Weekly Digest: AustralianSuper plans $23bn UK investments; FWD raises Malaysia JV stake
TOP NEWS OF THE WEEK
AustralianSuper is set to boost its UK investment portfolio to over $23 billion (£18 billion) by 2030.
Paul Schroder, AustralianSuper's CEO, confirmed plans to inject an additional £8 billion into the UK market by the decade's end at a March 5 event attended by the UK's Investment Minister.
Australia’s largest superannuation fund plans to invest in key areas including the energy transition, digital infrastructure, and the mixed-use estates and transport/logistics sectors.
Source: AustralianSuper
OTHER INVESTMENT NEWS
AUSTRALIA
Australian superannuation fund, UniSuper and real estate investment company ISPT, have jointly acquired a substantial 280-hectare greenfield site for logistics development, known as Burra Park, sharing equal 50/50 stakes.
UniSuper and ISPT plan a phased development of Burra Park, initially creating a state-of-the-art manufacturing, warehouse, and logistics estate exceeding 400,000 sqm in gross floor area within the next seven years, projected to be valued at over $2.56 billion (A$3.9 billion).
Situated in proximity to the newly constructed Western Sydney International Airport, the development is projected to span a period of seven years, as announced in a statement on March 6.
Source: UniSuper
INDIA
The narrowing spreads on longer-maturity Indian government bonds may prompt SBI Pension Funds to look for opportunities in corporate and state debt.
“We expect some term premium for the longer-dated securities and if that spread is not available, it would impact the accruals for my subscribers. I’ll probably have to evaluate other avenues, including state debt or corporate bonds,” Sandeep Pandey, chief investment officer, said.
SBI Pension Funds manages Rs4.2 trillion ($50 billion) in assets.
Source: Bloomberg
JAPAN
The Government Pension Investment Fund (GPIF) will resume lending foreign stocks as early as fiscal 2024, Nikkei has learned.
In reversing the decision, the GPIF will modify the rules it uses when lending shares, allowing itself to temporarily hold on to share certificates after making such a loan. This will allow for voting rights while it earns fees from borrowers.
The GPIF had earned fees of around ¥12 billion ($81 million) a year by lending foreign shares before halting the practice in 2019. At the time, the GPIF was afraid of losing its voting rights by lending those shares.
Source: Nikkei Asia
Dai-ichi Life Insurance has made two impact investments.
The insurer has invested $5 million in Rakuten Medical, Inc., a US biotechnology start-up that develops and markets pharmaceuticals and medical devices used in Alluminox treatment (photoimmunotherapy), a type of cancer treatment.
Dai-ichi Life has also invested ¥100 million ($682.000) in Instalimb Inc., a Japanese start-up that develops, produces, and sells 3D-printed prosthetic limbs, as well as related equipment and materials, in developing countries.
Source: Dai-ichi Life
KOREA
Korea Post has chosen local Kiwoom Asset Management to handle an overseas private equity fund of funds mandate for its insurance unit.
Kiwoom AM will choose managers of sub-funds, distribution and monitoring cash flow management.
Korea Post’s insurance unit has also issued a request for proposals for a domestic venture capital mandate of up to W30 billion ($22.4 million).
The fund will have an investment period of four years and will be structured as a blind fund. Deadline for applications is March 15.
Source: Korea Post
National Pension Service (NPS) will veto the appointment of the chairman and vice chairman of Hyosung Corp. as inside board members of the de facto holding company of the textile and chemicals conglomerate and its affiliates.
The NPS is the second-largest shareholder of Hyosung Corp. with a 6.2% stake as of the end of 2023, while the chairman and the vice chairman are brothers and part of the family that holds a majority stake of Hyosung.
Since the early 2010s, Hyosung Group has been embroiled in a series of investigations by prosecutors and the National Tax Service for tax evasion and embezzlement.
Source: NPS https://www.mohw.go.kr/board.es?mid=a10503010100&bid=0027&cg_code=
MALAYSIA
FWD Group Holdings Limited (FWD) announced the completion of an additional investment to acquire a further 21% in FWD Takaful Berhad (FWD Takaful).
FWD is now the majority shareholder in FWD Takaful, with a 70%. The remaining 30% is held by the Employees Provident Fund, while JAB Capital Berhad is no longer a shareholder after the transaction.
Source: FWD
TAIWAN
The Financial Supervisory Commission (FSC) announced plans to allow the insurance industry to issue bonds of a capital nature overseas through the establishment of special-purpose vehicles (SPV).
The moves aim at expanding financing channels for the insurance industry by tapping into larger and more diverse overseas capital markets, potentially reducing the cost of capital.
Cathay Life Insurance is set to establish an SPV in Singapore, marking the first move to leverage this change.
Source: Financial Supervisory Commission; Insurance Asia
The above briefs are curated from press releases and third-party media sources.