Weekly Digest: GIC bets on long-term US growth; AIA, MAS team up to drive decarbonisation
TOP NEWS OF THE WEEK
GIC believes in the long-term potential of the US economy and continues to see investment opportunities, especially in emerging areas like climate technology and sustainability, according to Singapore Senior Minister Lee Hsien Loong.
“…we fully intend to continue investing in the US, and maintaining American assets as a substantial part of our overall portfolio. We have every confidence that this is the correct choice for a fund taking a long-term perspective.”
The remarks were part of Lee's speech at a GIC gala dinner to commemorate 40 years of the state-owned investor investing in the US.
Over one-third of GIC’s global portfolio is in the US. It also have offices in New York and San Francisco.
Source: PMO
Source: MAS
The government is delaying the launch its new sovereign wealth fund, the Badan Pengelola Investasi (BPI) Daya Anagata Nusantara, or Danantara, until President Prabowo Subianto returns from his overseas trip in few weeks.
Officials said that they are taking a cautious approach to ensure the fund’s regulatory framework is fully established before moving forward.
On a related note, businessman and angel investor Pandu Patria Sjahrir is widely tipped to be appointed as chief operating officer of the BPI Danantara.
Source: Indonesia Business Post stories here and here
OTHER INVESTMENT NEWS
AUSTRALIA
Colonial First State (CFS), the Australian pension and wealth manager with $101 billion in assets, announced plans to expand its private-credit investments in response to potential inflationary pressures from anticipated Trump policies.
CIO Jonathan Armitage revealed the fund aims to increase its private-credit allocation from less than 1% to mid-single digits over the next few years.
The fund sees private credit's floating-rate structure as particularly advantageous in this economic environment.
Source: Bloomberg
TCorp, the investment management partner of the New South Wales public sector, has acquired a stake in Singapore-based Cyan Renewables with an initial investment exceeding $100 million.
The maritime operator specialises in wind farm support vessels for the offshore wind industry.
According to TCorp CIO Stewart Brentnall, the investment aims to support critical infrastructure for the global offshore wind industry.
Source: TCorp
INDIA
The Indian government is gearing up to introduce sweeping changes in the insurance industry by allowing 100% foreign direct investment (FDI) in insurance businesses, according to sister publication Times of India.
This likely landmark move will open the doors for global players to independently enter the market while also granting individual insurance agents the ability to sell policies from multiple companies, a significant departure from the current single-association cap.
Source: The Economic Times
JAPAN
Saudi Arabia's Public Investment Fund (PIF), which manages approximately $930 billion in assets, has reduced its stake in Nintendo from 7.5% to 6.3%, following an earlier sale of over 17 million shares through October.
PIF's stake reduction aligns with its shifting focus toward domestic economic priorities amid budget pressures, despite maintaining its strategic position in global gaming investments.
Source: Bloomberg
INDONESIA
Indonesia Investment Authority (INA) and SK Plasma, a subsidiary of SK Group (the second-largest Korean conglomerates) have signed investment agreements to build Indonesia's first plasma fractionation facility.
Located in West Java, this facility will be thefoundation for local production of plasma-derived medicinal products (PDMPs), with a processing capacity of 600,000 litres of plasma per year.
The facility is already under construction, with operations targeted to commence by the end of 2026.
Source: INA
KOREA
South Korea's National Pension Service (NPS) has awarded a $429 million domestic real estate debt fund mandate to Koramco Asset Management and Hana Alternative Asset Management.
The mandate, NPS's first real estate fund tender since 2019, is part of a larger $964 million property investment strategy.
The debt fund will target commercial real estate lending with a 70% loan-to-value (LTV) ratio and subordinated real estate debt/preferred equity at 85% LTV.
The remaining $536 million is slated for future tenders.
Source: Asia Asset Management
A consortium led by Khazanah Nasional Bhd and Employees Provident Fund made a formal takeover offer for Malaysia Airports Holdings at RM11 ($2.45) per share, after securing relevant regulatory approvals.
The formal offer comes after foreign and domestic authorities greenlit the offer, which fulfilled pre-conditions of the proposed takeover, according to a statement. The consortium has said it wants to buy all remaining shares of Malaysia Airports.
Source: The Edge Malaysia
SINGAPORE
GenZero, the decarbonisation platform of Temasek, and global commodities trader Trafigura have committed over $100 million to Brújula Verde, Colombia’s largest nature-based carbon removal project.
Located in the Orinoco River Basin, this project aims to restore land degraded by agriculture and wildfires while generating carbon credits.
Source: GenZero
THE PHILIPPINES
Maharlika Investment Fund may invest in the country’s nuclear power generation plans, according to a Department of Energy (DOE) official.
DOE-Nuclear Energy Division head Patrick Aquino said findings from the Philippine International Nuclear Supply Chain Summit’s business matching activities would be submitted to the Maharlika Investment Corporation (MIC), which manages the MIF, for potential investment consideration.
The DOE plans to provide MIC with information from this event and other nuclear energy initiatives to support informed investment decisions.
Source: GMA News Online via Power Philippines