Weekly Digest: US pension funds eye India assets; Danish pension plans green plays in Asia
TOP NEWS OF THE WEEK
A delegation of US pension funds and endowments, representing nearly $1.8 trillion in assets, is visiting India to explore investment opportunities.
Led by US Consul General Mike Hankey, the group includes the US Development Finance Corporation and will tour Bengaluru, Mumbai, and Delhi.
The visit is part of the "Building Financial Futures" roadshow, aiming to strengthen economic ties between the two countries.
Currently, US pension funds hold $50 billion in Indian assets, with the US Development Finance Corporation committing an additional $4 billion.
The delegation is focusing on sectors such as healthcare, pharmaceuticals, agriculture, women-owned businesses, and clean energy. They are also considering investments in infrastructure, manufacturing, renewable energy, ports, and aviation.
Source: Economic Times
Blackstone and CPP Investments have agreed to acquire AirTrunk, a major Asia Pacific data centre operator, from Macquarie Asset Management and PSP Investments.
The deal values AirTrunk at over A$24 billion ($16 billion), with CPP Investments taking a 12% stake.
AirTrunk, founded in 2015 and headquartered in Australia, runs data centres in Australia, Hong Kong, Japan, Malaysia, and Singapore.
This acquisition marks a significant ownership change in the Asia Pacific data centre market, highlighting continued investor interest in digital infrastructure. Approval from the Australian Foreign Investment Review Board is still pending.
Source: CPP Investments
Danish pension fund PensionDanmark plans to grow its green investments in Asia.
The pension fund is already invested in green energy infrastructure development projects, for instance in offshore and onshore wind and solar parks in countries such as India, Vietnam and South Korea.
“Asia…is where a lot of the huge growth will be and it is also the region where a lot of the solutions (are) and the right decisions have been made for the next decades,” Jan Kaeraa Rasmussen, head of ESG and sustainability at PensionDanmark, said during a panel discussion at the FT Moral Money Summit Asia 2024, held in Singapore.
Source: Pensions&Investments
OTHER INVESTMENT NEWS
AUSTRALIA
Australian Retirement Trust (ART), Australia's second-largest pension fund managing over A$300 billion ($203 billion), has reportedly increased its stake in Powerco Ltd., a major New Zealand energy distributor.
ART has acquired an additional 33% stake in Powerco, bringing its total ownership to 58% and making it the largest shareholder. Dexus Group retains a 42% holding in the company.
The reported deal represents a significant shift in ownership for a major Australasian energy infrastructure asset, reflecting ongoing interest from large pension funds in such investments.
Source: AFR
The Australian Prudential Regulation Authority (APRA) has initiated legal action against Michael O'Connor, co-chair of First Super and a senior official in the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU).
APRA alleges O'Connor breached his director duties at First Super regarding a contract between the fund and the union. O'Connor has temporarily stepped down from his First Super roles while the case proceeds.
The allegations stem from a member and employer services contract between First Super and the CFMEU.
Source: APRA
CHINA
China Life Insurance recorded an overall investment return of Rmb122.4 billion ($17.2 billion), or 3.6% in the first half of 2024, up by 0.25 percentage points compared to the same period last year. Buoyed by investment performance, its net profit rose 10.6% in the first half.
As of the end of June, the Chinese insurer managed Rmb6.09 trillion ($856.5 billion) in assets, up from Rmb5.41 trillion by end-2023.
China Life will “pro-actively” buy stocks that are undervalued as part of its bid to be a long-term investor, vice-president Liu Hui said on August 30.
The firm sees opportunities in technology innovation, advanced manufacturing and green development, she added.
Source: China Life Insurance; Bloomberg
JAPAN
Noritz Pension Fund will continue to prioritise active management in expectation that the current environment of high interest rates and inflation will continue to create volatility and opportunities in bonds and equity.
“I may reduce passively managed products and increase actively managed products that can be considered excellent alpha creators in both fixed income and equities,” Kyoshi Iwashina, chief executive and chief investment officer, said.
Source: Top100funds
Government Pension Investment Fund (GPIF) may step up purchases of domestic stocks and scale back on foreign bonds in a reallocation of assets that would ripple through global markets, a Bloomberg survey shows.
Almost half of the 21 analysts polled said the Government Pension Investment Fund will boost its allocation target for Japanese equities above the current 25% as part of a portfolio revamp from April.
They said an increase in foreign bonds is highly unlikely, as it would involve yen sales that may weaken the currency.
Source: Bloomberg
KOREA
The National Pension Service (NPS) opened an office in Silicon Valley, San Francisco, on September 5.
It will serve as a hub for the fund's alternative investments on the US West Coast and facilitate direct investments in the tech sector.
NPS plans to create a dedicated tech-sector team at the San Francisco office to expand new strategies, including venture capital and growth capital investments.
The office initially has a staff of five, handling private equity, stocks, and real estate investments, with plans to add five more employees.
Source: Korea Economic Daily
MALAYSIA
Kumpulan Wang Persaraan (KWAP) is one of the investors in Malaysian startup Bateriku, a provider of roadside assistance services such as car repair and battery replacement, which raised $7.4 million in its latest funding round.
Other investors in the funding round include local venture capital firms Gobi Partners and VentureTECH SBI Capital, Bateriku said.
The firm plans to use the funds raised to bolster its roadside assistance services over the next 18 months.
KWAP has previously invested in Bateriku in its first batch of investments under the Dana Perintis strategy to promote the local venture capital ecosystem.
Source: Asia Asset Management
NEW ZEALAND
The New Zealand Superannuation Fund, has posted a 14.9% return in the latest financial year, with funds under management swelling to NZ$76.6 billion ($47 billion).
The fund was rewarded for its high exposure to global equities, Jo Townsend, chief executive of fund manager Guardians of New Zealand Superannuation, said in an interview .
“Nonetheless, we do have a very large diversified portfolio and there were certainly solid contributions right across the portfolio over the past year.”
Source: Bloomberg
SINGAPORE
Sovereign fund GIC has upped its bets on China retail, taking advantage of distress in the mainland market to take near-total ownership of a Shanghai mall in a deal that values the property at RMB820 million ($115.6 million), excluding debt.
GIC raised its stake in a company holding Shanghai Songjiang InCity, a suburban shopping centre in southern Shanghai, from 50% to 98%, according to online corporate registry records.
The trade reduces the equity held by the institution’s formerly equal partner in the project, China Vanke retail property unit SCPG, to 2%.
Source: Mingtiandi
The above briefs were curated from company news releases and third-party sources.