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 fund has an initial commitment of $60 million, with Fullerton and SBI Holdings contributing $30 million each. The fund will mainly target listed non-Japanese financial institutions that have become fundamentally undervalued due to the sell-off in stock markets caused by the US credit crisis.
The partnership is in line with SBI HoldingsÆ strategy of taking overseas partners in emerging markets and diversifying outside of Japan.
Unlike their US counterparts, Asian financial institutions have been relatively unscathed by the US credit crisis. Asian banks, in particular, have learned their lessons from the regional financial crisis in 1997 and have avoided over-extending credit.
It is unlikely, however, that the fund will immediately invest in financial stocks because an assessment of valuations and market sentiment has to be reconciled. While it is true that many financial stocks are now attractively priced with a long-term investment horizon in mind, no one knows for sure when the market will reach bottom and investors worldwide are still waiting for a comprehensive plan to rescue financial institutions in the US.
For its part, Fullerton is expanding its footprint in Asia though strategic partnerships, which it already has in Japan and other markets such as Korea, India, Pakistan and China. Just last week, Fullerton formed an investment partnership with ChinaÆs Bosera Asset Management that allows both fund houses to tap each othersÆ expertise.
Fullerton was set up as the in-house fund management division of Singapore state investment company Temasek Holdings in 1989. The company was spun off into a separate business unit in 2003, but continues to manage part of TemasekÆs $132 billion global portfolio. Now, it is aggressively pursuing the growth of its business, particularly in the area of third-party fund management.
As of August, FullertonÆs holdings in the financial sector included United Overseas Bank and Oversea-Chinese Banking Corporation.
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Financials and healthcare have been spotted as promising sectors, while several tech IPOs are on the way, including a $2.2 billion fintech firm and a GIC-backed e-commerce startup.
A strong recovery in the Asia Pacific private capital markets in 2021 sets up favourable hiring and compensation trends.
The $95 billion Korean savings will set up a separately managed account for real estate debt investment early next year in order to shorten decision-making and help it win deals in a crowded market.