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 two banks have served informally as NPSÆ custodians for several years, ever since it began investing internationally. But according to Korea law, the NPS was not deemed officially to be an ôinstitutional investorö. It had to go through a rather cumbersome technical process to move funds offshore via Korea Exchange Bank, which continues to serve as the official trustee for foreign exchange transactions for domestic financial institutions. KEB in turn channeled processing and transactions to BNY Mellon and State Street.
Now NPS can cut out the middleman, because the National Assembly has approved changes to the 1988 National Pension Act that now recognize the NPS as an institutional investor, alongside the Bank of Korea and the Korea Investment Corporation.
BNY Mellon and State Street will continue to provide custody and securities lending services. They do not as yet sell analytics such as performance measurement to NPS but bank executives say they are pitching these. They also hope the direct mandates will make it easier to provide custody and administration for alternative asset classes such as real estate and private equity, in which the NPS has begun to invest.
The NPS projects its AUM will expand to KRW415 trillion ($449 billion) by 2012, with up to 20% of its assets invested in overseas equity and fixed income, as well as other asset classes. That works out to nearly $90 billion, and while a lot of that would still be managed internally, it puts NPS on track to remain the biggest source of mandates from Korea.
Moreover the two custodians hope the prestige and experience of working for NPS will translate into additional mandates as more Korean institutions such as its life insurance companies and other quasi-public entities become serious overseas investors.
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.
The asset allocation matrix is becoming more complex as investors look for new sources of returns beyond traditional asset types. How can investors measure and maximise returns in compounded portfolios?
When it comes to family offices, the generations don't always see eye to eye. For the younger generation, ESG concerns and tech plays are beginning to predominate.
Kwap property arm appoints CEO; VFMC names new CEO as Lisa Gray retires; MSIG Singapore promotes Mack Eng as CEO; Monroe Capital opens first Asia office in Seoul, hires head from Aberdeen; Vanguard Australia appoints new MD to relocate from US; HSBC AM expands EM debt team; Vantage FX hires from CGS-CIMB in Singapore; and more.