Weekly Digest: CIC's deputy CIO to join HK liaison office; Malaysia eyes family office growth
TOP NEWS OF THE WEEK
Qi Bin, vice-president and deputy chief investment officer with China Investment Corporation (CIC), is expected to join the central government’s liaison office in Hong Kong.
Source: South China Morning Post
Malaysia is seeking to attract wealthy locals and foreigners with assets under management of RM500 million ($114 million) to RM1.2 billion ($272 million) to establish family offices in the country over the next five years, said Finance Minister II Amir Hamzah Azizan.
During a parliamentary session on November 5, he expressed optimism that this initiative could generate RM40 million to RM110 million ($9 million to $25 million) in local investments into high-growth, high-value sectors.
The number of single-family offices worldwide, currently estimated at 8,030, is expected to grow by 75% to more than 10,720 by 2030, with AUM rising from $3.1 trillion to $5.4 trillion, according to a report by Deloitte.
Source: Business Times
OTHER INVESTMENT NEWS
AUSTRALIA
Super fund HESTA has placed Mineral Resources (MinRes) on its watchlist following significant governance failures.
The controversy centres around founder Chris Ellison's misuse of company resources and underreporting of offshore income.
Ellison faces $5.8 million in penalties and up to $6.6 million (A$10 million) in lost remuneration but will remain at the helm for up to 18 months during the leadership transition.
CEO of the $58.8 billion super fund Debby Blakey expressed disappointment with MinRes's response and succession timeline, warning of possible escalated actions including voting against directors or potential divestment if governance concerns aren't adequately addressed before the upcoming AGM.
Source: Bloomberg
Source: HKMA
INDIA
Chinese household appliance maker Haier Smart Home Co. has drawn preliminary interest from Temasek Holdings and GIC as prospective investors in its Indian business, according to people familiar with the matter.
Other firms that may potentially be interested in buying a minority stake in Haier Appliances (India) include Abu Dhabi sovereign wealth fund Mubadala Investment Co., the people said, asking not to be identified because the matter is private.
A transaction could value Haier’s Indian assets at about $4 billion to $5 billion, two of the people said.
Source: BloombergJAPAN
The world's largest pension fund, Japan's Government Pension Investment Fund (GPIF), reported a $59.95 billion (¥9.13 trillion) loss in Q2 FY2024, posting a negative 3.57% return.
The fund was hit hard by Japanese market turbulence, with domestic equities losing ¥3.11 trillion. The Nikkei 225's historic 12% single-day drop in August, triggered by BOJ rate hikes and economic concerns, significantly impacted performance.
GPIF which manages $1.6 trillion (¥248.22 trillion),) saw negative returns in three of four asset classes, with only domestic bonds gaining 1.4%. Foreign investments were particularly hit by yen appreciation, with overseas stocks and bonds down 5.4% and 5.5% respectively.
Despite recent losses, GPIF maintains a 4.26% annualised return since 2001.
Source: Bloomberg
KOREA
Korea Post has launched a tender for advisory and investment services for a $130.5 million (180 billion won) hedge fund portfolio under its savings unit.
The selected financial institution will manage transactions, performance measurement, risk analysis, and forex hedging.
The three-year mandate will be awarded by year-end, with applications closing November 14.
This marks Korea Post's eleventh tender in 2024, highlighting its active outsourcing strategy.
Source: Asia Asset Management
MALAYSIA
Employees Provident Fund recorded an investment income of MYR57.57 billion ($13 billion) for the first nine months of 2024, a 20% increase from MYR47.86 billion ($10.85) during the same period last year.
For the third quarter ending September 30, the fund posted MYR19.67 billion ($4.5 billion) in investment income, up from MYR14.67 billion ($3.3 billion) in the same period last year.
Source: The Malaysian Reserve
A $10 million loss of Malaysian state funds invested in a failed online fashion retailer has ignited public outcry and prompted Prime Minister Anwar Ibrahim to order an audit of the country’s nearly $30 billion sovereign wealth fund.
News that Khazanah Nasional Berhad fund and investment firm Permodalan Nasional Berhad (PNB) had divested their combined MYR47 million ($10.74 million) stake in e-commerce retailer Fashion Valet for just MYR3.1 million ($710,000) broke in parliament last week.
Questions over the investment selections of Khazanah come even as Malaysia remains acutely sensitive over state fund mismanagement following the multibillion-dollar 1MDB corruption scandal.
Source: South China Morning Post
INTERNATIONAL
Canada's main crude-producing province Alberta dismissed the Alberta Investment Management Corp's (AIMCo's) entire board, saying the pension manager had underdelivered returns from the investments of provincial government funds it manages.
The province's finance minister has been appointed the sole director and chair for AIMCo on an interim basis and a new board chair will be appointed within 30 days.
AIMCo is one of Canada's top pension managers with some $114 billion in assets. Its board had 10 members as of June 2024, when it released its 2023 annual report.
The pension manager has an office in Singapore and investments in the Asia Pacific.
Source: Reuters