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
ôNSSF has benefited from getting part of the proceeds from international listings, so the NSSF had hard currency,ö Leckie says, ôMost of the money is still in Treasuries and cash. Quite a lot of money is in Chinese equities."
The NSSF made its international fund allocation prior to the retail QDII flows. Last year, it received over 100 proposals from various fund managers for its first outward investment. It has given 10 mandates to two managers for each asset classes, including Hong Kong equities, US equities, global ex-USA equities, global bonds and cash.
ôThey are very sophisticated by Chinese standards,ö says Leckie, ôThey wanted to specify maximum tracking error.
Leckie says the NSSF is benchmarking its investments to the FTSE-Xinhua Hong Kong Index, and its objective is to generate outperformance after fees.
ôThe chairman has indicated more money will be invested internationally,ö he adds, noting that overseas allocation can be increased from the 3% to 20%. Conventional funds, even alternative investments, private equity and hedge funds of funds will be considered. However, the NSSF will only go for long-only portfolios as its policy forbids it to invest in derivatives.
The NSSF was named Institutional Investor of The Year by AsianInvestor in May 2007.
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Already on the rise pre-Covid, investments into data centre assets in Asia have accelerated in the past year, fuelled by interest from investors across the spectrum.
Actively managed funds were also not found to have better odds of higher returns than more passive funds.
Investors still favour private equity assets for their higher growth, better governance structures, and diversification potential.