Weekly Digest: Thailand's GPF shifts portfolio strategy; NPS targets AI with US office
TOP NEWS OF THE WEEK
Government Pension Fund (GPF), the second-largest fund in Thailand, has shifted its investment strategy this year to focus on creating a portfolio capable of handling appropriate risks, rather than maximising profits.
The fund's investment strategy a decade ago focused on profit maximisation, according to Songpol Chevapanyaroj, secretary-general of the GPF.
The emphasis from now on will be on how well the portfolio can manage risks, such as those arising from wars, he said.
Source: Bangkok Post
Korea's National Pension Service (NPS) will increase private equity investments in the US tech sector when its San Francisco office opens in July.
The office will focus on buyouts, growth and venture capital investment in Silicon Valley-based artificial intelligence and information tech companies.
Within real estate, the NPS aims to expand high-demand lending from private companies and will increase investments in data centres and timberland, according to chairman Kim Tae-hyun.
Source: Korea Economic Daily
OTHER INVESTMENT NEWS
CHINA
Belgium-based insurer Ageas and China Taiping Insurance Holdings (CTIH) have agreed to a capital increase of the CTIH's wholly-controlled subsidiary Taiping Pension Co (TPP) of RmB1.075 billion ($148.4 million), subject to regulatory approvals.
After closing of the transaction Ageas will hold 10% of the enlarged share capital of TPP.
The investment in TPP will allow Ageas to tap into the significant growth potential of the Chinese pension market, capitalising on the increasing demand for personal pension products in China.
Established in 2004 and headquartered in Shanghai, TPP is one of the largest pension insurance companies in China.
The company has two major business segments, pension, and employee benefits insurance. In 2023, TPP had €71 billion ($77 billion) pension assets under management.
Source: Ageas
HONG KONG
Hong Kong’s Mandatory Provident Fund assets climbed 0.1% to HK$1.185 trillion ($152.3 billion) in the first four months of 2024, as a resurgence in inflation and geopolitical events turned many members risk averse.
many members shifted to fixed income funds, according to local consulting firm GUM.
MPF members in April pulled HK$2.16 billion from equity funds and HK$870 million from mixed asset funds and put the money into fixed income funds, the first time this has happened thus far this year, GUM said in its monthly report.
Source: GUM HK
JAPAN
Nippon Life Insurance believes that engaging with high-emitting companies to spur transformation of their business rather than divesting from them is becoming increasingly important to combat climate change.
“Thinking about society as a whole, it is important that we asset owners also back up the global trend so that the world can make progress toward carbon reduction goals,” said Shinichiro Kashima, chief sustainability officer for Nippon Life.
Its cumulative thematic investment that contributes to the UN’s sustainable development goals and other targets totals ¥2.6 trillion ($16.6 billion).
Source: Japan Times
KOREA
Korea Investment Corporation (KIC) is looking for opportunities in direct lending to companies that are not cyclically sensitive and generate high cash flow.
The sovereign wealth fund will continue to invest in private debt, as the asset class provides limited downside risk and equity-like returns, according to CEO Jin Seoung-ho.
In private equity, KIC focuses on market leaders that have steady cash flow and downside protection and sectors with long-term growth potential such as artificial intelligence tech and healthcare.
Source: Korea Economic Daily
The Public Officials Benefit Association (POBA) favours data centres, senior housing, and student accommodations in Europe, where the real estate market could be more beneficial than the US, given the expected rate cut timeline and supply and demand, according to chief investment officer Huh Jang.
Real estate debt is also in focus given the high demand for refinancing and attractive risk-adjusted returns.
Additionally, POBA is considering a selective approach to equity investment in properties with strong fundamentals and price dislocation, as the pension fund sees real estate investment trusts (REITs) as very attractive due to relatively valuation.
Source: Korea Economic Daily
The Government Employees Pension Service (GEPS) sent out a request of proposals (RFPs) for a W140 billion ($102.7 million) domestic private equity mandate.
The mandate will be structured as a blind fund managed by four asset managers, with two of them getting each W40 billion while the other two will get W30 billion each.
Applications are open until June 3.
Source: GEPS
Korea Post has hired Blackstone to manage a $100 million overseas real estate debt mandate for its insurance division.
The investment is structured as a blind fund which will focus on developed markets, including North America and Europe. At least 80% of the assets will be allocated to senior, subordinate, and mezzanine debt.
Source: Korea Post
THE PHILIPPINES
The Government Service Insurance System (GSIS) has teamed up with the Japan International Cooperation Agency (JICA) to enhance its insurance business and bolster disaster resilience through a newly launched Technical Cooperation Project (TCP).
The project aims to enlist specialists to help GSIS grow its insurance offerings and protect civil servants and government assets.
Source: GSIS
INTERNATIONAL NEWS
DeepL, an innovative in AI language technology company, recently secured a $300 million investment at a valuation of $2 billion.
The round was led by Index Ventures, with significant contributions from Teachers' Venture Growth, a key investment division of the Ontario Teachers' Pension Plan, known for its investments in high-growth technology sectors.
Specific allocation amounts by each investor have not been disclosed.
Source: Ontario Teachers’
The above briefs were curated from third-party sources and news releases.