MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
The bank snapped up the mandate after a competitive pitch which reportedly included rivals Citi, JPMorgan, Northern Trust and HSBC.
Chinese financial institutions last year received approval to invest overseas through a quota system, known as the Qualified Domestic Institutional Investor scheme (QDII). The scheme enables Chinese investors, fund managers, banks and insurance companies to buy bonds and shares on the international markets using foreign currencies.
This in turn spells new opportunities for the large global custodian banks.
"In China the growth in QDII and the increasing ability of the insurance segment to invest overseas are the two biggest growth opportunities for global custodian banks," says Chong Jin Leow, head of Asia at BNY Mellon Asset Servicing.
The challenge for firms like BNY Mellon is to "fine tune the process", says Chong, because it is working with both the joint venture fund management company and the local bank that is acting in the capacity of a global custodian. For one, this results in double reporting requirements, he notes.
The CCB Fortune SG overseas growth equity QDII fund will invest in Hong Kong, Singapore, the UK and the US, and will be distributed in China through China Construction Bank, the bank said.
"A lot of the uptake of QDII funds depends on market sentiment. Out of the six QDII funds so far launched we have been appointed to service three of them, including two appointments from ICBC to service China Southern Fund Management and China International Funds Management," Leow adds.
Experts say China plans to use increased overseas investment flows to slow the growth of its gargantuan foreign exchange reserves.
Fortune SGAM Fund Management is a joint venture between China's Baosteel and SociTtT GTnTrale Asset Management, and is one of the first joint ventures between a domestic Chinese trust company and a foreign asset management company with assets under management of close to $10 billion.
Bank of New York Mellon has over $23 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $12 trillion in outstanding debt.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.
Insto roundup: GPIF staff say J-Reits more attractive than traditional assets; Hong Kong's strict Spac criteria
EISS Super hit by another scandal; China's CSRC launches consultation on disclosure requirements for new BSE securities; Hong Kong issues consultation paper on Spacs; New World Development partners with China Taiping to focus on Greater Bay Area projects; GPIF employees say Japanese Reits have grown more attractive; Taiwan's BLF invites bid for $1.7 billion mandate; and more
SGX’s new framework for Spacs will likely provide investors with a much-needed channel for direct deals, but the verdict is still out on whether it will bring liquidity to the bourse.