in the $192 million Series F funding round. The fresh capital will be used towards supply chain transformation, local and international expansion, and product launches, the company said.
The latest investment brings Lucious’s total raised to $286 million.
Source: Business Standard
Singapore state investor Temasek signed a term sheet to lead a $100 million funding round in Indian challenger bank Open, according to sources familiar with the matter.
“Temasek has been finalised as the lead investor… others are still negotiating the deal with the company, which is expected to be finalised in a month’s time,” they said. Like other challenger or “neobanks”, Open operates online but has no physical existence.
In April, Temasek’s peer GIC led a $160 million Series E financing in Indian fintech startup Razorpay alongside Sequoia Capital India.
Source: DealStreetAsia
Temasek led a $30 million Series B funding round in Silicon Valley-based green cement company Fortera, alongside US venture capital firm Khosla Ventures. Fortera’s carbon mineralisation technology converts carbon dioxide into a ready-for-use cement that lowers cement production emissions by 60%.
The state investment company has stated a goal to halve the net carbon emissions of its portfolio by 2030 and achieve net zero carbon emissions by 2050.
Fortera said the new funding would be used to roll out its technology and for product adoption.
Source: PR Newswire
Singapore sovereign fund GIC will sell its 17.65% stake in Singapore based Hua Qing Holdings (HQH) to Hong Kong property group Sino Land. HQH’s portfolio includes Raffles City Shanghai, a commercial building comprising a prime office tower and a shopping mall.
Sino Land will also acquire a 22.68% stake from Singapore developer CapitaLand, raising its total stake in HQH from 23.53% to 63.86%.
Last week, Capita Land announced it was selling stakes in six of its Raffles City developments in China to Ping An Insurance for $7.2 billion. Canada Pension Plan Investment Board (CPP Investments) also announced it was reducing its stake in the portfolio. The divestment will give CPP Investments net proceeds of approximately C$800 million ($645 million).
Source: DealStreetAsia
The Monetary Authority of Singapore (MAS) awarded its $1.8 billion green investment mandate to BlackRock, BNP Paribas Asset Management, NN Investment Partners, Robeco and Schroders, according to sources familiar with the matter.
In June, managing director Ravi Menon announced the central bank would deploy $1.8 billion of the official foreign reserves to five asset managers for climate-related investments.
Spokespeople for the asset managers declined to comment, while MAS said it was not its practice to reveal details of manager appointments.
Source: Citywire