Weekly Digest: Temasek CIO offers view on Trump administration; KWAP invests in offshore wind energy
TOP NEWS OF THE WEEK
A Trump administration would lead to slower global growth that would eventually affect US companies, according to Temasek International’s Chief Investment Officer Rohit Sipahimalani.
“I know the conventional wisdom and consensus is that right now a Trump presidency is better for markets,” Sipahimalani said in an interview on Bloomberg Television, citing hopes for lower taxes and more deregulation.
“But as you look out to 2025, the picture is not that clear.”
Source: Bloomberg
The Retirement Fund Inc (KWAP) has invested RM219 million ($50 million) for a minority stake in Cyan Renewables, Asia's largest owner and operator of offshore support vessels.
As a co-investor in the Seraya Partners-led deal, KWAP said its investment aligns with the MADANI Economy framework, advancing sustainability, prosperity, and innovation.
KWAP chief investment officer Hazman Hilmi Sallahuddin said the investment in Cyan exemplifies the public pension fund's commitment to achieving RM20 billion ($4.6 billion) in transition asset investments by 2030.
Source: The Star
Canada Pension Plan Investment Board and Singapore’s GIC are in advanced talks to back PSG Equity’s plan to transfer $1.8 billion of company stakes into a new vehicle designed specifically for this type of asset-shifting.
PSG plans to move roughly a half-dozen investments from several older funds into a new one known as a continuation fund, gaining more time to earn fees and profits from the assets, according to people familiar with the matter.
CPP Investments is playing a major role in talks to inject money into the new fund, the people said.
Source: The Edge Singapore
OTHER INVESTMENT NEWS
AUSTRALIA
Australian superannuation funds CareSuper and Spirit Super completed their merger, creating an A$53 billion ($35 billion) fund serving 550,000 members.
Former Spirit Super CEO Jason Murray takes the helm of the combined entity, which retains the CareSuper name, with Linda Scott continuing as chair.
Seven directors exit as part of the consolidation, marking the end of a two-year merger process that began in November 2022.
Both funds brought similar performance records to the table, with their balanced options delivering around 7.3-7.4% annually over the past decade through September.
Source: CareSuper
CHINA
China Life Insurance's profit jumped 185% for the first nine months of the year, to between 101.1 billion yuan ($14.2 billion) and 108.8 billion yuan ($15.3 billion).
The surge in net income was bolstered by investment returns following a rally in China's stock market.
Source: Bloomberg
HONG KONG
AIA Group’s corporate bond portfolio had about 1,700 issuers and an average holding size of $43 million as of June 30, it said in a quarterly results update.
Around $72 million of bonds, 0.04% of its total bond portfolio, were downgraded to below investment grade in the third quarter of 2024.
Source: AIA Group
INDONESIA
Indonesia Investment Authority (INA), along with APG Asset Management and Abu Dhabi Investment Authority (ADIA), announced an investment in two sections of the Trans Sumatra Toll Road.
The sections include the 17-kilometer Medan-Binjai and the 141-kilometer Bakauheni-Terbanggi Besar segments, with a combined enterprise value of approximately $1.4 billion.
This investment is part of the platform's broader strategy targeting up to $2.75 billion in toll road investments across Indonesia.
Source: APG Asset Management
JAPAN
Japan’s Dai-ichi Life Insurance has exclusively purchased the Asian Development Bank's inaugural biodiversity bond, valued at $98.4 million with a 10-year term.
The proceeds will fund nature-based initiatives, including ecological systems improvement and environmental infrastructure projects in China.
This adds to Dai-ichi Life's existing $279.4 million investment in ADB's health, education, and blue bonds.
Source: Asia Asset Management
KOREA
The $19.4 billion Korea's Teachers' Pension is seeking a trading agency for its foreign equity portfolio.
The selected institution will handle foreign stocks and ETF trading for the fund, which serves 400,000 private school employees.
Bidders must demonstrate Korean market experience and maintain a 150%+ net capital ratio. Applications close November 7, with selection scheduled for November 18.
Source: Asia Asset Management
Korea Post has tapped three local managers - VIG Partners, JKL Partners, and Premier Partners - for its new $112 million private equity blind fund.
The mandate, which requires half the assets to go into mezzanine strategies, will target convertible bonds and similar instruments.
It's a rare public announcement from Korea Post, which has been particularly active this year with ten tenders across PE, VC, and social bonds.
The postal agency fund managed around $112 billion in assets.
Source: Asia Asset Management
MALAYSIA
Sarawak state is mulling a pension fund for its civil service, according to Premier Abang Johari Tun Openg.
He revealed a study is being carried out on whether to set up such a fund, collaborate with the Employee’s Provident Fund (EPF) or have a system based on the contribution-based position (JBC) model.
Source: Borneo Post
SINGAPORE
Superscrypt, backed by Temasek Holdings, plans to raise $100 million for its second investment fund.
Temasek and fintech company Republic are expected to be major investors, according to sources.
These firms are also expected to serve as general partners in the fund.
Source: Tech in Asia